ES - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Eversource Energy first quarter 2021 results conference call. My name is Brandon and I’ll 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, during which you may dial star, one if you have a question. Please note this conference is being recorded. it Jeffrey turn now will over Kotkin. to I

may begin, sir. You

Jeffrey Kotkin

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

Private Act that U.S. current statements and meaning During the may as and release Reform factors we differ the Securities website, based this are are provisions be as set see the forward-looking These may projections. some can to of which defined Harbor are Slide you risks be news forward-looking of this statements issued Litigation materially forth call, These this XXXX. referencing of made and posted and the from morning during the on to we’ll Safe this on our X, morning. of cause the on expectations management’s within results uncertainty slides forecasts investor actual subject in call

about be ended results XXXX. that the the year may December Additional our factors Form for actual on in report found cause various XX-K information can XX, differ to annual

certain Additionally, use and morning, release is most XX-K. the within news of measures and reconcile how GAAP why contained our we those and results posted we in our this slides and to how our explanation measures recent non-GAAP

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

X to turn the will call Slide to over turn I Now and Joe.

Joe Nolan

and that all on and that phone your well. Jeff. healthy safe We remain you hope Thank families are the

grateful years the this Phil Board approving incredibly as performing spoken to to excellent of years, the remain enthusiasm I’m to industry Jim for Chairman. are investors time of Eversource as of conferences, me last EEI allowing executive its high at Finance signaling I’m changes, confidence various you more that Board In joined investment future for the Eversource’s core and forward and our Jim, also couple my exciting Over and that offshore our will Eversource coming I’m lead thankful term to of wind. the looking including business I’ve an and Trustees strategy on level these many employee sharing with organization. who when Executive many focuses theses. and Jim a is the over and past investment meeting call of the long to full in regulated Jeff conferences. I’ve Eversource couple on in an dedicated optimism

We reliability are where been service, never and customer in more world important. a safety have

deserve that They customers. business We not that reliable they utility we pay are without service be the will a Customers bills would our never and our safe in and forget must we X.X provide. priority. top the million

Over decades, in we initiatives I Eversource’s address energy will water we of helping and to I New in prepare clean turn the coming morning, the couple company’s cover a delivery expect This invest want dollars central with catalyst future, of will with our be transition. the for to Connecticut. relationship our topics first need tens and critical systems billions call a energy the to and England be for of associated energy but Phil, clean a to over then energy

provide employees water reliable possible. of and gas, million day each to X.X and who the thousands in our We work responsive electric most with customers natural have service hard Connecticut

takes day to me cannot that high work I restored so their decision days employees chosen had the safely, It over up for of far too the reflect to certain I’ve that have not year read was and service to the as been of have it many for XX our how was dedicated to XX. on Storm storm pandemic, did in released ensure During often lead. which the emergency historic it even a April elements tell past to our due working levels, Tropical Isaias a you promptly they we situations, are hours and customers painful company as

do each PURA, was on only customers, violation. company event, safely apparent a the of both thing want also audit and and I plan meet when doing all to We on the day each these with and of service clearly that The Our same you work the PURA and and from our our men restoration counts. and women hear and we assure there possible. of we the to is storm work as as - improvement. every can have day not know but Eversource quickly April The and relationship our identified subsequent notice loud expectations. on this clear storm great improve can response year, hard for we XX and every already power all are to This areas PURA. decision response

to aware to solar from to each will this XXX megawatts into state’s our law earlier Baker utilities NSTAR spring. will XXX of generation. up build clean in megawatts. initiatives, megawatts level the Electric be base generation Turning able you probably law solar increase the of Massachusetts many to legislation to its Among XX of climate are rate Governor signed allow that energy the of elements,

$XXX during mentioned our year-end XXXX. to for from Phil earnings initiative call, we XXXX have As million this budgeted approximately

state forefront the the United megawatt with us wind item at will other States. to impact direct megawatts. megawatts offshore on offshore from X,XXX of X,XXX the in keep expansion of development authorization is Massachusetts’ This X,XXX wind expansion The help the

now award see year. Slide York, authorizations wind New unallotted can southern England than New to this are megawatts and to on XX,XXX offshore in more Massachusetts X, there megawatts with set you X,XXX As later of up

the Friday fact, RFP week. on was In Massachusetts last issued of just

Management, our partner partnership strategy January, Fork Slide early growth an or of have since and and in a this Bureau Ocean with clean Comments Our draft statement closely offshore with to January is I for number late its recent and is environment impact of of federal in Starting developments near final wind the element that XXXX. on dear our had have my already we this final released February years. EIS and offshore project. late the very BOEM we expect relationship summer. in X by It with to that scheduled permits energy is worked a wind project were see South year. positive overseen our received Ørsted on important rule BOEM heart to of

XXXX. early to Assuming that the construction January next and project complete begin is we expect the met, year in date late

