ES - Earnings call transcript Q2 2021

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Operator

Good morning and welcome to the Eversource Energy Second Quarter 2021 Results Conference. My name is Brandon and I’ll be your operator for today. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note this conference is being recorded. I will now turn it over to Jeffrey Kotkin.

sir. begin, may You

Jeffrey Kotkin

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

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

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

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

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

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

Joe Nolan

Phil our know glancing cover year. modernization to important heat this in activity across discuss Storm [Employees] West, resulted morning wildfires. thunderstorm the financial later the with the AMI we to well increased New seeing caused deal some restoring in and and turn our In forward you, I the country. months to from mid-year most grid have results blow new call you to of developments topics in have then will We look on In challenges this that in power customers the over weather and phone Massachusetts. safe are and and by that a our topped level and Thank recent with the have Jeff. hope needed to person off our peers tree I few from to worked days many overhead damage a Elsa. clock system. around Tropical England, all

from day appreciate greatly PURA damage in scope of for resulting the implementation technology our from through, the appreciation continue humid those over the power we the been meeting. emergency our While of regions receive many of preparing of out in responding amount Connecticut work We recognition management crews team month excellent, to continue limited in new a our XX leaders. Massachusetts. that I the outages, conditions the the and customers and manner. municipal of our frontline Connecticut has of dedicated on in vegetation was and and cannot large enough completing so both received in and restoration Elsa we to a a hot July work passed in and about storm and notes half has say coastal Connecticut, day I at of safe past Their and effective doing to and all efforts Commissioners be

the week, CEO. new our Earlier based Community policymakers who class the first program at College. are Hartford relationship top this call, during campus first quarter a priority as community customers Capital Berlin Connecticut Connecticut education improving and our students completing with in labor Connecticut leaders certification celebrate and our Lineworker mentioned legislators partnership joined I of to of state number is As several my our earnings with

have continue in see municipal steady ourselves the we improvements storm. But the to the are systems receiving communication to I us we appreciate processes and from prove positive leaders. much next the put feedback major customer We ratings a better favorability to will our we monthly multi-day during place we cleanup strongly our occurs. in changes and are time that storm implementing next believe a effort

Next Orsted. to partnership provide the offshore with I want an wind on update

it to will was we where on in on wind progress vessel, make and complete Over turbines of of that turbine will New be largest, Slide the installation most construction noted X. kind Revolution The wind and significant have Sunrise will at significant we begun install used Brownsville, state-owned to the past provide at XXXX, under for more the few Once charter world to with into and approach the Perhaps will vessel the reached to Dominion vessel major the efficient peer Act-compliant barges. the Deepwater I for Wind to three of Jones facing it Energy wind. seal Wind. U.S. late New Texas. advanced was projects Work built currently construction a development months, state be feeder Connecticut to in in area the construction the agreement London, the most a ocean one offshore has convert its London continued recently use

timetable in citing As our you variable is approval. know, the primary construction

Project XXXX. next will or good Ocean BOEM early Management continue the Bureau megawatts of before path begin of of end to construction January on year, enable to Southwark and be a XXX secure to completed XXXX, of in We be approval Federal which

During we well, resulted this project. hearings this with turbines indicated megawatt in Island Coastal Rhode connection in Management the install Council of that Resource XX that approval we spring would project,

due for December. deemed well. by facility hearings begin York making mid-October. with Sunrise initiating a two scheduled on in for the officials Wind order was the as X, wind Evidentiary to state formal revolution review and signing New permitting in agencies July last project. The energy for the preliminary opinions Rhode issued by York April, and applications XX, Island State revolution larger decision were board on are are when projects to advisory in Wind filed progress August New by process for the Rhode complete Sunrise submitted Island We In XXXX. and local be application

