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1Factbook / May / 2020
Factbook
May 2020
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2Factbook / May / 2020/ www.avangrid.com
Legal Notice
FORWARD LOOKING STATEMENTS
Certain statements in this presentation may relate to our future business and financial performance and future events or developments involving us and our subsidiaries
that are not purely historical and may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “would,” “could,” “can,” “expect(s),” “believe(s),” “anticipate(s),” “intend(s),”
“plan(s),” “estimate(s),” “project(s),” “assume(s),” “guide(s),” “target(s),” “forecast(s),” “are (is) confident that” and “seek(s)” or the negative of such terms or other variations
on such terms or comparable terminology. Such forward-looking statements include, but are not limited to, statements about our plans, objectives and intentions, outlooks
or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters
on business, results of operations or financial condition of the business and other statements that are not historical facts. Such statements are based upon the current
reasonable beliefs, expectations, and assumptions of our management and are subject to significant risks and uncertainties that could cause actual outcomes and results
to differ materially. Important factors are discussed and should be reviewed in our Form 10-K and other subsequent filings with the SEC. Specifically, forward-looking
statements include, without limitation: the future financial performance, anticipated liquidity and capital expenditures; actions or inactions of local, state or federal
regulatory agencies; success in retaining or recruiting our officers, key employees or directors; changes in levels or timing of capital expenditures; adverse developments
in general market, business, economic, labor, regulatory and political conditions; fluctuations in weather patterns; technological developments; the impact of any cyber
breaches or other incidents, grid disturbances, acts of war or terrorism, natural disasters, or pandemic health events or other similar occurrences; the impact of any
change to applicable laws and regulations affecting operations, including those relating to the environment and climate change, taxes, price controls, regulatory approval
and permitting; the implementation of changes in accounting standards; and other presently unknown unforeseen factors.
Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects
from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. We do not undertake any
obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report, whether as a result of new information, future
events or otherwise, except as may be required under applicable securities laws. Other risk factors are detailed from time to time in our reports filed with the SEC, and we
encourage you to consult such disclosures.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading, sustainable energy company with approximately $35 billion in assets and operations in 24 U.S. states.
With headquarters in Orange, Connecticut, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns eight
electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable
energy generation facilities in the United States. AVANGRID employs approximately 6,500 people. AVANGRID supports the U.N.’s Sustainable Development Goals and
was named among the World’s Most Ethical Companies in 2019 by the Ethisphere Institute. For more information, visit www.avangrid.com.
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3Factbook / May / 2020/ www.avangrid.com
Legal Notice
Use of Non-U.S. GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we consider adjusted net income and adjusted earnings per share as
non-GAAP financial measures that are not prepared in accordance with U.S. GAAP. The non-GAAP financial measures we use are specific to AVANGRID and the non-
GAAP financial measures of other companies may not be calculated in the same manner. We use these non-GAAP financial measures, in addition to U.S. GAAP
measures, to establish operating budgets and operational goals to manage and monitor our business, evaluate our operating and financial performance and to compare
such performance to prior periods and to the performance of our competitors. We believe that presenting such non-GAAP financial measures is useful because such
measures can be used to analyze and compare profitability between companies and industries by eliminating the impact of certain non-cash charges. In addition, we
present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other
interested parties as supplemental measures of performance.
We define adjusted net income as net income adjusted to exclude restructuring charges, mark-to-market earnings from changes in the fair value of derivative
instruments and accelerated depreciation derived from repowering of wind farms. We believe adjusted net income is more useful in understanding and evaluating
actual and projected financial performance and contribution of AVANGRID core lines of business and to more fully compare and explain our results. The most directly
comparable U.S. GAAP measure to adjusted net income is net income. We also define adjusted earnings per share, or adjusted EPS, as adjusted net income
converted to an earnings per share amount.
The use of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, AVANGRID’s U.S. GAAP financial
information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness, may be unique to AVANGRID, and should be considered
only as a supplement to AVANGRID’s U.S. GAAP financial measures. The non-GAAP financial measures may not be comparable to other similarly titled measures of
other companies and have limitations as analytical tools.
Non-GAAP financial measures are not primary measurements of our performance under U.S. GAAP and should not be considered as alternatives to operating income,
net income or any other performance measures determined in accordance with U.S. GAAP.
Investors and others should note that AVANGRID routinely posts important information on its website and considers the Investor Relations section,
www.avangrid.com/wps/portal/avangrid/Investors, a channel of distribution.
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4Factbook / May / 2020/ www.avangrid.com
Index
1. AVANGRID
1.1. Description……………………………………………………………………………………………..
1.2. Outlook & Financing……………………………………….…………………………………………
2. Avangrid Networks
2.1. Operating Utilities...…………………………………………….....………………………………….
2.2. Projects & Capex…………………………………………………..………………………………….
2.3. Regulatory………………………………...………………………...………………………………….
2.4. How to Model.………………………………………………………………………………………….
3. Avangrid Renewables
3.1. Portfolio Characteristics………………………………………….…………………………………
3.2. Facilities & Contracts.…………………….………………………………………………………….
3.3. Drivers of Growth.…………………………………………………………………………………….
3.4. Projects & Capex…………………………………………………..………………………………….
3.5. Economics.……………………………………………………….……………………………………
4. Reconciliations…………………………………...…………………………………………………………
5
18
25
32
40
49
55
62
73
84
87
95
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5Factbook / May / 2020/ www.avangrid.com
1. AVANGRID
1.1. Description
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6Factbook / May / 2020/ www.avangrid.com
AVANGRID is Focused on Regulated & Renewables Businesses
NYSE: AGR
www.AVANGRID.com
BBB+ Credit Rating
81.5% Owned by
Iberdrola, S.A.
Average Rate Base
Customers Served
Miles of Transmission Lines
Miles of Electric Distribution Lines
Miles of Gas Distribution Pipeline
~$10.4B
~3.3M
~9k
~71k
~23k
8 regulated utilities in NY, CT, ME, MA
Wind & Solar In Operation
Projects Under Construction
~7.5 GW
~0.5 GW
Third largest Wind Operator in the U.S.
Networks
Renewables
Formed by merger between Iberdrola USA and UIL in Dec 2015
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7Factbook / May / 2020/ www.avangrid.com
AVANGRID Origins
1840: Hartford City
Light is formed
(CNG Origin)
2001: Scottish Power
acquires Pacific Corp
2006: Iberdrola
acquires
Community
Energy
2006: Scottish Power
sells Pacific Corp to
Berkshire Hathaway,
without PPM Energy
2007: Scottish Power
is acquired by
Iberdrola S.A.
2008: Iberdrola Ren
and PPM Energy
merge into Iberdrola
Renewables USA
2008: Iberdrola S.A.
acquires Energy
East, forming
Iberdrola USA
2010: UIL purchases
SCG, CNG, and BG
from Iberdrola USA
2015: UIL and
Iberdrola USA merge
to form Avangrid
2018: Sale of
Enstor Gas
Storage
1929: Ithaca
Gas renamed to
New York State
Electric and Gas
1848:
Hartford City
Light re-
named CNG
1999: Energy East
formed (NYSEG)
1899: UI formed
through New Haven
Electric & Bridgeport
Electric merger
2000s: Energy East
acquires RG&E in
2002. Electricity
Reform ongoing...
1892: RG&E
formed through
merger
1967: SCG formed
through merger
1999: Energy East
acquires CMP, CNG,
SCG, BG, MNG.
1910: Oakland
Electric renamed
Central Maine Power
The integration of the former
Iberdrola USA and UI was
successfully completed in 2018
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8Factbook / May / 2020/ www.avangrid.com
AVANGRID Strategy
Fulfilling our strategy to deliver sustainable growth by investing in a Smarter & Cleaner Energy Future
Focusing on
Clean Energy
Building the Grid
of the Future
Smarter
Customer Solutions
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9Factbook / May / 2020/ www.avangrid.com
AVANGRID Investment Highlights
Asset & Regulatory Mix Offers Geographic & Business Diversity
✓ 8 regulated utilities in 4 states with ~$10.4B rate base
✓ ~7.5 GW wind & solar in operation, targeting ~75%-85% contracted and/or hedged
Strong Growth Prospects
✓ New England Clean Energy Connect (NECEC), Vineyard Wind, & Park City Wind projects
✓ Access to 3 offshore wind leases through Vineyard Wind, MA & Kitty Hawk, NC
✓ 18 GW onshore & offshore wind & solar pipeline
Attractive Financial Strength
✓ Strong balance sheet with low leverage
✓ Dividend policy targeting 65-75% Payout(1)
Implementation of the “Utility of the Future”
✓ Opportunities beyond ’22, including Offshore Wind
✓ Investment in AMI, Smart Grid, EV infrastructure, & battery storage initiatives
✓ Innovative renewables solutions
Leading, Sustainable U.S. Energy Company with a Focus on Clean Energy
✓ 90% Emission Free Capacity & CO2 emissions intensity was 6 times lower than average U.S. utility industry in ’19(2)
✓ Pledge to reduce CO2 Emissions & Carbon Neutrality of our generation by 2035
(1) Subject to authorization by the AVANGRID Board of Directors.
(2) Data available through October 2019.
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10Factbook / May / 2020/ www.avangrid.com
AVANGRID Geographic Presence
AVANGRID
OperationsWind
Solar
Thermal
Networks
Headquarters in Orange, CT
~$35 billion in assets with operations in 24 states
3rd largest wind operator in the U.S. with ~7.5 GW Wind & Solar in Operation(1)
(1) As of 3/31/2020, including JVs.
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11Factbook / May / 2020/ www.avangrid.com
AVANGRID Operational Structure
AVANGRID, Inc.(1)
(AGR)
AvangridNetworks, Inc.(1)
(Networks)
Central MainePower Company(1)
(CMP)
UIL Holdings Corporation(1)
(UIL)
The UnitedIlluminating Company(1)
(UI)
The Southern Connecticut Gas
Company(SCG)
Connecticut Natural Gas Corporation
(CNG)
The Berkshire Gas Company
(BGC)
New York State Electric & Gas Corporation
(NYSEG)
Rochester Gas and Electric Corporation
(RG&E)
New YorkTransCo, LLC
(TransCo)
20%(2)
Maine Natural Gas Corporation
(MNG)
Avangrid Renewables
Holdings, Inc.(1)
(ARHI)
AvangridRenewables, LLC(1)
(Renewables)
Vineyard Wind, LLC(VW)
50%(2)
(1) Certain legal entities, including
subsidiary holding companies and
project level LLCs, are not shown.
