Eversource Energy Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Durgesh Chopra - Evercore ISI - Analyst : 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? I know there's one monopile that is being manufactured. There's also some storage -- some equipment you've stored in Canada. Maybe just a little bit more color on the tariff exposure to Revolution, please.

Question: Durgesh Chopra - Evercore ISI - Analyst : Got it, Joe. That's very thorough. It sounds like you don't see it as a major risk. Okay. Really quickly, shifting gears. Aquarion still on track for year-end. And then what kind of regulatory approval time line as you think about approvals through different states, are you -- should we be expecting, please?

Question: Durgesh Chopra - Evercore ISI - Analyst : Got it. Is there a specific time line for Connecticut to rule on this? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, ES.N - Q1 2025 Eversource Energy Earnings Call

Question: Carly Davenport - Goldman Sachs - Analyst : 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 2Cs, anything you can share and how you're thinking about the timing of when potentially we could get some certainty on that piece.

Question: Carly Davenport - Goldman Sachs - Analyst : Great. Appreciate that. And then maybe just shifting to the balance sheet and FFO to debt. I 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?

Question: Jeremy Tonet - J.P. Morgan - Analyst : Thank you for the color here today. Just want 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 would land in 2026, FFO to debt on both agency metrics there?

Question: Jeremy Tonet - J.P. Morgan - Analyst : Got it. And so I guess, do you expect FFO to debt will improve from the numbers outlined in 2025, the 100 bps cushion?

Question: Jeremy Tonet - J.P. Morgan - Analyst : Got it. And then just related to the rev win cost estimates. Just wondering, I guess, how the process works with +rsted there. You guys kind of worked together in formulating those estimates, those expectations of tariff impacts. And we would expect them to kind of say the same thing where the independent processes. Just wondering how that process works.

Question: Sophie Karp - KeyBanc Capital Markets Inc. - Analyst : I was wondering about the upcoming Millstone re-contracting, right? So can I on the lines of, would that present an opportunity to either maybe improve affordability for payers or at least make it clearer to repay in Connecticut, what they're paying for? Because I think right now, it's rolled into something called public benefit charge. And from a PR standpoint, would that benefit you in any way?

Question: Anthony Crowdell - Mizuho Securities - Analyst : Let's go Nicks, right? I think I heard that in the background.

Question: Anthony Crowdell - Mizuho Securities - Analyst : I don't think the Nicks 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 and it's not decided yet? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, ES.N - Q1 2025 Eversource Energy Earnings Call

Question: Anthony Crowdell - Mizuho Securities - Analyst : Great. And then if I move to Massachusetts, I think on Wednesday, there was a first share gas decision that maybe change 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.

Question: Anthony Crowdell - Mizuho Securities - Analyst : Great. And if I could just squeeze one more in. It follows off of Durgesh's question earlier. Have you guys stated what percentage of the Revolution project is complete, 50%, 40%, 30%. Have you guys quantified what percent of the project is completed?

Question: Travis Miller - Morningstar, Inc. - Analyst : Back sticking on the regulatory under-recovery. I was wondering if you could just give a little bit of 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 -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, ES.N - Q1 2025 Eversource Energy Earnings Call

Question: Travis Miller - Morningstar, Inc. - Analyst : Okay. And then the New Hampshire and then any kind of results in future Connecticut.

Question: Travis Miller - Morningstar, Inc. - Analyst : Yeah. Okay. Very good. And then just real quick, that $1.5 billion to $2 billion CapEx opportunity, anything different or changed in that bucket since last quarter or since February.

Question: Julien Dumoulin-Smith - Jefferies - Analyst : Look, I just wanted to come back to where Jeremy was a second to go. If we can 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. So it's a good -- I think that was a good proxy if we think 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%. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, ES.N - Q1 2025 Eversource Energy Earnings Call

Question: Julien Dumoulin-Smith - Jefferies - Analyst : The 45% is still relevant, though, right? Or is it better than that?

Question: Julien Dumoulin-Smith - Jefferies - Analyst : Got it. All right. Awesome. I appreciate it. And then quickly, if I can come back just a little bit nitty-gritty here, but we'll do a little cleanup. On 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, right? Like there's a lower tax rate, some other dynamics here? What should we be watching from the -- taking away from that? I know you mentioned some of it in the prepared remarks, but I'm curious if there's anything you'd flag like kind of what you -- what's the glean from the 1Q for full year corporate?

Question: Julien Dumoulin-Smith - Jefferies - Analyst : Got it. So is there a good full year tax rate you'd be running with given those benefits that you talk about in the back half of the year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, ES.N - Q1 2025 Eversource Energy Earnings Call

Question: Paul Patterson - Glenrock Associates LLC - Analyst : 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 if -- I mean, if you can, if you have sort of a rough estimate as to when we might see it actually impacting you, if you follow what I'm saying as opposed to just the --

Question: Paul Patterson - Glenrock Associates LLC - Analyst : Right. And then so the Yankee case, just to refresh my memory, with the PBR and these giant sort of dockets or whatever, when would those be -- would those -- do you think -- 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?

Question: Paul Patterson - Glenrock Associates LLC - Analyst : I 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? And I just -- 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 or just expanding low-income assistance and the avoidance of [rate shock]? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, ES.N - Q1 2025 Eversource Energy Earnings Call

Question: Andrew Weisel - Scotiabank - Analyst : First, to follow up on the FFO to debt, just to clarify, which threshold are you referring to when you talk about the 100 basis point cushion? Is it the 12% in S&P? So you're talking about 13% or higher?

Question: Andrew Weisel - Scotiabank - Analyst : Okay. So each of them on a corresponding calculation basis?

Question: Andrew Weisel - Scotiabank - Analyst : Okay. Great. 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. Is your expectation that, that would be fully passed on or just some portion of it?

Question: Andrew Weisel - Scotiabank - Analyst : I see. Thank you for clarifying that. So two different things. The O&M versus the capital different bucket, thank you for clarifying. Got it. And one last one, if I may. Can you just give us your latest thoughts on timing of a potential CL&P rate case? Would that be something for 2025?