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): July 29, 2021 (July 29, 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 | ¨ |
| Section 2 | Financial Information |
| --- | --- |
| Item 2.02 | Results of Operations and Financial Conditions. |
|---|
On July 29, 2021, Eversource Energy issued a news release announcing its unaudited results of operations for the second quarter and first six months ended June 30, 2021 and related financial information for certain of its subsidiaries as of and for the same period. A copy of the news release and related unaudited financial reports are attached as Exhibits 99.1 and 99.2, and are incorporated herein by reference thereto.
The information contained in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission (“SEC”) nor incorporated by reference in any registration statement filed by Eversource Energy or any subsidiary thereof under the Securities Act of 1933, as amended (the “Securities Act”), unless specified otherwise.
| Section 7 | Regulation FD |
|---|
| Item 7.01 | Regulation FD Disclosure. |
|---|
On July 30, 2021, Eversource Energy will webcast a conference call with financial analysts during which senior management will discuss the company’s financial performance through the second 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><br> <br>Number | Description |
|---|---|
| 99.1 | News Release of Eversource Energy dated July 29, 2021. |
| 99.2 | Financial Report for the three and six months ended June 30, 2021. |
| 99.3 | July 30, 2021 presentation<br>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) | ||
| July 29, 2021 | By: | /s/ Jay S. Buth |
| Jay S. Buth <br><br>Vice President, Controller and | ||
| Chief Accounting Officer | ||
| Document Type | 8-K | |
| --- | --- | |
| Document Period End Date | 2019-11-08 | |
| 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 | 2019-11-08 | |
| 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 | 2019-11-08 | |
| Amendment Flag | false | |
| Public Service Company_Soliciting material pursuant to | ¨ | |
| Public Service Company_Pre-commencement communications pursuant | ¨ | |
| Public Service Company_Pre-commencement communications pursuant | ¨ |
Exhibit 99.1
| 56 Prospect St., Hartford, Connecticut 06103-2818<br><br> <br><br><br> <br>800 Boylston St., Boston, Massachusetts 02199 |
|---|
****
Eversource Energy Reports Second QuarterResults
(HARTFORD, Conn. and BOSTON, Mass. – July 29, 2021) Eversource Energy (NYSE: ES) today reported earnings of $264.5 million, or $0.77 per share, in the second quarter of 2021, compared with earnings of $252.2 million, or $0.75 per share, in the second quarter of 2020. In the first half of 2021, Eversource Energy earnings totaled $630.7 million, or $1.83 per share, compared with earnings of $587 million, or $1.75 per share, in the first half of 2020.
Results for both years include charges primarily related to the October 2020 acquisition of the assets of Columbia Gas of Massachusetts. Those charges totaled $6.8 million in the second quarter of 2021 and $13 million in the first half of 2021, compared with charges of $3.9 million in the second quarter of 2020 and $7.4 million in the first half of 2020. Absent those charges, Eversource earned $271.3 million^1^, or $0.79 per share^1^, in the second quarter of 2021 and $643.7 million^1^, or $1.87 per share^1^, in the first half of 2021.
Eversource Energy also today reaffirmed its previously disclosed 2021 earnings per share (EPS) projection toward the lower end of a range of $3.81 to $3.93 per share. That guidance includes a charge of $0.07 per share in the first quarter of 2021 related to Connecticut regulators’ assessment of the company’s performance restoring power in August 2020 following the catastrophic damage from Tropical Storm Isaias. Eversource Energy also today reaffirmed its long-term EPS growth rate from its existing core regulated businesses in the upper half of 5-7 percent, using the $3.64 per share^1^ earned in 2020 as a base.
“We remain a steadfast partner in our region’s efforts to enhance its infrastructure and reduce its carbon footprint,” said Joe Nolan, Eversource president and chief executive officer. “We continue to advance a large number of innovative clean energy initiatives, and despite the challenges posed by Tropical Storm Elsa and a large number of damaging thunderstorms earlier this month, our employees worked around the clock to support our customers and repair tree-caused damage as promptly and safely as possible. We are pleased that this work by our employees is being recognized by customers and our policymakers.”
