8-K
CONNECTICUT LIGHT & POWER CO (CNTHP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2022 (July 28, 2022)
| Commission<br><br> <br>File Number | Registrant; State of Incorporation<br><br> <br>Address;<br>and Telephone Number | I.R.S. Employer<br><br> <br>Identification No. |
|---|---|---|
| 1-5324 | EVERSOURCE ENERGY<br><br> <br>(a Massachusetts voluntary association)<br><br> <br>300 Cadwell Drive<br><br> <br>Springfield, Massachusetts 01104<br><br> <br>Telephone: (800) 286-5000 | 04-2147929 |
| 0-00404 | THE CONNECTICUT LIGHT AND POWER COMPANY<br><br> <br>(a Connecticut corporation)<br><br> <br>107 Selden Street<br><br> <br>Berlin, Connecticut 06037-1616<br><br> <br>Telephone: (800) 286-5000 | 06-0303850 |
| 1-02301 | NSTAR ELECTRIC COMPANY<br><br> <br>(a Massachusetts corporation)<br><br> <br>800 Boylston Street<br><br> <br>Boston, Massachusetts 02199<br><br> <br>Telephone: (800) 286-5000 | 04-1278810 |
| 1-6392 | PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE<br><br> <br>(a New Hampshire corporation)<br><br> <br>Energy Park<br><br> <br>780 North Commercial Street<br><br> <br>Manchester, New Hampshire 03101-1134<br><br> <br>Telephone: (800) 286-5000 | 02-0181050 |
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the<br>Securities Act (17 CFR 230.425) | ||
|---|---|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the<br>Exchange Act (17 CFR 240.14a-12) | ||
| --- | --- | ||
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| --- | --- | ||
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||
| --- | --- | ||
| Securities registered pursuant to Section 12(b) of the Act: | |||
| --- | --- | --- | --- |
| Registrant | Title of each class | Trading<br><br> <br>Symbol(s) | Name of each exchange on<br><br> <br>which registered |
| Eversource Energy | Common Shares, $5.00 par value per share | ES | New York Stock Exchange |
| The Connecticut Light and Power Company | None | N/A | N/A |
| NSTAR Electric Company | None | N/A | N/A |
| Public Service Company of New Hampshire | None | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
| Emerging growth<br><br> <br>company | |
|---|---|
| Eversource Energy | ¨ |
| The Connecticut Light and Power Company | ¨ |
| NSTAR Electric Company | ¨ |
| Public Service Company of New Hampshire | ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| Eversource Energy | ¨ |
|---|---|
| The Connecticut Light and Power Company | ¨ |
| NSTAR Electric Company | ¨ |
| Public Service Company of New Hampshire | ¨ |
| Document Type | 8-K |
| --- | --- |
| Document Period End Date | 2022-07-28 |
| Amendment Flag | false |
| CIK | 0000023426 |
| THE<br> CONNECTICUT LIGHT_Written communications | ¨ |
| THE<br> CONNECTICUT LIGHT_Soliciting material pursuant to | ¨ |
| THE<br> CONNECTICUT LIGHT_Pre-commencement communications pursuant | ¨ |
| THE<br> CONNECTICUT LIGHT_Pre-commencement communications pursuant | ¨ |
| Document Type | 8-K |
| Document Period End Date | 2022-07-28 |
| Amendment Flag | false |
| CIK | 0000013372 |
| NSTAR<br> ELECTRIC_Written communications | ¨ |
| NSTAR<br> ELECTRIC_Soliciting material pursuant to | ¨ |
| NSTAR<br> ELECTRIC_Pre-commencement communications pursuant | ¨ |
| NSTAR<br> ELECTRIC_Pre-commencement communications pursuant | ¨ |
| CIK | 0000315256 |
| Public Service Company_Written communications | ¨ |
| Document Type | 8-K |
| Document Period End Date | 2022-07-28 |
| Amendment Flag | false |
| Public Service Company_Soliciting material pursuant to | ¨ |
| Public Service Company_Pre-commencement communications pursuant | ¨ |
| Public Service Company_Pre-commencement communications pursuant | ¨ |
| Section 2 | Financial Information |
| --- | --- |
| Item 2.02 | Results of Operations and Financial Conditions. |
| --- | --- |
On July 28, 2022, Eversource Energy issued a news release announcing its unaudited results of operations for the second quarter and first six months ended June 30, 2022 and related financial information for certain of its subsidiaries as of and for the same period. A copy of the news release and related unaudited financial reports are attached as Exhibits 99.1 and 99.2, and are incorporated herein by reference thereto.
