The paragraph is an introduction to the Eversource Energy Q4 and Year-End 2024 earnings call. The operator informs participants about the format, including a listen-only mode and a subsequent Q&A session. Rima Hyder, Vice President of Investor Relations, welcomes participants and explains that the call will reference slides available on their website, noting that some statements may be forward-looking and subject to change. She introduces key speakers: Joe Nolan, Chairman, President, and CEO; John Moreira, Executive VP, CFO, and Treasurer; and Jay Booth, VP and Controller, before handing the call over to Joe Nolan to discuss the year-end earnings.

The paragraph highlights Eversource's successful fiscal year 2024, focusing on their achievements in providing quality utility services, improving financial metrics, and strengthening their balance sheet. Key accomplishments include a 5.3% increase in earnings per share, infrastructure enhancements, innovative customer service initiatives, and strategic financial moves like issuing $1 billion in equity, exiting the offshore wind business, and selling Aquarion Water at a favorable rate. The company maintained a strong commitment to customer satisfaction and operational reliability, with plans to continue these efforts into 2025.

The paragraph discusses significant developments for Eversource, highlighting the sale of Aquarion to the Aquarion Water Authority, which will help reduce debt and strengthen their core operations in electric and natural gas. It celebrates accolades from Newsweek and Time for their responsible and transparent business practices, including environmental and social commitments. The paragraph also details 2024 initiatives in Massachusetts, such as implementing AMI, the ESMP approval, and a geothermal pilot, along with acquiring the Mystic site to enhance energy resource interconnections, supporting New England's energy goals and economic development.

The paragraph discusses the Greater Cambridge Energy Project in Massachusetts, a $1.8 billion initiative led by Eversource that includes the construction of the first fully underground electrical substation in the U.S. as part of efforts toward a sustainable energy future. It highlights collaboration with local authorities and the positive impact on the community. In Southeastern Connecticut, Eversource is part of a federal funding-qualified clean energy initiative, the Huntsburg Offshore Wind Hub, aimed at enhancing New England's grid reliability. The paragraph emphasizes a focus on customer affordability by working with policymakers and leveraging technology to reduce energy costs. Finally, it notes Eversource's financial growth, citing a 5% increase in earnings and dividends into 2025.

The paragraph discusses Eversource's new five-year capital investment plan, which increases investments by nearly 10% with a focus on improving aging infrastructure and building new facilities. The company has achieved strong financial results, improved reliability, and exceeded safety metrics compared to industry averages. Notably, electric reliability in Connecticut has significantly improved over the years. The paragraph emphasizes the importance of continued infrastructure investment for maintaining reliability and mentions a stable regulatory environment as crucial for future plans. Looking ahead to 2025, Eversource remains committed to prioritizing customer focus and maintaining its momentum.

The paragraph outlines the company's focus on enhancing its financial performance and regulatory relationships to achieve long-term earnings growth in the 5% to 7% range. Efforts include engaging with regulators, especially in Connecticut, for improved collaboration and transparency. The company is committed to consistent earnings and dividend growth, investing in sustainable energy, and maintaining financial stability. Strategic initiatives, like the ESMP, geothermal pilot, and the underground substation, are highlighted as part of their contributions to the energy transition and customer value. The paragraph concludes by expressing gratitude to employees and union partners, emphasizing a commitment to innovation and customer service for over four million customers.

In the call, John Moreira discusses several financial aspects, including the pending sale of Aquarion with an enterprise value of $2.4 billion, involving $1.6 billion in cash and $800 million in net debt. This valuation allows for a reduction in parent company debt. The sale is expected to close in late 2025. Additionally, John reviews the 2024 financial results, with a GAAP earnings of $2.27 per share compared to a loss of $1.26 per share in 2023. The 2024 results include a net after-tax loss of $2.30 per share due to sales of offshore wind investments and the Aquarion sale. In 2023, the losses were primarily due to offshore wind investments, amounting to $5.60 per share.

In 2024, Eversource reported non-GAAP earnings of $4.57 per share, a 5.3% increase from $4.34 in 2023, aligning with its revised earnings guidance of $4.52 to $4.60 per share. The Electric Transmission segment saw earnings rise to $2.03 per share due to continued infrastructure investments for reliability. Electric Distribution earnings increased slightly to $1.77 per share, driven by base rate increases in Massachusetts and New Hampshire, despite facing higher expenses. The Natural Gas Distribution segment's earnings grew to $0.81 per share, bolstered by rate hikes and infrastructure investments, though offset by higher costs. The Water Distribution segment, excluding a pending sale loss, earned $0.12 per share due to reduced depreciation expense. Eversource parent and other company's non-GAAP losses were $0.16 per share versus a gain of $0.03 in 2023, while GAAP losses improved significantly from $5.57 per share in 2023 to $1.63 per share in 2024.

