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): February 16, 2022 (February 16, 2022)
| Commission<br><br> <br>File Number | Registrant; State of Incorporation<br><br> <br>Address;<br>and Telephone Number | I.R.S. Employer<br><br> <br>Identification No. |
|---|---|---|
| 1-5324 | EVERSOURCE ENERGY<br><br> <br>(a Massachusetts voluntary association)<br><br> <br>300 Cadwell Drive<br><br> <br>Springfield, Massachusetts 01104<br><br> <br>Telephone: (800) 286-5000 | 04-2147929 |
| 0-00404 | THE CONNECTICUT LIGHT AND POWER COMPANY<br><br> <br>(a Connecticut corporation)<br><br> <br>107 Selden Street<br><br> <br>Berlin, Connecticut 06037-1616<br><br> <br>Telephone: (800) 286-5000 | 06-0303850 |
| 1-02301 | NSTAR ELECTRIC COMPANY<br><br> <br>(a Massachusetts corporation)<br><br> <br>800 Boylston Street<br><br> <br>Boston, Massachusetts 02199<br><br> <br>Telephone: (800) 286-5000 | 04-1278810 |
| 1-6392 | PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE<br><br> <br>(a New Hampshire corporation)<br><br> <br>Energy Park<br><br> <br>780 North Commercial Street<br><br> <br>Manchester, New Hampshire 03101-1134<br><br> <br>Telephone: (800) 286-5000 | 02-0181050 |
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the<br>Securities Act (17 CFR 230.425) | ||
|---|---|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the<br>Exchange Act (17 CFR 240.14a-12) | ||
| --- | --- | ||
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| --- | --- | ||
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||
| --- | --- | ||
| Securities registered pursuant to Section 12(b) of the Act: | |||
| --- | --- | --- | --- |
| Registrant | Title of each class | Trading<br><br> <br>Symbol(s) | Name of each exchange on<br><br> <br>which registered |
| Eversource Energy | Common Shares, $5.00 par value per share | ES | New York Stock Exchange |
| The Connecticut Light and Power Company | None | N/A | N/A |
| NSTAR Electric Company | None | N/A | N/A |
| Public Service Company of New Hampshire | None | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
| Emerging growth<br><br> <br>company | |
|---|---|
| Eversource Energy | ¨ |
| The Connecticut Light and Power Company | ¨ |
| NSTAR Electric Company | ¨ |
| Public Service Company of New Hampshire | ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| Eversource Energy | ¨ |
|---|---|
| The Connecticut Light and Power Company | ¨ |
| NSTAR Electric Company | ¨ |
| Public Service Company of New Hampshire | ¨ |
| Document Type | 8-K |
| --- | --- |
| Document Period End Date | 2022-02-16 |
| Amendment Flag | false |
| CIK | 0000023426 |
| THE<br> CONNECTICUT LIGHT_Written communications | ¨ |
| THE<br> CONNECTICUT LIGHT_Soliciting material pursuant to | ¨ |
| THE<br> CONNECTICUT LIGHT_Pre-commencement communications pursuant | ¨ |
| THE<br> CONNECTICUT LIGHT_Pre-commencement communications pursuant | ¨ |
| Document Type | 8-K |
| Document Period End Date | 2022-02-16 |
| Amendment Flag | false |
| CIK | 0000013372 |
| NSTAR<br> ELECTRIC_Written communications | ¨ |
| NSTAR<br> ELECTRIC_Soliciting material pursuant to | ¨ |
| NSTAR<br> ELECTRIC_Pre-commencement communications pursuant | ¨ |
| NSTAR<br> ELECTRIC_Pre-commencement communications pursuant | ¨ |
| CIK | 0000315256 |
| Public Service Company_Written communications | ¨ |
| Document Type | 8-K |
| Document Period End Date | 2022-02-16 |
| 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 February 16, 2022, Eversource Energy issued a news release announcing its unaudited results of operations for the three- and twelve-month periods ended December 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 7 | Regulation FD |
|---|
| Item 7.01 | Regulation FD Disclosure. |
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On February 17, 2022, Eversource Energy will webcast a conference call with financial analysts during which senior management will discuss the company’s financial performance through the fourth quarter of 2021. The webcast will be accessible from the Investors section of the Eversource Energy website at www.eversource.com. Attached as Exhibit 99.3 and incorporated herein by reference are the slides to be discussed by Eversource Energy during the conference call.
The information contained in this Item 7.01, including Exhibit 99.3, shall not be deemed “filed” with the SEC nor incorporated by reference into any registration statement filed by Eversource Energy or any subsidiary thereof under the Securities Act, unless specified otherwise.
| Section 9 | Financial Statements and Exhibits |
|---|
| Item 9.01 | Financial Statements and Exhibits. |
|---|
| Exhibit<br> Number | Description |
|---|---|
| 99.1 | News Release of Eversource Energy dated February 16, 2022. |
| 99.2 | Financial Report for the three months ended and year ended December 31, 2021. |
| 99.3 | February 17, 2022 presentation slides. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
[The remainder of this page left blank intentionally.]
