false 0000072741 8-K 2024-02-13 false 0000023426 ¨ ¨ ¨ ¨ 8-K 2024-02-13 false 0000013372 ¨ ¨ ¨ ¨ 0000315256 ¨ 8-K 2024-02-13 false ¨ ¨ ¨ 0000072741 2024-02-13 2024-02-13 0000072741 es:TheConnecticutLightAndPowerCompanyMember 2024-02-13 2024-02-13 0000072741 es:NstarElectricCompanyMember 2024-02-13 2024-02-13 0000072741 es:PublicServiceCompanyOfNewHampshireMember 2024-02-13 2024-02-13 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 13, 2024 (February 13, 2024)

 

Commission

File Number

Registrant; State of Incorporation

Address; and Telephone Number

I.R.S. Employer

Identification No.

     
1-5324

EVERSOURCE ENERGY

(a Massachusetts voluntary association)

300 Cadwell Drive

Springfield, Massachusetts 01104

Telephone: (800) 286-5000  

04-2147929
     
0-00404

THE CONNECTICUT LIGHT AND POWER COMPANY

(a Connecticut corporation)

107 Selden Street

Berlin, Connecticut 06037-1616

Telephone: (800) 286-5000  

06-0303850
     
1-02301

NSTAR ELECTRIC COMPANY

(a Massachusetts corporation)

800 Boylston Street

Boston, Massachusetts 02199

Telephone: (800) 286-5000

04-1278810
     
1-6392

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

(a New Hampshire corporation)

Energy Park

780 North Commercial Street

Manchester, New Hampshire 03101-1134

Telephone: (800) 286-5000  

02-0181050

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:
Registrant Title of each class

Trading

Symbol(s)

Name of each exchange on

which registered

Eversource Energy

Common Shares, $5.00 par value per share

ES New York Stock Exchange
The Connecticut Light and Power Company None N/A N/A
NSTAR Electric Company None N/A N/A
Public Service Company of New Hampshire None N/A N/A

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

 

Emerging growth

company

Eversource Energy ¨
The Connecticut Light and Power Company ¨
NSTAR Electric Company ¨
Public Service Company of New Hampshire ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Eversource Energy ¨
The Connecticut Light and Power Company ¨
NSTAR Electric Company ¨
Public Service Company of New Hampshire ¨

 

 

 

Document Type 8-K
Document Period End Date 2024-02-13
Amendment Flag false
CIK 0000023426
THE CONNECTICUT LIGHT_Written communications ¨
THE CONNECTICUT LIGHT_Soliciting material pursuant to ¨
THE CONNECTICUT LIGHT_Pre-commencement communications pursuant ¨
THE CONNECTICUT LIGHT_Pre-commencement communications pursuant ¨
Document Type 8-K
Document Period End Date 2024-02-13
Amendment Flag false
CIK 0000013372
NSTAR ELECTRIC_Written communications ¨
NSTAR ELECTRIC_Soliciting material pursuant to ¨
NSTAR ELECTRIC_Pre-commencement communications pursuant ¨
NSTAR ELECTRIC_Pre-commencement communications pursuant ¨
CIK 0000315256
Public Service Company_Written communications ¨
Document Type 8-K
Document Period End Date 2024-02-13
Amendment Flag false
Public Service Company_Soliciting material pursuant to ¨
Public Service Company_Pre-commencement communications pursuant ¨
Public Service Company_Pre-commencement communications pursuant ¨
   
   
   

 

 

 

Section 2Financial Information

 

Item 2.02Results of Operations and Financial Conditions.

 

On February 13, 2024, Eversource Energy issued a news release announcing its unaudited results of operations for the three- and twelve-month periods ended December 31, 2023 and related financial information for certain of its subsidiaries as of and for the same period. A copy of the news release and related unaudited financial reports are attached as Exhibits 99.1 and 99.2 and are incorporated herein by reference thereto.

 

The information contained in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission (“SEC”) nor incorporated by reference in any registration statement filed by Eversource Energy or any subsidiary thereof under the Securities Act of 1933, as amended (the “Securities Act”), unless specified otherwise.

 

Section 7Regulation FD

 

Item 7.01Regulation FD Disclosure.

 

On February 14, 2024, Eversource Energy will webcast a conference call with financial analysts during which senior management will discuss the company’s financial performance through the fourth quarter of 2023. The webcast will be accessible from the Investors section of the Eversource Energy website at www.eversource.com. Attached as Exhibit 99.3 and incorporated herein by reference are the slides to be discussed by Eversource Energy during the conference call.

 

The information contained in this Item 7.01, including Exhibit 99.3, shall not be deemed “filed” with the SEC nor incorporated by reference into any registration statement filed by Eversource Energy or any subsidiary thereof under the Securities Act, unless specified otherwise.

 

Section 9Financial Statements and Exhibits

 

Item 9.01Financial Statements and Exhibits.

