Eversource Energy (d/b/a) · NYSE:ES

Eversource Energy (d/b/a) — Eversource Energy — 2021 EEI Financial Conference

38 slides from Eversource Energy (d/b/a)'s conference presentation, November 2021

  1. Slide 1: 2021 EEI Financial Conference

    2021 EEI FINANCIAL CONFERENCE November 7-9, 2021

  2. Slide 2: Safe Harbor Statement

    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 assets and liabil

  3. Slide 3: Eversource is the Largest New England Utility and 1 of the 10 Largest in the United States

    Eversource is the Largest New England Utility and 1 of the 10 Largest in the United States Eversource Electric Customers 3.24 million Natural Gas Customers 881,000 Water Customers 216,000 Employees 9,300 Assets $48 billion 2

  4. Slide 4: Total Shareholder Return Has Outperformed the Industry – Bolstered by Solid Dividend Growth

    Eversource’s Total Shareholder Return Has Outperformed the Industry in Both the Short and Long Term – Bolstered by Solid Dividend Growth Total Shareholder Return 2020 3-Year 5-Year 10-Year Eversource 4.5% 49.4% 96.8% 272.6% EEI 39-Company Index -1.2% 28.9% 69.1% 190.0% S&P 500 18.4% 48.9% 103.0% 267

  5. Slide 5: Well-Performing Core Businesses Drive EPS CAGR to Upper Half of 5–7% Through 2025

    Well-Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2025 Expected higher than 5%-7% as larger offshore wind projects enter service $3.81- $3.93 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $2.28 $2.53 $2.65 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021E * 2022E 2

  6. Slide 6: Regulated Utility Capital Investment Program

    Regulated Utility Capital Investment Program 5

  7. Slide 7: Projected Capital Expenditures For Core Businesses

    Projected Capital Expenditures For Core Businesses $17 Billion 2021-2025 $4,000 $3,524 $3,541 $3,545 $3,500 $3,343 $217 $249 $211 $3,053 $3,064 $149 $143 $154 $194 $3,076 $3,000 $2,830 $162 $239 $239 $176 $185 $110 $127 $824 $171 $ In Millions $925 $974 $102 $937 $2,500 $453 $404 $545 $789 $2,000 $1

  8. Slide 8: Key Elements Inside and Outside Our Current Earnings CAGR Expectations

    Key Elements Inside and Outside Our Current Earnings CAGR Expectations Included in Forecast Not Included  Execution of $17 billion (2021-2025)  AMI capital investment forecast  Grid Modernization in CT or NH  Addition of Eversource Gas  Significant electric vehicle Company of MA assets charging

  9. Slide 9: We Plan to Update 5-Year Regulated Cap Ex Plan Through 2026

    We Plan to Update 5-Year Regulated Cap Ex Plan Through 2026 During Year-End 2021 Earnings Call  Provide annual updates for electric, gas and water distribution investments  Transmission cap-ex plan to be updated for project completions, revisions of existing projects, and additional projects added

  10. Slide 10: Status Report - Connecticut EV and AMI Filings

    Status Report - Connecticut EV and AMI Filings EV  Compliance Filing submitted 10/15/21 – Submitted program design documents including proposed budget and implementation plan – Capital investment of approximately $10 million – PURA review and approval  Draft Decision – 11/18/21  Final PURA Decisi

  11. Slide 11: Status Report - Massachusetts Grid Mod, AMI and EV Programs

    Status Report - Massachusetts Grid Mod, AMI and EV Programs Grid Mod  Advanced Distribution Management System/Communications  Monitoring & Control/Volt Var Optimization  Advanced Load Flow/Distributed Energy Management System  Four-Year Plan - capital investment of nearly $200 million for 2022-2

  12. Slide 12: Projected Natural Gas Investment 2021-2025

    Projected Natural Gas Investment 2021-2025 Related to our ongoing sustainability strategy, NSTAR Gas and Yankee Gas replaced 75 miles of cast iron and steel pipe with safer, more durable plastic in 2020. Additionally, EGMA will ramp up to a replacement rate of 50 miles per year by 2023. $1,000 $974

  13. Slide 13: Commitment to Investment in Natural Gas Infrastructure

    Commitment to Investment in Natural Gas Infrastructure  Aggressive Pipeline Replacement Programs Reduce Emissions – CT Accelerated Replacement Program  10 years for cast iron/bare steel;  13 years for copper/steel services and certain steel mains – MA Gas System Replacement Program  19 years  6