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| EVERSOURCE ENERGY<br><br> <br>THE CONNECTICUT LIGHT AND POWER COMPANY<br><br> <br>NSTAR ELECTRIC COMPANY<br><br> <br>PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE<br><br> <br>(Registrants) | ||
|---|---|---|
| February 16, 2022 | By: | /s/ Jay S. Buth |
| Jay S. Buth<br><br> <br>Vice President, Controller and<br><br> <br>Chief Accounting Officer |
Exhibit 99.1
Eversource EnergyReports Full-Year Results
(HARTFORD,Conn. and BOSTON, Mass. – February 16, 2022) Eversource Energy (NYSE: ES) today reported full-year 2021 earnings of $1,220.5 million, or $3.54 per share, compared with earnings of $1,205.2 million, or $3.55 per share, for full-year 2020. Eversource also reported fourth quarter 2021 earnings of $306.7 million, or $0.89 per share, compared with fourth quarter 2020 earnings of $271.9 million, or $0.79 per share.
Results for both years include acquisition-related charges primarily related to the October 2020 acquisition of the assets of Columbia Gas of Massachusetts. Those after-tax charges totaled $6.3 million in the fourth quarter of 2021 and $23.6 million for all of 2021, compared with charges of $19.3 million in the fourth quarter of 2020 and $32.1 million for all of 2020.
Additionally, full-year 2021 results include after-tax charges related to the settlement agreement concerning Eversource’s subsidiary, The Connecticut Light and Power Company (CL&P). Those after-tax charges totaled $86.1 million for full-year 2021. Excluding the acquisition and settlement charges noted above, Eversource earned $1,330.2 million^1^, or $3.86 per share^1^, for the full-year 2021 and $313.3 million^1^, or $0.91 per share^1^ in the fourth quarter of 2021, compared with earnings of $1,237.3 million^1^, or $3.64 per share^1^, for the full-year 2020, and $291.2 million^1^, or $0.85 per share^1^, in the fourth quarter of 2020.
Also today, Eversource Energy projected 2022 earnings of between $4.00 per share and $4.17 per share. That range excludes remaining acquisition-related costs. The company also projected that its compound annual earnings per share growth from its regulated businesses would be in the upper half of a range of 5-7 percent through 2026, using the adjusted $3.86 per share it earned in 2021 as the base level.
“Our 9,200 employees operated our businesses extremely well in 2021,” said Joe Nolan, Eversource president and chief executive officer. “Our electric service reliability performance was in the top decile among our electric industry peers, and we remained a leader in safety, sustainability and emergency response. Moreover, we are at the forefront of implementing our region’s clean energy goals, commencing work on our first offshore wind project, supporting the nation’s best energy efficiency programs, and continuing to drive down our greenhouse gas footprint toward our goal of having our operations be carbon neutral by 2030.”
Electric Transmission
Eversource Energy’s transmission segment earned $544.6 million in 2021, compared with earnings of $502.5 million in 2020. Transmission earnings were $132.3 million in the fourth quarter of 2021, compared with earnings of $120.7 million in the fourth quarter of 2020. Transmission segment results improved due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution
Eversource Energy’s electric distribution segment, excluding the CL&P charges noted above, earned $556.2 million^1^ in 2021, compared with $544 million in 2020. Electric distribution earned $105 million^1^ in the fourth quarter of 2021, compared with earnings of $93.4 million in the fourth quarter of 2020. Improved full year results were due primarily to higher revenues, partially offset by higher operation and maintenance (O&M) expense, depreciation, property taxes and interest expense. Improved fourth quarter results were due primarily to lower O&M expense.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $204.8 million in 2021, compared with earnings of $135.6 million^1^ in 2020. It earned $75.2 million in the fourth quarter of 2021, compared with earnings of $62.3 million^1^ in the fourth quarter of 2020. Improved results for the full year and the fourth quarter were due primarily to the addition of the former Columbia Gas of Massachusetts assets, most of which are now held by Eversource Gas Company of Massachusetts.
Water Distribution
Eversource’s water distribution segment earned $36.8 million in 2021, compared with earnings of $41.2 million in 2020. The water segment earned $6.7 million in the fourth quarter of 2021, compared with earnings of $5.6 million in the fourth quarter of 2020. Lower full year results were primarily due to the absence of a gain from the sale of the water system around Hingham, Massachusetts in 2020. Higher fourth quarter results were due primarily to a gain on a land sale.
Eversource Parent and Other Companies
Eversource Energy parent and other companies, excluding the acquisition and transition-related costs noted above, lost $12.2 million^1^ in 2021, compared with earnings of $14 million^1^ in 2020. It lost $5.9 million^1^ in the fourth quarter of 2021, compared with earnings of $9.2 million^1^in the fourth quarter of 2020. Lower results for both the full-year and fourth quarter primarily reflect a higher effective tax rate at the parent segment.