The information contained in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission (“SEC”) nor incorporated by reference in any registration statement filed by Eversource Energy or any subsidiary thereof under the Securities Act of 1933, as amended (the “Securities Act”), unless specified otherwise.
| Section 7 | Regulation FD |
|---|---|
| Item 7.01 | Regulation FD Disclosure. |
| --- | --- |
On July 29, 2022, Eversource Energy will webcast a conference call with financial analysts during which senior management will discuss the company’s financial performance through the second quarter of 2022. The webcast will be accessible from the Investors section of the Eversource Energy website at www.eversource.com. Attached as Exhibit 99.3 and incorporated herein by reference are the slides to be discussed by Eversource Energy during the conference call.
The information contained in this Item 7.01, including Exhibit 99.3, shall not be deemed “filed” with the SEC nor incorporated by reference into any registration statement filed by Eversource Energy or any subsidiary thereof under the Securities Act, unless specified otherwise.
| Section 9 | Financial Statements and Exhibits |
|---|---|
| Item 9.01 | Financial Statements and Exhibits. |
| --- | --- |
| Exhibit<br><br> <br>Number | Description |
| --- | --- |
| 99.1 | News Release of Eversource Energy dated July 28, 2022. |
| 99.2 | Financial Report for the three and six months ended June 30, 2022. |
| 99.3 | July 29, 2022 presentation slides. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
[The remainder of this page left blank intentionally.]
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| EVERSOURCE ENERGY<br><br> <br>THE CONNECTICUT LIGHT AND POWER COMPANY<br><br> <br>NSTAR ELECTRIC COMPANY<br><br> <br>PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE<br><br> <br>(Registrants) | ||
|---|---|---|
| July 28, 2022 | By: | /s/ John M. Moreira |
| John M. Moreira | ||
| Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
| 56 Prospect St., Hartford, Connecticut 06103-2818<br><br><br><br><br><br><br><br>800 Boylston St., Boston, Massachusetts 02199 |
|---|
Eversource Energy Reports Second QuarterResults
(HARTFORD,Conn. and BOSTON, Mass. – July 28, 2022) Eversource Energy (NYSE: ES) today reported earnings of $291.9 million, or $0.84 per share, in the second quarter of 2022, compared with earnings of $264.5 million, or $0.77 per share, in the second quarter of 2021. In the first half of 2022, Eversource Energy reported earnings of $735.3 million, or $2.13 per share, compared with earnings of $630.7 million, or $1.83 per share, in the first half of 2021.
Results for both years include transaction and transition charges primarily related to the October 2020 acquisition of the assets of Columbia Gas of Massachusetts. Those after-tax charges totaled $5.5 million in the second quarter of 2022 and $10.8 million in the first half of 2022, compared with $6.8 million in the second quarter of 2021 and $13 million in the first half of 2021. Results in the first half of 2021 also included a pre-tax charge of $28.6 million related to Connecticut regulators’ assessment of the performance of The Connecticut Light and Power Company (CL&P) following the catastrophic damage from Tropical Storm Isaias in August 2020. Absent those charges, Eversource earned $297.4 million^1^or $0.86 per share,^1^ in the second quarter of 2022 and $746.1 million^1^, or $2.16 per share^1^in the first half of 2022, compared with earnings of $269.9 million^1^, or $0.79 per share^1^, in the second quarter of 2021 and $666.3 million^1^, or $1.94 per share^1^, in the first half of 2021.