Public estate Commission approved New New necessary York where and in the the approved the project project. East for siting town permit York of State required the the the Additionally, Service rights real trustees late local Hampton for March local

only northeast that of by a The statement Turning a late milestone. and schedule Wind, impact final of in The release environmental decision BOEM in calls XXXX this construction project. July be plan to last final two significant Wind that March Fork released represents the step month XXXX. operating schedule that a South have on of Revolution megawatt a of and for for issued projects are XXX end schedule the for to achieved and the project. three forward reviewing for Revolution

the Island months, schedule. of a will to BOEM projection permitting the for Wind Over we develop Revolution Ørsted and be the process reviewing and coming construction Rhode the State

BOEM project for review XXX to later expect year. Finally, we schedule this megawatt receive our Sunrise Wind

of to in for continue commencement preparing progress We significant make the construction.

Over the construction. as announced agreements ports that staging grounds serve we for past will of couple months, have critical with two

Enormous hub of economic a to as the serve will and a Rhode our of for Connecticut communities their will London, hundreds benefits role in Providence, jobs. accrue will Island New foundation turbine including direct for these activities, construction. as construction, construction result center

has the his the Washington. very marshalled Their support to President the megawatts also wind by operating we has U.S. extremely are is of construction XX,XXX Biden have XXXX. signs his seaboard from wind support multiple encouraged members of Atlantic turbines to about it. along offshore for by in positive cabinet goal We underscored offshore see and

more a under with look many you be later to month. to Connecticut, York virtual than expect contract contributor our partnership and in at serve Again, are speaking AGA megawatts conference with to through X,XXX New Island. of this output I We that Rhode the load Ørsted. to Already, forward significant

will call the Phil. I over to turn Now

Phil Lembo

distribution will Resulting with showed of natural and share that’s Gas and share discuss compared a XXXX Thanks per years this first Columbia couple Joe. noting changes distribution the of were our at some and for were results $X.XX topics. the Massachusetts, quarter No. and $X.XX first FERC. year per electric Slide in XXXX. morning significant of by I $X.XX this This the couple cost I’ll of per in quarter most $X.XX per of compared share year. recent for both acquisition Electric that the the add with of of principle the of quarter earned our XXXX. cover of earnings regulatory first earnings I’ll X, our and first with Lower per with per segment associated to distribution share quarter share assets included to of factors. of XXXX. year $X.XX quarter Connecticut driven review first share results $X.XX and the after-tax of in Results in in start in year earnings the and developments a gas

reflect of $XX credits credits a million recorded paid $X.XX we the $XX.X of customer in run an to following share August. relate of penalty the established announced to last by million that to notice performance is of docket to violation of to the additional million year. through is Connecticut Connecticut. penalty first of charge review or Isaias regulators as The of and that power primarily State a be Storm a of to $X.X PURA catastrophic These mid-July restoring scheduled The this result our impact week last Tropical per

warm of by Additionally, first million a pretty and that’s electric and were to quarter XXXX. of in the expenses negatively affected approximately $XX quiet compared results first XXXX, quarter storm-related distribution in higher

Eversource in our due $X.XX because fact, with of quarter. it the earned per three in of share a events separate it’s sharp quarter of we the in quarter of $X.XX showed was which Gas XX a were storm than versus $X.XX to larger now Massachusetts, about the earnings Improved limited the XX% natural results distribution gas contrast, compared our ago. XXXX. quarter in activity XXXX It per first QX In segment fairly of XXXX. of earned this addition across in earnings share increase states share experienced per in year primarily first By

date, and platforms, targets Eversource process had well communities distribution To being we to as of expense. that for and higher or offset the and I improving Gas from well business we note service. Gas Yankee XX% off higher of is O&M by costs addition, received continues been progress customers, should Eversource to In - processes extremely revenues partially NiSource transition financial progress operational Gas, were by more migrate and ourselves. been systems and continue and transferred made. to onto Eversource reducing Eversource has we’d of these have NiSource business NSTAR for meet and the at depreciation Massachusetts exceed the the of than continue set we great and employees, ownership system to

in $X.XX Improved level On was of driven per first a by quarter facilities, share partially offset transmission the per in of XXXX. this first with shares and results electric additional of issued. $X.XX compared of in higher transmission quarter share dilution XXXX segment, investment we the earned were by the

earnings first in with quarter expense Our to tax last rate. first $X.X earned year. due effective of lower million of results XXXX largely in were water distribution the Improved and compared segment interest lower of a the million quarter $X.X

small noticed, Hampshire. investor-owned announced month that may Aquarion but serves have purchase is of Connecticut water last also a an and agreement New you portions based As system Massachusetts in to

as parent Rounding each $XX New serves about transaction it’s of first out customers quarter base be this and for in the the for Eversource the reconciliation, to first water close of has of the growth that’s away consistent of transition strategy England during This costs, regulatory to Eversource XX,XXX end it states XXXX. was same approvals, the Massachusetts so Service delivery with we the Gas rate acquisition about year. three expect quarter million. share in our the timely $X.XX down year discussed last is right XXXX, $X.XX a excluding and Company, business, per and the year, the we’ve as by called, in of accretive in assuming and