(2) AVANGRID’s ownership interest.
Note: Colors are not intended to show
the proportion of an entity's operations.
Holding Company
Electric Transmission
Electric Distribution
Gas Distribution
Renewables
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12Factbook / May / 2020/ www.avangrid.com
Operational Data 1Q 2020
AVANGRID’s Net Electricity Production
GWh % Weight % YoY GWh % Weight% YoY
Renewables 5,444 87% 33.9% 5,444 87% ####
Onshore wind(1) 5,343 85% 35.6% 5,343 85% ####
Hydro 36 1% -36.8% 36 1% ####
Solar 48 1% -0.9% 48 1% -0.9%
Fuel cells 17 0% -15.0% 17 0% ####
Peaking generators 0 0% -100.0% 0 0% ####
Klamath Cogeneration(2) 826 13% -21.1% 826 13% ####
TOTAL 6,270 100% 22.6% 6,270 100% ####
AVANGRID’s Installed Capacity(2)
MW % Weight MW % Weight
Renewables 7,599 90% 6,746 89%
Onshore wind(3) 7,339 87% 6,473 85%
Hydro 118 1% 118 2%
Solar(4) 130 2% 141 2%
Fuel cells 13 0% 13 0%
Peaking generators 204 2% 212 3%
Klamath Cogeneration(5) 636 8% 636 8%
TOTAL 8,439 100% 7,594 100%
AVANGRID’s Energy Delivered by Networks
GWh % YoY GWh % YoY
Electricity 9,578 -4.5% 9,578 -75.1%
Natural Gas 23,087 -15.1% 23,087 -64.1%
March 2020 March 2019AVANGRID
AVANGRID1Q 2020 YTD 2020
AVANGRID1Q 2020 YTD 2020
AVANGRID’s Emissions Indicators AVANGRID 1Q 2020 1Q 2019
CO2 emissions over the period (g CO2/kWh) 55.5 81.7
CO2 emissions over the period (lbs CO2/MWh) 122.5 180.0
Emissions-free production capacity: 90% 89%
1) Owned & JV
2) Nameplate capacity
3) Average Operating Capacity; ~7,269 MW
4) MWdc
5) Includes 100 MW of Klamath peaking generator
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13Factbook / May / 2020/ www.avangrid.com
Operational Data – Revenue Detail
AVANGRID Revenue Detail(Excluding Networks Gas Companies and Corporate)
(millions) FY 2019
Segment $ % Weight % YoY
Networks 2,843 100% -1%
Hydro 45 2% 1%
Nuclear - - -
Renewables 1,088 100% -5%
Solar 26 2% -24%
Biomass 35 3% -8%
Wind 886 81% -7%
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14Factbook / May / 2020/ www.avangrid.com
AVANGRID is at the Forefront of Sustainability
Main FocusDirect
ContributionIndirect
Contribution
✓ CO2 emissions intensity is 6 times lower than U.S. Utility average in ’19(1)
With a Pledge to reduce CO2 Emissions & Carbon Neutrality of our generation by ’35…
A focus on the U.N. Sustainability Goals…
✓ 7th largest issuer of Green, Social and Sustainability (GSS) Bonds in the U.S., with total issued of $2.1B
✓ Reduction of 11% in Lost Time Accidents & ~33 hours of training per employee in ’19
✓ ~$68M R&D Investment (+24%). Innovation forum with MIT, Yale, Harvard, Cornell & UCONN
✓ Establishing a new private, secured fiber-optic network (industry leading practice in cybersecurity)
✓ EEI Emergency Response Award for CMP’s response to the ’17 October snow storm
And demonstrated leadership in our contributions to society
(1) Data available through October 2019.
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15Factbook / May / 2020/ www.avangrid.com
AVANGRID ESG Recognitions & Awards
Constituent of the FTSE4Good
Index Series(1)
Part of Carbon Disclosure Project, a
global environmental disclosure system
Named best corporate governance
for 2019 by both World Finance
Magazine & Ethical Boardroom
Received prestigious third party
certification of compliance program
(1) Includes companies demonstrating strong Environmental, Social and Governance (ESG) practices.
(2) 200 global, publicly-traded firms according to the size of “clean revenue” from products & services that provide solutions for the planet.
Recognized as one of the World’s
Most Ethical Companies in 2019
& 2020
Named North American utility
with the best corporate
governance in 2017 & 2019
A Recognized Leader in Sustainability
A Recognized Leader in Corporate Governance
✓ 2020 is the 3rd year AVANGRID earned a place on the Global Clean 200 list(2)
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16Factbook / May / 2020/ www.avangrid.com
Forward 2020+ Vision: Best-in-Class in Industry
Implementing Best Practices to drive top tier performance
Cost Management Targets
• Manage O&M to achieve best in
class operational efficiency as
we grow the business
• Mitigate rate impacts of the
capital plan
Talent Attraction
& Agile Organization
Driving Innovation with
Technology Deployment & Digitization
Delivery of Customer Solutions
& Quality of Service
Focus on Safety, Reliability &
Resiliency
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17Factbook / May / 2020/ www.avangrid.com
Helpful Links
State - Regulatory Commissions
• CT PURA – www.ct.gov/pura
• MA DPU – www.mass.gov/dpu
• ME PUC – www.maine.gov/mpuc
• NY DPU – www.dps.ny.gov
State - Request For Proposals
• MA Clean Energy – www.macleanenergy.com
• CT Procurement of Clean Energy and Renewable
Resources Pursuant to Public Acts 13-303, 15-107
and 17-144 –
www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyVi
ew?OpenForm&Start=14.4&Count=30&Expand=1
5.7&Seq=17
• NY Solicitation – www.nyserda.ny.gov/All-
Programs/Programs/Offshore-Wind/Offshore-
Wind-Solicitations/Generators-and-
Developers/2018-Solicitation
• RI 2018 Request for Proposals for Long-Term
Contracts for Renewable Energy –
ricleanenergyrfp.com
New England Clean Energy Connect (NECEC)
• NECEC – www.necleanenergyconnect.org
• ME Certificate of Public Convenience (CPCN), 2017-00232 –
mpuc-
cms.maine.gov/CQM.Public.WebUI/Common/CaseMaster.as
px?CaseNumber=2017-00232
• MA – Long-term contracts with EDCs, 18-64 –
eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber
Vineyard Wind (VW)
• VW – www.vineyardwind.com
• MA – Long-term contracts with EDCs, 18-76 –
eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber
• MA – Energy Facilities Siting Board; FSB 17-05/D.P.U. 18-
18/18-19 – search.mass.gov/?q=17-05&org=energy-
facilities-siting-board and
eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber
• Liberty Wind – www.libertywind.com/the-project-1
• Park City Wind – http://www.parkcitywind.com
Other
• American Wind Association (AWEA) –
www.awea.org
• Bureau of Ocean Energy Management
(BOEM) – www.boem.gov
• BOEM Vineyard Wind –
www.boem.gov/Vineyard-Wind
• FERC – www.ferc.gov/default.asp
• ISO-NE – www.iso-ne.com
• NYSERDA – www.nyserda.ny.gov
• New England States Committee on Electricity
(NESCOE) – www.nescoe.com
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18Factbook / May / 2020/ www.avangrid.com
1. AVANGRID
1.2. Outlook & Financing
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19Factbook / May / 2020/ www.avangrid.com
Networks Renewables Corporate CONSOLIDATED
EPS $1.69 – $1.94 $0.35 – $0.55 ($0.19) – ($0.05) $2.06 – $2.26
Adjusted EPS(1) $1.70 – $1.95 $0.45 – $0.65 ($0.19) – ($0.05) $2.17 – $2.37
2020 EPS & Adjusted EPS Outlook(1)(2)
Consolidated- COVID-19
- NY rate case outcome
+ FERC Incentives NOPR
+/- FERC ROE decision
+/- Outage restoration & staging costs
+/- Federal & state legislation & regulation
+/- O&M
+/- Wind production & wind project COD
+/- Sales/partnerships of renewable projects
+/- Merchant pricing
+/- Taxes
+/- Best practices & operating efficiencies
Reflects current assumptions including recoverability of COVID-19 related costs
Key Risks & Opportunities
(1) See Reconciliations section for reconciliation of adjusted EPS to EPS.
(2) As of April 28, 2020.
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20Factbook / May / 2020/ www.avangrid.com
2020 Outlook Risk Analysis (1)
NETWORKS
Distribution ROE +/- 50 bps ~ +/- $0.07
Transmission ROE +/- 100 bps ~ +/- $0.03
FERC ROE Decision ~ +/- $0.07
Outage Restoration & Staging costs ~ - $0.03 to +$0.01
(1) As of April 28, 2020.
KEY SENSITIVITIES
RENEWABLES
Wind production NCF +/- 0.5 pp ~ +/- $0.04
Merchant Prices +/- $1/MWh ~ +/- $0.01
Asset Sales ~ - $0.05
CORPORATE
Interest Rates +/- 0.50% on new
AVANGRID debt~ +/- $0.01
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21Factbook / May / 2020/ www.avangrid.com
2019 Financial Metrics
(1) Ratio calculations are based on the company’s interpretation of the Moody’s methodology, and may not include all rating agency adjustments. Please see Reconciliations section for details.
31.6%34.6%
2018 2019
Debt(1) / Total Capitalization
22.5%16.0%
2018 2019
CFO Pre-WC / Debt(1)
$1,593
($2,740)
($545)
$97 $141
AVANGRID Consolidated FY ’19 ($M)
Cash from
Operations
Capital
Expenditures
Change in
Cash
Dividends Debt
$1,736
Other
Renewables $1,125
Networks $1,612
Corporate $3
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22Factbook / May / 2020/ www.avangrid.com
$1,742
($2,810)
($541)
$328 ($57)
AVANGRID Consolidated Est. FY ’20 ($M)
Cash from
Operations
Capital
Expenditures
Change in
Cash
Dividends Debt
$1,224
Other(2)
2020 Estimated Financial Metrics(1)
(1) As of February 25, 2020.
(2) Includes Tax Equity financing.
(3) Ratio calculations are based on the company’s interpretation of the Moody’s methodology, and may not include all rating agency adjustments. Please see Reconciliations section for details.
