Eversource Energy (NYSE:ES) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 09:00 am ET


Eversource Energy (NYSE:ES) Q2 2019 Earnings Conference Call - Final Transcript


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Welcome to the Eversource Energy Second Quarter 2019 Results Conference Call. My name is Paulette, and I will be your operator for today's call. [Operator Instructions]. Please note that this conference is being recorded.

I will now turn the call over to Jeffrey Kotkin. You may begin.

Jeffrey Kotkin

Thank you, Paulette. Good morning, and thank you for joining us. I'm Jeff Kotkin, Eversource Energy's VP for Investor Relations. During this call, we'll be referencing slides that we posted last night on our website. And as you can see on Slide 1, some of the statements made during this investor call may be forward-looking as defined within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and are subject to risk and uncertainty, which may cause the actual results to differ materially from forecasts and projections. These factors are set forth in the news release issued yesterday. Additional information about the various factors that may cause actual results to differ can be found in our annual report on Form 10-K for the year ended December 31, 2018, and our Form 10-Q for the three months ended March 31, 2019.

Additionally, our explanation of how and why we use certain non-GAAP measures is contained within our news release and the slides that we posted last night and in our most recent 10-K. Speaking today will be Phil Lembo, our Executive Vice President and CFO. Also joining us today are Werner Schweiger, our Executive Vice President and Chief Operating Officer; John Moreira, our Treasurer and Senior Vice President for Finance and Regulatory; Jay Buth, our VP and Controller; and Mike Ausere, our VP for Business Development.

Now I will turn to Slide 2 and turnover the call to Phil.

Philip Lembo

Thank you, Jeff, and today I'm going to cover our second quarter 2019 financial results, provide an update on key regulatory dockets, review our financing activity and discuss several developments concerning our region's support for offshore wind development.

So starting with the quarter on Slide 2, you can see that we recorded an after-tax impairment charge of approximately $205 million in the quarter relating to our Northern Pass Transmission Project. It was driven by an adverse ruling we received on the July 19 from the New Hampshire Supreme Court. The court upheld last year's rejection on a permit for Northern Pass that was issued by the New Hampshire Site Evaluation Committee. Although we've received the vast majority of permits we need to build Northern Pass, the New Hampshire Site Evaluation Committee approval was critical to moving the project ahead. While we continue to consider Northern Pass a very beneficial project for both New Hampshire and all of New England, for both an economic as well as an environmental perspective. We see no near-term path for the project's success and have no plans to pursue it further.

Excluding Northern Pass charge, we are at $0.74 per share for the quarter