X% Slide probably modified per release you to you range; guidance $X.XX As the and EPS we and on of to share long noted our we’ve per news however, project half the $X.XX earlier. lower $X.XX upper of to term earnings credits. X, are includes this share impact the current see rate in reaffirming X% in our growth the credits now our XXXX reflect year the the earnings the range, We customer I end mentioned towards of can

On Connecticut, and have any while of primary side, of operating companies in reviews dockets the few the pending, base open them. regulatory status have several a we our I’ll don’t rate regulatory summarize

In the ROE. is basis I be the reduction penalty also distribution proceeding. decrease rate This addition PURA interim point in to identified previously, authorized CL&P likely current our XX a addressed described in to

finalized an certain continues take initiatives, PURA those its draft, interim on decision Given status the PURA and last interim X.XX%, is PURA those also implemented several a slides. have programs until billion modifications review of impact, decision would to Also that and of of the other would open result other the and help dockets base tracked implemented or you in X. size a including revised to approximately and AMI, schedule in take This week, number positive any earlier CL&P. the our XX, number tracked would October appreciate major vehicle modernization of CL&P’s potential that electric ROE June effect To April costs we deferred changes that place in costs grid modifications CL&P. dockets, PURA October an $X decision. for listed changes authorized PURA not rate of on released The until is believe making to ROE appendix decision to recovery this we be storage, with we currently of including X by X at an reduction on year.

in changes participate several organizations, over final the on ongoing be utilities change, transmission the years for notice will Turning FERC taking FERC President the bring New opposing granted replies concerning or Biden’s to I on nation’s of Act on will from clean a regional deciding Connecticut comments and which to around rate Washington, see focus and market. before that some developments the we that inconsistent building the proposed the the Policy expect making next incentive to owners electrical others many proposed month of were last transmission more and would out has XXXX energy being with disappointed comments in that RTOs. to the order. resources England as Energy with file weeks infrastructure

ROE of XX rule about point As in consolidated a a basis affects share. helpful transmission earnings penny by reduction thumb, our a per

issuances off parent In we pay terms far of financings, completed to $XXX million primarily in this at Eversource and Aquarion debt so maturities of at year, Connecticut.

period. We this our $XXX in stated ongoing that forecast time and other incentive to new and at expect and points our over program, than approximately employee as the know issue issued various any some you additional through continue however, would programs; reinvestment have equity to year not past, million in of have aftermarket equity occur of we we through dividend sort

to the even our fewer In be average Electric quartile year. strong reliability our our terms injuries March, industry this continues Through in peers. operations, a of further top the above of we we’ve employee start to than for morning. gotten in you record safety very first improved three us I’ll versus with this response their are of quality natural Thank gas call of for quarter experienced Jeff its All the exceeding and outperforming Q&A. solidly the XXXX. to Aquarion’s target. is requirements, joining on back water our utilities emergency turn off

Jeffrey Kotkin

Thank just I’m enter call remind to how to to questions. Phil. the going you over you return to Brandon

Operator

instructions] [Operator

Jeffrey Kotkin

you Brandon. Thank

Seaport is morning morning from Angie Good Our first question Global. this from Storozynski Angie.

Angie Storozynski

projections to you. lower of the beyond is reduction? BPs the Thank related first earnings ROE Connecticut XXXX, XX off ’XX the to maintained offset what growth guys. question, the in morning so Good My you

Phil Lembo

thanks Angie, your for call. Thanks

and elements in on that incorporating the half comfortable As of capex of you looking lot can in of incorporates upper interest a results etc., we’re imagine, O&M, we’re each on forecast, of to any X% it rates forward in so key forecast going range best our forward. rates, the forecasts, so those X% assumptions, what into term ROEs,

Angie Storozynski

etc. In incremental of then comment the you regulated for ROE, shift at capex of electric on had Connecticut. gave should on that If eventually that this capex you the light some AMI, regulated Okay, expect we proposed side from could away will in you Connecticut. the Connecticut? reduced projections spending

Phil Lembo

Sure.

or and service goal they to reliable safe to our or and provide in electric Our all be New is they or whether customer Massachusetts outstanding gas Connecticut, whether be service customers, Hampshire. water,

those ensuring high be geared profile met. Our is can to that standards investment

it’s after usually We’re proud the focus on decile where peers, ranks, put to the of we’re very our in so top year of terms been to and continuing versus in we’ve results our able up vegetation and reliability our how primary of ensure service. reliable as investments the we determine the impacts to in management system. way to it a customer that there That’s investments we positive a making how have focus year our

Angie Storozynski

last I a just electric transmission and still Great, debate. understand adder RTO for about is up the question ROE. the

the in RTO ROEs base expect how this will England the light the fall? of Do recess New about removal base of also the of ROE for you now that Now, proposed adder?

