Eversource Energy is a public utility holding company engaged in the energy delivery business through its regulated electric, gas, and water utility subsidiaries, serving residential, commercial, and industrial customers in parts of Connecticut, Massachusetts, and New Hampshire **[0001104659-24-041772_tm2410160-1_s3a.htm:5]**. The company is involved in the development of clean energy projects, including offshore and land-based wind farms, solar farms, energy storage facilities, and bioenergy plants **[0001104659-24-006305_tm244047d1_ex99-1.htm:0]**. Eversource has been active in strategic initiatives, such as selling its offshore wind investments, including its interest in the Sunrise Wind project, to Ørsted **[0001104659-24-037863_tm242691-d2_def14a.htm:56]**. Additionally, the company is considering selling its water business to reduce equity needs and improve regulatory diversity **[ES_3373230_2]**.

1. **Electric Utility Services** - Provides electricity delivery services to residential, commercial, and industrial customers in Connecticut, Massachusetts, and New Hampshire.
2. **Gas Utility Services** - Supplies natural gas to customers in the regions it serves, ensuring reliable and safe energy delivery.
3. **Clean Energy Development** - Engages in the development of renewable energy projects, including offshore and land-based wind farms, solar farms, energy storage facilities, and bioenergy plants.
4. **Water Utility Services** - Offers water delivery services, with potential plans to sell this segment to optimize financial and regulatory strategies.

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6fdff4a71a7c0f174c4eae778f484b3d191572ab41a8bd64bf69cc0ba93c6586

1. Given the regulatory uncertainties in Connecticut, particularly around timely cost recovery for critical investments like the AMI program, how does Eversource plan to manage capital allocation in this jurisdiction, and are you considering further reductions in planned investments if regulatory conditions do not improve?
2. With the approval of your electric sector modernization plan adding $600 million in distribution investments, can you clarify how you intend to fund this increased capital expenditure and what impact it may have on your balance sheet and financing requirements?
3. Considering the sale of Aquarion is a key component of your financing plan and embedded in your FFO to debt targets and EPS growth guidance, what risks do you foresee if the sale does not close by the end of 2025 as planned, and how would this affect your financial metrics and growth trajectory?
4. Given that the expected $500 million benefit from the South Fork tax equity investment is now anticipated to extend beyond 2026, how will this shift affect your cash flow projections and your ability to utilize other tax benefits to meet near-term financial targets?
5. You have raised approximately $1 billion through your ATM program and issued over 15 million common shares to date; with ongoing needs to strengthen your balance sheet and improve your credit position, should investors expect further equity dilution, and how do you balance this with shareholder value considerations?

f3b7be447dcbbcdef7a2df01cc2741581da8fe3a4506ac0d4d01f8d608342c3f

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year 2024 Recurring EPS Guidance**: $4.52 to $4.60 due to higher-than-anticipated interest expense  **[ES_3405774_3]** .
  - **Long-term EPS Growth Rate**: 5% to 7% through 2028  **[ES_3405774_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Earnings Per Share (EPS) Guidance**: $4.50 to $4.67  **[ES_3395672_4]** .
  - **EPS Growth Rate**: 5% to 7% through 2028, based on 2023 recurring EPS of $4.34  **[ES_3395672_6]** .
  - **Equity Needs**: Up to $1.3 billion over the next several years  **[ES_3395672_6]** .
  - **FFO to Debt Ratio**: 14% to 15% at S&P by 2025  **[ES_3395672_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Earnings Per Share (EPS) Guidance**: $4.50 to $4.67 per share  **[ES_3382133_2]** .
  - **EPS Growth Rate**: 5% to 7% through 2028, based on 2023 recurring EPS of $4.34 per share  **[ES_3382133_2]** **[ES_3382133_4]** .
  - **Capital Expenditure Forecast**: $23.1 billion across all business units  **[ES_3382133_4]** .
  - **Equity Issuance**: Up to $1.3 billion over the next several years  **[ES_3382133_4]** .