Electric Transmission
Eversource Energy’s transmission segment earned $137.6 million in the second quarter of 2021 and $273 million in the first half of 2021, compared with earnings of $129.5 million in the second quarter of 2020 and $256.2 million in the first half 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 earned $121.6 million in the second quarter of 2021 and $214.9 million in the first half of 2021, compared with earnings of $115 million in the second quarter of 2020 and $245.1 million in the first half of 2020. Improved second-quarter results were due primarily to higher revenues, offset by higher operation and maintenance expense, depreciation and property taxes. Lower first half results in 2021 are primarily the result of the aforementioned first-quarter storm performance charge.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $4.1 million in the second quarter of 2021 and $151.6 million in the first half of 2021, compared with earnings of $2.6 million in the second quarter of 2020 and $88.6 million in the first half of 2020. Improved second-quarter results were primarily the result of higher revenues. Higher first-half results in 2021 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 segment earned $8.9 million in the second quarter of 2021 and $12.6 million in the first half of 2021, compared with earnings of $10.4 million in the second quarter of 2020 and $12.5 million in the first half of 2020. Lower second-quarter results were primarily due to lower revenues due to the sale of the water system around Hingham, Massachusetts in mid-2020.
Eversource Parent and Other Companies
Eversource Energy parent and other companies had losses of $7.7 million in the second quarter of 2021 and $21.4 million in the first half of 2021, compared with losses of $5.3 million in the second quarter of 2020 and $15.4 million in the first half of 2020. Higher losses primarily reflect the impact of acquisition-related costs related to the Columbia Gas assets and Aquarion Company’s pending acquisition of New England Service Company.
The following table reconciles 2021 and 2020 second quarter and first half earnings per share:
| Second Quarter | First Six Months | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | Reported EPS | $ | 0.75 | $ | 1.75 | ||
| Higher electric transmission earnings in 2021, offset by dilution | 0.01 | 0.03 | |||||
| Addition of Eversource Gas Co. of MA results and higher natural gas revenues in 2021, offset by higher depreciation, O&M, property tax expense and dilution at the natural gas segment | 0.00 | 0.18 | |||||
| Higher electric distribution revenues in 2021, offset by higher O&M, depreciation, property taxes and interest expense at the electric distribution segment | 0.02 | 0.00 | |||||
| Higher storm expense in 2021 | (0.01 | ) | (0.04 | ) | |||
| First-quarter 2021 storm-related charge | 0.00 | (0.07 | ) | ||||
| Other | 0.01 | 0.00 | |||||
| Incremental charges related to acquisitions in 2021 | (0.01 | ) | (0.02 | ) | |||
| 2021 | Reported EPS | $ | 0.77 | $ | 1.83 |
Financial results by segment for the second quarter and first six months of 2021 and 2020 are noted below:
Three months ended:
| (in millions, except EPS) | ****<br><br>June 30, 2021 | ****<br><br>June 30, 2020 | Increase/<br> <br>(Decrease) | ****<br><br>2021 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 137.6 | $ | 129.5 | $ | 8.1 | $ | 0.40 | ||||
| Electric Distribution | 121.6 | 115.0 | 6.6 | 0.35 | ||||||||
| Natural Gas Distribution | 4.1 | 2.6 | 1.5 | 0.01 | ||||||||
| Water Distribution | 8.9 | 10.4 | (1.5 | ) | 0.03 | |||||||
| Eversource Parent and Other Companies^1^ | (0.9 | ) | (1.4 | ) | 0.5 | 0.00 | ||||||
| Charges related to acquisitions | (6.8 | ) | (3.9 | ) | (2.9 | ) | (0.02 | ) | ||||
| Reported Earnings | $ | 264.5 | $ | 252.2 | $ | 12.3 | $ | 0.77 |
Six months ended:
| (in millions, except EPS) | ****<br><br>June 30, 2021 | ****<br><br>June 30, 2020 | Increase/<br> <br>(Decrease) | ****<br><br>2021 EPS^1^ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electric Transmission | $ | 273.0 | $ | 256.2 | $ | 16.8 | $ | 0.79 | ||||
| Electric Distribution | 214.9 | 245.1 | (30.2 | ) | 0.62 | |||||||
| Natural Gas Distribution | 151.6 | 88.6 | 63.0 | 0.44 | ||||||||
| Water Distribution | 12.6 | 12.5 | 0.1 | 0.04 | ||||||||
| Eversource Parent and Other Companies^1^ | (8.4 | ) | (8.0 | ) | (0.4 | ) | (0.02 | ) | ||||
| Charges related to acquisitions | (13.0 | ) | (7.4 | ) | (5.6 | ) | (0.04 | ) | ||||
| Reported Earnings | $ | 630.7 | $ | 587.0 | $ | 43.7 | $ | 1.83 |
Eversource Energy has approximately 344 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.3 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.
