ES - Earnings call transcript Q3 2018

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Operator

Welcome to the Eversource Energy Third Quarter 2018 Earnings Conference Call. My name is Hilda, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. the to turn now will call Mr. over I Kotkin from Energy. Eversource Jeffrey begin. may you Sir,

Jeffrey R. Kotkin

Investor morning Thank Eversource Jeff for I'm you, Energy's and President you Hilda. Good thank for joining us. Vice Relations. Kotkin,

Act the and the differ referencing Safe call slides this on cause These website. Private risk as may statements U.S. of X, be as Harbor And made Reform on we'll slide within expectations During XXXX. results can on of materially statements that forward-looking Litigation our see call, meaning you some posted current and last of we projections. and are based are to provisions forecasts during of the actual may night forward-looking the Securities to from uncertainty, be the management's which this defined investor subject

in factors Some yesterday. of these set are news issued release the forth

may ended various can the on about year the XX, be Additional the XX-Q XXXX. XXXX, three months in for factors Form our found differ ended information actual Report June December on and Annual that results Form to for XX, XX-K cause

of most how explanation we news last certain slides we in and why contained within our Additionally, our non-GAAP measures release and night posted recent the use XX-K. our is and

and Phil Finance today Regulatory; are Also joining and John Vice Buth, Speaking us be Lembo, for President Jay will VP today Senior and Moreira, Executive our and Controller. and VP CFO. our our Treasurer

the and X over slide call Phil. to turn turn will I to Now

Philip J. Lembo

and to quarter provide per $X.XX $X.XX We've share X, earnings we expectations slide good full of top Starting to in the results for progress initiatives recent and of year we our growth well earnings very with $X.XX the in also the Overall, and third continue XXXX on the year. per between our to proceedings. been quarter with Thanks, as X% quarter consistent rate. our year. continue federal we're morning. of nine important Jeff. results share, and and I'll with quarter Good state recap service and share some morning, first third our This share of summarize months pleased with target We've for per and earnings regulatory number as earned customers. a last X% third per number compared long-term the tier to per share reliability $X.XX made very the

Northeast the release, non-recurring earnings As benefits. some items. of $X.XX impairment tax involves impacts in other details in two minute. these provide the I'll noted Access One on includes and the our a investment involve the in more

higher $X.XX the was higher last and in electric at New core Turning distribution Service results, improvement and our the quarter where third $X.XX per per to to of our Hampshire segment in from third the share Public rate Massachusetts, distribution quarter year. margin. new The business plans of Connecticut in XXXX effect earned share This of in not compared behind driver resulted we're sales decoupled. yet primary

Power. earnings, mostly revenues at was and lower margin the Light resulted the higher decoupling as quarters, absence such in NSTAR revenues shoulder offsetting Partially amortization as recall Hampshire from peak year lieu the of mechanism former loss-based New tax Electric expense, quarter our the and the that property our in second you higher this of use may (XX:XX:XX) implementation quarter. the Additionally, in third; for such generation of higher revenue quarters, results Connecticut second and and year-over-year in depreciation,

facilities investment $X.XX third Improved of year. segment transmission in in of in electric this compared level third the an increased due XXXX. to of share XXXX results Our were quarter per the primarily $X.XX our earned transmission quarter to

primarily due quarter share segment per third share in of a to change operation compared higher maintenance of loss distribution gas Our natural in to $X.XX was the and quarter business. the in per the $X.XX lost XXXX. expense third gas The

last usage and the earned results share $X.XX acquisition Water, third the is of More water reflect XXXX of significant its with quarter result at which and non-recurring in other the than XXXX. are a our third items. as less realized distribution quarter Aquarion's new Aquarion segment, million quarter $X is in this quarter highest. of earnings earnings parent typically of year Eversource or compared half earned of this $X.XX of than third the when $X.XX in year. third Parent a of customer December's per of Our other per two share in share

$X.XX tax of represents impairment the Northeast investment or First, of million Access all in $XX our share the per after project.