May, we schedule, the the now targeting XXXX. Revolution in the Based review to is XXXX. review As on of completion that operation quarter for to be third Wind in noted expect BOEM we commercial of of achieve able

not yet with installation suppliers. our have and review We the area, project, BOEM’s of position ship a staging good we schedule are New turbine our received the in London, for but our Sunrise

state's These schedule, with administration's wind the target several the accelerate few proposed of Atlantic to having reach as will the which is Biden on review continues are with one vision Coast. depending operating next that So, the Wind review we we projects the commercial dates wind expect order administration, of is consistent offshore to of initiatives on the program's gas the is comprehensive months, to Sunrise state's in within underway XXXX. that XXXX number well. made changes the road BOEM the PURA by success. least in in consistent receive megawatts of expect to Offshore XX, to to step United of achieve PURA XX,XXX our also of July for States XXX,XXX vehicles the targets. the XXXX. the push expected offshore It of by a the zero operation at took support enhance The appreciate X. described for a clean the We draft emission when forward program major on the Slide end On greenhouse decision having it furthering a reduction energy state's approved help goals the

utilities XX. state's by based implementation will the that the submit an of zero October support on submitted to description a infrastructure is order the that XX, to on emissions. to plan Massachusetts further Also is proposal PURA of vehicles needed July conversion that slide, We on rapid develop a

connect can the this of about million vehicle have slide, end program, our electric you will helping on As see X,XXX in ports. charge we Massachusetts year, invested the $XX by to

responsible X, XX% X% as than by of greenhouse XX% by sold the is of XX% emissions, greenhouse its XXXX. XXXX, of emissions Massachusetts help more vehicles registered state vehicles gas reducing light only targets XXXX, the electric In transportation to needed in since However, EV's. XX,XXX and state only were duty of support the significantly had for more January meet XXXX. is the by state's gas

is the be for current than EV's as enhanced need EV's in XXX,XXX country going as the by whole, We a more million have needs Since to While to forward. it that Massachusetts average the XXXX. then state at targets. significantly above its reach of pace, fewer percentage we X for than will

XXXX, on new million on EV support spending EV to investments. XXXX capital opportunities XX and environmental from communities. are infrastructure justice proposed infrastructure incentives investment, add described These more some million in charger including included rate expanded investments the of than slide have in to We $XXX

incorporated our first on greenhouse neutrality verification our was social, a XXXX more XXXX report of included including link carbon enhancements We're share reduction updates gas our discussed sustainability greenhouse in month. website governance provide earlier state's third-party Our A our this report number length is environmental, with which and Slide support for revamped on XXXX new visibility into pleased report, the you our is at also to has The gas to goal, efforts our efforts. X. our posted of on to footprint.

we on we They've just on another be teams goal that principal proposals strategy is our some am reality. that in reducing is Eversource XXXX XXXX on ideas X,XXX Eversource’s by eliminated contribute XXXX, how offset team confident evaluating. We cast truly why achieve focusing to evidence that include within to I encouraging their all cannot future. a have already developed with of areas, best on can so They're about Eversource team our a another They number admissions a making a five emissions employees to working innovative more enthusiasm developing and goal. are team

Now, call over Phil Lembo. the to I will turn

Phil Lembo

I’ll to us dockets of and opportunities results, exciting This several you, of Grid on terms areas: that Modernization cover the primarily into results alluded AMI share $X.XX Eversource some X. the Gas our Joe. going to. the regulatory our of including with earned Eversource in share the ahead for Systems. second relating morning the Thank cost, and Joe I'm to per status the three Slide quarter pending, of quarter, $X.XX in quarter transitioning for for per Massachusetts Company We start of

share costs, in the $X.XX Excluding $X.XX quarter, share of first per half earned we the per and second in XXXX. these

in quarter. each of So, let's take look a performance segments the the at

the level quarter earnings with our in share in per was of $X.XX $X.XX the in there. second earned partially XXXX. business share A of necessary transmission higher share quarter of of compared XXXX, cents transmission second by facilities electric per investment counts offset Our higher

increased England, the electric $X.XX higher higher storm by in activity the offset quarter O&M, the XXXX. medical business due expenses. COVID XXXX, by was higher The per Our with of fact share Higher XXXX the taxes. The earnings quarter now returned per area. second expenses higher worst in many midst second medical second that is XXXX, and were worst our share the in employee depreciation, England, of of partially to in was largely distribution $X.XX quarter being quarter of New medical in this of the in routine but mostly second the to in in were revenues earned compared canceled, largely of COVID distribution in O&M driven appointments property normal New the

Our natural of business earned XXXX. in quarter per gas and the XXXX share both distribution second $X.XX