  - **FFO to Debt Ratio**: 14% to 15% by 2025  **[ES_3382133_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Earnings Per Share (EPS) Growth Rate**: 5% to 7% through 2028, based on 2023 recurring EPS of $4.34  **[ES_3373230_8]** **[ES_3373230_15]** .
  - **2024 Non-GAAP Recurring Earnings Guidance**: $4.50 to $4.67  **[ES_3373230_7]** .
  - **Dividend Growth**: Expected to grow in line with the earnings growth, aligned with the 5% to 7% EPS growth rate  **[ES_3373230_31]** .
  - **Capital Plan**: $1.6 billion increase in utility infrastructure investments from 2024 through 2027 compared to the prior plan  **[ES_3373230_7]** .
  - **Long-term Financing Plan**: Includes cash inflows from the announced sale of South Fork and Revolution Wind of $1.1 billion, and realization of their tax equity investment in South Fork Wind, expected to bring in around $500 million over the next 24 months  **[ES_3373230_7]** .
  - **Equity Issuance**: Up to $1.3 billion through their existing ATM program over the next several years  **[ES_3373230_7]** .
  - **FFO to Debt Ratio**: 14% to 15% by 2025  **[ES_3373230_12]** .

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a1c30b641e23fe4e1c305bfd02b13310c7406367c857d4e4e3a9977e706875b0

**Annual guidance for FY 2024:**
- **Earnings Per Share (EPS) Guidance**: $4.50 to $4.67  **[ES_3395672_4]** (no change from $4.50 to $4.67  **[ES_3382133_2]** )
- **EPS Growth Rate**: 5% to 7%  **[ES_3395672_6]** (no change from 5% to 7%  **[ES_3382133_2]** **[ES_3382133_4]** )
- **Equity Needs**: Up to $1.3 billion  **[ES_3395672_6]** (no change from Up to $1.3 billion  **[ES_3382133_4]** )
- **FFO to Debt Ratio**: 14% to 15% by 2025  **[ES_3395672_6]** (no change from 14% to 15% by 2025  **[ES_3382133_4]** )

0e6b395ca9fa73bf5d14714ee56a5606c0ad8fedf007504af37479d7a6a18355

| Name                   | Start Date | End Date | Reason for Change |
|------------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002  **[0000072741-24-000005_es-20231231.htm:127]**    | Present  | Current auditor   |
```

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Retail Electric Sales Volumes (Total Eversource) (GWh)

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8c2227de5e4d4575147b25f393a53d8be8ba3641fe9f5d0b270e9649453ffdc4

1. **Connecticut CapEx Cuts**  
   **Q:** What CapEx are you cutting in Connecticut, and is redeployment accretive?  
   **A:** Due to unfavorable regulatory decisions misaligned with state policy, we're cutting capital expenditures in reliability areas while maintaining safety spending. We're redeploying capital elsewhere in our system where we have ample opportunities, and yes, the redeployment is accretive. **[ES_3382133_5]**

2. **Equity Issuance Plans**  
   **Q:** How are you approaching the up to $1.3 billion equity issuance, and does the water sale affect it?  
   **A:** We plan to be opportunistic, primarily utilizing our ATM program, which gives us tremendous flexibility. The final equity amount depends on the outcome of the Aquarion water sale process. We've executed at least **$75 million** so far and more in recent weeks. **[ES_3382133_6]**

3. **FFO to Debt Improvement**  
   **Q:** Can you elaborate on the FFO to debt ratio improvement and the drivers?  
   **A:** The 2023 under-recovery of approximately **$600 million** impacted our FFO to debt ratio, lowering it to around **9%**. With regulatory approvals, we expect cash recovery starting July 1, improving the ratio by about **200 basis points**. Other factors, including offshore wind investments, will move us closer to our target **14–15%** FFO to debt ratio by the end of 2025. **[ES_3382133_7]**