 

Exhibit
Number
Description
99.1 News Release of Eversource Energy dated February 13, 2024.
99.2 Unaudited Consolidated Balance Sheets as of December 31, 2023 and 2022; unaudited Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021; unaudited Consolidated Statements of Income for the three months ended December 31, 2023 and 2022; and unaudited Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021.
99.3 February 14, 2024 presentation slides.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

2 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

 

  EVERSOURCE ENERGY
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(Registrants)
   
February 13, 2024 By: /s/ Jay S. Buth
    Jay S. Buth
    Vice President, Controller and
    Chief Accounting Officer

 

3 

 

 

Exhibit 99.1

 

 

Eversource Energy Reports Full-Year Results

Announces Exploration of Sale of Water Distribution Business

 

HARTFORD, Conn. and BOSTON, Mass. (February 13, 2024) – Eversource Energy (NYSE: ES) today reported a full-year 2023 loss of $(442.2) million, or $(1.26) per share, compared with full-year 2022 earnings of $1,404.9 million, or $4.05 per share. Eversource also reported a fourth quarter 2023 loss of $(1,288.5) million, or $(3.68) per share, compared with fourth quarter 2022 earnings of $320.2 million, or $0.92 per share.

 

Results for the full year and the fourth quarter of 2023 include after-tax impairment charges of $1,953 million, or $5.58 per share, and $1,622 million, or $4.63 per share, respectively, related to Eversource Energy’s offshore wind investment. In addition, results for both years include other after-tax non-recurring costs and charges that totaled $6.9 million for the full year of 2023 compared with $15 million for the full year of 2022.

 

2023 Non-GAAP EPS of $4.34 – Focus on Core Electric and Natural Gas Distribution and Transmission Businesses

 

Excluding the charges noted above, Eversource Energy reported non-GAAP earnings of $1,517.7 million1, or $4.34 per share1, for the full-year 2023 and $333.5 million1, or $0.95 per share1, in the fourth quarter of 2023, compared with $1,419.9 million1, or $4.09 per share1, for the full-year 2022 and $322.3 million1, or $0.92 per share1, in the fourth quarter of 2022. Eversource’s core distribution and transmission businesses are well positioned to deliver solid operational and financial results as we move forward in supporting the region’s transition to a cleaner energy environment.

 

Full Exit of Offshore Wind Business

 

With the announcement today of the sale of South Fork Wind and Revolution Wind to Global Infrastructure Partners, the agreement reached with Ørsted for the sale of Sunrise Wind and the completed sale of the uncommitted lease area last year, we now have the pathway to a full exit of Eversource’s offshore wind business. Eversource will continue to hold its existing tax equity investment in South Fork Wind.

 

Potential Sale of Water Distribution Business

 

Eversource’s water distribution business segment comprises a set of valuable, well-performing and well managed assets. Although the business has been earnings accretive to Eversource, a potential sale of the water business is an opportunity to reduce equity needs and improve regulatory diversity. With its $1.3 billion rate base as of December 31, 2023, the water business is likely of substantial value to another owner as part of a larger strategic water business or infrastructure platform. As a result, Eversource plans to launch a process evaluating market interest in a transaction for this business segment, with the objective of delivering greater value to all stakeholders. Eversource cannot provide assurances regarding the ultimate outcome or the timing around this process.

 

 

 

 

“Aquarion has been a meaningful investment to Eversource, and I appreciate the hard work and dedication of the Aquarion team and its leadership. The company is well recognized and respected for its operational excellence in the water distribution business,” said Joe Nolan, Eversource Energy Chairman, President and Chief Executive Officer. “The Aquarion team truly shares the Eversource values of customer commitment and stewardship of the environment.”

 

Eversource Energy is focused on building the necessary transmission and distribution infrastructure for the clean energy future that its customers and states desire. We continue to work constructively with stakeholders to improve the regulatory environment in Connecticut to provide customers with a high level of safe, reliable and cost-effective investments.

 

Also today, Eversource Energy projected 2024 non-GAAP earnings of between $4.50 per share and $4.67 per share. The Company also projected that its compound annual earnings per share growth rate from its regulated businesses would be within the range of 5 to 7 percent through 2028, using the adjusted $4.34 per share1 earned in 2023 as the base year. Eversource anticipates its equity issuances of up to $1.3 billion over the next several years, in combination with the potential sale of its water distribution business segment.

 

“Although we experienced great challenges over the past year, our core utility operations completed an excellent year owing to the dedication of our 10,000 employees in providing safe and reliable service to our 4.4 million customers,” said Nolan. “Our focus remains on improving our already strong service metrics, making the required investments to modernize the region’s energy delivery system and enabling our clean energy future while enhancing our balance sheet condition.”