As relatively neutral quarter. second tend New have the in you utilities in know, natural to gas England results

to announced business, of Connecticut, distribution Service revenues utilities that previously customers and be Massachusetts, XXXX. next year, or NESC the second XX,XXX water share New per Our Hampshire. in $X.XX both XXXX expect quarters a New water bolstered England Company and NESC. approximately by number owns of we of acquisition small Beginning in Aquarion, Aquarion serve earned

the to before close currently year. this of end its continue We customers. the to transaction expect are reviewing benefits State the and regulators to acquisition

and Our in segment both second quarter modest parent had companies losses years. other

amended that X, our we guidance in issued we May. that earnings to see Turning Slide can you reiterated have

We Connecticut this to share relating $X.XX earnings our performance of of towards continue ongoing devastating in million the to charge We recorded lower to expect in the year. Tropical following Storm first quarter guidance. summer. $XX.X $X.XX end last the charge our pre-tax of impact Isaias, This per the a incorporates

to of of storm I start performance penalty XX slides. range – first the authority growth proceedings utilities of in the the We've final that April in updated a of various had that or regulatory summary on X% continue of to the the Connecticut. follow project wind the our PURA public decision new call. financial appendix discussed release also of of storm finalized We associated impact long-term $XX.X our performance mentioned our the offshore I'll upper projects. the million earlier turn that with to I'll summer status EPS a From last in X% quarter half through regulatory civil various we initiatives and our the excluding results, our XXXX,

decision know, you Connecticut appealed have in Court. As April XX Superior we at

You and be pancaking one penalty. reduction held $XX.X the The of That the the proceedings, in it months April Light take distribution of at of was before now have the XX since penalty our to required the a border appeal, decision. A time many but the million full a schedule Connecticut Powers believe in basis forms on conference ROE will effect the that renders violates for of principal of court those we expect point state later law storm top court XX next storm. basis month. also scheduling case a

time the is will August which be XX, PURA including X. testimonial notified in August a than XXXX XX filed the point evidence testimony week, return CL&P’s advance was term on in commenced proceeding for distribution hearing this the Additionally, applicability on term of schedule indicates the no that scheduled may XX hearings October currently A the decision The continue be certain may next issues, ended XX. in for penalty applicability this docket the August date its hearing, in penalty. rate just parties X.XX% at months X of distribution and later month. supplemental reduction additional of X.XX%. X, March temporary presented was in basis authorized May that ROE for of written

the goal its Regardless you aggressive this update goals. regulators and of Connecticut docket million common providing rate our to electric safe, status to the this service reliable carbon of proceeds. as help a we and continue reduction nearly state review, with of will customers X.X share clean meet We and energy

Utilities. submitted Joe to Turning we electric earlier. mentioned two our the July initiative other Department vehicle proposals X, to Public Massachusetts, On of

goal. initial see us to was in closely, more we of began the the investments back that we've on power much X, XXXX. and this The extension implementing of phase conditions the DPU Slide you allowed As of distributed outages, first installation assist the first with can plan modernization have an grid on communications advanced energy Massachusetts wireless and made nearly of we're reduce would important monitor that in the And Massachusetts is with XXXX XXXX take with number approval further an other introduced peak the the territory. resources $XXX new six X.X information we investment service data the the energy neutrality benefits, critical the call and program in DPU from our electric state's to be steps million same period embark the implement our technologies clean Massachusetts infrastructure element mentioned first in to allow enabling us previously, We along through metering docket, on asking as investments a the management for $XXX XXXX full year be to carbon to at a achieving network, customers, capital to over media program million range system, project effort million In These $XXX the demand losses. this expand and XXXX to throughout improve other earlier The line for AMI substation reducing CL&P support through to DPU of for investment goals. are another line I that month, should of automation, communications, million customers. a loss looking submitted Connecticut the how including associated system. programs to customer XXXX have Reducing is scope XXXX.

