Eversource Energy (ES) 5 Nov 242024 Q3 Earnings call transcript

Good morning, and thank you for attending the Eversource Energy Q3 2024 Earnings Call. My name is Elisa, and I will be your moderator today. [Operator Instructions] It is now my pleasure to pass the call to our host, Rima Hyder, VP of Investor Relations. Please go ahead, Rima.

Good morning, and thank you for joining us. Energy's of Eversource Relations. Hyder, Rima Vice Investor President I'm

that be yesterday During we'll slides we this call, referencing posted website. on our

You X on see can Slide

are no uncertainty, statements. statements to materially actual of from Gap] these are these projections. on update differ expectations [Audio We or and undertake any based results to risk to may which and and forecasts cause obligation the management subject revise

may and cause explanation information they actual and to posted XX-Q. factors about recent Additional results our measures the last most differ our the GAAP of the that non-GAAP within news how various reconcile and night contained slides our results is in release we

President, is now turn Chairman, Vice today and Moreira, Officer; will Chief CFO be Jay President Also [Indiscernible]. I over Executive call Vice John and us joining Buth, Nolan, Speaking Treasurer. will our today our Joe. to President and the Executive Joe our

everyone, on you Rima. thank for Good you, us morning, joining Thank and call. this

year-to-date made today's been on call X. Let in many Slide accomplished as we has on progress with me what priorities our highlighted begin the have

quarter, reached the Infrastructure third Wind Global the in South we revolution in an Fork to with important Partners. sale First, of milestone wind

exited wind business. have development We offshore the

play pure We are now a noted

achieve $XX X on [Audio necessary our XXXX. to distribution These and the billion to safety of billion investments clean objectives states. meet transmission Gap] $X progress in infrastructure of and over reliability are electric energy of investments through increasing maintain

and have we our that recognize do strengthen balance we to improve Third, to our credit position. work sheet

wind the progress issuances. cost through sales good equity our our ratio offshore timely in our have to proceeds towards FFO improving investments made from debt of recovery, We

on our to is strength safe, continue providing you energy enabling reliable continue service toward our customers to As journey clean the to future. expect, critical and the financial

sale X% that cost recovery focus work confident for to the rate further maintain Aquarion, forecast XXXX. we Additionally, key financing costs advance long-term Fourth, to need of enable our flows. forecasted opportunities will cash advance our continued on of X% are with O&M timely plan in the our capital stakeholders growth robust continue and our to we will enhance to drive EPS X-year to through us our

Lastly, leader energy ahead transition opportunities us. of tremendous a with regulated we in clean are

largest Eversource to our state's England, is utility in goals. the clean As energy New positioned meet well mandated

to Slide Turning X.

the Wind working Let New X Recently, the together me energy England's some while Connecticut. New approximately initiatives funding support talk clean clean a states reliability Southeastern secured on. federal about Hub we energy are will of grid with region. we hub the working million in Huntsbrook energy Offshore England transition in for This across $XX clean improving

exciting U.S. our this We level customers Energy to of enhance approximately to our $XX for expand storage grateful the Cape our for to Cod. Cape system We're reliability the battery million the electric battery on received DOE Cod also storage energy area Deportment energy Massachusetts. in for from to take to project opportunity next

to X. Slide Turning

the New with pleased in and connecting needs. goals with England with our as decarbonization region particularly leader clearly are is it We the investment Massachusetts partnership

Massachusetts recently and the The was current in become can believe million Massachusetts Public of plan energy new have model progress ESMP, for an future investments stated customers. which a and we This We with recently Massachusetts. level XXX%, for approved implemented on to Utilities. distribution in by AMI road will for capacity our clean interconnection leader pleased other program a the our is investment recently electric Department billing businesses. And clean deploying period achieving is plan, circuit modernization clean growth delivering electrification unlocks our In infrastructure the we beyond. we begin for meters we us to footprint the analyzed is have as down In successfully state's we very next smart of $XXX system the decision provides it are filed will before, investments finally, investment we the customer forward. a and clean increase making the energy our program, draft by in sector energy right electric Our significant a and state, clean nation. while to energy forecast a is provisions of additional for decision know to move the the map information be on of step the amount that and would year. from ESMP to track, critical within towards and years its transmission draft The our enabling energy PURA needed over stakeholders in decision projects. draft in and for Massachusetts, grid first next challenging over we of the AMI identify Connecticut, in homes we received AMI, ESP, for the thereby the goals comments enable developing X certain expected a to These direction a installation

are final customers. investments a our this that provide decision We will for path to allow to hopeful make important us the clearer

our greater the the underground in largest Slide solutions Massachusetts of has Siting States United to are of Facility with consists the our substation growth its billion to new It this Construction $X.X of on electricity Board. The opportunity Boston underground and all approach to and ground can collaboration and employees. incorporated kV approval progress believe hard-working us Properties. with the feet on for want of project Cambridge not we be innovative in without the underground new first into XX,XXX the we X and growing including This in the further received XXX I to Turning be partnership residential be working substation already below unique X. I needs of consists led $X.X lines capability would will in is Energy projects. possible This a date brand built The another and between region. begin project progressive by with Cambridge, foot first billion example future the the a the most stakeholders, of square from surrounding to XXXX. applied of our to commercial highlight project transmission one key quarter address investment for kind of Cambridge fronts underground close slated is am Massachusetts. pleased low dedication and substation, XXX communities, expansion.

