ES - Earnings call transcript Q2 2022

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Operator

Good morning. Thank you for attending today's Eversource Energy Q2 2022 Earnings Conference Call. My name is Alexis, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]. to with conference Eversource. like host, to now Kotkin Jeff would pass over the our I

You proceed. may

Jeff Kotkin

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

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

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

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

Chief John Executive Speaking today our and and Vice Joe Officer; CFO. President be President will our Nolan, Executive Moreira, and

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

Joe Nolan

this season another morning. time plans investors summer that you off everyone having and some for have you, couple us on after a thank this are our joining Thank hope weeks. in earnings Jeff, call good on of concludes I for this call and

New many mountains. a with are days so shoreline our our summer England, sunny along and far in We enjoying glorious

here of this urge of businesses. a made you hundreds support summer, thousands do so If and you we haven't trek to

short and all longest to the the number a relatively reliability continues decade, with in in strong Through our the few significant be top to gas of have a to they This has excellent. in past in sustained for and our Over evidence to outages customers. well, continues the average natural Massachusetts been duration top have key of infrastructure our power of about a performance our and quartile. us our enhance continues the to metric system industry June, heatwave year. safety place service Response electric that decile calls, reliability interruptions place electric business, is very gas our time to Eastern weeks investments between distribution in months the average operated benefit

Sustainability Turning to our weeks Slide and linked posted and to our report two Equity ago, we X. Inclusion About report. XXXX Diversity, it

year. new is report this DEI Our

provide year, to our are about past hiring, a detail Over way decided best We retention we the the that that high us. investors organization promotion others transparency number statistics around about employees, a highlights requested both variety that investors The including create additional a rates, our diversity, DEI our and of and among of the provide the last feedback welcome of separate for to is our report more and reports. information and areas highlights focus a Sustainability diversity on increasing and in successful our areas. your this with our that new Sustainability Board. report year accomplishments We significant our management our providing

initiatives greenhouse major by focuses, perspective, to gas XX% X the energy to Scope validation in emissions. a enhance Slide by have report to to extent, The report and very emissions From our third X three state's of continue captures significant area. efforts We goals a Eversource's this support XX% on our Scope again to XXXX. X party our and of reduce clean

on X,XXX commissioned Provincetown value Electric an quarter in in for when project helped XXXX, customers. the approximately its almost was avert Cod of outage immediately NSTAR it Our second battery showed and Cape storage

We investment. have first filed recent legislative regulated generation our solar application most authorization company's for under the

approval would different would to which combine in projects, seeking battery altogether, of Brockton, it's storage. Massachusetts. and They build. three with of are to solar in Warren $XX estimated Eastern And all be We an cost Yarmouth expected located million

nearly been that businesses network for Massachusetts. a both connect review. We route our apartments, progress to regulators of The homes provide XXX and Gas Customer the located strong, recent up rate project those on approved heating Framingham, in with XX% along to system the Massachusetts pilot. will cooling. very continue geothermal has NSTAR will It geothermal unique signing will to project project most and receptivity the be that the in

We continue be to in project operational XXXX. to expect the

materials buyers wind potential to on Slide disseminated offshore developing to XX% be strategic interest wind want Turning offshore investments. on progress our I in have on We've update X, to that working we for you will marketing review the our joint our of with on closely Ørsted the venture. our made been

year. process the non-disclosure interest materials. that discussions of to robust have target engineering expect continue to document Thus make the [indiscernible], In and continue preliminary steady review this for we We projects. had a an had sales on buyers developed, We outreach confidentiality process. meantime, very have potential our continue. with we this kicked independent been far, high by off and agreement, recently and outcome end progress our buyer Key level to including have of memorandum, three other and expect materials

South first Fork project enter construction. is to the

York. We are virtually Hampton, public sections roads with beneath the complete the New East in

the the where megawatt XXX substation on are connect. the in onshore the sections will project We rapidly on now railroad right-of-way progressing

XXXX. of portions will South offshore the reminder, be a built Fork As in

granting Sunrise and and a project operate. Board July decision in service and Island approving Revolution to to two Energy projects, Wind Facility X, fully in Wind, On larger Rhode license in to expect the Siting continue Revolution and order the We be 'XX Wind in XXXX. issued be construct to permitted final to the a

megawatts total New As a the Connecticut supply Rhode and of XXX Island Island. and Rhode into North tie grid in reminder, Revolution Kingstown, will England to a

continues procurement As three May. we've Slide up offshore demand with on on this of you project in October The grow for to a in progress solicitation for side our by an additional in, offshore just year of requires XX% the costs made enacted XX% Rhode from to region. locked megawatts that recently can the Island wind. generation legislation wind of see XXX X, also X,XXX

states this wind up week Another New looking awarded, approximately we Southern New England. wind authorizations RFP much for larger XX,XXX offshore New the approximately of Including now X,XXX by projects from was megawatts York. York megawatts offshore issued are already to at of and

