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): November 2, 2021 (November 2, 2021)
| 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 | 2021-05-05 |
| 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 | 2021-05-05 |
| 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 | 2021-05-05 |
| 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. |
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On November 2, 2021, Eversource Energy issued a news release announcing its unaudited results of operations for the third quarter and nine months ended September 30, 2021 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 |
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| Item 7.01 | Regulation FD Disclosure. |
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On November 3, 2021, Eversource Energy will webcast a conference call with financial analysts during which senior management will discuss the company’s financial performance through the third quarter of 2021. 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 |
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| Item 9.01 | Financial Statements and Exhibits. |
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| Exhibit<br><br> <br>Number | Description |
|---|---|
| 99.1 | News Release of Eversource Energy dated November 2, 2021. |
| 99.2 | Financial Report for the three and nine months ended September 30, 2021. |
| 99.3 | November 3, 2021 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) | ||
|---|---|---|
| November 2, 2021 | By: | /s/ Jay S. Buth |
| Jay S. Buth<br><br> <br>Vice President, Controller and<br><br> <br>Chief Accounting Officer |
Exhibit99.1
| 56<br> Prospect St., Hartford, Connecticut 06103-2818<br><br><br><br><br><br><br><br>800<br>Boylston St., Boston, Massachusetts 02199 |
|---|
EversourceEnergy Reports Third Quarter Results
(HARTFORD, Conn. and BOSTON, Mass. – November 2, 2021) Eversource Energy (NYSE: ES) today reported earnings of $283.2 million, or $0.82 per share, in the third quarter of 2021, compared with earnings of $346.3 million, or $1.01 per share, in the third quarter of 2020. In the first nine months of 2021, Eversource Energy earnings totaled $913.8 million, or $2.65 per share, compared with earnings of $933.2 million, or $2.76 per share, in the first nine months of 2020.
Results for both years include acquisition-related charges primarily related to the October 2020 acquisition of the assets of Columbia Gas of Massachusetts. Those after-tax charges totaled $4.3 million in the third quarter of 2021 and $17.3 million in the first nine months of 2021, compared with charges of $5.3 million in the third quarter of 2020 and $12.8 million in the first nine months of 2020.
Additionally, first and third quarter 2021 results include after-tax charges related to the settlement of multiple regulatory dockets concerning Eversource’s subsidiary, The Connecticut Light and Power Company (CL&P). Those after-tax charges totaled $63.2 million in the third quarter of 2021 and $85.8 million through the first nine months of 2021. Excluding the acquisition and settlement charges noted above, Eversource earned $350.7 million^1^, or $1.02 per share^1^, in the third quarter of 2021 and $1,016.9 million^1^, or $2.95 per share^1^, in the first nine months of 2021.
Eversource Energy today reaffirmed its previously disclosed 2021 earnings per share (EPS) projection of $3.81 to $3.93 per share. That range excludes all of the charges noted above. Eversource Energy also today reaffirmed its long-term EPS growth rate from its existing regulated businesses in the upper half of 5-7 percent, using the $3.64 per share^1^ earned in 2020 as a base.
“Eversource’s 9,300 dedicated employees continue to rise to the challenges of the ongoing pandemic, economic uncertainty and damaging storms – including an incredible response to last week’s Nor’easter that brought destructive, hurricane-force winds to Southeastern Massachusetts,” said Joe Nolan, Eversource President and Chief Executive Officer. “We have resolved some significant regulatory uncertainties, made considerable progress with our partner Ørsted on siting more than 1,750 megawatts of offshore wind, and solidified our standing as one of the nation’s most sustainable utilities.”
Electric Transmission
Eversource Energy’s transmission segment earned $139.4 million in the third quarter of 2021 and $412.4 million in the first nine months of 2021, compared with earnings of $125.6 million in the third quarter of 2020 and $381.8 million in the first nine months of 2020. 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, excluding the CL&P charges noted above, earned $213.6 million^1^ in the third quarter of 2021 and $451.2 million^1^ in the first nine months of 2021, compared with earnings of $205.5 million in the third quarter of 2020 and $450.6 million in the first nine months of 2020. Improved third-quarter results were due primarily to higher revenues, offset by higher operation and maintenance expense, depreciation, interest, and property taxes.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment lost $22 million in the third quarter of 2021 and earned $129.6 million in the first nine months of 2021, compared with losses of $15.4 million in the third quarter of 2020 and earnings of $73.3 million in the first nine months of 2020. Lower third-quarter results and higher year-to-date results were primarily due to the addition of natural gas assets acquired from Columbia Gas of Massachusetts, most of which are now held by Eversource Gas Company of Massachusetts.
