Eversource Energy (d/b/a) · NYSE:ES

Eversource Energy (d/b/a) — Eversource Energy — Non-Deal Roadshow (June 2023)

26 slides from Eversource Energy (d/b/a)'s roadshow presentation, June 2023

  1. Slide 1: Eversource Investor Meetings

    EVERSOURCE ENERGY EVERSOURCE INVESTOR MEETINGS June 2023

  2. Slide 2: Safe Harbor Statement

    EVERSOURCE ENERGY Safe Harbor Statement All per-share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the

  3. Slide 3: Eversource is the Largest New England Utility

    EVERSOURCE ENERGY Eversource is the Largest New England Utility and 1 of the 15 Largest in the United States Eversource Electric Customers 3.29 million Natural Gas Customers 890,000 Water Customers 237,000 Employees 9,600 Assets $53 billion 2

  4. Slide 4: A Unique Investment Opportunity

    EVERSOURCE ENERGY A Unique Investment Opportunity  Projected long-term EPS growth: Solidly in the upper half of 5%-7% from core business o Electric transmission growth platform, about 35% of rate base o Continued O&M discipline o Natural gas system upgrades that include replacement of aging Transmi

  5. Slide 5: Well Performing Core Businesses Drive EPS CAGR Solidly into Upper Half of 5-7% Through 2027

    EVERSOURCE ENERGY Well Performing Core Businesses Drive EPS CAGR Solidly into Upper Half of 5 – 7% Through 2027 $4.25- $4.09 $4.43 $3.86 $3.64 $3.45 $3.11 $3.25 $2.81 $2.96 $2.53 $2.65 $2.28 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022A* 2023E* 2024E 2025E 2026E 2027E * Re

  6. Slide 6: Dividend Growth Continues to Outperform Peers

    EVERSOURCE ENERGY Dividend Growth Continues to Outperform Peers Annualized Dividend $3.00 $2.70 $2.55 $2.50 $2.41 $2.27 Dividend Growth $2.14 Consistent with EPS Growth $2.00 +$0.15 $1.50 +$0.14 +$0.14 $1.00 +$0.13 $0.50 +$0.12 $0.00 2019 2020 2021 2022 2023 Payout 62% 62%* 62%* 62%* Ratios: *Reflec

  7. Slide 7: Projected Capital Expenditures For Core Businesses

    EVERSOURCE ENERGY Projected Capital Expenditures For Core Businesses $21.5 Billion 2023-2027 $5,000 $4,463 $4,373 $4,434 $4,500 $4,304 $215 $219 $170 $213 $244 $3,945 $4,000 $3,786 $203 $218 $194 $3,541 $208 $266 $235 $3,500 $1,035 $239 $155 $1,038 $1,146 $1,115 $3,064 $144 $ In Millions $3,000 $918

  8. Slide 8: Rate Base by Core Line of Business – Current and Future

    EVERSOURCE ENERGY Rate Base by Core Line of Business – Current and Future $37.7 billion* 5% 22% Note: Excludes $24.4 billion* offshore wind 4% investments 17% 42% 43% 31% 36% 2021 Year-End Rate Base Projected 2027 Year-End Rate Base Transmission Electric Distribution Natural Gas Distribution Water *

  9. Slide 9: Key Elements Inside and Outside Our $21.5B Core Business Capital Investment Forecast

    EVERSOURCE ENERGY Key Elements Inside and Outside Our $21.5B Core Business Capital Investment Forecast Included in Forecast Not Included  Execution of updated capital  AMI in CT investment forecast  Electric storage investments in CT  Recently approved Distributed Energy Resource projects in MA

  10. Slide 10: Status of State and Federal Regulatory Reviews

    EVERSOURCE ENERGY Status of State and Federal Regulatory Reviews Electric Transmission (Federal Energy Regulatory Commission) 41% of earnings  Pending FERC decision on New England transmission ROEs dating back to 2011 in 4 open cases o Earnings currently reflect base ROE of 10.57% with a maximum RO

  11. Slide 11: Massachusetts is a Supportive Regulatory Environment for Clean Energy Investment

    EVERSOURCE ENERGY Massachusetts is a Supportive Regulatory Environment for Clean Energy Investment Clean Energy Regulatory Support Mechanisms Regulatory support for incremental costs Grid Modernization Factor associated with Grid Modernization Investments Regulatory support for incremental costs of

  12. Slide 12: Proposed Capital Investments Needed to Unlock Renewable Distributed Energy Resources in Massachusetts

    EVERSOURCE ENERGY Proposed Capital Investments Needed to Unlock Renewable Distributed Energy Resources (DER) in Massachusetts  Interconnection upgrades needed to deliver additional clean energy into our system o Current proposal would enable about 1 GW of solar if all six clusters are approved  Co

  13. Slide 13: MA Grid Mod and AMI Update

    EVERSOURCE ENERGY MA Grid Mod and AMI Update Grid Modernization Advanced Metering Infrastructure Key Customer Benefits  Ongoing per Four-Year Plan  Rate options to lower energy costs (2022-2025)  Outages detected without customer reporting  Approximately $205 million  Easy access to near real-t

