Q1 2024 Eversource Energy Earnings Call

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Elisa: Good morning, and thank you for attending the ever source Energy Q1, 2024 earnings call. My name is Elisa and I will be your moderator.

Alyssa: Good morning, and thank you for attending the Eversource Energy Q1 2024 earnings call. My name is Alyssa, and I will be your moderator.

Alyssa: All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the call to our host, Matt Fallon, Eversource Energy's Director of Investor Relations. Matt, please go ahead.

Speaker Change: All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

Speaker Change: I would now like to pass the call to our host Matt Fallon ever source energies director for Investor Relations Ma'am. Please go ahead.

Matt Fallon: Good morning, and thank you for joining us. I am Matt Fallon, Eversource Energy's Director of Investor Relations. During this call, we'll be referencing slides that we posted yesterday on our website. As you can see on slide one, some of the statements made during this investor call may be forward-looking. These statements are based on management's current expectations and are subject to risk and uncertainty, which may cause actual results to differ materially from forecasts and projections. We undertake no obligation to update or revise any of these statements.

Speaker Change: Good morning, and thank you for joining us I am Matt Fallon <unk> Energy's director for Investor Relations. During this call, we'll be referencing slides that we posted yesterday on our website.

Matt Fallon: As you can see on slide one some of the statements made during this investor call maybe forward looking.

Matt Fallon: These statements are based on management's current expectations and are subject to risk and uncertainty, which may cause the actual results to differ materially from forecasts and projections.

Matt Fallon: We undertake no obligation to update or revise any of these statements.

Matt Fallon: Additional information about the various factors that may cause actual results to differ and our explanation of non-GAAP measures and how they reconciled to GAAP results is contained within our news release the slides, we posted last night and in our most recent 10-K.

Matt Fallon: Additional information about the various factors that may cause actual results to differ and our explanation of non-GAAP measures and how they reconcile to GAP results is contained in our news release, the slides we posted last night, and in our most recent 10K. Speaking today will be Joe Nolan, our Chairman, President, and Chief Executive Officer, and John Moreira, our Executive Vice President, CFO, and Treasurer. Also joining us today is Jay Booth, our Vice President and Controller. I will now turn the call over to Joe.

Matt Fallon: Speaking today will be Joe Nolan, our chairman, President and Chief Executive Officer, and John Moreira, Our executive Vice President CFO and Treasurer also joining us today is Jay Buth, our vice President and controller.

Joseph R. Nolan: I will now turn the call over to Joe.

Joseph R. Nolan: Thank you, Matt, and thank you all for joining us on the call this morning. Let me begin with an update on the sale of our offshore wind business. I am pleased to report that we are on track to close the sale of the three projects over the coming months. We are progressing well on the approvals necessary to close these transactions, as shown on slide three. We have filed all regulatory approvals with the New York Public Service Commission and FERC for the sale of Southwark Wind and Revolution Wind to Global Infrastructure Part, and we recently executed the purchase and sale agreement for Sunrise Wind with Orsted. We have also filed applications for regulatory approval with the New York Public Service Commission and FERC. We anticipate these approvals will take about 90 days.

Joseph R. Nolan: Thank you, Matt and thank you all for joining us on the call. This morning, let me begin with an update on the sale of our offshore wind business I am pleased to report that we are on track to close the sale of the three projects over the coming months.

Joseph R. Nolan: We are progressing well on the approvals necessary to close these transactions as shown on slide three.

Joseph R. Nolan: We have filed all regulatory approvals with the New York Public Service Commission and FERC for the sale of self walk wind and Revolution wind to global infrastructure partners and we recently executed the purchase and sale agreement for Sunrise wind with worst it.

Joseph R. Nolan: For Sunrise wind.

Joseph R. Nolan: We have also filed applications for regulatory approvals, the New York Public Service Commission and FERC. We anticipate these approvals will take about 90 days.

Joseph R. Nolan: On the construction front, I can't tell you how excited and proud I was of my Eversource colleagues as I stood alongside New York Governor Hochul to flip the switch to energize South Park Wind in March. We will certainly capitalize on Lessons Learned from South Park, a first-of-its-kind project here in the United States. The same construction processes will be used for the Revolution Wind Project, where onshore and offshore construction is underway. Now that our offshore wind risk is largely behind us, we are very excited about the future of Eversource, delivering safe and reliable electric, natural gas, and water service to our 4.4 million customers.

Joseph R. Nolan: On the construction front.

Joseph R. Nolan: Can't tell you how excited and proud I was of my <unk> colleagues as I stood alongside New York Governor Holdco to flip the switch to energize self walk when in March.

Joseph R. Nolan: We will certainly capitalize on lessons learned from South Park.

Joseph R. Nolan: First of its kind project here in the United States. The same construction processes will be used for the Revolution wind project were onshore and offshore construction is underway.

Joseph R. Nolan: Now that our offshore wind risk is largely behind US. We are very excited about the future of ever source, delivering safe and reliable electric natural gas and water service to our $4 4 million customers.

Joseph R. Nolan: Turning to slide four, Eversource is moving forward as a pure play regulated pipes and wires utility business, doing what we do best, delivering clean energy safely and reliably to our customers every day. When we are doing what we do best, our customers are the direct beneficiaries. A good example of this came in early April when a late winter storm caused significant damage across the Northwest.

Joseph R. Nolan: Turning to slide four ever source is moving forward as a pure play regulated pipes and wires utility business doing what we do best delivering clean energy safely and reliably to our customers every day.

Joseph R. Nolan: When we are doing what we do best our customers are the direct beneficiaries are good example of this came in early April when a late winter storms caused significant damage across the northeast.

Joseph R. Nolan: Through our investments in technology, including smart switches and other reliability innovations, we were able to restore 85,000 customers in New Hampshire within five minutes, greatly reducing the impact of the storm on many customers in that area. This amazing response received numerous accolades from customers and personal acknowledgment from Governor Sununu. We take tremendous pride in our emergency response organization and our ability to stand up our emergency response teams for timely restoration. Eversource teams from all three states responded to the storm damage in New Hampshire, minimizing customer outage time.

Joseph R. Nolan: Through our investments in technology, including smart switches and other reliability innovations, we were able to restore 85000 customers in new Hampshire within five minutes.

Joseph R. Nolan: Greatly reducing the impact of the storm to many customers in that area.

Joseph R. Nolan: This amazing response received numerous accolades from customers and personal acknowledgment from Governor Sununu.

Joseph R. Nolan: We take tremendous pride in our emergency response organization.

Joseph R. Nolan: And our ability to stand up our emergency response teams for timely restoration.

Joseph R. Nolan: <unk> teams from all three states responded to the storm damage in New Hampshire, minimizing customer outage time.

Joseph R. Nolan: Our resiliency investments help to minimize customer outage impacts. Our preparation enables us to hit the ground running in front of potential severe weather events, and our emergency response plan supports scalable and efficient restoration for those customers who are impacted. And we work tirelessly to communicate that timely recovery of storm costs is critical to support these efforts. Turning to the Clean Energy Future, as you can see on slide 5. The states we serve have very aggressive greenhouse gas reduction goals.

Joseph R. Nolan: Our resiliency investments helped to minimize customer outage impacts our preparation enables us to hit the ground running in front of potential severe weather events in our emergency response plan supports scalable and efficient restoration for those customers who are impacted.

Joseph R. Nolan: And we work tirelessly to communicate the timely recovery of storm costs is critical to support these efforts.

Joseph R. Nolan: Turning to the clean energy future as you can see on slide five the states. We serve have very aggressive greenhouse gas reduction goals both.

Joseph R. Nolan: Both the transportation sector and residential and commercial heating sectors are the largest contributors to greenhouse gas emissions. Although the region has acted by reducing carbon emissions from power generation, we have a long way to go on heating and transportation to achieve the state's targets by 2050. To meet these targets, we project that average household electric demand will double in the summer and more than triple in the winter. That's why it's critical that we all work collaboratively and get started today on making achievement of these targets a reality.

Joseph R. Nolan: Both the transportation sector and residential and commercial heating sectors are the largest contributors to greenhouse gas emissions. Although the region has acted by reducing carbon emissions from power generation, we have a long way to go on heating and transportation to achieve this.

Joseph R. Nolan: <unk> targets by 2050.

Joseph R. Nolan: To meet these targets, we projected average household electric demand will double in the summer and more than tripling. The winter. That's why it's critical that we all work collaboratively and get started today on making achievement of these targets a reality.

Joseph R. Nolan: Moving to slide six, achievement of Massachusetts decarbonization goals is being addressed in part through the electric sector modernization, or ESMP. This is the most comprehensive clean energy plan in the nation, with planning processes and requirements that will provide the path for the State to achieve its clean energy objectives. The Eversource ESMP is a product of our system planning process, incorporating the state's assumptions for projected demand growth from electric vehicles and electric heating.

Joseph R. Nolan: Moving to slide six achievement of Massachusetts, Decarbonization goals are being addressed in part through the electric sector modernization plans. Our SMP. This is the most comprehensive clean energy plan in the nation with planning processes and requirements that will provide the pathway for the <unk>.

Joseph R. Nolan: State to achieve its clean energy objectives.

Joseph R. Nolan: The ever source Es MP is a product of our system planning process, incorporating the state's assumptions for projected demand growth from electric vehicles and electric heating too.

Joseph R. Nolan: To develop our ESMP, we have analyzed expected electric growth down to the circuit level to identify grid investments needed over the next five years and beyond. These infrastructure investments will convert our distribution grid into the platform for the clean energy transition, will increase electrification capacity by 180%, and will allow for the adoption of 2.5 million electric vehicles and 1 million heat pumps.

Joseph R. Nolan: To develop our <unk>, we have analyzed expected electric growth down to the circuit level to identify grid investments needed over the next five years and beyond.

Joseph R. Nolan: These infrastructure investments will convert our distribution grid into the platform for the clean energy transition.

Joseph R. Nolan: We will increase electrification capacity by 180% and will allow for the adoption of two 5 million electric vehicles 1 million heat pumps and 5.8.

Joseph R. Nolan: 5.8 gigawatts of solar generation, thereby making Massachusetts a leader in delivering clean energy to its homes and businesses. In New Hampshire, we are focused on a number of regulatory initiatives, and evaluating ways to advance clean energy initiatives such as large-scale utility-owned solar development. For example, New Hampshire state legislators are working on a bill that would institute structural reforms to New Hampshire's Energy Facility Site Evaluation Committee, or the SEC, reducing the size of the SEC from nine members to five, and eliminating unnecessary processes to improve efficiency and to lead to more consistent outcomes.

