The paragraph describes the opening of the Eversource Energy First Quarter 2025 Earnings Call. The operator welcomes participants and introduces the first speaker, Rima Hyder, Vice President of Investor Relations. Rima notes that some statements during the call may be forward-looking and subject to risks and uncertainties, which could cause actual results to differ from forecasts. She also mentions that supporting Slides are available online, explaining non-GAAP measures and their reconciliation to GAAP results. The speakers for the call include Joe Nolan, the Chairman, President, and CEO; John Moreira, the CFO and Treasurer; and Jay Buth, Vice President and Controller. Joe Nolan then begins by thanking everyone for joining and indicating that he will share the company's first-quarter results and progress on key initiatives.

In the article's second paragraph, the company reports strong growth in its transmission and distribution sectors and reaffirms its 2025 EPS guidance, with expected long-term EPS growth of 5% to 7% through 2029. Being a regulated utility, the company emphasizes stability and predictability, forecasting an 8% rate-based growth over five years. It highlights strategic shifts towards increased distribution spending in Massachusetts to meet electrification goals while reducing investment in Connecticut. The company is partnering with Massachusetts on its decarbonization strategy and is exploring further growth opportunities, such as ISO New England's proposals to support energy transition, and the acquisition of the Mystic Site in Everett for energy resource interconnection.

The paragraph discusses Eversource's commitment to supporting regional energy goals, economic development, and job creation through advanced transmission and distribution opportunities. The company focuses on customer innovation, affordability, and invests in technologies that enhance their network's reliability. Initiatives to improve customer experience and reduce costs are underway, such as the AMI project in Massachusetts, which is progressing well. Eversource emphasizes customer empowerment through better technology, allowing for informed energy usage decisions. Enhancements in their digital customer interface, based on customer feedback, include a redesigned account overview page for easier bill comparison and usage understanding. Eversource aims to simplify customer interaction and educate them on energy topics.

The company is making regulatory progress in Massachusetts, Connecticut, and New Hampshire. In Massachusetts, they responded to customer and policymaker concerns about high gas bills by implementing a plan to reduce winter rates by 10% from March 1st and are working on long-term solutions for affordability and transparency. The company is also engaging in customer education on bill management through energy efficiency programs. In Connecticut, they look forward to collaborating with newly confirmed PURA Commissioners on service reliability. In New Hampshire, they plan to work with the new administration to achieve energy goals. Additionally, they are strengthening their balance sheet by divesting aquarium water, with plans to finalize the sale by year-end, and have sought regulatory approval in all three states to improve their financial metrics.

The paragraph provides an update on the offshore wind and Revolution Wind project, highlighting the progress of the onshore substation construction overseen by Eversource. Despite the ongoing construction, there has been no need to alter the contingent liability recorded in the third quarter of 2024. The company's first-quarter results reflect its commitment to customer innovation, affordability, financial strength, and sustainability, aiming towards 2025 priorities. These efforts demonstrate successful goal execution and a focus on growth as a regulated utility. The paragraph concludes with a transition to John Moreira, who will discuss financial results, including first-quarter earnings of $1.50 per share, comparable to $1.49 per share the previous year, noting that higher utility earnings were balanced by decreased parent and other earnings.

The paragraph discusses Eversource's financial performance and regulatory activities. Higher earnings in the electric transmission and distribution segments were driven by increased revenues from system investments, despite being partially offset by share dilution and higher expenses. Increased natural gas earnings were attributed to infrastructure investments and rate increases but were offset by higher operational costs and taxes. Water earnings remained steady. Parent company losses rose due to higher interest expenses and the absence of capitalized interest from a prior wind investment. Overall, first-quarter earnings met expectations. The paragraph also notes a pending rate proceeding in New Hampshire, with hearings scheduled soon.

The paragraph outlines a series of rate adjustments and financial plans for utility services across different states. The company has proposed a four-year rate-making plan, with an annual capital support mechanism, expecting a final decision by July. In Massachusetts, new NSTAR gas rates will be effective on November 1, 2025, alongside the second phase of the 2024 rate-based roll-in for EGMA. In Connecticut, CMP customers will see a 6% rate reduction from May 1, following the annual rate adjustment. The ongoing Yankee gas rate case aims to recover a $209 million revenue deficiency, with hearings in June and a final decision by October for rates effective November 1. The company's five-year capital plan amounts to $24.2 billion, a 10% increase from the previous plan, with $7 billion allocated for transmission infrastructure, driven by recent legislative and regulatory changes in Massachusetts.