  14. Slide 14: Electric Vehicle Charging Infrastructure - Phase II Program

    EVERSOURCE ENERGY Electric Vehicle Charging Infrastructure - Phase II Program  December 2022 MA DPU authorized approximately $188 million investment over 4 years to build out EV make-ready infrastructure o Approximately $66 million is capital, remainder is O&M  Goal is to support the installation

  15. Slide 15: Networked Geothermal Pilot

    EVERSOURCE ENERGY Networked Geothermal Pilot  Broke ground on June 12, 2023 in Framingham, MA  149 customers and 39 buildings total  Primary purpose is to gather sufficient data on the costs, operation, emissions reductions and customer satisfaction with the technology 14

  16. Slide 16: Eversource Offshore Wind Update

    EVERSOURCE ENERGY Eversource Offshore Wind Update  On May 25, Eversource announced an update to its offshore wind strategic review  The sale of 50 percent interest in uncommitted lease area of 175,000 developable acres off the south coast of Massachusetts to Ørsted for $625 million in an all-cash

  17. Slide 17: Offshore Wind Updates

    EVERSOURCE ENERGY Offshore Wind Updates Assumptions Feb 2023 May 2023 Costs Locked in for Three Projects ~90% ~92% Offshore Investment at Quarter End $1.95B $2.16B Expected Spending in 2023 $1.9B - $2.1B $1.4B - $1.6B Expected Spending 2024 – 2026 $1.6B - $1.9B $2.1B - $2.4B Expected Long-Term Avera

  18. Slide 18: Impact of CT Senate Bill 7

    EVERSOURCE ENERGY Impact of CT Senate Bill 7  Senate Bill 7 has passed the Senate and House and is expected to be signed into law by the Governor this month  CL&P’s settlement agreement establishes that the next PURA-initiated rate review does not commence before October 1, 2025. o Yankee Gas has

  19. Slide 19: Principal Funding Sources

    EVERSOURCE ENERGY Expected Sources of Cash to Fund Five-Year Capital Program Principal Funding Sources Cash Flows from Operations New Debt Issuances Remaining ATM (Approx. $1B) Treasury Shares to Fund DRP and Employee Plans Proceeds from sale of OSW Assets 18

  20. Slide 20: Equity Issuance Update

    EVERSOURCE ENERGY Equity Issuance Update New Shares Treasury Shares  $1.2 billion At-The-Market  Dividend reinvestment, Program issued 2.17M shares employee equity programs at a weighted average price of continue with approximately $92.31 in 2022 with proceeds 950,000 shares issued in of approxima

  21. Slide 21: 2023 Debt Issuances to Fund Utility Capital Needs and Maturities

    EVERSOURCE ENERGY 2023 Debt Issuances to Fund Utility Capital Needs and Maturities 2023 Issuances through May Company Size/Coupon Maturity CL&P $500M @ 5.25% Jan 15, 2053 PSNH $300M @ 5.15% Jan 15, 2053 Parent $750M @ 5.45% Mar 1, 2028 Parent $550M @ 5.45% Mar 1, 2028 Parent $450M @ 4.75% May 15, 20

  22. Slide 22: Eversource Is Building On Our Commitment to Lower Emissions

    EVERSOURCE ENERGY Eversource Is Building On Our Commitment to Lower Emissions 2021 GHG Footprint  In 2019, we announced an industry 4% leading goal to reduce emissions from 5 7% key operational areas: 8% o Line loss 9% o Leaks from natural gas distribution 72% o Facilities o Vehicle fleet o Use of

  23. Slide 23: Industry-Leading Carbon Neutrality Goal Helps the New England Region Meet Its Targets

    EVERSOURCE ENERGY Industry-Leading Carbon Neutrality Goal Helps the New England Region Meet Its Targets Eversource Targets Regional Targets Carbon Neutral By 2030 80+% GHG Reductions By 2050  Reducing electric line loss  Industry-leading energy efficiency  Lowering methane emissions programs from

  24. Slide 24: Eversource's Strong Sustainability Profile Continues to Attract ESG, Infrastructure Investors

    EVERSOURCE ENERGY Eversource’s Strong Sustainability Profile Continues to Attract ESG, Infrastructure Investors Number of ESG & Infrastructure Funds Holding  Very strong ratings among leading ESG raters ES Shares  One of the most diverse Boards in the utility 400 industry 300 95 84  Nation’s lead

  25. Slide 25: A Value Proposition That Delivers Results for Investors

    EVERSOURCE ENERGY A Value Proposition That Delivers Results for Investors Keys to Our Success: Results Delivered: Long-term average recurring EPS and dividend growth of about 6%, through 2022. Growth driven by 1. Exceed industry EPS and dividend robust regulated Cap Ex program and effective cost gro

  26. Slide 26: Eversource Recognized as a Leading Energy Company

    EVERSOURCE ENERGY Eversource Recognized as a Leading Energy Company Included in Newsweek’s list of Most Responsible Companies as the #1 Utility Included in the CNBC/Just Capital list of JUST 100 Companies, a ranking of most responsible publicly traded companies Recognized in Bloomberg’s Gender-Equal

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