Joseph R. Nolan: Eight gigawatts of solar generation.

Joseph R. Nolan: Thereby making Massachusetts, a leader in delivering clean energy towards homes and businesses.

Joseph R. Nolan: In New Hampshire, we are focused on a number of regulatory initiatives and are evaluating ways to advance clean energy initiatives, such as large scale utility owned solar development.

Joseph R. Nolan: For example, New Hampshire State legislators are working on a bill that would institute structural reforms to new Hampshire's energy facility site evaluation committee or the SEC, reducing the size of the SEC from nine members to five and.

Joseph R. Nolan: And eliminating unnecessary process to improve efficiency and to lead to more consistent outcomes.

Joseph R. Nolan: In turn, this will lead to an accelerated siting and permitting process for these clean energy initiatives. Turning to Connecticut, state policy leaders have a vision of solar expansion, electric vehicle adoption, and Future Renewable Purchase Power Agreements as part of its Clean Energy Transition.

Joseph R. Nolan: In turn this will lead to an accelerated sighting and permitting process for these clean energy initiatives.

Joseph R. Nolan: Turning to Connecticut.

Joseph R. Nolan: State policy leaders have a vision of solar expansion electric vehicle adoption and future renewable purchase power agreements as part of its clean energy transition.

Joseph R. Nolan: We are a strong supporter of these efforts to enable a clean energy future for our customers, and we are certainly looking to partner with the state collaboratively and productively to achieve this important vision for our customers. While we continue to work diligently to support state policy leaders on thoughtful and reasonable policies aimed at increased adoption of clean energy technologies and the reduction of carbon emissions, we have serious concerns with the lack of alignment between state policy and regulatory decisions implementing that policy.

Joseph R. Nolan: We are a strong supporter of these efforts to enable the clean energy future for our customers and we certainly are looking to partner with the state collaboratively and productively to achieve this important vision for our customers.

Joseph R. Nolan: While we continue to work diligently to support state policy leaders on thoughtful and reasonable policies aimed at increased adoption of clean energy technologies and the reduction of carbon emissions, we have serious concerns with the lack of alignment between state Paul.

Joseph R. Nolan: <unk> and regulatory decisions implementing that policy.

Joseph R. Nolan: As it stands, regulatory policies in Connecticut discourage investment and utility innovation, as well as our participation in a wide range of clean energy initiatives that rely on our balance sheet and our capital resources. Upfront program funding by the utilities does not work where cost recovery is continually deferred and delayed into the future on uncertain terms.

Joseph R. Nolan: As it stands regulatory policies, and Connecticut, discourage investment and utility innovation as well as our participation in a wide range of clean energy initiatives that rely on our balance sheet and our capital resources.

Joseph R. Nolan: Upfront program funding by the utilities does not work with cost recovery is continually deferred and delayed into the future on uncertain terms.

Joseph R. Nolan: Without recognition that our funding sources rely on a secure and predictable cost recovery path, we cannot move forward to put additional capital resources on the table.

Joseph R. Nolan: Without recognition that our funding sources rely on a secure and predictable cost recovery path, we cannot move forward to put additional capital resources on the table. We are encouraged by Pura's decision last month to provide timely reimbursement of deferred public policy costs to the company's electric annual rate adjustment mechanism. Decisions that adhere to the law and legislative policy are critical to assure a constructive regulatory environment in Connecticut and to make the vision of a clean energy future a reality for our customers.

Joseph R. Nolan: We are encouraged by purest decision last month to provide timely reimbursement of deferred public policy costs through the company's electric annual rate adjustment mechanism.

Joseph R. Nolan: Decisions that adhere to wall and legislative policy are critical to assure.

Joseph R. Nolan: A constructive regulatory environment in Connecticut and to make the vision of a clean energy future a reality for our customers.

Joseph R. Nolan: Looking forward to the future we remain committed to our extensive outreach plan across Connecticut, furthering our efforts to engage collaboratively and productively with Connecticut leadership.

Joseph R. Nolan: Looking forward to the future, we remain committed to our extensive outreach plan across Connecticut, furthering our efforts to engage collaboratively and productively with Connecticut's leadership. Lastly, I want to thank my Eversource colleagues for their unwavering commitment and dedication to our customers. I have the utmost confidence in our team to deliver safe and reliable energy services to our customers, with daily progress toward a clean energy future. I will now turn the call over to John Moreira to walk through our financial results.

John M. Moreira: Lastly, I want to thank my ever source colleagues for their unwavering commitment and dedication to our customers I have the utmost confidence in our team to deliver safe and reliable energy service to our customers with daily progress toward a clean energy future.

Joseph R. Nolan: I will now turn the call over to John Moreira to walk through our financial results.

John M. Moreira: Thank you, Joe, and good morning everyone. This morning, I will discuss our first quarter financial results, give you a regulatory update, and discuss Covered Drivers for our Cash Flow Enhancement. I'll start with the first quarter results on slide 7, our gap in recurring earnings for the quarter was $1.49 per share compared with gap and recurring earnings of $1.41 per share last year. Breaking down the first quarter earnings results of $1.49 per share into segments, our electric transmission earned $0.50 per share compared with earnings of $0.45 per share in 2020.

John M. Moreira: Thank you Joe and good morning, everyone. This morning, I will discuss our first quarter financial results.

John M. Moreira: To give you a regulatory update.

John M. Moreira: And cover drivers for our cash flow enhancement.

John M. Moreira: I'll start with the first quarter results on slide seven our gap and recurring earnings for the quarter were $1 49 per share compared with GAAP and recurring earnings of $1 41 per share last year.

John M. Moreira: Taking down the first quarter earnings results of the $1 49 per share in two segments are electric transmission earned <unk> 50 per share compared with earnings of 45 per share in 2023 and.

John M. Moreira: The improved results were driven by our continued investments in our transmission system to address capacity growth for customers and connect clean energy resources to the region. Our electric distribution earnings were $0.48 per share compared with earnings of $0.47 per share in 2023. Higher revenues, primarily due to a base distribution rate increase at NSTAR Electric, were partially offset by higher operating expenses, higher interest expense, and increased property taxes and depreciation. Our natural gas distribution business earned $0.54 per share compared with $0.49 per share in 2023.

John M. Moreira: In food results were driven by our continued investments in our transmission system to address capacity growth for customers and connect clean energy resources to the region.

John M. Moreira: Our electric distribution earnings were <unk> 48 per share compared with earnings of 47 per share in 2023.

John M. Moreira: Here revenues, primarily due to a base distribution rate increase at <unk> electric were partially offset by higher operating expense higher interest expense and increased property taxes and depreciation.

John M. Moreira: Natural gas distribution earnings increased due to higher revenues from capital cost recovery mechanisms, a base rate increase at NSTAR Gas, and lower operating expenses. Our water distribution segment contributed a penny per share compared with flat earnings in 2023. Eversource parent and other company earnings were a loss of $0.04 per share compared to break-even results in 2023.

John M. Moreira: Our natural gas distribution business earned <unk> 54 per share compared with 49 per share in 2023 <unk>.

John M. Moreira: Natural gas distribution earnings increased due to higher revenues from capital cost recovery mechanisms.

John M. Moreira: <unk> rate increase at end star gas and lower operating expenses, our water distribution segment contributed a penny per share compared with flat earnings in 2023.

John M. Moreira: The lower results were due primarily to higher interest expense and the absence of a net benefit in the first quarter of last year from the liquidation of a Renewable Energy Fund. Overall, our first quarter earnings were in line with our expectations, and we are reiterating our 2024 EPS guidance of $4.50 to $4.67 per share, as well as our longer term 5 to 7% EPS growth rate. Turn to regulatory items on slide eight.

John M. Moreira: <unk> parent and other company earnings were a loss of four <unk> per share compared to breakeven results in 2023.

John M. Moreira: The lower results were due primarily to higher interest expense.

John M. Moreira: And the absence of a net benefit in the first quarter of last year from the liquidation of a renewable energy fund overall, our first quarter earnings were in line with our expectations and we are reiterating our 2024 EPS guidance of $4 50 to $4.

John M. Moreira: <unk> 67 per share.

John M. Moreira: As well as our longer term, 5% to 7% EPS growth rate.

John M. Moreira: Turning to regulatory items on slide eight.

John M. Moreira: Starting with Massachusetts, we filed our electric sector modernization plan with the Massachusetts Department of Public Utility in January, and we expect to have a decision on our plan in the August timeframe. Our ESMP calls for an incremental $600 million capital investment for the interconnection of solar resources through 2028. As a reminder, this $600 million is incremental to our $23.1 billion capital investment forecast we announced back in February. In New Hampshire, we are very busy on the regulatory front.

John M. Moreira: Starting with Massachusetts, We filed our electric sector modernization plan with the Massachusetts Department of public utility in January and we expect to have a decision on our plan in the August timeframe.

John M. Moreira: Our SMT calls for an incremental 600 million dollar of capital investments.

John M. Moreira: For interconnection of solar resources through 2028, as a reminder, this.

John M. Moreira: <unk> 600 million is incremental to our $23 1 billion capital investment forecast, we announced back in February.

John M. Moreira: In New Hampshire, we are very busy on the regulatory front in.

John M. Moreira: In March, we submitted our documentation for a prudential review of $232 million in storm costs related to storm events from August 2022 through March of 2023. We anticipate that review will be completed later this year. In addition, we anticipate filing a rate review in New Hampshire this summer, with temporary rate relief going into effect 90 days after the filing. Closing out the regulatory update is Connecticut, where we received the final decision on our annual rate adjustment mechanism two weeks ago for new rates to become effective July 1st of this year.

John M. Moreira: In March we submitted our documentation for a prudency review of $232 million of storm costs related to storm events from August 2022 through March of 2023.

John M. Moreira: We anticipate that review will be completed later this year.

John M. Moreira: In addition, we anticipate filing a rate review in New Hampshire. This summer with temporary rate relief going into effect 90 days after the fire.

John M. Moreira: Closing out the regulatory update as Connecticut, where we received a final decision on our annual rate adjustment mechanism two weeks ago for new rates to become effective July one of this year.