this are confident to procurement since America, we incredibly proximity attract of and to deep North believe the will attractive in interest wide ocean the public our policy speeds, average with road Ørsted support. moderate wind depths, are level the that investment due to share most about that We that wind tracks in we continue high

legislation in Senate robust New a last sales further and passed Massachusetts that also House process. week should support

to be key to to electric would you allow They plans development program in modernization forefront United pilot As certain vehicles were communities to several up Thanks research as the help path in in in call that support for with components more by John electrification fossil also Slide affirmation see of again buildings. and stay and as wind wind have encourage offshore and in state's megawatts enhance which build your there Massachusetts. I the more should States. competition proliferated that commitment communities now Bill exempt the to of provisions the decarbonisation. installation the from elements and turn to among XX energy housing a increase to of leasing new the also state included bidding the affordability X,XXX was would to in Healthcare that pilot offshore an the would storage offshore incentives XXXX. manufacturing restrict There fuel facilities mid Moreira. assembly solidify in on of the for state, X, time. can developers contract were Massachusetts process to sale wind across over a Massachusetts effort will develop of and would grid the Modification challenges. of There that

John Moreira

you, regulatory XXXX, the quarter Thank activity. Slide will our XXXX with financing This and review second Joe, our recent review start I of X. morning, and everyone. will morning, good developments, discuss I results for

$X.XX second quarter Our the per $X.XX second the of were share in of GAAP earnings earnings XXXX. in of quarter XXXX with compared

Second acquisitions, with quarter per for both results primarily related share acquired from associated $X.XX assets include after-tax years of of Massachusetts. cost the Columbia Gas to an

XXXX share per quarter Excluding the those per of with $X.XX earned in the second $X.XX share earnings quarter in of of compared XXXX. we second cost,

in For a of GAAP the XXXX, half $X.XX of on $X.XX earned per of half compared earnings with basis XXXX. share we the first first per share

XXXX first first of per Connecticut storm a share charges the of we with compared related $X.XX $X.XX earnings the half last to and of per the in for earned acquisition Excluding penalty year, half XXXX. share

some quarter second results Looking segment, with $X.XX facilities. 'XX. at transmission investment details $X.XX quarter share additional in on earned our in starting which transmission electric XXXX our of the level earnings compared the share segment, quarter with were results of per per the of higher second in by second driven Improved by

higher per in results $X.XX were segment XXXX related to costs restoration largely lower partially and distribution earnings $X.XX property higher quarter depreciation, Improved share of offset in compared costs, storm revenues, quarter of with here expenses. electric share Our other by XXXX. second the costs, driven earned by of the taxes, pension and employee-related per

quarter earnings maintenance in depreciation. partially revenues Our pension and per higher share property and 'XX. $X.XX were with of interest were to second operating distribution compared of due second of higher quarter and natural largely the earnings taxes, results gas $X.XX offset in by expense Improved segment the XXXX costs, lower expense,

the earned $X XXXX. second Results earned as of quarter in share of Our $X.XX by the of quarter improved with other of in the per XXXX water companies level for the distribution second second we second Eversource same parent in compared and quarter 'XX. XXXX, the segment million quarter

investments, acquisition the short-term year's transition interest by costs clean offset the share higher per include were debt. Excluding increased last results costs on gains from mentioned long-term energy which and and by largely $X.XX and earlier, on after-tax levels I

to Now our from of a quarter of $X.XX first the per $X.XX XXXX, have $X.XX year on earnings share. perspective that second from an we the we us narrowed XXXX of to have behind non-GAAP the per our $X.XX previous range full sight for more share have to guidance bit half of earnings line and

the that we well pleased XXXX. of Massachusetts have remainder quarter of we the fully the Before June, as moving Overall, NiSource end closed cannot of conversion of on, onto extremely of platform. It we systems the process. legacy Gas transitioned off Eversource of and Eversource the more the of I'm since fourth to announce has in the system be gone proud transaction business

to over exceeded recent been metrics move system. very have customer processes including Feedback business We met consistently financial have information or have our employees and customers our operating XXX converted both Eversource, a the positive new approximately from and expectations. on EGMA to most and

As transition-related will for a result, transaction quarter. be minimal next costs this

We are the period. very of transition this have during received appreciative we NiSource great from support the team

longer term to Turning earnings.

saw call, range. we On also Slide in our including on As in this discussed long-term upper see you X.X billion are release program reaffirming and $XX X% we regulated the Slide billion XX, X, growth we rate investment capital for that our our X% half our of year. regulated reaffirm earnings projected news February five-year our EPS during can capital to

both to forecast, billion our have -- required XXXX, place, that that five-year we last offshore our incremental noted been we the to incremental estimate experience, that efficiently February connect period investments. to and come loss where additional contributions resources. in clean in offset mentioned, the X of of expect investment of that we approximately reliability, soon. earnings over by current areas expect would Joe energy a year May, customer five-year As on need enhance for required we the our we be In current this More the investments wind couple forecast and will front of