potential. Time in our testament for we to this receive was the the States are companies hard of of a in As you and in in scale on skills, runway uniquely best and low-risk of that utility to provides leverage expertise work, to its industry by us recently a to recognized regulated position work Eversource leader. Thank world, reinforcement the infrastructure EvoSource #X United is energy as earnings the utility invest of as honored for joining an the opportunities call one strong positioned the Magazine long investment growth today.

and many strengthening the forward John the to EEI next of have of look investors. the the last now you We towards our months, to growth, results few sheet. conference our progress we to balance to turn importance will continuing recognize week. I over you our balance value call strengthening made walk sheet financial and and our sustainable at seeing of I through many spoken to return over to

the update Thank our completed the activity. results, quarter impact divestiture you, review third the discuss our In quarter, and earnings of everyone. This the including I and brief third from our wind provides Joe, sale morning, financing wind offshore good regulatory we offshore will morning, a investment.

The in we GIP. result, obligations divestiture $XXX sale in Included with date with aggregate the date loss other majority win, assessment is GIP. the to terms $XXX settle net recognized announced projected with This agreement million Revolution of components operation loss commercial to XXXX. associated a win was the with higher which costs of expected construction reflects an the As under the million. of in-service the once on approximately along of costs its this reaches delay related of estimate previously Revolution to sales and

earnings results segment, PSNH XXXX. offset Electric base Improved earned the in quarter per to by loss electric $X.XX Electric earnings quarter Electric X, Absent per which the last to quarter and transmission share. results offshore quarter down tax of GAAP driven distribution by increases in transmission, per of earnings starting share per results were wind due our property recurring and earnings Slide share compared at at higher third distribution $X.XX with an $X.XX after-tax share share were a third by per share of with $X.XX continued $X.XX earnings to the the after-tax of per were share XXXX. offshore third interest, loss per results compared and GAAP the earnings earnings depreciation primarily infrastructure expenses. the for compared quarterly NSTAR increased of in third with with win quarter $X.XX needs. for $X.XX per recurring divestiture. for loss $X.XX share year. Breaking earnings the the results include Turning of rate were related in investment These on

gas earned natural year. quarter and with companies, parent The higher third in Distribution business with expense share per $X.XX primarily Water share primarily acquisition Our depreciation revenues our share interest a a for other $X.XX expenses. The were investments this compared from that third in expectations. of earnings offset with recurring to line higher last share revenues partially increase share tax $X.XX reflect the wind improved share closed quarter due from by excluding offset lower our earnings loss $X.XX was to expense. with gas by per and Eversource quarter water effective The depreciation in distribution last property natural per earnings $X.XX year. interest a offshore were per results The contributed this year. taxes, in higher the due compared company loss segment per late of higher per last from quarter partially lower XXXX. results $X.XX compared results improved Overall, infrastructure, lost rate, quarter and

to year to XXXX updating guidance $X.X EPS reaffirm our recurring range X% interest We are higher-than-anticipated expense. full to due X% our rate. growth We $X.XX longer-term to of EPS a

Massachusetts. regulatory our on Slide to starting X, Turning with update

a on decision As sector in plan our or electric August modernization Joe mentioned, we ESMP. received

draft between and and November, to of recommendations. I'm filing the workshops Council feedback reminder, January with key utilities their in of clean our future incremental the for increase from this resiliency, million a approach Modernization state Massachusetts investments the XX-day and collaborative with that of stakeholders this of an final to As ESMP Grid Advisory energy $XXX approval held the to ESMP year, enable September we clean in of council incorporated XXXX the interconnect resulted by stakeholder stakeholder in in review. DPU and distribution filed which to energy an advisory report initial the pleased We the resources. followed

approval we for October agreement in filing Massachusetts our a increased Also base result, As billion. XXXX. approximately $XX.X billion is incorporate when infrastructure first late to investment have received settlement base will our our EGMA, end in our that the we acquired base forecast per have a This rate increased as X-year reset rate cap we to capital filing. reset subject of rate to investments $X.X This million of for revenue on change. $XXX the as

cap, revenue this of will in we XXXX. implement $XX revenue and the With this a million $XX year of million application increase