Eversource Energy also today narrowed its 2022 earnings per share (EPS) projection to between $4.04 to $4.14 per share, excluding transaction and transition charges, compared with a previous range of $4.00 to $4.17 per share. Eversource Energy also today reaffirmed its long-term EPS growth rate from its existing core regulated businesses in the upper half of 5-7 percent, using the $3.86 per share^1^ earned in 2021 as a base.
“We had a strong first half of 2022, both operationally and financially,” said Joe Nolan, Eversource president and chief executive officer. “We are delivering the safe, reliable and efficient electric, natural gas and water service our 4.4 million customers expect and advancing the clean energy strategies that support the long-term decarbonization goals of the states and communities we serve.”
Electric Transmission
Eversource Energy’s transmission segment earned $151.5 million in the second quarter of 2022 and $300 million in the first half of 2022, compared with earnings of $137.6 million in the second quarter of 2021 and $273 million in the first half of 2021. Transmission segment results improved due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution
Eversource Energy’s electric distribution segment earned $129 million in the second quarter of 2022 and $269.9 million in the first half of 2022, compared with earnings of $120.2 million^1^ in the second quarter of 2021 and $237.5 million^1^ in the first half of 2021, excluding the CL&P charge noted above. Improved second-quarter and first-half results were due to higher revenues and lower pension-related costs, partially offset by higher depreciation, property taxes, interest expense and other employee-related costs.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $7.7 million in the second quarter of 2022 and $171.7 million in the first half of 2022, compared with earnings of $4.1 million in the second quarter of 2021 and $151.6 million in the first half of 2021. Improved second-quarter and first-half results were primarily the result of higher revenues, offset by higher operation and maintenance (O&M) costs and property tax, interest and depreciation expense.
Water Distribution
Eversource Energy’s water segment earned $9 million in the second quarter of 2022 and $12.7 million in the first half of 2022, approximately the same as earnings of $8.9 million in the second quarter of 2021 and $12.6 million in the first half of 2021.
Eversource Parent and Other Companies
Eversource Energy parent and other companies earned $0.2 million^1^ in the second quarter of 2022 and lost $8.2 million^1^ in the first half of 2022, excluding the charges noted earlier, compared with losses of $0.9 million^1^ in the second quarter of 2021 and $8.4 million^1^ in the first half of 2021. Improved second-quarter results primarily reflect gains on investments in a clean energy fund, partially offset by higher interest costs.
The following table reconciles 2022 and 2021 second quarter and first half earnings per share:
| Second Quarter | First Six Months | ||||
|---|---|---|---|---|---|
| 2021 | Reported EPS | $ | 0.77 | $ | 1.83 |
| Higher electric transmission earnings in 2022 | 0.04 | 0.08 | |||
| Higher natural gas revenues in 2022, partially offset by higher O&M, property tax expense, interest and depreciation | 0.01 | 0.05 | |||
| Higher electric distribution revenues in 2022, partially offset by higher O&M, depreciation, property taxes and interest expense | 0.02 | 0.09 | |||
| Absence of storm-related charge in 2022 | -- | 0.07 | |||
| Lower charges related to transactions in 2022 | -- | 0.01 | |||
| 2022 | Reported EPS | $ | 0.84 | $ | 2.13 |
Financial results by segment for the second quarter and first six months of 2022 and 2021 are noted below:
Three months ended:
| (in millions, except EPS) | ****<br><br>June 30, 2022 | ****<br><br>June 30, 2021 | Increase/<br> <br>(Decrease) | ****<br><br>2022 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 151.5 | $ | 137.6 | $ | 13.9 | $ | 0.44 | ||||
| Electric Distribution^1^ | 129.0 | 120.2 | 8.8 | 0.37 | ||||||||
| Natural Gas Distribution | 7.7 | 4.1 | 3.6 | 0.02 | ||||||||
| Water Distribution | 9.0 | 8.9 | 0.1 | 0.03 | ||||||||
| Eversource Parent and Other Companies^1^ | 0.2 | (0.9 | ) | 1.1 | 0.00 | |||||||
| Transaction and transition costs | (5.5 | ) | (5.4 | ) | (0.1 | ) | (0.02 | ) | ||||
| Reported Earnings | $ | 291.9 | $ | 264.5 | $ | 27.4 | $ | 0.84 |
Six months ended:
| (in millions, except EPS) | June 30, 2022 | June 30, 2021 | Increase | 2022 EPS^1^ | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 300.0 | $ | 273.0 | $ | 27.0 | $ | 0.87 | |||
| Electric Distribution^1^ | 269.9 | 237.5 | 32.4 | 0.78 | |||||||
| Natural Gas Distribution | 171.7 | 151.6 | 20.1 | 0.49 | |||||||
| Water Distribution | 12.7 | 12.6 | 0.1 | 0.04 | |||||||
