Eversource(US:ES)2023-02-14 19:08Financial Data and Key Metrics Changes - The company's GAAP earnings for 2022 were $4.05 per share, an increase from $3.54 per share in 2021, with fourth-quarter earnings at $0.92 per share compared to $0.89 per share in Q4 2021 [78][79] - Non-GAAP earnings for 2022 were $4.09 per share, up 6% from $3.86 in 2021, with Q4 non-GAAP earnings at $0.92 per share, slightly higher than $0.91 in Q4 2021 [79][80] - The company projects non-GAAP earnings for 2023 to be between $4.25 and $4.43 per share, compared to $4.09 in 2022 [82] Business Line Data and Key Metrics Changes - Electric transmission earned $1.72 per share in 2022, up from $1.58 in 2021, driven by continued investment in the transmission system [80] - Electric distribution segment earnings were $1.71 per share in 2022, compared to $1.61 in 2021, with higher revenues and lower pension expenses offset by increased O&M and depreciation costs [103] - The natural gas distribution segment earned $0.67 per share in 2022, an increase from $0.59 in 2021 [104] Market Data and Key Metrics Changes - The company noted a reduction in natural gas prices, which has started to lower bills for some customers, with New Hampshire electric customers seeing a rate decline [76] - The company expects lower power supply costs to be reflected in customer bills starting in July [76] Company Strategy and Development Direction - The company is committed to investing approximately $21.5 billion in regulated electric, natural gas, and water distribution businesses over the next five years to enhance service and meet decarbonization goals [84] - The strategic review of offshore wind investments is expected to conclude in the second quarter of 2023, with ongoing projects moving ahead [58][59] - The company aims to be a leading catalyst for clean energy development in the Northeast, with significant progress on various clean energy initiatives [59][97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to deliver safe and reliable service while addressing climate change impacts [53] - The company anticipates that the introduction of renewables will improve the gas supply situation in the region [14] - Management acknowledged the uncertainty surrounding offshore wind investments but expects to resolve it in the coming months [57] Other Important Information - The company has committed to setting a science-based target for emissions reduction, enhancing its ESG profile [55] - The company plans to install a new customer information system over the next two years, with meter installations expected from 2025 to 2027 [61] Q&A Session Summary Question: Can you quantify the historical pension income for 2022 and expectations for 2023? - Management indicated that the headwind from lower pension income in 2023 compared to 2022 is about $0.04 per share [6] Question: What percentage increase in equity investments is embedded in the 2023 EPS outlook? - Management stated that there is not a sizable component of equity investments in the EPS outlook, but they may issue more if market conditions are favorable [17] Question: Can you provide clarity on the PBR proceeding in Connecticut? - Management noted that it is still early in the process and they are working with regulators to address concerns regarding the staff proposal [40] Question: What is the timeline for the strategic review of offshore wind investments? - Management expects the review to conclude in the second quarter of 2023, with significant interest from sophisticated buyers [141][142] Question: How does the company plan to manage financing if the offshore wind sale process is delayed? - Management emphasized the need to be mindful of energy supply costs and indicated that they have various options to manage potential delays [35]