has month end and of the we Massachusetts year. in through completed both have rollout. this year. questions earlier to address posed been for NSTAR in later and towards actively on Connecticut Briefing dockets regulators this status in expect provided further update an a that XX, AMI a In Massachusetts the CL&P. Connecticut, AMI this Turning decision we PURA to the At are both Electric expected time, hearings about with department decisions working and Slide held

an XXX application the incremental wind from offshore of able electric most system returns. year. the to The our We mentioned City Park of costs some be of requirements. the on expect for in promote with an we review FERC-based were winner June XXXkV City Wind, rising which PURA's help Separately, selected Massachusetts. we recent Avangrid two would projects by project meet Park of the planning connect about off about into to call, to couple where By reduce collected RFP. also quarter ago wind was upgrades XXX customers. megawatt Connecticut's first innovative to will NSTAR filed for development structure In the a completed involves are together, load million, working upgrades its recovery approved AMI XXX total, million earnings be offshore meeting. FERC application Electric end that an on will is with we which as Park application at March as City already years the that our on FERC be

forward. of wind New emulate project Cape grid expects that this to Cod. going We transmission New is another England expect into reviewing England already there the through agreement opportunities will to ISO be type interconnection other offshore tie

We probably not forecast. City, have Park Cod investment on in there XXX billion our million to reflected $XX wind regulated including about previously current offshore discussed that transmission Cape are that efficiently is capital needs connect of

a to transmission and related segments significant to distribution emissions both as arise since our states greenhouse near critical reducing gas other needs investment renewable future expect the in We transportation. view of heating space and means in electric power

plan the soon, phase regulatory the throughout have of about well good A about On review the rates a rate Commonwealth's underway with XXXX. strength rate case On entering summary as to place very be side, our Slide X letter September. with of week this Hearings one clean filed and effective will XX. July for on the is of Connecticut of cases elements in on X the will general proposals slide. and those well as X, one December shown take and Electric Briefing NSTAR of Aquarion the are of month be rate intent we Key of in feel of last another we Water this XX expected three-year a goals. decision We [ph]. energy to about its briefing our year just concluded the review years enable review shown January filed.

increased to enable in several reliability application infrastructure ended regulatory the was past expect We Connecticut's customers. months during Aquarion XX, the XX company's to its investments X.X% file have And actual the August. about March the for significantly ROE service over XXXX. years water

short-term of X.X billion of interest. Turning and our average in two-year The to Proceeds of sale issued senior relatively due parent were recent maturity our debt of offshore financings, successful June. five-year we notes late debt. used a the to is to short wind reduce anticipation

on year, at the terms $XX.XX at-the-market nearly as quarter XX, billion of X.X price program equity we our have Slide date you In to can this through weighted the of average see of issuances, and second shares million July. in launched X.X issued a

employee dividend plans. to and reinvestment have also treasury approximately our shares We year this issued XXX,XXX fund

received regarding pension We investors obligation. a have from our number of inquiries

year. performance our start an me plans of Let last overview with

Massachusetts earned impact plans transmission to adopted have of participant XX% a billion, plan further gains average three gas It's $XXX for is funded investments. that pension have Our of at and in on pension amounts a losses year. X.XX years distribution nearly mitigated our actuarial XXXX companies and XXX%. over the about the This retirement million and mitigated place smoothing segment. fact expense the about electric we to by our trackers earnings our approximately last service. resulted pension by on into The [ph] our plans future XX% over contributed our of status which we of increasing from return of course And the the in plans

factor doesn't is our well our decade. earnings. closed affects into Additionally, expense for our our strong large unclear our positive And much for slightly lastly, of this The year been and capital time, it has pension returns discount expense whether capitalized of qualified projects will to plan At over affect expense part due our than actually lower in half a rate. Less XXXX pension year, a a the realized pension last earnings. negative expense participants new this for pension we or higher earnings. be is is and

experience expected that rate the XXXX, will XXXX And be While same we pension we significantly higher help in returns we for it realized discount that XXXX, to is will currently. rate the next use as in the unlikely year. using we is that could than expense are lower

is the turn rate pension Jeff. expected much you long-term now As our a very investments over will I assumed Thank in for morning. to call our us reminder, return joining this back X.XX%. And of

Jeff Kotkin

turn to John. your to Alexis you, enter going And to Thank I'm call to questions. the Alexis? how you Great. remind back

Operator

Absolutely. We begin. may now [Operator Instructions].

Jeff Kotkin

All you, right. Thank Alexis.

Our Shahr Guggenheim. from is first Good question morning, this from morning Shahr.