| Eversource Parent and Other Companies^1^ | (8.2 | ) | (8.4 | ) | 0.2 | (0.02 | ) | ||||
| Transaction and transition costs and CT storm charge | (10.8 | ) | (35.6 | ) | 24.8 | (0.03 | ) | ||||
| Reported Earnings | $ | 735.3 | $ | 630.7 | $ | 104.6 | $ | 2.13 |
Eversource Energy has approximately 346.5 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.4 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.
CONTACT:
Jeffrey R. Kotkin
(860) 665-5154
| Note: Eversource Energy will webcast a conference call with senior management on July 29, 2022, beginning at 9 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com. |
|---|
^^
*^1^*All per-share amounts in this news release are reported on a diluted basis. The only common equity securities thatare publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interestin the assets and liabilities of such business, but rather represent a direct interest in Eversource Energy's assets and liabilities asa whole. EPS by business is a financial measure not recognized under generally accepted accounting principles (non-GAAP) that is calculatedby dividing the net income or loss attributable to common shareholders of each business by the weighted average diluted Eversource Energycommon shares outstanding for the period. Earnings discussions also include non-GAAP financial measures referencing 2022 and 2021 earningsand EPS excluding certain transaction and transition costs, and our 2021 earnings and EPS excluding charges at CL&P related to anOctober 2021 settlement agreement that included credits to customers and funding of various customer assistance initiatives and a 2021storm performance penalty imposed on CL&P by the PURA. Eversource Energy uses these non-GAAP financial measures to evaluate and providedetails of earnings results by business and to more fully compare and explain 2022 and 2021 results without including these items. Thisinformation is among the primary indicators management uses as a basis for evaluating performance and planning and forecasting of futureperiods. Management believes the impacts of transaction and transition costs, the CL&P October 2021 settlement agreement, and the2021 storm performance penalty imposed on CL&P by the PURA, are not indicative of Eversource Energy’s ongoing costs and performance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, managementbelieves that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and providesadditional and useful information to readers in analyzing historical and future performance of the business. These non-GAAP financialmeasures should not be considered as alternatives to Eversource Energy’s reported net income attributable to common shareholdersor EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance.
This document includes statements concerning Eversource Energy’sexpectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth andother statements that are not historical facts. These statements are “forward-looking statements” within the meaning of thePrivate Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statements through the useof words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those includedin the forward-looking statements. Forward-looking statements are based on the current expectations, estimates, assumptions or projectionsof management and are not guarantees of future performance. These expectations, estimates, assumptions or projections may vary materiallyfrom actual results. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, thefollowing important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-lookingstatements, including, but not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentialityof our proprietary information and the personal information of our customers; disruptions in the capital markets or other events thatmake our access to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID-19) pandemic, includingany new or emerging variants, on our customers, vendors, employees, regulators, and operations; changes in economic conditions, includingimpact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our majorstrategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage anddisrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federalregulatory, public policy and taxing bodies; substandard performance of third-party suppliers and service providers; fluctuations in weatherpatterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology ordevelopment of alternative energy sources related to our current or future business model; contamination of, or disruption in, our watersupplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliancewith environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies;and other presently unknown or unforeseen factors.