CONTACT:
Jeffrey R. Kotkin
(860) 665-5154
| Note: Eversource Energy will webcast a conference call with senior management on July 30, 2021, beginning at 9 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com. |
|---|
^1^All per-share amounts in this news release arereported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. Theearnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, butrather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a financial measurenot recognized under generally accepted accounting principles (non-GAAP) that is calculated by dividing the net income or lossattributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding forthe period. Earnings discussions also include a non-GAAP financial measure referencing 2021 and 2020 earnings and EPS excludingcertain acquisition and transition costs. Eversource Energy uses these non-GAAP financial measures to evaluate and provide detailsof earnings results by business and to more fully compare and explain 2021 and 2020 results without including these items.Management believes the acquisition and transition costs are not indicative of Eversource Energy’s ongoing costs andperformance. Due to the nature and significance of the effect of these items on net income attributable to common shareholdersand EPS, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’sfinancial performance and provides additional and useful information to readers in analyzing historical and future performance ofthe business. These non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidatednet income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’soperating performance.
This document includes statements concerning Eversource Energy’sexpectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth andother statements that are not historical facts. These statements are “forward-looking statements” within the meaning of thePrivate Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statements through the useof words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those includedin the forward-looking statements. Factors that may cause actual results to differ materially from those included in the forward-lookingstatements include, but are not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentialityof our proprietary information and the personal information of our customers; disruptions in the capital markets or other events thatmake our access to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID-19) pandemic, includingany new or emerging variants, on our customers, vendors, employees, regulators, and operations; changes in economic conditions, includingimpact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our majorstrategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage anddisrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federalregulatory, public policy and taxing bodies; substandard performance of third-party suppliers and service providers; fluctuations in weatherpatterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology ordevelopment of alternative energy sources related to our current or future business model; contamination of, or disruption in, our watersupplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliancewith environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies;and other presently unknown or unforeseen factors.
Other risk factors are detailed in Eversource Energy’s reportsfiled with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’s websiteat www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertaintiesthat may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place unduereliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as requiredby federal securities laws, Eversource 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 Months Ended June 30, | For the Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| (Thousands of Dollars, Except Share Information) | 2021 | 2020 | 2021 | 2020 | ||||
| Operating Revenues | $ | 2,122,538 | $ | 1,953,128 | $ | 4,948,378 | $ | 4,326,854 |
| Operating Expenses: | ||||||||
| Purchased Power, Fuel and Transmission | 650,087 | 630,132 | 1,648,578 | 1,506,703 | ||||
| Operations and Maintenance | 411,147 | 332,055 | 876,689 | 674,117 | ||||
| Depreciation | 274,647 | 240,516 | 545,352 | 476,727 | ||||
| Amortization | 5,611 | 23,397 | 113,624 | 73,172 | ||||
| Energy Efficiency Programs | 128,955 | 115,354 | 317,018 | 263,747 | ||||
| Taxes Other Than Income Taxes | 200,486 | 178,019 | 409,944 | 359,613 | ||||
| Total Operating Expenses | 1,670,933 | 1,519,473 | 3,911,205 | 3,354,079 | ||||
