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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2020 (May 6, 2020)

 

Commission

File Number

Registrant; State of Incorporation

Address; and Telephone Number

I.R.S. Employer

Identification No.

     
1-5324

EVERSOURCE ENERGY

(a Massachusetts voluntary association)

300 Cadwell Drive

Springfield, Massachusetts 01104

Telephone: (800) 286-5000  

04-2147929
     
0-00404

THE CONNECTICUT LIGHT AND POWER COMPANY

(a Connecticut corporation)

107 Selden Street

Berlin, Connecticut 06037-1616

Telephone: (800) 286-5000  

06-0303850
     
1-02301

NSTAR ELECTRIC COMPANY

(a Massachusetts corporation)

800 Boylston Street

Boston, Massachusetts 02199

Telephone: (800) 286-5000

04-1278810
     
1-6392

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

(a New Hampshire corporation)

Energy Park

780 North Commercial Street

Manchester, New Hampshire 03101-1134

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 Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the 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

Symbol(s)

Name of each exchange on

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

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 ¨

 

 

 

 

 

Section 2       Financial Information

 

Item 2.02Results of Operations and Financial Conditions.

 

On May 6, 2020, Eversource Energy issued a news release announcing its unaudited results of operations for the three months ended March 31, 2020 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 7.01Regulation FD Disclosure.

 

On May 7, 2020, Eversource Energy will webcast a conference call with financial analysts during which senior management will discuss the company’s financial performance through the first quarter of 2020. 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 9.01Financial Statements and Exhibits.

 

Exhibit
Number

Description
99.1 News Release of Eversource Energy dated May 6, 2020.
99.2 Financial Report for the three months ended March 31, 2020.
99.3 May 7, 2020 presentation slides.
104 Cover Page lnteractive 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
  THE CONNECTICUT LIGHT AND POWER COMPANY
  NSTAR ELECTRIC COMPANY
  PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
  (Registrants)
   
   
   
May 6, 2020 By:    /s/ JAY S. BUTH
    Jay S. Buth
    Vice President, Controller and
    Chief Accounting Officer

 

 

 

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THE CONNECTICUT LIGHT_Soliciting material pursuant to ¨
THE CONNECTICUT LIGHT_Pre-commencement communications pursuant ¨
THE CONNECTICUT LIGHT_Pre-commencement communications pursuant ¨
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NSTAR ELECTRIC_Soliciting material pursuant to ¨
NSTAR ELECTRIC_Pre-commencement communications pursuant ¨
NSTAR ELECTRIC_Pre-commencement communications pursuant ¨
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Exhibit 99.1

 

56 Prospect St., Hartford, Connecticut 06103-2818

 

800 Boylston St., Boston, Massachusetts 02199

 

 

Eversource Energy Reports First Quarter 2020 Results

 

(HARTFORD, Conn. and BOSTON, Mass. – May 6, 2020) Eversource Energy (NYSE: ES) today reported first quarter 2020 earnings of $334.8 million, or $1.01 per share, compared with earnings of $308.7 million, or $0.97 per share, in the first quarter of 2019. Results for 2020 include an after-tax charge of $3.5 million, or $0.01 per share, associated with Eversource’s pending acquisition of the assets of Columbia Gas of Massachusetts. Absent that charge, Eversource Energy earned $338.3 million1, or $1.02 per share1, in the first quarter of 2020.

 

Also today, the Eversource Energy Board of Trustees declared a regular quarterly dividend of $0.5675 per share, payable June 30, 2020 to shareholders of record as of May 20, 2020. Additionally, the company today reaffirmed its 2020 earnings per share (EPS) guidance of $3.60 to $3.70 and its projected 5 to 7 percent long-term EPS growth rate.

 

“Our 8,300 employees do an outstanding job delivering safe and reliable service to our 4 million customers, despite the extreme challenges posed by the COVID-19 crisis,” said Jim Judge, Eversource chairman, president and chief executive officer. “Even when challenged by a late winter snowstorm in New Hampshire in March and an unusual coastal storm in Connecticut and Massachusetts in April, we safely and efficiently restored power to customers who are more dependent than ever on our critical service.”

 

Electric Distribution

 

Eversource Energy’s electric distribution segment earned $130.1 million in the first quarter of 2020, compared with earnings of $120.1 million in the first quarter of 2019. Improved results were due primarily to higher distribution revenues and lower storm restoration costs, partially offset by higher depreciation, interest and property tax expense.

