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): November 3, 2020 (November 3, 2020)
| 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 | 2020-11-03 |
| 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 | 2020-11-03 |
| 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 | 2020-11-03 |
| Amendment Flag | false |
| Public Service Company_Soliciting material pursuant to | ¨ |
| Public Service Company_Pre-commencement communications pursuant | ¨ |
| Public Service Company_Pre-commencement communications pursuant | ¨ |
| Section 2 | Financial Information |
| --- | --- |
| Item 2.02 | Results of Operations and Financial Conditions. |
|---|
On November 3, 2020, Eversource Energy issued a news release announcing its unaudited results of operations for the third quarter and nine months ended September 30, 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 |
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| Item 7.01 | Regulation FD Disclosure. |
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On November 4, 2020, 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 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 9.01 | Financial Statements and Exhibits. |
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| Exhibit <br><br>Number | Description |
|---|---|
| 99.1 | News Release of Eversource Energy dated November 3,<br>2020. |
| 99.2 | Financial Report for the three and nine months ended September 30, 2020. |
| 99.3 | November 4, 2020 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 THE CONNECTICUT LIGHT AND POWER COMPANY NSTAR ELECTRIC COMPANY PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE (Registrants) | ||
|---|---|---|
| November 3, 2020 | By: | /s/ Jay S. Buth |
| Jay S. Buth | ||
| Vice President, Controller and Chief Accounting Officer |
Exhibit 99.1
Eversource Energy Reports Third QuarterResults
(HARTFORD, Conn. and BOSTON, Mass. – November 3,2020) Eversource Energy (NYSE: ES) today reported earnings of $346.3 million, or $1.01 per share, in the third quarter of 2020, compared with earnings of $318.9 million, or $0.98 per share, in the third quarter of 2019. In the first nine months of 2020, Eversource Energy earned $933.2 million, or $2.76 per share, compared with earnings of $659 million, or $2.05 per share, in the first nine months of 2019.
Results for the first nine months of 2019 included an after-tax impairment charge of $204.4 million, or $0.64 per share, related to Eversource Energy’s investment in the Northern Pass Transmission (NPT) project. Excluding that impairment charge, Eversource Energy earned $863.4 million, or $2.69 per share, in the first nine months of 2019.
Eversource Energy also today reaffirmed both its 2020 earnings per share (EPS) projection of $3.60 to $3.70 per share, excluding costs related to the recently completed acquisition of assets of Columbia Gas of Massachusetts, and its long-term EPS growth rate from its core regulated businesses.
“The past few months have been one of the most challenging periods we have ever experienced as a result of extreme late summer weather compounded by drought conditions. Beginning with Tropical Storm Isaias and continuing with tornadoes in south central Connecticut and a damaging wind storm in early October, our crews have been working tirelessly and safely, ensuring that our 4.3 million customers receive the high level of service they expect and deserve,” said Jim Judge, Eversource chairman, president and chief executive officer. “I cannot thank our Eversource first responders enough for their outstanding work throughout this pandemic-challenged year. I’m also grateful to our customers for their patience and understanding while our line crews and hundreds of other Eversource employees have worked around the clock on their behalf.”
Electric Distribution
Eversource Energy’s electric distribution segment earned $205.5 million in the third quarter of 2020 and $450.6 million in the first nine months of 2020, compared with earnings of $197.3 million in the third quarter of 2019 and $422.7 million in the first nine months of 2019. Third quarter and year-to-date results reflect higher revenues, offset in part by higher operation and maintenance expense, due largely to higher storm restoration costs, as well as higher depreciation and interest.
Electric Transmission
Eversource Energy’s transmission segment earned $125.6 million in the third quarter of 2020 and $381.8 million in the first nine months of 2020, compared with earnings of $107.5 million in the third quarter of 2019 and earnings of $342.8 million^1^ in the first nine months of 2019, excluding the NPT impairment charge noted above. Aside from the NPT impairment charge, transmission segment results improved due to a higher level of investment in Eversource’s electric transmission system.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment lost $14 million in the third quarter of 2020 and earned $73.8 million in the first nine months of 2020, compared with a $17.1 million loss in the third quarter of 2019 and earnings of $57.6 million in the first nine months of 2019. Improved results were due to higher revenues, partially offset by higher depreciation, operation and maintenance and property tax expense.