John M. Moreira: The major drivers of the $873 million increase are recoveries of purchase power contracts and protected hot-ship uncollectible accounts, both of which are cost-required by law. These under-collected costs in Connecticut, which were approximately $400 million in 2023, contributed significantly to a reduction in our 2023 FFO2 debt ratio. This rate impact will be significantly offset by lower energy supply costs that will also go into effect July 1st of this year. We appreciate Pure's decision to provide timely reimbursement to the company of these state policy costs as required by law, reducing the pressure on our balance sheet to finance these costs for a longer time period. Timely recovery of these costs reduces the total amount that customers will pay through the avoidance of carrying charges on these balances.

John M. Moreira: The major drivers of the $873 million increase our recoveries of purchase power contracts and protected hardship uncollectible accounts, both of which are cost required by law.

John M. Moreira: These under collected costs in Connecticut, which were approximately $400 million in 2023 contributed significantly to a reduction in our 2023 <unk> to debt ratio.

John M. Moreira: This rate impact will be significantly offset by lower energy supply cost that will also go into effect July one this year.

John M. Moreira: We appreciate your decision to provide timely reimbursement to the company of these state policy costs as required by law, reducing the pressure on our balance sheet to finance these costs for a longer time period.

John M. Moreira: Timely recovery of these costs reduces the total amount that customers will pay through avoidance of carrying charges on these balances.

John M. Moreira: In March we submitted our request for a prudency review of approximately $635 million of Connecticut storm costs related to weather events that occurred from 2018 through 2021. The vast majority of these costs represent payments to outsource.

John M. Moreira: In March, we resubmitted our request for prudency review of approximately $635 million in Connecticut storm costs relating to weather events that occurred from 2018 through 2021. The vast majority of these costs represent payments to outside line and tree crews to assist in the restoration resulting from 24 significant storm events during that period. We are currently in the discovery phase of the proceeding. As a reminder, recovery of these costs will coincide with new distribution rates following our next general distribution rate proceeding.

John M. Moreira: <unk> line and tree crews to assist in the restoration, resulting from 24 significant storm events during that period.

John M. Moreira: We are currently in the discovery phase of the proceeding as a reminder, recovery of these costs will coincide with new distribution rates. Following our next general distribution rate proceeding.

John M. Moreira: In early April following the superior Court decision on our Aquarian rate case, we filed for a review of that decision by the appellate court along with a request to transfer the appeal directly to the Connecticut Supreme Court.

John M. Moreira: In early April, following the Superior Court decision on our Aquarian rate case, we filed for a review of that decision by the Appellate Court, along with a request to transfer the appeal directly to the Connecticut Supreme Court. We are requesting that the Connecticut Supreme Court hear this case due to the critical legal issues raised by the Aquarion Rate Decision. Without proper resolution of these issues, there will be a negative impact on utility investment in customers. Long-term

John M. Moreira: We are requesting that the Connecticut Supreme Court hear this case due to the critical legal issues raised by the acquiring on rate decision.

John M. Moreira: Without proper resolution of these issues there will be a negative impact on utility investment and customers.

John M. Moreira: Long term.

John M. Moreira: As Joe mentioned.

John M. Moreira: As Joe mentioned, we are committed to our extensive and ongoing outreach efforts that have been pivotal to educating key leaders and communities on the necessity for stable regulatory policy. We are also demonstrating our commitment to support the state's policy leaders who seek to move the state forward with thoughtful and reasonable policies aimed at reducing carbon emissions and achieving increased adoption of clean energy resources. A successful path to a clean energy future will require a substantial ramp-up in planned proactive distribution infrastructure investment, rather than a piecemeal approach, as well as sound public policies and adherence to legal principles to enable that investment.

John M. Moreira: We are committed to our extensive and ongoing outreach efforts that have been pivotal to educating key leaders and communities on the necessity for stable regulatory policies.

John M. Moreira: We are also demonstrating our commitment to support the state's policy leaders, who seek to move the state forward with thoughtful and reasonable policies aimed at reducing carbon emissions and achieving increased adoption of clean energy resources.

John M. Moreira: A successful path to a clean energy future will require a substantial ramp up in planned proactive distribution infrastructure investment rather than piecemeal approach as well as sound public policies and adherence to <unk>.

John M. Moreira: Legal principles to enable that investment.

John M. Moreira: However, the existing gap between the state's vision of a transition to a clean energy future and the regulatory framework discouraging investment is an obstacle to Connecticut's progress on climate change, the clean energy transition, and even core service goals.

John M. Moreira: However, the existing gap between the states vision of a transition to a clean energy future and the regulatory framework discourage and investment is an obstacle for Connecticut progress on climate change the clean energy transition and even core service goals.

John M. Moreira: As a result, we have taken a hard look at our capital deployment priorities and are implementing necessary cuts to our Connecticut investment levels in 2024 and over the next five years. In 2024, we are reducing our capital expenditures by nearly $100 million, and we have notified Pure of our unwillingness to put capital at risk in relation to advanced meter infrastructure and electric vehicle programs. In total, we are expecting to reduce capital investment in Connecticut by $500 million over the next five years.

John M. Moreira: As a result.

John M. Moreira: We have taken a hard look at our capital deployment priorities and are implementing necessary cuts to our Connecticut investment levels in 2024 and over the next five years.

John M. Moreira: In 2024, we are reducing our capital expenditures by nearly $100 million.

John M. Moreira: And we have notified pure of our unwillingness to put capital at risk in relation to advanced meter infrastructure and electric vehicle programs.

John M. Moreira: In total we are expecting to reduce capital investment in Connecticut by $500 million over the next five years.

John M. Moreira: Until we see Connecticut's regulatory decisions come back into alignment with law and state policy, our decisions on the deployment of our valuable capital resources have to be based on our current experience with regulatory outcomes for utility investment. With that, I do want to emphasize that we are confirming our five-year capital expenditure forecast of $23.1 billion across all business units. Substantial, consistently emerging infrastructure needs across our system provide ample opportunity for capital deployment in lieu of using those valuable resources in Connecticut.

John M. Moreira: Until we see Connecticut regulatory decisions come back into alignment with the law and state policy our decisions on the deployment of our valuable capital resources have to be based on our current experience with regulatory outcomes for utility investment.

John M. Moreira: With that I do want to emphasize that we are confirming our five year capital expenditure forecast of $23 1 billion across all business units.

John M. Moreira: Stanchion consistently emerging infrastructure needs across our system provides ample opportunity for capital deployment in lieu of using those valuable resources in Connecticut.

John M. Moreira: I will now cover a number of drivers that are expected to enhance our FFO-to-debt ratio from 2023 to 2025. As you can see on slide 9, the under-collection of 2023 deferred state policy costs, which will now be recovered as a result of the 2024 Annual Rate Adjustment Decision in Connecticut, as well as other under-recoveries of regulatory deferrals across all states of approximately $200 million, contributed to the lower FFO2 debt that we experienced in 2023.

John M. Moreira: I will now cover a number of drivers that are expected to enhance our <unk> to debt ratio from 2023 to 2025 as you can see on slide nine.

John M. Moreira: The under collection of 2023 preferred stay policy cost.

John M. Moreira: Which will now be recovered as a result of the 2024 annual rate adjustment decision in Connecticut, as well as other under recoveries of regulatory deferrals across all states of approximately $200 million contributed to the lower <unk>.

John M. Moreira: We experienced in 2023.

John M. Moreira: We expect other enhancements in 2024 and 2025 that include the sale of South Fork and Revolution Win Assets to GIP. Upon the closing of the sale to GIP, we anticipate receiving approximately $1.1 billion in cash from this transaction. In addition to the GIT sale proceeds, we anticipate utilizing our tax equity investment in South Fork Wind, which we expect will bring around $500 million in cash over the next 24 months. Lastly, collection of storm costs in Massachusetts and New Hampshire, planned rate increases at our utilities, the sale of our Sunrise Wind Project to Orsted, equity issuances, and cash flows from a potential sale of our water business will drive the enhancement of 2023 FFO to debt to 14 to 15 targeted by 2025.

John M. Moreira: We expect other enhancements in.

John M. Moreira: In 2024, and 2025 that include the sale of South Fork and.

John M. Moreira: And revolution wind assets to <unk>.

John M. Moreira: Upon closing of the sale of <unk>, we anticipate receiving approximately $1 1 billion of cash proceeds from this transaction.

John M. Moreira: In addition to the <unk> sale proceeds we anticipate utilizing our tax equity investment in South Fork win, which we expect will bring around $500 million of cash over the next 24 months.

John M. Moreira: Lastly collection of storm cost in Massachusetts, and New Hampshire.

John M. Moreira: Planned rate increases at our utilities, the sale of our Sunrise wind project to <unk> equity issuances and cash flows from a potential sale of our water business will drive the enhancement of 2023 <unk> debt to 14% to 15 targeted.

John M. Moreira: By 2025.

John M. Moreira: Moving on to our equity issuances, in the first quarter of 2024, we raised approximately $75 million through our existing ATM program, and we issued 550,000 treasury shares. We continue to anticipate our equity need to be up to $1.3 billion over the next several years. Also, as we announced in February, we are undertaking a review of our water distribution business. Proceeds from a successful sale are assumed in our long-term financing plan, reducing the level of equity that would otherwise be needed.

John M. Moreira: Moving on to our equity issuances in the first quarter of 2024, we raised approximately $75 million through our existing ATM program and we issued 550000 treasury shares.

John M. Moreira: We continue to anticipate our equity needs to be up to one 3 billion over the next several years.

John M. Moreira: Also as we announced in February we are undertaking a review of our water distribution business.

John M. Moreira: Proceeds from a successful sale are assumed in our long term financing plan, reducing the level of equity that would otherwise be needed.

John M. Moreira: We continue to prepare materials needed to launch the first phase of this process. Closing out on slide 10, as I mentioned earlier, our $23.1 billion five-year capital forecast and our forecasted financing plan drive our 5-7% EPS growth rate through 2028, based on our 2023 recurring EPS of $4.34 per share. I'll now turn the call back to Matt for Q&A.

John M. Moreira: We continue to prepare materials needed to launch the first phase of this process.

John M. Moreira: Closing out on slide 10, as I mentioned earlier, our $23 1 billion five year capital forecast and our forecasted financing plan drive our 5% to 7% EPS growth rate through 2028 based off of our 2023.