Water Distribution
Eversource’s water distribution segment earned $17.5 million in the third quarter of 2021 and $30 million in the first nine months of 2021, compared with earnings of $23.1 million in the third quarter of 2020 and $35.6 million in the first nine months of 2020. Lower third-quarter results were primarily due to the absence of gains from the 2020 sale of the water system around Hingham, Massachusetts.
Eversource Parent and Other Companies
Eversource Energy parent and other companies, excluding acquisition and transition-related costs, earned $2.2 million^1^ in the third quarter of 2021 and lost $6.3 million^1^ in the first nine months of 2021, compared with earnings of $12.8 million^1^ in the third quarter of 2020 and $4.7 million^1^ in the first nine months of 2020. Lower earnings primarily reflect a higher effective tax rate.
The following table reconciles 2021 and 2020 third quarter and first nine months earnings per share:
| Third Quarter | First Nine Months | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | Reported EPS | $ | 1.01 | $ | 2.76 | ||
| Higher electric transmission earnings in 2021, net of dilution | 0.04 | 0.07 | |||||
| Addition of Eversource Gas Co. of MA results and higher <br>natural gas revenues in 2021, offset by higher depreciation, O&M, property tax expense and dilution at the natural gas segment | (0.02 | ) | 0.15 | ||||
| Higher electric distribution revenues in 2021, offset by <br>higher O&M, depreciation, property taxes and interest <br>expense at the electric distribution segment (ex. storms) | 0.03 | 0.03 | |||||
| Higher storm-related expense in 2021 | (0.01 | ) | (0.05 | ) | |||
| Absence of Hingham-related benefits in 2020 at Aquarion | (0.02 | ) | (0.02 | ) | |||
| Parent & Other, including a higher effective income tax rate | (0.02 | ) | (0.03 | ) | |||
| CL&P regulatory settlement charges | (0.19 | ) | (0.25 | ) | |||
| Charges related to acquisitions in 2021, compared with 2020 | 0.00 | (0.01 | ) | ||||
| 2021 | Reported EPS | $ | 0.82 | $ | 2.65 |
Financial results by segment for the third quarter and first nine months of 2021 and 2020 are noted below:
Three months ended:
| (in millions, except EPS) | ****<br><br>September 30, 2021 | ****<br><br>September 30,<br> <br>2020 | Increase/<br> <br>(Decrease) | ****<br><br>2021 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 139.4 | $ | 125.6 | $ | 13.8 | $ | 0.40 | ||||
| Electric Distribution, ex. settlement^1^ | 213.6 | 205.5 | 8.1 | 0.62 | ||||||||
| Natural Gas Distribution | (22.0 | ) | (15.4 | ) | (6.6 | ) | (0.06 | ) | ||||
| Water Distribution | 17.5 | 23.1 | (5.6 | ) | 0.05 | |||||||
| Eversource Parent and Other Companies^1^ | 2.2 | 12.8 | (10.6 | ) | 0.01 | |||||||
| Charges related to regulatory settlement | (63.2 | ) | 0.0 | (63.2 | ) | (0.19 | ) | |||||
| Charges related to acquisitions | (4.3 | ) | (5.3 | ) | 1.0 | (0.01 | ) | |||||
| Reported Earnings | $ | 283.2 | $ | 346.3 | $ | (63.1 | ) | $ | 0.82 |
Nine months ended:
| (in millions, except EPS) | ****<br><br>September 30, 2021 | ****<br><br>September 30,<br> <br>2020 | Increase/<br> <br>(Decrease) | ****<br><br>2021 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 412.4 | $ | 381.8 | $ | 30.6 | $ | 1.20 | ||||
| Electric Distribution, ex. settlement^1^ | 451.2 | 450.6 | 0.6 | 1.31 | ||||||||
| Natural Gas Distribution | 129.6 | 73.3 | 56.3 | 0.37 | ||||||||
| Water Distribution | 30.0 | 35.6 | (5.6 | ) | 0.09 | |||||||
| Eversource Parent and Other Companies^1^ | (6.3 | ) | 4.7 | (11.0 | ) | (0.02 | ) | |||||
| Charges related to regulatory settlement | (85.8 | ) | 0.0 | (85.8 | ) | (0.25 | ) | |||||
| Charges related to acquisitions | (17.3 | ) | (12.8 | ) | (4.5 | ) | (0.05 | ) | ||||
| Reported Earnings | $ | 913.8 | $ | 933.2 | $ | (19.4 | ) | $ | 2.65 |