 

Electric Transmission

 

Eversource Energy’s transmission segment earned $643.4 million in 2023, compared with earnings of $596.6 million in 2022. Transmission earnings were $167 million in the fourth quarter of 2023, compared with earnings of $140.7 million in the fourth quarter of 2022. Transmission segment results improved due to a higher level of investment in Eversource’s electric transmission system.

 

Electric Distribution

 

Eversource Energy’s electric distribution segment earned $608 million in 2023, compared with earnings of $592.8 million in 2022. Electric distribution earned $103.7 million in the fourth quarter of 2023, compared with earnings of $97.9 million in the fourth quarter of 2022. Improved full-year and fourth-quarter results were due primarily to higher revenues from investments in our distribution system and a base distribution rate increase for Eversource’s Massachusetts electric business, partially offset by higher operations and maintenance (O&M), interest expense, property taxes and depreciation. Fourth-quarter results also included the benefit of a seasonal rate design impact in Massachusetts that has no impact on annual results.

 

Natural Gas Distribution

 

Eversource Energy’s natural gas distribution segment earned $224.8 million in 2023, compared with earnings of $234.2 million in 2022. It earned $76.5 million in the fourth quarter of 2023, compared with earnings of $87.1 million in the fourth quarter of 2022. Lower full-year results were due primarily to higher depreciation, interest expense, and a higher effective tax rate, partially offset by higher revenues. Lower fourth-quarter results were due primarily to higher O&M and depreciation expense, partially offset by higher revenues.

 

 

 

 

Water Distribution

 

Eversource Energy’s water distribution segment earned $33.1 million in 2023, compared with earnings of $36.8 million in 2022. The water distribution segment earned $5.7 million in the fourth quarter of 2023, compared with earnings of $7.4 million in the fourth quarter of 2022. Lower full-year and fourth-quarter results were due primarily to higher depreciation, O&M and interest expense.

 

Eversource Parent and Other Companies

 

Eversource Energy parent and other companies earned $8.4 million1 in 2023, compared with a loss of $(40.5) million1 in 2022. It lost $(19.4) million1 in the fourth quarter of 2023, compared with a loss of $(12.9) million1 in the fourth quarter of 2022. Improved full-year results primarily reflect a lower effective tax rate and a benefit from the disposition of Eversource’s interest in a clean energy fund and a resultant contribution in the first quarter of 2023 to the Eversource Energy Foundation, partially offset by higher interest expense. Lower fourth-quarter results were due primarily to higher interest expense, partially offset by a lower effective tax rate.

 

The following table reconciles 2023 and 2022 fourth quarter and full-year GAAP earnings per share:

 

      Fourth Quarter   Full Year 
2022  Reported EPS  $0.92   $4.05 
   Higher electric transmission segment earnings in 2023, net of dilution   0.07    0.12 
   At the electric distribution segment, higher revenues in 2023, partially offset by higher O&M, interest expense, property taxes, and depreciation, net of dilution   0.02    0.03 
   At the natural gas distribution segment in 2023, higher depreciation, interest expense, and a higher effective tax rate, partially offset by higher revenues, net of dilution   (0.03)   (0.03)
   At the water distribution segment, higher depreciation, O&M and interest expense   (0.01)   (0.02)
   At Parent and Other companies in 2023, a lower effective tax rate, partially offset by higher interest expense   (0.02)   0.15 
   Impairment charges of Offshore Wind Investment   (4.63)   (5.58)
   Lower other non-recurring charges   -    0.02 
2023  Reported EPS  $(3.68)  $(1.26)

 

Three months ended:

 

(in millions, except EPS)  December 31,
2023
   December 31,
2022
   Increase/
(Decrease)
   2023 EPS1 
Electric Transmission  $167.0   $140.7   $26.3   $0.47 
Electric Distribution   103.7    97.9    5.8    0.30 
Natural Gas Distribution   76.5    87.1    (10.6)   0.22 
Water Distribution   5.7    7.4    (1.7)   0.01 
Eversource Parent and Other Companies1   (19.4)   (12.9)   (6.5)   (0.05)
Impairment of Offshore Wind Investment   (1,622.0)   -    (1,622.0)   (4.63)
Reported (Loss)/Earnings  $(1,288.5)  $320.2   $(1,608.7)  $(3.68)

 

 

 

 

Full year ended:

 

(in millions, except EPS)  December 31,
2023
   December 31,
2022
   Increase/
(Decrease)
   2023 EPS1 
Electric Transmission  $643.4   $596.6   $46.8   $1.84 
Electric Distribution   608.0    592.8    15.2    1.74 
Natural Gas Distribution   224.8    234.2    (9.4)   0.64 
Water Distribution   33.1    36.8    (3.7)   0.09 
Eversource Parent and Other Companies1   8.4    (40.5)   48.9    0.03 
Transaction and other charges   (6.9)   (15.0)   8.1    (0.02)
Impairments of Offshore Wind Investment   (1,953.0)   -    (1,953.0)   (5.58)
Reported (Loss)/Earnings  $(442.2)  $1,404.9   $(1,847.1)  $(1.26)

 

Eversource Energy has approximately 350 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.4 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.