Water Distribution
Eversource’s Aquarion Water Company subsidiary earned $23.1 million in the third quarter of 2020 and $35.6 million in the first nine months of 2020, compared with earnings of $17.5 million in the third quarter of 2019 and $26.3 million in the first nine months of 2019. Improved results were primarily due to gains on the sale of the Hingham, Massachusetts water distribution system and on a sale of land and lower interest expense.
Eversource Parent and Other Companies
Eversource Energy parent and other companies earned $6.1 million in the third quarter of 2020 and lost $8.6 million in the first nine months of 2020, compared with earnings of $13.7 million in the third quarter of 2019 and $14 million in the first nine months of 2019. The 2020 results include after-tax charges of $5.3 million in the third quarter and $12.8 million in the first nine months related to Eversource Energy’s acquisition of Columbia Gas of Massachusetts’ assets. Excluding Columbia Gas impacts, lower nine months 2020 results reflect lower mark-to-market earnings on an unregulated clean energy investment.
The following table reconciles 2020 and 2019 third quarter and first nine months earnings per share:
| Third Quarter | First Nine Months | ||||||
|---|---|---|---|---|---|---|---|
| 2019 | Reported EPS | $ | 0.98 | $ | 2.05 | ||
| Higher electric distribution revenues in 2020, offset by higher O&M, depreciation, interest expense and dilution | (0.01 | ) | 0.01 | ||||
| Higher electric transmission earnings in 2020, excluding NPT impairment, offset by dilution | 0.03 | 0.06 | |||||
| Higher natural gas revenues in 2020, offset by higher depreciation, O&M, property tax expense and dilution | 0.01 | 0.04 | |||||
| Higher water earnings in 2020, offset by dilution | 0.01 | 0.03 | |||||
| Lower earnings in 2020 related to clean energy fund investment and all Other | 0.00 | (0.03 | ) | ||||
| Absence of NPT impairment charge | 0.00 | 0.64 | |||||
| Charges related to Columbia Gas of MA asset purchase * | (0.01 | ) | (0.04 | ) | |||
| 2020 | Reported EPS | $ | 1.01 | $ | 2.76 |
* Results for the third quarter and first nine months of 2020 included charges of $5.3 million and $12.8 million, respectively, related to Eversource’s recently completed acquisition of the assets of Columbia Gas of Massachusetts. Absent those charges, Eversource earned $351.6 million^1^, or $1.02 per share, in the third quarter of 2020 and $946 million^1^, or $2.80 per share, in the first nine months of 2020.