The paragraph discusses the ongoing Cambridge Energy project, which includes a 35,000 square foot underground substation with a capital cost of $1.8 billion, largely recoverable through transmission tariffs. It outlines over $10 billion in planned utility infrastructure investments, with a significant portion allocated to projects in Massachusetts, including an $850 million AMI program. Additional investment opportunities of $1.5 to $2 billion are anticipated, and potential growth opportunities exist beyond the forecast period. The paragraph also addresses potential tariff impacts, noting minimal expected effects on operation and maintenance costs but possibly manageable increases in capital costs. The company's diversified supply chain strategy has reduced exposure to China's high tariff impact.

The company anticipates a 3% to 6% cost increase in capital projects due to potential tariffs impacting inflation. In Massachusetts, performance-based rates with inflation adjustments could mitigate some of the effects. Similar rate mechanisms have been proposed in PSNH and ANQ filings. The company is taking steps to enhance cash flow and strengthen its balance sheet to finance investments, aiming to issue $1.2 billion in equity mostly towards the end of a five-year period. They expect their FFO to debt ratio to improve significantly by 2025, staying well above downgrade thresholds. They reaffirm 2025 earnings guidance of $4.67 to $4.82 per share, with a projected annual EPS growth rate of 5% to 7% based on 2024. This growth is supported by investments in customer-focused infrastructure and favorable rate mechanisms.

The paragraph is part of a Q&A session during an investor call, where Durgesh Chopra from Evercore ISI inquires about the tariff exposure related to an offshore project under construction. Joe Nolan responds that all necessary equipment has been procured, with only one monopile currently under construction expected in the fall. A substation stored in Canada has already been moved to the United States, avoiding anticipated challenges. Nolan expresses confidence in the project's progress, highlighting the mature state of the construction and acknowledging the team's impressive work on the substation in Rhode Island.

In the paragraph, Joe Nolan discusses the company's efforts to mitigate risks related to tariffs and supply chain challenges, particularly highlighting their robust warehouse operations as a buffer. He expresses confidence in handling any potential issues, with John overseeing warehousing and procurement. Durgesh Chopra then shifts the discussion to the Aquarion transaction, questioning its timeline and regulatory approval. Joe Nolan confirms the filing has been made, expects the transaction to close in 2025, and foresees no major issues as the buyer is experienced in the region. He specifies that Connecticut's ruling is expected within a five-month timeframe, by October. The next question in the conversation is from Shar Pourreza of Guggenheim Partners.

The paragraph involves a conversation among James (standing in for Shar), Joe Nolan, John Moreira, and various analysts discussing financial and regulatory matters related to Connecticut. John Moreira indicates that while securitization wasn’t part of their original financial strategy, they would reassess their equity needs if it occurs. Joe Nolan discusses the ongoing AMI process and the need for clarity on dollar recovery from expenses. Carly Davenport from Goldman Sachs asks about the composition of PURA and the timing of filling its remaining seats, to which Joe Nolan acknowledges the importance of the question.

The paragraph discusses a company's ongoing efforts to improve its financial position and achieve a stable regulatory climate. The company expresses uncertainty about whether changes will come soon but hopes for transparent regulation. Carly Davenport asks about the balance sheet and conversations with Moody’s regarding shifting from a negative watch. John Marreira responds, emphasizing that executing their current plan, which includes recovering previously under-recovered regulatory costs, should improve their financial metrics, notably the FFO to debt ratio. He mentions that executing this plan has already shown significant improvements in their operating cash flows. The conversation then shifts to a new question from Jeremy Tonet of JPMorgan Securities.

In the paragraph, Joe Nolan discusses the company's financial strategy leading up to 2026, highlighting efforts to reduce debt by $2.4 billion related to acquisitions and sales. He expresses confidence in aligning future costs with revenues to prevent significant under-recoveries. John Marreira mentions the enhancement of their FFO to debt ratio, contingent on capital forecasting, with potential clarity on $1.5 to $2 billion within 6 to 12 months. He also notes the collaborative process in forming cost estimates and tariffs with GIP, ensuring alignment and clarity in forecasts.

The paragraph is a part of a discussion during a conference call featuring Joe Nolan and John Moreira, where analysts like Sophie Karp and Anthony Crowdell ask questions regarding the Millstone recontracting rate and issues in Connecticut. Sophie Karp asks if the recontracting could improve affordability and clarity for ratepayers, possibly through clearer communication of costs like the public benefit charge. Joe Nolan responds that it is too early to discuss the Millstone contract, which is up in 2029, and mentions the need to collaborate with the current administration. Anthony Crowdell inquires about the securitization, public benefit, and storm cost recovery in Connecticut and whether they're combined in the same legislation. Joe Nolan confirms they are being discussed under certain bills, SB 15 and 16.