  14. Slide 14: Aquarion Water's $200 Million Plan to Improve Southwest Connecticut Reliability

    Aquarion Water’s $200 Million Plan to Improve Southwest Connecticut Reliability Transmission Main Improvements Supply Improvements $180 M Program Investment  Re-activation of Housatonic wellfield in the 5-10  Phase 1 Water mains complete $10 million year forecast  Phase 2 Stamford mains complete

  15. Slide 15: Eversource Offshore Wind Business

    Eversource Offshore Wind Business 14

  16. Slide 16: Eversource-Ørsted Projects Poised to Help New England and New York Meet Long-Term Goals

    Eversource-Ørsted Projects Poised to Help New England and New York Meet Long-Term Goals South Fork Wind Revolution Wind Sunrise Wind Size 130 MW 704 MW 924 MW Filed Oct 2018; FEIS issued Filed September 2020; Review Filed March 2020; review schedule was Aug. 2021; Record of schedule received August

  17. Slide 17: Progress on New London, Connecticut State Pier

    Progress on New London, Connecticut State Pier Onshore work has commenced on the New London, CT State Pier to support construction of Eversource-Ørsted offshore wind projects Computer Rendering Refurbished State Pier 16

  18. Slide 18: Close Proximity of Connecticut State Pier to Eversource-Ørsted Offshore Wind Sites

    Close Proximity of Connecticut State Pier to Eversource-Ørsted Offshore Wind Sites New London ● 60-65 miles to nearest State Offshore Wind Procurement turbines 10 4.7 GW Authority 10.5 GWs Eversource & Remaining Ørsted 4.0 GW GW 5 1.2 GW 0.6 GW 0 NY MA CT RI Authorized Awarded 17

  19. Slide 19: Natural Gas Supply Update

    EVERSSURCE ENERGY Natural Gas Supply Update

  20. Slide 20: Gas LDCs Plan For and Secure Firm Capacity to Meet Customer Needs

    Gas LDCs Plan For and Secure Firm Capacity to Meet Customer Needs  LDCs have contracted for pipeline expansions to meet load growth – Algonquin Gas Transmission – “AIM” and “Atlantic Bridge” – Tennessee Gas Pipeline – “Connecticut Expansion”  Gas customers pay lower production area prices (related

  21. Slide 21: U.S. Gas Production Slow to Recover

    U.S. Gas Production Slow to Recover  Pandemic drove all energy prices to 10-year lows last year  Energy production companies cut capital expenditures and weather events impacted supply which is still lagging the rapid economic recovery in 2021  US LNG exports at record levels this year with globa

  22. Slide 22: Summary of Price Increases

    Summary of Price Increases  Residential Electric Bill Increases (estimated) effective January 1, 2022 over current – EMA: $26/Month, 20% – WMA: $21/Month, 17% – CL&P: $31/Month, 21%  Residential Gas Bill Increases effective Nov. 1, 2021 over Nov. 2020 – NSTAR: $25/Month, 12% – EGMA: $41/Month, 21%

  23. Slide 23: Regulatory Update

    EVERSSURCE ENERGY Regulatory Update 22

  24. Slide 24: Key Elements of Approved Connecticut Settlement

    Key Elements of Approved Connecticut Settlement Customer Rate Benefits  Bill Credit $65M (split between December 2021 and January 2022)  Funding for Customer Assistance $10M  Eversource to withdraw appeal of the $28.4M storm performance penalty (to be credited to customers from September 2021 – A

  25. Slide 25: Results of 2020 Rate Reviews

    Results of 2020 Rate Reviews Eversource Gas of MA PSNH NSTAR Gas  Effective Date: 10/9/20  Effective Date: 1/1/21  Effective Date: 11/1/20  Term: 8-year rate plan  Term: 3-year rate plan  Term: 10-year rate plan  Authorized ROE: 9.7%  Authorized ROE: 9.3%  Authorized ROE: 9.9%  Equity Leve

  26. Slide 26: Previous Distribution Rate Decisions

    Previous Distribution Rate Decisions 2018 CL&P Rate Yankee Gas Rate NSTAR Electric Settlement Settlement Rate Decision  Effective Date: 5/1/18  Effective date: 11/15/18  Effective Date: 2/1/18  Term: 3 years  Term: 3+ years  Term: 5 years  Authorized ROE: 9.25%  Authorized ROE: 9.3%  Author