Financial results by segment for the third quarter and first nine months of 2020 and 2019 are noted below:
Three months ended:
| (in millions, except EPS) | September 30, 2020 | September 30,<br><br>2019 | Increase/ (Decrease) | **** 2020 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Distribution | $ | 205.5 | $ | 197.3 | $ | 8.2 | $ | 0.60 | ||||
| Electric Transmission | 125.6 | 107.5 | 18.1 | 0.36 | ||||||||
| Natural Gas Distribution | (14.0 | ) | (17.1 | ) | 3.1 | (0.04 | ) | |||||
| Water Distribution | 23.1 | 17.5 | 5.6 | 0.07 | ||||||||
| Eversource Parent and Other Companies^1^ | 11.4 | 13.7 | (2.3 | ) | 0.03 | |||||||
| Columbia Gas of MA asset acquisition costs | (5.3 | ) | 0.0 | (5.3 | ) | (0.01 | ) | |||||
| Reported Earnings | $ | 346.3 | $ | 318.9 | $ | 27.4 | $ | 1.01 |
Nine months ended:
| (in millions, except EPS) | September 30, 2020 | September 30, 2019 | Increase/ (Decrease) | **** 2020 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Distribution | $ | 450.6 | $ | 422.7 | $ | 27.9 | $ | 1.33 | ||||
| Electric Transmission, ex NPT charge^1^ | 381.8 | 342.8 | 39.0 | 1.13 | ||||||||
| Natural Gas Distribution | 73.8 | 57.6 | 16.2 | 0.22 | ||||||||
| Water Distribution | 35.6 | 26.3 | 9.3 | 0.11 | ||||||||
| Eversource Parent and Other Companies^1^ | 4.2 | 14.0 | (9.8 | ) | 0.01 | |||||||
| NPT impairment charge | 0.0 | (204.4 | ) | 204.4 | 0.00 | |||||||
| Columbia Gas of MA asset acquisition costs | (12.8 | ) | 0.0 | (12.8 | ) | (0.04 | ) | |||||
| Reported Earnings | $ | 933.2 | $ | 659.0 | $ | 274.2 | $ | 2.76 |
Eversource Energy has approximately 343 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 4, 2020, 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.The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of 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) financial measure that is calculated by dividing the net incomeor loss attributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstandingfor the period. Earnings discussions also include non-GAAP financial measures referencing 2020 earnings and EPS excluding certainacquisition costs and second quarter 2019 earnings and EPS excluding the NPT impairment charge. Eversource Energy uses these non-GAAPfinancial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2020 and2019 results without including these items. Management believes the acquisition costs and the NPT impairment charge are not indicativeof Eversource Energy’s ongoing costs and performance. Due to the nature and significance of these items on net incomeattributable to common shareholders, management believes that the non-GAAP presentation is a more meaningful representation ofEversource Energy’s financial performance and provides additional and useful information to readers in analyzing historicaland future performance 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 growthand other statements that are not historical facts. These statements are “forward-looking statements” within the meaningof the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statementsthrough 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 oroutcomes to differ materially from those included in the forward-looking statements. Factors that may cause actual resultsto 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 informationof our customers; disruptions in the capital markets or other events that make our access to necessary capital more difficult orcostly; the negative impacts of the novel coronavirus (COVID-19) pandemic on our customers, vendors, employees, regulators, andoperations; 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 waterdistribution 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 toclimate change; changes in business conditions, which could include disruptive technology or development of alternative energysources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levelsor timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental lawsand regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other presentlyunknown or unforeseen factors.