Other risk factors are detailed in Eversource Energy’s reportsfiled with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’s websiteat www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertaintiesthat may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place unduereliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as requiredby federal securities laws, Eversource Energy undertakes no obligation to update any forward-looking statement or statements to reflectevents or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
Exhibit99.2
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| (Thousands of Dollars, Except Share Information) | 2022 | 2021 | 2022 | 2021 | ||||
| Operating Revenues | $ | 2,572,641 | $ | 2,122,538 | $ | 6,043,951 | $ | 4,948,378 |
| Operating Expenses: | ||||||||
| Purchased Power, Fuel and Transmission | 940,541 | 650,087 | 2,330,237 | 1,648,578 | ||||
| Operations and Maintenance | 452,174 | 411,147 | 924,608 | 876,689 | ||||
| Depreciation | 294,238 | 274,647 | 583,568 | 545,352 | ||||
| Amortization | 70,409 | 5,611 | 307,357 | 113,624 | ||||
| Energy Efficiency Programs | 136,679 | 128,955 | 336,163 | 317,018 | ||||
| Taxes Other Than Income Taxes | 223,031 | 200,486 | 443,395 | 409,944 | ||||
| Total Operating Expenses | 2,117,072 | 1,670,933 | 4,925,328 | 3,911,205 | ||||
| Operating Income | 455,569 | 451,605 | 1,118,623 | 1,037,173 | ||||
| Interest Expense | 160,090 | 145,435 | 313,334 | 283,201 | ||||
| Other Income, Net | 93,861 | 46,619 | 165,422 | 80,820 | ||||
| Income Before Income Tax Expense | 389,340 | 352,789 | 970,711 | 834,792 | ||||
| Income Tax Expense | 95,598 | 86,389 | 231,643 | 200,370 | ||||
| Net Income | 293,742 | 266,400 | 739,068 | 634,422 | ||||
| Net Income Attributable to Noncontrolling Interests | 1,880 | 1,880 | 3,759 | 3,759 | ||||
| Net Income Attributable to Common Shareholders | $ | 291,862 | $ | 264,520 | $ | 735,309 | $ | 630,663 |
| Basic and Diluted Earnings Per Common Share | $ | 0.84 | $ | 0.77 | $ | 2.13 | $ | 1.83 |
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic | 345,893,714 | 343,844,626 | 345,525,030 | 343,761,435 | ||||
| Diluted | 346,295,478 | 344,435,696 | 345,978,306 | 344,385,193 |
The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to shareholders about Eversource Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.
EVERSOURCE ENERGY Q2 2022 RESULTS July 29, 2022 2022 Second Quarter Results Exhibit 99.3
EVERSOURCE ENERGY Q2 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 legal interest in the assets and liabilities of such business, bu t r ather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a financial measure not recognized under generally accepted accounting pr inciples (non - GAAP) that is calculated by dividing the net income or loss attributable to common shareholders of each business by the weighted average diluted Eversource Energy com mon shares outstanding for the period. Earnings discussions also include non - GAAP financial measures referencing 2022 and 2021 earnings and EPS excluding certain transaction an d transition costs, and our 2021 earnings and EPS excluding charges at CL&P related to an October 2021 settlement agreement that included credits to customers and funding of various customer assistance initiatives and a 2021 storm performance penalty imposed on CL&P by the PURA. Eversource Energy uses these non - GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2022 and 2021 results without including these items. This information is amon g t he primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of transaction and tr ansition costs, the CL&P October 2021 settlement agreement, and the 2021 storm performance penalty imposed on CL&P by the PURA, are not indicative of Eversource Energy’s ongo ing costs and performance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, management believes tha t the non - GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to read ers in analyzing historical and future performance of the business. These non - GAAP financial measures should not be considered as alternatives to Eversource Energy’s reported net in come attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance. This document includes statements concerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, as sumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward - looking statements” with in the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward - looking statements through the use of words or phrases such a s “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward - looking statements involve r isks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward - looking statements. Forward - looking statements are based on the current expectations, estimates, assumptions or projections of management and are not guarantees of future performance. These expectations, estimates, assumptions or project ions may vary materially from actual results. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward - looking statements, including, but not limited to: cyberattack s or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions i n t he capital markets or other events that make our access to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID - 19) pandemic, includi ng any new or emerging variants, on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax polic ies , and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, phys ica l attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, st ate and federal regulatory, public policy and taxing bodies; substandard performance of third - party suppliers and service providers; fluctuations in weather patterns, including extreme weat her due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or fut ure business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory polic y, including compliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other prese ntl y unknown or unforeseen factors. Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They ar e updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict an d c ontain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue reliance on the forward - lo oking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource Energy undertakes no obl iga tion to update any forward - looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of una nticipated events.