4. **Aquarion Sale Process**  
   **Q:** How does the recent rate order on Aquarion affect the sale process?  
   **A:** We're proceeding with the sale process to maximize value, despite appealing the rate order to the Supreme Court, which could take about a year. The appeal doesn't hinder our plans, and we're not rushing to the finish line. ** **[ES_3382133_9]** **[ES_3382133_15]** **

5. **Connecticut Regulatory Environment**  
   **Q:** Are you making progress in improving the regulatory environment in Connecticut?  
   **A:** We continue working towards a constructive regulatory relationship. Without predictable cost recovery, we can't invest further. Collaboration is essential, and we're committed to engaging until we achieve aligned objectives for clean energy initiatives. ** **[ES_3382133_16]** **[ES_3382133_18]** **

6. **Massachusetts ESMP Process**  
   **Q:** What are the next milestones in the Massachusetts ESMP process?  
   **A:** Hearings have concluded, and the DPU must render a decision by August due to clean energy legislation. We're focusing on a **$600 million** investment within our forecast period, with further investments needed beyond that. **[ES_3382133_8]**

7. **New Hampshire Solar Opportunity**  
   **Q:** Can you provide details on the New Hampshire solar investment opportunity?  
   **A:** We're in early discussions with the state on utility-owned solar investments. While sizing isn't determined yet, we see great opportunities due to abundant land and proximity to infrastructure. We'll provide updates in future quarters. **[ES_3382133_17]**

8. **Sunrise Sale Accounting**  
   **Q:** How does the sale of Sunrise affect your financials?  
   **A:** The transaction will be reflected upon closing, likely in the third quarter. Accounting rules require us to recognize the gain once cash is received, so adjustments will occur then. **[ES_3382133_11]**

9. **South Fork Tax Equity Investment**  
   **Q:** How does the South Fork tax equity investment impact cash flows?  
   **A:** The tax equity investment will enhance our operating cash flows over approximately **24 months**, potentially extending into 2026. While it's a one-time benefit, we have other items like deferred storm balances to maintain strong FFO to debt ratios beyond that period. **[ES_3382133_10]**

70a3f3d13c1c979c7f36337e057c0e783035c2f2f089ddc55b9f4d054dd690fe

1. **Offshore Wind Cost Exposure**  
   **Q:** How does Orsted's impairment affect Eversource's offshore wind obligations?  
   **A:** Eversource has reached its cost cap on offshore wind projects, so any further costs will be shared **50-50** with Orsted.  **[ES_3405774_9]**  The recent **$900 million** charge already factors in known issues, including those highlighted by Orsted, and no additional charges are expected at this time.  **[ES_3405774_6]** 

2. **Aquarion Sale Progress**  
   **Q:** What's the status of the Aquarion sale and its impact on financing?  
   **A:** The Aquarion asset has received significant interest, exceeding expectations.  **[ES_3405774_17]**  The sale is progressing well, with an announcement expected by the first quarter of **2025** and closing within the year.  **[ES_3405774_17]**  Proceeds from the sale are a key component of the financing plan and are included in the company's FFO to debt improvement targets.  **[ES_3405774_8]** **[ES_3405774_17]** 

3. **Equity Issuance and Balance Sheet**  
   **Q:** Can you update us on equity issuance plans and balance sheet improvement?  
   **A:** Eversource has issued **$1 billion** of equity this year to strengthen the balance sheet.  **[ES_3405774_7]**  The equity was not issued as a forward sale; the cash is already received.  **[ES_3405774_18]**  Further updates on equity needs and capital plans will be provided in the fourth quarter call.  **[ES_3405774_7]** 