 

CONTACT:

Robert S. Becker

(860) 665-3249

 

Note:  Eversource Energy will webcast a conference call with senior management on February 14, 2024, beginning at 9 a.m. Eastern Time.  The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com.

 

 

 

 

1 All per-share amounts in this news release are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings discussion includes financial measures that are not recognized under generally accepted accounting principles (non-GAAP) referencing earnings and EPS excluding the impairment charges for the offshore wind investments and certain transaction, transition and other charges. EPS by business is also a non-GAAP financial measure and is calculated by dividing the net income attributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding for the period. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in Eversource Energy’s assets and liabilities as a whole. Eversource Energy uses these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain results without including these items. This information is among the primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of the impairment charges for the offshore wind investments and transaction, transition and other charges are not indicative of Eversource Energy’s ongoing costs and performance. Management views these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in analyzing historical and future performance of the business. These non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s reported net income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance. This document includes statements concerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Forward-looking statements are based on the current expectations, estimates, assumptions or projections of management and are not guarantees of future performance. These expectations, estimates, assumptions or projections may vary materially from actual results. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; our ability to complete the offshore wind investments sales process on the timelines, terms and pricing we expect; if we and the counterparties are unable to satisfy all closing conditions and consummate the purchase and sale transactions with respect to our offshore wind assets; if Sunrise Wind does not win in the OREC contract solicitation process; if we are unable to qualify for investment tax credits related to these projects; if we experience variability in the projected construction costs of the offshore wind projects, if there is a deterioration of market conditions in the offshore wind industry; and if the projects do not commence operation as scheduled or within budget or are not completed, disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bodies; substandard performance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors.

 

Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource Energy undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

 

###

 

 

 

Exhibit 99.2

 

EVERSOURCE ENERGY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF (LOSS)/INCOME

(Unaudited)

 

   For the Three Months Ended December 31, 
(Thousands of Dollars, Except Share Information)  2023   2022 
Operating Revenues  $2,694,238   $3,029,740 
           
Operating Expenses:          
Purchased Power, Purchased Natural Gas and Transmission   935,329    1,295,796 
Operations and Maintenance   513,141    486,431 
Depreciation   343,363    308,535 
Amortization   (51,657)   30,248 
Energy Efficiency Programs   160,145    159,342 
Taxes Other Than Income Taxes   235,370    227,150 
Total Operating Expenses   2,135,691    2,507,502 
Operating Income   558,547    522,238 
Interest Expense   231,300    186,765 
Impairments of Offshore Wind Investments   1,766,000     
Other Income, Net   85,090    90,834 
(Loss)/Income Before Income Tax Expense   (1,353,663)   426,307 
Income Tax (Benefit)/Expense   (67,058)   104,269 
Net (Loss)/Income   (1,286,605)   322,038 
Net Income Attributable to Noncontrolling Interests   1,880    1,880 
Net (Loss)/Income Attributable to Common Shareholders  $(1,288,485)  $320,158 
           
Basic and Diluted (Loss)/Earnings Per Common Share  $(3.68)  $0.92 
           
Weighted Average Common Shares Outstanding:          
Basic   349,938,891    348,786,307 
Diluted   350,167,959    349,267,768 

 

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to shareholders about Eversource Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

 

 

 

EVERSOURCE ENERGY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF (LOSS)/INCOME

(Unaudited)

 

   For the Years Ended December 31, 
(Thousands of Dollars, Except Share Information)  2023   2022   2021 
Operating Revenues  $11,910,705   $12,289,336   $9,863,085 
                
Operating Expenses:               
Purchased Power, Purchased Natural Gas and Transmission   5,168,241    5,014,074    3,372,344 
Operations and Maintenance   1,895,703    1,865,328    1,739,685 
Depreciation   1,305,840    1,194,246    1,103,008 
Amortization   (490,117)   448,892    231,965 
Energy Efficiency Programs   691,344    658,051    592,775 
Taxes Other Than Income Taxes   940,359    910,591    829,987 
Total Operating Expenses   9,511,370    10,091,182    7,869,764 
Operating Income   2,399,335    2,198,154    1,993,321 
Interest Expense   855,441    678,274    582,334 
Impairments of Offshore Wind Investments   2,167,000         
Other Income, Net   348,069    346,088    161,282 
(Loss)/Income Before Income Tax Expense   (275,037)   1,865,968    1,572,269 
Income Tax Expense   159,684    453,574    344,223 
Net (Loss)/Income   (434,721)   1,412,394    1,228,046 
Net Income Attributable to Noncontrolling Interests   7,519    7,519    7,519 
Net (Loss)/Income Attributable to Common Shareholders  $(442,240)  $1,404,875   $1,220,527 
                
