Eversource Energy Q1 FY2026 earnings call

• Executive order in Massachusetts to expand energy resources and modernize systems. - In Connecticut, beginning rate review for CLMP, expect to file letter of intent later this month, awaiting Pura decision on storm cost prudency review. - In New Hampshire, Governor signed bill allowing securitization of storm costs. - 2026 to be transformational year with transparent communication and decisive actions to mitigate risk. - Financial results review, regulatory updates including FERC ROE decision, balance sheet and financing plan discussed. - State regulatory updates on Aquarion, Connecticut RAM decision, and New Hampshire storm cost securitization. - Financing update with successful junior subordinated notes offering, FFO to debt metrics strong, five-year capital plan of $26.5 billion.

GAAP earnings per share for first quarter was $1.61, with non-GAAP earnings $1.73 per share. Gas segment had 18 cent per share improvement from rate-based increases. Electric transmission improved six cents per share. Electric and water distributions up due to rate increases and cost control. Parent and other had higher losses of five cents per share due to higher effective tax rate and interest costs.

• Revised 2026 non-GAAP EPS guidance range $4.57 to $4.72 per share due to FERC ROE decision. - Expect to implement new base ROE for transmission of 11.39% towards end of year subject to refund. - Equity needs over next five years in range of $800 million to $1.1 billion. - Confident in delivering earnings growth towards upper half of 5% to 7% long-term target by 2028.

• FERC ROE decision with potential refund obligations and legal uncertainties. - Uncertainty around Aquarion transaction appeal period. - Potential impact of energy pricing volatility and regulatory changes on business.

Q: On Aquarion, latest thoughts on potential further appeals and progress to close.

A: Pleased with Pura decision, vigilant but if not closed, not end of world.

Q: On FERC 205 filing, timing of settlement and rate implementation.

A: Expect rate implemented towards end of year, settlement judge appointed within 60 days of filing.

Q: On FERC 15-month refund period confidence and milestones.

A: Recognize 15-month refund period, MISO decision significant if full process.

Q: On New Hampshire storm cost securitization, amount and timing.

A: Hoping for soon, dollar amount in $470 range, likely late 2027.

Q: On FERC case parties and deadline.

A: Broad range of stakeholders, FERC has 60 days from filing to let know rate implementation, up to five months suspension.

Q: On Aquarion, what's left to decide.

A: Waiting for appeal period to exhaust on June 14th at commission.

Q: On transmission ROEs, prospective earnings and guidance.

A: Current guidance assumes 9.57% rate, will revise guidance in fourth quarter once 205 shakes out.

Q: On refunds accounting and reserves.

A: Positioned to not book until further determination on retroactive piece.

Q: On transmission investments and CapEx flexibility.

A: Will look at it but currently focused on other aspects.

Q: On Connecticut PBR status and FERC trigger.

A: PBR not current priority, FERC decision sent message to New England transmission owners to let courts decide.