Eversource Energy (d/b/a) · NYSE:ES
Eversource Energy (d/b/a) — Eversource Energy — Q1 2022 Earnings Presentation
17 slides from Eversource Energy (d/b/a)'s earnings presentation, May 4, 2022
Slide 1: 2022 First Quarter Results
EVERSOURCE ENERGY Q1 2022 RESULTS May 5, 2022 2022 First Quarter Results Exhibit 99.3
Slide 2: Safe Harbor Statement
EVERSOURCE ENERGY Q1 2022 RESULTS Safe Harbor Statement 1 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 leg
Slide 3: Agenda
EVERSOURCE ENERGY Q1 2022 RESULTS Agenda 2 Joe Nolan President & CEO Phil Lembo Senior Strategic Advisor & Outgoing CFO ▪ Massachusetts Future of Gas Update ▪ Offshore Wind Update ▪ Q1 2022 Financial Results ▪ 2022 – 2026 Guidance & Outlook ▪ Regulatory Update ▪ Equity Issuance Update John Moreira E
Slide 4: Massachusetts Future of Gas Proceeding – Highlights
EVERSOURCE ENERGY Q1 2022 RESULTS 3 Massachusetts Future of Gas Proceeding – Highlights ▪ Proposed a portfolio of initiatives to help achieve the state’s net-zero greenhouse gas by 2050 emission goal, while still providing customers with energy choices ▪ The plan will be updated every three years to
Slide 5: Eversource-Ørsted offshore wind joint venture and strategic review
EVERSOURCE ENERGY Q1 2022 RESULTS ▪ Eversource-Ørsted 50-50 joint venture owns three projects plus open offshore wind lease area – South Fork Wind, Revolution Wind and Sunrise Wind with a total capacity of 1,758 MW – Up to 175,000 acres of offshore wind lease area open for additional development ▪ S
Slide 6: South Fork Wind Construction Under Way
EVERSOURCE ENERGY Q1 2022 RESULTS 5 South Fork Wind Construction Under Way
Slide 7: Offshore Wind Updates
EVERSOURCE ENERGY Q1 2022 RESULTS 6 Assumptions Feb 2022 May 2022 Costs Locked in for Three Projects 80% 80% Offshore Investment to Date $1.2B $1.3B Expected Spending in 2022 $900M - $1B $900M - $1B Expected Spending 2023 - 2026 $3B - $3.6B $3B - $3.6B Expected Long - Term Average ROE 11 - 13% 11 -
Slide 8: Q1 2022 vs. Q1 2021 Financial Results
EVERSOURCE ENERGY Q1 2022 RESULTS 1Q 2022 1Q 2021 Change $0.43 $0.39 $0.04 0.41 0.34 0.07 0.47 0.43 0.04 0.01 0.01 0.00 (0.02) (0.02) 0.00 $1.30 $1.15 $0.15 (0.02) (0.09) 0.07 $1.28 $1.06 $0.22 Natural Gas Distribution Electric Transmission Electric Distribution (Non-GAAP) Water Distribution Reporte
Slide 9: Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5–7%
EVERSOURCE ENERGY Q1 2022 RESULTS 8 Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2026 $2.28 $2.53 $2.65 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $3.86 $4.00- $4.17 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022E* 2023E 2024E 2025E 2026E * Reflect
Slide 10: Projected Capital Expenditures For Core Businesses
EVERSOURCE ENERGY Q1 2022 RESULTS Projected Capital Expenditures For Core Businesses $1,030 $964 $1,115 $1,118 $979 $861 $834 $808 $1,221 $1,189 $1,244 $1,450 $1,469 $1,391 $1,372 $1,338 $453 $545 $799 $921 $849 $926 $895 $938 $110 $127 $144 $154 $163 $176 $190 $206 $239 $239 $239 $254 $224 $208 $20
Slide 11: AMI Implementation Under Active Review by MA, CT regulators
EVERSOURCE ENERGY Q1 2022 RESULTS 10 AMI Implementation Under Active Review by MA, CT regulators AMI - MA Briefing period ends June 27, 2022 Decision expected Q4 2022 AMI - CT Briefing period ended April 29, 2022 Decision expected Q4 2022 What does AMI do for . . . The Customer? System Performance?
Slide 12: Equity Issuance Update
EVERSOURCE ENERGY Q1 2022 RESULTS 11 Equity Issuance Update New Shares ▪ $1.2 billion At-The-Market Program expected to commence in Q2 2022 Treasury Shares ▪ Dividend reinvestment, employee equity programs continue with 475,000 shares issued YTD through April 30
Slide 13: Appendix
EVERSOURCE ENERGY Q1 2022 RESULTS 12 APPENDIX
Slide 14: Key Elements of NSTAR Electric Rate Review
EVERSOURCE ENERGY Q1 2022 RESULTS ▪ Address the Distribution Revenue Deficiency ($89M) – Relates to capital additions, enterprise IT and Storm Fund contribution ▪ Extension of Performance-Based Ratemaking (PBR) – 10-year plan, with enabling rate base roll-in(s) ▪ AMI Tariff Approval – Approval of sp
Slide 15: Massachusetts Future of Gas Proceeding
EVERSOURCE ENERGY Q1 2022 RESULTS 14 Massachusetts Future of Gas Proceeding Energy Efficiency Reduce the energy demand by maximizing the application of all energy efficiency investments in concert with decarbonization options Initiative 1 – Hybrid Heat Pumps ▪ Develop and propose a hybrid heat pump
Slide 16: FERC Transmission New England ROE Update
EVERSOURCE ENERGY Q1 2022 RESULTS 15 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)
Slide 17: Lower Generation Capacity Costs Helping to Keep New England Electric Bills In Check
EVERSOURCE ENERGY Q1 2022 RESULTS Lower Generation Capacity Costs Helping to Keep New England Electric Bills In Check $4,000 $3,000 $2,400 $2,100 $1,600 $980 $1,360 $1,040 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 FCA 9 FCA 10 FCA 11 FCA 12 FCA 13 FCA 14 FCA 15 FCA 16 June 2021