01—Abstract
Summary
Summary of the 10-K filed February 17, 2022. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy's 2021 10-K filing reveals a stable year for its regulated utility operations, with net income attributable to common shareholders reaching $1.22 billiona, a slight increase from $1.21 billion in 2020.
The company continues to invest heavily in infrastructure upgrades and clean energy initiatives. The filing highlights significant capital expenditure projections for 2022-2026, totaling $18.14 billionb, primarily allocated to electric and natural gas distribution and transmission segments. Notably, the company is advancing its offshore wind projects, with South Fork Wind receiving final federal approval and entering the construction phase.
Regulatory matters, particularly concerning CL&P's storm cost recovery and a settlement agreement, are detailed, impacting earnings by $0.25c per share in 2021. Management expects continued earnings per share growth in the upper half of the 5-7% range through 2026.
02—Key points
Key Highlights
- Eversource Energy reported net income attributable to common shareholders of $1.22 billion ($3.54 per share) in 2021, compared to $1.21 billion ($3.55 per share) in 2020.
- Projected capital expenditures from 2022 to 2026 total $18.14 billion, supporting infrastructure modernization and clean energy investments.
- The company is a significant participant in offshore wind development, with South Fork Wind receiving final federal approval and commencing construction.
- CL&P entered into a settlement agreement with regulators, including customer credits and a rate freeze until early 2024, which resulted in a $0.25 per share after-tax impact in 2021.
- The electric transmission segment saw earnings growth driven by increased rate base from ongoing infrastructure investments.
- Natural gas distribution segment earnings increased, partly due to the incremental impact of the EGMA acquisition.
- The company reaffirmed its commitment to sustainability, with a target of operational carbon neutrality by 2030 and progress in reducing GHG emissions.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 17, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $9.81B$8.90B | +10.2% |
| Operating Expenses | $7.87B$6.92B | +13.8% |
| Operating Income | $1.99B$1.99B | +0.2% |
| Interest Expense | $582.33M$538.45M | +8.1% |
| Net Income | $1.23B$1.21B | +1.3% |
| EPS (Basic) | $3.55$3.56 | −0.3% |
| EPS (Diluted) | $3.54$3.55 | −0.3% |
| Shares Outstanding (Basic) | 343.97M338.84M | +1.5% |
| Shares Outstanding (Diluted) | 344.63M339.85M | +1.4% |
05—Questions
Frequently Asked Questions
What was Eversource Energy's financial performance in 2021?
In 2021, Eversource Energy reported net income attributable to common shareholders of $1.22 billion ($3.54 per share), a slight increase from $1.21 billion ($3.55 per share) in 2020. Excluding certain one-time costs related to a CL&P settlement agreement and acquisition/transition costs, non-GAAP earnings were $1.33 billion ($3.86 per share) in 2021, compared to $1.24 billion ($3.64 per share) in 2020.
What are Eversource Energy's key capital expenditure plans?
Eversource Energy projects capital expenditures of $18.14 billion from 2022 through 2026. Key investments are allocated to electric distribution ($7.02 billion), electric transmission ($4.60 billion), and natural gas distribution ($4.53 billion), supporting infrastructure improvements and clean energy initiatives.
How is Eversource Energy progressing with its offshore wind projects?
The company is making significant strides in its offshore wind business. South Fork Wind received final federal approval for its Construction and Operations Plan and has entered the construction phase. Revolution Wind and Sunrise Wind are also progressing through federal and state permitting processes, with expected in-service dates in 2025.
What are the key regulatory developments affecting CL&P?
CL&P entered into a settlement agreement approved by PURA in October 2021, which included customer credits totaling $65 million and the establishment of a $10 million fund for customer assistance. As part of this agreement, CL&P's base distribution rates are frozen until at least January 1, 2024. The settlement, along with a storm performance penalty, resulted in a pre-tax impact of $103.6 million ($0.25 per share after-tax) in 2021.
What is Eversource Energy's outlook for future earnings growth?
The company projects 2022 non-GAAP earnings per share guidance between $4.00 and $4.17. Eversource also projects its long-term EPS growth rate through 2026 from its regulated utility businesses to be in the upper half of a 5 to 7 percent range.
06—Continue