The following table reconciles 2021 and 2020 fourth quarter and full-year earnings per share:
| Fourth Quarter | Full Year | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | Reported EPS | $ | 0.79 | $ | 3.55 | ||
| Higher electric transmission earnings in 2021, net of dilution | 0.03 | 0.10 | |||||
| Addition of Eversource Gas Co. of MA results and higher natural gas revenues in 2021,<br> partially offset by higher depreciation, property tax, interest expense, O&M and dilution at the natural gas distribution<br> segment | 0.04 | 0.19 | |||||
| Higher electric distribution revenues in 2021, partially offset by higher O&M,<br> depreciation, property taxes, interest expense and dilution at the electric distribution segment | 0.03 | 0.01 | |||||
| Absence of Hingham-related benefits at the water distribution segment in 2021 | -- | (0.01 | ) | ||||
| Parent & Other, primarily a higher effective income tax rate at the parent<br> segment in 2021 | (0.04 | ) | (0.07 | ) | |||
| CL&P regulatory settlement charges | -- | (0.25 | ) | ||||
| Lower charges related to acquisitions in 2021 | 0.04 | 0.02 | |||||
| 2021 | Reported EPS | $ | 0.89 | $ | 3.54 |
Financial results by segment for the fourth quarter and full year of 2021 and 2020 are noted below:
Three months ended:
| (inmillions, except EPS) | December 31, 2021 | December 31, 2020 | Increase/ (Decrease) | 2021EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 132.3 | $ | 120.7 | $ | 11.6 | $ | 0.38 | ||||
| Electric Distribution^1^ | 105.0 | 93.4 | 11.6 | 0.30 | ||||||||
| Natural Gas Distribution^1^ | 75.2 | 62.3 | 12.9 | 0.22 | ||||||||
| Water Distribution | 6.7 | 5.6 | 1.1 | 0.02 | ||||||||
| Eversource Parent and Other Companies^1^ | (5.9 | ) | 9.2 | (15.1 | ) | (0.01 | ) | |||||
| Charges related to regulatory settlement | (0.3 | ) | 0.0 | (0.3 | ) | 0.00 | ||||||
| Charges related to acquisitions | (6.3 | ) | (19.3 | ) | 13.0 | (0.02 | ) | |||||
| Reported Earnings | $ | 306.7 | $ | 271.9 | $ | 34.8 | $ | 0.89 |
Full year ended:
| (in millions, except EPS) | December 31,2021 | December 31, 2020 | Increase/ (Decrease) | **** 2021 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 544.6 | $ | 502.5 | $ | 42.1 | $ | 1.58 | ||||
| Electric Distribution, ex. settlement^1^ | 556.2 | 544.0 | 12.2 | 1.61 | ||||||||
| Natural Gas Distribution^1^ | 204.8 | 135.6 | 69.2 | 0.59 | ||||||||
| Water Distribution | 36.8 | 41.2 | (4.4 | ) | 0.11 | |||||||
| Eversource Parent and Other Companies^1^ | (12.2 | ) | 14.0 | (26.2 | ) | (0.03 | ) | |||||
| Charges related to regulatory settlement | (86.1 | ) | 0.0 | (86.1 | ) | (0.25 | ) | |||||
| Charges related to acquisitions | (23.6 | ) | (32.1 | ) | 8.5 | (0.07 | ) | |||||
| Reported Earnings | $ | 1,220.5 | $ | 1,205.2 | $ | 15.3 | $ | 3.54 |
Eversource Energy has approximately 344 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.4 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.
CONTACT:
Jeffrey R. Kotkin
(860) 665-5154
| Note: Eversource Energy will webcast a conference call with senior management on February 17, 2022, beginning at 8 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com. |
|---|
*^1^*All per-share amounts in this news release are reported on a diluted basis. The onlycommon equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do notrepresent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in EversourceEnergy's assets and liabilities as a whole. EPS by business is a financial measure not recognized under generally accepted accountingprinciples (non-GAAP) that is calculated by dividing the net income or loss attributable to common shareholders of each business by theweighted average diluted Eversource Energy common shares outstanding for the period. Earnings discussions also include non-GAAP financialmeasures referencing 2021 earnings and EPS excluding charges at CL&P related to a settlement agreement that included credits to customersand funding of various customer assistance initiatives and a storm performance penalty imposed on CL&P by PURA and 2021 and 2020earnings and EPS excluding certain acquisition and transition costs. Eversource Energy uses these non-GAAP financial measures to evaluateand provide details of earnings results by business and to more fully compare and explain 2021 and 2020 results without including theseitems. This information is among the primary indicators management uses as a basis for evaluating performance and planning and forecastingof future periods. Management believes the impacts of the CL&P settlement agreement, the storm performance penalty imposed on CL&Pby PURA, and acquisition and transition costs are not indicative of Eversource Energy’s ongoing costs and performance. Managementviews these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operatingperformance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS,management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performanceand provides additional and useful information to readers in analyzing historical and future performance of the business. These non-GAAPfinancial measures should not be considered as alternatives to Eversource Energy’s consolidated net income attributable to commonshareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance.
This document includes statementsconcerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, futurefinancial 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-lookingstatements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” andother similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomesto differ materially from those included in the forward-looking statements. Factors that may cause actual results to differ materiallyfrom those included in the forward-looking statements include, but are not limited to: cyberattacks or breaches, including those resultingin the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions inthe capital markets or other events that make our access to necessary capital more difficult or costly; the negative impacts of the novelcoronavirus (COVID-19) pandemic, including any new or emerging variants, 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 orinability to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, physical attacksor 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 suppliersand 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; changes in laws, regulationsor regulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financial reportingregulations; actions of rating agencies; and other presently unknown or unforeseen factors.
Other risk factors are detailed inEversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They are updated as necessary and availableon Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficultto predict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond ourcontrol. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statementis made, and, except as required by federal securities laws, Eversource Energy undertakes no obligation to update any forward-lookingstatement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrenceof unanticipated events.