Other risk factors are detailed in Eversource Energy’sreports filed with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’swebsite at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and containuncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You shouldnot 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 statementor statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence ofunanticipated 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) | 2020 | 2019 | 2020 | 2019 | ||||
| Operating Revenues | $ | 2,343,642 | $ | 2,175,797 | $ | 6,670,497 | $ | 6,476,084 |
| Operating Expenses: | ||||||||
| Purchased Power, Fuel and Transmission | 806,254 | 730,255 | 2,312,957 | 2,326,041 | ||||
| Operations and Maintenance | 332,031 | 331,054 | 1,006,148 | 994,660 | ||||
| Depreciation | 244,453 | 222,599 | 721,179 | 656,632 | ||||
| Amortization | 57,515 | 73,854 | 130,687 | 183,760 | ||||
| Energy Efficiency Programs | 145,047 | 136,832 | 408,794 | 382,785 | ||||
| Taxes Other Than Income Taxes | 197,112 | 171,965 | 556,726 | 537,636 | ||||
| Impairment of Northern Pass Transmission | — | — | — | 239,644 | ||||
| Total Operating Expenses | 1,782,412 | 1,666,559 | 5,136,491 | 5,321,158 | ||||
| Operating Income | 561,230 | 509,238 | 1,534,006 | 1,154,926 | ||||
| Interest Expense | 134,066 | 135,216 | 403,067 | 399,654 | ||||
| Other Income, Net | 29,218 | 26,968 | 83,565 | 103,818 | ||||
| Income Before Income Tax Expense | 456,382 | 400,990 | 1,214,504 | 859,090 | ||||
| Income Tax Expense | 108,242 | 80,226 | 275,621 | 194,435 | ||||
| Net Income | 348,140 | 320,764 | 938,883 | 664,655 | ||||
| Net Income Attributable to Noncontrolling Interests | 1,880 | 1,880 | 5,639 | 5,639 | ||||
| Net Income Attributable to Common Shareholders | $ | 346,260 | $ | 318,884 | $ | 933,244 | $ | 659,016 |
| Basic Earnings Per Common Share | $ | 1.01 | $ | 0.98 | $ | 2.77 | $ | 2.06 |
| Diluted Earnings Per Common Share | $ | 1.01 | $ | 0.98 | $ | 2.76 | $ | 2.05 |
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic | 343,076,614 | 324,037,169 | 337,375,172 | 320,442,253 | ||||
| Diluted | 343,773,602 | 326,008,342 | 338,424,100 | 321,570,926 |
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 Third Quarter Results November 4, 2020
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 non - GAAP financial measures referencing 2020 earnin gs and EPS excluding certain acquisition costs and second quarter 2019 earnings and EPS excluding the NPT impairment charge. Eversource Energy uses these no n - GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2020 and 2019 results with out including these items. Management believes the acquisition costs and the NPT impairment charge are not indicative of Eversource Energy’s ongoing costs and perf orm ance. Due to the nature and significance of these items on net income attributable to common shareholders, management believes that the non - GAAP presentatio n 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, 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.
2 3Q 2020 3Q 2019 3Q Change 9M 2020 9M 2019 9M Change $0.60 $0.61 ($0.01) $1.33 $1.32 $0.01 0.36 0.33 0.03 1.13 1.07 0.06 (0.04) (0.05) 0.01 0.22 0.18 0.04 0.07 0.06 0.01 0.11 0.08 0.03 0.03 0.03 0.00 0.01 0.04 (0.03) 1.02 0.98 0.04 2.80 2.69 0.11 0.00 0.00 0.00 0.00 (0.64) 0.64 (0.01) 0.00 (0.01) (0.04) 0.00 (0.04) $1.01 $0.98 $0.03 $2.76 $2.05 $0.71 Electric Distribution Electric Transmission Ex. NPT Impairment (Non - GAAP) Natural Gas Distribution Parent & Other (Non - GAAP) Water Distribution Third Quarter and First Nine Months EPS Results EPS, Ex. NPT Impairment, Columbia Gas Asset Acquisition Costs (Non - GAAP) Columbia Gas Asset Acquisition Costs Reported EPS (GAAP) NPT Impairment
2020 Guidance, Long - Term Growth Rate Intact Key 2020 Earnings Drivers EPS Range $3.60 - $3.70* • Distribution rate adjustments • Transmission capital investments • Distribution capital tracking programs • Higher depreciation and property taxes • Higher interest expense • Higher share count 3 Long - Term Growth 5% - 7% *Excludes costs associated with the acquisition of assets of Columbia Gas of Massachusetts
Historic Storm Comparison Damage comparison of Tropical Storm Isaias, Superstorm Sandy, the October ’11 Nor’easter, and Superstorm Sandy. Measured using standard major exclusion day metric from date of the event to the last major exclusion day. The duration of time from the event to substantial completion at 1% or less in every municipality was 7.5 days. 4 Tropical Storm Irene. Damage comparison of Tropical Storm Isaias, Superstorm Sandy, the October 2011 Nor’easter, and Tropical Storm Irene October 2011