Shahriar Pourreza

really appreciate the I a split projects point. imbalance an can Did risk update? So are we first to Joe, kind process. little deeper take willing you're at COD up, risk And Sunrise it's kind what's if of for of dig since the maybe Or But do into about any know not your structure? the thinking and now? we early, on color of and when construction get sort like development on but any I build where the transfer? quarter and preferred do get that to be you a leases right take would want a exit exit, and Revolution, the you so you

Joe Nolan

summer Good great well. And hear Shahr. going to It's voice. is your hope your morning, I

question. So a couple to of pieces your

New healthy, very as folks imagine. I might There's are tell initial additional had Island deal, concern Rhode recent wind, that. nothing things of we've this excited Washington atmosphere afraid construction the interested Bight leases, discussions, not properties. start then been for XX and started with is has RFP but of you positive news There's we that the risk. no off, the you which wind that folks very inbounds, of this First a the exciting. for in will are since the RFP obviously news, New York York And now year

So the do sale process. going we good think We to It's very, we're to don't have very feel it. in about anything different received. been really well

Shahriar Pourreza

strategic about whether there's provide or around diversifying debating about priorities footprint your England, Can And of the acquiring electric water of Thanks. maybe sort New amount around thoughts outside you interest of business? some Perfect. is you then any of just it. your opportunities. outside how think you think really how just healthy around there some Got around is really lastly, operations been inorganic

Joe Nolan

Yes, great.

So all, wind first where the understand, now, fragmented. The It's that's so the you water just are business. focused piece on we're of we're time. spending right we focused on. love laser business, we what our extremely water That's

you traded were what XX,XXX. really making no we left. are in customer to When in range, XX,XXX very independent really X,XXX England that think feel the water know very, we about. I that. publicly But New That's good companies they're they're acquisitions, virtually

focus gas that will Those and side, footprint, larger our systems. on are with look a been necessitate municipally-owned very customer the systems to systems. capital a reputation our significant just to clear heating we increased some systems space. and have to have these has the So We that expanding would handle electric great in they regard with Connecticut, natural us water of New will difficult it our we in own all. their also platform are upgrading investments think in distribution in the for And transportation increased significant electrification and want facing interest grow, to it electric I some no investments Massachusetts, the that a require loads. Hampshire. very there have our phenomenal systems to not in be on question as in water is an benefits capital. transmission no investment municipal for at That to has Aquarion constraints our footprint. acquisition from substations on increased while compete region in make at radar potential There's

what is two Gas Eversource but XX I Massachusetts EPS and infrequent, think months NSTAR that history our growth And closing, you Mergers want effective ago, to occurs. company risk. ago, years XX that about accretive know years to I to shareholders beneficial customers, when years XX emphasize. it that M&A ago in our highly Eversource added our created the first that's were increased our after and in lowered indicates

risk. We lower are derisking about

opportunities So to that we'll would these Shahr. apply all same pursue, principles we future any

Shahriar Pourreza

color. That's Joe. guys. it, Bye, good I good Have lot a of appreciate a day. Terrific.

Joe Nolan

Yes. Thank you.

Jeff Kotkin

Shahr. Thanks,

question Next Wells. from is Neil from Good morning, Neil. Kalton

Neil Kalton

Yes. for taking Hi, everyone. Thanks the question.

news And get had the you to your guys out day see before be to you And So the and would take could over a see on is this. to offshore wind advantage of Joe, what the that you helpful process, actually something, as wait having with you're kind side. this We looking moving on you others the evaluate particularly would this Eversource, love Washington. sale mentioned forward that? of need in to there have kickoff to pass

Joe Nolan

Yes, I don't think it wait to we to pass. for need

-- feel I very think the move move. that confident Act Inflation it we will will Reduction

lot think see it. of Washington, in discussions around you a lot I support a of

that you think things wind is all quite substantial for in to have and frankly. energy very of -- surfaced businesses, that the projects. and very around it, XXX it. some renewable piece it's the pages to going credits, value all through is every actually our renewable that detailed, each long, very, enhancements Bill the for going This the and But for will favorable that we're we tax and for indications tell our I of create business I is Bill

our is optimistic we help don't around us. exit. need that efforts have we're this not So pause to wind this going will But us our --

Neil Kalton

on there's did. you process seems It suggest quick this this Does the fairly sense be like any one up. interest. play any so long this that apologize or that on And Okay. you I And how will could pretty take that? know quick don't in healthy of mentioned thoughts to sort But remarks, if just if follow out.

Joe Nolan

more would a year, But to around have fourth will be quarter, thereafter. shortly able it will strongly in expect very of feel XXXX. the I execute around color we we hopefully I lot realistically, execute clarity wouldn't the answers XXXX. buyer. share have lot we in we in and would But this that a

Neil Kalton

Perfect. you. Thank

Joe Nolan

Thank Yes. you.