34.6%37.7%
2019 2020
Estimated Debt(3) / Total Capitalization
16.0% 16.6%
2019 2020
Estimated CFO Pre-WC / Debt(3)
Renewables $797
Networks $2,013
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23Factbook / May / 2020/ www.avangrid.com
AVANGRID Financial Strength
Leverage is Primarily at Networks
• AGR issuance in Apr ’20; $750M Green Bond (5yr note with
3.20% coupon); $2.1B of Green Bonds issued to date
• AGR issuance in Dec ’19; $500M Floating Rate Bank Note
(1.5yr)
• NYSEG $300M Senior Unsecured issuance in Sep ’19
(30yr note with 3.30% coupon)
• RG&E $150M FMB issuance in Aug ’19 (Re-open, ~8yr
remaining with 3.10% coupon)
• AGR issuance in May ’19; $750M Green Bond (10yr note
with 3.80% coupon)
• Short-term liquidity is provided by $2.5B Sustainability-
Linked Credit Facility that backstops $2B AGR CP program
• $0.5B Intercompany Loan facility with IBE as additional
backstop liquidity
HighlightsDebt Financing Structure
(March 31, 2020)
Networks
$5,150M
Short-term
Debt
$747M
28%63%
AGR
$2,291M
9%
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24Factbook / May / 2020/ www.avangrid.com
Credit Ratings as of 3/31/2020
LT Issuer/Default Rating
(Outlook)S&P Moody’s Fitch
AVANGRID
BBB+ (Stable)
A-2 CP
BBB Sr. Unsecured
Baa1 (Negative)
P-2 CP
Baa1 Sr. Unsecured
BBB+ (Stable)
F-2 CP
BBB+ Sr. Unsecured
NYSEGA- (Stable)
A- Sr. Unsecured
A3 (Stable)
A3 Secured
A3 Sr. Unsecured
BBB+ (Stable)
A- Sr. Unsecured
RG&E
A- (Stable)
A Secured
A- Sr. Unsecured
A3 (Stable)
A1 Secured
BBB+ (Stable)
A Secured
A- Sr. Unsecured
CMPA (Stable)
A Sr. Unsecured
A2 (Stable)
A2 Sr. Unsecured
BBB+ (Stable)
A Secured
A- Sr. Unsecured
UIA- (Stable)
A- Sr. UnsecuredBaa1 (Stable)
A- (Stable)
A Sr. Unsecured
CNGA- (Stable)
A- Sr. Unsecured
A3 (Positive)
A3 Sr. Unsecured
A- (Stable)
A Sr. Unsecured
SCGA- (Stable)
A Secured
A3 (Stable)
A1 Secured
A- (Stable)
A+ Secured
BGC A- (Stable) A3 (Stable)A- (Stable)
A Sr. Unsecured
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25Factbook / May / 2020/ www.avangrid.com
2. Avangrid Networks
2.1. Operating Utilities
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26Factbook / May / 2020/ www.avangrid.com
Operating Footprint
8 Regulated Utilities in NY, CT, ME & MA serving ~3.3M customers
Electricity Service 2019
Electricity Customers 2,261,180
Miles of Transmission Lines 8,703
Miles of Distribution Lines 70,995
Substations 819
Electricity Delivered 36,614 GWh
Natural Gas Service
Natural Gas Customers 1,016,737
Miles of Transmission Pipeline 127
Miles of Distribution Pipeline 23,018
Natural Gas Delivered 206,663,000 DTh
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27Factbook / May / 2020/ www.avangrid.com
Utilities in New York
New York State Electric and
Gas (NYSEG)2019
Service AreaMore than 40% of upstate NY
area (20,000 mi²)
Population served 2.5 million
Electricity Service42 counties, 147 cities and
villages, 372 towns
Electricity Customers
Residential
Non residential
902,593
778,248
124,345
Miles of Transmission Lines 4,548
Miles of Distribution Lines 35,134
Substations 429
Electricity Delivered 15,525 GWh
Natural Gas Service34 counties, 90 cities and
villages, 176 towns
Natural Gas Customers
Residential
Non residential
268,806
237,932
30,874
Miles of Transmission Pipeline 20
Miles of Distribution Pipeline 8,382
Natural Gas Delivered 57,511,000 DTh
Employees 1,771
Rochester Gas and Electric
(RGE)2019
Service Area2,700 mi² in western NY,
around Rochester
Population served 1 million
Electricity Service7 counties, 23 cities and
villages, 67 towns
Electricity Customers
Residential
Non residential
383,592
341,658
41,934
Miles of Transmission Lines 1,095
Miles of Distribution Lines 8,875
Substations 155
Electricity Delivered 7,072 GWh
Natural Gas Service7 counties, 25 cities and
villages, 53 towns
Natural Gas Customers
Residential
Non residential
317,661
293,513
24,148
Miles of Transmission Pipeline 105
Miles of Distribution Pipeline 8,999
Natural Gas Delivered 61,120,000 DTh
Employees 696
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28Factbook / May / 2020/ www.avangrid.com
Utilities in Maine and Massachusetts
Maine Natural Gas (MNG) 2019
Service Area361 mi² in central and
southern Maine
Natural Gas Service 12 communities
Natural Gas Customers
Residential
Non residential
4,974
3,530
1,444
Miles of Distribution Pipeline 216
Natural Gas Delivered 1,254,000 DTh
Central Maine Power (CMP) 2019
Service Area11,000 mi² in central and
southern Maine
Population served 1 million
Electricity Service14 counties, 346 cities, towns,
townships and plantations
Electricity Customers
Residential
Non residential
636,341
573,245
63,096
Miles of Transmission Lines 2,921
Miles of Distribution Lines 23,348
Substations 207
Electricity Delivered 9,039 GWh
Employees 875
Berkshire Gas Company
(BGC)2019
Service Area738 mi² in western
Massachusetts
Population served 191,601
Natural Gas Service 20 communities
Natural Gas Customers
Residential
Non residential
40,500
35,162
5,338
Miles of Distribution Pipeline 764
Natural Gas Delivered 10,444,000 DTh
Employees 120
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29Factbook / May / 2020/ www.avangrid.com
Utilities in Connecticut
United Illuminating (UI) 2019
Service Area 335 mi² southwestern CT
Population served 767,071
Electricity Service 17 communities
Electricity Customers
Residential
Non residential
338,654
304,670
33,984
Miles of Transmission Lines 139
Miles of Distribution Lines 3,638
Substations 28
Electricity Delivered 4,978 GWh
Employees 644 Connecticut Natural Gas
(CNG)2019
Service Area 724 mi² in CT
Population served 759,029
Natural Gas Service 26 communities
Natural Gas Customers
Residential
Non residential
181,527
165,590
15,937
Miles of Distribution Pipeline 2,185
Natural Gas Delivered 39,157,000 DTh
Employees 322
Southern Connecticut Gas
(SCG)2019
Service Area 555 mi² in CT
Population served 913,854
Natural Gas Service 24 communities
Natural Gas Customers
Residential
Non residential
203,269
183,141
20,128
Miles of Distribution Pipeline 2,472
Natural Gas Delivered 37,177,000 DTh
Employees 306
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30Factbook / May / 2020/ www.avangrid.com
Revenues & Customers(1)
Customers Revenues
Commercial
10%
Industrial
<1%
Other 1%
Residential
89%
ME 18%
CT 20%MA 11%
NY 51%
Commercial
27%
Industrial
6%Other 4%
Residential
63%
ME 12%
CT 35% MA 1%
NY 52%
(1) As of 12/31/2019.
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31Factbook / May / 2020/ www.avangrid.com
Regulated Generation Facilities
Operating Company Facility Location Facility TypeInstalled Capacity
(MW)
Year(s)
Commissioned
NYSEG Newcomb, NY Diesel Turbine 4.3 1967, 2017
NYSEG Blue Mountain, NY(1) Diesel Turbine 2.0 2019
NYSEG Long Lake, NY(1) Diesel Turbine 2.0 2019
NYSEG Eastern New York (6 locations) Hydroelectric 61.4 1921—1983
RGE Rochester, NY (3 locations) Hydroelectric 57.1 1917—1960
UI Connecticut (3 locations) Fuel cell / Solar 13.4(2) 2015—2017
• UI is party to a 50-50 joint venture with certain affiliates of Clearway Energy, Inc. in GCE Holding LLC, whose wholly owned subsidiary,
GenConn, operates two 200 MW(3) peaking generation plants in Devon and Middletown, both in Connecticut.
(1) Blue Mountain and Long Lake diesel turbines are rented facilities.
(2) Includes 2.2 MW of solar.
(3) Nameplate capacity.
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32Factbook / May / 2020/ www.avangrid.com
2. Avangrid Networks
2.2. Projects & Capex
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33Factbook / May / 2020/ www.avangrid.com
Major Projects – NY
In Progress:
• Leak Prone Main Replacement (Gas D)
✓ ~$166M (2019–2022) Infrastructure replacement to ensure system safety.
• Advanced Metering Infrastructure (AMI) (Electric & Gas D)
✓ ~$368M (2020-2022) for installation of 1.9M smart meters in NY beginning 2021. Request filed with May 2019 rate case for regulatory approval.
Potential significant impact on spend and schedule due to COVID-19. Update to be provided when joint proposal completed.
• Distributed System Implementation Plan (DSIP)
✓ ~$309M (2019-2022) for DSP technology platform investments including but not limited to grid automation & optimization, non wires alternative
projects, advanced data analytics, integrated planning tools, DER monitoring & control, and energy storage & electric vehicles in response to New
York’s Reforming the Energy Vision (REV).
• Brightline
✓ ~$382M (2019-2023) Requires compliance with the updated NERC Reliability Standard in its transmission system operating at 100 kV & above.
New assets & existing asset upgrades in NY mostly in 115 kV. Construction starting Q3 2020.
• Rochester Area Reliability Project (RGE T)
✓ ~$256M (2019-2021) Project close out expected in 2021. New and rebuild of ~28 miles of 345/115-kV transmission lines, a new 345/115-kV
Substation, plus upgrades at five substations.
NYSEG
& RGE
• Through NY Transco
✓ NY Transco AC Segment B project (T019) received approval from NYISO. The
project will utilize existing rights of way to increase UPNY-SENY transfer by
2,100 MW and has a Dec ’23 in-service date (~$120M Networks investment).
✓ Formed in 2014 to build FERC Transmission in NY by Avangrid (NYSEG &
RGE), ConEd, National Grid and Central Hudson.