Matt Fallon: <unk> EPS of $4 34 per share.

John M. Moreira: I'll now turn the call back to Matt for Q&A.

Matt Fallon: Thank you John.

Matt Fallon: Thank you, John. Alyssa, we are now ready for questions. Thank you.

Matt Fallon: We are now ready for questions.

Alyssa: Thank you we will now begin the question and answer session.

Alyssa: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. If, for any reason, you would like to remove your question or your question has been answered, please press star 2. If you are using a speakerphone, please pick up your handset before asking your question. Once again, it is star 1 to Q. The first question comes from the line of Shahriar Pourreza with Guggenheim. Your line is now open.

Alyssa: If you would like to ask a question. Please press star one on your telephone keypad.

Alyssa: If for any reason you would like to remove your question or your question has been answered. Please press star two.

Alyssa: If you are using a speakerphone please pick up your handset before asking your question.

Shahriar Pourreza: Once again it is star one to queue.

Shahriar Pourreza: The first question comes from the line of sharp <unk> with Guggenheim.

Shahriar Pourreza: Your line is now open.

Shahriar Pourreza: Hey, guys good morning.

Shahriar Pourreza: Good morning Shar.

Shahriar Pourreza: Good morning. Joe, I guess, just firstly, what capex are you guys actually cutting in Connecticut? Were you kind of redeploying, and is that redeployment actually accretive, just given the cost of capital difference?

Shahriar Pourreza: Good morning.

Shahriar Pourreza: So I guess.

Shahriar Pourreza: Just firstly, what Capex are you guys actually cutting in Connecticut, where you kind of redeploying.

Shahriar Pourreza: Is that redeployment actually accretive just given the cost of capital differences. Thanks.

Joseph R. Nolan: You know, thank you, Shahriar. You know, over the past decade, we've spent a significant amount of money on electric reliability for our Connecticut customers. You know, our best-in-class engineering has moved months between interruptions from ten months to nearly two years. So clearly, our investments have paid huge dividends for our Connecticut customers. However, the regulatory decisions over the past few years are misaligned with the law and state policy, and without a secure and predictable cost recovery path, we cannot continue to put additional capital resources on the table.

Shahriar Pourreza: Thank you sure over the past decade, we've spent a significant amount of money on electric reliability for our Connecticut customers.

Joseph R. Nolan: Our best in class Engineering has moved months between interruptions from 10 months to nearly two years. So clearly our investments have paid huge dividends for our Connecticut customers. However, the regulatory decisions over the past few years are misaligned with the water in the state policy and without a secure predictable cost.

Joseph R. Nolan: Recovery, we cannot continue to put additional capital resources on the table. So our investment objectives, and Connecticut have been centered around safety and reliability. As you would expect we will not reduce our safety spending reduction.

Joseph R. Nolan: So our investment objectives in Connecticut have been centered around safety and reliability. As you would expect, we will not reduce our safety spending; therefore, the reduction will likely come from reliability areas. You know, as John has mentioned, we have ample opportunities for capital deployment on our system. So, you know, we feel very, very good about that. And yes, it would be a job creator.

Joseph R. Nolan: The reduction will likely come from reliability areas.

Joseph R. Nolan: John has mentioned, we have ample opportunities for capital deployment.

Joseph R. Nolan: On our system so.

Joseph R. Nolan: We are we feel very very good about that and yes, it will be accretive.

Joseph R. Nolan: And Joe, can you cut more if need be?

Speaker Change: Got it and Joe can you cut more if need be.

Joseph R. Nolan: Well, we are going to be very thoughtful and deliberate about it. Obviously, you know, we've had a great track record down there. I will tell you that the reliability numbers in that state are best in class. I don't think you'll find them anywhere else around the country. So I'm very proud of that.

Joe: Well, we are going to be very thoughtful and deliberate about it obviously.

Joseph R. Nolan: We've got a great track record down there I will tell you that the reliability numbers in that state are best in class I don't think youll find it youll find it really anywhere else around the country. So I'm very proud of that but if we continue to see this <unk>.

Joseph R. Nolan: But, you know, if we continue to see this negative regulatory environment, we're going to have to look at it.

Joseph R. Nolan: Negative regulatory environment, we're going to have to look at everything.

Unknown Executive: I would also add, Shah, that as a reminder, we do have a resiliency program in place where we get timely recovery of up to $300 million of distribution investment at CL&P, which has been very, very critical for us to achieve this performance level that Joe just mentioned.

Joseph R. Nolan: I'd also add that as a reminder, we do have a resiliency program in place, which we get timely recovery of up to $300 million of <unk>.

Unknown Executive: Distribution investments at <unk>, and <unk>, which has been very very critical for us to achieve this performance level that Joe just mentioned.

Shahriar Pourreza: Got it. And then, maybe just a quick one for John. John, just the up to $1.3 billion of equity is obviously still in the plan. And obviously, that level is going to be dictated by the, you know, the water sale outcome. I guess, how are you thinking about the means of issuance? Are you thinking more in systematic terms, or kind of pre-funding spending and the balance sheet ahead of time? So, ATMs versus maybe ripping the bandage off blocks?

Speaker Change: Got it and then maybe just a quick one for John John just the up to $1 3 billion of equity is obviously still on plan and obviously that level, it's going to be dictated by the water sale outcome. I guess, how are you thinking about the means of issuances are you thinking more in systematic terms or kind of pre funding spending in the balance.

Shahriar Pourreza: She'd ahead of time, so Atms versus maybe rip the bandage off block. Thanks.

John M. Moreira: Our view, and that will continue to be our position, is to be opportunistic and exploratory, utilizing our ATM program to accomplish that. As I've said time and time again, an ATM program gives us tremendous flexibility. And we were very successful in executing, at least through March, 75 million. We've done quite a bit more, you know, over the past couple of weeks.

John: Our view and that will continue to be our position is to be opportunistic and exploring.

John M. Moreira: Utilizing our ATM program to accomplish that.

John M. Moreira: <unk> said time and time again, and ATM program gives us tremendous flexibility and we were very successful.

John M. Moreira: And execute and at least through March $75 million, we've done quite a bit more.

John M. Moreira: Over the past couple of weeks.

John M. Moreira: Weeks.

Shahriar Pourreza: Okay, perfect. Thank you guys. I appreciate it.

Speaker Change: Okay perfect. Thank you guys appreciate it.

Speaker Change: Thank you.

Alyssa: Thank you. The next question comes from the line of Carly Davenport with Goldman Sachs. Your line is now open.

Shahriar Pourreza: Thank you. The next question comes from the line of Carly Davenport with Goldman Sachs. Your line is now open.

Carly S. Davenport: Hey, good morning. Thanks for taking the questions. Morning, Carly. Good morning. Thanks so much for taking the time. I wanted to just start on the FFO to debt walk. Thanks for the details there. I guess first, could you just remind us of the cadence of the 2023 under-recoveries hitting the cash flow statement this year, and then how should we just think about, as we think about the other drivers that you'd identified, sort of the split between the impacts between the 1.8 and those other drivers?

Carly S. Davenport: Hey, good morning, good morning to all my questions.

Speaker Change: Good morning.

Carly S. Davenport: <unk>.

Speaker Change: Morning, Thanks, so much for taking the time.

Carly S. Davenport: I wanted to just start on the alpha side of.

Carly S. Davenport: That work thanks for the details there.

Carly S. Davenport: I guess first could you just remind us of the cadence of the 2023 under recoveries hitting the cash flow statement. This year and then how should we just think about as we think about the <unk>.

Carly S. Davenport: Other drivers that you've identified sort of the split between the impact.

Carly S. Davenport: The one eight on those other drivers.

John M. Moreira: Sure, so the under-recovery, as highlighted in slide 9, Kali, for 2023 across all of the utilities with the biggest impact being CLMP in Connecticut was approximately $600 million. So if you were to normalize, you know, where we landed at the end of 2023 from the net foot of debt used at Moody's was approximately 9%. So that would drive that up, as we've indicated on the slide, by about 200 basis points. So with the favorable order that we received a couple of weeks ago on the annual rate adjustment mechanism, we feel good that that cash plus more related to 2024 costs will start to come in the door effective July 1st through April 30th of next year.

Speaker Change: Sure so the under recovery.

Speaker Change: Highlighted on slide nine colleague.

John M. Moreira: For 2023 across all of the utilities with the biggest.

John M. Moreira: Impact being in <unk>, Connecticut was approximately $600 million.

John M. Moreira: So if you were to normalize where we landed at the end of 2020, right I mean, thats afforded that using at Moody's was approximately 9%. So that would that would drive that up as we've indicated on the slide about 200 basis points, so with the phase.

John M. Moreira: <unk> order that we received a couple of weeks ago on the annual.

John M. Moreira: Rate adjustment mechanism.

John M. Moreira: We feel good that that cash plus more related to 2020 for costs.

John M. Moreira: Well we'll.

John M. Moreira: We will start to come in the door effective July for us.

John M. Moreira: Through April 30 of next year. So a 10 month recovery, which is very very helpful to us.

John M. Moreira: So a 10-month recovery, which is very, very helpful. And then the other items, what we've tried to do is to highlight where we, you know, as it relates to our offshore wind, what we have already identified and have disclosed to you all, that would significantly move us up closer to the 14 to 15% range by the end of 2025, but certainly building up towards that range, towards that time period.

John M. Moreira: And then the other items, what we've tried to do is to highlight.

John M. Moreira: Where we.

John M. Moreira: As it relates to our offshore wind, what we have already identified and have disclosed to you all.

John M. Moreira: That would significantly move us up closer to the 14% to 15% range by the end of 2025, but certainly building up towards that range towards the towards that time period.

Carly S. Davenport: Got it. Okay, great. Thank you.

Speaker Change: Got it okay, great. Thank you and then maybe just on the Massachusetts, the SMP process.

Speaker Change: What are sort of the next milestone for us to look out for there and then just more broadly how do you think about opportunities for for the other states that you serve to adopt sort of similar frameworks.

John M. Moreira: Sure, so I'll start with Massachusetts. Hearings on that docket have basically concluded, so now we get into the briefs and reply briefs. One thing I want to point out, too, based on the legislation that was passed a couple years ago, the clean energy legislation, the DPU does have to render a decision by that August time frame that I stated in my formal remarks. So as we move forward, the 600 million that I highlighted in my formal remarks is really what will materialize if we do get a favorable approval from the DPU, and that will materialize within our forecast period, but there Thank you.