4. **FFO to Debt Improvement**  
   **Q:** How are you progressing toward your FFO to debt targets?  
   **A:** Known cash flow enhancements are expected to improve FFO to debt by **3% to 4%**, with most major drivers locked in, including rate adjustments and equity issuance.  **[ES_3405774_8]**  The Aquarion sale is still pending but is part of the overall improvement plan.  **[ES_3405774_8]** 

5. **Connecticut Regulatory Environment**  
   **Q:** How is the Connecticut regulatory climate affecting investments?  
   **A:** Due to regulatory uncertainties in Connecticut, particularly around timely cost recovery, Eversource is cautious about investing there.  **[ES_3405774_23]**  Without clear regulatory support, investments like AMI and other projects may be deferred.  **[ES_3405774_14]** **[ES_3405774_23]**  The company is prepared to redeploy capital to other jurisdictions if conditions don't improve.  **[ES_3405774_32]** 

6. **Yankee Gas Rate Case and PBR**  
   **Q:** Will Yankee Gas adopt a PBR framework in the upcoming rate case?  
   **A:** Yes, Eversource is proposing Performance-Based Regulation (PBR) for Yankee Gas in Connecticut, aiming for rate stability and improved cash flows.  **[ES_3405774_11]**  Yankee Gas has been under-earning, and PBR is expected to enhance the company's ability to make necessary investments.  **[ES_3405774_11]** 

7. **Interest Expense Impact on Guidance**  
   **Q:** Has higher interest expense affected your earnings guidance?  
   **A:** The midpoint of the earnings guidance range is slightly reduced due to higher interest expenses, resulting from delayed Federal Reserve actions and increased debt issuance.  **[ES_3405774_22]**  The equity issuance was on plan and did not impact guidance.  **[ES_3405774_22]** 

8. **Cambridge Substation Investment**  
   **Q:** Is the Cambridge substation investment included in your plan?  
   **A:** Yes, the Cambridge underground station investment is included in the current five-year plan, with most spending occurring between **2028** and **2031**.  **[ES_3405774_10]**  Cost recovery is anticipated without lag, as it's a FERC-regulated transmission asset.  **[ES_3405774_28]** 

9. **Tax Credits and Cash Flow**  
   **Q:** How are tax credits affecting your cash flow projections?  
   **A:** The **$500 million** tax equity investment benefit may spill into **2026** and beyond.  **[ES_3405774_29]**  Eversource is utilizing other tax attributes before tapping into the ITC, maintaining overall cash flow projections.  **[ES_3405774_29]** **[ES_3405774_30]** 

10. **Focus on Regulated Investments**  
    **Q:** Will you consider merchant transmission projects like lines from Canada?  
    **A:** No, Eversource is committed to being a pure-play regulated utility and will focus on regulated investments, avoiding large-scale merchant projects.  **[ES_3405774_33]** 

11. **Remuneration from PPAs**  
    **Q:** How does the company benefit from PPAs like the NEC transmission line?  
    **A:** Eversource receives a **2.25%** remuneration on annual billings from PPAs, which helps strengthen the balance sheet and contributes to earnings.  **[ES_3405774_33]** **[ES_3405774_34]** 