particularly in While natural law Supreme electric England clear XXXX the in Massachusetts, despite territory in time, the light achieving unfortunate Massachusetts a not the And path in Valley state utilities outside distribution Eversource's we've electric savings Judicial a such ruled of in change Court this companies, capacity state. recent projected New most legislation with $X the regional sign contracts of states do service new energy Merrimack the of events region cannot gas see of at year, seeking of in progress without to summer in made contracts a we that billion

to Consumer Together, $X.X no we I'll our do Tax totaled forward. X material million or our about these the discrete income our third in expect in regulators results three-year result, several expect the on and settlement a per not XXXX, increases review and legislative November includes XXXX XXXX on ROE three-year will In reductions through and moderate authorized slight existing be plan be regulatory There is tax at period reform the financial from of Office now will additional rate federal to tax filed prosecutorial increase The going effective code related XXXX calendar changes and in – reduced of tax XXXX. Counsel our obligations. items Gas with corporate The results had over settlement returns. fourth a joined quarter. Also September, share. before we XX, state three turn the were a Connecticut X.X%, As levels. $XX concluded of a Access slide decision we've recent proposal. Northeast in on quarter is developments. a final that PURA rates and distribution impacts our Yankee for that investment the impaired. unit final impact filing we From we in or The rate in

We've effective just will expected decoupling long-term spending result the cast rate in a commissioners to cash that in recall, new voted settling lower business that largest and the and to mid-October. When was you several we consider We to able transmission and We the the CAPM, capital by FERC's a solely than commission's that ROEs would serial January of by of customers new methodologies positive I with as earnings five-year at substantial that a pipe. be to for complaints FERC going enable Owners. settlement tracker the implement jurisdictions, average of also review, older years between reviews. news NSTAR capital replacement settlement also new and Connecticut a be the year. in consider steel The CL&P It achieved we'll we've rate running cases. of to best and determining constructive also in four risk certain to England accelerate the relying rates for in both earned on May. three may the nil major ourselves of had than complainants implement were consider and just FERC Transmission on second and three premium, trackers rate methodology New revenue the find flow a plan year, is DCF, the predictability of our on unprotected time rather settled that and this what marks us decoupling authorized ROEs. for ruling rate February you and our having now distribution iron FERC filed XXXX outcome to Rather FERC position reviewing and methodology, rate effective resources review, rate electric focus Electric's asked proposing of this were was in the ROE means long-term would forward will it in was in XXXX investments. who proposed discounted

a complaints receive to XXXX. not That single and ALJ calls voted yet Until of one of continue the and customers core of what calculations file periods. FERC dates briefing of not FERC's for of case, can appeals FERC new final asked decision, while methodology through we'll secured as Appeals April and and by early own using will the recommended complaints cap authorized a four in the In only New project first by ROE back FERC, based which ROE that XXXX instructed the recall four for the clear a ROE four produced FERC each will it's vacated a XXXX for of each to the was the decision region ruling, England. back bill first rulings court we which has raised briefs for parties the XXXX. new oldest, on their the the issues the through process base to Circuit decision likely to complaints, XX.XX% next in the when moved remanded FERC. and complaint, and October which for its Court commission's through appealed but earn complaint year, decide ROE any the new first was actually case may You of the on The hearing continue the D.C. decision XX.XX%. all methodologies on to by the process on on the addresses

on a of yet, base of in that cap of its would illustrative Now result described XX.XX% any ruled ROE FERC in a the complaints lower calculation modestly in XX.XX%. has FERC the not and order higher four but

significant our if transmission from a but not result by to still are such ROEs. levels a ways FERC in approved away changes ultimately decision, a final would We overall

in we peer on wide await or was company its settling England company were the and single growth which whether higher companies our or reduce for earnings in by methodology covered of as actions FERC's or exclusively dollars estimates by widely the we actual to you New Transmission a low-end lightly the just millions know, ROE a analyst of there were intention commission's And ROE, analysts. subject Using potential result rate of resulted lower Owners. applaud depending could where analysis, at the of results one for volatility in in tens change sell-side DCF a swings in high-end methodology. the long-term the While situations

