8-K
NSTAR ELECTRIC CO (NSARO)
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): May 10, 2021 (May 5, 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****FinancialInformation
| Item 2.02 | Results of Operations and Financial Conditions. |
|---|
On May 10, 2021, Eversource Energy issued a news release announcing its unaudited results of operations for the three months ended March 31, 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 5 Corporate Governanceand Management
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements ofCertain Officers. |
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On May 5, 2021, the Board of Trustees (the “Board”) of Eversource Energy (the “Company”) announced the election of Joseph R. Nolan, Jr. as a Trustee. Mr. Nolan was also appointed by the Board to serve on the Executive Committee. Also on May 5, 2021, the Board appointed William C. Van Faasen as Lead Independent Trustee.
| Item 5.07 | Submission of Matters to a Vote of Security Holders. |
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(a) On May 5, 2021, the Company held its 2021 Annual Meeting.
(b) Shareholders voted on the proposals set forth below. For more information on the following proposals, see the Company’s Proxy Statement dated March 26, 2021. On March 10, 2021, the record date for the Annual Meeting, there were 343,321,049 common shares outstanding and entitled to vote. At the Annual Meeting, 298,454,997 common shares were represented, in person or by proxy, constituting a quorum.
(1) Election of Trustees. The shareholders elected each of the 11 nominees to the Board of Trustees for a one-year term by a majority of the outstanding common shares:
| Trustee | For | Against | Abstained | Broker<br> <br>Non-Votes | ||||
|---|---|---|---|---|---|---|---|---|
| Cotton M. Cleveland | 254,579,208 | 13,435,169 | 920,087 | 29,520,532 | ||||
| James S. DiStasio | 261,645,003 | 6,359,213 | 930,249 | 29,520,532 | ||||
| Francis A. Doyle | 261,646,506 | 6,288,702 | 999,257 | 29,520,532 | ||||
| Linda Dorcena Forry | 265,160,578 | 2,855,879 | 918,007 | 29,520,532 | ||||
| Gregory M. Jones | 265,138,684 | 2,752,195 | 1,043,586 | 29,520,532 | ||||
| James J. Judge | 258,931,029 | 9,301,539 | 701,896 | 29,520,532 | ||||
| John Y. Kim | 260,489,476 | 7,341,625 | 1,103,363 | 29,520,532 | ||||
| Kenneth R. Leibler | 258,581,816 | 9,438,447 | 914,201 | 29,520,532 | ||||
| David H. Long | 259,156,644 | 8,629,828 | 1,147,992 | 29,520,532 | ||||
| William C. Van Faasen | 256,216,042 | 11,787,217 | 931,205 | 29,520,532 | ||||
| Frederica M. Williams | 264,124,410 | 3,875,277 | 934,777 | 29,520,532 |
(2) The shareholders approved, on an advisory basis, the compensation of the Company’s 2020 Named Executive Officers:
| For | Against | Abstained | Broker Non-Votes | ||||
|---|---|---|---|---|---|---|---|
| 237,476,169 | 29,288,831 | 2,169,464 | 29,520,532 |
(3) The shareholders ratified the selection of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for 2021:
| For | Against | Abstained | Broker Non-Votes | ||||
|---|---|---|---|---|---|---|---|
| 291,852,233 | 5,466,806 | 1,135,957 | 0 |
Section 7****RegulationFD
| Item 7.01 | Regulation FD Disclosure. |
|---|
On May 10, 2021, 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 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****FinancialStatements and Exhibits
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| Exhibit<br><br> <br>Number | Description |
| --- | --- |
| 99.1 | News Release of Eversource Energy dated May 10, 2021. |
| 99.2 | Financial Report for the three months ended March 31, 2021. |
| 99.3 | May 10, 2021 presentation slides. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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) | ||
|---|---|---|
| May 10, 2021 | By: | /s/ JAY S. BUTH |
| --- | --- | --- |
| Jay S. Buth | ||
| Vice President, Controller and Chief Accounting Officer |
Exhibit 99.1
| 56 Prospect St., Hartford, Connecticut 06103-2818<br> <br><br>800 Boylston St., Boston, Massachusetts 02199 |
|---|
Eversource Energy Reports First Quarter 2021Results
HARTFORD,Conn. and BOSTON, Mass. (May 10, 2021) – Eversource Energy (NYSE: ES) today reported first quarter 2021 earnings of $366.1 million, or $1.06 per share, compared with earnings of $334.8 million, or $1.01 per share, in the first quarter of 2020. Results for the first quarters of both 2021 and 2020 include after-tax costs associated with Eversource’s October 2020 acquisition of the assets of Columbia Gas of Massachusetts. Those costs were $6.2 million, or $0.02 per share, in 2021 and $3.5 million, or $0.01 per share, in 2020.