Jeff Kotkin

Thank you, Neil.

next Our Nick. Campanella Credit from Good is from Suisse. question Nick morning,

Nick Campanella

Hi. question. my everyone. morning, Thanks Good for taking

just remarks, a bit that had you tenor little debt just it of your towards issued like you guess go I of first, in the prepared I'm a potentially offshore will So if shorter about, hold-co talked and down kind you sounds paying that correctly. hearing some proceeds

I you about the debt. that's billion in further do deployment the there term? in you just that? How in X.X Is Can with us out to of about near access kind debt So think like earnings You of think help term understand use replacing of offshore capital and proceeds that long about just of more? years? kind talk the paydown

John Moreira

This John. Sure, is Nick.

transaction of some the the kick holding that you company, the look the Those maturities late at will So mid dollars. happen. in, time mature maturities 'XX have pretty at billions and that sizable of we upcoming if have in early, we in will this around that will

So debt that there's more is our doorstep. on

Nick Campanella

the business? the you Okay. in How an guess the impact to for I And just like industry your great Inflation general. tax on it sounds alternative Act, minimum are Reduction of potential thinking then about

Joe Nolan

has only XX been Bill hours The Sure. literally. out

that. we're So going through

have in on still weigh we're write to tax little It's But right if reviewing a the Certainly, unclear minimum that. what is that from We But that now has looking team in. that. have means. surface. a that at we'll we look -- to it's perspective, really a big the check at

Nick Campanella

that And trying to Got to just able actually more I review, I the ultimately of how a you squeeze being timing towards? then it. could, bring if the Is it you in, about it's the Yes, can appreciate kind if just work just rate early. to you're do NSTAR And settlement there? really one table? something feel what's

Joe Nolan

think enough And Sure. litigated the option. ruling docket record, you you I an settlement a guess certainly is But We out. in versus hearings. to raise gravitate I'm our settlement not any to the completed if have need track it at And order feel discussions. we settlement that fully I I information always on to look always proceeding. just

-- about that's that. feel So very I good

Nick Campanella

Have Thank weekend. a right. so All great you much.

Joe Nolan

Nick. Thank you,

Jeff Kotkin

Nick. Thanks,

morning, question Next JPMorgan. Tonet Good from is Jeremy. from Jeremy

Rich Sunderland

Sunderland or is the might Maybe This can any at our looking today. legislation, actually morning. Good distribution with other out enhancements the Massachusetts Rich off climate Thank for legislation, starting of on of that you you're the Hi. to questions distribution some you for on system come taking side? Jeremy. speak that upgrades

Joe Nolan

We've you Thanks, a plan as got, Rich. significant Yes. know, capital around that.

been whether towards AMI in have other We working upgrades it's or investments, these interconnection.

So our nicely that legislation really with what existing plans are. dovetails

So positive desk. the also is is has in from that no dollars. our of but Again, terms hoping before standpoint Sunday. to it's nothing deadline. Governor's heading Sunday get We're changes that signed and the

these are these only days again, So are old. very new,

Rich Sunderland

City the wind script? this of year runway all of that Is more you opportunities? the about spoke upgrades. there. to color think next and about Understood. could some out you do in or question, the evolve Park maybe spoke kind something the appreciate two, the about these I over scope the And particularly on to down the similar the the offshore about in that How wind region, thinking timing you but here transmission side, thinking the coming coming

Joe Nolan

tell I surprised. you, Yes. will pleasantly I've been

this regulated we've our territory. need kind One right point is significant inflection business that which And in of on this is had wind the our interconnections business, of is sweet spot. the of for around reasons there's our our fact such service

year folks every see a interconnect. going clarity to around greater to think greater six every want begin I months, and that to So you're or

service would crown the I what of a, in jewel are say We territories.

are interconnect. the load and centers We it's to the folks in here, load this is that's in Connecticut, is where whether Massachusetts, where folks this -- is where want

get we every more, you, clarity with that talking renewable meeting with transmission that going have on opportunities taking to projects. information time place and for around more you that we're think call think and I and more So this we're I more are and

Rich Sunderland

Got it. time the for Thank today. you

Jeff Kotkin

the questions. for Thanks

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

Steve Fleishman

Good Hi. morning.

get First earnings to I the the from is to still going able get you you'd said sale? Are on just, the with be Joe, quarter that to call, the you is the you ultimately first from question confident wind that proceeds back think offshore case? this that were

Joe Nolan

very are we Yes, confident, Steve. Yes.

Steve Fleishman

Okay. something for not Is of And say pension just on or I of XXXX, or pension, expense John, pension income when overall think kind -- that? expense, sure that you or XXXX that secondly, then minus. versus you it the will mentioned be is plus if

John Moreira

Obviously, it the earned is our in would be is XXXX. we for behind 'XX lagging discount But the what are XXXX, now a significant basis rate. right Steve, expense. comparison change to which returns

would of to So if I status something XXX%. of funded we closer plan today, north move were to the that from to size XXX%

So down than we even could but though in impact. exceed a might XXXX, bit the far that rate returns what in movement discount the earned come

Steve Fleishman

And clear on then of just in question terms -- to Okay. the just proceeds. use of one last be

we when of paydown proceeds the likely debt think offshore versus use from of wind should the outcome sale, use of regulated how at look investments we something versus about likely else? So the

John Moreira

Sure.

get in earlier have maturities So we're term, that as that quite to XXXX. immediately bit do of mentioned cash, going a payoff in I you and are the and we when maturing focus comment, some short

is and has wind capacity gives So will mentioned, that deploy. to we that's with us concerns address regulated for where needed, interconnections incremental to infrastructure But it the that electrification. to are redeploy transmission load as our investments Joe the into certainly accommodate faced

of we're normal -- what update now. kind course you that analysis And we'll of that's the So business. going through

forecast typically February. As we update will you our in know,

on working speak. analysis is we the that as So team

Steve Fleishman

Okay, great. Thank you.