Exhibit 99.2
EVERSOURCE ENERGY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| For the Three Months Ended<br><br> December 31, | ||||
|---|---|---|---|---|
| (Thousands of Dollars, Except Share Information) | 2021 | 2020 | ||
| Operating Revenues | $ | 2,481,912 | $ | 2,233,933 |
| Operating Expenses: | ||||
| Purchased Power, Fuel and Transmission | 843,127 | 674,883 | ||
| Operations and Maintenance | 473,932 | 474,104 | ||
| Depreciation | 280,810 | 260,201 | ||
| Amortization | 73,105 | 46,992 | ||
| Energy Efficiency Programs | 131,961 | 126,967 | ||
| Taxes Other Than Income Taxes | 206,159 | 196,058 | ||
| Total Operating Expenses | 2,009,094 | 1,779,205 | ||
| Operating Income | 472,818 | 454,728 | ||
| Interest Expense | 151,171 | 135,384 | ||
| Other Income, Net | 36,694 | 25,024 | ||
| Income Before Income Tax Expense | 358,341 | 344,368 | ||
| Income Tax Expense | 49,763 | 70,565 | ||
| Net Income | 308,578 | 273,803 | ||
| Net Income Attributable to Noncontrolling Interests | 1,880 | 1,880 | ||
| Net Income Attributable to Common Shareholders | $ | 306,698 | $ | 271,923 |
| Basic and Diluted Earnings Per Common Share | $ | 0.89 | $ | 0.79 |
| Weighted Average Common Shares Outstanding: | ||||
| Basic | 344,344,986 | 343,219,075 | ||
| Diluted | 345,084,052 | 344,115,842 |
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
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| For the Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| (Thousands of Dollars, Except Share Information) | 2021 | 2020 | 2019 | |||
| Operating Revenues | $ | 9,863,085 | $ | 8,904,430 | $ | 8,526,470 |
| Operating Expenses: | ||||||
| Purchased Power, Fuel and Transmission | 3,372,344 | 2,987,840 | 3,040,160 | |||
| Operations and Maintenance | 1,739,685 | 1,480,252 | 1,363,113 | |||
| Depreciation | 1,103,008 | 981,380 | 885,278 | |||
| Amortization | 231,965 | 177,679 | 195,380 | |||
| Energy Efficiency Programs | 592,775 | 535,760 | 501,369 | |||
| Taxes Other Than Income Taxes | 829,987 | 752,785 | 711,035 | |||
| Impairment of Northern Pass Transmission | — | — | 239,644 | |||
| Total Operating Expenses | 7,869,764 | 6,915,696 | 6,935,979 | |||
| Operating Income | 1,993,321 | 1,988,734 | 1,590,491 | |||
| Interest Expense | 582,334 | 538,452 | 533,197 | |||
| Other Income, Net | 161,282 | 108,590 | 132,777 | |||
| Income Before Income Tax Expense | 1,572,269 | 1,558,872 | 1,190,071 | |||
| Income Tax Expense | 344,223 | 346,186 | 273,499 | |||
| Net Income | 1,228,046 | 1,212,686 | 916,572 | |||
| Net Income Attributable to Noncontrolling Interests | 7,519 | 7,519 | 7,519 | |||
| Net Income Attributable to Common Shareholders | $ | 1,220,527 | $ | 1,205,167 | $ | 909,053 |
| Basic Earnings Per Common Share | $ | 3.55 | $ | 3.56 | $ | 2.83 |
| Diluted Earnings Per Common Share | $ | 3.54 | $ | 3.55 | $ | 2.81 |
| Weighted Average Common Shares Outstanding: | ||||||
| Basic | 343,972,926 | 338,836,147 | 321,416,086 | |||
| Diluted | 344,631,056 | 339,847,062 | 322,941,636 |
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
EVERSOURCE ENERGY YEAR END 2021 RESULTS February 17, 2022 2021 Year - End Investor Call
EVERSOURCE ENERGY YEAR END 2021 RESULTS Safe Harbor Statement 1 All per - share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business , b ut rather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a financial measure not recognized under generally accepted a cco unting principles (non - GAAP) that is calculated by dividing the net income or loss attributable to common shareholders of each business by the weighted average diluted Eversour ce Energy common shares outstanding for the period. Earnings discussions also include non - GAAP financial measures referencing 2021 earnings and EPS excluding charges at CL &P related to a settlement agreement that included credits to customers and funding of various customer assistance initiatives, and a storm performance penalty imposed on CL&P by PURA, and 2021 and 2020 earnings and EPS excluding certain acquisition and transition costs. Eversource Energy uses these non - GAAP financial measures to evaluat e and provide details of earnings results by business and to more fully compare and explain 2021 and 2020 results without including these items. This information is amon g t he primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of the CL&P set tlement agreement, the storm performance penalty imposed on CL&P by PURA, and acquisition and transition costs are not indicative of Eversource Energy’s ongoing costs an d performance. Management views these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operatin g p erformance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, management believes that the non - GAAP prese ntation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in analyzing historica l a nd future performance of the business. These 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, as sumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward - looking statements” with in the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward - looking statements through the use of words or phr ases 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 a ctual 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 co mpromise 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 a cce ss to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID - 19) pandemic, including any new or emerging variants, on our customers, vendors , employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ab ili ty 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 pol icy and taxing bodies; substandard performance of third - party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; cha nge s in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamina tio n of, or disruption in, our water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with env iro nmental 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 ar e updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to pr edict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue relia nce on the forward - looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource En erg y undertakes no obligation to update any forward - looking statement or statements to reflect events or circumstances after the date on which such statement is made or to refle ct the occurrence of unanticipated events.