to transparency regarding stability sets critical Additionally, investment industry it FERC complaint settlement the after awaiting lengthy it to applied simplicity transmission in it of various returns, the sector. and annual settlement changes be and representatives but rates. is existing for for to provides commission a The is followed certification before ROEs. transparency, rates. New owners the more that will transmission a regulators, ROE increased filing It of will anticipate more and does now provide in ROEs an negotiation a follows the and hearing. settlement This that not go of opportunity transmission the it The a between stakeholders England's review August affect ALJ successful We thereby process before tightening formula in for appears state that to threshold and customers encouraging decision. order the our

to turn capital X. slide I'll our program Finally, in

during capital about of core earnings call, you XXXX August million we As through X XXXX our probably $XXX our business. updated in recall spending adding program, our

capital laying our earnings also and that refine long-term our for to XXXX. estimates out will years continue anticipation of include those a plan February revised year the call, We three in one estimates investment for during

on not our to that XXXX, expect yet do Jeff the we projection I to early XXXX, back the to With we're years XXXX that, plans into for call come revisions I'll get this $X.X-billion XX-K our provide than While that turn ready year estimate Q&A. February will slide. that on higher More to be the capital as incorporate finalized. expenditures next and over

Jeffrey R. Kotkin

Hilda? you And to I'll Thank Hilda call the your enter remind to just questions. you, how turn to Phil. back to

Operator

Back you. sir. Thank you, to

Jeffrey R. Kotkin

very much. you Thank

morning Greg first Gordon this from morning, Our question Good is Evercore. Greg. from

Greg Gordon

little a bit little Vistro in bit higher projection base got $X.X-billion a little that dialed there. think I A targets late to the to guidance where call listen (XX:XX:XX), Q&A. so the earnings a because you apologize the than growth little inside long I range? where now and growth you One, us your you bit guys. morning, Good beta know all Hey. can you just puts you rate orient you are on went

Philip J. Lembo

Good call. for Craig. our said missed morning. I Yes earnings target by our core call. this is conference Thanks as taking before, growth And driven this business. I

middle the place operating and as X% we is well business, be that And of really by we'll to in the that program as is Our we feel capital have X% at the earnings comfortable that that range growth in companies. transmission forward. going driven various

our In addition, emphasis have focus costs. that we and the on controlling strong

that in X% been X%, really we've So to to. the guiding is middle of where

Greg Gordon

Okay.

period? to in February. Is be additive to extend as to – tracking that potential confident in see you're forecast sort that the to to XXXX rate plan XXXX would spending added sort that you to range like that – potentially customers. you just the to but you So all today We'll that from guidance maybe move that of earnings could or beneficial the going of could XXXX, a during capital year feel potentially you're growth out that current just be there's be the you're – that additional the the indicated in

Philip J. Lembo

it be could could Greg. both, be it Well

be February up talk extension in period. that where for in extend range. the depending about ultimately new what to our year land adding of As I customers, that that capital ends X% certainly could that have said or of a being on on the the we you these customer move X% time on And in nature so depending to we'll terms programs into of that the program beneficial we'll –

So, where and about feel we're I we good headed. are do where

Greg Gordon

ongoing terms to potential question region be, must about impact reliability impacts? tight rate queue. in how How think managing during the I'll to winter do the plan how One of the for cede – events expect How high customer gas suffering of costs the Okay. overall winter in be you XXXX given then especially do energy really last the with just do and the you might for months scarcity XXXX, that? you supply. that and Customers

Philip J. Lembo

basic spike, while New and out have we security customers as in out. in know and with especially remain six that you winter fuel not winter resort or who in into a England service. there secure customers pricing We business constraints been in key for the and energy pricing needs. of that us to our ongoing And our of their months during And we every do as buy discussions that the last those generation the considerations you certainly a the does on region. as Well, the see marketplace go – we pointed are for we're result contracts do

there work through dockets So, open on the we're FERC at trying security ISO. to has fuel FERC,

New we've front England issue fuel certainly evaluating security and the is an in it's of that in tried to region. be

reliability we more in that. in is of region. In and take you out units on puts our of to Pilgrim system on pressure that is and to terms really like constraints XXXX top focus just the if continue the retire planning the certainly reliability, more tier But

Greg Gordon

care. Take guys. you Thank

Philip J. Lembo

Greg. Thanks,

Jeffrey R. Kotkin

Thanks, Greg.