Jeff Kotkin

I Steve. appreciate it. Thanks, Great.

question Kim Goldman. Good from Next from Insoo. morning, is Insoo morning this

Insoo Kim

morning and Hi, happy Jeff. Good Friday.

think XXXX, be so ATM more far, additional the the within get equity on until of you or we offshore wind on contemplating clarity this you're question color you any stuff? how on First roughly issued issuing like might much kind in amounts do

Joe Nolan

Right.

So, line. to it's race not the a Insoo, finish

And so. where of to continue very in we difficult $XX advantage me at we So we be. do next and issued our we'll the to to that It's be question an take exactly answer market did. we'll opportunistic to for what opportunity go knowing if have months, will without five But share. stock the price. close We that's a X.X to

Insoo Kim

is focus made exist, also probably one? And question Okay, of be it I going on well publicly as there's water. got taking side, potentially at would opportunities open that traded a acquisition companies pretty clear Obviously, you then but looking it. lot municipal the the think M&A back you've to if water on the

Joe Nolan

it make a to It's have It's country. Yes, for not to have be to go in to sense across fit, the going to area. us. absolutely. If strategic going going general was we're the

we'd you know, yes, as but to at They So us. absolutely between, look is are certainly very and attractive far very, water few that.

Insoo Kim

Got it. Thank so much. you

Jeff Kotkin

Thank right. you. All

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

Durgesh Chopra

Hi. Good morning, Jeff.

topic, want your on to water the just on Just Joe, brain this. M&A pick

I agreement utilities north $X an Pennsylvania. water So Bucks $X one your of in here or close of County, guess announced to billion billion peer

You water have an experience running the for years now. system Connecticut several

see get outside water are we the the into the states municipal traded you front? water companies. on Could So you in of publicly market neighboring

Joe Nolan

like that road would they be we doing in Absolutely. is going feel states really be states, But you be neighboring just said. traveled. we're next that that business the And They'd to in.

to are I what I you're that it be systems think in of that's and feel they happened seeing, municipalities some water they talking think in it professional And it there to think that it's down think I a to these capital the about over a And you're turn best to seeing us, fantastic that's thought what constraints. would facing just over turn best operator. I operator. probably one Pennsylvania some you're

fantastic I that where [indiscernible] we're happening is think the space. why they our approach and municipalities think a looking that's expertise in think this are seeing region, the opportunities and I operator us that, for it. municipalities did this same and that thing do recognize But in I

will that treatment, that to us, X,XXX customers a platform. these opportunities. $XX or pick you're to to But, up XX,XXX When have transactions also Again, to even million million we small again, range doing $XXX the the attractive municipal they're they're are because of are continue. very lot in So a work.

turn team at We needed that have an really Aquarion incredible around. the expertise has management things to

I think our record stands for itself.

Durgesh Chopra

In Is clarification. the you were clarify in your appreciate billion regulated X on current offshore Got mentioned Can that to was the a the just that? offshore you that hole it. CapEx you earnings? of of sort of square you kind to fill make to on or referring comments sort needed then, offshore. color. John, And front, you that sort quick had of what the That's investments plan. in I I the

John Moreira

gave and once replace of replaced. that the you Sure. to it the with year for said is would would full first to back earnings we guidance of based returns incremental in where that X billion, wind that that contribute between regulator to we The the be X% would of aligns off to divest investments that offshore be we February, operations, we need XXXX. would need the our the expect business X% And we the win

the So cap using take replace is earnings it the those XXX math, at about million, puts do you and X from standpoint XX-XX a structure. a million if to regulated you that what would

Durgesh Chopra

it. Got

in would billion offshore? equal So from the regulated loss earnings X investments

John Moreira

correct. of to offshore of and has the given we mentioned that reaching what system interconnection on in about way Joe we That's renewable the that. and our seeing we've system. level happen resources system feel that That's number. bring investment. to accommodate We're address is between well today's on opportunities reach And that were whole into load transmission to we're X.X. on very call disseminating the billion AMI just we And to electrification, the been our and can and materialize that and just decarbonisation expansion the further confident to distribution then

Durgesh Chopra

Have Excellent. day, Thank you for much guys. the detail. a Very great appreciated.

Jeff Kotkin

Thank you, Durgesh.

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

Andrew Weisel

X% mean offshore. if than slides, The expecting What half growth? EPS would follow can to thanks I that question, If sounds not it more EEI of at to X% be higher first you sound to you. Thank that morning. for all you're on like X Good that billion, to said expect Hi. confident. get you'd up last you least

So that faster able than earnings, earnings backfill you the if you grow wind mean are does to X%?

John Moreira

Well, $X the we're not wind. that billion the we're we our would lose the from today guidance. replace earnings would here investment to What is update seeing that

a So little it's I premature. think

Andrew Weisel

Okay, fair enough.