✓ 2018 Rate Base of $196M (AGR investment 20%). ROE 10% (base ROE 9.5%,
0.5% incentive adder), Equity Ratio 53%. Rates in effect 6/1/16.
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34Factbook / May / 2020/ www.avangrid.com
Major Projects – NY & ME
In Progress:
• Brightline (T)
✓ ~$89M (2019-2023) Requires compliance with the updated NERC Reliability Standard in its transmission
system operating at 100 kV & above. New assets & existing asset upgrades in ME mostly in 115 kV.
CPCN permits to be filled during 2021 and 2022.
• MEPCO(1) Transmission Investments (T)
✓ ~$97M (2019-2022) Strategic & Other Rebuilds to address replacement of aging infrastructure.
• New England Clean Energy Connect (NECEC)
✓ See NECEC specific slides that follow.
CMP
(1) CMP ownership 78.3% of MEPCO.
Brightline Project Maps by State
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35Factbook / May / 2020/ www.avangrid.com
NECEC Transmission Project
Building the Grid of the Future
1,200 MW Transmission project delivering Canadian hydro-power to
Massachusetts EDCs
$950 million capital cost(1)
Expect all state permits by 2Q ’20 & final project approvals by 3Q ’20
Anticipate to be in the position to begin construction in 3Q ’20 with
targeted COD by year-end ’22
Already control 100% of rights of way
• 73% in existing transmission corridor
• 27% in industrial forest
(1) Excluding AFUDC.
PROJECT HIGHLIGHTS
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36Factbook / May / 2020/ www.avangrid.com
NECEC Project Economics
Note: Project economics are based on levelized, fixed-price transmission service agreements; therefore, capital spending amounts are not added to rate base & collected through a FERC tariff. ROEs
are expected to start lower and increase over contract life to achieve an equivalent 10.57% levelized average. All third party construction financing is incurred at the holding company level.
Capacity: 1,200 MW Transmission
Contract Price: $9.16/kW month(1) Year 1 (2023) escalating ~2% annually through Year 20
$7.38/kW month(2) Years 21-40
Depreciation: 40-Year Straight Line (GAAP) / 15-Year MACRS (Tax)
Tax Rate: 21% (Federal) / 8.93% (State-ME)
KEY PROJECT CRITERIA
(1) Equivalent to $12.55/MWh for a 100% load factor.
(2) Equivalent to $10.11/MWh for a 100% load factor.
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37Factbook / May / 2020/ www.avangrid.com
NECEC Timeline
NECEC Filing Status Expected Completion
MA DPU Approval of Contracts Filed July ’18 Approved June ’19
FERC Approval Filed August ’18 October ’18
MPUC Certificate of Public Convenience
& Necessity (CPCN)
Filed September ’17 May ’19
Maine DEP & LUPC Filed September ’17 LUPC Certification granted January ‘20
MDEP May 11, 2020
ISO-NE System Impact Study Filed April ’17 I.3.9 approval 2Q ’20
CCIS certificate issuance October ’20
US Army Corps of Engineers (USACE)
Individual Permit
Filed September ’17 ~ 90 Days After MDEP approval
Presidential Permit Filed July ’17 ~ 60 days after USACE & I.3.9 approvals
Municipal Approvals Applications submitted to date: 7
Approvals received to date: 1
As needed throughout construction period
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38Factbook / May / 2020/ www.avangrid.com
Major Projects – CT & MA
In Progress:
• Leak Prone Main Replacement (Gas D)
✓~$316M in CT & MA (2019-2022) Infrastructure replacement to ensure system safety.
• Gas Expansion Plan (Gas D)
✓~$102M (2019-2022) Expanding Natural Gas Sales in central & eastern CT in support of CT’s Comprehensive Energy Strategy
(CES) 2017 outlook: 30 miles of new main & 7,000 new customers. Opportunities to bring natural gas to new cities/towns:
CNG SCGBGC
Year Town/OpCo Miles of Main $M
2014 Essex, CT/SCG 6 $2.4
2015 Deep River, CT/SCG 4 $3.0
2015 East Hampton, CT/CNG 14 $6.8
2016 Coventry, CT/CNG 4 $2.9
2017 Bolton, CT/CNG 7 $4.5
2017 Hebron, CT/CNG 8 $5.6
UI
In Progress:
• Metro-North Rail Road Corridor (UI T)
✓ ~$62M (2019-2022) Increases capacity & reliability of the T lines along Metro-North corridor with investments such as Fairfield to
New Haven 115kV reconductoring.
• Coastal Substation Flood Mitigation (UI D and UI T)
✓ ~$151M (2019-2022) To address resiliency of those substations along the CT coastline.
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39Factbook / May / 2020/ www.avangrid.com
Networks Capex
426 482 535
9092
125200305
35384
74
74
82
131
137
130
93
133
-
75
281
103
132
104
50
60
69
57
83
85
55
60
50
17
19
15
7
7
6
85
10
47
2018A 2019A 2020E
Corp
MNG
BGC
CNG
SCG
UI T
UI D
NECEC
CMP - T
CMP - D
RGE - G
RGE - E
NYSEG - G
NYSEG - E
$1,386
$1,623
$2,014
(1) Includes facilities, IT, security, fleet, other.
Amounts may not add due to rounding.
(1)
$M
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40Factbook / May / 2020/ www.avangrid.com
2. Avangrid Networks
2.3. Regulatory
Note: Most recent ROE filings and rate case settlements can be found on the Regulatory page of the AGR website
http://www.avangrid.com/wps/portal/avangrid/Investors/investors/regulatory
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41Factbook / May / 2020/ www.avangrid.com
Rate Base Growth
2.07 2.25 2.41
0.59 0.61 0.651.39 1.45 1.500.50 0.52 0.490.90
0.93 0.941.46
1.47 1.451.04
1.11 1.140.590.67 0.680.550.59 0.620.480.54
0.550.11
0.140.12
0.07
0.08 0.08
2018A 2019A 2020E
MNG
BGC
CNG
SCG
UI T
UI D
CMP - T
CMP - D
RGE - G
RGE - E
NYSEG - G
NYSEG - E
$9.74$10.35 $10.65
$B
Average Rate Base 2018-2020E
(1) Per 2019 10-K report. Does not include MEPCO (2018: $0.97; 2019: $0.94; 2020: $0.12).
Amounts may not add due to rounding.
Average '18-'20
Electric - D&T 56%
FERC - T 21%
Gas 24%
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42Factbook / May / 2020/ www.avangrid.com
Base Allowed ROEs
NYSEG9.75%
CMP T10.57-11.74%
RGE9.75%
UI T10.57-11.74%
UI D9.10%
CMP D9.25%
SCG9.25%
CNG9.30%
BGC9.70% MNG
9.55%
7.70%
8.20%
8.70%
9.20%
9.70%
10.20%
10.70%
11.20%
11.70%
Base: 9.0%
Base: 9.0%
(2)
Bubble size reflects each company’s relative rate base(1)
(1) 2019 Average Rate Base of ~$10.4B.
(2) Includes 75bp allowance before sharing.
(3) Does not include -1.00% management efficiency adjustment, in place until customer service metrics are achieved for 18 months starting 3/1/2020.
(2)
Allowed returns as of March 31, 2020
(3)
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43Factbook / May / 2020/ www.avangrid.com
Regulatory Framework
Multi-year Rate Plans
12%
Non-Multi-year Rate Plans
66%
FERC Formula
Rates22%
Rate Base Covered by
Multi-year Rate Plans
Forward Test Year
77%
FERC Formula
Rates22%
Historic Test Year
1%
Rate Base Recovered
Under Forward Test Year
Amounts may not add due to rounding.
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44Factbook / May / 2020/ www.avangrid.com
New York Rate Plans
NY State Electric
(NYSEG-E)
NY State Gas
(NYSEG-G)
Rochester Electric
(RGE-E)
Rochester Gas
(RGE-G)Jurisdiction New York
Regulator New York Public Service Commission (NYPSC)
Term 3 year rate case settled June 2016. Tariffs increase effective May 1, 2016
Annual Rate Increases
Avg. Rate Base (’19) $2,250 M $610M $1,453M $516M
Allowed ROE / Equity Ratio 9.0% / 48%
Earnings SharingEarnings sharing at 50% equity:
100% up to 9.75%; 50% up to 10.25%; 25% up to 10.75%; 10% above 10.75%
Rate Year Forecast
Trackers /
Reconciled Costs
• Recovery of more than $260M for past storm expenses.
• Rate Adjustment Mechanism up to $40M/yr ($19.3M NYSEG-E, $5.2M NYSEG-G, $11.4M RGE-E & $4.4M RGE-G) for major storms,
gas leak prone pipe replacement, NYSEG Electric Pole Attachment revenues, and REV costs & fees that are not covered by other
recovery mechanisms.
• Other: Revenue Decoupling, Environmental, Electric & Gas Vegetation Management, Economic Development Programs, Pension &
Other Post Retirement Benefits, Property Taxes, Energy Supply (pass through), Variable Rate & New Fixed Rate Debt, Accounting,
Tax, Legislative, Low Income, etc. (Joint Proposal’s pages 34-40 & 155-158)
ROE filing Annually (filed end of July)
Ach
ieve
d R
OE
s 2018 (after-sharing)(1) 6.2% 8.6% 9.9% 8.3%
2017 (after-sharing)(2) 8.6% 10.0% 9.8% 9.7%
2016 (after-sharing)(3) 8.7% 9.8% 9.1% 9.8%
2015 (after-sharing) 7.9% 9.7% 6.0% 4.2%
2014 (after-sharing) 9.7% 10.0% 9.5% 7.3%
2013 (after-sharing) 9.7% 8.6% 9.6% 9.8%
(1) ROEs for the 3rd rate year (5/1/18 - 4/30/19) under 3 year rate plan settled June 2016.
(2) Amended ROEs for the 2nd rate year (5/1/17 - 4/30/18) under 3 year rate plan settled June 2016.
(3) Amended ROEs for the 1st rate year (5/1/16 - 4/30/17) under 3 year rate plan settled June 2016.