Next Michael Hi. question (USA) Credit is Mike. Weinstein from from LLC Suisse. Good Suisse Securities Mike Credit Good guys. morning, Weinstein morning -

Philip J. Lembo

this But I start to probably increasing you just be a talking know is maybe about could that a going both little maybe grid from about wondering topic capital annual at I LLC you spending if you the it EI. Good you now terms Suisse going (USA) or in monetization could I'm anticipate wanted bracket forward. things to Massachusetts going in bit see of morning. Securities Connecticut Michael and if - how Credit Weinstein anticipate much that Hey, the forward. talk

Philip J. Lembo

spending. you're million is additional asking Well, in mod that storage energy Mike. rate we're implementing, really core our underway thanks, state programs. $XXX point as the And really being about. approval of and I we plan our by well provisions grid have you different of guess it Massachusetts, for current out of In

as moving our along initiating build well, infrastructure installations for as well automation to that two have addition in EV projects. that of other types are We

three-year up that So an we is program right less cycle. ongoing our level be Massachusetts order, for it now as or they million. the $XXX to energy just the In it's where approved in do going like Massachusetts, more set efficiency

So, the plan a cycle. into we'll for another this as next year three-year we filing program, be get

there's of be this – the number that's put and to filing of decision with into some a be briefs similar it of the for it's of just January distribution filed won't on dollars in be many months by some projects. a So In mod approved, the There Y be for and types X that only end will $XXX in, planning /grid November, go a the – kind amount end concluded decision should Connecticut, what expected been of is plan sometime things there's likely in XXXX. our really And stage million. ongoing what's approval of at will October really an a of docket more thing at recently the they hearings. is of

away So, any this early stages terms and we're stage. I there think at docket, on Hampshire in of programs that a has really Connecticut little initiated and a in is the bit but been New approved hasn't

until little clarity, more So, a we'll more I than we don't clarity think that EI any have get today. by bit

that think we've runway benefits storage infrastructure terms been many over years. the we and certainly So, EV programs implementing customers in many that to a long provide and have of

uncertainty determining So, the to likely actually well are any were FERC at how that two once order be or right might it this in over back you ROEs, And earned a now going and a on that for in mod there Credit does projects the Michael – current Weinstein comment level come – the stage, transmission others. it's are – associated. - England by we'll future solidify things in on lack ROEs address electric transmission, Got you. programs held the the higher those those for there's as dockets, assets? that policy (USA) New given specific being But dollar issues would out treat in latest Suisse if further methodology no or Securities FERC filing as grid are other LLC that of regarding

Philip J. Lembo

seems sort be in FERC illustrative around and place what now England of number the have numbers direction that in New Massachusetts an here we the I as that Well, in think or converging now gave is to certainly order. that in

numbers the in zip those long that certainly these site takes appropriate So considering the how are for it so – and and it's code. numbers construct the risk profile projects, business good

of the I Weinstein nothing LLC much. Michael Credit now. advanced and held given that's Thank where really be that right per incentives or So minus - being the there's nothing Securities very say that se would are and Suisse FERC back plus would ROE you Okay. where (USA)

Jeffrey R. Kotkin

Thanks, Mike.

Next question Macquarie. is morning. morning, Storozynski Angie - (USA), Inc. from the Good from Storozynski Angie Good Macquarie Angie. Capital

if separately of that's on Deepwater provide just the I could I'm two of we I'm current any Water? saw growth questions. or offshore wind, Connecticut completely bid what's with Thank unrelated. the M&A. in So in your that of wondering your prospects interest Ørsted's, have joint venture water kind an with you I your way if it or acquisition update for mean growth so on and plans, Ørsted And us One talking status you. reflective is