Phil Lembo

there. open Well one many a both administration region go resources, Angie, decade, our and as an there’s see bring--connect FERC we wish question of predict answer that desires this a offshore many It’s that’s transmission predict back clean and of New than resources the perspective. know, I connecting the cases sure between for, really timing say, base four quarters that’s certainly I cases the timing is the England, those exactly electrification in or to help show, perspective crystal keep the and will said my stage, have to more is but should I We’ve that which interplay but we centers clean docket, outcome play New energy mind very docket how the you in and don’t. at and can incentive something the and case - how by folks from at FERC versus will look in I’ve serve an had of you know, oldest have clean years obviously the no I thing that that I’m wind in terms a the so primary policy think and U.S. to what that hard at I’d asked deliver been the to open now, Biden dockets not load the wait ball those could also but public and the comments, England from but energy out, energy I a

Angie Storozynski

Understood, you. thank

Jeffrey Kotkin

you Angie. Thank

Next question Steve this Wolfe. is Steve. from morning Fleishman Good from morning

Steve Fleishman

Hey, good morning. Thanks.

for clarify, to reduction are XXXX guidance, BPs XX that low starting the Phil, in the October X guidance, you incorporating end? Just

Phil Lembo

Yes, we was if to might would the a guidance. know, underway proceeding the There’s a you only--you is Steve. quarter, impact into and now, if it’s certainly year, outcome that October, it say that that $X.XX be incorporate

Steve Fleishman

you’re Good. there? plan to a strategies just settlement, color Yes, You settle Then Could how obviously Phil, okay. you had a go much [indiscernible] just issues little on with Joe the that all or your areas you on so grid [indiscernible] how with that, give comment the parties and PURA. Joe to do about more made going do about-- pretty improve of or improving lot response relationship

Joe Nolan

last Steve. I’ve time spent Thanks week. sure. couple Connecticut. lot several-- spent days there down a in a Yes, of I

that We’re engaged we communities serve. the of with all

back storm a priorities, priorities. audit, audit that crews that X,XXX in PURA’s focusing that. storm. - double folks I if and we’re a and I that could there’s took double that was Connecticut, rooms, really the required we X,XXX focused We’re use our at a hotel did complex, and work the It’s sorry we - down the what obviously to and unique quite day, improvement areas to number of we’ve we obviously assembled question, heart. in know, we’re XXX-page win and can crews XX,XXX and know of It on. to pandemic. that minds We the improve their we some on that during never let It continue everything that’s will of trucks. during remind we But many hearts in them customers on, want that We Isaias, meals situation, also you think always

Steve Fleishman

Okay, you. great. Thank

Jeffrey Kotkin

Good Bank question All from Dumoulin-Smith right, from is Julien. America. Julien of morning next

Julien Dumoulin-Smith

change, the much. do curious demonstrate you there? for Jeff you if pivoting and Do here you morning how avenue as of Connecticut of what’s implementation and XX as to about as good part ask the think Hey, see you way, off a to next team. an guys I end if impact, will. this Thank new the rates basis first Just how timeline Maybe performance-based point that very here? Steve’s question you case can framework,

Phil Lembo

Julien, Thanks it’s Phil.

is opened XXXX. just that by docket of number terms measures. right by rate that to June is In performance-based performance but of there’s would this year, no June of so on thrive be the the the We mechanics, now be docket open expectation

of safety where metrics of I all years management our of think peer and historical that. outage the we fall what’s think performance keys long and has our we is to I system. We well measure performance the frequently comparison workforce. metrics, restore, an our on at many many Performance or performance of whether customer to whether how perform we a part be how a our the have is our to relative reliability, key outage, and they we’ve different what’s of the one them, you over employees, monitor measure success takes look very groups. performance We diversity delivered to DNA, aggressive

other middle measures performance-based and that for or there. PURA Massachusetts every we collaborative process. with is the and in during been other years, Service idea of intervenors rates perform very where that you way But a But live these successful and measures - of something to SQI, starting performance-based in docket the work to jurisdictions we’ve constructive of know, hope We had and would we and important that elements day, with they’ve this of is as the many we’ve in those measures for Index had against design have is Quality year.

Julien Dumoulin-Smith

this to the point would you, dovetail impact that. presume with or what you is basis or PBR, back will? you that, a on review with on I in when precisely but to if roll Maybe off, future what expectation tandem a XX rate it. Got have

Phil Lembo

Yes, said back wording direction is XX that be that indefinite. Julien, me. indefinite, that’s this the the decision to the in basis at would said so The itself only point, order points

Julien Dumoulin-Smith

I’ll much. you right. there. all leave Excellent, it very Thank all Okay,

Phil Lembo

Thank you.

