INVESTOR CALL Investor Call February 22, 2017
INVESTOR CALL Safe Harbor All per-share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities allocated to such business, but rather represent a direct interest in Eversource Energy's assets and liabilities, as a whole. EPS by business is a non-GAAP (not determined using generally accepted accounting principles) measure that is calculated by dividing the net income or loss attributable to controlling interests of each business by the weighted average diluted Eversource parent common shares outstanding for the period. Management uses this non-GAAP financial measure to evaluate earnings results, provide details of earnings results by business, and more fully compare and explain our fourth quarter and year-end 2016 and 2015 results. Management believes that this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of Eversource Energy’s businesses. Non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated net income attributable to controlling interests or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance. This presentation includes statements concerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, readers can identify these forward-looking statements through the use of words or phrases such as “estimate, “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, cyber breaches, acts of war or terrorism, or grid disturbances; actions or inaction of local, state and federal regulatory, public policy and taxing bodies; changes in business conditions, which could include disruptive technology related to Eversource Energy’s current or future business model; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; fluctuations in weather patterns; changes in laws, regulations or regulatory policy; changes in levels or timing of capital expenditures; disruptions in the capital markets or other events that make Eversource Energy’s access to necessary capital more difficult or costly; developments in legal or public policy doctrines; technological developments; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors. Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC) and updated as necessary, and are available on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertainties that may materially affect Eversource Energy’s actual results. You should not place undue reliance on the forward-looking statements; each speaks only as of the date on which such statement is made, and Eversource Energy undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. 1
INVESTOR CALL Agenda � Shareholder Value Jim Judge � Regional Leadership President & CEO � 2016 Successes � Northern Pass Lee Olivier � Bay State Wind EVP Enterprise Strategy & � Access Northeast Business Development � 2016 Performance Phil Lembo � Progress on Major Projects EVP, CFO & Treasurer � Regulatory Update � Financial Outlook 2
INVESTOR CALL Jim Judge President & Chief Executive Officer
INVESTOR CALL Our Long -Term Focus Low-cost clean energy solutions for the region’s energy challenges Clean Energy • Partner with world class energy providers to offer new clean energy options • Continue to invest in best-in-class efficiency programs Improve the customer experience through continually enhanced programs Customers • More efficient, quicker services • Enhanced information in customer desired delivery method • Continued upgrades in our electric distribution system and natural gas infrastructure to maintain top level reliability Strong partnerships across New England Community • Help to build healthier, stronger, economically vibrant communities Continue to deliver strong financial performance • Attractive earnings growth Investors • Upper tier dividend growth • Financial strength to achieve long-term growth plan without new equity • Highest corporate credit ratings in industry 4
INVESTOR CALL Strong Long-Term Earnings Growth Expected to Continue $2.81 $3.05– $3.20 $2.96 $2.81 $2.65 $2.53 $2.28 2012A* 2013A* 2014A* 2015A* 2016A 2017E 2018E 2019E 2020E *Excludes merger and integration costs 5
INVESTOR CALL An Integral Part of Our Total Return is Our Dividend Growth Which Continues to Outperform Peers Annualized Dividend $1.90 $1.78 $1.67 5% - 7% $1.57 $1.47 6.7% $1.372 6.6% $1.10 6.4% 6.8% 7.1% 24.7%* 7.3% 2012 2017 2011 2013 2014 2015 2016 * Reflects impact of the merger Payout Ratios: 58% 59% 59% 60% 6
INVESTOR CALL 2016 Successes Significant progress in new strategic Executed $2.2B Capital Plan investment opportunities • Electric and natural gas system • Partnership agreement to develop investments to improve reliability, Bay State Wind connect new customers • 10,770 new natural gas heating • MA DPU approves construction of customers 62 MW of solar • Accelerating replacement of older infrastructure • NPT on schedule to receive siting • New systems to improve productivity, approvals in 2 nd half of 2017 standardize operations 7
INVESTOR CALL Lee Olivier EVP Enterprise Energy Strategy & Business Development
INVESTOR CALL Transmission – Northern Pass Update • 1,090 MW of clean energy • $1.6 billion HVDC line, terminal and AC facilities • Approximately 192 miles of new transmission using HVDC technology with AC/DC converters in Quebec and NH • DOE draft Environmental Impact Statement issued 7/21/15 • Revised route announced 8/18/15. Underground section increased from 8 miles to 60 miles • Application filed with New Hampshire siting regulators on 10/19/15 NHSEC voted on 5/19/16 to issue a decision no later than 9/30/17 • Evidentiary hearings scheduled for 4/4/17 – 7/21/17 • • 100-MW PPA between Hydro-Quebec and PSNH filed with NHPUC on 6/28/16 • Expected to provide significant benefits to the region: • Billions of dollars in total energy and capacity value through reduced wholesale market prices • Annual reduction of approximately 3 million tons of CO 2 • Economic value through jobs and new tax base • Reduces growing dependence on natural gas generation 9
INVESTOR CALL Northern Pass Timeline September October 19, October 19, October 19, April – July April – July April – July Late 2017 Late 2017 Late 2017 Late 2019 Late 2019 Late 2019 Early 2018 Early 2018 Early 2018 30, 2017 2015 2015 2015 2017 2017 2017 Expected in- Expected in- Expected in- DOE permit DOE permit DOE permit NHSEC service date service date service date NHSEC hearings NHSEC hearings NHSEC hearings Construction Construction Construction Northern Pass Northern Pass Northern Pass expected expected expected approved scheduled scheduled scheduled to begin to begin to begin filed application filed application filed application deadline for with New with New with New issuing Hampshire Site Hampshire Site Hampshire Site decision Evaluation Evaluation Evaluation Committee Committee Committee (NHSEC) (NHSEC) (NHSEC) 10
INVESTOR CALL Key Elements of New Massachusetts Energy Legislation H 4568 – An Act to Promote Energy Diversity • Signed by Governor Baker on 8/8/16 • Authorizes long-term contracting for 9.45 TWH of annual clean energy generation, including large-scale hydropower • First solicitation commencing on or before 4/1/17 with full obligation completed by 12/31/22 • Authorizes long-term contracting for 1,600 MW of off-shore wind • First solicitation for at least 400 MW commencing on or before 6/30/17 with full obligation completed by 6/30/27 • Remuneration of up to 2.75 percent allowed for distribution companies to compensate for financial obligation of long-term contracts • All contracts require DPU approval 11
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