Philip J. Lembo

Angie. Well, thanks those for sure. Yeah, questions

party M&A. not the the as in opportunistic And will Water that water at through asked most we of synergistic lot a or ground. didn't involved could that and of with not trumped We you roll smaller out, a also growth local had about the think stage. growth that ups that opportunities and we're And created story a in bid we in We we one, the think put the do very of the in there's there first think of really be point some water was – shareholders. where the then put our other our that you said In from changed going be that business we infrastructure needs number terms that to are water like outlook for larger the by this. Connecticut be that in water with to into companies terms The distressed our there the the business, were mentioned this on we hasn't region. value we the growth, that

their at activity also that Maine. in and in shareholder think And process I stage. involved this both stage, process they're not we're moving this approval at and regulatory their through Connecticut So

when we So, a Ørsted, so wind, far we're on really And Wind. don't we're Bay good have the with very offshore we sideline And State on fully aligned see with relationship our that for there's any there. there Inc. of Capital Angie opportunities (USA), the got from we first Storozynski partnership involved we - limit in terms expected with them. what Macquarie had

not on regulatory even that in intervener you Just to or be one the follow-up, an approval participating that intervener thought I you were process. Connecticut in so planning Water were you are in Connecticut? an I forgot, case so

Philip J. Lembo

not we interveners they bidding party regulatory process, where Yes are Capital terms Thank process intervener But as in we an you. an Very Macquarie area the case. the company, in we're of (USA), in correct. - interested Storozynski the operate, for the Angie Inc. But in that's involved. the are good.

Jeffrey R. Kotkin

Angie. Thank you,

Next is Julien Good from question Dumoulin-Smith of from morning, America. Bank Julien.

Julien Dumoulin-Smith

Good Hey. team. morning

scale little the on just it? the to about project bidding are you how can from more reported thinking a JV which Just bit bidding – sites about about opportunities thinking about upcoming you question, some the last clear to and it, just you the JV's a to see or conversely, infrastructure Does I this, for for be of transmission or as potentially way a you added for in acquisition So that? advantage all impede bit and Deepwater clarify little elaborate of upcoming Deepwater out about want little when RFPs? vis-à-vis the leveraging clearer it improve think a otherwise these into be upcoming actually if the these of some any or auctions? the projects about bidding

Philip J. Lembo

Sure.

number of asked think there. you things I a

activity, Ørsted aligned have of and the good more opportunities Deepwater. fully anticipate Eversource as them the, combination State for in the very with So Massachusetts. RFPs we're that we scheduled going agreements exist kind it's existing about And feel I scenario our not Deepwater it's We and State partnership. just do this Bay forward partnership, said, the on Ørsted the it, to Bay clarify and were there are an Wind Wind

being or England some about that contracts As New way opportunities contracting New quarter this there's of but exists. there's RFPs In there's their you RFP year. of about Massachusetts in RFP process, in XXX York York. that Massachusetts developed in open There's approval probably zero some in are and working the expected phase megawatts the first New like those for regulatory an through Connecticut, in the in an in cases of know coming carbon

So there's opportunities that that partnership actively State the feel many involved and good forward. our is about Bay prospects moving we exist are Wind what with

Julien Dumoulin-Smith

fully follow Got the it. efforts? here, that modify events. your does just And have How Excellent. at state any then up modernization a obviously modernization some gas encountered know if of in all your peers specific fairly tragic there's of I a some state making potential and the make just on back any in filings as you want the [indiscernible} (XX:XX:XX) be events understand you to upcoming the well. we well. all mean, as the with filing that sure to from read-throughs might I

Philip J. Lembo

expected Public gas independent the just XX, announced is last Commission of statewide XXX network the to there's that, Well, an last that's Sure. night going be and that evaluation distribution it to Utilities overseeing was days.

there be. million spending that would really quicker remove and be And on that of since that at on years, aggressive gas leak-prone in $XX it infrastructure it the $XX Mass we've cetera. items capital a where update So move impact has replace active fairly infrastructure. few doubled that et We've used it otherwise and been in than had program our to plans, our Connecticut, leak-prone come and spending out that million property a some to just spend the effect in $XX review to out program million and we're we that, in may and

our thing we've our done a assurance So that qualifications, of between terms other activities combining that that forward. and quality, type space operator and going of do lot to a planning the on done and quality in operations we've focus and and in lot

Julien Dumoulin-Smith

Got right. all. Thank you Excellent. it. All

Jeffrey R. Kotkin

you, Julien. Thank

from Our Goldman. morning, Michael is Lapides next Michael. from Good question

Michael Lapides

Good for morning, Thank taking guys. you question. my

the costs, do think when a with opportunities the of about are there's of I where sets opportunity post last fruit further from if the the has done Utilities the been kind to you where hanging job sizable like one? and change it over think curious a controlling here? of is the Northeast and lot you manage gotten feels Just O&M years, mean, few step you've incremental already looks low next combination biggest