EVERSOURCE ENERGY Q2 2022 RESULTS Agenda 2 Joe Nolan President & CEO ▪ 2021 Sustainability and DE&I Reports Published ▪ Legislative and Clean Energy Project Update ▪ Offshore Wind Update ▪ Q2 2022 Financial Results ▪ Regulatory Update ▪ Financing Activity Update John Moreira CFO & Treasurer
EVERSOURCE ENERGY Q2 2022 RESULTS 3 Eversource 2021 Sustainability and Diversity, Equity and Inclusion Reports ▪ 2021 Sustainability Report published this month ▪ Highlights our progress to advance environmental, social and governance (ESG) performance ▪ Greenhouse gas emissions were again third - party verified to enhance data reliability ▪ Progress on our commitment to Net Zero by 2030 ▪ Adherence to voluntary standards (TCFD, GRI, SASB) ▪ Inaugural publication of our Diversity, Equity and Inclusion (DE&I) Report providing details on our accomplishments in promoting diversity, equity and inclusion ▪ Includes overview of our DE&I strategy and efforts we are making on our DE&I journey ▪ Report includes metrics on workforce composition and key DE&I corporate performance measures ▪ Report includes link to our EEO - 1 data 2021 Sustainability Report 2021 Diversity, Equity and Inclusion Report
EVERSOURCE ENERGY Q2 2022 RESULTS 4 Clean Energy Project Update ▪ Provincetown Battery Storage Project – Successfully tested and placed in service on May 31, 2022 – Innovative and unique project – Non - wires alternative improves reliability for Outer Cape customers ▪ Massachusetts Solar Project – 2021 Climate Bill expands solar ownership opportunities in MA – First three projects submitted to DPU for review on June 1 st ▪ Networked Geothermal Pilot – Design services are under way with technical visits and thermal modeling taking place – 85% sign - up rate on route – Actively engaged with community and schools
EVERSOURCE ENERGY Q2 2022 RESULTS ▪ Strategic review of offshore wind assets underway – Could result in potential sale of all or part of our 50% interest – Finalizing marketing materials for prospective buyers – Initiated preliminary outreach ▪ South Fork Wind construction continues to progress – Virtually complete with onshore section beneath public roads – Excellent progress on transmission work in the railroad right - of - way and the substation ▪ Other projects progressing through siting and permitting – Revolution Wind approved unanimously by the Rhode Island Energy Facility Siting Board – Sunrise Wind’s New York State Article VII Settlement discussions nearing completion ▪ South Fork Wind signed agreement with leading environmental organizations to further enhance measures designed to protect the North Atlantic right whale during construction and operation of the offshore wind farm ▪ Eversource and Ø rsted executed National Offshore Wind Agreement with the North America’s Building Trades Unions (NABTU) ensuring the use of union labor for offshore windfarm construction 5 Offshore Wind Update
EVERSOURCE ENERGY Q2 2022 RESULTS 6 Assumptions May 2022 July 2022 Costs Locked in for Three Projects 80% 82% Offshore Investment to Date $1.3B $1.5B 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 - 13% South Fork Wind In Service Late 2023 (Under Construction) Late 2023 (Under Construction) Revolution Wind In Service In 2025 In 2025 Sunrise Wind In Service Late 2025 Late 2025 Offshore Wind Updates
