10-KPeriod: FY2009

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:ES

Summary

Eversource Energy (ES), formerly Northeast Utilities (NU), reported net income attributable to controlling interest of $330.0 million ($1.91 per diluted share) for the year ended December 31, 2009. This represents an increase from 2008, primarily driven by improved earnings from regulated distribution and transmission segments, largely due to cost management efforts, distribution rate increases, and higher transmission investments. The company is heavily focused on its regulated utility operations, with approximately 98% of its earnings derived from these segments. Looking ahead, NU projects 2010 earnings per share between $1.80 and $2.00 and anticipates a compound average annual EPS growth rate of 6% to 9% from 2010 to 2014. A significant capital expenditure program of approximately $6.4 billion is planned from 2010 through 2014, focusing on critical infrastructure upgrades and projects like the New England East-West Solutions (NEEWS) and the Merrimack Clean Air Project. The company is managing regulatory developments, with rate case filings expected to influence future earnings, and remains focused on maintaining regulatory compliance and financial flexibility amidst prevailing economic conditions.

Financial Highlights

25 data points
Beta

Revenue

$5.44B

Net Income

$330.03M

6.1% Net Margin

EPS (Diluted)

$1.91

Cash & Equivalents

$26.95M

Free Cash Flow

$80.97M

Financial Statements
Beta
Revenue$5.44B
Operating Expenses$4.69B
Operating Income$751.38M
Interest Expense$273.64M
Net Income$330.03M
EPS (Basic)$1.91
EPS (Diluted)$1.91
Shares Outstanding (Basic)172.57M
Shares Outstanding (Diluted)172.72M

Key Highlights

  • 1Net income of $330.0 million ($1.91 per diluted share) for 2009, an increase from $260.8 million in 2008.
  • 2Regulated companies contributed $323.5 million to net income, representing 98% of total earnings.
  • 3Transmission segment earnings increased to $164.3 million in 2009, driven by higher investments in infrastructure.
  • 4Planned capital expenditures of $6.4 billion from 2010-2014 to support infrastructure upgrades and major projects.
  • 5Projected EPS growth of 6%-9% annually from 2010-2014.
  • 6Total outstanding long-term and short-term debt of approximately $4.7 billion as of December 31, 2009.
  • 7Declared a common dividend of $0.25625 per share, payable in March 2010, an increase of 7.9% from the prior year's rate.

Frequently Asked Questions

In 2009, Eversource Energy (then Northeast Utilities) reported a net income of $330.0 million, or $1.91 per diluted share, an increase from $260.8 million ($1.67 per diluted share) in 2008. This improvement was primarily driven by higher earnings from the regulated distribution and transmission segments.

Eversource Energy plans significant capital expenditures of approximately $6.4 billion from 2010 through 2014. Key projects include the New England East-West Solutions (NEEWS) for transmission infrastructure, the Merrimack Clean Air Project for environmental compliance at PSNH, the HQ tie line project for transmission, and the Yankee Gas Waterbury to Wallingford Pipeline Project for natural gas infrastructure.

The company is actively engaged in regulatory proceedings. In 2009, CL&P filed for distribution rate increases effective July 2010 and 2011, and PSNH received approval for temporary rate increases with a decision on permanent rates expected in mid-2010. WMECO plans to file a distribution rate case in mid-2010 to include revenue decoupling. These actions are crucial for recovering capital investments and ensuring financial integrity, while also addressing customer needs.

Eversource Energy targets paying out approximately 50% of consolidated earnings as common dividends. In February 2010, the Board declared a dividend of $0.25625 per share, representing a 7.9% increase over the 2009 rate. The company projects a compound average annual EPS growth rate of 6% to 9% from 2010 to 2014, supporting continued dividend growth, subject to regulatory approvals and earnings performance.