Philip J. Lembo

ourselves in you. on being Well, being to able pride a Michael, terms thank We of cost really manage effective leader business a in our manner.

taken that were out know, million as really, we've customers. the business service dramatically So reliability merger, than same cost the benefits and our customer time $XXX levels of ultimately, they And since to our of pre-merger. you at and improving better

you improve across time for look do standardized cetera. lot service to the we equipment, consistency and of and automation and same continue lower that operations So to by that, can cost and driven at a properties et opportunities of is states, between

into – in cost. better – that can more and are we're lower of them. the focused point year, automation the you of But doesn't I'd to when that as terms you as on more track you not this merge, that – moving of terms still say, time the gets the so in you next changing out are only what corporate the the those systems systems customers next initially now out And and much less of to there's is we in on and it. rolled and standardizing so or systems our do guided it think runway one serve we're that. of and year. mean we we're out, And at And of really, So now field X% reduction wave tools we're to do – some providing more harder, And low-hanging as fruit, – operations around. being say, is

in terms the focus will that keep that O&M drivers forward going process So to be think – I those our of going. ability

Michael Lapides

it. Got

into wastewater some Okay. that you. consolidate other set? are water and water Aquarion that's We've of it's do kind coming the about the a One aggregate systems. and the really or many over other how is How addressable the More Northeast not? of how thinking for utilities of importantly, big or you in market you something seen bolt of you easy question years, for municipal opportunity quantify if potential to that like

Philip J. Lembo

many Well Aquarion systems rolled I in and over do there. could years has more municipal we think

the model by I so some these environmental customers really some but to is you getting given up drive that year X% opportunity What by it's to think current that a its have you that a X%, add just inhibited prior current it's the tight can activity budgets – rolling steady in systems. more are environment. are And customer environment and strict. regulations – XX% good a ownership extent, going growth not to of

you've do saying to to a do the or I want regulations and gee, be just a with do more I got school new municipalities pipe environmental this in and in business. really truck, want So want I there, invest fire these ground put

you've opportunity in we path. actually an have I So, that have continue these systems framework a got for environmental the opportunity that some I there's still to and would And Connecticut think few allow you the PURA pending of now smaller that see right to forward. at think, move we approval,

Michael Lapides

guys. Got Much appreciated. Thank you, it.

Philip J. Lembo

you, Thank Michael.

Jeffrey R. Kotkin

Glenrock. The next is Good Paul. morning, Paul from Michael. question from Thanks, Patterson

Paul Patterson

How are morning. Good you doing?

Philip J. Lembo

you? Good, Paul. How are

Paul Patterson

right. All

thing, and would you follow how – up I volatility your if periods? were wanted more complaint ROE I what to that were what was be proposal respect on think, you wondering, Do So proposal the are more could recent complaint potentially, I – me? they there – follow the enacted and just proposed? apologize was And but I some might did you FERC for heard the work as What if you with calculations to the describe recent that just transmission I correctly.

Philip J. Lembo

want spoke the it the do bit actually of was making of because more of to – that by the follow higher methods volatility, you, I – I introducing some multiple do, terms in complaints, I a clarify what average that's introducing little mitigate of that an just that and I about but bar volatility. setting should new

Paul Patterson

you. Okay. I got

I Okay. okay, heard guess was I sense. – that makes when I you wrong

for Thanks the Okay. clarification.

Philip J. Lembo

I'm Boston have accent. Yeah been it sure, not could my Paul.

level. the cap we on think of and think shape. looked the our handles I XX.XX% incentives the So to looked on we good of – we the in complaints that – reserving, and everything that case the really and at is kind we're really front we're all have And at

So briefs, through are We've All I evolve think that's as calculations to the said, that there's there, be that because then of proposal $X-million But we point, there's good continue reply et cancellation, there's first see big so might impact. sets in second XX-basis now. if a parties disclosed briefs that disclosed in change, are January. I ROE do by in the XX-basis filed parties. but the gone numbers be to right a the there's cetera. going going we a calculation to any forever we a those some out think have position that a all details change But the swings. the of to we're going the Then haven't could don't current point I the