Eversource Energy has approximately 344 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.3 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 November 3, 2021, 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 arereported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. Theearnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, butrather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a financial measurenot recognized under generally accepted accounting principles (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 common shares outstanding for the period. Earnings discussions also include non-GAAP financial measures referencing 2021 earnings and EPS excluding charges at CL&P related to a settlement agreement that included refunds to customers and funding of various customer assistance initiatives and a storm performance penalty imposed on CL&P by PURA and 2021 and 2020 earnings and EPS excluding certain acquisition and transition costs. 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 2021 and 2020 results without including these items. This information is among the primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of the CL&P settlement agreement, the storm performance penalty imposed on CL&P by PURA, and acquisition and transition costs are not indicative of Eversource Energy’s ongoing costs and performance. Management viewsthese charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operatingperformance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders andEPS, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financialperformance and provides additional and useful information to readers in analyzing historical and future performance of thebusiness. These non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated netincome attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’soperating 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. Factors that may cause actual results to differ materially from those included in the forward-lookingstatements include, but are 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 Energyundertakes no obligation 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 unanticipated events.
Exhibit 99.2
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| (Thousands of Dollars, Except Share Information) | 2021 | 2020 | 2021 | 2020 | ||||
| Operating Revenues | $ | 2,461,199 | $ | 2,343,642 | $ | 7,409,577 | $ | 6,670,497 |
| Operating Expenses: | ||||||||
| Purchased Power, Fuel and Transmission | 880,639 | 806,254 | 2,529,217 | 2,312,957 | ||||
| Operations and Maintenance | 417,470 | 332,031 | 1,294,159 | 1,006,148 | ||||
| Depreciation | 276,846 | 244,453 | 822,197 | 721,179 | ||||
| Amortization | 45,236 | 57,515 | 158,860 | 130,687 | ||||
| Energy Efficiency Programs | 143,796 | 145,047 | 460,814 | 408,794 | ||||
| Taxes Other Than Income Taxes | 213,881 | 197,112 | 623,827 | 556,726 | ||||
| Total Operating Expenses | 1,977,868 | 1,782,412 | 5,889,074 | 5,136,491 | ||||
| Operating Income | 483,331 | 561,230 | 1,520,503 | 1,534,006 | ||||
| Interest Expense | 147,962 | 134,066 | 431,162 | 403,067 | ||||
| Other Income, Net | 43,768 | 29,218 | 124,588 | 83,565 | ||||
| Income Before Income Tax Expense | 379,137 | 456,382 | 1,213,929 | 1,214,504 | ||||
| Income Tax Expense | 94,091 | 108,242 | 294,461 | 275,621 | ||||
| Net Income | 285,046 | 348,140 | 919,468 | 938,883 | ||||
| Net Income Attributable to Noncontrolling Interests | 1,880 | 1,880 | 5,639 | 5,639 | ||||
| Net Income Attributable to Common Shareholders | $ | 283,166 | $ | 346,260 | $ | 913,829 | $ | 933,244 |
| Basic Earnings Per Common Share | $ | 0.82 | $ | 1.01 | $ | 2.66 | $ | 2.77 |
| Diluted Earnings Per Common Share | $ | 0.82 | $ | 1.01 | $ | 2.65 | $ | 2.76 |
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic | 344,023,846 | 343,076,614 | 343,848,905 | 337,375,172 | ||||
| Diluted | 344,669,782 | 343,773,602 | 344,480,056 | 338,424,100 |
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 Ever source Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.