Basic (Loss)/Earnings Per Common Share  $(1.27)  $4.05   $3.55 
                
Diluted (Loss)/Earnings Per Common Share  $(1.26)  $4.05   $3.54 
                
Weighted Average Common Shares Outstanding:               
Basic   349,580,638    346,783,444    343,972,926 
Diluted   349,840,481    347,246,768    344,631,056 

 

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to shareholders about Eversource Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

 

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT FEBRUARY 14, 2024 CUSTOMER COMMUNITY FINANCIAL EMPLOYEE CLEAN ENERGY RELIABILITY Exhibit 99.3

 

 

DRAFT 02/08/2024 EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Safe Harbor Statement 1 All per - share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings discussion includes financial measures that are not recognized under generally accepted accounting principles (non - GAAP) referencing earnin gs and EPS excluding the impairment charges for the offshore wind investments and certain transaction, transition and other charges. EPS by business is also a non - GAAP financial measure and is calculated by dividing the net income attributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding for the period. The earnings and EP S o f each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in Eversource Energy’s assets and liabilities as a whole . Eversource Energy uses these non - GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain results without including these items. This in for mation is among the primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of the impairment charges for the of fshore wind investments and transaction, transition and other charges are not indicative of Eversource Energy’s ongoing costs and performance. Management views these charges as not directly related to t he ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on net income attributable to common s har eholders and EPS, management believes that the non - GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to re aders in analyzing historical and future performance of the business. These non - GAAP financial measures should not be considered as alternatives to Eversource Energy’s reported net income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance. This document includes statements concerning Eversource Energy’s exp ect ations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forw ard - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward - looking statements through the use of words or phrases such as “esti mate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward - looking statements involve risks and uncertainties that may cause actu al results or outcomes to differ materially from those included in the forward - looking statements. Forward - looking statements are based on the current expectations, estimates, assumptions or projections of m anagement and are not guarantees of future performance. These expectations, estimates, assumptions or projections may vary materially from actual results. Accordingly, any such statements ar e qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our fo rwa rd - looking statements, including, but not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal informatio n o f our customers; our ability to complete the offshore wind investments sales process on the timelines, terms and pricing we expect; if we and the potential purchasers are unable to reach the definitive agreemen ts necessary to consummate the purchase and sale transactions; if Sunrise Wind does not win in the OREC contract solicitation process; if we are unable to qualify for investment tax credits related to the se projects; if we experience variability in the projected construction costs of the offshore wind projects, if there is a deterioration of market conditions in the offshore wind industry; and if the projects d o n ot commence operation as scheduled or within budget or are not completed, disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly; changes in economi c c onditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities ; a cts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local , s tate and federal regulatory, public policy and taxing bodies; substandard performance of third - party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate chang e; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in , o ur water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting s tan dards and financial reporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors. Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They a re updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov . All such factors are difficult to predict and contain uncertainties that may materially affect Eversource Energy’s actual res ults, many of which are beyond our control. You should not place undue reliance on the forward - looking statements, as each speaks only as of the da te on which such statement is made, and, except as required by federal securities laws, Eversource Energy undertakes no obligation to update any forward - looking statement or statements to reflect eve nts or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Agenda Business Update ▪ Offshore Wind Divestiture ▪ The Future of Eversource – Operational Excellence – Enabling the Clean Energy Future for Customers – Leading ESG 2 Joe Nolan Chairman, President & CEO John Moreira EVP, CFO & Treasurer Financial Update ▪ 2023 Financial Results ▪ Offshore Wind Impairment ▪ Regulatory Update ▪ 2024 – 2028 Outlook ▪ 2024 Earnings Guidance

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT FEBRUARY 14, 2024 Chairman, President & Chief Executive Officer Joe Nolan

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Offshore Wind Update Sale Process ▪ We have entered into two agreements for the sale of our offshore wind investments – South Fork Wind and Revolution Wind: Global Infrastructure Partners (GIP) – Sunrise Wind: Ø rsted ▪ South Fork tax equity investment will remain with Eversource ▪ Impairment charge reflects current fair value of the projects: – Includes potential abandonment of Sunrise Wind Construction Update ▪ Installation of 12 th and final turbine underway ▪ South Fork Wind commenced power delivery to LIPA in November 2023 4 South Fork Wind 4

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT New England’s largest investor - owned water utility ▪ Approx. 241,000 customers in CT, MA & NH ▪ ~92% of customers based in CT ▪ 2023 rate base of $1.3 billion; represents 4% of ES consolidated ▪ 2023 Net Income of $33 million; represents 2% of ES consolidated 5 Balance Sheet ▪ Book equity: $1.3 billion ▪ Goodwill: $960 million ▪ Debt: $926 million ▪ Completed acquisition December 2017