12. **Massachusetts Electrification Investments**  
    **Q:** What's the outlook for electrification investments in Massachusetts?  
    **A:** Eversource supports Massachusetts' model for electrification and has significant investment opportunities through programs like ESMP and CIP, totaling over **$1 billion**.  **[ES_3405774_20]** **[ES_3405774_23]**  More investments are expected beyond these programs.  **[ES_3405774_23]** 

23a14493c85df6f40ec5e49ff29c99693b8a4e04f7770e69328ad59ac7dd7755

- Eversource expects to improve its **FFO-to-debt ratio to 14% to 15% by 2025**, supported by cash proceeds from asset sales, including the planned sale of Aquarion, strengthening its financial position.  **[ES_3382133_14]** **[ES_3382133_23]**
- The company reiterated its **2024 earnings guidance of $4.50 to $4.67 per share** and a **long-term EPS growth rate of 5% to 7%**, demonstrating confidence in its financial outlook.  **[ES_3382133_2]**
- Eversource continues to invest in technology and infrastructure to enhance reliability, as evidenced by **swiftly restoring power to 85,000 customers within 5 minutes during a storm**, showcasing **best-in-class performance**.  **[ES_3382133_0]**

62e944398495a1e8bdd52ea2df43f6262565afaa99beae3b165f9d68f690a866

- **Eversource's plan to achieve an FFO to debt ratio of 14%-15% by 2025 relies on the successful sale of the Aquarion water business**; if the sale is delayed or does not occur, this could negatively impact their financial metrics.  **[ES_3382133_23]**
- **Challenging regulatory environment in Connecticut is causing Eversource to reduce capital investments in the state**, particularly in reliability areas, which could affect future service quality and growth opportunities.  **[ES_3382133_5]**
- **Uncertainty surrounding the Supreme Court appeal regarding Aquarion's rate case and its impact on the sale process** adds risk to Eversource's financial plans and could potentially delay anticipated cash inflows.  **[ES_3382133_15]** **[ES_3382133_9]**

56b12df0767a19507dbe049c26e3d78854595128e8fbace26a570c315c8f212e

- **Yankee Gas has been under-earning for quite some time**, impacting cash flows and necessitating regulatory approval to enhance its financial position.  **[ES_3405774_13]**
- **Regulatory uncertainties in Connecticut** regarding the AMI program may delay significant investments, as the company seeks clear cost recovery mechanisms before proceeding.  **[ES_3405774_14]**
- **The expected $500 million tax equity investment benefit** from the South Fork Wind project is likely to be delayed beyond 2026, affecting anticipated cash flows and tax benefits.  **[ES_3405774_29]**

d665cda55d619a858e5a61f1ebc5e753a1f9248fdc1ac72ae83c72cf15f11e0d

1. **Offshore Wind Sale Timing**  
   **Q:** What's the latest on the offshore wind sale closing?  
   **A:** Management stated that the sale of Sunrise Wind closed on **July 9**, and they expect to close the GIP deal in this quarter. The timeline has not shifted, and they affirmed that construction activities are progressing very well.  **[ES_3395672_10]** ,  **[ES_3395672_12]** ,  **[ES_3395672_11]** 

2. **Equity Plan and Funding Needs**  
   **Q:** Is the up to $1.3 billion equity plan still accurate?  
   **A:** The **$1.3 billion** equity need remains the right number until certain items in flux reach closure. Factors like the Sunrise Wind sale and avoided breakage costs could impact this figure, but it's too early to provide further guidance. Management emphasized that this need is over the next several years.  **[ES_3395672_13]** ,  **[ES_3395672_14]** 

3. **FFO to Debt Enhancements**  
   **Q:** Have there been changes in FFO to debt enhancements?  
   **A:** Management highlighted additional tax refunds of about **$120 million** not included in the slides, which would enhance operating cash flows. They also mentioned pending rate increases that have not yet been quantified, providing potential upside to FFO to debt metrics.  **[ES_3395672_15]** ,  **[ES_3395672_19]** 

4. **Storm Cost Recovery**  
   **Q:** What's the status of storm cost recovery and its impact on FFO?  
   **A:** The **$200 million** in FFO enhancements is related to Massachusetts and New Hampshire, with recovery periods of five years. The **$634 million** Connecticut storm cost request is under prudency review, expected to conclude around September 2025, aligning with potential rate case filings.  **[ES_3395672_12]** ,  **[ES_3395672_18]** 

5. **Connecticut Regulatory Environment**  
   **Q:** Are there positive developments in Connecticut?  
   **A:** Management is working to improve relationships in Connecticut but is taking a wait-and-see approach. They acknowledge efforts to strike a balance with the governor and are committed to achieving regulatory stability for future investments, especially in AMI.  **[ES_3395672_7]** ,  **[ES_3395672_17]** 

