Eversource Model - Weighted Average Cost of Capital...

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Weighted Average Cost of Capital Parameter Value Source Cost of Equity 6.19% Risk Free Rate (30-Year Strips) 3.07% BTMM Market Risk Premium 6.50% Beta 0.48 BETA Cost of Debt 4.16% Yield to Maturity 4.16% CORP OR Bond Rating (S&P) A- CRPR Yield to Maturity (Industry) 4.10% FMCI Marginal Tax Rate 35.00% Footnotes Market Value of Equity (MM) 16,110.33 Share Price 50.96 GP Total Shares Outstanding (MM) 316.14 MSH Market Value of Debt (MM) 9,808.43 Current Portion of LTD (MM) 245.58 FA Short-term Borrowings (MM) 0.00 FA Notes Payable (MM) 956.83 FA Long-term Debt (MM) 8,606.02 FA Cost of Capital (WACC) 4.87% Cost of Capital (Bloomberg) 4.30% WACC
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Historical Income Statement 2010A 2011A 2012A 2013A 2014A Operating Revenues 4,898,167 4,465,657 6,273,787 7,301,204 7,741,856 Operating Expenses Purchased Power, Fuel and Transportation 2,034,501 1,657,914 2,084,364 2,482,954 3,021,550 Operations and Maintenance 1,001,349 1,095,358 1,583,070 1,514,986 1,427,589 Depreciation 300,737 302,192 519,010 610,777 614,657 Amortization of Regulatory Assets, Net 90,054 91,080 79,762 206,322 10,704 Amortization of Rate Reduction Bonds 232,871 69,912 142,019 42,581 0 Energy Efficiency Programs 124,023 131,415 313,149 401,919 473,127 Taxes Other Than Income Taxes 314,741 323,610 434,207 512,230 561,380 Total Operating Expenses 4,098,276 3,671,481 5,155,581 5,771,769 6,109,007 Operating Income 799,891 794,176 1,118,206 1,529,435 1,632,849 Interest Expense Interest on Long-Term Debt 231,089 231,630 316,987 340,970 345,001 Interest on Rate Reduction Bonds 20,573 8,611 6,168 422 0 Other Interest -14,371 10,184 6,790 -2,693 17,105 Total Interest Expense 237,291 250,425 329,945 338,699 362,106 Other Income, Net 41,916 27,715 19,742 29,894 24,619 Income Before Income Tax Expense 604,516 571,466 808,003 1,220,630 1,295,362 Income Tax Expense 210,409 170,953 274,926 426,941 468,297 Effective Tax Rate 34.8% 29.9% 34.0% 35.0% 36.2% Net Income 394,107 400,513 533,077 793,689 827,065 Net Income Attributable to Noncontrolling Interest 6,158 5,820 7,132 7,682 7,519 Net Income Attributable to Controlling Interest 387,949 394,693 525,945 786,007 819,546 Diluted Shares Outstanding 176,885 177,805 277,994 316,211 317,417 Diluted EPS $ 2.19 $ 2.22 $ 1.89 $ 2.49 $ 2.58
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Consensus Consensus 12.1% 2013A 2014A 2015E 2015E 2016E 2016E Revenue 7,301 7,742 8,094 8,081 8,676 8,283 Op. Income 1,529 1,633 1,781 1,804 1,865 1,896 Net Income 786 820 928 920 958 958 EPS $ 2.49 $ 2.58 $ 2.92 $ 2.88 $ 3.02 $ 3.04 Electric Distri 462.4 55.7% Electric Trans 295.4 35.6% Natural Gas Di 72.3 8.7% 19.5% 830.1 21.0% 20.6% 56% 36% 9% 2014 Revenue by Segme
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ent Electric Distribution Electric Transmission Natural Gas Distribution
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Historical Balance Sheet 2010A 2011A 2012A ASSETS Current Assets Cash and Cash Equivalents 23,395 6,559 45,748 Receivables, Net 523,644 488,002 792,822 Unbilled Revenues 208,834 175,207 216,040 Taxes Receivable 89,638 0 0 Fuel, Materials and Supplies 244,043 248,958 267,713 Regulatory Assets 238,699 255,144 705,025 Prepayments and Other Current Assets 178,747 183,602 199,947 Total Current Assets 1,507,000 1,357,472 2,227,295 Property, Plant and Equipment, Net
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