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45Factbook / May / 2020/ www.avangrid.com
Connecticut Rate Plans
United Illuminating Distribution
(UI-D)
Southern Connecticut Gas
(SCG)
Connecticut Natural Gas
(CNG)Jurisdiction Connecticut
Regulator Public Utilities Regulatory Authority (PURA)
Term3 year plan 2017-2019
Effective January 2017
3 year plan 2018-2020
Effective January 2018
3 year plan 2019-2021
Effective January 2019
Annual Rate Increases
Year 1 - $1.5M
Year 2 - $4.7M
Year 3 - $5.0M
Year 1 - $9.9M
Year 2 - $4.6M
Year 3 - $5.2M
Avg. Rate Base (’19) $1,112M $587M $538M
Allowed ROE 9.10% 9.25% 9.30%
Allowed Equity Ratio 50% 52% 54% ’19 / 54.5% ’20 / 55% ’21
Earnings Sharing 50/50 above ROE 50/50 above ROE 50/50 above ROE
Rate Year Forecast
Trackers /
Reconciled Costs
· Revenue Decoupling · Revenue Decoupling · Revenue Decoupling
· Major Storms · System Expansion Rate · System Expansion Rate
· Energy Supply (pass through) · Energy Supply (pass through) · Energy Supply (pass through)
· Low Income · Low Income · Low Income
· Distribution Integrity Mgmt Program · Distribution Integrity Mgmt Program
ROE filing Quarterly Quarterly Quarterly
Ach
ieve
d R
OE
s 2019 (after-sharing)(2) 10.1%(1) 8.7%(1) 8.0%(1)
2018 (after-sharing) 9.6%(1) 8.4%(1) 6.7%(1)
2017 (after-sharing) 9.3%(1) 8.1%(1) 5.9%(1)
2016 (after-sharing) 6.8%(1) 8.1%(1) 8.7%(1)
2015 (after-sharing) 8.5% 8.2% 8.6%
2014 (after-sharing) 9.7% 8.7% 9.9%
(1) Based on actual equity ratios vs. allowed.
(2) ROEs for the twelve months ended 12/31/2019.
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46Factbook / May / 2020/ www.avangrid.com
Maine & Massachusetts Rate Plans
Central Maine Power
Distribution (CMP-D)
Maine Natural Gas
(MNG)
Berkshire Gas Company
(BGC)Jurisdiction Maine Massachusetts
Regulator Maine Public Utilities Commission (MPUC) Department of Public Utilities (DPU)
Term 1 year plan 3/1/20 – 2/28/2110 year plan thru 4/26/16
subject to Year 7 review
3 year plan 2019-2021
Effective January 2019
Annual Rate Increases Year 1 - $17.4MYear 1 - $2.3M
Years 2 & 3 - Freeze
Avg. Rate Base (’19) $933M $76M $136M
Allowed ROE9.25% less 1.00% mgmt. efficiency
adjustment(1) 9.55% 9.7%
Allowed Equity Ratio 50% 50% 54%
Earnings Sharing No 50/50 above 12.05% No
Rate Year Forecast Forecast Historic
Trackers /
Reconciled Costs
· Revenue Decoupling
· Major Storms
· Greater Minor Storm recovery
($8.1M/year vs. $4M prev.)
· Vegetation mgmt. funding increased 25%
· Environmental
· Gas Supply (pass through)
· No Revenue Decoupling
· Gas Supply (pass through)
· Revenue Decoupling
· Gas Supply (pass through)
ROE filing Annually Annually Annually
Ach
ieve
d R
OE
s 2019 5.8% NA NA
2018 4.2% NA NA
2017 12.7% NA NA
2016 11.4% NA NA
2015 7.6% NA NA
2014 9.6% NA NA
(1) ROE management efficiency adjustment until customer service metrics achieved for 18 months.
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FERC Jurisdiction Rate Plans
Central Maine Power
Transmission (CMP-T)
United Illuminating
Transmission (UI-T)
Regulator Federal Energy Regulatory Commission (FERC)
Term Annual filing by July 31
Avg. Rate Base (2018) $1,469M $672M
Allowed ROE 10.57-11.74% 10.57-11.74%
Equity Ratio Actual (~53-59%) Actual (~53-57%)
Earnings Sharing No No
Decoupling No No
Trackers /
Reconciled Costs
• Annual true-up to actual operating expenses and revenue requirement
• Capital investments not included in rate base until they are placed in service,
unless a specific FERC incentive is granted allowing for the inclusion of
Construction Work in Progress (CWIP) in rate base
• We are allowed to calculate an Allowance for Funds Used During Construction
(AFUDC) as a non-cash carrying charge added to CWIP and recovered over the
life of the asset on all other projects that do not receive the CWIP in rate base
incentive
ROE filing Annually
Ach
ieve
d R
OE
s(1
)
2018 11.8% 11.3%
2017 11.4% 11.3%
2016 11.2% 11.4%
2015 10.6% 11.4%
2014 10.5% 12.1%
2013 11.3% 12.2%
Main projects
receiving 11.74%:
• MPRP
• Middletown-
Norwalk
• NEEWS
ROE 11.74%
$1.4B
ROE 10.57%
$0.3B
ROE 11.07%
$0.4B
T FERC ~$2.1B Rate Base by
earned ROE ($M)
(1) Based on actual equity ratios vs allowed.
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Networks Decoupling & Uncollectibles by State
New York
Maine
Connecticut
• All customer classes; Annual compliance filing with rate adjustment
effective 7/1, collected over next 12 months
• Proposed to change annual rate increase limitation to 2% of total
distribution revenue vs. 2% of each revenue class; excess deferred until
following year
• Annual transmission tariff adjustment (no retail T decoupling)
Massachusetts
• All customer classes; Collection/refund over following rate year;
effective 8/1
• Interim surcharge/credit triggered when actual accumulated billed
delivery service revenues are +/- 1.5% of target, limited to one/yr &
recovered over longer of 4 months/end of rate year
• Full revenue decoupling for all customer classes; Annual decoupling
filing as soon as data available with charge/credit applied for 12 months
following rate year
• Annual transmission tariff adjustment & reconciliation (full revenue
decoupling)
• No recovery mechanism currently in place
• No recovery mechanism in place
• On April 28th, Commission opened an inquiry into the effect of COVID-19
on customers’ ability to pay their bills, acknowledging the Commission-
declared moratorium on disconnects & requesting information from utilities
on the effects on customers’ ability to pay & utilities overdue receivables
• Transmission rate segment receives an allocation of uncollectibles;
included in annual transmission tariff adjustment
• CT PURA ordered establishment of a regulatory asset for any
COVID-19 costs, including uncollectibles
• UI hardship uncollectibles are reconciled annually, including true up
for prior year actuals plus upcoming year forecast
• UI Generation & Transmission rate segments receive an allocation
of non-hardship uncollectibles, adjusted twice/yr
• CNG & SCG hardship uncollectibles above amount in rates ($3M
each) are deferred & recovered in next rate case
• No recovery mechanism in place • All customer classes; semi-annual rate filing with recovery over next
6-month season
• Recovery capped at 3% of total revenues for most recent seasonal
period; excess deferred until next season
UncollectiblesDecoupling
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2. Avangrid Networks
2.4. How to Model
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Networks Seasonality – Electric & Gas Sales
5,000
7,000
9,000
11,000
1Q 2Q 3Q 4Q
Electric Delivery (GWh)
2015 2016 2017 2018 2019 2020 Avg.2015-2020
• Relative stability quarter to quarter
(100% decoupled)
• Strongest quarters 1Q & 4Q with colder
weather (100% decoupled)
10,000
30,000
50,000
70,000
90,000
1Q 2Q 3Q 4Q
Gas Delivery (mcf)
2015 2016 2017 2018 2019 2020 Avg. 2015-2020
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How to Model
Rate Base * Equity Ratio(1) * Regulatory ROE (8 utilities)
Other Income:
• Allowance for funds used during construction (AFUDC)
• Carrying costs on regulatory assets & liabilities not included in Rate Base
• Be sure to tax effect values
Equity Investments (GenConn, NY Transco) +
+
+
Approach for Network Income Calculation
Networks “Income”
(1) Connecticut companies, CMP, and Transmission based on actual equity ratio.
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Economics
• Utilities accrue AFUDC on longer-term construction projects prior to being placed in-service
• Utilities accrue Carrying Costs on certain regulatory assets & liabilities not in rate base
• This has an impact on current earnings, but there is no current cash flow impact
AFUDC
&
Carrying
Costs
Earned
ROE
• Based on formulas approved by regulator and used in annual compliance filings
• Formulas based on operating income with certain regulatory adjustments
Equity
Income
• 50% JV with affiliates of Clearway Energy (GenConn) in two regulated peaking plants with ROE of 9.85%
• 20% investment in NY Transco: Rate Base $196M, ROE 10%, Equity Ratio 53%
Rate
Base
• Rate Base = Gross plant in service - Book depreciation - Deferred income taxes +/- working capital +/-
regulatory assets & liabilities (not accruing carrying costs) + prepaid + materials and supplies
• Average rate base for a 13-month period used for gas and electric distribution and UI transmission.
Year-end rate base used for CMP Transmission.
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How to Calculate Earned ROE - Example
Utility Return on Equity is Tracked via
Regulatory Compliance Filings
(Excl. FERC Transmission)
Prescribed Method for NYSEG:
• Top half of NYSEG Schedule A: Page 2 of 9 shows
Gas Regulated Net Income after Adjustments
are made to Book (GAAP) Net Income
• Schedule A: Pages 6-9 provide detail of
Regulatory Adjustments
✓ Line 1 – Exclude Storage Gas Component of MFC Revenue
✓ Line 4 – Exclude ESM Adjustments & Tax Act Savings Deferral
✓ Line 7 – Remove Shareholder Incentive
✓ Line 9 – Limit Exec Incentive Comp/Exclude Non-Qualified
Pension Expense
✓ Line 14 – Exclude Other Income
✓ Line 15 – Interest Synchronization with Rate Base
✓ Line 17 – Tax Changes Related to Adjustments
Link to Regulatory Filings for Avangrid Companies: http://www.avangrid.com/wps/portal/avangrid/Investors/investors/regulatory
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54Factbook / May / 2020/ www.avangrid.com
How to Calculate Earned ROE - Example (Cont’d)
• Rate Base used is a 13-Month Average
(Schedule A: Page 3 of 9)
• Common Equity Percentage is calculated for
the Entire Entity (NYSEG) and if it exceeds the
Allowed Equity Ratio, then it is adjusted down,
in this case to 50% (Schedule A: Page 4 of 9)
• ROE before Sharing is Regulated Net Income
as a Percentage of the Equity Component of
Rate Base
• If the Achieved ROE is above the Earnings
Sharing Target, a percentage of the Additional
Earnings would be Shared with Customers
(Line 25 = 23 * 24)
(Line 26 = 22 / 25)
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3. Avangrid Renewables
3.1. Portfolio Characteristics
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Avangrid Renewables – Historical Growth & Outlook
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Renewables Capacity Growth
2009-2012 ITC(3) Cash Grant
Projects (~3,416 MW)
2013-2016 Selective Growth –
Baffin Wind and Amazon Wind
Farm East (410 MW)
1999-2003 Total
26 MW
(1) Avangrid Renewables also owns 536 MW Cogeneration (2001), 100 MW Peaking (2009).