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Financial and Operational Excellence 6 2021 2022 2023 2024 $2.41 $2.55 $2.70 $2.86 $3.86 $4.09 $4.34 $4.50 - $4.67 Financial Trend Dividend Recurring EPS Average months between interruptions (MBI) 22.3 System average interruption duration (SAIDI) 58.6 Injury rate per 100 employees (DART) 0.8 On - time emergency response 98.0% Top Decile Among Peers Better Than Industry Average 20% Reduction from 2022 Exceeds Mandated Emergency Response Requirements ELECTRIC RELIABILITY SAFETY GAS RESPONSE * Estimate

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Enabling the Clean Energy Future for Our Customers ▪ Electrification plans result in New England electric demand more than doubling by 2050 ▪ New England winter peak electric demand is expected to more than triple by 2050 ▪ New England electric demand growth has been relatively flat over the past decade 7 Massachusetts ▪ Electric Sector Modernization Plan ▪ Future of Gas ▪ Geothermal Pilot Connecticut ▪ Engaging with stakeholders to advance Connecticut’s clean energy goals New Hampshire ▪ Evaluating Benefits of Clean Energy Projects such as Large - Scale Solar ▪ Discussing Performance - Based Ratemaking

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Eversource is an Industry Leader in Environmental, Social, and Governance 8 ENVIRONMENTAL HIGHLIGHTS Reducing GHG Emissions From Our Operations and In The Region ▪ Carbon Neutral By 2030 ▪ Commitment to a Science Based Target ▪ Industry - leading energy efficiency programs ▪ Utility - owned solar ▪ Offshore wind interconnection ▪ Reducing high dependence on fossil fuels through EV infrastructure buildout, heating conversions ▪ Enabling third - party renewable buildout GOVERNANCE HIGHLIGHTS Expanded Board Governance, Environmental and Social Responsibility Committee Charter ▪ Committee responsibilities include oversight of climate, environmental, human capital management and social responsibility strategy, targets, performance, and related public reporting ▪ ESG corporate performance metric reported to Board ▪ Newly created Climate Scorecard used to report progress against targets and management strategies for climate impacts to the business SOCIAL HIGHLIGHTS Actions That Care for People and Engage Stakeholders ▪ Developing a workforce that fully reflects the diversity of the people and communities we serve ▪ Created strategic workplans as part of the annual business and workforce planning process to address immediate and long - range needs to ensure that we acquire, develop, and retain excellent talent ▪ Committed to the health and economic well - being of the residents, businesses and institutions we serve

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT FEBRUARY 14, 2024 Executive Vice President, Chief Financial Officer & Treasurer John Moreira

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 2023 vs. 2022 Financial Results 10 4Q 2023 4Q 2022 4Q Change Full Year 2023 Full Year 2022 Full Year Change $0.47 $0.40 $0.07 $1.84 $1.72 $0.12 0.30 0.28 0.02 1.74 1.71 0.03 0.22 0.25 (0.03) 0.64 0.67 (0.03) 0.01 0.02 (0.01) 0.09 0.11 (0.02) (0.05) (0.03) (0.02) 0.03 (0.12) 0.15 $0.95 $0.92 $0.03 $4.34 $4.09 $0.25 (4.63) 0.00 (4.63) (5.60) (0.04) (5.56) $(3.68) $0.92 $(4.60) $(1.26) $4.05 $(5.31) Electric Transmission Electric Distribution Natural Gas Distribution Water Distribution Parent & Other (Non - GAAP) EPS, Ex. Wind Impairment, Transition/Transaction and Other Costs (Non - GAAP) Wind Impairment, Transition/Transaction and Other Costs Reported EPS (GAAP)

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 2023 Offshore Wind Impairments Drivers 2023 Pre - Tax Impairment: ~$2.17 Billion Q2: $400 Million ▪ Lower sale proceeds from the three offshore wind projects Q4: $1.77 Billion ▪ ~$1.22 Billion related to Sunrise Wind: – $800 million in additional charges assuming Sunrise Wind is not selected in 2024 New York solicitation and is abandoned – $420 million related to lower sales proceeds and higher project costs ▪ ~$545 Million related to Revolution Wind: – Lower sales proceeds and higher project costs 11 $400 $1,220 $545 $215 $1,950 $0 $500 $1,000 $1,500 $2,000 $2,500 2023 Pre-Tax Impairment Tax benefit 2023 After-Tax Impairment OFFSHORE WIND IMPAIRMENT COMPONENTS Q4 Revolution Project Q4 Sunrise Project Q2 Sunrise, Revolution, South Fork Projects

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Offshore Wind Fair Value by Project 12 (Millions of Dollars) Sunrise Wind Project Revolution Wind Project South Fork Wind Project Total Carrying Value as of December 31, 2023, before Impairment Charge $700 $800 $300 ~$1,800 Fourth Quarter 2023 Impairment Charge ~$(1,220) ~$(545) $0 ~$(1,765) Projects Fair Value as of December 31, 2023 ~$(520) ~$255 $300 ~$35 South Fork Tax Equity as of December 31, 2023 ~$480 Offshore Wind Fair Value Investments as of December 31, 2023 ~$516