EVERSOURCE ENERGY YEAR END 2021 RESULTS Agenda 2 Joe Nolan President & CEO Phil Lembo Executive Vice President and CFO ▪ 2021 – Year in Review ▪ Offshore Wind Update ▪ Clean Energy Initiatives ▪ 2021 Financial Results ▪ 2022 Guidance ▪ 2022 – 2026 Outlook ▪ Regulatory Update
EVERSOURCE ENERGY YEAR END 2021 RESULTS President & Chief Executive Officer Joe Nolan 3
EVERSOURCE ENERGY YEAR END 2021 RESULTS 4 Operations ▪ Provided safe, reliable electric, natural gas and water service through continuing pandemic and active storm year ▪ Completed our $3.5 billion core business construction program to enhance reliability, resilience, and customer service Regulatory ▪ Reached closure on challenging regulatory proceedings in Connecticut ▪ Significant progress in grid modernization, electric vehicle, and energy storage dockets Other Clean Energy Initiatives ▪ Significant progress in pursuit of 2030 carbon neutrality target ▪ New, aggressive 3 - year Energy Efficiency/Electrification Plan in Massachusetts ▪ Solar build out with potential tie to storage and microgrid Offshore Wind ▪ Continued advancement with our three offshore wind projects: – Onshore and in - water construction of Connecticut State Pier, New London – Final approval of and groundbreaking for first offshore wind project - South Fork Wind A Look Back at The Year
EVERSOURCE ENERGY YEAR END 2021 RESULTS Operating Performance Remains Strong SAFETY Injury rate per 100 employees (DART) Average months between interruptions (MBI) System average interruption duration (SAIDI) On - time emergency response GAS RESPONSE ELECTRIC RELIABILITY 2021 Top Quartile Among Our Peers 69.8 0.9 19.2 98% Top Decile Among Our Peers 5 Better than Industry Average Meeting Aggressive Regulatory Requirements
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource’s Total Shareholder Return Has Outperformed the Industry Over the Medium and Longer Term 6 Note: 3 - year, 5 - year and 10 - year results are for the periods ended December 31, 2021. Total Shareholder Return 2021 3 - Year 5 - Year 10 - Year Eversource 8.2% 52.0 % 90.8 % 245.2 % EEI 39 - Company Index 17.1 % 45.6 % 68.6 % 183.0 % S&P 500 28.7 % 100.4 % 133.4 % 362.6 % Ranking in EEI Index 31 st 6 th 7 th 10 th
EVERSOURCE ENERGY YEAR END 2021 RESULTS $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2018 2019 2020 2021 2022 $2.14 Dividend Growth Continues to Outperform Peers 7 Annualized Dividend 5% - 7% Payout Ratios: 62% 62%* 62%* 62%* +$0.12 +$0.12 +$0.13 +$0.14 $2.41 $2.02 $2.27 *Reflects non - GAAP results, excludes nonrecurring charges +$0.14 $2.55
EVERSOURCE ENERGY YEAR END 2021 RESULTS Our First Joint Project South Fork Wind Now in Construction 8 ▪ New York’s first offshore wind farm – Consisting of 12 wind turbines ▪ Received final approval in January 2022 from the U.S. Department of Interior to start construction ▪ Land - based construction commenced on Long Island – Installation of underground duct bank and work on the interconnection facility will occur first – Offshore substation, foundation and turbine installation will occur in 2023 ▪ Hundreds of jobs created in New York and the Northeast region ▪ Expansion of U.S. offshore wind supply chain
EVERSOURCE ENERGY YEAR END 2021 RESULTS 9 Revolution Wind and Sunrise Wind Now Well Into Siting Process South Fork Wind Revolution Wind Sunrise Wind Size 130 MW 704 MW 924 MW Construction Operation Plan Filing with BOEM Final siting approvals received January 2022 Filed March 2020; review schedule was received on April 30, 2021 as part of Notice of Intent; Final approvals expected in July 2023 Filed September 2020; Review schedule received August 31, 2021 as part of Notice of Intent; Final approvals expected in November 2023 State Permit NY State Article VII Permit Approved March 18, 2021 Filed December 2020, evidentiary hearings began on October 12, 2021 Filed December 2020, settlement discussions began in September 2021 Current Commercial Ops Date Late 2023 In 2025 Late 2025 Price as of first day of commercial operation ~ $0.160/KWH for 90 MW ~ $0.086/KWH for 40 MW (avg. annual escalator: 2%) $0.09843/KWH for RI (no escalator) $0.09843/KWH for CT for 200 MW (no escalator) $0.0995/KWH for CT for 104 MW (no escalator) $0.11037/KWH (no escalator) Term 20 years 20 years 25 years Status of Contracts 130 MW for NY 400 MW for RI approved 200 MW for CT approved 104 MW for CT approved Contract signed with NYSERDA in October 2019 Interconnection East Hampton, NY (LI) Davisville , RI Brookhaven, NY (LI)