 

Electric Transmission

 

Eversource Energy’s transmission segment earned $126.8 million in the first quarter of 2020, compared with earnings of $118.2 million in the first quarter of 2019. Higher transmission earnings were primarily due to additional electric transmission system investment.

 

Natural Gas Distribution

 

Eversource Energy’s natural gas distribution segment earned $84.4 million in the first quarter of 2020, compared with earnings of $76.5 million in the first quarter of 2019. Improved results were due primarily to higher revenues, partially offset by higher operation, maintenance and depreciation expense.
 

 

 

 

Water Distribution

 

Eversource Energy’s water distribution segment earned $2.1 million in the first quarter of 2020, compared with $0.9 million in the first quarter of 2019. The increase was due primarily to higher revenues.

 

Parent and other companies

 

Parent and other companies had a net loss of $5.1 million in the first quarter of 2020, compared with a loss of $7 million in the first quarter of 2019. The reduced loss was due in part to lower interest expense.

 

The following table reconciles consolidated earnings per share for the first quarters of 2020 and 2019:

 

      First Quarter 
2019  Reported EPS  $0.97 
   Higher electric and natural gas distribution revenues in 2020 offset by higher depreciation and property tax expense and $0.01/share dilution   0.02 
   Higher level of electric and natural gas distribution investment trackers in 2020 offset by $0.01/share dilution   0.02 
   Higher transmission earnings offset by $0.02/share dilution   0.01 
   Columbia Gas of MA acquisition charge   (0.01)
2020  Reported EPS  $1.01 

 

Financial results for the first quarters of 2020 and 2019 for Eversource Energy’s business segments and parent and other companies are noted below:

 

Three months ended:

 

(in millions, except EPS)  March 31, 2020   March 31, 2019   Increase/
(Decrease)
   2020 EPS1 
Electric Distribution  $130.1   $120.1   $10.0   $0.39 
Electric Transmission   126.8    118.2    8.6    0.38 
Natural Gas Distribution   84.4    76.5    7.9    0.25 
Water Distribution   2.1    0.9    1.2    0.01 
Parent and Other Companies   (5.1)   (7.0)   1.9    (0.01)
Columbia Gas of MA acquisition charge   (3.5)   ---    (3.5)   (0.01)
   Reported Earnings  $334.8   $308.7   $26.1   $1.01 

 

 

 

 

Eversource Energy has approximately 336 million common shares outstanding. It operates New England’s largest energy delivery system and serves approximately 4 million electric, natural gas and water utility 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 May 7, 2020, beginning at 9 a.m. Eastern Time.  The webcast and associated slides can be accessed through Eversource’s website at www.eversource.com.

 

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 allocated to such business, but rather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a non-GAAP (not determined using generally accepted accounting principles) measure 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 2020 earnings and EPS excluding certain acquisition costs and Q2 2019 earnings and EPS excluding the NPT impairment charge. 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 2020 and 2019 results without including these items. Management believes the acquisition costs and the NPT impairment charge are not indicative of Eversource Energy’s ongoing costs and performance.  Due to the nature and significance of these items on net income attributable to common shareholders, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in analyzing historical and future performance of the business. Non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated net income 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, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward-looking statements” within 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 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 included in the forward-looking statements.  Factors that may cause actual results to differ 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 necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID-19) pandemic on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, 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, physical 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, state and federal regulatory, public policy and taxing bodies, substandard performance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures, including the Columbia Gas of Massachusetts asset acquisition; changes in laws, regulations or regulatory policy, including compliance with 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 reports filed with the Securities and Exchange Commission (SEC). They are 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 and contain 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-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 Energy 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.