The paragraph is a segment from a discussion involving Anthony Crowdell and Joe Nolan. They discuss the implications of the recent Berkshire Gas decision in Massachusetts on the Gas System Enhancement Program (GSEP), which lowered the investment cap from 3% to 2.5%. Joe Nolan expresses that this change is manageable and not a major concern, as the primary focus remains on providing safe and reliable gas services. He notes that the directive encourages exploring non-pipe alternatives. Additionally, Anthony Crowdell inquires about the completion status of the Revolution project, to which Joe Nolan responds that construction is progressing well but hasn't provided specific completion percentages.

In the paragraph, Travis Miller inquires about the status of regulatory under-recoveries and expected recoveries in the coming quarters, mentioning New Hampshire and Connecticut as examples. Joe Nolan responds by highlighting the importance of the RAM docket, which involves a $900 million rate increase effective from July to April 30, designed to recover costs like bad debt and public benefits charges associated with Millstone and Seabrook. A subsequent decision in May reduced recovery by $142 million. He notes that in Massachusetts and New Hampshire, rate adjustments occur promptly with no significant balances. Travis asks about capital expenditure opportunities, with John Marreira mentioning ongoing assessments, highlighting AMI in Connecticut.

In this exchange, Julien Dumoulin Smith from Jefferies asks for clarification on the FFO (Funds From Operations) to DAD (Debt and Depreciation) numbers, focusing on how improvements in operating cash flow contribute to the calculations. Joe Nolan responds, explaining that enhancements in cash flows are more significant than reductions in debt for the metrics in question. He highlights that the company anticipates sustaining over 100 basis points of improvement driven by increased cash flows from operations. He also mentions that there has been a notable $750 million quarter-over-quarter increase in cash flows from operations, which will be detailed in their upcoming 10-Q filing. Julien seeks further clarification, and Joe suggests that the 45% improvement figure is still relevant but likely slightly better.

The paragraph is a discussion between Joe Nolan and Julien Dumoulin-Smith regarding financial projections and impacts on the company's Q1 2025 performance, especially in light of changes from the previous year. The $0.16 drag in Q1 is attributed to factors like the cessation of capitalizing interest from offshore wind projects after their sale, and the full impact of a $1.4 billion debt issued in the previous year. Nolan notes that these impacts will lessen over time, leaving tax benefits as the primary financial factor. He expects the tax rate for 2025 to be between 22.5% and 23.5%, an increase from the previous year's rate in the upper teens.

In this paragraph, Paul Patterson is inquiring about the expected timeline for the practical impact of a Performance-Based Regulation (PBR) on rates. John Moreira responds by explaining that the first step is filing a rate case and mentions that there's an ongoing PBR proposal in the Yankee case. Moreira anticipates a draft decision by midyear, around July or August, with a final decision in October. However, the exact impact on the Yankee case is uncertain since the timing is tight. Moreira notes that it remains to be seen how the events will unfold.

The paragraph discusses Massachusetts Governor Healey's administration's focus on expanding low-income assistance and managing rate changes to avoid "rate shock." Joe Nolan praises the administration's collaborative and thoughtful approach, citing a 10% reduction in costs achieved through cooperation between utilities, regulators, and the administration. While all options, including an income determination energy burden approach, are being considered, it's still early in the process. Following this, an operator facilitates a new question from Andrew Weisel of Scotiabank regarding financial metrics, specifically the FFO to debt ratio thresholds at S&P and Moody's, which John Moreira confirms are being monitored to maintain a 100 basis point cushion.

In the paragraph, Andrew Weisel inquires about the impact of tariffs and the Massachusetts performance-based rate making (PBR) mechanism on inflation and whether costs would be fully passed on. Joe Nolan clarifies that the 3% to 6% impact estimate pertains to capital projects, with minimal effect expected on operations and maintenance (O&M). The PBR mechanism in Massachusetts adjusts for inflation using the JDP PI mechanism, with a cap at 5%. Last year, a 3.25% inflation adjustment was made for NSTAR Electric. If inflation reaches 6%, a maximum of 5% would affect rates. Weisel also asks about the timing of a potential CLMP rate case, to which Nolan responds that the earliest filing would likely be in the fall, though timing is still being assessed. The operator notes no further questions.

In the closing remarks of the conference, Joe Nolan thanks the participants for joining and mentions they have eight minutes before the Ameren call with Mody Lyons. John Moreira also thanks everyone, and the operator confirms the conclusion of the program, allowing participants to disconnect.

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