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Regulatory Update Massachusetts ▪ Received approval for recovery of 100% of storm costs ($136m) ▪ Received approval of PBR/K - Bar filing ($105m) without modification ▪ Filed for approval of 5 - Year Electric Sector Modernization Plan New Hampshire ▪ Received Final Order approving nearly 100% of storm costs for storm events occurring in 2020 and 2021 ($47.2m) ▪ Finalized Consolidated Communications pole transaction ▪ Expect to file a request for rate review in mid - 2024 Connecticut ▪ Filed Prudence Review of 2018 - 2021 Storm Costs in Connecticut ($634m) ▪ Oral Arguments held on Aquarion Rate Case Appeal on January 11, expect a decision soon 13

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT $1,115 $1,207 $1,448 $1,200 $1,207 $1,053 $1,166 $1,146 $1,244 $1,354 $1,772 $2,009 $1,869 $2,051 $2,006 $1,770 $799 $804 $998 $1,044 $1,087 $1,142 $1,089 $1,079 $144 $155 $162 $169 $204 $218 $234 $251 $239 $266 $213 $225 $234 $223 $202 $239 $3,541 $3,786 $4,593 $4,647 $4,601 $4,687 $4,697 $4,485 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities $ In Millions $23.1 Billion 2024 - 2028 Projected Capital Expenditures for Core Businesses 14

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT $4,089 $7,016 $4,217 $850 $884 $4,626 $7,935 $4,362 $825 $884 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Electric Transmission Electric Distribution Natural Gas Distribution Water IT and Facilities Feb. 2023 Plan Feb. 2024 Plan No Change $ in Millions Up $537 million Down $25 million Up $145 million Up $919 million Increased Investment Needs to Better Serve Our Customers 15 NOT INCLUDED ▪ ESMP incremental spend in MA ▪ AMI, Energy Storage, Grid Modernization in CT ▪ Significant onshore grid enhancements to enable offshore wind resources to reach load centers ▪ Clean technology investments for natural gas alternatives $1.6 Billion Increase in 2024 - 2027 Core Business Investments Since February 2023 Plan 15

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 36% 32% 42% 41% 18% 22% 4% 5% 2022 Rate Base Projected 2028 Rate Base $25.4 billion* $39.6 billion* * Rate base estimates exclude certain CWIP balances which totaled approximately $1.3 billion at the end of 2022 and are expected to increase to approximately $2.6 billion by the end of 2028 Rate Base Growth Driven by Core Businesses – Current and Future Transmission Electric Distribution Natural Gas Distribution Water 16

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Key 2024 Earnings Drivers 2024 EPS Guidance: $4.50 - $4.67 ▪ Transmission capital investments ▪ Base rate changes in MA and NH ▪ Lower operations and maintenance expenses ▪ Lower effective tax rate 17 ▪ Higher depreciation and property taxes from increased investment ▪ Higher interest expense ▪ Share dilution

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Offshore Wind Sales Proceeds South Fork and Revolution Sale Proceeds ▪ Realization of ~$1.1 billion for 50% interest in South Fork and Revolution Wind Projects in 2024 – Includes $170 million of the 10 percent ITC adder for Revolution Wind project South Fork Tax Equity Investment ▪ Realization of ~$500 million over the next 24 months Sunrise Sale Proceeds ▪ If Sunrise is successful in 4th Offshore Wind Solicitation in New York 18 Expect to monetize majority of cash flow in 2024 Cash Inflows Description Timing Amount Revolution and South Fork Wind Projects 2024 (At Sale Close) $930 million ITC Adder for Revolution Wind 2024 (At Sale Close) $170 million South Fork Tax Equity Investment 2024 and 2025 ~$500 million Total ~$1.6 billion Sunrise Sale 2024 and 2025 Not Disclosed

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Funds From Operations to Debt 2023 - 2025 Drivers 19 OSW proceeds /Tax Equity Investment Collection of deferrals Storm cost recovery Planned rate increases Equity issuances 2023 FFO/Debt 2024 - 2025 FFO/Debt 14% - 15% at S&P Water Sale

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT $2.65 $2.81 $2.96 $3.11 $3.25 $3.45 $3.64 $3.86 $4.09 $4.34 $4.50 - $4.67 2014A* 2015A* 2016A 2017A 2018A 2019A* 2020A* 2021A* 2022A* 2023A* 2024E 2025E 2026E 2027E 2028E * Reflects non - GAAP results, excludes nonrecurring charges 20 Well Performing Core Businesses Drive Long - Term EPS and Dividend Growth of 5 – 7% Through 2028

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Serving Our Customers’ Needs Today, Tomorrow, and for Years to Come Delivering for Customers Today… Enabling the Clean Energy Future Delivering Clean, Reliable Energy and Water …Preparing for Customers Needs Tomorrow Electric Reliability Gas Pipeline Safety Renewable Energy Electric Transmission Storm Response Geothermal Pilot 21