 

# # #

 

 

 

 

Exhibit 99.2

 

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(Thousands of Dollars)  As of March
31, 2020
   As of December
31, 2019
 
ASSETS          
Current Assets:          
Cash  $47,425   $15,432 
Receivables, Net (net of allowance for uncollectible accounts of $262,078 and $224,821 as of March 31, 2020 and December 31, 2019, respectively)   1,018,941    989,383 
Unbilled Revenues   155,224    181,006 
Fuel, Materials, Supplies and REC Inventory   286,498    235,471 
Regulatory Assets   785,125    651,112 
Prepayments and Other Current Assets   269,457    342,135 
Total Current Assets   2,562,670    2,414,539 
Property, Plant and Equipment, Net   28,041,356    27,585,470 
Deferred Debits and Other Assets:          
Regulatory Assets   4,778,321    4,863,639 
Goodwill   4,427,266    4,427,266 
Investments in Unconsolidated Affiliates   876,328    871,633 
Marketable Securities   418,715    449,130 
Other Long-Term Assets   544,330    512,238 
Total Deferred Debits and Other Assets   11,044,960    11,123,906 
Total Assets  $41,648,986   $41,123,915 
           
LIABILITIES AND CAPITALIZATION          
Current Liabilities:          
Notes Payable  $661,420   $889,084 
Long-Term Debt – Current Portion   532,440    327,411 
Rate Reduction Bonds – Current Portion   43,210    43,210 
Accounts Payable   914,333    1,147,872 
Renewable Portfolio Standards Compliance Obligations   192,660    160,149 
Regulatory Liabilities   439,859    361,152 
Other Current Liabilities   611,706    676,685 
Total Current Liabilities   3,395,628    3,605,563 
Deferred Credits and Other Liabilities:          
Accumulated Deferred Income Taxes   3,816,988    3,755,777 
Regulatory Liabilities   3,668,158    3,658,042 
Derivative Liabilities   342,990    338,710 
Asset Retirement Obligations   489,519    488,511 
Accrued Pension, SERP and PBOP   1,331,884    1,370,245 
Other Long-Term Liabilities   821,195    810,553 
Total Deferred Credits and Other Liabilities   10,470,734    10,421,838 
Long-Term Debt   13,898,581    13,770,828 
Rate Reduction Bonds   518,517    540,122 
Noncontrolling Interest – Preferred Stock of Subsidiaries   155,570    155,570 
Common Shareholders' Equity:          
Common Shares   1,759,092    1,729,292 
Capital Surplus, Paid In   7,479,689    7,087,768 
Retained Earnings   4,322,825    4,177,048 
Accumulated Other Comprehensive Loss   (63,111)   (65,059)
Treasury Stock   (288,539)   (299,055)
Common Shareholders' Equity   13,209,956    12,629,994 
Total Liabilities and Capitalization  $41,648,986   $41,123,915 

 

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 AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

   For the Three Months Ended March 31, 
(Thousands of Dollars, Except Share Information)  2020   2019 
Operating Revenues  $2,373,726   $2,415,792 
           
Operating Expenses:          
Purchased Power, Fuel and Transmission   876,570    974,882 
Operations and Maintenance   342,062    335,597 
Depreciation   236,211    214,948 
Amortization   49,776    70,961 
Energy Efficiency Programs   148,393    140,116 
Taxes Other Than Income Taxes   181,594    184,588 
Total Operating Expenses   1,834,606    1,921,092 
Operating Income   539,120    494,700 
Interest Expense   134,715    131,734 
Other Income, Net   24,104    30,985 
Income Before Income Tax Expense   428,509    393,951 
Income Tax Expense   91,876    83,393 
Net Income   336,633    310,558 
Net Income Attributable to Noncontrolling Interests   1,880    1,880 
Net Income Attributable to Common Shareholders  $334,753   $308,678 
           
Basic and Diluted Earnings Per Common Share  $1.01   $0.97 
           
Weighted Average Common Shares Outstanding:          
Basic   331,102,237    317,624,593 
Diluted   332,937,153    318,316,082 

 

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.

 

 

 

 

Exhibit 99.3

 

2020 First Quarter 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 allocat ed to such business, but rather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a non - GAAP (not determined using generall y accepted accounting principles) measure that is calculated by dividing the net income or loss attributable to common shareholders of each business by the wei ght ed average diluted Eversource Energy common shares outstanding for the period. Earnings discussions also include non - GAAP financial measures referencing 2020 earnin gs and EPS excluding certain acquisition costs and Q2 2019 earnings and EPS excluding the Northern Pass Transmission (NPT) impairment charge. Eversource Ene rgy uses these non - GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2020 an d 2019 results without including these items. Management believes the acquisition costs and the NPT impairment charge are not indicative of Eversource Energy’s ong oin g costs and performance. Due to the nature and significance of these items on net income attributable to common shareholders, management believes that the non - GAAP presentation 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. Non - GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated net income a ttributable 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 statem ents” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward - looking statements through the use of w ords or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Fo rward - looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward - looking statemen ts. Factors that may cause actual results to differ materially from those included in the forward - looking statements include, but are not limited to: cyberattacks or breache s, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions in the capit al 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 on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ab ility; ability or inability to commence and complete our major strategic development projects and opportunities, acts of war or terrorism, physical attacks or grid distu rba nces that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and fede ral 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 cu rre nt or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures, including the Columbia Gas of Mas sachusetts asset acquisition; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting standar ds 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, Eversour ce Energy 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.