As to XXXX. a X, be is reminder, through November expected reset XXXX, the rate next base covering investments

Hampshire. New to Turning

working next [indiscernible] of half year. 'XX the late cost a final of through We we early our storm are where the million, decision of XXXX review in expect $XXX through first

effective or As be filing, next a and incorporated into June storm parts final the we of determination our case be will rate summer. anticipate reminder, rates final XXXX the will recovery

providing Hampshire general for the took increase part adjust company. customers capital to X-year review, plan, a would have a flows implement cash including $XX As a rates for million mechanism New ratemaking case rate Interim on reflected that rates effect support proposed rate performance-based we Xst, stability of enhanced and August annually. the

Moving to Connecticut.

for continue a approximately of safe XXX,XXX through last week, schedule late expect we AMI investments decision core efficiency we to allow case made file revenue and decision we important provide The million. Connecticut, are projected Joe in capital month. hopeful Yankee operating decision reliable rate our this in cost the exceptions to critical This and rate reflects an will Approval and XXXX keeping since of the investment. written for PURA's for and later recovery investments to us Connecticut. Also systems this will our make undertake the final As mentioned, transparency have request the in a $XXX we costs customers needed in that proceeding. where to Gas XXXX. draft filed [indiscernible], future, calls our recover investments those to

Turning to improvements. our sheet balance

We shown we have major provided our X. that expect debt enhance several FFO drivers to Slide metrics on to as

schedule our benefit public to related July rate a of distribution our in improve effective cash adjustment benefits by the place quarter, of wind flow rate debt recoveries with additional to costs third Connecticut to make we the position to in along XXXX. offshore increases With X, closing our continue progress and and target items tax number FFO and regulatory kick towards rate off sales our

second the enable sale launched acquiring business, the our end the by closing a phase of sale would On XXXX. of have recently process, water which the we of

approximately our to XX.X issued ATM date approximately Regarding of XX. $X issuances, common billion program equity have we and shares raised through through our million October equity

In addition, see EPS through recurring shares and XXXX for and will of plan record will us X.X off a X-year to that financing million back X% have now to proven X% we drive our have of on the our rate summary, are turn we EPS updated $X.XX. I of to track a as confident we of can enable forecasted XXXX Slide stock. In growth call issued based XX, dividend treasury Rima Q&A. our billion earnings you $XX.X and forecast capital growth,

now take are questions, please. we ready to our Elissa,

first [Operator line is Our Pourreza Guggenheim with Instructions] question Partners. from of Shar the

to Joe, really I maybe Millstone. quickly just on wanted start

Just charges. benefits lot of the in public a Connecticut discussion

Are state like $XX. the of the pricing above both for conversations? in the net Is in sounds the these current the it involved positive involved with at you Now sides Massachusetts bulk state's dialogue.

involved tell Well, as to to the relationship a it between only friends. strong Everyone trying there's will Connecticut, X their I extent Energy. those the these constrained I've is parties region I secure the that to working Clean my parties, think Rhode do understand to capacity objectives clean that here. interesting. you of relates it's that for been are we energy X I pot Island, Massachusetts are very given

about So we they're trying to what achieve. talk do

I states [indiscernible] of other to think would participate you have some in government Millstone. the that like

to I have have table. something not thought privy pricing, privy been terms only the everybody trying of bring what I pricing. fact to to that the is to the In been around is

As you megawatts about. Canada, from know, in coming Massachusetts in They Connect Energy has wind. passion Clean which they've X,XXX have

Seabrook the which contract, have asset, have under the also obviously We is and dominion. we

some a to So of have the these New -- what New And governors, that that they in I will get And is we a decision I very, those mature, solution available to the very comfort all take a well. that of are very are carbon-free along governments they I'm great England. the for is tools a am beneficial all in come England. very confident all or that customers fact

And contingency with Got [indiscernible] construction it. morning Perfect. then mean, on million. just this impairment for took market prices your are guess, what evolution, fund think, here obligations included Is agreement? lastly, Joe, $XXX I and I I you wind another your net impairment offshore under under increase? loss the cost morning's another contingency costs agreement, to GIP going this the GIP in the Orsted are for

Shar, I'll John. it to over turn

It's John.

if did [indiscernible] have that we change. quarter, $XXX highlighted We this issue intent the million, for was morning. were And a exclude commentary aware monopile to you in a rev that know, of you on tune take gain loss into the in Sunrise. this of our factored we sizable concern very As charge, the

to We exposure. including very work to to progress they will closely will and the continue the GIP with continue Orsted this that to monitor mitigate make parties,

Got Okay. it.

charge everything as So no your in incrementals or of now? right is just embedded

now. of As

Goldman with Sachs. of question Davenport is the Carly next from line The

just Maybe financing to the start side. on

so in on the of some Messaging to several far you've done now side over of looking beyond about the the 'XX guess, I you You've on the cadence in can for color sort now context next of billion year. XXXX? into provide done $X billion equity just equity the what $X.X up years. been and has

all improvement. Sure. question me answering start in balance our It's by the this really fashion. Carly, about let sheet

testament We that we are focused our sheet did I balance we how fact improving on issue that. And position. a $X the think is are passionate billion about to

within call, which is We will we as fourth months quarter continue to update obviously, away. the literally in you progress,

plan, We refresh the align needs with forecast, financing our it plan over our disseminate revised period. our that give capital will and forecast you equity

a months. with more patient of have us. in be information couple we'll So

debt that to of to tuned here. appreciate into known at to debt far numbers? of little still then just on TBD those Great. stay FFO enhancements the update cash bit those on enhancements look And moving We'll of you versus how give we Could sale when a the a X% the Aquarion to FFO with from that's I higher a benefit us walk. the follow-up the sort X% kind there. of known built can flow maybe get enhancements you having sense

major to aligned be that slide one something and improvement. drivers TBD to the the enhancements of for to adjustments to the highlighted The couple say I measurable. remarks. XX November of have items, continues well unknown approve happen I all from million rates X% Carly, purpose second the as just were in we are highlight would adjustments a of again this months was that X% going rate except my DPU which once that in to we into the that $XX that's formal of EGMA, the ago, was the this with process mess days -- mentioned now. in that Xst rate went a

items are we and all also That's both highlighted wind So the known. those on offshore equity. obviously, have known. transactions, closed And we of

most So pending sale. still I say of and is loaded. them one would on are Aquarion drivers, key the these major The that's locked

The from Campanella line question the is Nick of Barclays. next with

up to XXX%, And like the I or now? on that you on agreement the are of follow wind just Can there? is now I GIP. kind there you changed. have just revolution Just had sharing confirm look around what's more still And kind taking go on you question with costs level of costs. recall some wanted Shar's XX-XX obviously, that offshore to the of

Nick. Sure,

have you where any exposure by further that we XX% XX% be We share Eversource would point that are cap, reached Orsted. are at and at so by correct,

X, on kind then confirm, just actuals. And helpful. off to of wanted X rebase to of kind that's typically Okay, of prior I the you year

kind the into take kind of as And upside Or to of the we that. then X proceeds? guide quarter include X the does this that off that? is rebate to how of is would get should So that we the fiscal fourth plan we so And about that 'XX plan? new Aquarion think and

was our Aquarion of let that Nick. start component plan. key me Well, Sure, the saying by a financing

So in It FFO of slide. now, is part as highlighted from year. We we assume done debt forward there. that's assumption, no the years, you in what have that well Right financing have is to rebase to and over a we many, many that we move to can deviate that, our plan. decade, reason each for

next of Durgesh is Evercore. the The line from question with Chopra

a questions. the that of would investment, station or incorporated clarification is plan, Cambridge Just One, be couple current that incremental? the that underground X-year is in

plan. X-year the in incorporated been has That No.

So as and plan. of happen 'XX, that will the the a but think current of phase of will spending on lot bulk a spend between 'XX, but of in-service period the X-year is 'XX, our 'XX over, the happen phase-in it

Okay.

How it's QX the funding an the the give the update guess. us I plan, about you'll that's in of So call, guess, clear. -- I higher you $XXX million CapEx, on

me maybe front So just run but let now that, then...

Exactly.

Understood. Yes. Yes. Okay.

Okay.

this your to be filing I can strategy the data and you in talk sort to given to state? the So in Will mean you've sort just rate as for you then do points seen you Gas just the some expect? back how there? in of the half PBR you've decisions states? risk Yankee What like the maybe of other a view framework here just of of maybe a ROEs you month, the -- done case file

us construct that's would PBR. that for a I Massachusetts. you introducing very we are tell rate from We stability worked like Sure, that in sure. well

We Hampshire. have New recently introduced in PBR

through So we way see that to would the like its play Connecticut.

customers. Yankee for are a say the we continue how proposing Yankee I We gas a to been Yankee and organization. has Connecticut as quite are Gas time. we we to construct viewed, make well-run and would reliable that of very safe is provide So service it's to needed terms investments some that earning view, feel appropriate. under in

flows to would needed make very company, to in flow these order investments. continue cash are to the important cash we and for So to the like enhance position Yankee

we Of are course, our practical in plan.

plan will We outcomes. constructive very to hope for

line the The next Bill UBS. question Appicelli is of from with

upon docket. in just AMI you expand comments Connecticut Can decision maybe the the around draft

mentioned like expand maybe Can just that you'd that to like more to see modified. conditions You upon see a outcome? to acceptable some you'd make you what