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT APPENDIX 22

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT Status of State and Federal Regulatory Reviews Electric Transmission (Federal Energy Regulatory Commission) 43% of 2023 regulated earnings ▪ Annual formula rate filing for electric transmission rates submitted to FERC on July 31st ▪ Pending FERC decision on New England transmission ROEs dating back to 2011 in 4 open cases – Earnings reflect allowed base ROE of 10.57% plus a 50bps adder for RTO membership and maximum ROE for any single project of 1 1.7 4% Electric Distribution (CT PURA, MA DPU, NHPUC) 40% of 2023 regulated earnings ▪ CL&P: Settlement approved in October 2021 – No base rate change could have occurred before at least January 1, 2024 – Authorized capital structure (53% common equity) and ROE (9.25%) remain in place – Certain reconciling mechanisms continue to operate such as revenue decoupling, electric system improvement, and energy effici enc y ▪ NSTAR Electric: Rate review order issued in November 2022 – Authorized capital structure of 53.21% common equity and authorized ROE of 9.8% – Performance - based ratemaking approved for a 5 - year term – First Base Distribution Revenue Increase of Performance - Based Rate Plan, totaling $105 million effective January 1, 2024 ▪ PSNH: Operating under rate settlement that took effect in January 2021 – The last of three step increases was effective November 2022 Natural Gas Distribution (CT PURA, MA DPU) 15% of 2023 regulated earnings ▪ NSTAR Gas and Eversource Gas of MA operating under 10 - year and 8 - year rate plans, respectively – Most recent distribution increases were effective November 2022 – Eversource Gas of MA settlement reflects a base distribution change on November 1, 2024, reflecting capital investments throu gh 2023 ▪ Yankee Gas prior rate case occurred in 2018 – Certain reconciling mechanisms continue to operate, such as revenue decoupling and gas system improvement Aquarion CT: (CT PURA) 2% of 2023 regulated earnings ▪ Rate case appeal pending Superior Court decision; Permanent stay granted 23

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT $470 $393 $332 $255 $279 $194 $567 $450 $526 $640 $838 $903 $410 $357 $349 $158 $49 $49 $1,447 $1,200 $1,207 $1,053 $1,166 $1,146 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2023A 2024E 2025E 2026E 2027E 2028E CL&P NSTAR Electric PSNH $ in Millions Other concepts under development Projected Transmission Capital Expenditures 24

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT $4,139 $4,371 $4,441 $4,495 $4,499 $4,510 $3,900 $4,241 $4,515 $4,886 $5,321 $5,799 $1,747 $2,022 $2,271 $2,448 $2,485 $2,433 $9,786 $10,634 $11,227 $11,829 $12,305 $12,742 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2023A 2024E 2025E 2026E 2027E 2028E CL&P NSTAR Electric PSNH $ in Millions Other concepts under development Transmission Rate Base Growth Projections 25

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT MA Clean Energy Projects 26 Networked Geothermal Pilot ▪ Installation work progressing ▪ Target on - line in Q2 2024 Massachusetts Solar Project ▪ Expanded solar ownership opportunities ▪ First three projects under DPU review Distributed Energy Resources ▪ First cluster for interconnection upgrades approved, awaiting decisions on remaining five clusters ▪ Targeting completion of these projects four years from the decision dates Electric Sector Modernization Plan ▪ Three new investments proposed over a 10 - year period to improve Resiliency of our system, integrating additional Solar, and a Technology Platform to enable resources to provide grid reliability services

 

 

EVERSOURCE ENERGY YEAR END 2023 EARNINGS REPORT 2023 Parent Debt and Equity Issuances and Maturities Company Size/Coupon Maturity Parent $450M @ 2.80% May 1, 2023 Parent $350M @ SOFR + 25 bps. Aug 15, 2023 Parent $400M @ 3.80% Dec 1, 2023 2023 & January 2024 Debt Issuances 2023 Maturities Company Size/Coupon Maturity Parent $750M @ 5.45% Mar 1, 2028 Parent $550M @ 5.45% Mar 1, 2028 Parent $450M @ 4.75% May 15, 2026 Parent $800M @ 5.125% May 15, 2033 Parent $800M @ 5.95% Feb 1, 2029 Parent $350M @ 5.00% Jan 1, 2027 Parent $650M @ 5.50% Jan 1, 2034 New Shares ▪ $1.2 billion At - The - Market Program issued 2.17M shares at a weighted average price of $92.31 in 2022 with proceeds of approximately $200 million ▪ No additional shares issued in 2023 Treasury Shares ▪ Dividend reinvestment, employee equity programs continue with approximately 950,000 shares issued in 2022 ▪ Approximately 1.1M additional shares issued in 2023 2023 Equity Issuances 27