at Although deliver, acknowledged schedule the benefits there AMI no this currently, time. potential for has substantial the PURA that is for full docket can

want Hampshire’s Service temporary proceeding of Eversource application Massachusetts the costly as and report. changed have Parent were outlook application Columbia Eversource of Gas reduction later year. to PSNH, purchased in Gas that Standard actions. Gas to stemming such to that happy you been an recognizing & the the to turn the changes Poor's borrow at Moody's as for affirmed Moody's outlook for long-term Connecticut, with level Eversource negative in DPU the filed this primarily developments. much the markets. in from to to Thank Also, for outcome recent long-term borrowing Hampshire. expect these call customers the Public debt not Isaias assets we last issue both decision Eversource Massachusetts. hourly understand New Like up distribution changed million recently Gas I'll Gas would over New has recent in well. proceedings NSTAR outlook, in we the Jeff through We're Moody's agency cover recently believe the rate year's CL&P’s a this last regulatory on We and will and financings related constructive docket We Massachusetts just I year, negative. to and very In Eversource joining Finally, Gas, less and pleased $XXX rate rating and the months, expect are Yankee And these former us ongoing to We rating be of this Since Company of we private morning. borrowing at we ultimately exclusively Q&A. Parent. subsidiary penalty

Jeffrey Kotkin

you, going questions. to to Thank your And the turn you how call Brandon to enter I'm back Phil. remind to just

Operator

Thank you. [Operator Instructions]

Jeffrey Kotkin

Brandon. you, Thank

morning, Shahriar question Our is Guggenheim. Pourreza first morning from Good Shahriar. from this

Shahriar Pourreza

Good morning, Good Jeff. team. morning,

Jeffrey Kotkin

morning. Good

Joe Nolan

morning, Good Shah.

Shahriar Pourreza

recent sounds sort more know something period points for starting the to basis RE a it notices one of open parties the with PURA the versus reduction, penalty like, the for Just XX door perpetual. and defined petition you more of

a us versus will, think then should this we to about, you be for kind remind You you And how opening, a of forward? watching just know, here know, what reduction fixed sort again, indefinite. should we, if of going length

Phil Lembo

is Sure, Phil. Shah. This

that penalty. and term the testimony the open of on submit the is recently they docket parties did As of could the PURA I mentioned, applicability the notify

be the using a know, consideration you to is that language what would of So, initial indefinite. term a as the word there me indicates was

you think penalty. I that's a a So, for in development positive setting of terms the know, specific, term

So, sort that the in of came last indicates out information there. week, the docket, file information the

what a, There's be changes So, a is the should know, be we on is that there effective any is continue order that that docket. November in of looking there, current out with process you timeline. an for you there know, issued October an would areas the will expectation X

Shahriar Pourreza

XXX redevelopment obviously then, state. of offshore of logistics it. has proceeding, eye Thank XX else right, by million, from peer And State shifting lastly, everything that. issues supply the Connecticut roughly there sounds some for keeping know, side, to of you just the million of remain, had it is, to and starting the maybe increases, kind of you unknowns? cost paid Got New that and or wind on you're and London kind just any But kind like chain is logistics kind an with

Joe Nolan

Yeah, that. is Shah. I'll Joe. take thanks, This

do work it’s have underway water Port. inspections. is some well. there So, our at absorbing. very, state just the week the Last funding. onshore all is out were Any the very increases, We those London finalized state of New We for permits, going the

feel are very, we very chain, now that. any impacting with there are And that regard three no supply issues good So, to projects. about of our

of projects have locked everything All down. the

about So, we feel good that.

Shahriar Pourreza

had. Thanks, That's perfect. guys. I quarter. Pretty all Okay, cut clear

Joe Nolan

you. Thank

Jeffrey Kotkin

Thanks Shah.

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

Unidentified Analyst

on guys. morning, It's good Jeremy. Hi, actually the [Ryan]

Joe Nolan

Ryan. Hey,

Unidentified Analyst

with progress and is making and Island kind know, kind kind making know, you're guys are terms of some South you to the maybe agreements this of process kind of you offshore to, specifically, want thinking the wanted process an on on other those in fishermen, of some of you of, the have guys of, kind progress making Just the, with I been have the relationships? a on script about you issue Rhode latest with get just the kind kind of Fork the deciding during stakeholders, talked we of start of about and in the

Joe Nolan

well obviously And question, think decision York, you the for got as had some, decisions from good a and So, Massachusetts. a, as we've in thank dialogue [CRMC] the Ryan. you positive path July positive lot a got there. there received we down in in New And I know, of We've forward. a down we've

or clear, feel and think about we least at it. we a is pretty path the So, the lot concerns, of good