5 2020 Rate Cases • PSNH filed a general rate case to raise annual base distribution rates by approximately $70 million, including an increase sought on a temporary basis • On 6/27/19, 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. • Settlement with all rate case parties filed with NHPUC on 10/9/20. Key elements include: • Annualized increase of $45 million, including $28 million temporary increase that was effective 7/1/19 • 9.3% ROE; 54.4% equity; 45.6% debt in capital structure • Additional increases allowed to reflect capital additions in 2019 - 2021 • NHPUC approval sought by 11/28/20 • New rates effective 1/1/21 PSNH • On 11/8/19, NSTAR Gas filed a rate request seeking a $38 million base rate adjustment, effective 10/1/20 • On 10/30/20, the DPU issued a decision to allow a $23 million annualized increase, effective 11/1/20 and to be implemented in bills beginning 12/1/20 • 9.9 percent ROE • 54.77 percent equity in capital structure • Performance - based ratemaking approved for a 10 - year term • Inflation plus 1.03 percent • Recent capital additions approved • Geothermal pilot approved • Earnings sharing with 75 percent to customer above 10.9 percent ROE NSTAR Gas
6 Eversource Has Acquired MA Natural Gas Assets of NiSource ▪ Transaction closed on October 9 ▪ All - cash $1.1 billion transaction excluding working capital adjustments (1.1x rate base) ▪ Financing consistent with existing ES capital structure ▪ Equity sold in June; debt in August ▪ No assumption of debt ▪ Expected to be accretive over first 12 months and incrementally accretive over following years Eversource Gas of Massachusetts NSTAR Gas and Yankee Gas
Key Elements of Settlement Approved by MA DPU on October 7 ▪ Joint settlement with MA AG, DOER, NiSource and low - income network ▪ Eight - year rate plan ▪ Day One rate base of approximately $1 billion ▪ Authorized ROE: 9.7% ▪ Authorized equity in capital structure of 53.25% ▪ General rate increases of $13 million on 11/1/21 and $10 million on 11/1/22 ▪ GSEP - related rate changes continue annually (pipe replacement rate under GSEP to continue at 45 miles/year) ▪ Report on status of former Columbia Gas system due to the DPU by 9/1/21 with proposed work plan ▪ Additional base rate adjustments tied to non - GSEP investments on 11/1/24 and 11/1/27 ▪ NiSource paid $56 million in lieu of penalties: – $41 million to establish a Merrimack Valley Renewal Fund – $15 million for Arrearage Forgiveness 7
Expected Timeline For Eversource - Ørsted Projects 8 Size: • 130 MW Year 1 Price: • ~ $160.33/MWH for 90 MW • ~ $86.25/MWH for 40 MW • (avg. annual escalator: 2%) Contract Status: • Negotiating agreement to increase original 90 MW to 130 MW. NY Comptroller and AG approval required Most Recent In - Service Date: • End of 2023 Permitting Update: • BOEM released a review schedule in late August. COP decision due in January 2022 Size: • 704 MW Year 1 Price: • $98.43/MWH for RI (no escalator) • CT pricing not disclosed Contract Status: • 400 MW for RI approved • 304 MW for CT approved Most Recent In - Service Date: • Unlikely to achieve end of 2023 in - service date Permitting Update: • BOEM COP application filed on 3/13/20. BOEM review schedule expected in early 2021. Size: • 880 MW Year 1 Price: • $110.37/MWH • (no escalator) Contract Status: • Contract signed with NYSERDA in October 2019 Most Recent In - Service Date: • Unlikely to achieve end of 2024 in - service date Permitting Update: • BOEM COP application filed on 9/1/2020. BOEM review schedule expected in 2021
9 APPENDIX
Eversource’s Total Shareholder Return Has Outperformed Significantly in Both the Short and Long Term 10 Total Shareholder Return YTD Oct. 31, 2020 2019 3 - Year* 5 - Year* 10 - Year* Eversource 4.7% 34.4% 68.7% 85.8% 356.7% EEI 39 - Company Index - 2.8% 25.8% 45.7% 64.4% 214.0% S&P 500 2.6% 31.5% 53.2% 73.9% 256.7% *3 - year, 5 - year, and 10 - year for periods ended 12/31/19
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 Note: Projections exclude Eversource Gas of MA