6. **Amortization Period for Storm Costs**  
   **Q:** Over what period will Connecticut storm costs be recovered?  
   **A:** The historical amortization period in Connecticut has been **six years**. Upon approval, approximately **$100 million** per year could enhance cash flows after the next rate case.  **[ES_3395672_18]** 

7. **EGMA Rate Base Step-Up**  
   **Q:** Any issues anticipated with the EGMA rate base increase?  
   **A:** Management expects to hit the cap but feels confident due to prior agreements with regulators and stakeholders. The first rate base roll-in takes effect on **November 1** of this year, with a second on **November 1, 2027**.  **[ES_3395672_16]** 

8. **Delay in Connecticut PBR Case**  
   **Q:** What's causing the delay in the Connecticut PBR case?  
   **A:** The delay allows management to collaborate with key stakeholders to reach a constructive PBR structure. They are pleased with the postponement as it enables better alignment with stakeholders.  **[ES_3395672_19]** 

9. **Construction Status on Revolution Wind**  
   **Q:** What's the status of construction on Revolution Wind?  
   **A:** Construction is progressing well, with about **50%** of monopiles or foundations installed as of a week ago. Management continues to work on updates but maintains that current cost estimates are sound.  **[ES_3395672_11]** ,  **[ES_3395672_13]** 

10. **Potential Clawbacks in GIP Deal**  
    **Q:** Are any clawbacks expected in the GIP deal?  
    **A:** Management stated that upon closing, funding obligations flip to GIP. While there's potential for contingencies related to construction, they currently do not see material adjustments affecting financing plans.  **[ES_3395672_24]** 

11. **Gross vs. Net Proceeds in FFO Metrics**  
    **Q:** Any adjustments from gross to net proceeds in FFO metrics?  
    **A:** They do not anticipate material adjustments from gross proceeds to net that would affect FFO to debt metrics, as funding obligations transfer to GIP upon closing.  **[ES_3395672_24]** 

12. **Tax Refund Benefits**  
    **Q:** Are tax refunds contributing to FFO improvements?  
    **A:** Yes, tax refunds amounting to **$120 million** in 2024 have enhanced operating cash flows, providing an upside not reflected in prior FFO to debt enhancement slides.  **[ES_3395672_15]** 

13. **Storm Cost Recovery in MA and NH**  
    **Q:** Is the $200 million storm recovery related to New Hampshire?  
    **A:** The $200 million encompasses both Massachusetts and New Hampshire. In New Hampshire, they filed for **$240 million**, currently under prudency review, with recovery aligned with permanent rates effective in 2025.  **[ES_3395672_22]** 

14. **Grid-Enhancing Technologies**  
    **Q:** How is the company approaching grid-enhancing technologies?  
    **A:** Eversource is actively participating in forums on grid-enhancing technologies and is committed to being at the forefront of deploying new transmission technologies.  **[ES_3395672_20]** ,  **[ES_3395672_21]** 

15. **Aquarion Sale Timeline**  
    **Q:** Any updates on the Aquarion sale timeline?  
    **A:** The sale process has recently launched, and they aim to wrap up the transaction by the end of **2025**, with no change in that timeframe.  **[ES_3395672_8]** 

16. **Changes in PURA Size**  
    **Q:** Could the number of PURA commissioners increase?  
    **A:** The governor is now at **four commissioners**, which will go down to **three** in January. There's a possibility he may expand to **five** to strike a balance and bring regulatory certainty to Connecticut.  **[ES_3395672_7]** 

17. **Yankee Gas Filing in Connecticut**  
    **Q:** How might the Yankee Gas filing foreshadow future cases?  
    **A:** Management acknowledges the upcoming Yankee Gas filing and is watching for elements that could impact future rate cases, noting differences between electric and gas proceedings.  **[ES_3395672_17]** 