The paragraph discusses Eversource's regulatory achievements and financial adjustments for 2024, including approved rate increases in Massachusetts and New Hampshire. In Massachusetts, Eversource received approval for revenue increases for EGMA and NSTAR Gas and Electric, effective in late 2024 and early 2025. In New Hampshire, they are pursuing a significant rate increase, with an interim rate already approved, and a final decision expected by July 2025. These changes follow previous settlement agreements and aim to address higher interest expenses and storm cost recoveries.

The paragraph discusses a financial update on utility investments and rate reviews. Yankee Gas in Connecticut is undergoing a rate review to address a $209 million revenue deficiency due to investments and cost increases since 2018, with final decisions anticipated in October following hearings in May. The company’s new five-year capital plan from 2025 to 2029 shows a $1.9 billion increase in utility infrastructure investments, primarily for electric transmission and distribution in Massachusetts. The plan, excluding Aquarion-related investments, anticipates a total investment of approximately $24.2 billion in regulated electric and natural gas businesses, marking a 10% increase from the previous plan. These investments aim to ensure safe, reliable service and support clean energy objectives.

The paragraph outlines a five-year plan for infrastructure investments in the energy sector, particularly focusing on transmission and electric distribution. Nearly $7 billion is earmarked for transmission infrastructure updates to replace aging systems, enhance resiliency during extreme weather, and integrate diverse energy resources, facilitated by recent legislative and regulatory reforms in Massachusetts. The plan also includes significant investments in electric distribution infrastructure, totaling over $10 billion, with an emphasis on system resiliency and reliability. This includes $850 million for an AMI program in Massachusetts to improve real-time communications and customer participation. Additionally, approximately $6 billion is allocated for natural gas infrastructure investments focused on reliability and safety.

The paragraph outlines Eversource's capital investment plan, focusing on replacing steel and cast iron pipes in Massachusetts and Connecticut, technology upgrades including AI and cybersecurity, and opportunities for further investment in areas like solar generation and EV usage. The plan expects to grow the rate base by 8% from 2023 to 2029 and predicts 2025 earnings per share between $4.67 and $4.82. Positive financial drivers include investments in transmission and distribution, while potential offsets include higher depreciation, property taxes, interest costs, share dilution, and increased tax rates. Eversource emphasizes a strong focus on balance sheet improvement.

The paragraph discusses the company's financial strategy and projections for the coming years. It highlights the successful execution of cash flow enhancement commitments for 2024 and 2025, leading to an expected 50% improvement in cash flows from operations by 2025. The company anticipates equity needs of approximately $1.2 billion from 2025 through 2029, factoring in the sale of Aquarion and minimal cash tax payments. The majority of equity issuance is planned for the latter part of the forecast period, supporting a strong financial position with a FFO to debt ratio above Moody's downgrade threshold. Additionally, the company plans to avoid new holding company debt in 2025 and use internal cash and proceeds from the Aquarion sale to pay off $600 million in debt maturities. Earnings per share growth is projected at 5% to 7% based on 2024 figures, though 2025 results may be subdued due to various challenges.

The paragraph is from a conference call where Joe Nolan addresses the company's strategic plan focused on growing EPS through investments in infrastructure and cost management. Before the Q&A session, Joe expresses pride in the team's performance and reiterates the company's strategic goals of operational efficiency and value delivery. Rima Hyder initiates the Q&A, with Shahriar Pourreza from Guggenheim asking about legislative developments in Connecticut, particularly concerning PURA and its potential expansion. Joe is asked for his views on the number of commissioners and the future direction of regulatory reforms.

The paragraph discusses the ongoing nomination process for PURA commissioners in Connecticut, where the governor has nominated Marissa Gillette and David Arconti, with no date set for their hearing yet. The speaker emphasizes neutrality on the number of commissioners but desires a fair process. Shahriar Pourreza mentions concerns about credit questions affecting shares and inquires about the FFO to debt target for 2025-2029, which may differ from the previous 14%-15% goal. John Moreira responds that the target remains unchanged and highlights anticipated cash flow enhancements, including $1.6 billion from Aquarion, promising significant improvement.

In the paragraph, officials discuss financial strategies, noting a nearly 50% increase in cash flows primarily due to regulatory deferrals with minimal storm costs expected in 2025. They acknowledge needing $1.2 billion in equity, aiming to improve their financial outlook as Moody's has them on a negative watch. Joe Nolan and Carly Davenport of Goldman Sachs talk about balance sheet strategies, with Davenport asking about future equity financing methods. John Moreira expresses satisfaction with the current ATM program, allowing them control over market timing for equity needs, and indicates they will continue using it for future requirements.

The paragraph involves a discussion between John Moreira and Steve Fleishman about financial targets and investment timelines. Moreira mentions the expectation for incremental investments of $1.5 to $2 billion, primarily driven by the Connecticut AMI project, pending regulatory approval from PURA. Moreira indicates potential guidance later in the year and more transparency within the next 12 to 18 months. When asked about a specific target for the FFO (Funds from Operations) to debt ratio, Moreira does not provide a precise target but mentions efforts to change Moody's negative outlook to stable, maintaining a solid position above the 13% downgrade threshold with a $1.2 billion equity plan over five years. Fleishman asks for an estimate of where the ratio will be by the end of 2024, and Moreira responds it will be in the low double digits, around 10.5 to 11%.