 

 

Eversource Executing Its Business Plan and Serving 4 Million Customers During COVID - 19 Crisis ▪ Extensive efforts to protect employees, moving to remote working, hygienically cleaning facilities and fleet, promoting social distancing ▪ Essential field work continues with states exempting utility work from statewide business restrictions ▪ Since early March, approximately 4,000 employees normally working in ES facilities successfully redeployed to work remotely, including vast majority of customer service representatives ▪ Emergency response tested during March 23 - 24 snowstorm in New Hampshire that caused 56,000+ customer outages and intense nor’easter that battered our service territory on April 13 and caused 240,000 outages – Power back within 24 hours for vast majority ▪ Moratorium on customer shut - offs in all states, unless safety issue ▪ No significant supply issues ▪ Very positive feedback from customers and key policymakers 2

 

 

Eversource’s Total Shareholder Return Has Outperformed Significantly in Both the Short and Long Term 3 Total Shareholder Return YTD April 30, 2020 2019 3 - Year* 5 - Year* 10 - Year* Eversource - 4.6% 34.4% 68.7% 85.8% 356.7% EEI 40 - Company Index - 11.2% 25.8% 45.7% 64.4% 214.0% S&P 500 - 9.3% 31.5% 53.2% 73.9% 256.7% *3 - year, 5 - year, and 10 - year for periods ended 12/31/19

 

 

4 Current Rate Cases • PSNH filed a general rate case to raise annual base distribution rates by approximately $70 million on a permanent basis, effective 7/1/20, including an increase sought on a temporary basis • On 6/27/19, after settlement with Staff, the NHPUC allowed PSNH to raise annual distribution rates by $28 million on a temporary basis, effective 7/1/19, until decision on permanent rates is effective. Once permanent rates are approved, revenues will be reconciled back to 7/1/19. • NHPUC - reported Distribution ROE for 2019: 8.07% (9.67% authorized) • Staff recommendation: $24.4 million increase, 8.25% ROE and 50% equity ratio • Emergency order on 4/24/20 delays rate decision until as late as November 2020. Temporary rates to remain in effect until permanent rates are implemented PSNH • On 11/8/19, NSTAR Gas filed a rate request seeking a $38 million base rate adjustment, effective 10/1/20 • Request includes a proposed Performance Based Rate (PBR) mechanism (tied to a 5 - year stayout ) • PBR adjustment includes inflation plus approximately 1.3% adder • First general rate review since 2014 • Proposed authorized ROE: 10.45%; capital structure 54.85% equity; 45.15% long - term debt • AG recommendation: Between 8.25% and 8.50% • ROE reported to the DPU for 2019: 7.40% • Final decision expected by October 30, 2020; rates effective November 1, 2020 NSTAR Gas

 

 

5 Eversource to Acquire MA Natural Gas Assets of NiSource ▪ $1.1 billion in cash (~1x rate base) ▪ Financing to be consistent with existing ES capital structure ▪ No assumption of debt ▪ Expected to be accretive over first 12 months and incrementally accretive over following years ▪ DPU key approval required ▪ Closing expected by end of Q3 2020

 

 

Eversource Has Completed Several Financings This Year ▪ ES parent sold $350M of 30 - year notes in January ▪ NSTAR Electric sold $400M of 10 - year “Green Bonds” in March ▪ ES closed on the remaining nearly $420M of its June 2019 forward sale arrangement in March ▪ NSTAR Gas closes today on $190M of 5 - year and 30 - year bonds ▪ Remaining maturities for 2020 total only $25M ▪ Primary remaining financing activity is to raise $1.1 billion of equity and debt to acquire Columbia Gas of MA assets ▪ Commercial paper rates continue to trend favorably: – ES Parent weighted average Q1 2020 rate was 2.09% vs. 2.73% in Q1 2019 – NSTAR Electric weighted average Q1 2020 rate was 1.49% vs. 2.49% in Q1 2019 6