EVERSOURCE ENERGY YEAR END 2021 RESULTS Onshoring of Domestic Supply Chain Accelerating 10 Provider Equipment / Service Procured U.S. Manufacturing/Assembly Location Project American Offshore Services and WindServe Maine Crew transfer vessels Rhode Island All projects Dominion Energy Wind turbine installation vessel Texas Revolution Wind and Sunrise Wind Edison Chouest Service operation vessel Louisiana and Florida All projects Haugland Onshore civil and electrical New York South Fork Wind Kiewit Offshore Services Offshore substation Texas South Fork Wind Nexans Subsea electrical cables South Carolina All projects Riggs Distler Foundation component fabrication New York Sunrise Wind Siemens Energy/ Aker Solutions High - voltage direct current system New York Sunrise Wind Port Projects State Pier at Port of New London, ProvPort , Port Jefferson, and Port of Coeymans Connecticut, New York, and Rhode Island State Pier and Port Jefferson - All projects Port of Coeymans – Sunrise Wind ProvPort – South Fork Wind and Revolution Wind
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource & Ørsted Ɣ New London Progress on Connecticut State Pier, New London 60 - 65 miles to nearest turbines 11 Work is underway to transform Connecticut State Pier (New London) into a heavy lift, deep water port
EVERSOURCE ENERGY YEAR END 2021 RESULTS Industry Leading Carbon Neutrality Goal Helps the Region Meet Its Targets Eversource Targets Carbon Neutral By 2030 ▪ Reducing electric line loss ▪ Lowering methane emissions from gas distribution system ▪ Fleet replacement ▪ Facility lighting and HVAC upgrades ▪ Replacement of SF6 in substation equipment Regional Targets 80+% GHG Reductions By 2050 ▪ Offshore wind development ▪ Utility - owned solar ▪ Industry - leading energy efficiency programs ▪ Reducing high dependence on high - emitting oil through ZEV infrastructure buildout, heating conversions ▪ Enabling third - party renewable buildout 1 2
EVERSOURCE ENERGY YEAR END 2021 RESULTS Gas Operations Launches Pilot Geothermal Project 13 ▪ Innovative way to provide clean and sustainable heating and cooling for customers via a geothermal network for residential and commercial customers ▪ Explore if geothermal network can be used instead of, or in combination with, traditional energy sources ▪ Support communities’ achievement of net zero emissions goals through rate - based projects subject to regulatory approval
EVERSOURCE ENERGY YEAR END 2021 RESULTS Executive Vice President & Chief Financial Officer Phil Lembo 14
EVERSOURCE ENERGY YEAR END 2021 RESULTS 15 4Q 2021 4Q 2020 Change Full - Year 2021 Full - Year 2020 Change $0.38 $0.35 $0.03 $1.58 $1.48 $0.10 0.30 0.27 0.03 1.61 1.60 0.01 0.22 0.18 0.04 0.59 0.40 0.19 0.02 0.02 0.00 0.11 0.12 (0.01) (0.01) 0.03 (0.04) (0.03) 0.04 (0.07) $0.91 $0.85 $0.06 $3.86 $3.64 $0.22 (0.02) (0.06) 0.04 (0.32) (0.09) (0.23) $0.89 $0.79 $0.10 $3.54 $3.55 $(0.01) Electric Transmission Electric Distribution (Non - GAAP) Natural Gas Distribution Parent & Other (Non - GAAP) Water Distribution EPS, Ex. CL&P Settlement and Acquisition/Transition Costs (Non - GAAP) CL&P Settlement & Acquisition/Transition Costs Reported EPS (GAAP) 2021 vs. 2020 Financial Results
EVERSOURCE ENERGY YEAR END 2021 RESULTS 16 2022 EPS Guidance: $4.00 - $4.17* Key 2022 Earnings Drivers ▪ Transmission capital investments ▪ Distribution safety and reliability investment and capital recovery programs and PBR rate adjustment ▪ Higher depreciation, property taxes, and interest expense ▪ Modestly higher effective tax rate vs. 2021 * Excludes costs associated with the integration of Eversource Gas Company of Massachusetts assets
EVERSOURCE ENERGY YEAR END 2021 RESULTS 17 Well Performing Core Businesses Drive EPS CAGR to Upper Half of 5 – 7% Through 2026 $2.28 $2.53 $2.65 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $3.86 $4.00 - $4.17 2012A* 2013A* 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022E* 2023E 2024E 2025E 2026E * Reflects non - GAAP results, excludes nonrecurring charges
EVERSOURCE ENERGY YEAR END 2021 RESULTS Projected Capital Expenditures For Core Businesses $1,030 $964 $1,115 $1,118 $979 $861 $834 $808 $1,221 $1,189 $1,244 $1,450 $1,469 $1,391 $1,372 $1,338 $453 $545 $799 $921 $849 $926 $895 $938 $110 $127 $144 $154 $163 $176 $190 $206 $239 $239 $239 $254 $224 $208 $203 $214 $3,053 $3,064 $3,541 $3,897 $3,684 $3,562 $3,494 $3,504 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities $ In Millions $18.1 Billion 2022 - 2026 18
EVERSOURCE ENERGY YEAR END 2021 RESULTS 36% 33% 44% 41% 16% 22% 4% 4% Transmission Electric Distribution Natural Gas Distribution Water 2020 Year - End Rate Base Projected 2026 Year - End Rate Base $22.4 billion* $33.8 billion* Rate Base by Core Line of Business – Current and Future Note: Excludes offshore wind investments * Rate base estimates shown exclude CWIP, which currently totals approximately $2 billion 19
EVERSOURCE ENERGY YEAR END 2021 RESULTS Key Elements Inside and Outside Our New $18.1B Core Business Capital Investment Forecast Included in Forecast ▪ Execution of updated capital investment forecast ▪ Increased investment in Boston area substations ▪ Continuation of Grid Modernization and electric vehicle charging infrastructure in MA Not Included ▪ AMI in MA or CT ▪ Grid Modernization or significant electric vehicle charging infrastructure investments in CT or NH ▪ Significant onshore transmission expansion to support offshore wind projects 20