Exhibit 99.3
November 3, 2021 2021 Third Quarter Results
Safe Harbor Statement 1 All per - share amounts in this news release 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 , b ut rather 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 a cco unting principles (non - GAAP) that is calculated by dividing the net income or loss attributable to common shareholders of each business by the weighted average diluted Evers our ce Energy common shares outstanding for the period. Earnings discussions also include non - GAAP financial measures referencing 2021 earnings and EPS excluding charges at CL &P related to a settlement agreement that included refunds to customers and funding of various customer assistance initiatives and a storm performance penalty imposed on CL&P by PURA and 2021 and 2020 earnings and EPS excluding certain acquisition and transition costs. Eversource Energy uses these non - GAAP financial measures to evaluat e and provide details of earnings results by business and to more fully compare and explain 2021 and 2020 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 the CL&P set tlement agreement, the storm performance penalty imposed on CL&P by PURA, and acquisition and transition costs are not indicative of Eversource Energy’s ongoing costs an d performance. Management views these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operatin g p erformance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, management believes that the non - GAAP prese ntation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in anal yzi ng historical and future performance of the business. These non - GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated 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. Factors that may cause actual results to d iffer materially from those included in the forward - looking statements include, but are not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions in the capital markets or other events that make our access to necessa ry capital more difficult or costly; the negative impacts of the novel coronavirus (COVID - 19) pandemic, including any new or emerging variants, on our customers, vendors, employe es, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or in abi lity to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage and d isr upt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bod ies ; substandard performance of third - party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business con dit ions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in , o ur water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and reg ula tions; 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 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 pr edict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue relia nce on the forward - looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource En erg y undertakes no obligation 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 unanticipated events.
Agenda Joe Nolan President & CEO Phil Lembo Executive Vice President and CFO ▪ Business Update ▪ Regulatory Developments ▪ Offshore Wind Update ▪ Q3 2021 Financial Results ▪ CT Settlement ▪ Natural Gas Prices ▪ Grid Modernization and AMI Update ▪ 2021 Financing Update 2
3 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 Construction Operation Plan Filing with BOEM Filed Oct 2018; FEIS issued Aug. 2021; Decision delayed, but permit still expected by mid - Jan 2022 Filed March 2020; review schedule was received on April 30, 2021; final approval expected in Q3 2023 Filed September 2020; BOEM approval expected in Q3 2023 State Permit NY State Article VII Permit Approved March 18, 2021 Filed December 2020, completed initial hearing and public administrative hearings in late March & April Filed December 2020, supplemented application on April 12 with route enhancements Current Commercial Ops Date Late 2023 In 2025 Late 2025 Price as of first day of commercial operation ~ $0.160/KWH for 90 MW ~ $0.086/KWH for 40 MW (avg. annual escalator: 2%) $0.09843/KWH for RI (no escalator) $0.09843/KWH for CT for 200 MW (no escalator) $0.0995/KWH for CT for 104 MW (no escalator) $0.11037/KWH (no escalator) Term 20 years 20 years 25 years Status of Contracts Increase in capacity to 130 MW from 90 MW approved 400 MW for RI approved 200 MW for CT approved 104 MW for CT approved Contract signed with NYSERDA in October 2019 Interconnection East Hampton, NY (LI) Davisville, RI Brookhaven, NY (LI)
4 3Q 2021 3Q 2020 3Q Change 9M 2021 9M 2020 9M Change $0.40 $0.36 $0.04 $1.20 $1.13 $0.07 0.62 0.60 0.02 1.31 1.33 (0.02) (0.06) (0.04) (0.02) 0.37 0.22 0.15 0.05 0.07 (0.02) 0.09 0.11 (0.02) 0.01 0.03 (0.02) (0.02) 0.01 (0.03) 1.02 1.02 0.00 2.95 2.80 0.15 (0.20) (0.01) (0.19) (0.30) (0.04) (0.26) $0.82 $1.01 $(0.19) $2.65 $2.76 $(0.11) Electric Transmission Electric Distribution (Non - GAAP) Natural Gas Distribution Parent & Other (Non - GAAP) Water Distribution Third Quarter and Nine Months 2021 EPS Results EPS, Ex. CT Settlement and Acquisition/Transition Costs (Non - GAAP) CT Settlement & Acquisition/Transition Costs Reported EPS (GAAP)
