Eversource Energy Q3 FY2025 earnings call

• Over the past 10 months, the team's execution of key strategic initiatives has driven strong results, with the share price being a top performer in the EEI peer group.
• Gained clarity on Connecticut regulatory environment, progress on Revolution Wind construction, and a constructive shift in CT's regulatory landscape with new PURA commissioners.
• Submitted a motion for an alternative resolution in the Yankee rate case, with progress on Aquarion Water sale expected to close by year-end.
• Load growth driven by electrification, decarbonization, and economic expansion; transmission projects like the Cambridge underground substation and land acquisitions to support growth.
• Affordability measures include gas customer discounts, seasonal heat pump rate, energy efficiency programs, and low-income discount rates.
• Directly supporting over 2,500 MW of new generation in the region over the next 12 months.

Transmission: Higher electric transmission earnings of $0.01 per share due to increased revenues from transmission system investment. Electric Distribution: Higher earnings of $0.03 per share reflecting distribution rate increases in NH and MA for infrastructure investments, offset by higher interest, depreciation, property taxes, and O&M. Natural Gas: Improved results of $0.04 per share due to base distribution rate increases in MA utilities and capital tracking mechanisms, offset by higher interest, depreciation, and property tax expenses. Water Distribution: Lower earnings by $0.02 per share primarily due to higher O&M and depreciation expense.

• 2025 recurring earnings per share guidance revised to $4.72 to $4.80 per share, with a longer-term EPS growth rate of 5% to 7% off 2024 non-GAAP EPS base.
• 5-year capital plan of $24.2 billion, with $3.3 billion executed through September.
• Expect FFO to debt ratio to be over 13% as of Q3 2025, an improvement from prior year.

• Regulatory uncertainty in Connecticut and Massachusetts, including outcomes of rate cases and PBR adjustments.
• Dependence on successful completion of Revolution Wind project and other transmission projects.
• Impact of weather and market conditions on energy supply and customer bills.

Q: On Yankee Gas, any updates on the alternative resolution and NSTAR Gas PBR?

A: Joe mentioned they need to go through the order, and John discussed the $160 million component of NSTAR Gas PBR and the motion for reconsideration and intent to file a rate case.

Q: On Connecticut regulatory changes, any updates on credit agencies' views?

A: John said credit agencies are in a wait-and-see mode, looking for constructive regulatory outcomes.

Q: On equity, any details?

A: John discussed equity issuance, stating near-term equity needs are covered but majority will be issued towards the latter part of the forecast period.

Q: On land acquisition strategy and equity outlook?

A: Joe talked about land acquisition for regulated business in strategic locations, and John discussed equity issuance and liquidity position.

Q: On Revolution Wind completion and storm cost securitization?

A: Joe mentioned Revolution is progressing well, and John discussed storm cost securitization timing and focus.

Q: On Massachusetts PBR metrics and ISO New England planning?

A: John discussed PBR metrics and the trend of increasing outer period investments in the 5-year plan.

Q: On tax rate adjustments?

A: John explained the tax rate composition, including the impact of offshore wind tax benefits.

Q: On Revolution Wind COD?

A: Joe stated COD (Completion of Development) is when they hand over the project and are off the hook, which is full operation with all documents and PPA in force.