Additionally, 2021 results reflect a charge of $30 million, or $0.07 per share after-tax, associated with customer credits and a related assessment that Connecticut utility regulators announced on May 6, 2021 for The Connecticut Light and Power Company (CL&P). The charge relates to CL&P’s performance restoring power following the catastrophic impact of Tropical Storm Isaias in August 2020. Connecticut Public Utilities Regulatory Authority hearings on the announced credits and assessment are expected in June with a final decision scheduled for mid-July.
“Operationally, we recorded a very solid start to 2021, serving our 4.3 million customers safely and reliably with professionalism and passion, despite the challenges from a continued pandemic and increased storm activity. We also continue to make substantial progress in our efforts to be carbon neutral by 2030 and to help our states and communities achieve their very ambitious long-term carbon reduction targets.” said Joe Nolan, Eversource Energy’s president and chief executive officer. “As we move ahead, we remain laser-focused on meeting and exceeding our customers’ high expectations for customer service, addressing the increasing frequency and intensity of damaging storms across our service territory, and resolving any regulatory dockets in a constructive and responsive manner.”
Electric Distribution
Eversource Energy’s electric distribution segment earned $93.2 million in the first quarter of 2021, compared with earnings of $130.1 million in the first quarter of 2020. Lower results were due primarily to the customer credits noted above. Results were also negatively affected by higher storm-related expense, as well as higher depreciation and property tax expense in 2021, partially offset by higher revenues.
Electric Transmission
Eversource Energy’s transmission segment earned $135.4 million in the first quarter of 2021, compared with earnings of $126.8 million in the first quarter of 2020. Higher transmission earnings were primarily due to additional electric transmission system investment.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $147.6 million in the first quarter of 2021, compared with earnings of $85.9 million in the first quarter of 2020. Improved results were due to the addition of Eversource Gas Company of Massachusetts (EGMA), which now holds the natural gas distribution assets acquired from Columbia Gas of Massachusetts. Like its counterpart Eversource natural gas distribution utilities, NSTAR Gas and Yankee Gas, EGMA is expected to earn essentially all of its net income in the heating months of the year.
Water Distribution
Eversource Energy’s water distribution segment earned $3.6 million in the first quarter of 2021, compared with earnings of $2.1 million in the first quarter of 2020. The increase was due primarily to lower interest expense and a lower effective tax rate.
Parent and other companies
Parent and other companies had a net loss of $13.7 million in the first quarter of 2021, compared with a net loss of $10.1 million in the first quarter of 2020. The increased loss was due primarily to higher costs related to the asset acquisition noted above and a higher effective tax rate.
The company today reaffirmed its projected long-term EPS growth rate in the upper half of the range of 5 to 7 percent, using its non-GAAP 2020 earnings of $3.64 per share as a base.
The company said that it now estimates it will earn toward the lower end of its previously announced 2021 recurring EPS guidance of $3.81 to $3.93 per share. That estimate includes the $0.07 per share regulatory charge noted above, but not the 2021 transition costs associated with EGMA.
The following table reconciles consolidated earnings per share for the first quarters of 2021 and 2020:
| First Quarter | ||||
|---|---|---|---|---|
| 2020 | Reported EPS | $ | 1.01 | |
| Addition of Eversource Gas of MA in 2021 | 0.14 | |||
| Increased revenues at NSTAR Gas and Yankee Gas in 2021 offset by higher O&M and depreciation and property tax <br>expense | 0.03 | |||
| Higher level of transmission investment in 2021, offset by dilution | 0.01 | |||
| Higher electric distribution storm-related expense in 2021 | (0.04 | ) | ||
| All other | (0.01 | ) | ||
| Additional transition/acquisition charges in 2021 | (0.01 | ) | ||
| Proposed customer credits related to Tropical Storm Isaias | (0.07 | ) | ||
| 2021 | Reported EPS | $ | 1.06 |
Financial results for the first quarters of 2021 and 2020 for Eversource Energy’s business segments and parent and other companies are noted below:
Three months ended:
| (in millions, exceptEPS) | March 31, 2021 | March 31, 2020 | Increase/ (Decrease) | 2021 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Distribution | $ | 93.2 | $ | 130.1 | ($ | 36.9 | ) | $ | 0.27 | |||
| Electric Transmission | 135.4 | 126.8 | 8.6 | 0.39 | ||||||||
| Natural Gas Distribution | 147.6 | 85.9 | 61.7 | 0.43 | ||||||||
| Water Distribution | 3.6 | 2.1 | 1.5 | 0.01 | ||||||||
| Parent and Other Companies^1^ | (7.5 | ) | (6.6 | ) | (0.9 | ) | (0.02 | ) | ||||
| Columbia Gas of MA acquisition and transition charges | (6.2 | ) | (3.5 | ) | (2.7 | ) | (0.02 | ) | ||||
| Reported Earnings | $ | 366.1 | $ | 334.8 | $ | 31.3 | $ | 1.06 |