Unidentified Analyst

timeline just maybe just of kind wandering then finish UI Connecticut, prospects, kind on in know, the there, of of you in of stakeholders say, kind we these front? And coming over we of potentially in be the issues with their some out you're terms might one thinking saw and kind on maybe settling of some seeing about terms somebody line get that what, settlement of

Joe Nolan

Sure.

you obviously know, something a settlement us. speaking, to attractive So, is multi-party generally broad that's

We history the XXXX Yankee of whether case, rate it's have or in rate merger settlements, the CL&P a NSTAR case. or the long

good in time think folks good So, feel that. I Connecticut. parties. And, that and place. out been you know, has you reduced temperatures are been know, most we spending multiple with my about have We've the of in certainly a I

we I prove need know there. We know, think, ourselves down you to that.

storm, I lot through, to know, the think, recent was really show that, you changed for passed us of our good things a was one have business. tropical which a Elsa, exercise for

us. We So, large something attractive was, to a and to see that is settlement approved. [indiscernible] by pleased that's were was settlement

So, we there. some possibilities see

Unidentified Analyst

Makes it. stop I'll there. my question. for Thanks answering Got sense.

Joe Nolan

Thank you, Ryan.

Jeffrey Kotkin

Thank you, Ryan.

question Next morning, from Chopra Durgesh. from Evercore. is Good Durgesh

Durgesh Chopra

Hey, you. morning, Jeff. good Thank

the expect and the finalized this rate did final just that's effective that's you to reduction where stands Connecticut well, there], well? as reduction or addressed that when for you know, back [number [indiscernible] you're the going on wondering as guys order [indiscernible], the temporary docket, I’m docket, rate not Just

Joe Nolan

the the testimony you about the from Durgesh, broke intervener Are that you talking bit up in? on little went questions. a

Durgesh Chopra

The correct. equity That's exactly right. ledger. That's

Phil Lembo

this Yes, Phil. is

that that and course our of know, and certainly, testimony question as testimony as well to – the the you During proceeding, witness. input was own we provided there

I would going questioning, proceeding in it that nature be you of being So, expect by that know, forward. could it part the considered of somehow the

specific to there. that is So, there's no area decided be

was by PURA. a section a just Connecticut witness, It’s was of the that's it the that think EOE EOE. filed I testimony a

So…

Durgesh Chopra

that CapEx be the the that Phil, Got plans? XXX what XXX quick would it. to you Thank you. million mentioned just incremental in million helpful. current That's AMI Massachusetts, clarification of to filing portion maybe And then

Phil Lembo

Connecticut in have five-year no in for forecast in CapEx currently We AMI Massachusetts. our or

So, any in spending incremental. be state either would

Durgesh Chopra

of, – is from Got what or just formal sort decision means, in do – is a no, or just that response final it? you see yes Massachusetts we this GPU? like, like of sort And do the the mid-XXXX are or feedback a

Phil Lembo

No, we expect a decision in XXXX.

is as an this estimate stage. good any as mid-year at know, You

a, this long decision know, been know, So, Commission, has to a you of infrastructure. need you certainly I of sort standing think our desire, have on metering a we the make

timing the is So, good.

a we So, expect decision mid-year in XXXX. fully

Durgesh Chopra

Thanks, perfect. appreciate Much guys. Okay, the time.

Jeffrey Kotkin

Thanks, Durgesh.

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

Julien Dumoulin-Smith

there's Good to flip bit, morning, and puts answer takes. about too various Thanks up probably How because I'll you about level a seven, lot little are you your And or variety different opportunity your I'd confidence about pieces you you the the off here bit a to of as do and think team. of under five question there's the of for talked pick history accordingly and about many a you you've that that executing last of, a little about half connect. upper the, think well, talk sort moving point-out a in scenarios to Maybe half the tree various it the here? scenarios, let curious decision and when potential? think here. scenarios to upper pathway be

Phil Lembo

Julien. Thanks,

in forecast, our very our our five-year, our I'm confident ability growth As achieve expectations. long-term we to see

management for don't a mentioned, that any and that and issues go process do manage your puts As always opportunities. other company are as takes. team. what that's address what there And a as way as we would and you That's look do

takes any are our puts there can our forecast I ability to that So, occur various achieve course targets. over am period, of the and confident but in

