Eversource Energy (D/B/A) · NYSE:ES
Eversource Energy (D/B/A) — Northeast Utilities — UBS Natural Gas and Utility Conference 2007
30 slides from Eversource Energy (D/B/A)'s conference presentation, Feb 28, 2007
Slide 1: UBS Natural Gas and Utility Conference
UBS Natural Gas and Utility Conference February 28, 2007 Energy / Growth / Leadership Exhibit 99
Slide 2: Safe Harbor Provisions
Safe Harbor Provisions This presentation contains statements concerning NU’s expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Ref
Slide 3: Agenda for Today
Agenda for Today 2006 accomplishments 2006 financial performance 2007 guidance Regulated investment strategy Rate cases Legislative update
Slide 4: 2006 Highlights
2006 Highlights Competitive businesses Sold competitive generation for $1.34 billion (including $320 million of assumed debt) Sold retail business Served out more than 50% of wholesale obligations Sold most services businesses Regulated businesses Completed Bethel-Norwalk Completed Northern Wood Pow
Slide 5: 2006 Regulated/Parent Results
$122.3 $41.1 $197.5 $59.8 $2.0 -$18.7 ($20.0) $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 2006 Regulated/Parent Results Distribution and Regulated Generation Transmission Parent/Other $115.8 $81.7* *$74 million from PLR and $7.7 million from competitive generation sale
Slide 6: Distribution/Regulated Generation Results
$60.0 $33.9 $17.3 $147.6 $27.0 $11.0 $11.9 $11.1 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 Distribution/Regulated Generation Results CL&P PSNH WMECO $65.9 *$74 million from PLR and $7.7 million from competitive generation sale Yankee Gas $81.7*
Slide 7: 2007 Guidance
2007 Guidance Primary Drivers 2006 Actual 2007 Guidance In 2007 Distribution/Regulated Generation $0.75* $0.80 - $0.90 PSNH, Yankee Gas rate cases, retail sales Transmission $0.39 $0.50 - $0.60 Increased investment Parent & Other Affiliates $0.02 $0.00 - $0.05 Cash from generation sale Total, Exclud
Slide 8: Improved Balance Sheet
$3,442 $2,032 $2,965 $2,798 Improved Balance Sheet $116 Total Debt Preferred Stock Common Equity $116 Total Debt Preferred Stock Common Equity 9/30/05 12/31/06
Slide 9: 2007-2011 Projected Capital Expenditures
2007-2011 Projected Capital Expenditures $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Distribution Capex Transmission Capex 2006 Actual $908* $779* $874* $1,183* $1,126* $880* *Excludes approximately $18 million per year at corporate service companies
Slide 10: Northeast Utilities System
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Slide 12: Projected Distribution and Regulated Generation Year-End Rate Base
$1,765 $1,964 $2,083 $2,220 $2,359 $2,466 $868 $974 $1,092 $1,153 $1,225 $1,293 $340 $367 $388 $406 $422 $436 $493 $646 $655 $656 $669 $679 Projected Distribution & Generation Rate Base CAGR of 7% Projected Distribution and Regulated Generation Year-End Rate Base $0 $500 $1,000 $1,500 $2,000 $2,500
Slide 13: Major Distribution/Regulated Generation Projects
Major Distribution/Regulated Generation Projects Yankee Gas’s 1.2 Bcf liquid natural gas production facility in Waterbury, CT $108 million cost About 90 percent complete Scheduled to be in service for 2007- 2008 heating season Will enhance reliability, help insulate customers from price volatility C
Slide 14: Northeast Utilities System
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Slide 16: The Next Five Years: Transmission Capital Expenditures
$1.1 Billion of major CT projects in 2007-2011 forecast period; $1.65 billion in total NEEWS family of projects estimated at $710 million during the 2007- 2011 forecast period The Next Five Years: Transmission Capital Expenditures $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00
Slide 17: Northeast Utilities System
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Slide 19: Projected Transmission Year-End Rate Base
$840 $2,117 $2,218 $2,461 $140 $175 $276 $282 $335 $325 $1,512 $1,173 Transmission Rate Base 2006-2011 CAGR of 23% * * * Projected Transmission Year-End Rate Base $75 $80 $132 $173 $208 $239 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 CL&P PSNH WMECO *Reflects FERC approved 50% CWIP for southw
Slide 20: Northeast Utilities System
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Slide 24: Rate Case Status: Transmission
Rate Case Status: Transmission NU’s FERC-approved transmission tariffs fully track all transmission costs We have forward-looking rates, adjusted every six months, with an annual true-up provision to ensure timely recovery of transmission investment FERC decision on New England transmission ROE issu
Slide 25: Rate Case Status – Distribution, Regulated Generation
Rate Case Status – Distribution, Regulated Generation DTE approved settlement effective 1/1/07 Settlement filed 2/26/07 to be effective 7/1/07 Pending To be filed around mid-year and effective early 2008 Rate case status 9.6% 6.4% 5.9% 7.5% Actual 2006 Regulatory ROE 8% - 12% 9.62% for Generation; 9
Slide 26: PSNH Distribution Rate Case Settlement
PSNH Distribution Rate Case Settlement Joint settlement with NHPUC staff, Consumer Advocate filed this week Proposed effective date of 7/1/07 Key elements 9.67% ROE, 7.55% overall cost of capital Transmission tracker to be reset annually $37.7 million estimated annualized increase ($26.45 million fo
Slide 27: Yankee Rate Case Highlights
Yankee Rate Case Highlights Net increase of $37 million (8.4%) Base rate increase of $68 million Lower pipeline, commodity charges due to LNG facility of $26.5 million Savings from expected property tax abatement of $4 million Expected effective date of July 1, 2007 Most recent increase January 1, 2
Slide 28: WMECO Rate Settlement
WMECO Rate Settlement Approved by DTE Rates effective January 1, 2007 $1 million distribution increase, plus pension, other trackers, higher energy costs resulted in 17.8% increase $3 million distribution increase to be effective January 1, 2008 Expect distribution ROE to remain in 9-10% range throu
Slide 29: Legislative Update
Legislative Update Connecticut 2005: Energy Independence Act Grants/loans for customer-side generation $200/kw one-time incentives to host utilities 15-year capacity-only conventional generation contracts with utilities $25/kw one-time incentives to utilities Bids submitted to the DPUC in December 2
Slide 30: NU's Transformation Producing Solid Results, Prospects
NU’s Transformation Producing Solid Results, Prospects Strategic plan elements announced one year ago are on or ahead of schedule Financial flexibility is significantly improved Financial performance consistent with projections Transmission business is growing rapidly to meet customer needs Distribu
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