John Moreira

from it we to growth today. our Andrew, core are be would where business additive But certainly

Andrew Weisel

won't the perspective, Then away it. the got customer obviously Okay, go owner from the if cost of changes. offshore wind

CapEx affordability forward? those think impacts do you moving in projects with still how projects offshore backfilling So addition in base, rate the you're about if to the

Joe Nolan

think the the see is that options you'll for wind available now at and is pricing if of right certainly look some competitive, energy, now right that there you marketplace. than I less very, the in out costly are very

think going that cost I wind. So to is don't be a barrier around

John Moreira

of interconnection, would you socialized. and developer paid million by then, And wind on the offshore I Andrew, discussed not we've what the to today as the remind call that's it relates XXX that

Andrew Weisel

Then just you. of company, in terms are or buyer requirements or of last funny be easily to U.S. could an it the as kind buyer, a maybe good Thank that's buyer? for Okay, be reminder. one question any international there potential the preferences domiciled a

Joe Nolan

restrictions no an could on could local that. be It are a buyer. buyer, there international No, whatever. be It

Andrew Weisel

you. Thank great. Okay,

Jeff Kotkin

Thank you, Andrew.

from Good question David. next Our morning, is from David Arcaro Stanley. Morgan

David Arcaro

taking that utility right morning. the with Good thresholds could for plan? after conversations ability now bit right debt for Thanks to credit basically be lower maintaining question. that the that in you'd Hi. that quite your CapEx if you've sale. thinking any gone got a your have I my And you're you around on how threshold [indiscernible] now, agencies, an to just wondering hit adding spending update got of give on the is rating place what was you've given a seeing chance the

Joe Nolan

David. Sure,

sure So great all with and our three great, agencies review of and you're I'll tell you that, outcome. aware this, that fully annual completed I'm we have overall

total very AMI, addition needle. the to to plan. getting get ATM, treasury The a we wind, also XX%, would contribute do we the from the in that offshore we the about Obviously, As shares. proceeds that so would use to of a million issuance that how Moody's the to it of nicely move the equity we've in discussed and and have have relate XXX

in really do to looking than you impacted, stay the have by metric X.X this execute. Connecticut, the case. costs high Massachusetts to looking been So we we including first know then rate that that that has out honestly, storm And commence And at the recovery, base level a any X/X/XX. rates, carrying. in [indiscernible] we cost storm that can't as of And negatively change earlier with certainly have we're you're plans quite we're

hopeful have early a coming that have place, we were next year case that we remarks, of couple the in that kicking XXXX, our recovery. NSTAR expected we status that two, of we discussed will the to for And honestly, And contributions one So I my fund, for have formal quite are recovery overfunded, the of ability open our years. pension be obviously or and in in be as those any to we the Electric. then over because then adjustments, 'XX, avoid that timing for rate

So we debt. do have a enhance FFO path to to get to

very feel there. that to confident get I able So be we'll

David Arcaro

coming. see be like Thanks or Great. the fund of baseline utility to That's billion need color. kind $X really equity the that clear to helpful. It flow there $X hit for assumption of are more that sounds billion even cash don't plan target improvements CapEx? some that in incremental the any that Should you or for

John Moreira

But align our needs timing wrapped once will our deal capital again, wind the and time. will up, think happen that over of equity that Well, we needs with incremental I get once the offshore we -- we reevaluate spending.

David Arcaro

fair. Thanks Great. so much. that's Yes,

Jeff Kotkin

Thank David. you,

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

Paul Patterson

guys. update. morning, Thanks Good Hi. the for

with time? what's you that hearing out is respect I of wondering the here what to are this expectation question So just getting Governor do or in? might direction guys any legislation, your Massachusetts as the I'm if and of going running sense sort might be sort Just one what was climate anything for to of --

Joe Nolan

jeopardize he standing a considers he of the his way this legacy. that time, He I is Yes. have you. that don't of wants to sends back. and Good he to anticipate of anything think disposed couple a to morning I it's in think sign be But I He realizes what messages legislation. part that. to is he don't favorably not might

think in on that good I we're So shape Bill.

Paul Patterson

Okay.

would So the seeking modifications. about says, that potential of I it do, that's slide, assume. to with I'm just what the sort In of it? guess think wondering kind be Is I right to way would difficult I the wondering. ending, that session was

Joe Nolan

to obviously, that overall it entire in one-offs difficult, type session, wouldn't pocket Bill. kind override individual, messages. jeopardize not would makes He If the say, that. Bill. of change, back kind it the doesn't that formal of they're impact These a sent be of But I'd some

Paul Patterson

Okay, I see.

helpful. -- So okay, in other words that's

could he make words, other in modifications. So

was to them what in those maybe order to got have respond effective, understand I you're I saying. if that thinking Okay, I become the need --? wouldn't to he legislature

Joe Nolan

not here strongly. that of Governor one That's a I surgical a with understands correct. It's in he you've in, relationship up these actually and a will that tell come and legislature. has mature I the He got you really if or felt down. think piece, that can very total is

have he around very Bill. thoughtful, he with that anything does he same I have this very anything the think sent the back, kind will everybody's be already he'll probably about that page. of on And through to deliberate So legislature make sure passed

Paul Patterson

weekend. really much, and appreciate good so Great, it. have a Thanks

Joe Nolan

you. Thank

Jeff Kotkin

Thanks, Paul.