Julien Dumoulin-Smith

wind Maybe we highest the coincident after these each level would that on construction increasingly you I'll lining now any this to more [in here, opposed logistics offshore just suppose, against Got up given projects focused here, that Shah’s back or other to as around I that they're of parallel]? back be it. should considerations the be, there. observation question leave Excellent. coming subject to subject, given question

Joe Nolan

perfect you. We Thank feel morning, Nolan. are Joe our Good in great scheduled timing, formation. Yeah. we about Julien, feel really a the projects

So, constructed to we allow do in us. what be really on a of mobilization, projects orderly opportunity a there these that's very able demobilization there's to And think excites fashion. to lot be

three is actually definitely yeah, there. timing is opportunity perfect them. all of So, The for

Julien Dumoulin-Smith

the Right, to settlement excellent. I this in you to earlier. in extent to including perhaps all the rate on a – sort settlement, context question And then variety, lastly, just can your and coming of back comprehensive resolve appreciate here. of know case next filing which comments Curious potential manner, year, I and some,

Just that more, subject mind? a you if tad don't on want to push just

Joe Nolan

had that you to Julien, success comprehensive. know, I quite at an we've, are can you Yeah, the the to think get opportunity do you've we know, our something think to to it's We with, confident table, that see loss we've in that settlements will is at We possible past. and attractive if feel acknowledge down if, obviously that I got, parties now. very, very obviously number the Connecticut of definitely parties. settlement and right a obviously be here, relationships is a have time great busy comprehensive we It a the

I'm know, you so, And optimistic.

Julien Dumoulin-Smith

and of luck best efforts. Well, those much very thank right, All you on excellent.

Joe Nolan

Thank you.

Phil Lembo

Julien. you, Thank

Jeffrey Kotkin

Thanks, Julien.

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

Paul Patterson

guys. good How Hey, morning, you doing?

Phil Lembo

are Good. Paul, how you?

Paul Patterson

Alright.

up the of you what for – be you the the on the and this key on specific – to, ones what us focus the wondering, being are feeling question a Connecticut, on Joe about were sticking give for Julien's parties the issues should to know, been issue might for us just you pick and just resolved? settlement. potential month key are we think probably there ago, and points did what Because, what how as having said, a So, are the or the sort optimistic are? I'm – you about Could ones that

Joe Nolan

we've mean, it's parties the with. I same Sure. dealt that

attorney office. You’ve the general's got

in are parties, You folks you with some dealt if the that would into we did that have the the got obviously, be And, past. I the know, see you OCC, mean, these settlements. deep, we've would enter same we that

Paul Patterson

things of key are any people key on is that's there more issues that points? causing points sticking others? or key that And than issue the are the an Okay. are focused That

Joe Nolan

wouldn't points. any I specific issues. say, no sticky No, There’s there's

Paul Patterson

you stuff, rate or, we Okay. how regulatory in sort guys outlook think proceeding timing, but before detailed, of of hearing, And terms how and the to should case, a you about, very think should about? occurred which know give we

Joe Nolan

any know, the you point, occur as process. at you you on can settlements know, know, Well,

we I, let run regulatory their, it's hard me need and for of course. to kind say, things So, certain to

Paul Patterson

downgraded, other the covenants Okay. out if affiliate, obviously anything I the other, else or mean, any thinking are potential, called is you be downgrade cost we there And impacts anything anything or ratings guys of than about sort other we thinking then potential borrowing, on but there on trigger you than Is of the you know, else? be should that, should about? obviously,

Phil Lembo

are other know necessarily doesn't And negative triggers Paul, we mean play that No, all being there outlook here. for come that clarification, into I downgraded. you're just to going think no be that on

like agencies see areas. the progress to certain think I particular in

regulatory So, you sort the know, Connecticut of of in they lowering was, in the a area of area. terms sort highlighted that outlook they,

outlook. that, get they you're rates, the view if could lot a credit dockets there a you in that onto move those as on rating And going back positive to So, stable agencies a going the mean downgrade put than are of doesn't there. direction that

but So, to no nonetheless, effect. in something would triggers other happen, were are if be there that

Paul Patterson

Thanks good weekend. guys. Okay, Most much, a of so been have the Have questions answered. great.