John M. Moreira: And then maybe just on the Massachusetts CSMP process: what are the sort of next milestones for us to look out for there? And then, more broadly, how do you think about opportunities for the other states that you serve to adopt sort of similar frameworks? Sure, so I'll start with Massachusetts.

Speaker Change: Sure. So I'll start with Massachusetts, So hearings on that docket, just basically concluded so now we get into the the briefs and reply briefs, but one thing I want to point out too based on the legislation that was passed a couple of years ago, the clean energy legislation.

John M. Moreira: The GPU does have to render a decision by that August timeframe that I stated in my formal remarks.

John M. Moreira: As we move forward.

John M. Moreira: The 600 million that I highlighted in my formal remarks is really what would materialize if we do get a favorable.

John M. Moreira: Approval from the GPU that will materialize within our forecast period, but there is further investments that will be needed beyond our current forecast period that we've also had highlighted in our filings.

Speaker Change: Thank you Joe.

John M. Moreira: So, obviously, Massachusetts continues to be very proactive in identifying opportunities to really make sure that the goals that the state has established are realistically and proactively accomplished. In Connecticut, as Joe mentioned, we would love to support their clean energy strategy, but as we have both indicated in our formal remarks, it will require collaboration and cooperation by us, by the utilities in Connecticut, as well as the authorities. And then lastly, in New Hampshire, as we mentioned, we are having discussions with the state on utility-owned solar. We will likely be proposing an investment opportunity in the months to come. As I mentioned in my formal remarks, we do plan to file for a rate review this summer.

John M. Moreira: So obviously, Massachusetts continues to be very proactive in identifying opportunities to really.

John M. Moreira: Make sure that the goals that the state has established is realistically.

John M. Moreira: And proactively accomplished in mass in Connecticut, as Joe mentioned, we would love to support their clean energy strategy, but as as we have both indicated in our formal remarks, it will require a collaboration and cooperation.

John M. Moreira: US by the utilities in Connecticut as well as.

John M. Moreira: The authority.

John M. Moreira: And then lastly in new Hampshire, as we as we mentioned.

John M. Moreira: And having discussions with.

John M. Moreira: With with the state on utility owned solar.

John M. Moreira: We will likely be proposing.

John M. Moreira: An investment opportunity in the months to come as you as I mentioned in my formal remarks, we do plan to file for a rate review this summer.

John M. Moreira: And all of that solar investment, just to keep in mind, would be regulated investment, solar investment, utility-owned, very similar to the model that we have here in Massachusetts and Colorado.

John M. Moreira: And all of that solar investments just to keep in mind would be regulated investment.

John M. Moreira: Solar investment utility owned.

John M. Moreira: Very similar to the model that we have here in Massachusetts Carly.

Carly S. Davenport: Awesome, I appreciate that color.

Speaker Change: Awesome I appreciate that color.

Speaker Change: Thank you.

Alyssa: Thank you. The next question comes from the line of Nick Campanella with Barclays.

Carly S. Davenport: The next question comes from the line of Nick Campanella with Barclays. Your line is now good morning, Nick.

Nicholas Joseph Campanella: Hey, good morning, everyone. Thanks for the time. Good morning. Hey, so just kind of sticking with Connecticut here and just, you know, the fact that you're cutting investment there, but you also have this, this rate order, this outcome on Aquarian, just how do you kind of see that kind of affecting the process that you're running there to potentially monetize the asset and just maybe you can kind of update us on that process, your confidence level that, you know, whatever happens there, there wouldn't be additional equity kind of coming into the plan that you outlined today?

Nicholas Joseph Campanella: Good morning, Hey, good morning, everyone. Thanks for thanks for the time good morning, Hey, so.

Nicholas Joseph Campanella: Just kind of sticking with Connecticut here and just the fact that youre cutting investment there, but you also had this.

Nicholas Joseph Campanella: This rate order.

Nicholas Joseph Campanella: This outcome on Aquarian just.

Nicholas Joseph Campanella: How do you kind of see that kind of affecting the process that you are running there to potentially monetize the asset and just maybe you can kind of update us on that process and your confidence level that whatever happens there there wouldn't be.

Nicholas Joseph Campanella: Additional equity kind of coming into the plan that you outlined today.

Joseph R. Nolan: Well, the appeal process, obviously, we would love to have a positive data point, but the appeal process will continue to make its way, probably looking at least a year in the making. But we continue to move forward with launching phase one of the process relatively soon, and then we'll make the decision at that point.

Nicholas Joseph Campanella: Well.

Nicholas Joseph Campanella: The appeal process.

Speaker Change: Obviously, we would love to have a positive data point, but.

Joseph R. Nolan: The appeal process will continue to make its way, you're probably looking at least a year in the making.

Joseph R. Nolan: We continue to move forward with launching phase one of the process relatively soon.

Joseph R. Nolan: And then we'll make the decision at that point.

Nicholas Joseph Campanella: Okay, so we're still moving ahead, it seems. Um, I appreciate that.

Speaker Change: Okay. So still still moving ahead of things.

Joseph R. Nolan: I appreciate that I guess, just a follow up on Carla's question just around the <unk>.

Nicholas Joseph Campanella: The South Fork tax equity investment would probably be I would guess more onetime in nature to the kind of I guess cash flow improvement, but just I just wanted to kind of confirm like net of these kind of.

Nicholas Joseph Campanella: I guess just a follow-up to Carly's question just around the FFO to debt. Just FYI, the South Fork's tax equity investment would probably be, I would guess, more one-time in nature to the, I guess, cash flow improvement. But just, I just wanted to kind of confirm, like, net of these kind of one-time items, do you still see this path getting you to 14 to 15 percent? And, you know, what's really kind of driving that net of one-time issues? Yeah.

Nicholas Joseph Campanella: One time items, you still see this path getting you too.

Nicholas Joseph Campanella: 14 of 15% and whats really kind of driving that net of the one time issues.

John M. Moreira: Yeah, no, we certainly do, Nick, you know, the tax equity. We actually think, as I stated, 24 months, that's probably a bit conservative. I think that will probably bleed into 2026. We do have other tax benefits that we want to utilize for ourselves before we tap into those ITCs. So that can be elongated a bit, which is great. And then, longer term, yes, that does fall off the cliff. We have other items that will certainly kick in. We are sitting on a pretty large deferred storm balance, so I see those costs coming in potentially 2026, certainly 2027, and beyond to really maintain that high level of FFO to DEMC.

Speaker Change: Yes, no we certainly do Nick.

John M. Moreira: The tax equity.

John M. Moreira: We actually think as I stated 24 months.

John M. Moreira: Hopefully a bit conservative I think that will probably bleed into two.

John M. Moreira: <unk> 2026, but we do have other tax benefits that we want to utilize for us before we tap into those <unk>.

John M. Moreira: So that can be long dated a bit which is great and then longer term, yes that does that does fall off the cliff.

John M. Moreira: But we have other items that will certainly kick in we aren't sitting on a pretty large deferred storm balance so I see those costs coming in in 2000, and potentially 26, certainly with 27 and beyond.

John M. Moreira: Really.

John M. Moreira: Maintain that high level of <unk> to debt.

Nicholas Joseph Campanella: Thanks. And then just one last one for me, just on Sunrise.

John M. Moreira: Thanks, and then just one last one for me just on <unk>.

John M. Moreira: I know that you're not given the price, but, you know, last quarter there was a negative book value. I don't believe that the Q is out. But is that still the case or something that you can kind of talk about? Or do we have to wait for the sale agreement to be public for you to revise that? It does, and that's really, you know, we have to follow.

John M. Moreira: On Sunrise I know that youre, not given the price, but last quarter. There was negative book value I don't believe that the queues out.

John M. Moreira: But is that does that still the case or something that you can kind of talk about or do we have to wait for that.

John M. Moreira: The sale agreement to be to be public for you to revise that.

John M. Moreira: It does, and that's really, you know, we have to follow the accounting rules, and the accounting rules basically say that if you have a contingent gain, you have to wait to get your cash, right, so that, therefore, the transaction has to close. So we're probably, I would say you should expect a true-up of those balances to occur, probably in the third quarter of this year.

John M. Moreira: It does and that's that's really we have to follow the accounting rules and the accounting rules basically says that if you have a contingent gain you would have to wait to get the cash or IBM.

John M. Moreira: Therefore, the transaction has to close so we are probably I would say you should expect a true up of those balances to occur likely in the third quarter of this year.

Speaker Change: Thank you very much.

Speaker Change: Sure thing.

Alyssa: Thank you. The next question comes from the line of Jeremy Tonet with J.P. Morgan. Your line is now open.

John M. Moreira: The next question comes from the line of Jeremy Tonet with Jpmorgan. Your line is now open.

Jeremy Bryan Tonet: Good morning, Jeremy. Good morning, good morning.

Jeremy Bryan Tonet: Good morning, Jeremy Good morning, good morning. Thanks.

Jeremy Bryan Tonet: Thanks for having me. Maybe just continuing with slide 10 here real quick. Thanks for all the color provided. Just wanted to confirm the major drivers, everything on the right side of that slide, that's all treated as FFO and not debt reduction when you talk about the walk from 14 to 15%. Yeah, no, I

Jeremy Bryan Tonet: Thanks for having me.

Jeremy Bryan Tonet: Maybe just continuing with slide 10 here real quick alright. Thanks for all the color provided just wanted to confirm the major drivers everything on the right hand of that slide that's all treated.

Jeremy Bryan Tonet: <unk> and not debt reduction when you talk about the walk from <unk>.

Jeremy Bryan Tonet: <unk> thousand 14% to 15%.

John M. Moreira: Yeah, no, it's a mixed bag. So obviously, what's more critical is that we have the cash coming in, right, which will displace debt and obviously enhance our operating cash flows.

Jeremy Bryan Tonet: Yes.

Speaker Change: It's a mixed bag so obviously.

John M. Moreira: It's more critical is that we have the cash coming in.

John M. Moreira: Right.

John M. Moreira: Despite that and obviously enhance our operating cash flows.

John M. Moreira: Yeah.