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 1 Status of State and Federal Regulatory Reviews Electric Transmission (Federal Energy Regulatory Commission) 41% of 2021 earnings ▪ Pending FERC decision on New England transmission ROEs dating back to 2011 in 4 open cases – Earnings currently reflect base ROE of 10.57% with a maximum ROE for any single project of 11.74% – FERC is expected to decide on future qualifications for RTO and Other Incentive Adders Electric Distribution (CT PURA, MA DPU, NHPUC) 42% of 2021 earnings ▪ CL&P: Settlement approved in October 2021 – No base rate change can occur before at least January 1, 2024 – Authorized capital structure (53% common equity) and ROE (9.25%) remain in place – Certain reconciling mechanisms continue to operate such as revenue decoupling, electric system improvement, and energy efficiency ▪ NSTAR Electric: Filed rate case review on January 14, 2022, expect to have new rates effective January 2023 ▪ PSNH: Operating under rate settlement that took effect in January 2021 Natural Gas Distribution (CT PURA, MA DPU) 15% of 2021 earnings ▪ NSTAR Gas and Eversource Gas of MA operating under 10 - year and 8 - year rate plans, respectively ▪ Yankee Gas prior rate case occurred in 2018, so per statute we expect to file in late 2022 or 2023 Aquarion CT: (CT PURA) 3% of 2021 earnings ▪ Operating under rate plan approved in 2013; Settlement pending with potential reset of WICA rate
EVERSOURCE ENERGY YEAR END 2021 RESULTS ▪ Address the Distribution Revenue Deficiency ($89M) – Relates to capital additions, enterprise IT and Storm Fund contribution ▪ Extension of Performance - Based Ratemaking (PBR) – 10 - year plan, with enabling rate base roll - in(s) ▪ AMI Tariff Approval – Approval of specific tariff is next step to execute AMI capital investment plan of $575M Key Elements of NSTAR Electric Rate Review 2 2 Key Revenue Requirement Factors Test Year (12 Months Ended) December 31, 2020 Revenue Deficiency $89M Average Bill Impact (residential customer) 5.7% 2021 Rate Base Roll - In 1/1/23 $46M 2022 Rate Base Roll - In 1/1/24 $47M Return on Equity (Requested) 10.5% Capital Structure 53.8% Equity Filing Date: January 14, 2022 Decision Date: December 1, 2022 Rates Effective: January 1, 2023
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 3 A Value Proposition That Delivers Results for Investors Keys to Our Success: Results Delivered: 2. Control O&M spending Nine - year average O&M reduction 0.5%/year through 2021 (~$80M) 1. Exceed industry EPS and dividend growth Nine - year average recurring EPS and dividend growth of 6% and 6.9%, respectively, through 2021. Growth driven by robust regulated Cap Ex program and effective cost control 4. Deliver top - tier service quality and reliability Reliability metrics top decile and quartile vs. peers 5. Manage a robust investment program focused on safety, reliability, customer service Capital expenditures of $18.1 billion for 2022 - 2026 for core businesses ensure a safe and reliable delivery system for our 4.4 million customers 3. Maintain strong financial condition Top - tier credit rating 6. Pursue clean energy solutions for the region Progress on offshore wind, energy efficiency, solar, storage, EV infrastructure 7. Address environmental, social and governance strengths Achieving top - tier industry ratings from key sustainability raters
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 4 APPENDIX
EVERSOURCE ENERGY YEAR END 2021 RESULTS $1.1 Billion Increase in 2022 - 2025 Core Business Capex Since February 2021 Plan $3,240 $5,180 $3,625 $630 $830 $3,792 $5,682 $3,591 $683 $889 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Electric Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities Feb. 2021 Plan Feb. 2022 Plan Up $59 million $ in Millions Up $552 million Up $53 million Down $34 million Up $502 million 2 5
EVERSOURCE ENERGY YEAR END 2021 RESULTS $400 $381 $240 $218 $207 $201 $480 $459 $462 $382 $459 $446 $235 $278 $277 $261 $168 $161 $1,115 $1,118 $979 $861 $834 $808 $0 $200 $400 $600 $800 $1,000 $1,200 2021A 2022E 2023E 2024E 2025E 2026E CL&P NSTAR Electric PSNH 2 6 $ in Millions Projected Transmission Capital Expenditures Other concepts under development
EVERSOURCE ENERGY YEAR END 2021 RESULTS $3,816 $4,048 $4,065 $4,033 $4,063 $4,044 $3,481 $3,807 $4,184 $4,400 $4,655 $4,883 $1,422 $1,549 $1,698 $1,869 $1,945 $2,010 $8,719 $9,404 $9,947 $10,302 $10,663 $10,937 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2021A 2022E 2023E 2024E 2025E 2026E CL&P NSTAR Electric PSNH 2 7 $ in Millions Transmission Rate Base Growth Projections
EVERSOURCE ENERGY YEAR END 2021 RESULTS $799 $921 $849 $926 $895 $938 $0 $200 $400 $600 $800 $1,000 $1,200 2021A 2022E 2023E 2024E 2025E 2026E 2 8 $ in Millions Projected Natural Gas Investment 2021 - 2026