Sure.

important One big costs make legal our for as in to of the [indiscernible] decision. and elements recovery And investment. well we we significant is standards investment. it for have investments, aspects get clear in not sound us the things certain comfortable there that important a a we regulatory need as decision, I that decision our only received, was the expend a path of to It's Connecticut is as around program that any It's willing we're are the an but that that before AMI of capital certain improvement, of to for decision Connecticut. think

as of -- So commented, the a a our docket. it's our money just clear we can on certainty comprehensive customers money on up -- that of when in obviously, that we devils sound in the invest that But behalf get are so we details. the order our recovery is that the lot the have well as we of dollars it's obviously, regulatory There's back. we wind take very legal principles comfort that and spend will contained

Okay.

is not? I the or to so it then to do or investment some potential program it of would final make the down, decision how would And have or to the -- do sort decision? of mean, work a you scale after up you

the tremendous of several which I were know, always I in billing system business billing a awards mean, in it smoothly forward. years. point success for been a Well, to for I implementation. we'd -- got in that very we as here to elements put as system, it, thought a because, to in Massachusetts gone know, a we've SAS I've very, mean, would I has badly. just won XX But you mean, SAP, have put that make -- the never decision couple move I this system and ends billing we you

that very, something with and system, you So would will But can I the a piecemeal. an there AMI changed to invest. need out Obviously, But would billing be very that that. implementation. be thing do first not we am the we is pleased

to really You're have will the jump whether to AMI investment, The grid, allowing to -- in make to spending you to vehicle, either AMI as needed. I [indiscernible] enable is in and to a that distributed to if are certainty how money, going is you're want such clean the or going until get it's customers you enable of you to future. the tell that generation, that. really regulatory those time they're solar wait But for the you their AMI want to some very, important. very panels, that answer critical grid. their understand opportunities things folks around interconnect want energy

piecemeal any all don't see I it's or of kind nothing. there So

that timing on then interest just just part the debt or the higher issued? more rates more expense, second or was that higher And related Okay. is -- being being

the in a wind, need with I our more did well, because we would of offshore debt obviously, offering. to say, bit aggressive be delay

debt combination and rates volume, of outstanding. a it's higher So

The with is Jeremy line of JPMorgan. the question next from Tonet

as what other far you achieved sales appreciate just limitations level to want juncture. guess, this other tracking there's any of I can little value And be I color at how But if about, you dive the interest to could could high-level timing Just versus provide say think a into more, comments that versus Aquarion you would of process execution is here? expectations? great. guess, I Just as, how any bit

step. process. a of it's in a asset, Sure. interest significant This received asset attention, first completed We the the X-step lot

] going the our to very expectations. we're that We with. expect we have good -- process biolist that And is very, we announcement on we quarter, months, do We deal is are confident about in winner transaction in Connecticut, first then statutory will down very interest the feel and to of we in exceeded X -- the And The quarter, the by will that we'll [ feel close a of XXXX. an that. the first there this process.

And bit was of That's equity that, to if wanted just on just issued missed I to maybe forward more. little trait Can make sure Great. just the helpful touch it. Got for it on you equity was wanted very that. a it there. any remind the sale apologies or us,

not No. issuances on put forward. Those -- were a the equity

is the door. the So cash in

is from the next Fowler America. Ross with line of of The question Bank

couple questions a regulation. at on of going just me So of for sort looking forward

You've of talked shift got deficiency or estimate you that and and kind you Have the sort layer for Yankee how moving feel here an a the would have over about of -- initial rates that PBR customer time? to PBR. into

the create we that like customers. one of nice Well, stability reasons our rate it does for PBR, a

annual adjustments at an these have You inflationary plus performance additional for the utility.

it the led PBR proceeding. rate general -- would like annual from really a we that mitigate fact, volatility having be So think in adjustment, in that an aspect does, of I rate And it. that that

very having practical can we not achieve that we that into So of us. and much We're targets those afraid PBR. performance like reasonable tied are for

proceeding. forward are So culture, a that look and performance-based we we to

state. kind just setup. about do thinking you Massachusetts. gauge in what regulatory that, is trying pressure process are us some the maybe as And color also the capital and think some have of some How got as to well, John, the full there of of got there you in we about things. you've side contextualize but on, do already statements there maybe opportunity? upside in that point, which of some bill terms give do you on forward electrification. that, that continue from that started other PBR I'm the there's but One, policy transition how Massachusetts pushing We've on seen the guys some probably just How You that you've coming but like X

Sure.

the Joe one are deployed adapt that's as lot with of balance was very And lot I'm think that the that that's broader for something is electrification. mentioned, utilities a and We ESMP, that a needs was very I to think a other feel perspective. that we the parties model there There that collaboration investment that's has referring great Massachusetts very the balanced. to, all of involved, -- we model supportive. a could mechanism to to achieve stakeholder on

when that were ESMP that. So what filed with filing. happened The exactly had know that file before stakeholders support we key -- of the DPU DPU. They we by knew