Jeremy Bryan Tonet: Got it. And so maybe just pivoting towards Aquarium here in just a little bit more detail, I guess, on where you guys are in the process right now and how you What do you prioritize here, you know, pace of transaction versus value that you can achieve or just, you know, any other thoughts on the parameters of how you see this process?

Speaker Change: Got it.

John M. Moreira: And so maybe just pivoting towards aquarian here in just a little bit more detail like us on where you guys are in the process right now and how you.

Jeremy Bryan Tonet: What do you prioritize here.

Jeremy Bryan Tonet: The pace of transaction versus value that you can achieve or just any other thoughts on the parameters of how you see this process unfolds.

John M. Moreira: Sure. I would frame it this way. It's not about a mad dash to the finish line. It's about a thoughtful process that we will run for the greatest value that we possibly can offer. So that's what's important to us, obtaining the greatest maximum value we possibly can. So if a transaction takes a bit longer, we are fine with that. The rating agencies are fully aware of the time frame that we've mapped out for them, and obviously, they are comfortable with that.

Speaker Change: Sure I would frame it this way, it's not about in that dash to the finish line.

John M. Moreira: <unk>, a thoughtful process that we will run.

John M. Moreira:

John M. Moreira: For the greatest value that we possibly can harvest. So that's what's important to us is obtained and the greatest maximum value that we possibly can so if its transactions takes a bit longer we are fine with that the rating agencies are fully aware of the timeframe that we've mapped out with them and.

John M. Moreira: Obviously they are comfortable.

John M. Moreira: Comfortable with that.

Jeremy Bryan Tonet: Got it. Thank you for that.

Speaker Change: Got it. Thank you for that and then just to confirm real quick here. The sales proceeds are going to be.

Speaker Change: Helping <unk> in this illustration here just want to make sure.

Jeremy Bryan Tonet: <unk> straight on that.

John M. Moreira: Oh, absolutely, absolutely, because it displaces death.

John M. Moreira: And then just to confirm real quick here, the sales proceeds are going to be helping FFO in this illustration here. Just want to make sure I was straight on that. Oh, absolutely. Absolutely.

Jeremy Bryan Tonet: <unk>, absolutely because it displaced it displaces debt.

Speaker Change: Okay got it I'll leave it there thank you.

John M. Moreira: Got it. I'll leave it there. Thank you.

John M. Moreira: Thank you.

Alyssa: Thank you. The next question comes from the line of Steve Fleishman with Wolf Research. Your line is now open.

John M. Moreira: The next question comes from the line of Steve Fleishman with Wolfe Research. Your line is now open.

Steven Isaac Fleishman: Good morning, Steve. Good morning, Joe. Good morning, John. Good morning.

Steven Isaac Fleishman: Good morning, guys good morning.

Steven Isaac Fleishman: Joe Good morning, John Good morning.

Steven Isaac Fleishman: Good morning so.

Steven Isaac Fleishman: So, just maybe tie up one more question on Aquarion, you mentioned appealing to the Supreme Court. Is there like a timeline? I don't know if you've already filed that or when you would file that? And when would you know if they take the case? We file that.

Steven Isaac Fleishman: Just.

Steven Isaac Fleishman: Maybe tie up one more question on acquiring on the you mentioned an appealing to the Supreme Court.

Steven Isaac Fleishman: Is there like a timeline I don't know if you already filed that or when would you file that and when would you know, let's say take the case.

John M. Moreira: We filed that request in early April, so we feel good that the Supreme Court will take the case and that it will just expedite the whole process. Once the court accepts it, then you're probably looking at a 9 to 12 month process.

Steven Isaac Fleishman: We file that.

Steven Isaac Fleishman: Early April that request so we we.

John M. Moreira: We feel we feel good that the Supreme Court will take take the case.

John M. Moreira: And then it was just to expedite the whole process.

John M. Moreira: Once the court, except set then you're probably looking at nine to 12 month process.

John M. Moreira: This is what we're estimating.

Steven Isaac Fleishman: Okay, but are you not going to hold off the sale process to wait for that to happen, move forward? Thank you.

John M. Moreira: Okay, but youre not going to hold off the sale process to wait for that move forward.

Steven Isaac Fleishman: Forward now or whatnot.

Speaker Change: Yeah, Okay, and then just.

Steven Isaac Fleishman: Yes.

Steven Isaac Fleishman: I was going to say, Steve, in the meantime, you know, we are expecting to implement the original rate change, and we actually accounted for that, for this year. Once we get that, then the company can move forward with the filing for its WICA program. We'll give them much, you know; we should give them about 30. 35% of their annual capital program. Okay, and then just on the Connecticut regulatory environment. I appreciate the decisions being made there. Early in the year, the...

Speaker Change: I was going to say Steve in the meantime, we are expecting to implement the original rate change and we actually accounted for that in the first quarter. This year. Once we get that then the company can move forward with the filing for their Wicca program, which will give them much which will give them above 30.

Steven Isaac Fleishman: 35% of their annual capital.

Steven Isaac Fleishman: Program cost recovery on.

Steven Isaac Fleishman: Okay.

Steven Isaac Fleishman: And then just on the Connecticut regulatory environment I appreciate it.

Steven Isaac Fleishman: Decisions being made there early in the year the.

Steven Isaac Fleishman: There had been talk about the governor maybe kind of expanding the commission and some, you know, some changes there. And is that still being considered at all? And just, you know, I know you've been on an initiative to try to highlight these issues, just do you feel like you're making any progress? responding to the kind of quality of the regulatory environment, being kind of investable.

Speaker Change: There has been talk about the governor maybe kind of expanding the commission and some some changes there is that still being considered at all and just.

Steven Isaac Fleishman: I know you've been on an initiative to try to highlight these issues just for you.

Steven Isaac Fleishman: Do you feel like you're making any progress.

Steven Isaac Fleishman: Resonating on the Colorado.

Steven Isaac Fleishman: 80 of the regulatory environment.

Steven Isaac Fleishman: <unk> been kind of investable.

Joseph R. Nolan: Yeah, you know, Steve, a couple of things. The governor has the ability to appoint five commissioners. He has vacillated over that, and I'm not really sure at this point whether he wants to take it up to five.

Steven Isaac Fleishman: Yes.

Steven Isaac Fleishman: Steve a couple of things the government has the ability to appoint five commissioners.

Joseph R. Nolan: He has.

Joseph R. Nolan: Vacillated over that and I'm not really sure at this point, whether he wants to take it up to five as you know all three commissioners remain in holdover status.

Joseph R. Nolan: As you know, all three commissioners remain in holdover status. And, you know, I'm not really quite sure what the current plan is around that. Obviously, we have grave concerns about the environment there. I think you know that; I think everyone knows that.

Joseph R. Nolan: And.

Joseph R. Nolan: Im not really quite sure.

Joseph R. Nolan: What the current plan is around that obviously, we have we have grave concerns about the environment. There I think you know that I think everyone knows that.

Joseph R. Nolan: You know, we enjoy a very productive working relationship in our other two jurisdictions. We are so aligned that no light shines between some of the state's initiatives and our initiatives. And when you collaborate, I think you have tremendous outcomes. You look at the benefits that Massachusetts is achieving. You look at the progressive moves that are taking place up in New Hampshire as we collaborate with those folks. And they really understand it.

Joseph R. Nolan: We enjoy a very productive working relationship.

Joseph R. Nolan: Our other two jurisdictions, where we are so aligned that Noel white shines between.

Joseph R. Nolan: The state's initiatives in our initiatives and when you collaborate I think you should have tremendous outcomes you look at the benefits that Massachusetts is achieving youll look at the.

Joseph R. Nolan: Progressive moves that are taking place up in new Hampshire, as we collaborate with those folks and they really understand it and it's going to take that type of collaboration as we look to.

Joseph R. Nolan: And it's going to take that type of collaboration as we look to electrify our system and move away from carbon fuels. But if we don't collaborate, it makes it very, very difficult. We've operated this way, you know; in my 40-year history, we've always had strong working relations.

Joseph R. Nolan: To electrify.

Joseph R. Nolan: Our system and move away from carbon fuels, but if we don't collaborate it makes it very very difficult I mean.

Joseph R. Nolan: We've operated this way Mike.

Joseph R. Nolan: <unk> 40 year history, we have always had strong working relations. So it's a disappointment to me and it's a priority for me as we try to focus on Connecticut and to see if we can get.

Joseph R. Nolan: So it's a disappointment to me, and it's a priority to me as we try to focus on Connecticut and see if we can't get aligned and get on the same page so that we can move the agenda. Connecticut has a phenomenal opportunity to be a real leader in clean energy. We built that port down there; we collaborated. That clean energy port down there should put them on the map for clean energy.

Joseph R. Nolan: Get aligned and get on the same page. So that we can move the agenda of Connecticut has a phenomenal opportunity to be really a leader in clean energy, we built at port down there we collaborated that clean energy put down the issue put them on the map for clean energy, but unfortunately, it's it's been a real challenge, but I just wanted to assure.

Joseph R. Nolan: But unfortunately, it's been a real challenge. But I just want to assure you and all of our investors that this is something I take very seriously, and I will continue to work on it seven days a week until such time as we can get some constructive change.

Joseph R. Nolan: Are you in all of our investors that this is something I take very seriously and I will continue to work at it seven days a week.

Joseph R. Nolan: Until such time as we can get some constructive change.

Joseph R. Nolan: I appreciate that and then lastly on the New Hampshire solar opportunity. I know, you know, solar in New England tends to be, you know, a decent amount, CARB. You know, capital costs, just not as much available land, all that stuff. So just any sense of the kind of size and investment opportunity there for New Hampshire solar?

Speaker Change: I appreciate that.

Joseph R. Nolan: And then lastly on.

Joseph R. Nolan: The New Hampshire solar opportunity I know.

Joseph R. Nolan: <unk> solar in new England tends to be.

Joseph R. Nolan: Decent amount.

Joseph R. Nolan: Kind of.

Joseph R. Nolan: Capital cost just just not as much available land all that stuff. So just any sense on kind of size and investment opportunity there for the new Hampshire solar.

Joseph R. Nolan: Yeah, you know, I got to tell you, one of the challenges. First of all, we don't really have a size at this point. We're really in the first inning of this game, but the fact that they are interested in utility-scale solar, I have great confidence, but I will tell you the one thing there's no shortage of in the state of New Hampshire is land. And so that's where I see great opportunity.