18. **FERC's Stance on Grid Technologies**  
    **Q:** Thoughts on FERC's push for grid technologies?  
    **A:** Eversource is actively involved with FERC and sees opportunities in deploying grid-enhancing technologies that align with their transmission operations.  **[ES_3395672_20]** 

35b0ed352464740db4fe52b2388d3c2a5ef9a379b013fbfeaceba9d0d001b2b6

- **Management expects to grow the dividend in line with earnings growth of 5% to 7%, and does not plan to change the dividend policy despite capital and equity needs.**  **[ES_3373230_34]**
- **Anticipated lower O&M expenses in 2024 due to non-recurring higher expenses in 2023 and efficiencies from technology deployments, such as a new CIS system and the Massachusetts AMI deployment, leading to cost savings and improved profitability.**  **[ES_3373230_4]**
- **The initiation of the sale process for the Water business is expected to reduce equity needs and unlock substantial value for shareholders, improving the balance sheet.**  **[ES_3373230_31]**

d0bd894557c06f98631c44a2bc7781ffb882b2fe7b93653ddc500d7f6ebed222

- **Implementation of Performance-Based Ratemaking (PBR)**: Eversource is introducing PBR in Connecticut through the upcoming Yankee Gas rate case, following successful implementation in Massachusetts and New Hampshire. This approach is expected to provide rate stability for customers and enhance cash flows for the company.  **[ES_3405774_13]**
- **Significant Capital Investment with Favorable Recovery Mechanisms**: Eversource has increased its 5-year capital investment forecast to **$23.7 billion**, including major projects like the **$1.5 to $1.6 billion** Cambridge underground substation. The company anticipates no lag in cost recovery for this project due to solid estimates and clear regulatory mechanisms.  **[ES_3405774_28]**
- **Focus on Strengthening Balance Sheet and Improving Financial Metrics**: Eversource has included known and measurable items such as **$1 billion of equity needs** and rate increases in its financing plan, enhancing confidence in achieving its FFO to debt target of **14% to 15%** by 2025.  **[ES_3405774_31]**

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- Eversource may face regulatory delays and challenges in recovering significant storm-related costs, such as the **$634 million** in Connecticut, which could negatively impact cash flows and financial ratios.  **[ES_3395672_18]** **[ES_3395672_22]**
- The company plans to issue up to **$1.3 billion** in equity over the next several years, which may lead to shareholder dilution and suggests financial pressure due to high capital expenditure needs.  **[ES_3395672_14]**
- There are potential risks associated with the sale of Revolution and South Fork Wind projects to GIP, including possible capital expenditure adjustments and contingencies related to construction that may affect the expected proceeds and impact Eversource's ability to reduce debt.  **[ES_3395672_24]**

8ed07fee9966eb40d8df753b5f601092183062bd3290d01a3651433de97169b8

1. **Equity Issuance and Aquarion Sale**  
   **Q:** What's giving you confidence around the $1.3B equity raise and its timing?  
   **A:** They view **Aquarion** as a valuable asset and are confident in harvesting proceeds from a potential sale to meet up to **$1.3 billion** in equity needs over the next several years. They plan to issue equity starting in the coming months, primarily through their **ATM program** for flexibility but may consider other options if favorable.  **[ES_3373230_10]** 

2. **FFO-to-Debt Ratio Improvement**  
   **Q:** How will your FFO-to-debt ratios improve, and what's the starting point?  
   **A:** They've been under-recovered in 2023, impacting cash flow, but expect improvements in 2024 and 2025 as under-recoveries are collected. They anticipate achieving a **14%-15% FFO-to-debt** ratio, up from low double digits in 2023, aided by factors like tax equity investments and storm cost recovery.  **[ES_3373230_12]** 

3. **South Fork Tax Equity Impact**  
   **Q:** How does the South Fork tax equity investment affect FFO-to-debt?  
   **A:** The **$500 million** tax equity investment from South Fork will improve FFO-to-debt ratios in 2024 and 2025. It's expected to be utilized over the next **24 months**, enhancing cash flow during that period.  **[ES_3373230_13]** 