So more the if process utility the standpoint, of rate-making from and it a kind bit will. makes a you regulatory straightforward,

wave are wanted look are years implementing beyond. years spend, we in that. XX of the -- look period, supportive is that happen What beyond first X that to Massachusetts in it of at going what think and very as So of now first we that what's to the X,

we think very supportive collaborative it. it's a process, of much So and very we're

The question is the from Fleishman Research. line with Steve next Wolfe of

on to the or costs wanted vessel impairment. their the close it mentioned higher revolution, is Just also [indiscernible]

clarify Just also wanted when you sale. was your that, to closed updated that

rectified, were that time behind Yes, we the change. issue aware those we have at the of And issues we been and did the has when vessel that us.

So the development we we to Steve. progress, as monitoring just need project keep

is it the question. coming maybe a that the I little but down big of year? that's just or just for some other guidance Is a couple earlier plan, this year, equity this, say deal. this issuance simple missed the that then -- in And just range not to is midpoint fair a Okay. sure the driver not I'm pennies, there

interest as to Fed had in We more No, was a -- bit further for exact the the much be It hoping were I on came that the we right what was of actions issuance equity assumption to say plan. that later. sooner in year, and pretty plan anticipated. would the really taken the we

related. interest So it's really

of next with Travis question line the The Miller is Morningstar. from

it whole and clean linking with the on higher idea. Just a level, more kind little of the energy ESMP

you be to to it I that you basis, go program, that far in more there Just to it in to this of how of terms way to be energy $XXX if to does be, to is much another where were either makes And is get kind how want where sense. you? kind electrification. get you a get about think of you put If percentage to or the need want million you clean guess where to

going. know I No, Yes. you're where exactly

it's program, Prior to implemented, that southeastern -- investment and DPU X not you to kind that We already part of interconnection that But approved, solar of being same the we to Massachusetts. the filed I clean the another we that's the of had primarily the once had point. program of throughout And for, the it previously starting the was needs, in it's think the remind C-I-P. refer energy again, that I CIP that predominantly it's as program resources, ESMP ESMP. clusters in Massachusetts. the Massachusetts, state just want

investments and has So was approximately that $X with of and combination we the T program a of approved X X, of that individual the clusters, billion X D DPU make. would

X-year was that the will, of So kind was wave, you if our and into plan. baked that first

the is is second way, come. there ESMP but So to more

Okay.

Beyond the ESMP, Okay.

Correct.

electric, that now sitting that the you've at are side. public other there forthright might to or sidelines on treatment are on electric Gas And certainly -- gas now, positive there. pretty right larger until and or invest better about than been if you even AMI, Connecticut, were you larger projects Okay. what the there a then the or Yankee want types the fact don't either projects regulatory get the come gas that of

income. see to when like of relates absolutely getting investments, say, the net whether to O&M and is pathway about other those we would or needs door mindful have we It's mechanism investments very that those about I move but for as about as cash pay to capital. that to It's state revenues. to align the It's extent they're investment in to make recovery the in not opportunities, the of Connecticut. AMI all the that not one forward, obviously, be the to would we So obviously, it the

any critical as for us is operate. utility would that So

reliable a really invest customers. be with to and cash that to we And bit It's timely. continue Connecticut can work down coming flow need able more really in safe. road to You to make need benefits for the to just investments doesn't net the the system to accomplish be collaboratively the Kicking shortsighted. necessary

question Jefferies. of next is Dumoulin-Smith the from The with line Julien

know bit So how that there FFO but will? I of sense of with know stand were track debt. listed are your you towards give to you a us you talking follow kind items doing you items a just year-to-date of here. the as are, against I up of where out Carly little of earlier just improvement. if sense what cleanup target, you wanted as you couple that on about Can you to

from significantly increased It's in where 'XX. were we

making been have we improvements. So

to I -- not prefer would leave Just go Julien. [Indiscernible],

Yes.