5 Well - Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2025 $2.28 $2.53 $2.65 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $3.81 - $3.93 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021E 2022E 2023E 2024E 2025E *Excludes merger and integration costs in 2012 - 2015, NPT charge in 2019, CT settlement charges in 2021, and Columbia Gas acquisi tion and transition costs in 2020 and 2021 Expected higher than 5% - 7% as larger offshore wind projects enter service *
6 Key Elements of Approved CT Settlement Customer Rate Benefits ▪ Interim Rate Reduction Bill Credit $65M (split between December 2021 and January 2022) ▪ Eversource to withdraw appeal of the $28.4M storm performance penalty (to be credited to customers from September 2021 – August 2022) ▪ Funding for Customer Assistance $10M Base Rate Freeze ▪ CL&P cannot file for new distribution rates until at least January 1, 2023 ▪ No base rate increase can occur before at least January 1, 2024 ▪ Decision constitutes statutorily required 4 - year rate review ▪ Authorized capital structure and ROE from the 2018 settlement remain in place ▪ Certain trackers continue to operate such as revenue decoupling, resilience investments, and energy efficiency program recoveries Governance and Other Commitments ▪ Hire a new Connecticut - based CL&P President solely dedicated to Connecticut ▪ Add three independent directors to CL&P Board ▪ Hire additional lineworkers ▪ Support two lineworker recruitment and training programs
Status Report - CT EV and AMI Filings 7 EV ▪ Compliance Filing submitted 10/15/21 ▪ Submitted program design documents including proposed budget and implementation plan ▪ PURA review and approval ▪ Draft Decision – 11/18/21 ▪ Final PURA Decision – 12/8/21 ▪ Program Launch – 1/1/22 AMI ▪ Technology will provide customer, operational and environmental benefits ▪ Current AMR metering technology nearing end of life cycle ▪ Goal – All customers on AMI by end of 2025 ▪ Capital investment of approximately $475 million ▪ Updated plan based on PURA straw proposal requirement due this month
Status Report - MA Grid Mod, AMI and EV Programs 8 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 - 2025 AMI ▪ Implementation during 2022 - 2027 – capital investment of approximately $575 million ▪ Technology will provide customer, operational and environmental benefits EV ▪ Phase II program ▪ Public & Workplace Segment – financial support for Electric Vehicle Supply Equipment at public and workplace sites ▪ Residential Segment – financial support for at - home charging enablement (properties w/ 1 - 4 units & multi - units of 5 or more) ▪ Fleet Segment ▪ Total Cost - $192 million; $68 million capital investment (included in current forecast) ▪ DPU Decision – Mid 2022
9 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 to NYMEX) ▪ Regional electric prices are impacted more by constrained New England Citygate prices Production Area/Hubs ~$3 - 5/ Dth N.E. Citygate ~$20 - 25/ Dth
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11 $994 $1,030 $964 $1,065 $915 $853 $761 $711 $1,145 $1,221 $1,189 $1,269 $1,309 $1,353 $1,289 $1,229 $404 $453 $545 $824 $925 $974 $937 $789 $102 $110 $127 $149 $143 $154 $162 $171 $185 $239 $239 $217 $249 $211 $194 $176 $2,830 $3,053 $3,064 $3,524 $3,541 $3,545 $3,343 $3,076 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2018A 2019A 2020A 2021E 2022E 2023E 2024E 2025E Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities $ In Millions Projected Capital Expenditures For Core Businesses $17 Billion 2021 - 2025
12 Key PURA Regulatory Dockets Description Docket Number Current Schedule Review of Tropical Storm Isaias 20 - 08 - 03/ 20 - 08 - 03RE01 Settlement approved 10/27/21 Annual review of multiple CL&P trackers (RAM) 21 - 01 - 03 Interim decision issued 4/28/21; New rates subject to true - up, 6/1/21; Phase II decision issued, 9/15/21; Rate adjustment, 10/1/21 New rate designs, including possible low - income, economic development rates, possible interim rate reduction 17 - 12 - 03RE11 Interim rate reduction settlement approved 10/27/21. Low - income and economic development rates inquiry pending AMI 17 - 12 - 03RE02 AMI proposals are due to PURA 11/5/21 Zero - emission vehicle deployment 17 - 12 - 03RE04 PURA issued Notice of Technical Meeting on 10/18/21; Written comments due 11/1/21; Final decision expected 12/8/21 Methodology for establishing residential bill credits for power outages longer than 96 hours 20 - 12 - 46 Final decision issued on 6/30/21 Performance Based Ratemaking design 21 - 05 - 15 Now open
13 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 global LNG prices at 10 - year highs as global LNG demand is very strong with prices in Europe and Asia over $30/ Dth