 

 

Q1 2020 Q1 2019 Change $0.39 $0.38 $0.01 0.38 0.37 0.01 0.25 0.24 0.01 0.01 0.00 0.01 (0.01) (0.02) 0.01 $1.02 $0.97 $0.05 (0.01) 0.00 (0.01) $1.01 $0.97 $0.04 Natural Gas Distribution Electric Transmission Electric Distribution Water Distribution Reported EPS (GAAP) 7 Q1 2020 vs. Q1 2019 Financial Results Parent & Other (Non - GAAP) EPS (Non - GAAP) exc. Acquisition Charge Acquisition Charge

 

 

2020 Guidance, Long - Term Growth Rate Intact Key 2020 Earnings Drivers EPS Range $3.60 - $3.70 • Distribution rate increases • Transmission rate base growth • Growth in distribution capital tracking programs • Higher depreciation and property taxes • Higher interest expense • Higher share count 8 Long - Term Growth 5% - 7%

 

 

South Fork Wind Revolution Wind Sunrise Wind Size 130 MW 704 MW 880 MW Price as of first day of commercial operation ~ $160.33/MWH for 90 MW ~ $86.25/MWH for 40 MW (avg. annual escalator: 2%) $98.43/MWH for RI (no escalator) CT pricing not disclosed $110.37/MWH (no escalator) Status of Contracts Negotiating agreement to increase original 90 MW to 130 MW. NY Comptroller and AG approval required 400 MW for RI approved 304 MW for CT approved Contract signed with NYSERDA in October 2019 Most Recent Projected In - Service Date End of 2022 End of 2023 End of 2024 Permitting Status BOEM review of Construction and Operations Plan (COP) application on “pause.” NY State hearings delayed 10 weeks until 9/30/20. In - service before 2023 very unlikely BOEM COP application filed on 3/13/20. Continuing to target end - of - 2023 in - service On - shore and off - shore survey work on hold in NY due to COVID - 19. Impact on 2020 COP filing and end - of - 2024 in - service better known by late summer 9 Expected Timeline For Eversource - Ørsted Projects

 

 

10 APPENDIX

 

 

11 $889 $994 $1,030 $910 $832 $855 $711 $668 $1,082 $1,145 $1,221 $1,347 $1,208 $1,162 $1,170 $1,234 $335 $404 $453 $470 $498 $501 $507 $537 $14 $102 $110 $124 $127 $134 $147 $153 $152 $185 $239 $220 $169 $165 $171 $171 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E Transmission Electric Distribution and MA Solar Natural Gas Distribution Water IT and Facilities $2,817 $2,834 $ In Millions Projected Capital Expenditures For Core Businesses $3,053 $2,830 $2,472 $14.2 Billion 2020 - 2024 $3,071 $2,706 $2,763

 

 

12 • New 13 - mile project between Portsmouth and Madbury , NH • Construction began in May 2019 • Projected completion: Q2 2020 • Total projected investment: $125 million • Investment through March 31, 2020: $103.7 million Seacoast Reliability Project • 25 of 27 projects now in service • Two projects under construction • Projected completion: Q4 2020 • Total projected investment: $350 million • Investment through March 31, 2020: $281.9 million Hartford - Area Transmission Projects Progress on Major Transmission Reliability Projects • All development and management plans approved by CSC • Projected completion: Fall 2020 • Total projected investment: $110 million • Investment through March 31, 2020: $69.0 million Greenwich Substation Project Eastern MA Transmission Projects • 22 projects in service; 5 under construction; 1 expected to enter construction in Q2 2021 • Approval of remaining 1 project received in Q4 2019; decision appealed January 2020 • Projected completion: 2023 • Total projected investment: approximately $750 million • Investment through March 31, 2020: $449.9 million

 

 

13 Key Facts About Columbia Gas of MA Number of customers ~330,000 Communities served 65 (~20 served by NSTAR Electric) Allowed ROE in most recent rate case 9.55% Average net income 2016 - 2017 $32 million (non - GAAP) Average cap ex 2016 - 2017 $124 million Owned LNG storage 1.83 bcf Customer growth rate (2018 - 2019) 1.4% Total miles of main ~5,000