NYSE:ES Eversource Energy Q1 2025 Earnings Report $63.45 +0.39 (+0.62%) Closing price 05/23/2025 03:59 PM EasternExtended Trading$63.91 +0.46 (+0.72%) As of 05/23/2025 07:35 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Eversource Energy EPS ResultsActual EPS$1.50Consensus EPS $1.50Beat/MissMet ExpectationsOne Year Ago EPS$1.49Eversource Energy Revenue ResultsActual Revenue$4.12 billionExpected Revenue$3.65 billionBeat/MissBeat by +$463.78 millionYoY Revenue Growth+23.60%Eversource Energy Announcement DetailsQuarterQ1 2025Date5/1/2025TimeAfter Market ClosesConference Call DateFriday, May 2, 2025Conference Call Time9:00AM ETUpcoming EarningsEversource Energy's Q2 2025 earnings is scheduled for Wednesday, July 30, 2025, with a conference call scheduled on Thursday, July 31, 2025 at 9:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)SEC FilingEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Eversource Energy Q1 2025 Earnings Call TranscriptProvided by QuartrMay 2, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Good day, and thank you for standing by. Welcome to the Eversource Energy First Quarter twenty twenty five Earnings Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during this session, you will need to press 11 on your telephone. Operator00:00:18You will then hear automated message if your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rima Hyder, Vice President of Investor Relations. Please go ahead. Rima HyderVP - Investor Relations at Eversource Energy00:00:36Good morning, and thank you for joining us today on the first quarter twenty twenty five earnings call. During this call, we'll be referencing slides that we posted this morning on our website. As you can see on slide one, some of the statements made during this call may be forward looking. These statements are based on management's current expectations and are subject to risk and uncertainty, which may cause the actual results to differ materially from forecasts and projections. We undertake no obligation to update or revise any of these statements. Rima HyderVP - Investor Relations at Eversource Energy00:01:07Additional information about the various factors that may cause actual results to differ in our explanation of non GAAP measures and how they reconcile to GAAP results is contained within our news release, the slides we posted last night, and in our most recent 10 Q and 10 ks. Speaking today will be Joe Nolan, our Chairman, President and Chief Executive Officer and John Marreira, our Executive Vice President and Chief Financial Officer and Treasurer. Also joining us today is Jay Booth, our Vice President and Controller. I will now turn the call over to Joe. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:01:40Thank you, Rima. Good morning, everyone, and thank you for joining us today for our first quarter earnings call. I am pleased to share our results and discuss the progress we have made towards our key initiatives in the first quarter of this year. This quarter, we saw strong growth across our transmission and distribution businesses versus last year, and we are pleased to reaffirm our 2025 EPS guidance, as well as our long term EPS growth rate of 5% to 7% through 2029. As shown on slide four, as a pure play pipes and wires regulated utility, we are uniquely positioned to leverage our strengths in transmission and distribution investment opportunities. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:02:31Our regulated status provides stability and predictability, allowing us to focus on long term growth and sustainability that will continue to deliver on customer expectations. Over the five year forecast period, we are projecting rate base growth at 8% with numerous additional opportunities outside of this forecasted period. As shown here, the composition of our rate base is strategically shifting toward higher distribution spend in Massachusetts, primarily to meet the state's electrification goals set in the electric sector modernization plan and conversely the reduction of capital investment in Connecticut. We are excited to partner with the Commonwealth of Massachusetts on its decarbonization strategy and to make necessary investments to meet these goals and enhance reliability. We have strong investment opportunities beyond our five year forecast period. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:03:38We were pleased to see that ISO New England recently issued a new RFP to solicit longer term proposals from transmission operators to address the region's future load growth in connection with their 2,050 transmission study. We are examining numerous opportunities and we look forward to working with ISO New England on this unique opportunity to address the region's energy transition and maintain system reliability. Another area of growth for us is the acquisition of the Mystic Site in Everett. With its strategic location, flexibility and existing infrastructure, this facility stands out as one of the most promising multi use interconnection points for a wide range of energy resources in New England, representing a unique opportunity to support the region's energy goals, spur economic development, and create jobs. These future transmission and distribution opportunities give us confidence for growth for years to come, as well as ensuring that our customers receive safe and reliable service. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:04:51At the heart of our operation is our commitment to customer innovation and affordability. We continue to invest in advanced technologies and innovative solutions that enhance the reliability and efficiency of our transmission and distribution networks. Our focus on affordability ensures that we deliver value to our customers while maintaining reasonable rates. We have launched several initiatives aimed at improving customer experience and reducing costs in the long term. As shown on slide five in Massachusetts, our AMI project remains on track with significant progress made on standing up, integrating and testing the necessary systems. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:05:40We began deployment on AMI communication network in Western Massachusetts at the start of this year and is now 40% complete. We expect to complete the AMI network before the first smart meter is deployed in July. We are excited about this technology and how it will empower customers to make data driven decisions about their energy usage and provide customers with more control than ever before. Additionally, with feedback from our customers through our robust Voice of the Customer program, we have implemented many user experience enhancements, including redesigning and streamlining the digital customer experience for managing their account needs. More importantly, we added greater functionality and created a new redesigned account overview page on our website, making it easier for our customers to compare their bills and better understand their usage. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:06:47Helping our customers understand their bill, educating them on energy related topics, and making it seamless for customers to interact with Eversource is a key objective for us. On the regulatory front, we continue to make progress across three states. Earlier this year, there was a call to action in Massachusetts from our customers, communities and state policymakers to address affordability, stabilize rates and provide transparency on energy bills. This was in response to high gas bills following the rate adjustments and increased demand due to a very cold winter. In collaboration with state leaders, we developed a plan to reduce winter rates for our gas customers by approximately 10% to smooth bill impacts during high usage periods, which went into effect beginning March 1. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:07:49We have also organized many events to work with and educate customers and communities we serve about the various options they have to manage their bills including energy efficiency programs. We recognize there's more to do to address transparency and affordability, and we are actively working with the administration, legislators, communities, and regulators on long term solutions to smooth rate shocks and address affordability. In Connecticut, PURA Commissioners Marissa Gillette and David R. Conti have been confirmed by the state legislature and we look forward to working with them to ensure customers continue to receive the safe, reliable electric, gas and water delivery services that they have become accustomed to over the years. In New Hampshire, we look forward to working with the new administration and partnering with them on meeting their energy goals. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:08:55We continue to execute on many fronts to strengthen our balance sheet. One of our key strategic initiatives was to divest Aquarion Water, which is anticipated to close by the end of the year. Last month, we filed for regulatory approval in all three states. The Aquarian proceeds along with our regulatory recoveries will enable us to improve our FFO to debt ratio from 2024 levels. Turning to a brief update on offshore wind and revolution wind project. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:09:32We are pleased to report that the construction of the onshore substation, which Eversource continues to oversee, is progressing very well. The onshore substation is the critical path to the project going into service. We continue to monitor the project's overall construction progress closely. Currently, given the latest construction updates and cost estimates we have been provided, we have concluded that we do not need to change the contingent liability that we recorded in the third quarter of twenty twenty four. In summary, our first quarter results reflect unwavering commitment to customer innovation, affordability, financial strength and sustainability. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:10:25We are focused on our 2025 key priorities, as shown on slide six, in the first quarter results clearly demonstrate our successful execution of these goals, showcasing our commitment to sustained growth and strategic vision as a pure play pipes and wires regulated utility. We are confident in our ability to continue driving value for our customers and shareholders as we move forward. Our prudent and long standing approach to financial and operational management ensures that we can continue to invest in critical infrastructure and innovation while delivering consistent returns to our shareholders. Thank you for joining us today. I will now turn the call over to John Marreira to discuss our financial results. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:11:21Thank you, Joe, and good morning, everyone. This morning, I will review first quarter earnings results, provide a regulatory update and also discuss our balance sheet progress and credit metrics. I'll start with our first quarter results on Slide eight. GAAP and recurring earnings results for the first quarter were $1.5 per share compared with GAAP and recurring earnings of $1.49 per share last year. Higher utility earnings were largely offset by a decrease in parent and other earnings. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:12:00Starting with transmission, higher electric transmission earnings of $04 per share were due to increased revenues from continued system investments to address agent infrastructure, reliability and load growth, partially offset by the impact of share dilution. Higher electric distribution earnings of $03 per share benefited from grid modernization and system improvement rate mechanisms. Additionally, base distribution rate increases in New Hampshire and Massachusetts provide a timely recovery of investments. Partially offsetting these revenue adjustments were higher property taxes, interest, depreciation and share dilution. The improved results of $06 per share at Eversource's natural gas segment were due primarily to higher revenues from continued investments to replace agent infrastructure, resulting in base distribution rate increases at our Massachusetts gas businesses, including the eGMA rate base roll in that became effective November first of twenty twenty four, in accordance with the 2021 settlement agreement. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:13:16Offsetting these higher natural gas revenues were higher O and M, interest, depreciation, property taxes and the impact from share dilution. Water earnings were comparable year over year as the first quarter is typically a very low usage period. Eversource parent losses increased $0.12 per share in 2025. Lower results were as expected, primarily due to higher interest expense and the impact from the absence of capitalized interest associated with our former offshore wind investment. Overall, our first quarter earnings were in line with our expectations, and we are pleased to start 2025 with such a solid performance. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:14:05Moving to our key regulatory items as highlighted on slide nine. Starting with New Hampshire, where we currently have a pending rate proceeding. Hearings in this proceeding are scheduled to start next week. In addition to recovery of previous system investments and deferred storm costs, we have proposed implementing a four year performance based rate making plan, including a capital support mechanism that would adjust rates annually. We anticipate a final decision in July for rates to become effective August 1. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:14:47In Massachusetts on November one of twenty twenty five, new rates will be effective for NSTAR Gas under the annual PBR adjustment and a rate base rolling. In addition, rates reflect in the second phase of the 2024 rate based roll in for eGMA of approximately 62,000,000 Moving to Connecticut, we are pleased to report that the average CLMP residential customer will see a 6% reduction on May 1 due to the implementation of the annual rate adjustment mechanism. We appreciate the progress made by PURA from the proposed decision to the final decision to provide customers with this benefit. Also in Connecticut, we have an ongoing Yankee Gas rate case, where we seek to recover a revenue deficiency of $2.00 $9,000,000 reflecting critical investments in cost increases since our previous rate review in 2018. Hearings are scheduled for June with the final decision scheduled at the October for rates effective November first of this year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:16:09Next, let me reaffirm our five year capital plan of $24,200,000,000 as shown on Slide 10, which reflects our five year utility infrastructure investments by segment. This plan is a 10% increase over the last five year plan. As a reminder, this forecast includes only those projects that we have a clear line of sight on from a regulatory approval perspective. The plan includes nearly $7,000,000,000 of transmission infrastructure investments over the next five years, greatly enabled by efforts in Massachusetts last year, including the state's clean energy bill that reformed citing and permitting of energy facilities, as well as the Massachusetts Department of Public Utilities approval of the Electric Sector Modernization Plan or ESMP. It also includes the Greater Cambridge Energy Project that commenced construction earlier this year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:17:18As a reminder, this project consists of a 35,000 square foot underground substation at a projected capital cost of $1,800,000,000 with nearly 80% of this investment to be recovered through our transmission tariff. Turning to electric distribution, the capital forecast reflects over $10,000,000,000 of planned utility infrastructure investments, with investments related to Massachusetts operations making up 60% of this capital plan. This includes $850,000,000 for the AMI program in Massachusetts that Joe discussed. We have already realized significant benefits for our customers from the new billing system implemented to support AMI. And we look forward to providing customers with additional benefits as we begin meter installation later this year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:18:21In addition to our base capital investment forecast, we continue to see opportunities that could provide additional investments in the range of 1.5 to $2,000,000,000 within the forecast period. And as Joe mentioned, we have other growth opportunities that could materialize towards the back end of our forecast period and beyond. Let me now turn the subject of potential tariffs and how they could impact our O and M and capital investment plan. First, we see minimal, if any impact on our operation and maintenance expense. Secondly, we could potentially see cost increases resulting from the tariffs impacting our capital investment plan, but we expect them to be manageable. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:19:15While tariffs are disruptive to our supply chain, we have been managing through supply chain disruption for the past five years, especially through the pandemic years. The work we have done to expand and diversify our supply chain prior to the tariffs has positioned us well to mitigate this potential tariff risk. Through this strategic planning, we have almost no direct exposure to China, where the tariff impact is slated to be the highest. Overall, we believe the potential cost increase to our capital projects will be approximately 3% to 6%. Should these potential tariffs put pressure on inflation, keep in mind that in Massachusetts, where we currently have performance based rates that include an inflationary adjustment, which would allow us to recover a portion of this inflation impact. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:20:11In addition, we have proposed PBR rate mechanisms in the PSNH and Yankee rate filings. Turning to Slide 11, to efficiently finance our customer focused investments, we have taken a number of steps to enhance our cash flow position and improve our balance sheet profile. Our plan to enhance our cash flows is well balanced alongside our equity needs of $1,200,000,000 The majority of which we expect to issue towards the back half of our five year forecast period. This plan also supports our FFO to debt ratio target, which we expect to improve significantly over 2024 actual results, and certainly above the rating agency downgrade thresholds. We continue to expect our FFO to debt targets for 2025 to be well above 100 basis points over the rating agency thresholds. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:21:16As Joseph NolanPresident, CEO & Chairman at Eversource Energy00:21:16you John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:21:16can see on the slide, we have provided you with the rating agency thresholds at both S and P and Moody's, as well as the actual 2024 results. As we shared with you last quarter, and as shown on slide 12, we have executed on all of the items necessary to improve our cash flows and strengthen our balance sheet. Next, I will turn to 2025 earnings guidance on Slide 13. With the first quarter in the books, we are reaffirming our 2025 recurring earnings per share in the range of $4.67 to $4.82 and our long term EPS growth rate of 5% to 7% off of the 2024 base. Our EPS growth profile will continue to strengthen as we execute on the strategic plan with customer focused transmission and distribution infrastructure investments recovered through constructive rate mechanisms. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:22:22In addition, the progress with the recovery of deferred storm costs throughout the system and continued O and M cost discipline provide a solid foundation for Eversource to return value to our investors for years to come. I will now turn the call over to Rima to begin the Q and A session. Rima HyderVP - Investor Relations at Eversource Energy00:22:44Thank you, John. Marvin, we are ready for our question and answers now. Thank you. Operator00:22:49Thank you. At this time, we'll conduct a question and answer session. As a reminder to ask a question, you'll need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please limit yourself to one question and a follow-up. Operator00:23:06Please stand by while I compile the Q and A roster. Our first question comes from the line of Durgesh Chopra of Evercore ISI. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:23:18Good morning, Durgesh. Durgesh ChopraManaging Director at Evercore ISI00:23:20Hey, good morning, Joe. For giving Good morning, John. Guys, just appreciate the tariff commentary. We've been getting a lot of questions on the offshore project, obviously, under construction. Can you just frame for us if you already have the equipment on hand? Durgesh ChopraManaging Director at Evercore ISI00:23:41I know there's one monopile that is being manufactured. There's also some storage, some equipment you have stored in Canada. Maybe just a little bit more color, you know, on the tariff exposure to revolution, please. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:23:54Sure. I appreciate the appreciate the question. We have all items procured. There is as you mentioned, there is a monopod that's being constructed that we do expect in the fall. But the remaining items, even the item that is the substation that's being stored in Canada has already come to The United States. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:24:16It's already been here. So we don't anticipate or expect any calculated challenges of anything around revolution other than, you know, is one monopod that is coming that's under construction. But we feel very good about it as we had mentioned, you know, this project is very, very mature. It's going on very, very well. It's construction. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:24:38I'm very, very pleased with the progress. As you know, we do oversee the construction of that substation in Rhode Island. And I will tell you that both John and I get daily updates on the progress and I'm very, very impressed with the team down there and what they've been able to do to bring that station to fruition. So we don't feel as though there's going to be anything that's going to challenge us around tariffs as it relates to revolution. But Dagesh, I also want Joseph NolanPresident, CEO & Chairman at Eversource Energy00:25:08to talk to you a Joseph NolanPresident, CEO & Chairman at Eversource Energy00:25:08little bit about our business and some of our capital investments. When COVID hit, we made a concerted effort to go in and kind of fill the warehouses with a lot of components and parts that might be challenging to get. So fortunately Eversource is blessed with a very robust warehouse operation that hopefully will insulate us from anything that's very, very challenging. But again, it is an issue we need to look at. We do look at it all the time. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:25:41John, it does oversee warehousing and procurement. So it's in very, very good hands, I know that he'll do everything he can to mitigate any risk that tariffs could have on the company. Durgesh ChopraManaging Director at Evercore ISI00:25:54Got it. Got it, Joe. Thanks. That's very thorough. Thank you. Durgesh ChopraManaging Director at Evercore ISI00:25:57Sounds like you don't see it as a major risk. Okay. Really quickly shifting gears, Aquarian still on track for year end. And then what kind of regulatory approval timeline, you know, as as as you think about approvals through two different states? Are you should we be expecting, please? Durgesh ChopraManaging Director at Evercore ISI00:26:13Thank you. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:26:14Sure. Yeah, the inquiry filing has been made. We anticipate that that transaction will close in 2025. We don't see any bumps in the road. As you know, we will pass through Connecticut, Massachusetts and New Hampshire, the regulatory bodies. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:26:33But it's a pretty straightforward filing and I think that obviously when you look at the buyer of the assets, you know, they're very competent buyer that has is already operating in the jurisdiction. So we don't see any issues at all. Durgesh ChopraManaging Director at Evercore ISI00:26:49Got it. Is there a specific timeline for Connecticut to rule on this? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:26:57Yes. They have the timeline would be October. So five months range. Durgesh ChopraManaging Director at Evercore ISI00:27:05Thank you. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:27:07Alrighty. Operator00:27:08Thank you. One moment for our next question. Our next question comes from the line of Shar Pourreza of Guggenheim Partners. Your line is now open. Analyst00:27:20Hey, guys. Good morning. It's actually James on for Shar. Happy Friday. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:27:23Good morning, James. Good morning, James. Analyst00:27:25Good morning. So maybe just starting off in Connecticut, a lot of moving pieces on the legislative front. I think one of them is securitization potentially for the storm cost reg assets. I guess if you receive that, would it change your thoughts on the timing, the quantum of the current ATM equity? I think you had said back half, but just any kind of thoughts there for us. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:27:48Yeah. Hey, James, this is John. Yes. So, obviously, as I communicated in February, we did not assume securitization as part of our financing strategy. But certainly, if we get that and we get that cash in the door on an accelerated basis, we would revisit our equity needs at that point in time. Analyst00:28:07Okay, perfect. And then just any updated thoughts or expectations for movement in the AMI process at this point? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:28:15Well, that docket James is under the final one we did file for reconsideration to try to get some clarity and some certainty around the recovery of dollars that we might spend. And so we'll see how that plays out there, but we just want to get comfortable. Obviously, we'll spend what Connecticut wants us to spend, but we do need to have line of sight on recovery. Analyst00:28:39Excellent. Thanks guys. I'll leave it there. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:28:41Thank you. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:28:42Thank you. Operator00:28:44You. One moment for our next question. Our next question comes from the line of Carly Davenport of Goldman Sachs. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:28:55Good morning, Carly DavenportVice President, Equity Research at Goldman Sachs00:28:56Good morning. For taking the questions. Maybe just a follow-up on Connecticut. Just could you provide your latest thoughts just around some of the noise on the forward composition of PURA just in terms of filling those other two seats? You can share and how you're thinking about the timing of when potentially we could get some certainty on that piece? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:29:17Yeah, you know, great question. You know, we are indifferent on whether it's three or whether it's five. We do feel as though there's a movement that, know, hopefully we'll see some activity down there on that and get some clarity. But you know, unfortunately, I cannot predict for you when we might see it or whether it's three or whether it's five. You know we are obviously eager for a stable regulatory climate in that jurisdiction. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:29:47So we'll continue to monitor it we will hope that, we do get a transparent, regulatory environment that allows us to continue to operate in that state. Carly DavenportVice President, Equity Research at Goldman Sachs00:29:59Great. Appreciate that. And then maybe just shifting to the balance sheet and FFO to debt. Appreciate the detail that you shared in the slides there. Just anything you can provide in terms of conversations, in particular with Moody's, in terms of what they need to see to sort of shift from the negative watch and how you feel about the path to executing on that goal? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:30:20Yes, Collie. I would say what they need to see is, us to continue to execute on our plan that we have put before them. We're going through a refresh of that plan, next month, with all three agencies. But suffice it to say, as you'll see in our first quarter statement of cash flows, you'll see a significant improvement in our operating cash flows. And it's really execution of what we've been saying for the past year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:30:48The recovery of previously under recovered regulatory costs have come in and will continue to come in. That in and of itself is probably will generate benefit FFO to debt at Moody's of about 300 basis points. So everything that we've been executing on, everything that we've been communicating to you all has materialized and will continue to materialize. Carly DavenportVice President, Equity Research at Goldman Sachs00:31:13Great. Thank you for the color. Operator00:31:17Thank you. We'll move it for our next question. Our next question comes from the line of Jeremy Tonet of JPMorgan Securities. Your line is now open. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:31:29Hey, Jeremy. Good morning, Jeremy. Jeremy TonetAnalyst at JPMorgan Chase00:31:31Morning. Thank you for the color here today. Just wanted to pick up with the FFO to debt commentary that you provided in the slide there. Just wondering if you had thoughts you could share with regards to where you think you'd land in 2026 FFO to debt on both agency metrics there? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:31:50Sure. I mean, the groundwork that we've laid to get us to a much better spot in 2025, that'll continue with the reduction of about $2,400,000,000 of debt just related to the acquiring on sale. That's going to continue to persist. And what I think is very, very important for you all to understand is that this huge under recovery, what's really important and what I feel so optimistic about and confident is that the future costs and rates have been set to align with those costs. So we should not, see significant swings in under recoveries in the future. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:32:32So then, having that sustainable cost incurred with the revenues to match it is a major, major, benefit for us. Jeremy TonetAnalyst at JPMorgan Chase00:32:43Got it. And so I guess, do you expect FFO to debt will improve from the numbers outlined in 2025, the 100 bps cushion? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:32:53Our FFO to debt will continue to enhance. Obviously, that's contingent. We have to look at where our capital forecast is over our five year period. As I've communicated to you all, there's potentially 1.5 to $2,000,000,000 kind of sitting on the sidelines, and that we'll hope to have clarity certainly within the next six to twelve month period. And as we typically do, we'll update you all in our financing plan annually. Jeremy TonetAnalyst at JPMorgan Chase00:33:23Got it. Thank you. And then just as it relates to the Rev Win cost estimates, just wondering, I guess, how the process works with there. You guys kind of work together in formulating those estimates, those expectations of tariff impacts, and we would expect them to kind of say the same thing or the independent processes. Just wondering if how that process works. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:33:46No, it's a collaborative. We get updates, as Joe mentioned, from them. They share their forecast update routinely. So we're much aligned obviously. The deal, that we struck with GIP gives us that line of sight and clarity. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:34:05We have access to Arstad and we're constantly engaged with GIP. Jeremy TonetAnalyst at JPMorgan Chase00:34:12Okay, great. Thank you. I'll leave it there. Operator00:34:17Thank you. One moment for our next question. Our next question comes from the line of Sophie Karp of KBCM. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:34:28Good morning, Sophie. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:34:29Good morning. Sophie KarpManaging Director & Equity Research Analyst at KeyBanc Capital Markets00:34:30Good morning. Thank you for taking my question. I was wondering about the upcoming Millstone recontracting rates. So kinda along the lines of would that present an opportunity to, you know, either maybe improve affordability for rate payers or at least make it clearer to rate payers in Connecticut what they're paying for because I think right now it's rolled into something called public benefit charge. From a PR standpoint, would that benefit you in any way? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:35:03Yeah, mean, that contract is up in 2029, obviously having a 1,000 megawatts of clean energy at baseload generation in the region is helpful and in a region where we are actually losing generation. So it's very helpful, but I think it's too early right now, Sophie, to be looking at that contract and maybe what's gonna happen going forward. As you know, this was a desire of the administration, the previous administration to to contract for this power and, you know, we we we'd have to work collaboratively with the administration on what's important to them. Sophie KarpManaging Director & Equity Research Analyst at KeyBanc Capital Markets00:35:41Alright. Thank you very much. That's all for me. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:35:43Welcome. Thank you. Thank you. Operator00:35:46One moment for our next question. Our next question comes from the line of Anthony Cordell of Mizuho. Your line is now open. Anthony CrowdellManaging Director at Mizuho Financial Group00:35:57Good morning, Anthony. Good morning. Hey, good morning. Let's go Knicks, right? I think I heard that in the background. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:36:03We'll see what happens Monday. Anthony CrowdellManaging Director at Mizuho Financial Group00:36:06I don't think the Knicks have a chance, but just some odds and ends. In Connecticut, the securitization, the public benefit and the storm cost recovery, are those rolled up together in same legislation or it's not decided yet? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:36:23Well, yeah, no, it is rolled up. I mean, not that it would be allowing securitization for storm costs. But in SB fifteen sixty, all of those issues are discussed and contemplated. So, but again, that's just to allow the recovery of storm cost. As you know, we do have a prudence review underway at PURA and we'll continue to work through that process, but it's going very, very well. Anthony CrowdellManaging Director at Mizuho Financial Group00:36:54Great. And then if I move to Massachusetts, I think on Wednesday, there was a Berkshire gas decision that maybe changed some of the rules on the acronym, I think it's GSEP. Does that impact you guys or what kind of exposure do you have with the new rules on the GSEP? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:37:14Well, the GSEP filing impacted NSTAR Gas and EGMA, Anthony, where they lowered the ceiling from 3% cap to 2.5%. So in and of itself, I don't see that as something that's devastating. We can certainly manage to that. Obviously, our focus will continue to make sure that we provide safe and reliable gas services to our customers. That's first and foremost. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:37:46And once again, I think, we're still going through that review process and we haven't determined what action we would take. So I think it's a bit early in that process. So there's more to come, but we don't see that as a major impact to us. It's not as though they don't want us to make the investments, they continue to support it, which is but they're basically saying, hey, consider other non pipe alternatives. So that's really what the message and what they've communicated to us and we're very supportive of that concept. Anthony CrowdellManaging Director at Mizuho Financial Group00:38:20Great. And if I could just squeeze one more in, it follows off of Jerry Geshe's questioning earlier. Have you guys stated what percentage of the Revolution project is complete, fifty, forty, 30? Have you guys quantified what percent of the project is completed? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:38:35We have not. I will just tell you that construction is going very, very well. Anthony CrowdellManaging Director at Mizuho Financial Group00:38:41Great. Thanks for taking my questions and Nixon seven. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:38:46Thank you. Operator00:38:49Thank you. One moment for our next question. Our next question comes from the line of Travis Miller of Morningstar. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:39:00Good morning, Good morning, everyone. Good morning. Travis MillerAnalyst at Morningstar00:39:05Back sticking on the regulatory under recoveries, wonder if you Travis MillerAnalyst at Morningstar00:39:08could just give a little bit Travis MillerAnalyst at Morningstar00:39:09of a list here what you got in, in the first quarter and the ones you expect or what you expect to get in over the next, say, two quarters or even through the end of the year? I know that the New Hampshire one is outstanding, Connecticut is a bit outstanding, but you have one John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:39:26Well, I would say the most significant one, Travis, is the RAM docket, which recovered some of the Millstone, Seabrook, kind of all that the public benefits charge, some bad debt recovery. As you know, we had a $900,000,000 rate increase to collect those on the recoveries and to set rates for the current year at a much more reasonable level. So that was a $900,000,000 rate increase that went live July 1. And that runs from July through April thirtieth of this year. And then recently, as I stated in my formal remarks, we just got the final decision on the RAM, for this year that will go live May, that went live May 1, which lowered the recovery by $142,000,000 So we have very good line of sight, but suffice it to say, in that 300 basis point that I just mentioned, that includes the bulk of the RAM decision recovery of those costs. Travis MillerAnalyst at Morningstar00:40:35Okay, and then the New Hampshire and then any kind of results future Connecticut? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:40:42I would characterize it in this fashion, Massachusetts and New Hampshire, we have timely recovery. They could, you know, within a very short period of time, we adjust rates, whether it's no recovery or under recovery, and they're not significant balances, Travis. Travis MillerAnalyst at Morningstar00:40:59Yes. Okay, very good. And then just real quick, that $1.5 to $2,000,000,000 CapEx opportunity, anything different or changed in that bucket since the last quarter or since February? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:41:13Well, always continue to progress and look at it. It's a little bit early and obviously embedded in that is the AMI in Connecticut. And I think Joe addressed that. Travis MillerAnalyst at Morningstar00:41:25Okay, very good. Thanks Operator00:41:30you. One moment for our next question. Our next question comes from the line of Julien Dumoulin Smith of Jefferies. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:41:41Morning, Julien. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:41:43JULIEN Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:41:43Hey. Hey. Are you guys doing? Great. Good. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:41:46Excellent. Thank you for the time. Look, I just wanted to come back to where Jeremy was a second ago. If we could talk a little bit more about the FFO to debt numbers and just trying to understand like the numerator and denominator a little bit because clearly hearing your comments about the 100 basis points of latitude, just wanted to understand a little bit more about how you're seeing that happen. Because if I remember right, I think last quarter, you guys were talking about this, I think it was a 45% number on improvement in operating cash flow. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:42:12So it's a good I think that was a good proxy for thinking about the numerator improving. But is that still the case? Or how do you think about the debt moving versus the CFO to get to that 100 basis points of latitude you talk about from the 9%? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:42:25Julian, I would say that the enhancement in cash flows is obviously when you look at the calculation, it's much more impactful to have a dollar come in, in cash flows than it is to have a dollar reduction in debt. So, the improvement and I stated in my formal remarks that we are looking to be well over 100 basis points, not only for 2025, but on sustainable basis throughout our forecast period, driven by enhanced cash flows from operations. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:42:55The 45% is still relevant though, right? Or is it better than Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:42:59that now? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:43:02Haven't done the math recently, but it's probably slightly enhanced. And as I said, you'll see when we file our 10 Q on Monday, you'll see that there's been about a $750,000,000 improvement quarter over quarter in our cash flows from operations. So that's very sizable and that moves the needle quite a bit. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:43:27Got it. All right, awesome. Thank you guys for that. I appreciate it. And then quick, if I can come back just a little bit nitty gritty here, but we'll do a little cleanup. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:43:33On the corporate drag, just to talk about that super quickly. I see the $0.16 drag, and I think for full year '24, you had about $0.16 How do you think about 1Q being a run rate versus what's in there that you should be excluding? Like, there's a lower tax rate, some other dynamics here. What should we be watching from taking away from that? I know you mentioned in some of in the prepared remarks, but I'm curious if there's anything you'd flag, like kind of what do you what's the glean from the 1Q for full year corporate? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:44:05So let me stop by saying that items that run through the parent and other category, that segment is becoming less items that are impacting. It's really two, it's interest and taxes. For the $0.16 impact in Q1 of twenty twenty five, let me remind you, Q1 of twenty twenty four, we were still capitalizing interest on, the offshore wind. That has now tailed off effective Q3 with the sale the final sale to GIP. So we will see a bit more of an impact in the first couple of quarters until we catch up. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:44:46In addition, the first quarter, we didn't have the full impact of the $1,400,000,000 holding company debt that we issued in mid April. So this quarter, you're seeing the full brunt of both of those items. As we progress through the year, year over year, quarter over quarter, it'll be far less significant. The only item that will create that is the tax benefits. And as I said, those tax benefits are typically recognized in Q3 and in Q4. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:45:21Got it. Is there a good full year tax rate you'd be running with given those benefits that you talked about in the back half of the year? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:45:28Yes. So our our tax rate for 2025 is in the range of, 22 and a half to 23 and a half percent. You know, last year, it was in the upper teens. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:45:41Yeah. No. Absolutely. Okay. That includes everything and so Alright. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:45:45Excellent, guys. Hey, thank you so much for your time and patience. Alright? Have a great day, guys. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:45:49Thanks. Thank you. Operator00:45:53You. One moment for our next question. And our next question comes from the line of Paul Patterson of Glenrock Associates. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:46:03Good morning, Paul. Paul PattersonAnalyst at Glenrock Associates LLC00:46:04Hey, good morning. So a lot of questions have been answered, but just really following up on the PBR. Assuming that these guys get it done by the end of the year, as you mentioned in the prepared remarks, when do you think the first practical impact on rates would be experienced, I mean, if you can, if you have a rough estimate as to when we might see it actually impacting you, if you follow what I'm saying, as opposed John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:46:40Sure, sure thing, Paul. So the first thing is have to file a rate case, number one, right? And in the Yankee case, we currently have proposed a PBR structure, so we were proactive. So we need to see how things continue to pan out. We did see revised swap proposal at the February. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:46:59So we hope to see a draft and a final decision kind of midyear July timeframe, July, August timeframe. So I think we still have more to come. Paul PattersonAnalyst at Glenrock Associates LLC00:47:10Right. So the Yankee case, just to refresh my memory, with the PBR, these giant sockets or whatever, would be, I apologize for being unfamiliar exactly, but when would those potentially impact the Yankee case? Would those impact the Yankee case, or would that be at a later time, do you think? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:47:34I think that's to be determined, Paul, to be quite honest with you, because we have proposed our PBR structure that we're very familiar and we've had it for nearly a decade in Massachusetts. So the timing is going to be a bit tight. We do expect a decision in the Yankee case in October timeframe. So if PURA issues its guidance, in the July or August timeframe, that's really, really close. So we're getting a little bit ahead of ourselves here. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:48:07So to be determined how that would ultimately shake out. Paul PattersonAnalyst at Glenrock Associates LLC00:48:10I appreciate that. And then in Massachusetts, it seems like the governor for the most part has been oriented towards sort of expanding low income assistance and sort of the phase in issue or the avoiding rate shock approach, if I understand it correctly. Is there anything else we should think about? One of the things I have heard sort of in the past is sort of an income determination, energy burden approach. Do you think that would be expanded greatly, or do you just see this as sort of what I just talked about, just expanding low income assistance and the avoidance of rate shock. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:48:53Yeah, mean, guess the one great thing I'll tell you about Governor Healy and this administration is that they're very collaborative and thoughtful. I participated in many discussion around the table. We were looking at opportunities, to try to help, customers that are in need. And I think it's been very, very productive. We continue to look at that. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:49:15And I think if you look at the 10% reduction we were able to help our customers achieve, that's just another example of when you collaborate, when the utilities collaborate with regulators and administrations, you get very positive outcomes that are a win win for everybody. So I think everything is on the table. I'm not saying that that particular one, I do remember it being discussed, but how it plays out, you know, it's still pretty early on in that. Paul PattersonAnalyst at Glenrock Associates LLC00:49:42Okay, great. I really appreciate it. Have a great one. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:49:45Thank you. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:49:45Thank you. Operator00:49:47Thank you. One moment for our next question. And our next question comes from the line of Andrew Wiesel of Scotiabank. Your line is now open. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:04Good morning, Andrew. Andrew WeiselDirector at Scotiabank00:50:06Hey, good morning, everyone. Andrew WeiselDirector at Scotiabank00:50:09First, to follow-up on the FFO to debt, just to clarify, which threshold are you referring to when you Andrew WeiselDirector at Scotiabank00:50:14talk about the 100 basis point cushion? Is it Andrew WeiselDirector at Scotiabank00:50:16the 12% at S and P? So you're talking about 13% or higher? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:21I'm talking about the both thresholds at S and P and Moody's. Andrew WeiselDirector at Scotiabank00:50:26Okay, so each of them on a corresponding calculation basis? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:30Correct, Andrew. Correct. Andrew WeiselDirector at Scotiabank00:50:33Great. Thank you for clarifying. Next, maybe I need a little bit of a reminder, but when you talk about tariffs and the Massachusetts mechanism around performance based rate making and inflation, please just remind me how would that work? And would you expect to fully pass on the effect? I think you mentioned an estimate of 3% to 6% impact. Andrew WeiselDirector at Scotiabank00:50:52Is your expectation that that would be fully passed on or just some portion of it? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:57Well, the reference to the 3% to 6% that I mentioned was on our capital program. So that would be capital projects related. I also said in my formal remarks that we see very little impact on O and M or O and M. What I'm trying with the reference that I made about the PBR mechanism, if these tariffs put inflationary pressure on the commodities that we purchase from a material from an O and M perspective or general inflation that we've seen across the board. The PBR mechanism that we have in Massachusetts, and we've had it for, as I said, nearly a decade now, the first layer of that mechanism is an adjustment for inflation using the JDP PI mechanism. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:51:43That adjustment, that inflationary adjustment is capped at 5%. So last year's PBR adjustment for NSTAR electric, for example, that took effect January one of this year, then inflation adjustment was about 3%, three point two five %. So if inflation were to creep up to 6%, we would at least get up to 5% of that rate impact. Andrew WeiselDirector at Scotiabank00:52:11I see. Thank you for clarifying that. Two different things, the O and M versus the capital, different buckets. Correct. Thank you for clarifying. Andrew WeiselDirector at Scotiabank00:52:18Got it. And one last one, if I may. Can you just give us your latest thoughts on timing of a potential CLMP rate case? Would that be something for 2025? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:52:28We're still assessing as as I've continuously communicated to you, the earliest we would likely file would be in the fall, but there's, you know, we're still assessing the timing of that. Andrew WeiselDirector at Scotiabank00:52:43Okay, thank you very much. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:52:45Thanks, Andrew. Operator00:52:48Thank you. I'm showing no further questions at this time. I'll now turn it back to Joe Nolan for closing remarks. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:52:54Great. Well, thank you all for taking the time to join us this morning. We really appreciate it. And you've got eight minutes to get on the Amarin call with my good friend, Marty Lyons. So enjoy. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:53:05Thank you, everyone. Operator00:53:08Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.Read moreParticipantsExecutivesRima HyderVP - Investor RelationsJoseph NolanPresident, CEO & ChairmanJohn MoreiraExecutive VP. CFO & TreasurerAnalystsDurgesh ChopraManaging Director at Evercore ISIAnalystCarly DavenportVice President, Equity Research at Goldman SachsJeremy TonetAnalyst at JPMorgan ChaseSophie KarpManaging Director & Equity Research Analyst at KeyBanc Capital MarketsAnthony CrowdellManaging Director at Mizuho Financial GroupTravis MillerAnalyst at MorningstarJulien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at JefferiesPaul PattersonAnalyst at Glenrock Associates LLCAndrew WeiselDirector at ScotiabankPowered by Key Takeaways First-quarter recurring EPS of $1.50 per share matched prior year results, supporting reaffirmation of 2025 guidance at $4.67–$4.82 and a long-term EPS growth target of 5%–7% through 2029. Eversource projects 8% rate base growth over the next five years within a $24.2 billion capital plan, shifting toward higher distribution investments in Massachusetts to meet electrification goals and pursuing transmission opportunities like ISO-NE RFPs and the Mystic acquisition. The Massachusetts AMI deployment is 40% complete ahead of a July smart meter rollout, complemented by digital customer experience enhancements and a 10% winter gas rate reduction to boost affordability and bill transparency. Utility segment gains—electric transmission (+$0.04/share) and natural gas (+$0.06/share)—offset a $0.12/share corporate drag; the planned Aquarion Water divestiture and regulatory recoveries will bolster the balance sheet and FFO-to-debt profile. Regulatory progress includes a pending New Hampshire rate case with a proposed four-year PBR plan, Massachusetts gas rate adjustments effective November 2025, and a 6% Connecticut CL&P rate cut on May 1, with further Yankee Gas and AMI dockets underway. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallEversource Energy Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Eversource Energy Earnings HeadlinesEversource Energy Executive Sells Significant Stock Shares!May 22 at 10:46 PM | tipranks.comWEC Energy, EnergySolutions explore new advanced nuclear generation at retired plantMay 21 at 12:59 PM | seekingalpha.com$19 for a FULL YEAR of stock picks?!Invest in Musk's AI Play With Just $100 You don't need deep pockets to ride the next wave of AI wealth. Discover how a $100 investment could give you exposure to Musk's private AI project — via one overlooked stock.May 24, 2025 | Behind the Markets (Ad)Eversource Energy: Balancing Earnings Challenges and Regulatory Risks with Strategic Financial MeasuresMay 19, 2025 | tipranks.comEversource to restore power after over 27K customers in Boston report outageMay 15, 2025 | msn.comEversource plans heft monthly charge for customers who opt out of smart meterMay 14, 2025 | msn.comSee More Eversource Energy Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Eversource Energy? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Eversource Energy and other key companies, straight to your email. Email Address About Eversource EnergyEversource Energy (NYSE:ES), a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.View Eversource Energy ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH StockAdvance Auto Parts Jumps on Surprise Earnings BeatAlibaba's Earnings Just Changed Everything for the StockCisco Stock Eyes New Highs in 2025 on AI, Earnings, UpgradesSymbotic Gets Big Earnings Lift: Is the Stock Investable Again?D-Wave Pushes Back on Short Seller Case With Strong EarningsAppLovin Surges on Earnings: What's Next for This Tech Standout? 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PresentationSkip to Participants Operator00:00:00Good day, and thank you for standing by. Welcome to the Eversource Energy First Quarter twenty twenty five Earnings Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during this session, you will need to press 11 on your telephone. Operator00:00:18You will then hear automated message if your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rima Hyder, Vice President of Investor Relations. Please go ahead. Rima HyderVP - Investor Relations at Eversource Energy00:00:36Good morning, and thank you for joining us today on the first quarter twenty twenty five earnings call. During this call, we'll be referencing slides that we posted this morning on our website. As you can see on slide one, some of the statements made during this call may be forward looking. These statements are based on management's current expectations and are subject to risk and uncertainty, which may cause the actual results to differ materially from forecasts and projections. We undertake no obligation to update or revise any of these statements. Rima HyderVP - Investor Relations at Eversource Energy00:01:07Additional information about the various factors that may cause actual results to differ in our explanation of non GAAP measures and how they reconcile to GAAP results is contained within our news release, the slides we posted last night, and in our most recent 10 Q and 10 ks. Speaking today will be Joe Nolan, our Chairman, President and Chief Executive Officer and John Marreira, our Executive Vice President and Chief Financial Officer and Treasurer. Also joining us today is Jay Booth, our Vice President and Controller. I will now turn the call over to Joe. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:01:40Thank you, Rima. Good morning, everyone, and thank you for joining us today for our first quarter earnings call. I am pleased to share our results and discuss the progress we have made towards our key initiatives in the first quarter of this year. This quarter, we saw strong growth across our transmission and distribution businesses versus last year, and we are pleased to reaffirm our 2025 EPS guidance, as well as our long term EPS growth rate of 5% to 7% through 2029. As shown on slide four, as a pure play pipes and wires regulated utility, we are uniquely positioned to leverage our strengths in transmission and distribution investment opportunities. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:02:31Our regulated status provides stability and predictability, allowing us to focus on long term growth and sustainability that will continue to deliver on customer expectations. Over the five year forecast period, we are projecting rate base growth at 8% with numerous additional opportunities outside of this forecasted period. As shown here, the composition of our rate base is strategically shifting toward higher distribution spend in Massachusetts, primarily to meet the state's electrification goals set in the electric sector modernization plan and conversely the reduction of capital investment in Connecticut. We are excited to partner with the Commonwealth of Massachusetts on its decarbonization strategy and to make necessary investments to meet these goals and enhance reliability. We have strong investment opportunities beyond our five year forecast period. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:03:38We were pleased to see that ISO New England recently issued a new RFP to solicit longer term proposals from transmission operators to address the region's future load growth in connection with their 2,050 transmission study. We are examining numerous opportunities and we look forward to working with ISO New England on this unique opportunity to address the region's energy transition and maintain system reliability. Another area of growth for us is the acquisition of the Mystic Site in Everett. With its strategic location, flexibility and existing infrastructure, this facility stands out as one of the most promising multi use interconnection points for a wide range of energy resources in New England, representing a unique opportunity to support the region's energy goals, spur economic development, and create jobs. These future transmission and distribution opportunities give us confidence for growth for years to come, as well as ensuring that our customers receive safe and reliable service. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:04:51At the heart of our operation is our commitment to customer innovation and affordability. We continue to invest in advanced technologies and innovative solutions that enhance the reliability and efficiency of our transmission and distribution networks. Our focus on affordability ensures that we deliver value to our customers while maintaining reasonable rates. We have launched several initiatives aimed at improving customer experience and reducing costs in the long term. As shown on slide five in Massachusetts, our AMI project remains on track with significant progress made on standing up, integrating and testing the necessary systems. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:05:40We began deployment on AMI communication network in Western Massachusetts at the start of this year and is now 40% complete. We expect to complete the AMI network before the first smart meter is deployed in July. We are excited about this technology and how it will empower customers to make data driven decisions about their energy usage and provide customers with more control than ever before. Additionally, with feedback from our customers through our robust Voice of the Customer program, we have implemented many user experience enhancements, including redesigning and streamlining the digital customer experience for managing their account needs. More importantly, we added greater functionality and created a new redesigned account overview page on our website, making it easier for our customers to compare their bills and better understand their usage. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:06:47Helping our customers understand their bill, educating them on energy related topics, and making it seamless for customers to interact with Eversource is a key objective for us. On the regulatory front, we continue to make progress across three states. Earlier this year, there was a call to action in Massachusetts from our customers, communities and state policymakers to address affordability, stabilize rates and provide transparency on energy bills. This was in response to high gas bills following the rate adjustments and increased demand due to a very cold winter. In collaboration with state leaders, we developed a plan to reduce winter rates for our gas customers by approximately 10% to smooth bill impacts during high usage periods, which went into effect beginning March 1. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:07:49We have also organized many events to work with and educate customers and communities we serve about the various options they have to manage their bills including energy efficiency programs. We recognize there's more to do to address transparency and affordability, and we are actively working with the administration, legislators, communities, and regulators on long term solutions to smooth rate shocks and address affordability. In Connecticut, PURA Commissioners Marissa Gillette and David R. Conti have been confirmed by the state legislature and we look forward to working with them to ensure customers continue to receive the safe, reliable electric, gas and water delivery services that they have become accustomed to over the years. In New Hampshire, we look forward to working with the new administration and partnering with them on meeting their energy goals. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:08:55We continue to execute on many fronts to strengthen our balance sheet. One of our key strategic initiatives was to divest Aquarion Water, which is anticipated to close by the end of the year. Last month, we filed for regulatory approval in all three states. The Aquarian proceeds along with our regulatory recoveries will enable us to improve our FFO to debt ratio from 2024 levels. Turning to a brief update on offshore wind and revolution wind project. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:09:32We are pleased to report that the construction of the onshore substation, which Eversource continues to oversee, is progressing very well. The onshore substation is the critical path to the project going into service. We continue to monitor the project's overall construction progress closely. Currently, given the latest construction updates and cost estimates we have been provided, we have concluded that we do not need to change the contingent liability that we recorded in the third quarter of twenty twenty four. In summary, our first quarter results reflect unwavering commitment to customer innovation, affordability, financial strength and sustainability. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:10:25We are focused on our 2025 key priorities, as shown on slide six, in the first quarter results clearly demonstrate our successful execution of these goals, showcasing our commitment to sustained growth and strategic vision as a pure play pipes and wires regulated utility. We are confident in our ability to continue driving value for our customers and shareholders as we move forward. Our prudent and long standing approach to financial and operational management ensures that we can continue to invest in critical infrastructure and innovation while delivering consistent returns to our shareholders. Thank you for joining us today. I will now turn the call over to John Marreira to discuss our financial results. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:11:21Thank you, Joe, and good morning, everyone. This morning, I will review first quarter earnings results, provide a regulatory update and also discuss our balance sheet progress and credit metrics. I'll start with our first quarter results on Slide eight. GAAP and recurring earnings results for the first quarter were $1.5 per share compared with GAAP and recurring earnings of $1.49 per share last year. Higher utility earnings were largely offset by a decrease in parent and other earnings. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:12:00Starting with transmission, higher electric transmission earnings of $04 per share were due to increased revenues from continued system investments to address agent infrastructure, reliability and load growth, partially offset by the impact of share dilution. Higher electric distribution earnings of $03 per share benefited from grid modernization and system improvement rate mechanisms. Additionally, base distribution rate increases in New Hampshire and Massachusetts provide a timely recovery of investments. Partially offsetting these revenue adjustments were higher property taxes, interest, depreciation and share dilution. The improved results of $06 per share at Eversource's natural gas segment were due primarily to higher revenues from continued investments to replace agent infrastructure, resulting in base distribution rate increases at our Massachusetts gas businesses, including the eGMA rate base roll in that became effective November first of twenty twenty four, in accordance with the 2021 settlement agreement. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:13:16Offsetting these higher natural gas revenues were higher O and M, interest, depreciation, property taxes and the impact from share dilution. Water earnings were comparable year over year as the first quarter is typically a very low usage period. Eversource parent losses increased $0.12 per share in 2025. Lower results were as expected, primarily due to higher interest expense and the impact from the absence of capitalized interest associated with our former offshore wind investment. Overall, our first quarter earnings were in line with our expectations, and we are pleased to start 2025 with such a solid performance. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:14:05Moving to our key regulatory items as highlighted on slide nine. Starting with New Hampshire, where we currently have a pending rate proceeding. Hearings in this proceeding are scheduled to start next week. In addition to recovery of previous system investments and deferred storm costs, we have proposed implementing a four year performance based rate making plan, including a capital support mechanism that would adjust rates annually. We anticipate a final decision in July for rates to become effective August 1. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:14:47In Massachusetts on November one of twenty twenty five, new rates will be effective for NSTAR Gas under the annual PBR adjustment and a rate base rolling. In addition, rates reflect in the second phase of the 2024 rate based roll in for eGMA of approximately 62,000,000 Moving to Connecticut, we are pleased to report that the average CLMP residential customer will see a 6% reduction on May 1 due to the implementation of the annual rate adjustment mechanism. We appreciate the progress made by PURA from the proposed decision to the final decision to provide customers with this benefit. Also in Connecticut, we have an ongoing Yankee Gas rate case, where we seek to recover a revenue deficiency of $2.00 $9,000,000 reflecting critical investments in cost increases since our previous rate review in 2018. Hearings are scheduled for June with the final decision scheduled at the October for rates effective November first of this year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:16:09Next, let me reaffirm our five year capital plan of $24,200,000,000 as shown on Slide 10, which reflects our five year utility infrastructure investments by segment. This plan is a 10% increase over the last five year plan. As a reminder, this forecast includes only those projects that we have a clear line of sight on from a regulatory approval perspective. The plan includes nearly $7,000,000,000 of transmission infrastructure investments over the next five years, greatly enabled by efforts in Massachusetts last year, including the state's clean energy bill that reformed citing and permitting of energy facilities, as well as the Massachusetts Department of Public Utilities approval of the Electric Sector Modernization Plan or ESMP. It also includes the Greater Cambridge Energy Project that commenced construction earlier this year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:17:18As a reminder, this project consists of a 35,000 square foot underground substation at a projected capital cost of $1,800,000,000 with nearly 80% of this investment to be recovered through our transmission tariff. Turning to electric distribution, the capital forecast reflects over $10,000,000,000 of planned utility infrastructure investments, with investments related to Massachusetts operations making up 60% of this capital plan. This includes $850,000,000 for the AMI program in Massachusetts that Joe discussed. We have already realized significant benefits for our customers from the new billing system implemented to support AMI. And we look forward to providing customers with additional benefits as we begin meter installation later this year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:18:21In addition to our base capital investment forecast, we continue to see opportunities that could provide additional investments in the range of 1.5 to $2,000,000,000 within the forecast period. And as Joe mentioned, we have other growth opportunities that could materialize towards the back end of our forecast period and beyond. Let me now turn the subject of potential tariffs and how they could impact our O and M and capital investment plan. First, we see minimal, if any impact on our operation and maintenance expense. Secondly, we could potentially see cost increases resulting from the tariffs impacting our capital investment plan, but we expect them to be manageable. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:19:15While tariffs are disruptive to our supply chain, we have been managing through supply chain disruption for the past five years, especially through the pandemic years. The work we have done to expand and diversify our supply chain prior to the tariffs has positioned us well to mitigate this potential tariff risk. Through this strategic planning, we have almost no direct exposure to China, where the tariff impact is slated to be the highest. Overall, we believe the potential cost increase to our capital projects will be approximately 3% to 6%. Should these potential tariffs put pressure on inflation, keep in mind that in Massachusetts, where we currently have performance based rates that include an inflationary adjustment, which would allow us to recover a portion of this inflation impact. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:20:11In addition, we have proposed PBR rate mechanisms in the PSNH and Yankee rate filings. Turning to Slide 11, to efficiently finance our customer focused investments, we have taken a number of steps to enhance our cash flow position and improve our balance sheet profile. Our plan to enhance our cash flows is well balanced alongside our equity needs of $1,200,000,000 The majority of which we expect to issue towards the back half of our five year forecast period. This plan also supports our FFO to debt ratio target, which we expect to improve significantly over 2024 actual results, and certainly above the rating agency downgrade thresholds. We continue to expect our FFO to debt targets for 2025 to be well above 100 basis points over the rating agency thresholds. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:21:16As Joseph NolanPresident, CEO & Chairman at Eversource Energy00:21:16you John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:21:16can see on the slide, we have provided you with the rating agency thresholds at both S and P and Moody's, as well as the actual 2024 results. As we shared with you last quarter, and as shown on slide 12, we have executed on all of the items necessary to improve our cash flows and strengthen our balance sheet. Next, I will turn to 2025 earnings guidance on Slide 13. With the first quarter in the books, we are reaffirming our 2025 recurring earnings per share in the range of $4.67 to $4.82 and our long term EPS growth rate of 5% to 7% off of the 2024 base. Our EPS growth profile will continue to strengthen as we execute on the strategic plan with customer focused transmission and distribution infrastructure investments recovered through constructive rate mechanisms. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:22:22In addition, the progress with the recovery of deferred storm costs throughout the system and continued O and M cost discipline provide a solid foundation for Eversource to return value to our investors for years to come. I will now turn the call over to Rima to begin the Q and A session. Rima HyderVP - Investor Relations at Eversource Energy00:22:44Thank you, John. Marvin, we are ready for our question and answers now. Thank you. Operator00:22:49Thank you. At this time, we'll conduct a question and answer session. As a reminder to ask a question, you'll need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please limit yourself to one question and a follow-up. Operator00:23:06Please stand by while I compile the Q and A roster. Our first question comes from the line of Durgesh Chopra of Evercore ISI. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:23:18Good morning, Durgesh. Durgesh ChopraManaging Director at Evercore ISI00:23:20Hey, good morning, Joe. For giving Good morning, John. Guys, just appreciate the tariff commentary. We've been getting a lot of questions on the offshore project, obviously, under construction. Can you just frame for us if you already have the equipment on hand? Durgesh ChopraManaging Director at Evercore ISI00:23:41I know there's one monopile that is being manufactured. There's also some storage, some equipment you have stored in Canada. Maybe just a little bit more color, you know, on the tariff exposure to revolution, please. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:23:54Sure. I appreciate the appreciate the question. We have all items procured. There is as you mentioned, there is a monopod that's being constructed that we do expect in the fall. But the remaining items, even the item that is the substation that's being stored in Canada has already come to The United States. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:24:16It's already been here. So we don't anticipate or expect any calculated challenges of anything around revolution other than, you know, is one monopod that is coming that's under construction. But we feel very good about it as we had mentioned, you know, this project is very, very mature. It's going on very, very well. It's construction. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:24:38I'm very, very pleased with the progress. As you know, we do oversee the construction of that substation in Rhode Island. And I will tell you that both John and I get daily updates on the progress and I'm very, very impressed with the team down there and what they've been able to do to bring that station to fruition. So we don't feel as though there's going to be anything that's going to challenge us around tariffs as it relates to revolution. But Dagesh, I also want Joseph NolanPresident, CEO & Chairman at Eversource Energy00:25:08to talk to you a Joseph NolanPresident, CEO & Chairman at Eversource Energy00:25:08little bit about our business and some of our capital investments. When COVID hit, we made a concerted effort to go in and kind of fill the warehouses with a lot of components and parts that might be challenging to get. So fortunately Eversource is blessed with a very robust warehouse operation that hopefully will insulate us from anything that's very, very challenging. But again, it is an issue we need to look at. We do look at it all the time. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:25:41John, it does oversee warehousing and procurement. So it's in very, very good hands, I know that he'll do everything he can to mitigate any risk that tariffs could have on the company. Durgesh ChopraManaging Director at Evercore ISI00:25:54Got it. Got it, Joe. Thanks. That's very thorough. Thank you. Durgesh ChopraManaging Director at Evercore ISI00:25:57Sounds like you don't see it as a major risk. Okay. Really quickly shifting gears, Aquarian still on track for year end. And then what kind of regulatory approval timeline, you know, as as as you think about approvals through two different states? Are you should we be expecting, please? Durgesh ChopraManaging Director at Evercore ISI00:26:13Thank you. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:26:14Sure. Yeah, the inquiry filing has been made. We anticipate that that transaction will close in 2025. We don't see any bumps in the road. As you know, we will pass through Connecticut, Massachusetts and New Hampshire, the regulatory bodies. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:26:33But it's a pretty straightforward filing and I think that obviously when you look at the buyer of the assets, you know, they're very competent buyer that has is already operating in the jurisdiction. So we don't see any issues at all. Durgesh ChopraManaging Director at Evercore ISI00:26:49Got it. Is there a specific timeline for Connecticut to rule on this? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:26:57Yes. They have the timeline would be October. So five months range. Durgesh ChopraManaging Director at Evercore ISI00:27:05Thank you. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:27:07Alrighty. Operator00:27:08Thank you. One moment for our next question. Our next question comes from the line of Shar Pourreza of Guggenheim Partners. Your line is now open. Analyst00:27:20Hey, guys. Good morning. It's actually James on for Shar. Happy Friday. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:27:23Good morning, James. Good morning, James. Analyst00:27:25Good morning. So maybe just starting off in Connecticut, a lot of moving pieces on the legislative front. I think one of them is securitization potentially for the storm cost reg assets. I guess if you receive that, would it change your thoughts on the timing, the quantum of the current ATM equity? I think you had said back half, but just any kind of thoughts there for us. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:27:48Yeah. Hey, James, this is John. Yes. So, obviously, as I communicated in February, we did not assume securitization as part of our financing strategy. But certainly, if we get that and we get that cash in the door on an accelerated basis, we would revisit our equity needs at that point in time. Analyst00:28:07Okay, perfect. And then just any updated thoughts or expectations for movement in the AMI process at this point? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:28:15Well, that docket James is under the final one we did file for reconsideration to try to get some clarity and some certainty around the recovery of dollars that we might spend. And so we'll see how that plays out there, but we just want to get comfortable. Obviously, we'll spend what Connecticut wants us to spend, but we do need to have line of sight on recovery. Analyst00:28:39Excellent. Thanks guys. I'll leave it there. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:28:41Thank you. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:28:42Thank you. Operator00:28:44You. One moment for our next question. Our next question comes from the line of Carly Davenport of Goldman Sachs. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:28:55Good morning, Carly DavenportVice President, Equity Research at Goldman Sachs00:28:56Good morning. For taking the questions. Maybe just a follow-up on Connecticut. Just could you provide your latest thoughts just around some of the noise on the forward composition of PURA just in terms of filling those other two seats? You can share and how you're thinking about the timing of when potentially we could get some certainty on that piece? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:29:17Yeah, you know, great question. You know, we are indifferent on whether it's three or whether it's five. We do feel as though there's a movement that, know, hopefully we'll see some activity down there on that and get some clarity. But you know, unfortunately, I cannot predict for you when we might see it or whether it's three or whether it's five. You know we are obviously eager for a stable regulatory climate in that jurisdiction. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:29:47So we'll continue to monitor it we will hope that, we do get a transparent, regulatory environment that allows us to continue to operate in that state. Carly DavenportVice President, Equity Research at Goldman Sachs00:29:59Great. Appreciate that. And then maybe just shifting to the balance sheet and FFO to debt. Appreciate the detail that you shared in the slides there. Just anything you can provide in terms of conversations, in particular with Moody's, in terms of what they need to see to sort of shift from the negative watch and how you feel about the path to executing on that goal? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:30:20Yes, Collie. I would say what they need to see is, us to continue to execute on our plan that we have put before them. We're going through a refresh of that plan, next month, with all three agencies. But suffice it to say, as you'll see in our first quarter statement of cash flows, you'll see a significant improvement in our operating cash flows. And it's really execution of what we've been saying for the past year. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:30:48The recovery of previously under recovered regulatory costs have come in and will continue to come in. That in and of itself is probably will generate benefit FFO to debt at Moody's of about 300 basis points. So everything that we've been executing on, everything that we've been communicating to you all has materialized and will continue to materialize. Carly DavenportVice President, Equity Research at Goldman Sachs00:31:13Great. Thank you for the color. Operator00:31:17Thank you. We'll move it for our next question. Our next question comes from the line of Jeremy Tonet of JPMorgan Securities. Your line is now open. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:31:29Hey, Jeremy. Good morning, Jeremy. Jeremy TonetAnalyst at JPMorgan Chase00:31:31Morning. Thank you for the color here today. Just wanted to pick up with the FFO to debt commentary that you provided in the slide there. Just wondering if you had thoughts you could share with regards to where you think you'd land in 2026 FFO to debt on both agency metrics there? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:31:50Sure. I mean, the groundwork that we've laid to get us to a much better spot in 2025, that'll continue with the reduction of about $2,400,000,000 of debt just related to the acquiring on sale. That's going to continue to persist. And what I think is very, very important for you all to understand is that this huge under recovery, what's really important and what I feel so optimistic about and confident is that the future costs and rates have been set to align with those costs. So we should not, see significant swings in under recoveries in the future. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:32:32So then, having that sustainable cost incurred with the revenues to match it is a major, major, benefit for us. Jeremy TonetAnalyst at JPMorgan Chase00:32:43Got it. And so I guess, do you expect FFO to debt will improve from the numbers outlined in 2025, the 100 bps cushion? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:32:53Our FFO to debt will continue to enhance. Obviously, that's contingent. We have to look at where our capital forecast is over our five year period. As I've communicated to you all, there's potentially 1.5 to $2,000,000,000 kind of sitting on the sidelines, and that we'll hope to have clarity certainly within the next six to twelve month period. And as we typically do, we'll update you all in our financing plan annually. Jeremy TonetAnalyst at JPMorgan Chase00:33:23Got it. Thank you. And then just as it relates to the Rev Win cost estimates, just wondering, I guess, how the process works with there. You guys kind of work together in formulating those estimates, those expectations of tariff impacts, and we would expect them to kind of say the same thing or the independent processes. Just wondering if how that process works. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:33:46No, it's a collaborative. We get updates, as Joe mentioned, from them. They share their forecast update routinely. So we're much aligned obviously. The deal, that we struck with GIP gives us that line of sight and clarity. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:34:05We have access to Arstad and we're constantly engaged with GIP. Jeremy TonetAnalyst at JPMorgan Chase00:34:12Okay, great. Thank you. I'll leave it there. Operator00:34:17Thank you. One moment for our next question. Our next question comes from the line of Sophie Karp of KBCM. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:34:28Good morning, Sophie. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:34:29Good morning. Sophie KarpManaging Director & Equity Research Analyst at KeyBanc Capital Markets00:34:30Good morning. Thank you for taking my question. I was wondering about the upcoming Millstone recontracting rates. So kinda along the lines of would that present an opportunity to, you know, either maybe improve affordability for rate payers or at least make it clearer to rate payers in Connecticut what they're paying for because I think right now it's rolled into something called public benefit charge. From a PR standpoint, would that benefit you in any way? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:35:03Yeah, mean, that contract is up in 2029, obviously having a 1,000 megawatts of clean energy at baseload generation in the region is helpful and in a region where we are actually losing generation. So it's very helpful, but I think it's too early right now, Sophie, to be looking at that contract and maybe what's gonna happen going forward. As you know, this was a desire of the administration, the previous administration to to contract for this power and, you know, we we we'd have to work collaboratively with the administration on what's important to them. Sophie KarpManaging Director & Equity Research Analyst at KeyBanc Capital Markets00:35:41Alright. Thank you very much. That's all for me. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:35:43Welcome. Thank you. Thank you. Operator00:35:46One moment for our next question. Our next question comes from the line of Anthony Cordell of Mizuho. Your line is now open. Anthony CrowdellManaging Director at Mizuho Financial Group00:35:57Good morning, Anthony. Good morning. Hey, good morning. Let's go Knicks, right? I think I heard that in the background. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:36:03We'll see what happens Monday. Anthony CrowdellManaging Director at Mizuho Financial Group00:36:06I don't think the Knicks have a chance, but just some odds and ends. In Connecticut, the securitization, the public benefit and the storm cost recovery, are those rolled up together in same legislation or it's not decided yet? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:36:23Well, yeah, no, it is rolled up. I mean, not that it would be allowing securitization for storm costs. But in SB fifteen sixty, all of those issues are discussed and contemplated. So, but again, that's just to allow the recovery of storm cost. As you know, we do have a prudence review underway at PURA and we'll continue to work through that process, but it's going very, very well. Anthony CrowdellManaging Director at Mizuho Financial Group00:36:54Great. And then if I move to Massachusetts, I think on Wednesday, there was a Berkshire gas decision that maybe changed some of the rules on the acronym, I think it's GSEP. Does that impact you guys or what kind of exposure do you have with the new rules on the GSEP? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:37:14Well, the GSEP filing impacted NSTAR Gas and EGMA, Anthony, where they lowered the ceiling from 3% cap to 2.5%. So in and of itself, I don't see that as something that's devastating. We can certainly manage to that. Obviously, our focus will continue to make sure that we provide safe and reliable gas services to our customers. That's first and foremost. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:37:46And once again, I think, we're still going through that review process and we haven't determined what action we would take. So I think it's a bit early in that process. So there's more to come, but we don't see that as a major impact to us. It's not as though they don't want us to make the investments, they continue to support it, which is but they're basically saying, hey, consider other non pipe alternatives. So that's really what the message and what they've communicated to us and we're very supportive of that concept. Anthony CrowdellManaging Director at Mizuho Financial Group00:38:20Great. And if I could just squeeze one more in, it follows off of Jerry Geshe's questioning earlier. Have you guys stated what percentage of the Revolution project is complete, fifty, forty, 30? Have you guys quantified what percent of the project is completed? Joseph NolanPresident, CEO & Chairman at Eversource Energy00:38:35We have not. I will just tell you that construction is going very, very well. Anthony CrowdellManaging Director at Mizuho Financial Group00:38:41Great. Thanks for taking my questions and Nixon seven. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:38:46Thank you. Operator00:38:49Thank you. One moment for our next question. Our next question comes from the line of Travis Miller of Morningstar. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:39:00Good morning, Good morning, everyone. Good morning. Travis MillerAnalyst at Morningstar00:39:05Back sticking on the regulatory under recoveries, wonder if you Travis MillerAnalyst at Morningstar00:39:08could just give a little bit Travis MillerAnalyst at Morningstar00:39:09of a list here what you got in, in the first quarter and the ones you expect or what you expect to get in over the next, say, two quarters or even through the end of the year? I know that the New Hampshire one is outstanding, Connecticut is a bit outstanding, but you have one John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:39:26Well, I would say the most significant one, Travis, is the RAM docket, which recovered some of the Millstone, Seabrook, kind of all that the public benefits charge, some bad debt recovery. As you know, we had a $900,000,000 rate increase to collect those on the recoveries and to set rates for the current year at a much more reasonable level. So that was a $900,000,000 rate increase that went live July 1. And that runs from July through April thirtieth of this year. And then recently, as I stated in my formal remarks, we just got the final decision on the RAM, for this year that will go live May, that went live May 1, which lowered the recovery by $142,000,000 So we have very good line of sight, but suffice it to say, in that 300 basis point that I just mentioned, that includes the bulk of the RAM decision recovery of those costs. Travis MillerAnalyst at Morningstar00:40:35Okay, and then the New Hampshire and then any kind of results future Connecticut? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:40:42I would characterize it in this fashion, Massachusetts and New Hampshire, we have timely recovery. They could, you know, within a very short period of time, we adjust rates, whether it's no recovery or under recovery, and they're not significant balances, Travis. Travis MillerAnalyst at Morningstar00:40:59Yes. Okay, very good. And then just real quick, that $1.5 to $2,000,000,000 CapEx opportunity, anything different or changed in that bucket since the last quarter or since February? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:41:13Well, always continue to progress and look at it. It's a little bit early and obviously embedded in that is the AMI in Connecticut. And I think Joe addressed that. Travis MillerAnalyst at Morningstar00:41:25Okay, very good. Thanks Operator00:41:30you. One moment for our next question. Our next question comes from the line of Julien Dumoulin Smith of Jefferies. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:41:41Morning, Julien. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:41:43JULIEN Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:41:43Hey. Hey. Are you guys doing? Great. Good. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:41:46Excellent. Thank you for the time. Look, I just wanted to come back to where Jeremy was a second ago. If we could talk a little bit more about the FFO to debt numbers and just trying to understand like the numerator and denominator a little bit because clearly hearing your comments about the 100 basis points of latitude, just wanted to understand a little bit more about how you're seeing that happen. Because if I remember right, I think last quarter, you guys were talking about this, I think it was a 45% number on improvement in operating cash flow. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:42:12So it's a good I think that was a good proxy for thinking about the numerator improving. But is that still the case? Or how do you think about the debt moving versus the CFO to get to that 100 basis points of latitude you talk about from the 9%? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:42:25Julian, I would say that the enhancement in cash flows is obviously when you look at the calculation, it's much more impactful to have a dollar come in, in cash flows than it is to have a dollar reduction in debt. So, the improvement and I stated in my formal remarks that we are looking to be well over 100 basis points, not only for 2025, but on sustainable basis throughout our forecast period, driven by enhanced cash flows from operations. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:42:55The 45% is still relevant though, right? Or is it better than Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:42:59that now? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:43:02Haven't done the math recently, but it's probably slightly enhanced. And as I said, you'll see when we file our 10 Q on Monday, you'll see that there's been about a $750,000,000 improvement quarter over quarter in our cash flows from operations. So that's very sizable and that moves the needle quite a bit. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:43:27Got it. All right, awesome. Thank you guys for that. I appreciate it. And then quick, if I can come back just a little bit nitty gritty here, but we'll do a little cleanup. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:43:33On the corporate drag, just to talk about that super quickly. I see the $0.16 drag, and I think for full year '24, you had about $0.16 How do you think about 1Q being a run rate versus what's in there that you should be excluding? Like, there's a lower tax rate, some other dynamics here. What should we be watching from taking away from that? I know you mentioned in some of in the prepared remarks, but I'm curious if there's anything you'd flag, like kind of what do you what's the glean from the 1Q for full year corporate? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:44:05So let me stop by saying that items that run through the parent and other category, that segment is becoming less items that are impacting. It's really two, it's interest and taxes. For the $0.16 impact in Q1 of twenty twenty five, let me remind you, Q1 of twenty twenty four, we were still capitalizing interest on, the offshore wind. That has now tailed off effective Q3 with the sale the final sale to GIP. So we will see a bit more of an impact in the first couple of quarters until we catch up. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:44:46In addition, the first quarter, we didn't have the full impact of the $1,400,000,000 holding company debt that we issued in mid April. So this quarter, you're seeing the full brunt of both of those items. As we progress through the year, year over year, quarter over quarter, it'll be far less significant. The only item that will create that is the tax benefits. And as I said, those tax benefits are typically recognized in Q3 and in Q4. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:45:21Got it. Is there a good full year tax rate you'd be running with given those benefits that you talked about in the back half of the year? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:45:28Yes. So our our tax rate for 2025 is in the range of, 22 and a half to 23 and a half percent. You know, last year, it was in the upper teens. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:45:41Yeah. No. Absolutely. Okay. That includes everything and so Alright. Julien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at Jefferies00:45:45Excellent, guys. Hey, thank you so much for your time and patience. Alright? Have a great day, guys. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:45:49Thanks. Thank you. Operator00:45:53You. One moment for our next question. And our next question comes from the line of Paul Patterson of Glenrock Associates. Your line is now open. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:46:03Good morning, Paul. Paul PattersonAnalyst at Glenrock Associates LLC00:46:04Hey, good morning. So a lot of questions have been answered, but just really following up on the PBR. Assuming that these guys get it done by the end of the year, as you mentioned in the prepared remarks, when do you think the first practical impact on rates would be experienced, I mean, if you can, if you have a rough estimate as to when we might see it actually impacting you, if you follow what I'm saying, as opposed John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:46:40Sure, sure thing, Paul. So the first thing is have to file a rate case, number one, right? And in the Yankee case, we currently have proposed a PBR structure, so we were proactive. So we need to see how things continue to pan out. We did see revised swap proposal at the February. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:46:59So we hope to see a draft and a final decision kind of midyear July timeframe, July, August timeframe. So I think we still have more to come. Paul PattersonAnalyst at Glenrock Associates LLC00:47:10Right. So the Yankee case, just to refresh my memory, with the PBR, these giant sockets or whatever, would be, I apologize for being unfamiliar exactly, but when would those potentially impact the Yankee case? Would those impact the Yankee case, or would that be at a later time, do you think? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:47:34I think that's to be determined, Paul, to be quite honest with you, because we have proposed our PBR structure that we're very familiar and we've had it for nearly a decade in Massachusetts. So the timing is going to be a bit tight. We do expect a decision in the Yankee case in October timeframe. So if PURA issues its guidance, in the July or August timeframe, that's really, really close. So we're getting a little bit ahead of ourselves here. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:48:07So to be determined how that would ultimately shake out. Paul PattersonAnalyst at Glenrock Associates LLC00:48:10I appreciate that. And then in Massachusetts, it seems like the governor for the most part has been oriented towards sort of expanding low income assistance and sort of the phase in issue or the avoiding rate shock approach, if I understand it correctly. Is there anything else we should think about? One of the things I have heard sort of in the past is sort of an income determination, energy burden approach. Do you think that would be expanded greatly, or do you just see this as sort of what I just talked about, just expanding low income assistance and the avoidance of rate shock. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:48:53Yeah, mean, guess the one great thing I'll tell you about Governor Healy and this administration is that they're very collaborative and thoughtful. I participated in many discussion around the table. We were looking at opportunities, to try to help, customers that are in need. And I think it's been very, very productive. We continue to look at that. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:49:15And I think if you look at the 10% reduction we were able to help our customers achieve, that's just another example of when you collaborate, when the utilities collaborate with regulators and administrations, you get very positive outcomes that are a win win for everybody. So I think everything is on the table. I'm not saying that that particular one, I do remember it being discussed, but how it plays out, you know, it's still pretty early on in that. Paul PattersonAnalyst at Glenrock Associates LLC00:49:42Okay, great. I really appreciate it. Have a great one. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:49:45Thank you. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:49:45Thank you. Operator00:49:47Thank you. One moment for our next question. And our next question comes from the line of Andrew Wiesel of Scotiabank. Your line is now open. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:04Good morning, Andrew. Andrew WeiselDirector at Scotiabank00:50:06Hey, good morning, everyone. Andrew WeiselDirector at Scotiabank00:50:09First, to follow-up on the FFO to debt, just to clarify, which threshold are you referring to when you Andrew WeiselDirector at Scotiabank00:50:14talk about the 100 basis point cushion? Is it Andrew WeiselDirector at Scotiabank00:50:16the 12% at S and P? So you're talking about 13% or higher? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:21I'm talking about the both thresholds at S and P and Moody's. Andrew WeiselDirector at Scotiabank00:50:26Okay, so each of them on a corresponding calculation basis? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:30Correct, Andrew. Correct. Andrew WeiselDirector at Scotiabank00:50:33Great. Thank you for clarifying. Next, maybe I need a little bit of a reminder, but when you talk about tariffs and the Massachusetts mechanism around performance based rate making and inflation, please just remind me how would that work? And would you expect to fully pass on the effect? I think you mentioned an estimate of 3% to 6% impact. Andrew WeiselDirector at Scotiabank00:50:52Is your expectation that that would be fully passed on or just some portion of it? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:50:57Well, the reference to the 3% to 6% that I mentioned was on our capital program. So that would be capital projects related. I also said in my formal remarks that we see very little impact on O and M or O and M. What I'm trying with the reference that I made about the PBR mechanism, if these tariffs put inflationary pressure on the commodities that we purchase from a material from an O and M perspective or general inflation that we've seen across the board. The PBR mechanism that we have in Massachusetts, and we've had it for, as I said, nearly a decade now, the first layer of that mechanism is an adjustment for inflation using the JDP PI mechanism. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:51:43That adjustment, that inflationary adjustment is capped at 5%. So last year's PBR adjustment for NSTAR electric, for example, that took effect January one of this year, then inflation adjustment was about 3%, three point two five %. So if inflation were to creep up to 6%, we would at least get up to 5% of that rate impact. Andrew WeiselDirector at Scotiabank00:52:11I see. Thank you for clarifying that. Two different things, the O and M versus the capital, different buckets. Correct. Thank you for clarifying. Andrew WeiselDirector at Scotiabank00:52:18Got it. And one last one, if I may. Can you just give us your latest thoughts on timing of a potential CLMP rate case? Would that be something for 2025? John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:52:28We're still assessing as as I've continuously communicated to you, the earliest we would likely file would be in the fall, but there's, you know, we're still assessing the timing of that. Andrew WeiselDirector at Scotiabank00:52:43Okay, thank you very much. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:52:45Thanks, Andrew. Operator00:52:48Thank you. I'm showing no further questions at this time. I'll now turn it back to Joe Nolan for closing remarks. Joseph NolanPresident, CEO & Chairman at Eversource Energy00:52:54Great. Well, thank you all for taking the time to join us this morning. We really appreciate it. And you've got eight minutes to get on the Amarin call with my good friend, Marty Lyons. So enjoy. John MoreiraExecutive VP. CFO & Treasurer at Eversource Energy00:53:05Thank you, everyone. Operator00:53:08Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.Read moreParticipantsExecutivesRima HyderVP - Investor RelationsJoseph NolanPresident, CEO & ChairmanJohn MoreiraExecutive VP. CFO & TreasurerAnalystsDurgesh ChopraManaging Director at Evercore ISIAnalystCarly DavenportVice President, Equity Research at Goldman SachsJeremy TonetAnalyst at JPMorgan ChaseSophie KarpManaging Director & Equity Research Analyst at KeyBanc Capital MarketsAnthony CrowdellManaging Director at Mizuho Financial GroupTravis MillerAnalyst at MorningstarJulien Dumoulin-SmithII-Ranked & 'Hall of Fame' Research Analyst covering Power, Utilities & Clean Energy at JefferiesPaul PattersonAnalyst at Glenrock Associates LLCAndrew WeiselDirector at ScotiabankPowered by