In the paragraph, representatives from the company discuss project timelines and financial reporting. Joe Nolan clarifies that the timeline for their Revolution project remains unchanged, with progress being made and the twentieth turbine being loaded. John Moreira mentions they are filing their 10-K report soon without anticipating any write-offs. There's also a mention of a lawsuit filed in Connecticut for transparency from PURA, with no set timeline for a court decision. Bill Apicelli from UBS asks about cash flow and tax payments, to which John Moreira responds that they have been utilizing tax credits effectively through 2028.

The paragraph discusses the company's tax and financial strategies, highlighting minimal tax obligations due to available R&D and ITC tax credits, which are expected to sustain them until at least 2028. The projected annual tax obligation is around $150-$170 million, with $500 million in ITC credits available. Furthermore, the company aims for a 5% to 7% growth rate by recovering $2 billion in deferred storm costs and executing strategic investments, such as the Cambridge underground substation project, as part of their expansion efforts to meet energy objectives, particularly in Massachusetts. Additionally, they are utilizing constructive rate mechanisms for investment recovery, with expectations for substantial progress by 2026-2028.

The paragraph discusses the company's strategy to manage its debt by using proceeds from the Aquarion sale. The company is focused on offloading $600 million of holding company debt, with $300 million already addressed and the remaining amount due in August. Joe Nolan and John Moreira address an inquiry about the expected growth rate, with concerns about being below the target due to equity issuance. Moreira confirms that the equity issuance impacted the 2025 earnings, but reassures that the $1.6 billion cash influx from the Aquarion sale will significantly aid their financial strategy and growth plans.

The paragraph features a discussion about future financial outlooks and strategic adjustments in response to changing regulations. John Moreira and Durgesh Chopra discuss expectations and assumptions regarding interest rates and financial strategies for 2025 and beyond. The conversation then shifts to Ross Fowler questioning Joe Nolan about potential impacts of a Massachusetts proposal to end most gas line extensions. Nolan acknowledges the recent proposal, indicating the company is analyzing it and will provide comments. They are considering shifts in their capital plan towards electrification and assessing potential customer bill impacts if the proposal leads to more electric heating services instead of gas.

In this discussion, Ross Fowler inquires about legislative efforts in Connecticut concerning statutory changes related to the Aquarion sale and how these might pose risks. Joe Nolan responds by noting that while many bills are always filed, they aren't concerned as the legislative body had recently enacted laws allowing the sale and the governor signed it. He assures that they will actively participate in proceedings but are confident about the situation. Ross then shifts the conversation to John Moreira, seeking clarification on financial projections beyond 2025, specifically regarding equity, deferred storm cost recovery, and distribution investment. John confirms Ross's assumptions related to financial forecasts and rate increases, concluding the conversation on a positive note.

The paragraph is a portion of a financial earnings call involving Jeremy Tonet from JPMorgan and company executives Joe Nolan and John Moreira. Jeremy Tonet asks about various aspects of the company's 2025 earnings per share (EPS), including potential headwinds and tailwinds and the impact of Aquarion earnings. John Moreira clarifies that Aquarion earnings are included up to the closing date of its sale, and they are not moving to discontinued operations. He explains that the sale of Aquarion is expected to be beneficial, providing $1.6 billion to offset interest costs, which should compensate for the loss of Aquarion earnings by 2026. The conversation then moves on to another analyst, Andrew Weisel from Scotiabank, who begins to ask about the potential opportunities related to Mystic.

The paragraph is a discussion among several individuals about a recent property acquisition and its potential as a sizable investment opportunity. Joe Nolan explains that while the property offers strategic advantages for Massachusetts and New England, any major developments are not currently included in their CapEx plan. They need more time to evaluate opportunities, and upgrades to an adjacent substation may also be required. Despite the early stage, Nolan expresses confidence in making substantial investments, citing favorable regulatory conditions. Andrew Weisel inquires about future financing, specifically regarding dividend reinvestment and employee compensation programs, to which John Moreira responds that they should expect a slight increase in shares or dollars in 2025 and beyond.

The paragraph is from a conference call involving Eversource Energy, where Angie Storozynski asks about potential regulatory issues related to the sale of Aquarion, specifically approval from PURA and customer benefits. Joe Nolan expresses confidence in the regulatory process, stating that taxes currently included in rates for cities and towns will continue to be paid, ensuring community benefits. He concludes by thanking participants and expressing optimism about Eversource Energy's progress and future plans.

The paragraph emphasizes the organization's dedication to providing value to customers, investors, and communities, while also focusing on innovation and sustainability.

This summary was generated with AI and may contain some inaccuracies.