EVERSOURCE ENERGY Q2 2022 RESULTS 7 New MA Climate Legislation ▪ MA House and Senate approved significant climate legislation on July 21 (House Bill #5060) – Gov. Baker has until July 31 to sign, veto or seek modifications to the bill ▪ Substantial enhancements to commitment to offshore wind – Affirms commitment to contract for 5,600 MW of offshore wind by June 30, 2027 – Modifies RFP bidding process to enhance competition and give more weight to non - price factors such as economic development – Creates Offshore Wind Industry Investment Trust Fund to promote offshore manufacturing, assembly, research, port revitalization, workforce training ▪ Creates EV Adoption Incentive Trust Fund to encourage buying and leasing EVs ▪ Directs electric companies to develop modernization plans to upgrade distribution and transmission facilities to accommodate electrification needs ▪ Initiates 10 - community pilot program to restrict fossil fuel use in new buildings – Would exempt research and health care facilities – Accommodations to account for housing affordability concerns
EVERSOURCE ENERGY Q2 2022 RESULTS 8 2Q 2022 2Q 2021 2Q Change 1H 2022 1H 2021 1H Change $0.44 $0.40 $0.04 $0.87 $0.79 $0.08 0.37 0.35 0.02 0.78 0.69 0.09 0.02 0.01 0.01 0.49 0.44 0.05 0.03 0.03 0.00 0.04 0.04 0.00 0.00 0.00 0.00 (0.02) (0.02) 0.00 0.86 0.79 0.07 2.16 1.94 0.22 (0.02) (0.02) 0.00 (0.03) (0.11) 0.08 $0.84 $0.77 $0.07 $2.13 $1.83 $0.30 Electric Transmission Electric Distribution (Non - GAAP) Natural Gas Distribution Parent & Other (Non - GAAP) Water Distribution EPS, Ex. CL&P Storm Charge, Transaction/Transition Costs (Non - GAAP) CL&P Storm Charge & Transaction/Transition Costs Reported EPS (GAAP) Second Quarter and First Half 2022 Financial Results
EVERSOURCE ENERGY Q2 2022 RESULTS 9 Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2026; EPS Guidance Narrowed for 2022 $2.28 $2.53 $2.65 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $3.86 $4.04 - $4.14 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022E* 2023E 2024E 2025E 2026E * Reflects non - GAAP results, excludes nonrecurring charges
EVERSOURCE ENERGY Q2 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 $203 $214 $3,053 $3,064 $3,541 $3,897 $3,684 $3,562 $3,494 $3,504 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities $ In Millions $18.1 Billion 2022 - 2026 10
EVERSOURCE ENERGY Q2 2022 RESULTS 11 AMI Implementation Under Active Review by MA, CT regulators AMI - MA Briefing period ended June 27, 2022 Decision expected Q4 2022 AMI - CT Briefing period ended April 29, 2022 Additional written comments filed on July 20, 2022 Decision expected Q4 2022 What does AMI do for . . . The Customer? System Performance?
EVERSOURCE ENERGY Q2 2022 RESULTS 12 Rate Review Summary NSTAR Electric ▪ Expected decision date of December 1, 2022 ▪ Rates effective on January 1, 2023 ▪ Revenue deficiency of $94M ▪ Requested return on equity of 10.5% ▪ Requested capital structure of 54.01% common equity Aquarion Connecticut ▪ Letter of intent filed with PURA on July 1, 2022 ▪ Formal rate review filing expected in August 2022 ▪ First rate review in nearly a decade ▪ Rates effective February 2023 ▪ Revenue deficiency of: – $27.6M in Year 1, or 13.9% – $25.2M over 2 subsequent rate years
EVERSOURCE ENERGY Q2 2022 RESULTS 13 Equity Issuance Update New Shares ▪ $1.2 billion At - The - Market Program has issued 1.39M shares at a weighted average price of $91.98 through July Treasury Shares ▪ Dividend reinvestment, employee equity programs continue with nearly 640,000 shares issued YTD through July