Okay. I item. then And a got separately, you there. little of bit cleanup a

Is elevated of a will, into the run parent exiting run of or like expense kind Can us of as here. kind bit kind even about if rate here starting You've way or magnitude nets little you're talked gross thinking what kind to think positive sense of this 'XX gross about quarter of there just that rate? the is give this year-end any point, at if that you against a it. us there you interest about a give you

Just that so again? question can I'm repeat you clear,

Yes.

if you? us expense. like a this or run You at interest can have sense what quarter end talked about you entering or of gross that you elevated parent what rate point, Maybe give 'XX is will, whether

from issuance the If cash debt that. you didn't look predominantly equity, calculate quarter of equity. the We we in But the the parent and equity half, issued the the the year, bulk We that the out the remember, the in didn't were get second first get that was until flow. we it wind third get cash of issuing equity didn't We at you can half okay? the there proceeds. at has,

create has and did it in the having debt enhance to So the offset Obviously, that drag. the interest. gone some billion door, $X a

and how there. Awesome. And ask cost Yes there? of Just little provisions interesting just there, new a Any us kudos bit absolutely. about think you do development the on the a larger I'd figure -- recovery that like quickly give front. size substation, on mechanisms

public Again, so several and that, [indiscernible] at estimates We've is feel about as utilities regulated, that pricing. solid been working asset this Massachusetts transmission gives on FERC on for of the good They're on line We've predominantly a well. we got Yes. sight. it. transmission, the and us and clear estimates of years terms in

$X we in of any lag of there. the so over of terms anticipate And that recovery expenditure don't even

question Andrew next from Weisel line the is Scotiabank. with of The

is you for have question investment. on tax for South the equity First I

My benefit do still is that spill the You're full you $XXX to given flow still in of in losses into expect 'XX, question cash that though some year-end the up timing by some show -- and the later? write-downs, XXXX walk. showing of the the of or might or

is the why. Andrew, think number, for we happen found left want ITC that we've beyond $XXX explain tax then haven't prior that lack benefits I spill bucket. utilize me not we will that that the that, actually let 'XX, into and reason to the And million, other to that into

fortunate tax been to have that into credits tipping we other So utilize bucket. before to

will we So be other but million, that although with a that attributes. there out, replaced XXX tax shift

Got it. Okay.

So will other replaced the -- they'll be be with dollars dollars.

So to years will able be right? in that -- the words, be mess it you'll still use those works, later in other credits is

correct. Correct, call. the the fourth an that's you give we'll of items And one on that update quarter

Great. of parts. the there's Okay. a part, there, $X.XX appreciate look always quarter. still moving line XX%. That's broadly that of from is obviously, up The a billion at even I punch line quite $X.X now showing walk. because there's more When lot billion. last bit Then on a well, moving That's though to I helpful. XX% bottom you're the lot details,

maybe of Or the though? versus that more how higher end? end confident that trend getting more -- you're in that? better is does range? visibility in more you do You just mean Or to it thinking Are you that low

say says TBD, We cases. item would quantify. needs, the acquiring it as that I sale didn't equity on an that and had we Well, rate

the So range. that and included in equity of say we've items, still increases. $X we're XX% and XX% I known billion the rate But more such just as would that needs measurable to

high helpful. in Connecticut. one, Then level last Okay. That's very

states? a And how update a putting states, obviously, but in about other I'm is to about you more a the AMI. patient, And constructive for there Connecticut in putting broadly, know capital of we when qualitatively have You think should other I see work My we not from maybe a it's to only tough Connecticut did we capital you lot versus not away when affordability. in concern numbers. talked months? work months of potential like terms X about more CapEx capital a do more looking what in you but approvals, move the to to environment, lot ago? question is think few versus there's be there expect about

New [indiscernible] that of But the a recovery and will it. million Massachusetts, they opportunities we redeploy costs. comfort That's of out decide significant amount will million. ago, legal give for to monitor tell continue I plan, Hampshire cost Eversource our you, standards -- there's mean, know, I a down that X And us shortage change if and portfolio. provide of the and recovery things and you months Yes. $XXX of investment that few We've investment they there if obviously, across as that got $XXX took follow will want opportunities timely there's to for jurisdictions, we no we timely

it. we make to I a And so staying for customers. do investments very our can a down half that Connecticut is again, full, in we change needed I and close that So very, the we're hope the see am internal optimist, that glass are

the to really need is we get that to balance is I customers, benefit very that. focus the and would just for focused add to of we're where our sheet be on

get recovery to these Otherwise, So kind pull forced our to utilities it's back both operating in investments timely just of going buckets. costs. on important we of that is be

is The from Storozynski next with of the Seaport. Angie question line

lots of So questions.

given if that benefit eventual. changed with I'm if benefit? online. interconnection was that like about benefit the line that depending had Just could we I earnings the one project into for approved you question wondering waited recent remember increase And transmission also, quantify capital if the this in come that to that Massachusetts. of project on transmission when There in earnings your And NEC just cost past the the associated benefit an from was line. the

from Angie, not the an we to the referring be clear, where that's benefit if to. the The were one agreement seeking we standpoint that So get that's just projects remuneration. what from you're executing PPA is of interconnection opportunities

That's right.

Okay.

okay. benefit -- no just like So there's

sheet, because of project. size of the the get we billings over is earnings benefit the and a The No, time that there strengthen of on our period PPA to annual long is. preserve for order remuneration there a in balance is,

meet That's about X.XX% it's that the maintain project. what recognize and were that -- helps we earnings So we that able to gave. from

just, cost delivered, over And again, cost it is or to the of of the... that capital linked the power percentage

that we value the It's bill customers. our

So -- that utilities to utilities in contract have is all PPA. execute electric all the

we $X.XX. customers, if get bill So $X we to

understand. I

that just think that how wondering in mean, you data well, that New England, given see seeing -- backdrop centers are okay. for at I the the growth reviving Okay, I mean, would granted. couple I actually. low your the the Canada? I'm mean, and in of going be looking I for with I would associated from consider last forward? your supply you the we're also, the follow SAC going are England. might I New in these mean, how over you supply-demand maybe projects understand these other about But England and ] up the decades, in precision And I understand overall, line most you, past. actually [ New lines that to those how not transmission but of dynamics

we We're look I'll pure-play looking world regulated that the that swing I've the regulated where in we are doubles, today, the to we'll singles fences promised anymore. it others are for for the and on a Well, tell Yes. at we all you sit utility. the of call just not many the you and going space. in

So regulated to a would definitely [indiscernible] this project line anyone want company's are don't that deviate Canada we that as purely I we and merchant transmission from that something a be because to a that's to not would do go going company. worry pose plan in

question with from Associates. the Our line Glenrock Paul Patterson comes of today last

Last but hopefully. not least,

the with wrong, Am guys you issue seemed I incremental to When incremental me with the dispute O&M. the understood on that being I only than to mean I it your if through of me were the institute correct look of the -- it. there I respect about to than really I O&M all that more rate thing then a AMI. much is is increases, O&M, just quickly the exceptions, ability the was concerned correct So that? this and pretty about The in

why Yes, of don't team Paul, through details, you if mind. my kind Relations take do have those of -- some Investor you you we don't

and you what of with have regional maybe Okay. the one some And that impact guys, offshore things respect know you your just No are potential having necessarily about or guys wind Connecticut's offshore to wind, the this outlook discussion from concerns Angie's what the here any about of guys about in this any question -- this then but you comments I state, the for in Nonetheless, is with and you I what their have wind perspective if facility isn't associated perhaps -- in was with obviously, -- and your not be getting wondering prices I longer-term concerned out of directly people are sort the kind offshore participation, how you. again, though specifically you impact and have are about guys they associated even power guys to power about is to maybe have there about of affordability, are delivering Connecticut. know for may sort you questions with it, see we're I of the this how directly business. But just offshore either seeing and you costs what a know. swapping business, problem. there's about you you And have wins on discussion Millstone, And you you. not

hearing what just with the potentially that the and are your we're swap offshore wind about nuclear? discussions thoughts So about

just as the energy actively And you've X got are mentioned a Yes. that the earlier clean call I will that, of suffer. engaged Well, pot in around you kind I very it's story. governors like like tell that

table the to wants of Connecticut in the Canada. hydro out got You've coming bring and at nuclei Mass has

Hampshire. You've got New a nuclear plant in

states have want would Governor to to the some of energy that lot the the certain Connecticut Millstone of bring a there's resources of other pay The for table. assets. like So to folks

the pay would assets. Massachusetts some Connecticut to wind think I for of like

mean at governance. we're a are -- and my So very I I cordial. point. other we'll this the and mind Those hydro that location, in they're this are all relationship taking confident doubt situation come all England. say, between all I'll a up that of And constrained, with very and resources England we customs the than, mean, very, New will tell that capacity you really is all I solution have that working new wind is are coming. seeing we strong our not in only no New benefit what they the given tough the I that injections are place take the

take very So plays but know everyone dialogue that see going piece recipe. on we'll of there kind constructive I'm it just that out, of else's to optimistic is everyone how a has

then just And bill. the it. Got climate respect to

were manner. -- a Gap] [Indiscernible] [Audio there. the to needs a Yes, And certainly [Audio want seat Obviously, pleased. cited had understand think at I electrify. major -- it's We sees Massachusetts. we're very Infrastructure I Gap] that table everyone to be in timely

of X kind in something You wait years. or XX years

most we And adversely of that want that's active impacted. think -- the that and have got very everyone one are when that very voice and So everyone at us is table, heard to We was we they the a siting nobody that think allowed to went the get justice Cambridge I had what presence things environmental is I'm of we as seat smoothly is communities. consequently, favorable sure proud make outcome. see to in to around a table had room in I felt the so a everyone's the who at that

remarks. to closing I to Thank call like you. Rima now turn for back the would

this Elissa. everyone, Thank morning. Thank you, for you, joining us

next ends We you. you see this Thank of many week will today's call.

you today's conclude Thank participation. does conference call. This your for all

disconnect now lines. may your You