4. **Storm Cost Recovery**  
   **Q:** Is storm cost recovery included for all states, including Connecticut?  
   **A:** Storm cost recovery is currently factored in for **Massachusetts and New Hampshire**. Connecticut is not included yet, as they've filed for prudency review, which will take time. Connecticut's recovery will provide additional cash beyond 2025.  **[ES_3373230_14]** 

5. **Aquarion Sale Process Confidence**  
   **Q:** Why are you confident in the Aquarion sale process now?  
   **A:** Unlike previous wind asset sales, **Aquarion** is wholly owned and less complex to sell. It's a highly attractive asset in an industry with **50,000 water companies**, making it appealing to many buyers. They expect the process to be smoother and not drawn out.  **[ES_3373230_16]** 

6. **EPS Growth Guidance**  
   **Q:** Does the Aquarion sale affect your 5%-7% EPS growth guidance?  
   **A:** The potential sale of Aquarion is already factored into their **5%-7% EPS growth** guidance. They are not specifying where within that range they will land but remain comfortable with their growth aspirations.  **[ES_3373230_15]** 

7. **Cost Savings and Lower O&M**  
   **Q:** What are your cost savings initiatives leading to lower O&M in 2024?  
   **A:** They expect lower O&M in 2024 due to non-recurring higher levels in 2023. Implementing technology like a new **CIS system** as part of the Massachusetts **AMI deployment** will drive efficiencies and savings. They also foresee additional savings from organizational efficiencies.  **[ES_3373230_17]** 

8. **Potential Proceeds from Ørsted**  
   **Q:** Are proceeds from Ørsted factored into your equity needs?  
   **A:** Proceeds from a potential sale to **Ørsted** are not currently included in their financing plan. Such proceeds would reduce their equity needs, which is why they mention an "up to" valuation in their equity guidance.  **[ES_3373230_18]** 

9. **Dividend Growth Alignment**  
   **Q:** Will dividend growth match EPS growth?  
   **A:** Yes, they expect to grow their dividend in line with their **5%-7% EPS growth** rate, continuing their long-standing practice of aligning dividend growth with earnings growth.  **[ES_3373230_25]** 

10. **Filling Earnings Gap from Aquarion Sale**  
    **Q:** How will you fill the earnings gap from selling Aquarion?  
    **A:** They plan to fill the gap through debt reduction from sale proceeds and reallocating CapEx. Their forecast includes **$1.6 billion** in CapEx increases and up to **$2 billion** not included in the 5-year plan, enabling them to replace earnings and mitigate dilution.  **[ES_3373230_20]** 

2a1dc9bc31ee24048c3db56e2dc721d8be8565b347ca4315bbd1a475aeb8bc8e

- **Eversource Energy is successfully progressing in selling its offshore wind assets, which will strengthen its balance sheet and allow focus on regulated growth**. The sale of Sunrise Wind project to Orsted closed on **July 9, 2024**  **[ES_3395672_23]** , and the sale of South Fork and Revolution Wind projects to Global Infrastructure Partners is expected to close in **Q3 2024**.  **[ES_3395672_23]** **[ES_3395672_11]** **[ES_3395672_24]**  Construction on Revolution Wind is progressing well, with **50% of foundations installed**.  **[ES_3395672_10]** **[ES_3395672_11]**
- **Favorable legislation in New Hampshire supports Eversource's growth in capital expenditures**, enhancing infrastructure investments and benefiting customers.  **[ES_3395672_25]**  The company views the Integrated Distribution Plan (IDP) as a positive development that aligns with its operations.  **[ES_3395672_25]**
- **Significant rate base increases in Eversource Gas of Massachusetts (EGMA) are expected to boost revenues and cash flows**. EGMA's rate base is increasing from **$770 million to approximately $1.7 billion**, with proposed revenue increases of **$78.7 million** this year and **$67.5 million** effective November 1, 2025.  **[ES_3395672_16]**

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Eversource Energy (ES)

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