Paul Patterson

Okay.

periods for understand roughly So just to looks to right? there you'd currently some might ballpark, base of kind neighborhood. be XX.XX% speaking, in it's the the variation complaint this that you, of kind it Am – subsequent it be understanding if ROE but mean this I I in same way the

Philip J. Lembo

Yeah.

this is. at where way correct. just you're owners, to all it regional now the we think preliminary the Right, our it with from take that continue an this we again isn't it's Eversource item item, is we're that of looking transmission where because see a I and work about

Paul Patterson

FERC statements. historically in that was has there any sense there have been then it, this any that discussion change all? at they incentives subsequent when or do about some are foresee least about this granting or And you order at to made combination Do you incentives in was some with or Okay. comments, the

Philip J. Lembo

Yeah.

that they're looking to think at that. going I be

and is will of that these addressed coming in items that I be briefs more but there. but one the was are that something think before, silent briefs think reply come I to up, that

Paul Patterson

Northern I sort Okay. that New And is Hampshire. noticed a in topic of then still Pass

happened was proposal. Pass Northern And the similar mean kind sort should thing, there, so, How I'm sort we Northern X.X, in Pass for wondering (XX:XX:XX) of could flavor or potential of obviously there the what issues about still it's it. any another gubernatorial there I I of think of wondering Pass you call Pass the there's to forward? just sort Northern debate if give where just with recently. about Northern out think going was just there's if whatever but and associated to it some or been I want you has that any I know –

Philip J. Lembo

that may or be Well, not Committee aware may you the Supreme accepted rulings. has Evaluation our the New Court Hampshire appeal Site on

them month. So, regulators get next certify record back they and did the to the direct to that

at the Pass terms will our current that proposal. a is where Hampshire Court there Northern process New in be evaluated of Supreme So

But an And to its Massachusetts to continue that going might for tough something they ended the the tide even clean is uptick. opposed looking aggressive region energy still be I of in few in just seen New environmental that has. be enough projects is a region. through down existing way think authorized that that on road. offshore me timing months Hampshire. the So latest the session deliver as wind. We've in the there's that to certainly ago, targets working to forecast for that's And It's projects the more speculating what into

moving So what I that if discussion, but specific now – think it's to can't out than point certainly in that more to see there the you is you right look project, less. of I if what's a

Paul Patterson

so more being – I I guess not what I'm wondering apologize and clear. is, for

of the what sort to siting Court I So through see – see its the next let's process. Court be that siting step way evaluation – that just the assume to – works would committee that how evaluation Supreme Supreme you guess, the the ruling that

Philip J. Lembo

That's correct.

Paul Patterson

what's just Okay. to then have after that. I on what going see that with we And guess

Philip J. Lembo

correct. That's Yes.

Paul Patterson

Great. Thanks much. so Okay.

Philip J. Lembo

Paul. Thanks, Okay.

Jeffrey R. Kotkin

Paul. Thank,

Praful from from Praful. question Next Good is Mehta Citi. morning,

Praful Mehta

morning. Good guys. Hi,

Philip J. Lembo

Hi.

Praful Mehta

price of we how you market, and the for maybe to There disconnect first, offshore wind? pricing seems I relative been kind wanted are too more do broadly seeing? prices we've to offshore see prices that or the for think how opportunity low, those the to of $XX, just clearly on see the that see wind you So offshore if generally cleared, touch in set do wind be some you

Philip J. Lembo

of Praful, and pricing appropriate profile the bid, accepted pricing, the in was got levels. for below Well was so not win return an we we the risk did bid the what thought the terms that

of in ask to standpoint. of it's think winning best that's I the appropriate whether that So, or adequate bidder terms for

– that there's supply from my we more you with development. previous And there activity I a wind, – in you get think can these or projects, on said in that comment have and chain. you in think out see more had going ground more the more the better the I in that ocean terms offshore as of

if at these of that you et of think technology to gets I kinds look any down, cetera. move seem prices So activities, better,

that that but at you're think a because not I'm you of up wasn't to know to appropriate I information the price really is think as So that, sure to at some that's asking level. party or really give the specifics not that's whatever why won our probably that question obviously pricing price they the