(2) Solar capacity is being reported in MWdc.
(3) 2009-2012 Projects funded with Section 1603 ITC cash grants (Renewables received ~$2B in cash for ~$6B investment; no PTCs).
(4) Onshore Wind 4.7 GW, Solar 8.4 GW, & Offshore Wind 4.9 GW.
7.3 GW in Operation (FY ’19)
(1)(2)MW
2021 – Lund Hill,
Bakeoven,
Montague Solar
(488 MW)
2017 – El Cabo, Tule I,
Deerfield, Twin Buttes
II (534 MW) + Gala
Solar (70 MW)
Pipeline
of
18.0 GW(4)
2018 – Wy
’East Solar
(13 MW)
2019 – Montague,
Coyote Ridge,
Karankawa, Patriot
(753 MW)
2020 – Otter Creek,
Tatanka, La Joya,
Roaring Brook
(700 MW)
2022 – Mohawk,
Camino Solar +
Storage (193 MW)
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Operating Footprint
3rd Largest Wind Operator in the U.S. with ~7.5 GW Wind & Solar in Operation
~542 MW in Construction with COD by Late ’20*
AVANGRID
Wind
Solar
Thermal
Under Construction
As of 3/31/2020. Includes joint ventures. Under construction is net of 155 MW Tatanka Ridge, 306 MW La Joya (I & II), and 81 MW Roaring Brook.
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Portfolio Characteristics(1)(2)
(1) As of 3/31/2020.
(2) Includes joint venture assets.
(3) Solar capacity is being reported in MWdc.
✓ Total Installed capacity of 7.5 GW in 21 states & 7 electric power markets;
7.34 GW of wind and 130 MW solar PV(3) generation
✓ 69% of installed capacity under long-term contract
✓ 9.4 years average remaining PPA life
✓ Target 75%-85% capacity under contract
✓ Weighted Average PPA price realized to date = $47/MWh.
✓ Escalators on ~43% of PPAs
✓ Industry-leading energy management capabilities
✓ 24/7 operations, maintenance, dispatch, & load balancing for 65(2) operating wind & solar assets
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Portfolio Characteristics(1)(2)
(1) As of 3/31/2020.
(2) Includes joint venture assets.
Contracted = 69% Merchant = 31%
33%
25%
14%
27%17%
5%
39%
39%
• Price exposure managed with PPAs, fixed price power & gas hedges
• Target overall 75% PPA or Power Hedge
Contracted & Merchant Installed Capacity Distributed Across Regions
South/
TX
MidCon
Northeast
West
South/
TX
Northeast
MidCon
West
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Balance of 2020 2021 2022 2023
PPA Hedges Open Position
70%71%
21%
8%
69%
24%
63%
5%
79% PPA + Hedges 78% PPA + Hedges 76% PPA + Hedges 68% Hedged
8%
22%
7%
32%
Win
d &
So
lar
(GW
h)
Targeting 75-85% PPAs plus Hedges
• Chart reflects existing capacity & projects currently in construction; PTCs are not considered hedges
• PPA percent will increase further as additional contracted projects already executed in ’20 through ’22 begin construction
(1) As of 3/31/2020. Amounts may not add due to rounding.
Contracted & Merchant Evolution(1)
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Renewables Counterparty Credit (1)
Trading/Master Agreement (3%)PPA/Structured (97%)
AA32%
A25%
BBB40%
< BBB or NR
3%
64% Utilities
24% Municipal
8% Technology
4% Other
97%
Investment Grade
AAA3% AA
11%
A51%
BBB32%
< BBB or NR
3%
71% Utilities
21% Municipal
6% Financial
2% Other
97%
Investment Grade
Customer Type Customer Type
(1) As of 3/31/2020. Amounts may not add due to rounding.
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3. Avangrid Renewables
3.2. Facilities & Contracts
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Wind Facilities(1) 1/4
(1) As of 3/31/2020.
(2) Jointly owned; capacity amounts represent only Renewables’ share of the facility.
Location Wind Project Turbines MW CODNERC
Region
Contracted/
MerchantPTC/ ITC Tax Equity
Arizona Dry Lake I 30 (Suzlon S88, 2.1 MW) 63 2009 WECC Contracted ITC Cash Grant
Dry Lake II(2) 31 (Suzlon, 2.1 MW) 33 2010 WECC Contracted ITC Cash Grant
California Dillon 45 (Mitsubishi, 1 MW) 45 2008 WECC Contracted PTC Expired
Manzana 126 (GE, 1.5 MW) 189 2011 WECC Contracted ITC Cash Grant
Mountain View III 34 (Vestas V47, 0.66 MW) 22 2003 WECC Merchant PTC Expired
Phoenix Wind Power 3 (NMicon-Vestas,0.66MW) 2 1999 WECC Merchant PTC Expired
Shiloh 100 (GE, 1.5 MW) 150 2006 WECC Contracted PTC Expired
Tule 57 (GE, 2.3MW) 131 2017 WECC Contracted PTC
Colorado Colorado Green 108 (GE, 1.5 MW) 162 2003 WECC Contracted PTC Expired
Twin Buttes 50 (GE, 1.5 MW) 75 2007 WECC Contracted PTC Expired
Twin Buttes II30 (Gamesa, 2.1 MW)
6 (Gamesa, 2.0 MW)75 2017 WECC Contracted PTC
Illinois Otter Creek38 (Vestas, 3.8MW)
4 (Vestas, 3.4MW)158 2020 MRO Contracted PTC
Providence Heights 36 (Gamesa G87, 2.0MW) 72 2008 MRO Merchant PTC Expired
Streator Cayuga Ridge South 150 (Gamesa, 2.0MW) 300 2010 MRO Merchant ITC Cash Grant
Iowa Barton 80 (Gamesa, 2.0 MW) 160 2009 MRO Contracted ITC Cash Grant
Flying Cloud 29 (GE, 1.5 MW) 44 2004 MRO Contracted PTC Expired
New Harvest 50 (Gamesa G87, 2.0MW) 100 2012 MRO Contracted ITC Cash Grant
Top of Iowa II 40 (Gamesa G87, 2.0MW) 80 2008 MRO Contracted PTC Expired
Winnebago I 10 (Gamesa G83, 2.0MW) 20 2008 MRO Contracted PTC Expired
Kansas Elk River 100 (GE, 1.5 MW) 150 2005 MRO Contracted PTC Expired
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Wind Facilities(1) 2/4
(1) As of 3/31/2020.
(2) Jointly owned; capacity amounts represent only Renewables’ share of the facility.
Location Wind Project Turbines MW CODNERC
Region
Contracted/
MerchantPTC/ ITC Tax Equity
Massachusetts Hoosac 19 (GE, 1.5 MW) 29 2012 MRO Contracted ITC Cash Grant
Minnesota Elm Creek 66 (GE, 1.5 MW) 99 2008 MRO Contracted PTC Expired
MinnDakota 100 (GE, 1.5 MW) 150 2008 MRO Contracted PTC Expired
Trimont 67 (GE, 1.5 MW) 100 2005 MRO Contracted PTC Expired
Elm Creek II 62 (Mitsubishi, 2.4) 149 2010 MRO Contracted ITC Cash Grant
Moraine I 34 (GE, 1.5 MW) 51 2003 MRO Merchant PTC Expired
Moraine II 33 (GE, 1.5 MW) 50 2009 MRO Contracted ITC Cash Grant
Missouri Farmers City 73 (Gamesa G87, 2.0 MW) 146 2009 MRO Merchant ITC Cash Grant
New Hampshire Groton 24 (Gamesa G87, 2.0MW) 48 2012 NPCC Contracted ITC Cash Grant
Lempster 12 (Gamesa, 2.0 MW) 24 2008 NPCC Contracted PTC Expired
New Mexico El Cabo 149 (Gamesa, 2.0 MW) 298 2017 CAISO Contracted PTC Tax Equity
New York Hardscrabble 37 (Gamesa G90, 2MW) 74 2011 NPCC Merchant ITC Cash Grant
Maple Ridge I(2) 70 (Vestas V82, 1.65 MW) 116 2006 NPCC Merchant PTC Expired
Maple Ridge II(2) 27 (Vestas V82, 1.65 MW) 45 2006 NPCC Merchant PTC Expired
North Carolina Amazon Wind Farm U.S. East 104 (Gamesa, 2.0 MW) 208 2016 SERC Contracted PTC
North Dakota Rugby 71 (Suzlon S88, 2.1 MW) 149 2009 MROPartially
ContractedITC Cash Grant
Ohio Blue Creek 152 (Gamesa G90, 2.0 MW) 304 2012 RFCPartially
ContractedITC Cash Grant
Oregon Hay Canyon 48 (Suzlon S88, 2.1 MW) 101 2009 WECC Contracted ITC Cash Grant
Klondike I 16 (GE, 1.5 S – 1.5 MW) 24 2001 WECC Contracted PTC Expired
Klondike II 50 (GE, 1.5 S – 1.5 MW) 75 2005 WECC Contracted PTC Expired
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Wind Facilities(1) 3/4
(1) As of 3/31/2020.
(2) Jointly owned; capacity amounts represent only Renewables’ share of the facility.