Eversource Energy has approximately 343 million common shares outstanding. It operates New England’s largest energy delivery system and serves approximately 4.3 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 10, 2021, beginning at 9 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource’s website at www.eversource.com. |
|---|
*^1^*Allper-share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly tradedare common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the assetsand liabilities allocated to such business, but rather represent a direct interest in Eversource Energy's assets and liabilities asa whole. EPS by business is a non-GAAP (not determined using generally accepted accounting principles) measure that is calculated bydividing the net income or loss attributable to common shareholders of each business by the weighted average diluted EversourceEnergy common shares outstanding for the period. Earnings discussions also include a non-GAAP financial measure referencing 2021 and2020 earnings and EPS excluding certain acquisition and transition costs. Eversource Energy uses these non-GAAP financial measuresto evaluate and provide details of earnings results by business and to more fully compare and explain 2021 and 2020 results withoutincluding these items. Management believes the acquisition and transition costs are not indicative of Eversource Energy’songoing costs and performance. Due to the nature and significance of the effect of these items on net income attributable tocommon shareholders and EPS, management believes that the non-GAAP presentation is a more meaningful representation of EversourceEnergy’s financial performance and provides additional and useful information to readers in analyzing historical and futureperformance of the business. Non-GAAP financial measures should not be considered as alternatives to Eversource Energy’sconsolidated net income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of EversourceEnergy’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. 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 on ourcustomers, 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, naturalgas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bodies, substandardperformance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climatechange; changes in business conditions, which could include disruptive technology or development of alternative energy sources relatedto our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capitalexpenditures, including the Columbia Gas of Massachusetts asset acquisition; changes in laws, regulations or regulatory policy, includingcompliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of ratingagencies; 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.
#
Exhibit 99.2
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| For the Three <br><br>Months Ended <br><br>March 31, | ||||
|---|---|---|---|---|
| (Thousands of Dollars, Except Share Information) | 2021 | 2020 | ||
| Operating Revenues | $ | 2,825,840 | $ | 2,373,726 |
| Operating Expenses: | ||||
| Purchased Power, Fuel and Transmission | 998,491 | 876,570 | ||
| Operations and Maintenance | 465,542 | 342,062 | ||
| Depreciation | 270,704 | 236,211 | ||
| Amortization | 108,013 | 49,776 | ||
| Energy Efficiency Programs | 188,063 | 148,393 | ||
| Taxes Other Than Income Taxes | 209,459 | 181,594 | ||
| Total Operating Expenses | 2,240,272 | 1,834,606 | ||
| Operating Income | 585,568 | 539,120 | ||
| Interest Expense | 137,766 | 134,715 | ||
| Other Income, Net | 34,201 | 24,104 | ||
| Income Before Income Tax Expense | 482,003 | 428,509 | ||
| Income Tax Expense | 113,980 | 91,876 | ||
| Net Income | 368,023 | 336,633 | ||
| Net Income Attributable to Noncontrolling Interests | 1,880 | 1,880 | ||
| Net Income Attributable to Common Shareholders | $ | 366,143 | $ | 334,753 |
| Basic Earnings Per Common Share | $ | 1.07 | $ | 1.01 |
| Diluted Earnings Per Common Share | $ | 1.06 | $ | 1.01 |
| Weighted Average Common Shares Outstanding: | ||||
| Basic | 343,678,243 | 331,102,237 | ||
| Diluted | 344,334,689 | 332,937,153 |
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
May 10, 2021 2021 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 of such bu siness, 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 accepte d accounting principles) financial 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 a non - GAAP financial measure referencing 2021 and 2 020 earnings and EPS excluding certain acquisition and transition costs. Eversource Energy uses these non - GAAP financial measures to evaluate and provide deta ils of earnings results by business and to more fully compare and explain 2021 and 2020 results without including these items. Management believes the acquisition a nd transition costs 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 incom e attributable to common shareholders and EPS, 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 accordan ce 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; changes in laws, regulations o r r egulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating ag enc ies; 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.