  27. Slide 27: Key PURA Regulatory Dockets

    Key PURA Regulatory Dockets Docket Description Current Schedule Number 20-08-03/ Review of Tropical Storm Isaias 20-08- Settlement approved 10/27/21 03RE01 Interim decision issued 4/28/21; New rates subject to Annual review of multiple CL&P trackers (RAM) 21-01-03 true-up, 6/1/21; Phase II decision

  28. Slide 28: FERC Transmission New England ROE Update

    FERC Transmission New England ROE Update  Current base: 10.57%; Cap: 11.74% (2014 Opinion 531A)  October 2018 FERC Order in New England ROE cases proposed a new methodology to address issues raised by Court in vacating Opinion 531A (New England ROE Complaint I) – This new methodology provided a pa

  29. Slide 29: ESG at Eversource

    EVERSSURCE ENERGY ESG at Eversource 28

  30. Slide 30: Eversource's Progress Toward Carbon Neutrality

    Eversource’s Progress Toward Carbon Neutrality 900,000 828,107 -17%  Eversource emissions have 800,000 greatly declined through 707,015 divestiture of fossil fuel 700,000 685,331 generation over the past several 600,000 decades  We have seen a 17% decline in MT CO2e 500,000 400,000 Scope 1 and 2 e

  31. Slide 31: Industry Leading Carbon Neutrality Goal Helps the Region Meet Its Targets

    Industry Leading Carbon Neutrality Goal Helps the Region Meet Its Targets Eversource Targets Regional Targets Carbon Neutral By 2030 80+% GHG Reductions By 2050  Reducing electric line loss  Offshore wind development  Lowering methane emissions  Industry-leading energy from gas distribution syst

  32. Slide 32: Addressing Largest Sources of New England Carbon Emissions

    Eversource Addressing Largest Sources of New England Carbon Emissions: Transportation, Space Heating and Power Generation 2018 Energy Carbon Emissions by Source New England vs. U.S. 100% 6.1% 19.0% Industrial 14.8% 80% 32.7% 33.0% Power generation 60% 40% 11.4% Space heating 46.4% 20% 36.6% Transpor

  33. Slide 33: Emissions From ISO-New England Generators Since 2001

    Emissions From ISO-New England Generators Since 2001 Eversource serves approximately 45% of New England load, but owns no emitting generation; currently, about 60% of Eversource customers’ electricity consumption is directly contracted by customers through third parties NOx and SOX Emissions CO2 Emi

  34. Slide 34: An Effective Method of Reducing Emissions: Improve Energy Efficiency

    An Effective Method of Reducing Emissions: Improve Energy Efficiency 16 3 18 2 7 4 Eversource MA, #1 Most Energy Efficient Utility in the United States According to ACEEE, in their second edition of the Utility Energy Efficiency Scorecard Retail Customer Count Up 3.2% Since 2015, While KWH Sales Dow

  35. Slide 35: Eversource Recognized as the Leading Energy Company

    Eversource Recognized as the Leading Energy Company #1 Energy and Utilities Company on Newsweek magazine’s Most Responsible Top level ESG and ESG risk rating Companies list Most Honored Company Institutional Investor's 2021 All-America Executive Team One of only four energy companies on Barron’s Mos

  36. Slide 36: 2021 Financial Results and Financings

    2021 Financial Results and Financings 35

  37. Slide 37: Third Quarter and Nine Months 2021 EPS Results

    Third Quarter and Nine Months 2021 EPS Results 3Q 2021 3Q 2020 3Q Change 9M 2021 9M 2020 9M Change Electric Transmission $0.40 $0.36 $0.04 $1.20 $1.13 $0.07 Electric Distribution (Non-GAAP) 0.62 0.60 0.02 1.31 1.33 (0.02) Natural Gas Distribution (0.06) (0.04) (0.02) 0.37 0.22 0.15 Water Distributio

  38. Slide 38: 2021 Financings

    2021 Financings Company Transaction Size/Coupon Issuance Date Maturity Eversource Parent Senior Notes $350M @ 2.55% Mar 11, 2021 Mar 15, 2031 Aquarion CT Senior Notes $100M @ 3.31% Apr 1, 2021 Apr 1, 2051 NSTAR Electric Green Debentures $300M @ 3.10% May 27, 2021 Jun 1, 2051 PSNH First Mortgage Bond

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