EVERSOURCE ENERGY YEAR END 2021 RESULTS 2 9 $887 $942 $1,037 $1,167 $1,268 $1,376 $1,470 $1,560 2019A 2020A 2021A 2022E 2023E 2024E 2025E 2026E Year - End Rate Base $ in Millions Aquarion Rate Base Forecast
EVERSOURCE ENERGY YEAR END 2021 RESULTS 30 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 – Briefs and reply briefs filed in early 2019; 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 March 2020, FERC issued a NOPR asking for comments on several items related to incentives, including raising RTO adder from 50 bps to 100 bps and capping incentives at 250 bps – ES incentives now capped at 11.74%, 117 bps above 10.57% base
EVERSOURCE ENERGY YEAR END 2021 RESULTS Status Report – Grid Modernization and Advanced Metering Infrastructure 31 Massachusetts Grid Modernization Plan (In Cap - Ex Forecast) ▪ Five - Year Plan - capital investment of nearly $400 million for 2022 - 2026 ▪ Includes investments in EV infrastructure, as well as grid technologies to improve reliability and support Distributed Energy Resources integration Advanced Metering Infrastructure (Not in Cap - Ex Forecast) ▪ Implementation during 2022 - 2027 – capital investment of approximately $575 million ▪ Technology will provide customer, operational and environmental benefits ▪ Goal – All customers on advanced metering infrastructure by end of 2027 Timeline ▪ Decisions from DPU expected in Q2 2022 Connecticut Advanced Metering Infrastructure (Not in Cap - Ex Forecast) ▪ Implementation during 2022 - 2026 – capital investment of approximately $475 million ▪ Technology will provide customer, operational and environmental benefits ▪ Current metering technology nearing end of life ▪ Goal – All customers on advanced metering infrastructure by end of 2025 Timeline ▪ PURA has not provided a schedule for this docket at this time
EVERSOURCE ENERGY YEAR END 2021 RESULTS ▪ Schedule set for PBR investigation to be conducted in 2 phases ▪ Phase I – Straw Proposal tentatively scheduled for January 2023 – Articulate regulatory goals – Identify desired public outcomes – Evaluate and assess current regulatory framework – Identify regulatory mechanisms to best achieve public outcomes – Identify performance metrics ▪ Phase II – Procedural schedule tentatively to be set in March 2023 – Streamline and/or refine elements of the existing regulatory framework – Develop incentive mechanisms to better address specific objectives or areas of utility performance – Implement other improvements to the regulatory framework that meet the goals and outcomes established in Phase I 32 Status Report – CT Performance - Based Ratemaking
EVERSOURCE ENERGY YEAR END 2021 RESULTS 33 ▪ In 2019, we announced our industry leading goal to reduce emissions from 5 key operational areas: – Line loss – Leaks from natural gas distribution – Vehicle fleet – Facilities – Use of SF6, potent greenhouse gas, in electrical equipment Eversource First US Energy Company To Target Carbon Neutrality By 2030 69% 10% 10% 7% 4% 2020 GHG Footprint Line Loss Methane Facilities Fleet SF6
EVERSOURCE ENERGY YEAR END 2021 RESULTS 34 Eversource’s Progress Toward Carbon Neutrality - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2018 2019 2020 MT CO2e Line Loss Methane Facilities Fleet SF6 828,107 707,015 685,331 - 17% ▪ Eversource emissions have greatly declined through divestiture of fossil fuel generation over the past several decades ▪ We have seen a 17% decline in Scope 1 and 2 emissions across our operations since 2018 ▪ This year, we had our carbon footprint verified by a third party ▪ Aggressive efforts are being undertaken to reach carbon neutrality by 2030
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource Addressing Largest Sources of New England Carbon Emissions: Transportation, Space Heating and Power Generation 35 46.4% 36.6% 32.7% 11.4% 14.8% 33.0% 6.1% 19.0% 0% 20% 40% 60% 80% 100% New England U.S. 2018 Energy Carbon Emissions by Source New England vs. U.S. Transportation Space heating Industrial Source: U.S. Energy Information Administration Power generation
EVERSOURCE ENERGY YEAR END 2021 RESULTS Most Effective Method of Reducing Emissions: Improve Energy Efficiency 36 Source: American Council for an Energy - Efficient Economy 2020 Scorecard 16 3 18 2 7 4 Note: The lower the number…the more effective the Energy Efficiency Programs Eversource MA, #1 Most Energy Efficient Utility in the United States According to ACEEE, in their second edition of the Utility Energy Efficiency Scorecard Retail Customer Count Up 3.2% Since 2015, While KWH Sales Down 8.1%
EVERSOURCE ENERGY YEAR END 2021 RESULTS Eversource Recognized as a Leading Energy Company 37 Included in Newsweek’s list of Most Responsible Companies Included on the Barron’s 100 Most Sustainable Companies list, based on an evaluation of more than 230 performance indicators that address environmental, social and corporate governance issues Recognized in Bloomberg’s Gender - Equality Index for our commitment to transparency in gender reporting and promoting women’s equality in the workplace