Eversource Energy Q1 FY2025 earnings call

• Strong growth across transmission and distribution businesses vs last year. Reaffirmed 2025 EPS guidance and long-term EPS growth rate of 5%-7% through 2029. • In Massachusetts, AMI project on track, gas customers saw ~10% winter rate reduction starting March 1. Actively working on transparency and affordability solutions. • In Connecticut, PURA Commissioners confirmed, and ongoing Yankee gas rate case. In New Hampshire, looking to work with new administration. • Divestment of Aquarion water anticipated to close by end of year. • Offshore wind project's onshore substation construction progressing well, no change to contingent liability recorded.

In the first quarter, transmission saw higher electric transmission earnings of $0.04 per share due to increased revenues from system investments, partially offset by share dilution. Electric distribution had $0.03 per share benefit from grid modernization and rate mechanisms, offset by higher property taxes, interest, depreciation, and share dilution. The Natural Gas segment had improved results of $0.06 per share primarily from higher revenues due to infrastructure investments, offset by higher O&M, interest, depreciation, property taxes, and share dilution. Water earnings were comparable year-over-year.

• Reaffirmed 2025 recurring earnings per share in the range of $4.67 to $4.82. • Long-term EPS growth rate of 5% to 7% through 2029. • Five-year capital plan of $24.2 billion, 10% increase over last five-year plan. • Anticipated rate-based growth at 8% over five-year forecast period with additional opportunities beyond.

• Potential tariff impacts on capital investment plan, with expected cost increases of 3%-6% for capital projects. • Regulatory uncertainties in various states regarding siting, permitting, and rate reviews.

Q: Durgesh Chopra asked about offshore project tariff exposure and Aquarion timeline.

A: Joe Nolan said all items procured for offshore project, monopile under construction, Aquarion filing made, expected to close in 2025 with no issues, Connecticut ruling timeline around October.

Q: Unidentified Analyst asked about Connecticut securitization and AMI process.

A: John Moreira said securitization if received would revisit ATM equity timing; Joe Nolan said AMI docket under finalization for clarity on recovery.

Q: Carly Davenport asked about Connecticut PURA composition and balance sheet FFO to debt.

A: Joe Nolan said indifferent on PURA composition count, eager for stable regulatory climate; John Moreira said Moody's need to see execution of plan, operating cash flows improved significantly.

Q: Jeremy Tonet asked about FFO to debt and Rev Win cost estimates.

A: Joe Nolan said groundwork laid for better FFO to debt, sustainable costs and rates aligned; John Moreira said FFO to debt will continue to enhance, collaborative process with GIP on Rev Win cost estimates.

Q: Sophie Karp asked about Millstone recontracting rate and Massachusetts GSEP.

A: Joe Nolan said Millstone recontracting too early to determine, GSEP filing impacted NSTAR Gas and eGMA, but not major impact yet.

Q: Anthony Crowdell asked about Connecticut securitization and Massachusetts GSEP.

A: Joe Nolan said securitization rolled into legislation, GSEP filing lowered ceiling but manageable; Julien Dumoulin Smith asked about FFO to DAD numbers and corporate drag.

A: Joe Nolan said cash flows enhanced, corporate drag from interest and taxes, tax rate for 2025 in 22.5%-23.5% range.

Q: Paul Patterson asked about PBR in Yankee case and CLMP rate case timing.

A: John Moreira said timing of PBR in Yankee case still to be determined, Joe Nolan said CLMP rate case earliest filing in fall.

Q: Andrew Weisel asked about FFO to debt thresholds and tariff impact on O&M and capital.

A: John Moreira said referring to both S&P and Moody's thresholds; Joe Nolan said 3%-6% impact on capital projects, PBR mechanism in Massachusetts adjusts for inflation up to 5%.