Phil Lembo

Thanks, Paul.

You too.

Jeffrey Kotkin

Good Andrew. Weisel morning, from is Next Scotia. question from Andrew

Andrew Weisel

for good everyone. risks, would numbers, the they on I'll sheet. about ratings following balance were coming agency's versus but morning, by affect downgrade, not the plans equity specific I how your expect the there question the don't the I that of if agencies. the know regulatory Maybe in concern debt mix years? is Hey, exactly to last that up But start

Joe Nolan

hypotheticals you I happen. Well, there. of lot there's if a that it's, mean, know,

You adjustments I'd really see to that – know, don't say, any something do I a decision, terms at we're approach financings. in what impact in to be? stage So, capital our our plans to have the what or debt looking regulatory of would any to what of this make have there we in structure was our

a that financing is million is dividend million, do had that we reinvestment on some longer-term better identified way to about of a it, had $XXX we identified of then over period that something $XXX we're ATM we As on years out $XXX a equity plan. year you there out couple And million basis. additional about know, of we ago still a of periodic our plan issuing that saying

So, we out don't any some are highlight have capital but stage, doing the at continuing financings, we're dribbling to equity do I and would long-term that structure. changes of specific this then

Andrew Weisel

storms, can protocols give Joe, to positive toward some question. initiatives planning outages? specific help of you're from feedback opened changed any next and you've to are remarks then the out talking dividend and prepared strategies roll about here, that you the new Okay, you your if that ways examples additional minimize preparation response your [indiscernible], there to

Joe Nolan

Andrew. you, sure. Yeah, Thank

are those priorities in – communities to of impactful, types One of priorities also will kind in have the most their public items – that's the terms allows that each addressed. put safety, a their think I have as the portal of the communities crews rolled roads], of to allowed community [block communities out system we based of in

of That's I and not just were pandemic we Isaias to had towns. that able – So, goes say the prior something some those the we the of of back is, we in that the these you are know, have would Isaias. located with do to done other to really because each folks are piece what cities

double single to lockdown. to that of needed everything. recovery a As at was have you vehicles. know, rooms. challenging very time, very, we We everybody very effort, We And hotel workers It point workers a it was had complex have matter. in in had in was single because

had last more back when things kind event, of little know the very the towns received. system. on was of out very talk the normal. very, lot a mean, cities and I were all had I to a very, we an of to opportunity And had I several you this we that well were deployed, to feedback Elsa, I had was which portals So, positive. technology we the received and

Andrew Weisel

you great. [hopefully], won't soon. tested too That's anytime the Thank [next you. Best level], helpful. hopefully But going won't of Okay, luck to it bad. be be

Jeffrey Kotkin

Andrew. you, Thank

Next question Sophie. from Good KeyBanc. morning, Karp is Sophie from

Sophie Karp

not sound you stab they've wanted from to take dealing doomer, know, where [line] commission level but you again, forums know, a room Hey, taking been even Difficulty] while? normal, morning, frequent around where maybe this I each normal as that all [Technical penalties goes the a and to a sorting beyond my seen] you you storm for different the but say like new the securitizations performance Is predictable, don't we type at for trackers with on I that of there kind [what question. mechanisms more for there good forward? a some like dialogue through angle, as for the consecutive individually become but have slightly may of a Connecticut, Thank sort belt real have a and hurricane a in and Any through regulatory for guys. is stuff? has room there it's for have. go storm new a you framework past That's the the just, and to establishing are where or

Phil Lembo

Sophie. Thanks,

discussed. a Securitization that’s Some time-to-time. of been items certainly have from up those was come topic

You know, usually be storms, what In we our storm, what proceeding level collect and last of at CL&P, terms and on appropriate settled rates a, costs, know, in of you're service, mechanisms deferral rate in your cost spent was looking costs, the proceeding, a storm activity a at right of storm what's all in there. to you lot might time in your and etcetera. rate you but of know, where in Connecticut,

stable move for long going know, as an around, opportunity can what's as remain rates, that still the there's customer way and that forward. recognition been you collecting So, making possible, there's but a costs best these these costs of sure

recovery, so spending to right to have the try continue dialogue so job recover, you you you discussions the, is know, to not areas the the we've on and we this effective quickly various do know, nothing capital So, but, an table you remotely. and in cost and had those se, of to the management of, vegetation And will terms our specifically at technologies on we’ve before on continue. we do that customers topics. restore on to kinds on per do of know, There's spent, get one will recovery storm you discussions that means know, try storm stage, we

year the to vegetation system open on in So, our and just, to trees you cross we up know, remove – million management, rights spend a $XXX away, etcetera.