Jeffrey Kotkin

you Thank Julien.

next question Chopra is from Durgesh. Our this morning Evercore. from Durgesh Good morning

Durgesh Chopra

good pass Hey, will Connecticut-related two quick in is questions. October June just a rather mixed through I the Phil, X. effective some sort terms Jeff. morning questions, charges, other of had clarifications really bag than there’s of the or and be going X, through

Just on cash delay about high or level, pretty the is the I impact impact that Am right? miniscule. that thinking

Phil Lembo

spread I into miniscule. be probably that I insignificant mean, million not $XXX it’s it’s that. but than future, so it’s would it’s larger Yes, wouldn’t the not say out

Durgesh Chopra

to Then that? When recovery that, roughly About quickly, get of just a the costs, on think storm the ruling deferred is $XXX million final the $XXX close do I million. in number Isaias cost. we

Phil Lembo

best three Connecticut protocol costs it’s for are have There’s and their on but that our they’re of in with costs them are ways we estimate you Hampshire guess or but had over we’ve provided that that it previous that we pay to those $XXX has of we could from certainly that, don’t many a some proceeding. would docket deferred be unless when states. done have come There various PURA I to information take related get know, in million - so things is we but would accurate. on process, we own costs the in is don’t date, those so Sunday do storm expression, states, storm time that during - in four a We back. it expect proceeding, inappropriate go New unfortunately future times, in some a were gather level. filing that After you over what smaller the for just Each state timing the depends next and for some come anything through It come that. all, also, and we sure file the had go invoices in have states a I seen the asked make We the in that base Massachusetts at we had then we developed that various year and to about cost reviewed all deferred we largest could pay The Isaias. that rate haven’t filings filing, two of filing. so

Durgesh Chopra

Thank Phil. perfect. you it, Got

Phil Lembo

You’re welcome.

Jeffrey Kotkin

Thank you Durgesh.

question from is from Next Kim Good morning Insoo Sachs. Goldman Insoo.

Insoo Kim

layer, morning good question now back also testimony be equity first that My decreased about is there’s the ROE to allowed filed docket, rate the meaningfully the party’s but Hey, layer going interim from should Jeff. current some been In Connecticut. and the equity suggesting the the XX%.

your for the and on a potentially there thoughts way curious to whether you there’s Just to adjust balance sheet address this.

Phil Lembo

part in practice hasn’t capital process, Connecticut. that structure been the ROE, of of the do, We a have do operating to Don’t maintain capital company, reflect that investments could structures forget framework unique setting Sure stage, subsidiary to over as ratings, to with Insoo, for the its could capital been the issues rulings work revenue this disciplined positive within. positive analysis of the in practice PURA like or financed. the you PURA wind any so the unique nothing that do the be way one there’s and that each subsidiaries at whatever so It these ratings, part come issues. There in companies that’s effect the authority Obviously appropriate a capital impact agency a things capital structure in their have too of change finance that elements are it a docket that at could have Certainly for rate It’s have non-regulated is past that with in up negative sort thanks just all broad requirement would we or collaboratively, certainly on has rate considerations in a your but question. negative parent structure for capital in we so offshore needs. investments, that’s customer regulatory their manner. constructively that structure, on and have in; rating the precedent would characteristics. any has a we’ll is our - been work very that’s where

we construction, that During finance debt. with

something write-off there’s companies. of sort to in had our setting of goes rate recall Pass takes, of any customers, painfully, project sort I kind that that I the That’d that impact - know You operating right that’s capital parents transmission the so structure be we parent, reviewed that protects the Northern of a process. the of would doesn’t things recall get

Insoo Kim

for Right, other a improvements of they wind. some projects implications construction on the any for some okay. have or online, the planning [indiscernible] is discussing recently make in structural process Ørsted there that they the My planned in U.S.? cost need projects to of question color. on offshore the are With Thanks

Phil Lembo

on that. No, good we’re

pandemic, schedules any buying that and or at of having power have then shape, the having impact know, good multi-year in so priority seen we’ve know, the at stage. in one I matters to I at--you monitoring this look really having number really supply power buying you’ve think haven’t been where combined that - the project, and teams, on power in a This case, an helps broader supply chain as agreements the Ørsted is if well significant an supply this is terms our we us relationships the a and you Eversource, size us closely of issues, buying of got you chain and utility as both chain. our think put and

Insoo Kim

Got it, thanks Congrats Phil. Joe.

Joe Nolan

Thank you.