Location Wind Project Turbines MW CODNERC
Region
Contracted/
MerchantPTC/ ITC Tax Equity
Oregon Klondike III
44 (Siemens, 2.3 MW);
80 (GE, 1.5 SLE, 1.5 MW);
1 (Mitsubishi, 2.4 MW)
224 2007 WECCPartially
ContractedPTC Expired
Klondike IIIa 51 (GE, 1.5 MW) 76 2008 WECC Contracted PTC Expired
Leaning Juniper II74 (GE, 1.5 MW);
42 (Suzlon, 2.1 MW)199 2011 WECC
Partially
ContractedITC Cash Grant
Montague 56 (Vestas 3.6MW) 201 2019 WECC Contracted PTC
Pebble Springs 47 (Suzlon S88, 2.1 MW) 99 2009 WECC Contracted ITC Cash Grant
Star Point 47 (Suzlon, 2.1 MW) 99 2010 WECC Contracted ITC Cash Grant
Pennsylvania Casselman 23 (GE, 1.5 MW) 35 2008 RFC Merchant PTC Expired
Locust Ridge I 13 (Gamesa G87, 2.0) 26 2006 RFC Contracted PTC Expired
Locust Ridge II 50 (Gamesa G83, 2.0 MW) 100 2009 RFCPartially
ContractedITC Cash Grant
South Chestnut 22 (Gamesa, 2.0 MW) 44 2012 RFC Contracted ITC Cash Grant
South Dakota Buffalo Ridge I 24 (Suzlon, 2.1 MW) 50 2009 MRO Contracted PTC Expired
Buffalo Ridge II 105 (Gamesa G87, 2.0 MW) 210 2010 MRO Contracted ITC Cash Grant
Coyote Ridge(2) 39 (GE, 2.5 MW) 19 2020 MRO Contracted PTC
Texas Baffin 101 (Gamesa G97, 2.0 MW) 202 2015 TRE Merchant PTC
Barton Chapel 60 (Gamesa, 2.0 MW) 120 2009 TRE Merchant ITC Cash Grant
Karankawa 124 (GE 2.4 MW) 307 2020 TRE Contracted PTC
Peñascal I 84 (Mitsubishi, 2.4 MW) 202 2009 TREPartially
ContractedITC Cash Grant
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Wind Facilities(1) 4/4
(1) As of 3/31/2020.
(2) Jointly owned; capacity amounts represent only Renewables’ share of the facility.
Location Wind Project Turbines MW CODNERC
Region
Contracted/
MerchantPTC/ ITC Tax Equity
Texas Peñascal II 83 (Mitsubishi, 2.4 MW) 199 2010 TREPartially
ContractedITC Cash Grant
Patriot 63 (Vestas 3.6 MW) 226 2019 TRE Merchant PTC Tax Equity
Vermont Deerfield 15 (Gamesa, 2.0 MW) 30 2017 NEISO Contracted PTC
Washington Big Horn I 133 (GE, 1.5 MW) 200 2006 WECC Contracted PTC Expired
Big Horn II 25 (Gamesa, 2.0 MW) 50 2010 WECC Contracted ITC Cash Grant
Juniper Canyon 63 (Mitsubishi, 2.4 MW) 151 2011 WECCPartially
ContractedITC Cash Grant
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Solar & Thermal Facilities(1)(2)
(1) As of 3/31/2020.
(2) Solar capacity is being reported in MWdc. MWac: Copper Crossing = 10; San Luis = 30; Gala = 56; Wy’East = 10.
(3) Jointly owned; capacity amounts represent only Renewables’ share of the facility.
(4) Operated pursuant to a sale-and-leaseback agreement.
Location Project Type MW CODNERC
Region
Contracted/
MerchantPTC/ ITC
Arizona Copper Crossing Solar Ranch(3) Solar 12 2011 WECC Contracted ITC Cash Grant
Colorado San Luis Valley Solar Ranch(4) Solar 35 2012 WECC Contracted ITC Cash Grant
Oregon Gala Solar Solar 70 2017 WECC Contracted ITC Cash Grant
Wy’East Solar Solar 13 2018 WECC Contracted ITC Cash Grant
Klamath Cogeneration Thermal 536 2001 WECC Partially Contracted n/a
Klamath Peakers Thermal 100 2009 WECC Partially Contracted n/a
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Wind Contracts(1) 1/3
(1) As of 3/31/2020.
(2) Jointly owned, amount represents our ownership share.
Wind Project Name Contract Counterparty MW Start End ISO
Barton WPPI Energy 30 2009 2029 MISO
Barton Northern IN PSC 50 2009 2024 MISO
Barton Dairyland Power Co-op 80 2017 2022 MISO
Big Horn I MSR Public Power Agency 200 2009 2026 WECC
Big Horn II MSR Public Power Agency 50 2010 2035 WECC
Blue Creek American Municipal Power 52 2012 2022 PJM
Blue Creek The Ohio St. University 50 2013 2032 PJM
Buffalo Ridge I Northern IN PSC 50 2009 2024 MISO
Buffalo Ridge II Uniper Global Commodities 210 2017 2020 MISO
Colorado Green CO PSC 162 2003 2039 WECC
Coyote Ridge(2) Google 19 2019 2031 MISO
Deerfield Green Mountain Power Corporation 30 2017 2042 NE
Amazon Wind Farm U.S. East Amazon 208 2017 2030 PJM
Dillon SCE 45 2008 2028 CAISO
Dry Lake I Salt River Project 63 2009 2029 WECC
Dry Lake II(2) Salt River Project 33 2010 2030 WECC
El Cabo Southern California Edison 298 2017 2037 CAISO
Elk River Wind Empire District Electric 150 2005 2025 SPP
Elm Creek Great River Energy 99 2008 2027 MISO
Elm Creek II Uniper Global Commodities 149 2017 2022 MISO
Flying Cloud Interstate Power & Light 44 2018 2028 MISO
Groton NSTAR Electric 48 2012 2022 NE
Hay Canyon Snohomish County Public Utility 50 2009 2024 WECC
Hay Canyon Snohomish County Public Utility 51 2009 2027 WECC
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Wind Contracts(1) 2/3
(1) As of 3/31/2020.
Wind Project Name Contract Counterparty MW Start End ISO
Hoosac NSTAR Electric 29 2012 2022 NE
Karankawa Austin Energy 207 2019 2034 ERCOT
Karankawa Large C&I 100 2019 2031 ERCOT
Klondike I Bonneville Power Admin 24 2002 2022 WECC
Klondike II Portland General Electric 75 2005 2035 WECC
Klondike III PG&E 85 2007 2023 WECC
Klondike III Bonneville Power Admin 50 2007 2027 WECC
Klondike III Eugene Water & Electric Board 25 2007 2027 WECC
Klondike III Puget Sound Energy 50 2007 2027 WECC
Lempster NH PSC 24 2008 2023 NE
Leaning Juniper II Large C&I Customer 68 2017 2026 BPA
Locust Ridge I PPL EnergyPlus 26 2007 2027 PJM
Locust Ridge II Frankford Heath Care System 6 2011 2020 PJM
Locust Ridge II Thomas Jefferson University/Hospital 23 2011 2021 PJM
Locust Ridge II Magee Rehabilitation Hospital 1 2011 2020 PJM
Locust Ridge II Main Line Health System 17 2011 2020 PJM
Locust Ridge II Albert Einstein Healthcare 10 2011 2020 PJM
Manzana LA Dept. of Water & Power 39 2013 2023 CAISO
Manzana SDG&E 100 2012 2032 CAISO
Manzana Silicon Valley Power 50 2012 2032 CAISO
MinnDakota Northern States Power 150 2008 2022 MISO
Montague Large C&I 201 2019 2039 WECC
Moraine II Northern States Power 50 2009 2029 MISO
New Harvest ComEd 46 2012 2032 MISO
New Harvest Ameren IL 54 2012 2032 MISO
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Wind Contracts(1) 3/3
Wind Project Name Contract Counterparty MW Start End ISO
Otter Creek T-Mobile 158 2020 2035 PJM
Pebble Springs Southern California Public Power Auth 99 2009 2027 CAISO
Penascal I City Public Service Board San Antonio 77 2009 2024 ERCOT
Penascal I City of Bryan 30 2011 2025 ERCOT
Penascal II Southern Texas Electric Coop 101 2011 2024 ERCOT
Rugby MO River Energy Services 40 2009 2029 MISO
Rugby Central MN Municipal Power 5 2011 2025 MISO
Rugby Central MN Menial Power 9 2012 2027 MISO
Rugby Upper Midwest Municipal 30 2012 2032 MISO
Shiloh I PG&E 75 2006 2021 CAISO
Shiloh I Clean Power SF 25 2016 2021 CAISO
Shiloh I Peninsula Clean Energy 25 2019 2023 CAISO
Shiloh City of Palo Alto 25 2006 2021 CAISO
South Chestnut DC Dept. of General Services 46 2015 2035 PJM
Star Point Modesto Irrigation District 99 2010 2030 NA
Top of Iowa II Madison G&E 30 2008 2028 MISO
Top of Iowa II WPPI Energy 50 2008 2027 MISO
Tule 1 Southern California Edison 131 2018 2033 CAISO
Trimont Great River Energy 101 2005 2020 MISO
Twin Buttes CO PSC 75 2007 2027 WECC
Twin Buttes II Tri-State Generation & Trans. Assoc. 75 2017 2042 WECC
Winnebago I Dairyland Power Co-Op 20 2008 2028 MISO
Total MWs of Operating Wind with Contracts 5,053(2)
(1) As of 3/31/2020.
(2) Total may not tie due to rounding.
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Other Wind Contracts(1)
Project Name Contract Counterparty MW Start ISO
Tatanka Ridge #1: Google; #2: Dairyland Power Cooperative 155 2020 MISO
La Joya Public Service of New Mexico 166 2020 WECC
La Joya II Public Service of New Mexico 140 2020 WECC
Roaring Brook(2) NYSERDA 81 2020 NYISO
Total MWs of Wind Under Construction 542
Wind Future Renewals
Shiloh Peninsula Clean Energy (increase to existing) 125 2021 CAISO
Total MWs of Renewals 125
Offshore Wind
Vineyard Wind #1(4) Massachusetts EDCs 400No earlier
than 2023NE
Total MWs of Offshore 400
(1) As of 3/31/2020.
(2) REC’s contracted.
(3) Avangrid’s 50/50 partnership with Copenhagen Infrastructure Partners (CIP).