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

Julien Dumoulin Smith

Hi, Thanks question. much team. so the for and taking the time

fully offshore under in understand at what's the be you that line part, And have deployed on I would preliminary timing trying bit, been you here, number of do instance in, me done of can sight and can about little much have I for the talking checking if you how I today, to billion, 'XX through will? offshore, you transmission, I'm about much in there, versus the some to be that at the billion the place pieces When AMI you least capital, the that time? my will? but for 'XX decade, there? displace would talk much idea you contemplated, you that we've elaborate think by timing of on X similarly, but tell how more here, of right? just then if the in sort know And 'XX other that the little the how X.X $X X.X know just what AMI? like if a point billion but point is are, guys impression, of the specifics would is instance, here, by try by the that So billion to a billion in tied just are that bit this that X.X

Joe Nolan

X look capital take that and would have, guidance that the you we're Julien, we giving disseminated, is that by we XXXX, the billion. at number the, forecast if add that

hope So we in XXXX. have of place all these to by investments

from So as Massachusetts. about billion question remarks, start and I've agreements be to both immediately. move Connecticut in a total. working that's vendor honestly, And in formal expect investments. it able we're decision on And we to $X your said to quite to on AMI, those answer we're forward my on with And going

all in it, place. And by certainly could it, interconnections, by then those So be XXXX, the million if good of of portion fully XXXX. be a not will place that on XXX of one, in

accommodate other it's opportunities the infrastructure. to upgrades electrification to really So and our

Julien Dumoulin Smith

Got it. Excellent.

sounds more identified, you've of be sale? at least here would the introducing the that like timeline the timeline it coincident the you've the for So fully of balance sort on for And for announcing parts got line sight with 'XX.

Joe Nolan

our of part as in update Or February. normal

Julien Dumoulin Smith

Okay, all right. Yes, absolutely.

Well, Excellent. I Okay. you thank appreciate guys. it.

Joe Nolan

for your you time. Thank

Jeff Kotkin

Julien. you, Thank

is from Ryan morning, Ryan. question Good Citi. from Levine Next

Ryan Levine

how drag it color process could the does share they're on have this or in What the Ørsted? sale Any Eversource morning. cetera? impact and process you preparation coordinated the tagalong and Good marketing the in rights in these [indiscernible], offshore role does Ørsted stage effort at along wind of playing between et

Joe Nolan

level of anything friends is in we even good and down the good first to on phenomenal also potential that They right us bidders. are arm with very Ørsted They any Well, joined morning you. they around partner. a calls with distribute. us to arm detail

really great do And the whether They with helping any continue in will we them or to front So on don't veto friend. a them, any interconnection business we They're partner. any it's they're our have power. don't restrictions. way. have Obviously,

So very this this piece we very our you should friendly, effort and a very is business. as amicable, coordinated that look of understand at

Ryan Levine

Okay.

to ability rights? they So formal afterwards, offer after you're veto Do the saying no have any a auction? price

Joe Nolan

we they love not. No, And mind wind that do this business. keep in

want this We are to to we continue successful. be wind and them to business support going

nicely very that whoever to going Ørsted. we're fits sure make is the with acquirer So

Ryan Levine

with is contemplated, maybe Eversource for just transaction then And preset require that this to it that. leave a would open there Okay. evaluation somewhat like ended related, be for it

Joe Nolan

part first the catch didn't I of that.

Jeff Kotkin

you Ryan, Yes. could --?

Ryan Levine

minimum you that evaluation -- floor a a is there there require? Is bid

John Moreira

going right. We're to No. test waters, the

We venture. a -- we have we're how current lot of the invested it'll know that the situation. And in value, do, lot premature. it's be joint much market So should we the little expecting we a given given market more more condition a feel

Joe Nolan

Keep lot in seen because New place Bight. obviously we took value, transactions. mind we have line sight York other the that what this of is We've of -- on saw a not in

going rough assets. well it's have going that don't players up is So talking we're value up. players We idea are the a of these it's major if end end this we to not and know to where of where are our about, aware the as very

very, good we very So feel that. about

Ryan Levine

I appreciate the you. Thank color.

Jeff Kotkin

we don't All else right. have the Thanks, it. anybody queue. in Well, Ryan. I appreciate

want to we us. you all for joining So thank

you August any ups, in today. We to If look have follow summer forward and and know us seeing have you let the conferences September, at a wonderful off.

Joe Nolan

Thank you.

John Moreira

everyone. you, Thank

Operator

XXXX the conference concludes participation. you That your QX call. earnings for Eversource Energy Thank

disconnect You your may now line.

Eversource Energy (ES) 29 Jul 222022 Q2 Earnings call transcript