Joseph R. Nolan: Yes, I've got to tell you one of the challenges first of all we don't really have a sizing at this point, we're really in the first inning of this game, but the fact that they are interested around utility owned solar.

Joseph R. Nolan: I take great confidence, but I will tell you. The one thing there is no shortage of in the state of New Hampshire is land.

Joseph R. Nolan: And so that's where I see great opportunity.

Joseph R. Nolan: And I also see the proximity to our infrastructure; it makes it very easy as well. You know, one of the challenges that a lot of folks had early in the solar days was that they would want to build, but they'd be in rural areas where there wasn't any load. But we have opportunities in New Hampshire with sizable tracts of land that would allow us to, obviously, collaborate. It has to be a partnership, it has to be a community that's interested in this, but I do see great opportunity up there.

Joseph R. Nolan: And I also see the proximity to our infrastructure. It makes it very easy as well one of the challenges that a lot of folks early in the Soviet days was folks who would want to build but it would be in rural areas, where there wasn't any load, but we have opportunities in new Hampshire with sizable tracts of land that would allow us to obviously collaborate just to be a pod.

Joseph R. Nolan: To ship it has to be a community thats interested in this but I do see great opportunity up there. So we're really in the first thing I think we'll be able to update you.

Joseph R. Nolan: So we're really in the first inning. I think we'll be able to update you, you know, probably on the second and third quarter calls about how that's going. But I think the most important thing for us is to get a model in place in New Hampshire for utility-owned solar that is fair for us and is fair for the customers.

Joseph R. Nolan: Probably on the second third or third.

Joseph R. Nolan: Quarter calls around how that's going but I think the most important thing for us is to get a model in place in New Hampshire for utility owned solar that is clear for us.

Joseph R. Nolan: It is clear for the customers.

Steven Isaac Fleishman: Okay, great. Thank you very much.

Speaker Change: Okay, great. Thank you very much.

Speaker Change: Thank you Steve.

Alyssa: Thank you. The next question comes from the line of Andrew Weisel with Scotiabank. Your line is now open.

Steven Isaac Fleishman: Yeah.

Steven Isaac Fleishman: Next question comes from the line of Andrew Weisel with Scotiabank. Your line is now open good morning, Andrew.

Andrew Marc Weisel: Good morning. Hi, good morning, guys.

Andrew Marc Weisel: Hi, good morning, guys.

Andrew Marc Weisel: In Connecticut, another question here. I agree that state policies and the regulatory environment are not aligned. So I understand you're reluctant to put capital to work. My question is, what exactly is it that you're looking for? What would it take to get you more comfortable with the regulatory setup? Is it a qualitative, good faith kind of conversation? Or are you looking for something more explicit, like prior approvals for spending on AMI and EVs? Yeah, well,

Andrew Marc Weisel: In Connecticut. Another question here I agree the state policy and regulatory environment are not aligned so I understand your reluctance to put capital to work.

Andrew Marc Weisel: Question is what exactly is it that youre looking for what would it take to get you more comfortable with the regulatory setup is it qualitative good faith kind of conversation.

Andrew Marc Weisel: For something more explicit like pre approvals for spending on Ami in Evs.

Joseph R. Nolan: We're looking for pre-approval, we're looking for regulatory recovery, a roadmap for the recovery of our dollars that we've spent. As you know, the RAM filing that we just got approved there for 800 million dollars, that was money we spent on behalf of the customers in Connecticut. These were state-mandated requests that we did, and so we expect to get paid for that. And if the state wants to have AMI, we expect to have an orderly recovery process for our investments, just like we have in Massachusetts.

Andrew Marc Weisel: Yeah, well, we're looking for preapproval working for our regulatory recovery.

Joseph R. Nolan: Our roadmap for the recovery of our dollars that we've spent.

Joseph R. Nolan: No.

Joseph R. Nolan: <unk>.

Joseph R. Nolan: The ramp filing that we just got approved via for 800 plus million.

Joseph R. Nolan: That was money we spent on behalf of the.

Joseph R. Nolan: Customers in Connecticut. These were state mandated.

Joseph R. Nolan: Request that we did and so we expect to get paid for that and if the state wants to have Ami, we expect to have a orderly recovery process for our investments just like we have in Massachusetts, and that's how we're looking for that if we spend dollars. We wanted to we're going to get the dollars back we don't want to be chasing those dollars, we don't want to have uncertainty around it.

Joseph R. Nolan: And that's all we're looking for, that if we spend dollars, we want to know we're going to get the dollars back. We don't want to be chasing those dollars; we don't want to have uncertainty around it. And I know that everybody on this call doesn't want uncertainty, and so you can have my assurance that we will not spend money until such time as we have a constructive regulatory environment that allows us to get fair treatment in the recovery of our dollars that we've spent on behalf of the customers in Connecticut to bring better service.

Joseph R. Nolan: I know I know that everybody on this call doesn't one uncertainty and so you could have my assurance that we will not spend dollars until such time as we have a constructive regulatory environment that allows us to get fair treatment in the recovery of $1 that we've spent on behalf of the customers in Connecticut to bring better service.

Joseph R. Nolan: Yeah.

Andrew Marc Weisel: Okay, is that something you think could be done in the regulatory arena, or would that require legislation?

Joseph R. Nolan: Okay is that something you think could be done in the regulatory arena or would that require legislation.

Joseph R. Nolan: No, I think we can do it in the regulatory arena. I mean, we're aligned with the governor, we're aligned with his other agencies, so we can have a collaborative effort where we submit a filing; we're all on the same page. Even the Attorney General. We have very, very strong relations there. But we just have to get PURE aligned with all of the other interests around the state so that we can get a constructive roadmap to move forward.

Speaker Change: No I think we could do with the regulatory arena certainly I mean, we are aligned with the governor were aligned with.

Joseph R. Nolan: With this other agencies. So we can have a collaborative effort that we submit a filing for all on the same page even the attorney General we have we are very very strong relationship there, but we just have to get a pure aligned with all of the other interest around the state. So that we can get a constructive roadmap to move forward.

Andrew Marc Weisel: All right, sounds good. Then on FFO to debt, if I could elaborate, I know it's been asked a few times, and I appreciate the details on page nine. Maybe this is a silly question, but if the 600 million from under-recoveries adds 2%, you triple that to $1.8 billion. How come the impact of FFO2DED goes up by, you know, double or less? Well, dumb guy math might suggest it would be a three-to-one ratio in the dollars and the percentages. So what are the offsets there? Well,

Speaker Change: Alright sounds good.

Speaker Change: <unk>, if I could elaborate I know, it's been asked a few times and I. Appreciate the details on page nine maybe this is a.

Andrew Marc Weisel: Silly question, but if the $6 million from under recoveries at 2%.

Andrew Marc Weisel: You Triple that $2 8 billion, how come the impact of <unk> to debt goes up.

Andrew Marc Weisel: Doubled or less dumb guy math might suggest it would be a three to one ratio and the dollars and the percentages. So what are the offsets there.

John M. Moreira: Well, keep in mind that in that 300 to 400 basis point movement, it does include other cash flow items that we have not quantified in that $1.8 billion, Andrew. And then additionally, when the cash comes in, it's going to impact both the numerator and the denominator accordingly, so it's not a one-for-one.

Andrew Marc Weisel: Well.

Andrew Marc Weisel: Keep in mind that in that three the 300 to 400 basis point movement. It does include other cash flow items that we have not quantified in that $1 8 billion, Andrew and then additionally, when the cash comes in it's going to impact both of them.

John M. Moreira: The numerator and denominator accordingly, so it's not a one for one.

Andrew Marc Weisel: Okay, thank you very much.

Speaker Change: Okay. Thank you very much.

John M. Moreira: Problem.

Alyssa: Thank you. The next question comes from the line of Anthony Crowdell, excuse me, with Mizuho.

Speaker Change: Thank you.

Speaker Change: Next question comes from the line of Anthony crowd crowd Dolls Disney with Mizuho. Your line is now open.

Anthony Christopher Crowdell: Good morning, Anthony. Good morning, Joe. Good morning, John. How's it going? Congratulations on your Celtics win last night. Maybe some positive news for the sport.

Anthony Christopher Crowdell: Good morning, Good morning, Joe Good morning, Josh.

Anthony Christopher Crowdell: How's it going congrats on your Celtics Lastly, maybe some positive news today.

Anthony Christopher Crowdell: Thank you. Maybe the Bruins tonight. Maybe the Bruins tonight, and maybe not.

Speaker Change: Hey, Bill.

Anthony Christopher Crowdell: Maybe the Bruins Tonight.

Anthony Christopher Crowdell: And maybe not just quickly on slide 12.

Joseph R. Nolan: Just quickly on slide 12. On slide 12, you had issued some parent debt already for the year. Do I think that's for the maturities at the bottom of this slide or the maturities you may also refinance, and that's going to be incremental debt? And let me know if that's not clear. No, you're thinking about it correctly. So, um, so. For the maturities listed on that slide, we do have $900 million that's due on June 27.

Anthony Christopher Crowdell: Hum.

Joseph R. Nolan: On slide 12.

Joseph R. Nolan: <unk> had some parent debt already in the for the year do I think thats good thats for the maturities at the bottom of this slide or the maturities you may also refinanced some of that's going to be incremental debt.

Joseph R. Nolan: Let me know if that's all right.

Joseph R. Nolan: No you are thinking about it correctly so.

Joseph R. Nolan: It's for the maturities listed on that slide we do have $900 million Thats due on June 27th.

Joseph R. Nolan: And then we have another $450 million in the fall also in January early January we have another 350 $300 million coming due.

Joseph R. Nolan: For more information, visit www.eversource.org. $300 million coming. So it's more of the pre-funded. So with the proceeds from the transactions that I highlighted, we should be out of the debt and capital markets for quite some time. Great. And then, just to stay on the mark with Connecticut questions, I know sometimes when utilities, you know, ramp up CapEx, or they're maybe doing some new projects, they talk to policymakers, and they

Joseph R. Nolan: So it's more of the pre funding so with the with the proceeds from the transactions that I highlighted.

Joseph R. Nolan: We should be out of the debt capital markets for quite some time.

Joseph R. Nolan: Great and then just to stay on.

Joseph R. Nolan: On the Mark with Connecticut questions.

Joseph R. Nolan: I know, sometimes when utilities.

Joseph R. Nolan: Ramp up capex or there may be doing some.