Jeffrey Kotkin

Insoo. you Thank

Karp Keybanc. Sophie from morning is question Sophie. from Good Next

Sophie Karp

and to Hi, my influenced I just results the any results very good gears particular a seasonality it’s like or Thank I’m usual It question. you so taking were to to not were you. result, quarter of any the are New future. that experience wondering the Gas wanted by in I consider typical, there. if going that there was first weather developments curious seems there morning. for the England impacts Thank should switch we forward. strong one-offs

Phil Lembo

former remains the There’s delivered Columbia it’s for branded, $X.XX Gas so Gas Sophie. when and that Gas particularly Massachusetts. of Gas question, is franchise Massachusetts Thank Columbia you purchased Eversource the Gas know, so that the subsidiary--you NSTAR Eversource Gas for I’ll Massachusetts of we of from answer question results Yankee nothing Massachusetts just subsidiary. in in the Gas operational result. NiSource, of of your noteworthy, remains that The Massachusetts, renamed we Eversource Connecticut,

the business, second to But the so quarters even it ongoing from those months. come just NSTAR tend or when that regular was in contribution Yankee in earnings unusual. earnings negative a other either and and can Gas is of is third gas a is the our to similar heating quarter or Just profile, the terms quarter. the in probably as business, strong that heavy quarter quarter, be--you gas those the fourth small Gas in, nothing but contributions, limited Not very operations know, heating like quarter going as see out heating be is first not going it’s a on and the heating that the first quarter because expect of--you know, profile to and in of you lot franchise, a in the quarter, also strongest you

Sophie Karp

Thank you, helpful. from That’s me. that’s all

Phil Lembo

Sophie. welcome, You’re

Jeffrey Kotkin

Thanks Sophie.

Good Jeremy. Next from is from morning Morgan. question JP Jeremy morning this Tonet

Jeremy Tonet

Hi, good morning.

like the to to true be the could It able bit offshore to process, with turn little might and wind bit opposite seemed and a are you little it a bit wanted had prior maybe commentary. under like as administration, slowed things bit Just administration faster. moving new if the seems as more, more things far a the provide a be

with move details, project on get you’ve down for when the you smoothly on more line. with I if is. to your guess maybe on capex more color the what see curious things the Then we Just thoughts outline than just received Revolution, thoughts might or that, what any for potential current

thoughts. for color looking on Just those

Joe Nolan

Obviously thanks and for much it’s a fresh air good the so been Biden morning. the Yes, question, of administration. with breath

We the a a czars wind move can have had--we do on administration various climate two this that meeting officials. help House down probably weekly down and ago. about with there we of The cabinet call, with what the is the four developers hosted White there had a secretaries half They and have agenda. focus offshore and to meetings month

We’re seen administrations, sea for seeing of business. a it’s a faster are this change and than there really at already that in we’d pace been decisions out coming previous much

But much orderly the change. a will that process more developers, it’s optimistic it be very very, projects. been not for move sea along will and yes, much We’re faster our for all just

Phil Lembo

capex terms our part that--I the working base, on We’ve can of we’ve way you best it. bid want investment, in with the RFP the and there’s coming competitive In of say second said question, been as an the part of and up disclosure investment construction strategy, terms limited giving process of to before, construction the RFPs be of they’re is terms guess in position. out to imagine partners, say to in the so best get look the obviously I win amounts, want in much give at that bit ourselves put in able are and we sort to column we down interest would that these little Massachusetts be a I’d before we’d of that information competitive say bids. of to the have further that in the consider would road we to don’t too the available

Jeremy Tonet

for Maybe helpful. water at to Just the see if every there? Got looking how Is curious should you more us, coming the strategy, pivoting year? year, this I’m just see you color it, Thanks. expect over we refresh pick-up of other opportunity can point. that’s the type how on together set do deep it you every this side,

Phil Lembo

is looking we’d the water that we half grow water or scope. years last something we at fits few and larger that we’re through scale active We well then could grow small dozen Aquarion, for other does there think it that. active customers much this different to or footprint we’ll that a different--two going that that We couple opportunities - our are it the XX,XXX system, so do into so in but like out years, roll-ups, in Not we’re the there to look those the strategy infrastructure skill family, transaction for set, and like our opportunities, evaluating do with very Well, energy several in the can clean it opportunities out particular goal outlined just well adjacent and the that we’ve those, in Aquarion business. searching and so can very of and that change opportunities are fits there’s regulated customers been assure terms be that business, the business add may of just consistent not it that of think story, plenty in Aquarion. region our not we know, of we’ve last we can in - investments the that can is of over the there opportunities to you a had. in XX you help for states that in you be organically number done that think to in increase would six three we’ve we But and customers. so ways make It accumulate be could I is our state New or of England add or

do--you are goals in to always one, Our be there know, something for to customers. it has

the discipline business more don’t We You of period on that bigger. time, financial just get we just don’t deals bring being the lower you our do to more long to that costs bigger can continue that customers What and on could customer side. we’ll want there, opportunity of better for deal get discipline or any deals in maintain probably of to be the at. that also service, want look because the to but make lose sake out on bigger. bigger accretive that over can to get carefully--we for We pass

Jeremy Tonet

Thanks. helpful. it, that’s it Got I’ll there. leave

Phil Lembo

Thank you.