The Demand for Offshore Wind in the Northeast Continues to Outstrip the Available Supply 2 4.7 GW Remaining 4.0 GW Remaining 1.2 GW Remaining 0.6 GW Remaining 0 5 10 15 NY MA CT RI GW State Offshore Wind Procurement Authority Authorized Awarded 10.5 GWs Remaining
Expected Timeline for Eversource-Ørsted ProjectsSizeConstruction Operation Plan Filing with BOEMState PermitMost Recent Commercial Ops DatePrice as of first day of commercial operationTermStatus of ContractsSouth Fork Wind 132 MW Filed Oct 2018; DEIS issued Jan. 8, 2021; Decision in Jan 2022NY State Article VII Permit Approved March 18, 2021Late 2023~ $0.160/KWH for 90 MW ~ $0.086/KWH for 42 MW (avg. annual escalator: 2%) 20 yearsIncrease in capacity to 132 MW from 90 MW approvedRevolution Wind 704 MW Filed March 2020; review schedule was received on April 30, 2021; final approval expected in Q3 2023 Filed December 2020, completed initial hearing and public administrative hearings in late March & April Unlikely to achieve end of 2023 in-service date$0.098425/KWH for RI (no escalator) CT pricing not disclosed20 years400 MW for RI approved 200 MW for CT approved 104 MW for CT approvedSunrise Wind 924 MWSeptember 2020; review schedule expected in 2021Filed December 2020, supplemented application on April 12 with route enhancements Unlikely to achieve end of 2024 in-service date$0.11037/KWH (no escalator) 25 years Contract signed with NYSERDA in October 2019InterconnectionEast Hampton, NY (LI)Davisville, RIBrookhaven, NY (LI)3
Q1 2021 Q1 2020 Change $0.27 $0.39 (0.12) 0.39 0.38 0.01 0.43 0.26 0.17 0.01 0.01 0.00 (0.02) (0.02) 0.00 $1.08 $1.02 $0.06 (0.02) (0.01) (0.01) $1.06 $1.01 $0.05 Natural Gas Distribution Electric Transmission Electric Distribution Water Distribution Reported EPS (GAAP) 4 Q1 2021 vs. Q1 2020 Financial Results Parent & Other (Non - GAAP) EPS (Non - GAAP) exc. Acquisition/Transition Costs Acquisition/Transition Costs
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, and Columbia Gas acquisition and transition costs in 20 20 and 2021 Expected higher than 5% - 7% as larger offshore wind projects enter service * Now projecting lower end of 2021 earnings guidance, including $0.07 of CL&P of Storm Isaias credits
6 APPENDIX
7 $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
8 Description Docket Number Current Schedule Review of Tropical Storm Isaias 20 - 08 - 03 Final decision issued 4/28/21. Notice of Violation phase commenced on 5/6/21; Final decision (tentative) on 7/14/21 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, 9/15/21; Potential rate adjustment, 10/1/21 New rate designs, including possible low - income, economic development rates, possible interim rate reduction 17 - 12 - 03RE11 Phase Ia decision (Rate 30) due 6/23/21; Phase IIa decision on interim rate decrease topics due 9/15/2021; Phase IIb (economic development/low - income rates) discovery to end no earlier than 7/9/2021 AMI 17 - 12 - 03RE02 Early stages in process Zero - emission vehicle deployment 17 - 12 - 03RE04 Draft decision expected in Q2 2021 Methodology for establishing residential bill credits for power outages longer than 96 hrs. 20 - 12 - 46 Draft decision, 6/9/21; Final decision, 6/23/21 Performance Based Ratemaking design N/A To be opened by 6/1/21 Key PURA Regulatory Dockets
10 FERC Transmission New England ROE Update • Current base: 10.57%; Cap: 11.74% (2014 Opinion 531A) • October 2018 FERC Order in New England ROE cases proposed a new methodology to address issues raised by Court in vacating Opinion 531A (New England ROE Complaint I) • This new methodology provided a path forward to resolve 2011, 2012, 2014 and 2016 complaints against New England transmission ROEs; timing of decision remains unclear • Original FERC - proposed new methodology averaged DCF, CAPM, risk premium, expected earnings • Illustrative base: 10.41%; Cap: 13.08% (October 2018 proposed new method) • FERC changed methodology in revised May 2020 MISO TO Order and applied only DCF, CAPM and risk premium methodologies. No date given for New England ROE decision • In April 2021, FERC voted 3 - 2 to issue a revised NOPR asking for comments on several items related to incentives, including limiting 50 - basis - point RTO adder to 3 years • ES incentives now capped at 11.74%, 117 bps above 10.57% base; FERC has approved 100 - 150 basis point incentives for multiple projects that were built between 2004 and 2012, but their all - in returns have been reduced since 2014 by the cap