have So, the guess possibility. best to best to not the is outage have that's the it. I best

additional has work done we of lot dialogue states, to an on. area our have be continue, you for But think, So, we'd requests can Connecticut, a there's a in in other know, but tree and that as that, to do the been Commission like to still funding. receptive that's we continue

Sophie Karp

you. Thank

Jeffrey Kotkin

Sophie. Next – you, thank

question is Morgan Next David Arcaro Stanley. from David? from

David Arcaro

management Connecticut, things, the and mentioned, in but more seems there's forward storms last deploy OEM going of side follow-up more taking you Hey, CapEx system reliability, that opportunity good trimming, of for a vegetation which to thinking, of quick hardening is for just the to on questions. much kind on lower Thanks of if impact there my morning. so A more investments wondering line in tree look capital to Connecticut?

Joe Nolan

tracking, under. We have Connecticut sort right an do of operate capital we program have reliability approved now that that in we safety

in other the states, too. in do we other as So,

be not enhance spend have you is – prevent technologies outages or quickly. there recover again, an in money on to that that So, ability to, new. We to outage do our the do event would

to there So, mechanism opportunity, and an a do that. is place in we currently have

David Arcaro

you, was dates specific what sunrise, schedule Shifting – you the that crystallize those comfort Thanks. of the was on Okay, it there to year’s, you to got I specific saw and years? it. put for revolution gave progress let out quarter just the wind, that this kind clarify, offshore to wanted

Joe Nolan

as you go soon first with Orsted our we get clarification, we more the say date, partners develop, I’d off know, would back moved with driver. primary work a schedule. you that's we Yes, as the and We've when and said, know, we said,

in the of place. in revolution we case So, certainly, that we wind, have

to soon it's sunrise, For get place. in

cautiously BOEM ago. I certain, on guess, till We've out we're, movement, did, to more we and more seen now of that but a that know, clarity we is see you dates on optimistic be it. we have information more year and wait So, have date we'll much than to

David Arcaro

makes sense. That it. Got

wondering could infrastructure of table kind of on? last have Massachusetts just, as the and offshore projects any your lean there me to to project? on one, Are online there the for the just potentially if positioning the you next bring quick especially comes advantages RFP be as you you might for Let competitive thoughts wind there's able your other might that some

Joe Nolan

Sure.

at evaluating look state all now, like right when we're plan know, know, there. fits how you our it into You RFPs, for

to well We have as expect other it. states

So, consideration. under it's

David Arcaro

so much. Great. Thanks

Joe Nolan

Thank you.

Jeffrey Kotkin

Thanks, David.

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

Steve Fleishman

of years, that able guess, way curious, is what? morning. there's kind just Hey, in Connecticut file different rate on, with, this if that Thanks. Apologize good you just know, might that lot of a of to, asked to four you there to you settlement, happen know, is part if that and be, to has matter something no be case need every deal a to a could or this was of get I that if issues you point settle the a

Joe Nolan

Absolutely. on the we something any This that's something was morning, a that definitely settlement. type of If could would to put that the is comprehensive That important Yeah, Good be of Joe. parties, Steve. Steve. part table. was

Phil Lembo

more a And that, it rates. the I'll review mandate, – really appears add legislative that's and Steve, of to requires it to

if sort that settlement, the there's that requirement, that the as deemed if of there legislative information – would know, care be review that is review, take year of could you So, a four but more space. of a in

Steve Fleishman

it. that's That was color, Got it. helpful No, Thank Phil. you.

Jeffrey Kotkin

we're We in folks any Great. Thank like set. have don't Looks Steve. more the queue. all you,

joining us to So, for we today. want thank everybody

us us follow any wonderful up, weekend. a a got give send call an please you've email have and or If

Operator

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

may You now disconnect.

Eversource Energy (ES) 30 Jul 212021 Q2 Earnings call transcript