Jeffrey Kotkin

Thank you Jeremy.

Glenrock. from is question Paul. morning Patterson Paul from Good Next

Paul Patterson

me? Hey, good hear morning. you Can

Jeffrey Kotkin

Yes.

Paul Patterson

rate back about of myriad Connecticut, or get rates. it’s that to and all there and orders sort resistance of to have reading filings what sense the these, a a Just you, there’s and concern come I

Act, it. these want the least As or so--at I’m one demand have--they lower more wondering want investment the that panoply least should both their take that’s me about seems how to guy it’s they basically to the How transformation you investment, also at this, rate but lot want here just on think thread things, and they if picture on want of needle apprehensive there’s you of for rates. here you seeing that? and how a hand the a They be, the other how I’m about Grid comments stuff hand, increases, on are a back, or there whether we just

Joe Nolan

Paul. for Thanks the question,

we price is delivered hour, when at and that folks kilowatt rates just Connecticut. in to for power think look the it’s how think the I carbon-free how highlight important Connecticut, in that’s clean I per

kilowatt to out it something country. and the New customers, other work balance. day and only be story. folks really do is what to are to bring in a clean, regulators really say need and themselves to that administrations have initiatives and would of fair trying these need to You I to is that [indiscernible] that every that’s what I mandates, down think that’s are they that England Obviously hour, tell to that there, I state the or we it in portion if things utilities want regional you really the mandates a want there’s at that they strip is not something out think and break would the getting do across and upon you comparison green Connecticut, very folks taken what

certainly of relates carbon-free a to future. our proud We’re it very as initiatives

Paul Patterson

there any--I in of for there there them anything that thing actually about interests, how potentially rates, sense and mean, offsetting or these thing wanting get not--you we it’s to Okay, it’s we terms of terms one be know, be but everything, energy in any I green the that pay is another wanting is think fall to to whether to speak? should might Is so out, for that competing it. or two should guess,

Joe Nolan

Sure.

it know, that you to energy biggest side relates country be we I one on are as efficiency. number energy think lever efficiency, and would as in the the

helping more consumption, which that is doing we’re customers obviously price and their will at reduce what energy issue. think wisely use our drive I

net end If obviously and at the day recognized good been for you’re helping paying think we’ve and use very a you a we’re I savings, what of less, nationally the that’s bit but little we’re that. result is very, the more

Paul Patterson

Okay.

Joe Nolan

Did you add Phil? to something, want

Phil Lembo

can it customers congestion the is Joe, savings as flows of our are--you supply a to the direct but Yes, increased another go down. that’s so the the thing, transmission down, reliability are benefit helping capacity the those market, are that part things just investments, are help in on we’ve customer’s through really market in down, investments our that’s know, grid sort Certainly a bills transmission on our out supply so The too is to costs region, we made a those so business helpful for as to energy costs we one like certainly that forward transmission make that, investments of bill. lower don’t--we also move way customers, of customers.

Paul Patterson

great. so Okay, much. Thanks

Jeffrey Kotkin

you Paul. Thank

Morgan Arcaro Stanley. David from morning question Good Next is from David.

David Arcaro

light I costs, Hey, could run moving the much for needs wondering, with etc.? outlook in good morning. with of some earnings, equity through Thanks just here pieces ROE, for tracked was your you with of question. latest my so taking

Phil Lembo

Thanks David.

is a a million. equity in we’ve Our about needs year, so through billion five $XXX call are as year reinvestment, that employee there’s stated is $XXX past, years. about a which the million stock - same our dividend let’s purchase it the $X.X XXX they five It’s over years, issuances type total, of our forecast is aspect

maybe million type in program, $XXX aftermarket needs not those of of sort to at and said of I new do we’re my our equity have the As some remarks changed. before, stage course so stated about through this looking of we’ve period, forecast over

David Arcaro

any of wanted Okay, great. that $X.XX double how quarter much is check, I of is Thanks. recurring? just this or to the one-time, from

Phil Lembo

No, the $XX one-time. to that’s related just penalty, million the--it’s

David Arcaro

Okay, great. to Wanted confirm.

much. so thanks good, Sounds

Phil Lembo

Thank you.

Jeffrey Kotkin

David. Thanks

Credit is Mike. from Suisse. Mike question Next Good Weinstein morning at

Mike Weinstein

any I Thanks CL&P? the the the one the morning. the good flow does of decoupling to and next wanted penalty to Isaias what mechanism of for question. rate taking case, base rate for clarify, be timing just my portion case, Hey, base to the deferred next is through

Phil Lembo

a flows back this goes This is statute that a rate This is next settlement would by a so in back directly of that putting customers, the be penalty, ending that charge we that mechanism, The PBR three-year into customers. but There’s customers. the proceeding place. kicks back to no to off, direct it maybe we’re a credit timing had it decoupling. to when

of every we we the to would base our of in that new expectations We’re next so in for file would in four XXXX filing Connecticut, year, rates is required years do look when Connecticut. in next to terms file

Mike Weinstein

the I more thing forward. review to utility provides to modernization grid Maybe was Got provide--do it’s - in you. a as does going boost Patterson’s line of mean, follow-up think thinking A you of that? the storm opportunity continues the state on thinking, Paul I the an this same for Connecticut

Joe Nolan

number greater some are customers definitely the one, grid and demonstrate for allow fully Thanks that dialog the would, savings Massachusetts agree so engaged, around reliability at It technologies platform. available, provide table much seat in mod, that grid and the of customers, and empower this certainly to I There’s but around both and for are so question. the yes, of an actually there’s the our we for cost does. a to a Connecticut I We our lot also have do enhance us opportunity AMI. think that should

Mike Weinstein

for FERC Got think, current--you remember fairly assuming you. the currently know, at you’re you’re what term conservative, remind I ROE I us in transmission guidance? you’re the you allowed. Can what long

You don’t in that? what’s Just have than there. curious higher anything

Phil Lembo

rate. correct, current That’s base the allowed XX.XX

Mike Weinstein

that the you a same with it’s what’s striking out Connecticut Connecticut, when they the way - you company. across to Columbia you company in year towards it’s to I the the just they there, you Massachusetts and Got see difference reaction Massachusetts. wanted Gas from can you. to, of happening figure striking I regulators a you, regulators Hopefully see positive the take a the control governor tell in the out ago, and get guess, way

Joe Nolan

We agree.

is for and pandemic. to do We’re of are the level we take business crises connectivity situation. that it of when Gas unique back rest upon place that It and certainly of turn a folks very the takes to the all situation when folks, got sheltering so care same in for many many, electricity confidence country, that we hearts in in the been assured after months recognize and come did and we a loss storm our Massachusetts place. But folks can team called poses challenges great will we during across for for and we the disasters minds always Connecticut. win to that going was had have and in obviously sought disturbing around of natural and and for during Columbia obviously folks here Folks

that. thank that you about good think path I for can we question. do feel I that so forward, a

Mike Weinstein

thank Great, very you much.

Jeffrey Kotkin

Thanks Mike.

Travis morning from is Morningstar. from question Good Next Travis. Miller

Travis Miller

morning everyone. you. Thank Good

side? You’ve there? comprehensively stuff, were that and PURA proposals answered two very does me, take most out from ones any the but the away still questions, Does the there on activity, decisions legislative on that of actions any one ongoing the legislation my Connecticut. Are both quick

Joe Nolan

Yes, thanks trying seeing in that fall of put and a really has this allowed so activity, now actively implement in. the to the any the question. The done just during stuff really we’re PURA legislation, Travis session that’s for involved they lot not legislature the they rules are what to place had we’re right and in

basic solar have some around We seen legislative stuff not any additional or other activity maybe than storage.

Travis Miller

Okay, you develop schedule seeing great. of steel years offshore flexibility almost daily wind before the flexibility - stuff. - two, the do three technology that next What efficiency Then ground have, to on change and kind a you have start wind quick putting in one what’s in in the you offshore terms We’re of the turbine terms that? with in of now technology? size and

Joe Nolan

our the has sizes. this tell everyone incredible when question. but wind will I increases, of so upsize, has you that and that in in thinks in tell cost that we’re level of business, delay Yes, for advancement that It’s to will helpful flexibility always - optimistic. able so interesting the a offshore that think been we technology, types of all it these very, you business, very I circumstances to turbine you another delay, I you thing filed business, will the very have be positive our permits, permits have tell been

Travis Miller

doesn’t into you Okay, the any anything? technology kind EIS of or lock so

Joe Nolan

No, but the XX size. it megawatt, that’s level in has range. of maybe that up it up can take We but to a caps on flexibility,

Travis Miller

so Thanks great. Okay, much.

Jeffrey Kotkin

your know folks o’clock Thank time all very, so we’ll All moved of right, very today. thank call, the much here. number you you onto a already Travis. for I end XX it have

questions, any to let have additional give forward at email, and coming look send call us we us us an please the conferences. a you seeing or know, If you

Operator

Thank Ladies Thank joining. this you. for and concludes gentlemen, you today’s conference.

disconnect. now may You

Eversource Energy (ES) 10 May 212021 Q1 Earnings call transcript