Joseph R. Nolan: New projects they talks of policymakers some regulators prior to it and get a feel of just hey.

Joseph R. Nolan: The policymakers are onboard with this increased capital that Theyre spending I'm curious if something happens in Connecticut, where you had some discussions on actually the lowering of Capex.

Joseph R. Nolan: Oh yeah, we've had discussions about our investments. I mean, we started talking about AMI three years ago, and we were all on the same page that everybody wanted AMI. We talked about investment in EVs, electric vehicles, and infrastructure. So, we were totally aligned with key leaders down there.

Joseph R. Nolan: Oh, Yeah, we've had discussions about our investments I mean, we started talking about Ams three years ago and we're all on the same page. It everybody wanted to Ami, we talked about investment in EV electric vehicles infrastructure. So we were totally aligned with.

Joseph R. Nolan: So, and we continue to have that dialogue. And right now, we have a dialogue where we share with them that, you know, we can't, you know, we can't keep moving forward unless we get the certainty around it. I mean, you know, costs have increased since the time we began talking about AMI. If we had got on with the show, you know, that would have saved our customers money. But this delay doesn't help, Mattis. You know, we're kicking it off here in Massachusetts. We're going to be putting in AMI meters and infrastructure, and, you know, customers are going to benefit from that.

Joseph R. Nolan: Certainly key leaders down there so.

Joseph R. Nolan: We continue to have that dialogue and right now we have dialogue, where we share with them that we can't.

Joseph R. Nolan: We can't keep moving forward unless we get the certainty around it.

Joseph R. Nolan: Costs have increased since since the time, we began talking about EMI, if we'd get on with the show.

Joseph R. Nolan: That would have saved our customers money, but this delay doesn't help matters.

Joseph R. Nolan: Kicking it off here in Massachusetts, we're going to be putting in the ami meters in infrastructure.

Joseph R. Nolan: The customers are going to benefit from that.

Anthony Christopher Crowdell: Great. Thanks for taking my questions and have a good quarter.

Speaker Change: Great. Thanks for taking my questions and good quarter.

Speaker Change: Thank you thanks.

Alyssa: Thank you. The next question comes from the line of Durgesh Chopra with Evercore. Your line is now open.

Speaker Change: Thank you.

Anthony Christopher Crowdell: The next question comes from the line of Greg <unk> Chopra with Evercore. Your line is now open.

Durgesh Chopra: Good morning, guys.

Durgesh Chopra: Hey, Durgesh. Hey, good morning, Joe. Hey, John, morning.

Durgesh Chopra: Hey, guys, Hey, good morning, Joe Hey, John Good morning, Thanks for giving your time.

Durgesh Chopra: Thanks for giving me time. Hey, John, just for investors and us trying to think about the implications, if you don't move forward with the Aquarian water sale, can you just help clarify what that does to the equity? Could the equity, if you don't move forward with the sale, could the equity be higher than $1.3 billion, or is that the max? And then if you do do a sale, does that number move lower?

Durgesh Chopra: Hey, John.

Durgesh Chopra: For investors and us trying to think about the implications. If you don't move forward with the aquarium water sale can.

Durgesh Chopra: Can you just help clarify what does that do to the equity could be equity. If you don't move forward with the sale could equity be higher than $1 3 billion or is that the Max and then if you do do a sale that number moves lower.

John M. Moreira: Well, there's still a lot of things in flux, and I'm not, we're not moving off of the 1.3 billion equity needs until we have more clarity. So, as things evolve over the coming year, but right now, our position is to, you know, kind of work preparing the potential sale for Aquarion and get through phase one and see how that, see what that looks like.

John: Well, there's still a lot of things in flux and I'm not we're not moving off of the $1 3 billion equity needs until we have more clarity so as things evolve over the coming.

John M. Moreira: Year, but right now our position is too.

John M. Moreira: Work preparing.

John M. Moreira: The the potential sale for aquarium and get through phase, one and see how that see what that looks like.

Durgesh Chopra: understood. And then just to be clear on the FFO to debt, I know a lot of questions have been asked, you get to that 14 to 50% by 2025. With or without the aquarium tail, am I thinking about it the right way?

Speaker Change: Understood and then just to be clear on the F. A photo that I know a lot of questions have been asked you get to that 14% to 15% by 2025.

Durgesh Chopra: With or without the aquarium sale am I thinking about it the right way.

John M. Moreira: No, no, if you look at the left-hand side of that slide on the bottom, we have other drivers. Those other drivers are cash inflows that we have not quantified. But Yeah, yeah, yeah, no, we have assumed, as I continue to reiterate, in our financing plan, we have assumed the sale of Aquarius.

Speaker Change: No no a few if you look at the <unk>.

Durgesh Chopra: Left hand side of that slide on the bottom we have other drivers.

John M. Moreira: Those other drivers are cash inflows that we have not quantified.

John M. Moreira: But yes.

John M. Moreira: Yes, yes, yes, no we have assumed as I continue to reiterate in our financing plan, but we have assumed the sale of aquarium.

Durgesh Chopra: Perfect. Okay, then just one hopefully quick follow up. Anything to kind of note in terms of the construction process or cost? You know, for Revolution and Sunrise, any updates versus your past disclosures there?

Speaker Change: Perfect. Okay, and then just one hopefully quick follow ups anything to kind of note in terms of the construction process.

Durgesh Chopra: Our costs on.

Durgesh Chopra: One revolution in Sunrise any updates worth of your past disclosures there.

Joseph R. Nolan: Yeah, I know it's too early right now, but we continue to stay close to it, and we'll keep you updated. We did start, though. The good news is we're in the ground, and construction is underway. So we're excited, and we're going to utilize the same practices that we successively deployed in the construction of the South Park project, which, as you all know, all 12 of the turbines are up, and they're running. And we're very, very proud that we are the first offshore wind provider in the United States.

Speaker Change: Yes, no it's too early right now, but we continue to stay close to it and we'll keep you updated.

Joseph R. Nolan: We did start the good news is we're in.

Joseph R. Nolan: In the ground and construction is underway. So we're excited and we're going to utilize the same practices that we successfully deployed in the construction of the sulfide project, which as you. All know all 12 of turbines are up and they're running and we're very very proud that we had the first.

Joseph R. Nolan: Offshore wind provider in the United States.

Joseph R. Nolan: Yes.

Durgesh Chopra: Perfect. I appreciate you taking my questions and giving me time. Thank you again, both.

Speaker Change: Perfect I appreciate you taking my questions and giving me time. Thank you again both.

Durgesh Chopra: Oh.

Speaker Change: Thank you.

Alyssa: Our final question comes from the line of Travis Miller with Morningstar. Your line is now open. Good morning. Morning, Travis.

Durgesh Chopra: Our final question comes from the line of Travis Miller with Morningstar. Your line is now open good morning.

Travis Miller: Good morning, Travis. Good morning, everyone. Yeah, good morning. Thanks for taking my questions. A real quick one staying on CL&P here.

Travis Miller: Morning, Travis everyone. Good morning, Thanks for taking my questions.

John M. Moreira: If you take out your depreciation or maintenance capex, how much of that additional capex is covered under an existing rider or tracker or something like that outside of a base rate? You mentioned energy efficiency. Is there other capex?

Travis Miller: Real quick one just staying on <unk> here, if you take out your depreciation or maintenance capex, how much of that additional capex is covered under an existing rider or tracker or something like that outside of a base rate and you mentioned that energy efficiency is there other capex.

John M. Moreira: Yeah.

Travis Miller: The biggest CapEx is the $300 million system hardening that we've had in place for quite some time. So that has helped with timely cost recovery, and it's helped Connecticut get to a much better situation from a reliability standpoint. So I would say that a good chunk of the, as you pointed out, the maintenance depreciation would be covered by that.

John M. Moreira: The biggest capex is the $300 million.

Travis Miller: System hardening that we've had in place for quite some time so that has helped.

Travis Miller: The.

Travis Miller: Timely cost recovery and has helped Connecticut get to a much better situation from a reliability standpoint, so I would say that a good chunk of the as you pointed out the maintenance depreciation would be covered by that.

Joseph R. Nolan: Okay, okay. And then I got a real quick follow-up on some of the other questions. Do you expect the clean energy policy overall—not necessarily just the rate setting but clean energy policy overall in Connecticut will be a political issue this year? Or is that something for years down the road?

Speaker Change: Okay. Okay.

Speaker Change: And then got a real quick follow on on some of the other questions do you expect the clean energy policy overall, it's not.

Joseph R. Nolan: Necessarily just the rate setting, but clean energy policy overall, and Connecticut will be a political issue.

Joseph R. Nolan: This year or is that something for <unk>.

Joseph R. Nolan: Gears down the road.

Travis Miller: Yeah, no. I mean, the legislative session is going to end next week, so I don't expect that you could see anything at that point. But I think the dialogue will continue, as we'll remain engaged for the rest of this year and the future until such time as we are all on the same page and we can find out what's important to this state that we can invest in and get a fair return and really a level playing field. That's all we're looking for. Okay.

Speaker Change: Yes, no I mean, the legislative session is going to end.

Travis Miller: Next week, so I don't expect that.

Travis Miller: You could see anything at that point, but I think the dialogue will continue as we will remain engaged.

Travis Miller: For the rest of this year and the future until such time as we are all on the same page and we can find out what's important to this state that we can invest in and get a fair return and really a level playing field. That's all we're looking for.

Travis Miller: Okay, perfect.

Speaker Change: Okay perfect. Thanks, so much for the time, great great Travis.

Travis Miller: Yeah.

Joseph R. Nolan: Thank you. I want to thank everybody. Good question.

Speaker Change: Thank you what I think everybody. That's the question I want to thank.

Matt Fallon: Sorry, Alyssa, I just want to thank everybody for their time, and please follow up with IR with any additional follow-up questions that we can help out with, and I'll turn it back over to Alyssa. Thank you. This will conclude today's conference call. Thank you all for your participation. You may now disconnect your lines.

Speaker Change: Sorry, Lisa I just wanted to thank everybody for their time and please follow up with the.

Matt Fallon: IR with any additional follow up questions that we can help out with and I'll turn it back over to Elisa.

Alyssa: Thank you. This will conclude today's conference call. Thank you all for your participation you may now disconnect your lines.

Matt Fallon: Yeah.

Matt Fallon: