Barclays CEO Energy-Power Conference September 4, 2014
A Rare Investment Opportunity Projected long-term EPS growth of 6%-8% Unique transmission growth platform Unique opportunity to reduce O&M by 3% - 4% annually Transmission Unique robust gas expansion plans 2014 EPS range of 2.60…
Strong Record of Total Shareholder Return 28.3% 16.8% 11.8% 12.1% 12.3% 2009 2010 2011 2012 2013 4
Longer Term Growth Exceeds Industry 3-year Guidance 2012 2015: 6 - 9% CAGR 5-year Guidance 2012 2017: 6 - 8% CAGR Key Drivers for Long Term Guidance: Significant growth in FERC-regulated transmission 11% CAGR 3% - 4% annual…
Electric Transmission, Natural Gas Distribution: NUs Top-Line Growth Segments Transmission Natural Gas Distribution 70.5 287.0 60.9 249.7 in Millions in Millions 199.6 177.8 164.3 138.3 32.7 31.7 32.9 21.0…
Transmission Expected to Account for Half of Earnings Growth Why Transmission Investment is Needed Regulatory Model Reliability States approve siting Grid efficiency FERC approves ratemaking Congressional mandate for financial…
Earnings Will Grow as We Invest in Identified Projects Actual Forecast 660M 3.8 Billion Northern Pass HVDC Line to Canada US portion estimated at 1,200 1.4B in 5-Yr period NEEWS projects 1,000 progressing NUs share estimated at…
NPT - Overview 1,200 MW of clean energy 1.432 billion HVDC line, terminal and AC facilities Participant-funded with opportunity for regional funding Uses HVDC technology at +/- 300-kV with AC/DC converters in Quebec and NH AC…
NU Consolidated ROE Will Grow as Transmission Portion of NU Rate Base Expands Rate Base By Business 17.2 billion 3% 10% 13.6 billion 6% 10% 46% 51% 2.7 billion increase in Transmission Rate Base over 4 years 41% 33%…
NU Natural Gas LDCs: Significant Expansion Ahead CT Residential Market Penetration by Shale gas lowering natural gas prices Heating Source 60% in Northeast 50% US Average = 7% 40% Oil heat much more expensive, yet 32% remains…
Potential for 151,000 Additional New Heating Customers Over the Next Ten Years Potential conversion targets by year 18,000 Expansion Plan Timeframe 2014-2023 16,000 14,000 12,000 10,000 NSTAR Gas 8,000 6,000 Yankee Gas…
Energy Challenges in the New England Market May Provide Us With Additional Opportunities Shift to natural gas for heating and power generation without additions to natural gas infrastructure Imminent retirement of generation…
New England Has Experienced a Significant Increase in Natural Gas Generation Annual Energy Output Generating Capability…
Yet 75 Percent of Regions Natural Gas Generation Was Unavailable During Winter Peak Demand And Critical Oil, Coal, Nuclear Units Retiring Fuel Mix During Peak on 1/7/14 2014 Retirements Salem Harbor (coal & oil) - RETIRED Mt. Tom…
Infrastructure Deficiency Driving Retail Rates Sharply Higher Price increases despite abundant nearby natural gas and hydro Pipeline constraints added 3 billion to supply costs during 2013-2014 winter Liquidity reduced due to…
NU Currently Exploring Multiple Options to Help the Region Meet Its Energy Needs Northern Pass the single best alternative for New England 2-3 years ahead of any other transmission project Only project with power supplier clearly…
APPENDIX 19
First Half Results 1H 2013 1H 2014 Primary Reason for Change EPS EPS Electric Distribution 0.60 0.62 Lower O&M Natural Gas Distribution 0.14 0.17 Higher sales and customer additions Electric Transmission 0.50 0.37 FERC ROE…
Customer Growth Has Picked Up for NUs Natural Gas Business NU Natural Gas Business NSTAR Gas and Yankee Gas 2007-2013 Annual Customer Additions (Conversions and new construction) Natural gas prices Economic downturn…
Long-term Rate Stability Jurisdiction Company Commentary NSTAR Electric Base rates frozen through 12/31/15 with limitations Massachusetts NSTAR Gas on number of concurrent filings; NSTAR Gas to file first in 12/14 for new rates…
Key Elements of CL&P Rate Case Distribution rate increase request of approximately 117 million Driven by increased investment in reliability which has improved significantly 726 million of investment projected from 7/1/12 (end of…
Other Regulatory Initiatives FERC ROE Case Generation Update Photo of scrubber 6/19/14 order lowered base Merrimack Scrubber Case ROE to 10.57%, pending final determination of long-term GDP Completed September growth rate…
Projected Distribution/Generation Capital Expenditures in Millions 25
Transmission Rate Base Growth Projections Transmission accounts for about 50% of EPS growth through 2017 11% CAGR 7,115 5,581 in Millions 5,150 4,756 4,231 4,434 2012A 2013A 2014E 2015E 2016E 2017E CL&P NSTAR…
Progress on Major CT Reliability Projects Greater Hartford Central Connecticut Reliability Project (GHCC) Interstate Reliability Project New set of solutions presented to ISO-New England Joint project with National Grid Planning…
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