| Operating Income | 451,605 | 433,655 | 1,037,173 | 972,775 | ||||
| Interest Expense | 145,435 | 134,285 | 283,201 | 269,000 | ||||
| Other Income, Net | 46,619 | 30,243 | 80,820 | 54,347 | ||||
| Income Before Income Tax Expense | 352,789 | 329,613 | 834,792 | 758,122 | ||||
| Income Tax Expense | 86,389 | 75,501 | 200,370 | 167,379 | ||||
| Net Income | 266,400 | 254,112 | 634,422 | 590,743 | ||||
| Net Income Attributable to Noncontrolling Interests | 1,880 | 1,880 | 3,759 | 3,759 | ||||
| Net Income Attributable to Common Shareholders | $ | 264,520 | $ | 252,232 | $ | 630,663 | $ | 586,984 |
| Basic and Diluted Earnings Per Common Share | $ | 0.77 | $ | 0.75 | $ | 1.83 | $ | 1.75 |
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic | 343,844,626 | 337,946,663 | 343,761,435 | 334,524,452 | ||||
| Diluted | 344,435,696 | 338,561,649 | 344,385,193 | 335,749,404 |
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
July 30, 2021 2021 Second 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 financial measure not recognized under genera lly accepted accounting principles (non - GAAP) that is calculated by dividing the net income or loss attributable to common shareholders of each business by the weigh ted 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. 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 accor dan 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, including any new or emerging variants, on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax polic ies , and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities; acts of wa r o r terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; ac tions or inaction of local, state and federal regulatory, public policy and taxing bodies; substandard performance of third - party suppliers and service providers; fluctuation s in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of al ter native energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capi tal expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financia l r eporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors. Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They ar e updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to pr edict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue relia nce on the forward - looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversour ce Energy undertakes no obligation to update any forward - looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
Agenda Joe Nolan President & CEO Phil Lembo Executive Vice President and CFO ▪ 2021 Offshore Wind Update ▪ 2020 Sustainability Report ▪ Electric Vehicle Initiatives ▪ Q2 2021 Financial Results ▪ Grid Modernization and AMI Proposals in MA 2
South Fork Wind Revolution Wind Sunrise Wind Size 132 MW 704 MW 924 MW Construction Operation Plan Filing with BOEM Filed Oct 2018; DEIS issued Jan. 8, 2021; Decision in Jan 2022 Filed March 2020; review schedule was received on April 30, 2021; final approval expected in Q3 2023 Filed September 2020; review schedule expected in 2021 State Permit NY State Article VII Permit Approved March 18, 2021 Filed December 2020, completed initial hearing and public administrative hearings in late March & April Filed December 2020, supplemented application on April 12 with route enhancements Most Recent Commercial Ops Date Late 2023 In 2025 Depending on schedule in BOEM NOI, in 2025 Price as of first day of commercial operation ~ $0.160/KWH for 90 MW ~ $0.086/KWH for 42 MW (avg. annual escalator: 2%) $0.09843/KWH for RI (no escalator) $0.09843/KWH for CT for 200 MW (no escalator) $0.0995/KWH for CT for 104 MW (no escalator) $0.11037/KWH (no escalator) Term 20 years 20 years 25 years Status of Contracts Increase in capacity to 132 MW from 90 MW approved 400 MW for RI approved 200 MW for CT approved 104 MW for CT approved Contract signed with NYSERDA in October 2019 Interconnection East Hampton, NY (LI) Davisville, RI Brookhaven, NY (LI) 3 Eversource - Ørsted Projects Poised to Help New England and New York Meet Long - Term Goals
Support for Zero - Emissions Vehicle Accelerating 4 Massachusetts ▪ Through 2021, $55 million in Make Ready investment supporting ~4,000 charging ports at ~400 customer sites. ▪ Follow - on program filed on 7/14/21 with DPU to build on successes, lessons learned and market evolution that will: ▪ Expand light duty passenger vehicle charging infrastructure ▪ Offer an alternative demand charge, alternative rate solution and EV charger rebates ▪ Provide a “fleet advisory services” offering and emphasize access in Environmental Justice Communities ▪ Approximately $192 million of proposed NSTAR Electric program costs from 2022 - 2025, including about $68 million of capital investment Connecticut ▪ PURA finalized Zero Emissions Vehicle decision on 7/14/21 ▪ Supports CT’s efforts to increase number of EVs from 17K to 125K by end of 2025 ▪ 9 - year program broken into 3 phases — first 3 - year phase targets 3,500 charge ports in ES territory ▪ Implementation plans due to PURA by mid - October ▪ Currently evaluating levels of projected capital investment and O&M based on PURA guidelines. No EV capital investment in CT in current 5 - year forecast
▪ 2020 Sustainability Report published July 21 ▪ Report overhauled to enhance disclosures and readability ▪ Highlights our climate leadership and progress under industry leading carbon neutral goal ▪ Greenhouse gas emissions third - party verified to enhance data reliability ▪ Outlines our accomplishments in promoting diversity, equity and inclusion ▪ Underscores our responsible leadership and strong governance Eversource 2020 Sustainability Report 2020 Sustainability Report ▪ Continued alignment with the most reputable reporting frameworks 5
6 2Q 2021 2Q 2020 2Q Change 1H 2021 1H 2020 1H Change $0.40 $0.39 $0.01 $0.79 $0.76 $0.03 0.35 0.34 0.01 0.62 0.73 (0.11) 0.01 0.01 0.00 0.44 0.26 0.18 0.03 0.03 0.00 0.04 0.04 0.00 0.00 (0.01) 0.01 (0.02) (0.02) 0.00 0.79 0.76 0.03 1.87 1.77 0.10 (0.02) (0.01) (0.01) (0.04) (0.02) (0.02) $0.77 $0.75 $0.02 $1.83 $1.75 $0.08 Electric Transmission Electric Distribution Natural Gas Distribution Parent & Other (Non - GAAP) Water Distribution Second Quarter and First Half 2021 EPS Results EPS, Ex. Acquisition/Transition Costs (Non - GAAP) Acquisition/Transition Costs Reported EPS (GAAP)
7 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 *
On 7/1/21, NSTAR Electric Submitted New Grid Modernization, AMI Proposals to MA DPU Grid Modernization ▪ Builds on initial $133M plan approved by DPU in 2018, supplemented by $56M for 2021 ▪ Deployed over 1,500 devices on the grid that have reduced impact of outages, added visibility into system conditions, and improved DER deployment ▪ Proposed 2022 - 2025 program includes additional substation automation, optimization of voltage regulation to improve power flows and reduce line losses, and improvements for real - time distribution system management ▪ Nearly $200M of capital over 4 years ▪ Additional storage beyond current 25 - MW Cape Cod project will be filed separately later in 2021 AMI ▪ Submitted implementation plan for full deployment of Advanced Meter Infrastructure (AMI) for MA electric customers by 2028 ▪ Will provide long - term benefit to customers by improving productivity, enhancing outage response, and advancing state energy goals ▪ Capital investment expected to exceed $550 million, primarily in years 2024 - 2027 ▪ Includes new meters, communications network, meter data management, and customer service system ▪ MA DPU response expected by mid - 2022, providing a cost recovery path 8
Appendix 9
10 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 ▪ Since the sale of fossil plants, we have seen a 17% decline in Scope 1 and 2 emissions across our operations ▪ This year, we had our carbon footprint verified by a third party ▪ Aggressive efforts are being undertaken to reach carbon neutrality by 2030
11 $994 $1,030 $964 $1,065 $915 $853 $761 $711 $1,145 $1,221 $1,189 $1,269 $1,309 $1,353 $1,289 $1,229 $404 $453 $545 $824 $925 $974 $937 $789 $102 $110 $127 $149 $143 $154 $162 $171 $185 $239 $239 $217 $249 $211 $194 $176 $2,830 $3,053 $3,064 $3,524 $3,541 $3,545 $3,343 $3,076 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2018A 2019A 2020A 2021E 2022E 2023E 2024E 2025E Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities $ In Millions Projected Capital Expenditures For Core Businesses $17 Billion 2021 - 2025
12 Description Docket Number Current Schedule Review of Tropical Storm Isaias 20 - 08 - 03/ 20 - 08 - 03RE01 Final decision issued 4/28/21. Notice of Violation decision finalized 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) issued 6/23/21; Phase IIa decision on interim rate decrease topics due 10/13/21; Phase IIb (economic development/low - income rates) in process AMI 17 - 12 - 03RE02 Early stages in process Zero - emission vehicle deployment 17 - 12 - 03RE04 Final decision issued on 7/14/21 Methodology for establishing residential bill credits for power outages longer than 96 hours 20 - 12 - 46 Final decision issued on 6/30/21 Performance Based Ratemaking design 21 - 05 - 15 Now open Key PURA Regulatory Dockets