Praful Mehta

you. Got

still So I in guess of I expect winning if saying – do or a to you prices the disconnect? another were levels these at is future it way there you stay is, do bids guess,

Philip J. Lembo

a what's as supply of regulatory the down, when mean, improvements uncertainty that factors I change. made the bid. clearer, chain, lot enter said in Prices so into in becomes come say a you future I Sure, in costs get

price the of have components. You

have mind, factors may So that a keep you future. in of to not lot in credits but also there, the tax are exist have you

people So the has that pricing too. make what impact on and determination that

maybe the lower it. signals absent have helped any higher and look pricing credits at push you price of that for tax – to if the that sort So credits tax

other when you say if you that the it's have into future, in bid. tax to the have really to things some and factor situation you hard what – to So, determine give the me is

Praful Mehta

super Yeah, no, agreed and that's helpful color.

legal heard so to Northern mean still context that that. going more this possibility comments that – Northern coming does a it back in all on on still see this there wanted process? the Or Pass a check? is then as I quickly. just appreciate still just just does do stepping opportunity before, that like Pass guess I of realistic put clarify, is back? And given So of I an you I know

Philip J. Lembo

answer, yes. In Yes. short a

Praful Mehta

All right.

guys. to Good Well, hear. appreciate that. perfect. you, Okay, Thank

Jeffrey R. Kotkin

morning, Scotia Andrew. All Thanks, from question Good Weisel next right. Inc. (USA), morning - everyone. Howard Weil. The good from Scotia Andrew Praful. Andrew Capital is Weisel Hey

a the impairment, or quick or are one to you longer that Northeast just is the on First pursue similar? accounting something an no going project Access item

Philip J. Lembo

determination It's accounting what is and it accounting the by an the an driven guidance facts is. item. accounting Well, circumstances and

have to signed. as the be of that was I in of somebody that the under the contract place terms recent out quarter. to provide alluded just to ended a that enable unfortunate in So, came in legislation have though, current that system be on future. elaborate the we legislation incident early, in Massachusetts the certainly would difficulty during legislation such no may in to did And session Massachusetts legislative getting to third an think There

determination we those looking Andrew that the – flows, So, was on Capital future (USA), a the have impact all project and made that facts is to Scotia Weisel at Inc. impaired. that - that might cash

at sheet, thought You sort how but thinking share update, balance lastly I'm always not seem capital a near-term. or pursuing Then, backup of require projects are some you've on support net been least the Understood. speak, of plan of repurchases? of of trying – safety unlikely the you these that Okay. a mega to CapEx is February to sort get the ahead a to about in

a stockpile you hold of want on to So, do to? how much cash

Philip J. Lembo

top we focus about it's Inc. plan infrastructure Andrew be my that – investments we not but our as for would (USA), said our plan, would investing the infrastructure share of right. be mode. and list. certainly and opportunities regulated a we've you. be Capital the the business people say to projects, and investments large added share in will that Well, expectation our I is developing shows really continue that so past, capital that's it will and All our more But to in we've that the set of ask our – into done we're - set at the not Thank Weisel and opportunity have what really repurchases Scotia repurchase capital

Philip J. Lembo

Great.

Jeffrey R. Kotkin

queue. That Andrew. had you, was in Thank we the question the last that

I thank us So you today. joining to want for

with luck Take today. us follow-ups the of Good have call rest the give later you care. please a call. If

Operator

and today's conference. concludes you. for participating. you Thank gentlemen, Ladies this Thank

You disconnect. may now

Jeffrey R. Kotkin	Eversource Energy
Philip J. Lembo	Eversource Energy
Greg Gordon	Evercore ISI
Michael Weinstein	Credit Suisse Securities (NYSE:USA) LLC
Angie Storozynski	Macquarie Capital (USA), Inc.
Julien Dumoulin-Smith	Bank of America Merrill Lynch
Michael Lapides	Goldman Sachs & Co. LLC
Paul Patterson	Glenrock Associates LLC
Praful Mehta	Citigroup Global Markets, Inc.
Andrew Weisel	Scotia Capital (USA), Inc.

Eversource Energy (ES) 2 Nov 182018 Q3 Earnings call transcript