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Solar & Thermal Contracts(1)(2)
Project Name Contract Counterparty MW Start End ISO
Solar
Copper Crossing(3) Salt River Project 12 2011 2036 WECC
San Luis Public Service of Colorado 35 2012 2032 WECC
Gala Large C&I 70 2017 2042 WECC
Wy’East Portland General Electric 13 2018 2033 WECC
Total MWs of Operating Solar with Contracts 130
Solar with Executed Contracts and Not in Construction
Mohawk(4) NYSERDA 125 2021 NYISO
Bakeoven Portland General Electric 80 2021 WECC
Lund Hill Puget Sound Energy 193 2021 WECC
Montague Solar Portland General Electric 215 2021 WECC
Camino Solar(5) City of Riverside 57 2022 CAISO
Total MWs with Executed Contracts and Not in Construction 670
Thermal
Klamath Peaker Portland General Electric (seasonal) 100 2019 WECC
Total with Contracts 100
(1) As of 3/31/2020.
(2) Solar capacity is being reported in MWdc. MWac: Copper Crossing = 10; San Luis = 30; Gala = 56; Wy’East = 10; Mohawk = 91; Bakeoven = 60; Lund Hill = 150; Montague = 163; Camino = 44.
(3) Jointly owned, amount represents our ownership share.
(4) REC’s contracted.
(5) The 57 MW noted for Camino solar excludes the battery storage impact which will deliver an additional 11 MW for 4 hours.
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3. Avangrid Renewables
3.3. Drivers of Growth
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Renewables Development & Investment Strategy
Driving optimal value includes partnerships and sales
• Development pipeline is more than double installed capacity
o Safe Harbored 80% & 60% PTCs
o More viable projects that can be completed prior to PTC phase-out than contemplated in Long-
Term Outlook
• Provides attractive opportunities to optimize our pipeline through partnership strategies,
strategic sales, & alliances
o Examples:
• Sale of Coyote Wind project to WEC in 80/20 partnership
• Sale of 50% stake in two Arizona projects to Axium Infrastructure
• Continued focus on additional new build – develop, own, operate
• Storage is increasingly important & combined with nearly all solar RFPs
o Constructing new 10 MW, 2-hour battery to help with balancing as part of our new Balancing
Authority in the Northwest
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AVANGRID Offshore Wind
AVANGRID is Well-Positioned for Leadership in U.S. Offshore Market
AVANGRID Offshore Wind Projects Benefit from Significant,
Proven Global Offshore Experience
Iberdrola & ScottishPower
o West of Duddon Sands & Wikinger ON TIME & ON BUDGET
o East Anglia 1 progressing according to plan
o Additional ~4 GW pipeline of projects under development in Europe
• Deep technical knowledge & engineering experience
• Well developed supply chain, relationships & purchasing power
• Experience managing offshore O&M
• First-mover in offshore wind
• Utility footprint in Northeast
• Significant, proven U.S. onshore renewables experience
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Global Offshore Wind Experience
Deep experience of the teams that are building Vineyard Wind provides full confidence in the project
IBERDROLA (IBE) Copenhagen Infrastructure Partners (CIP)
Projects in Operation: 990 MW
Veja Mate (402 MW)(2)
Beatrice (588 MW)(2)
Pipeline: ~4,500 MW
North Sea
Beatrice588 MW(2)
Veja Mate402 MW(2)
(1) Including 10 MW corresponding to Wikinger Sud.
(2) CIP funds own 23% of Veja Mate and 35% of Beatrice.
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AVANGRID Offshore Wind Projects
(1) AVANGRID’s 50/50 partnership with CIP.
• Vineyard Wind’s(1) 800 MW project selected in MA’s
Offshore Wind RFP in May ’18
• Vineyard Wind’s OCS-A 0501 Lease Area
• Project COD no earlier than 2023
• 20-year contract
• BOEM’s schedule for delivering the Final Supplemental
Environmental Impact Study is 11/13/20 & Record of
Decision by 12/18/20
• Other key permits have been secured
• Anticipate qualifying for 18% ITC
• ~156 MW (summer) / ~278 MW (winter) awarded capacity
in ISO-NE capacity auction in February ’20 (including 54
MW awarded in ’19)
• Vineyard Wind’s(1) 804 MW project was selected in CT’s
Offshore Wind RFP in Dec ’19
• Vineyard Wind’s OCS-A 0501 Lease Area
• COD expected by year-end 2025
• 20-year contract
• Reduces regional greenhouse gas emissions, creates jobs,
& direct economic benefits of ~$890M, including energy
cost savings to CT ratepayers, & up to $26.5M in workforce
development initiatives
• Partnership with Marmon Utility, LLC in CT to supply
offshore inter-array cable cores, creating the first U.S. Tier
1 offshore wind supplier
• Establishes Bridgeport, CT as an offshore wind hub
HighlightsHighlights
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Vineyard Wind Project Economics
Capacity: 800 MW
JV Ownership: 50% Avangrid Renewables / 50% Copenhagen Infrastructure Partners
Contract Price: Phase 1: $74/MWh Year 1 escalating 2.5% annually through Year 20
Phase 2: $65/MWh Year 1 escalating 2.5% annually through Year 20
Net Capacity Factor: ~46% (P65)
Tax Rate: 21% (Federal) / 8% (State-MA)
Capital Structure: Equity / Debt / Tax Equity
KEY PROJECT CRITERIA
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KEY Vineyard Wind Approvals Filing Status Expected Completion
Federal:
Site Assessment Plan (SAP) Filed March ’17 Approved May ’18
Construction & Operation Plan (COP) Filed Dec ’17 COP Completeness & Sufficiency Review
completed Mar ’18
Draft Environmental Impact Statement (EIS) published by BOEM & consultation finalized Jan ’19
Supplement to the Draft EIS – expected June 12, 2020
Final EIS – expected November 13, 2020
Final Record of Decision & Issuance of Permit - Expected December 18, 2020
Federal permitting agencies (expected March 18, 2021, up to 90 days from ROD per BOEM schedule):
Army Corps of Engineers – water related
National Marine Fisheries Service – marine mammals
EPA – air emissions
State:
MA DPUC Approval of Contracts with EDCs Filed July ’18 Approved April ’19
MA Environmental Policy Act (MEPA) Review Final Environmental Impact Report (FEIR)
submitted Dec ’18
Final Certificate issued Jan ’19
Regional & Local permits In progress following certification of FEIR Cape Cod, Martha’s Vineyard & Edgartown
Commissions
Other TBD
MA Energy Facilities Siting Board (EFSB) Filings in Dec ’17 & Feb ’18 Decision received May ’19
Vineyard Wind Timeline
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Offshore Wind Opportunities
AVANGRID Lease Areas
Vineyard Wind, MA
50% (Joint with CIP)up to 1.2 GW(1)
Projects:
Vineyard Wind
Park City Wind
Vineyard Wind, MA
50% (Joint with CIP)up to 1.2 GW(1)
1
2
(1) Includes 50% ownership; 100% is 2.4 GW.
1
2
STTargets
(MW)
Selections to Date
(MW)
MA1,600 by ’27
1,600 by ’35
MA I: 800 (Vineyard Wind, May ’18)
MA II: 804 (Oct ’19)
CT 2,000 by ’30
CT I: 200 (Jun ’18)
CT II: 200 (Dec ’18)
CT III: 804 (Park City Wind, Dec ’19)
NY 9,000 by ’35NY I: 1,700 (Jul ’19)
NY II: RFP for 1,000 - 2,500 MW in ’20
RI 1,000 by ’20 RI I: 400 (May ’18)
Kitty Hawk, NC
100% Avangrid
Renewablesup to 2.5 GW
(Site Assessment
Plan approved by
BOEM 2/20/2020)
3
3
AVANGRID Opportunities in
Northeast U.S.
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Renewables Growth
Avangrid Renewables has relationships with large C&I customers & utilities, reflecting:
• Long-term commitment & history as high-quality developer/ owner/ operator
• Strong balance sheet
• Ability to offer unique energy-based products (such as load following & balancing capabilities with ownership of
thermal assets & rights to hydro power, storage solutions, & ownership of transmission rights)
Growing Demand With Interest in ‘Green’ Energy
Increasing Competition Impacts Pricing, but Costs also Declining
• Corporate Sustainability Goals
(including up to 100% renewable
energy targets)
• Community Choice Aggregators:
(Cities across the U.S. are striving
for 100% renewable targets
Emerging Market Demand Utilities
• State RPS Standards & Coal
Retirement Goals, for example:
CA 100% by ’45 NY 100% by ’40
ME 100% by ’50 CT 48% by ’30
WA 100% by ’45 OR 50% by ’40
• Ownership of development sites & expertise
provides opportunities to partner with utilities
that want to include renewables in rate base
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Renewables Long Term Outlook is Positive
Other Opportunities in Addition to Traditional Onshore Wind Projects
Solar Wind & Solar Combinations
• Solar pipeline in various stages of development,
primarily focused on ’20 & beyond
• Tariff phases down from 30% to 10% in mid-’20’s
• Solar industry supply chain will adapt
• Efficiency gains as technologies improve
• Opportunities to combine wind & solar, co-located to
more fully utilize fixed infrastructure (transformers,
transmission)
• Addition of batteries depends on market structures that
allow for revenue streams for ancillary services or PPA
customers to include in contract
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Competitive Advantage
C&I DIRECT RETAIL SERVICE
PPA
$$
Corporate
PartnerAvangrid
Renewables
Projects
Avangrid
Renewables
ESS
MWhsMWhs
Transmission
Grid Bundled Renewable Energy
+
Additional MWhs to meet
C&I demand from
Avangrid’s Green Merchant
Portfolio
Leading the Gold standard
with customized “GREEN”
solutions for our corporate
partners with direct delivered
renewables
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3. Avangrid Renewables
3.4. Projects & Capex
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Renewables Projects
Project ~Total Project MW Type Contract Counterparty ~COD
COD in 2020 (158 MW)
Otter Creek (IL) 158 Wind T-Mobile Mar ’20
Executed Contracts (~1,623 MW)
Tatanka Ridge (SD) 155 Wind #1: Large C&I; #2: Dairyland Cooperative Late ’20
La Joya & La Joya II (NM) 306 Wind Public Service of New Mexico Late ’20
Roaring Brook (NY) 81 Wind NYSERDA – RECs Late ’20
Lund Hill Solar (WA) 193 Solar Puget Sound Energy Mid-Late ’21
Bakeoven Solar (OR) 80 Solar Portland General Electric Late ’21
Montague Solar (OR) 215 Solar Portland General Electric Late ’21
Mohawk (NY) 125 Solar NYSERDA - RECs Early ’22
Camino Solar (CA) 57 Solar City of Riverside Late ’22
Camino Solar (CA) 11 Battery City of Riverside Late ’22
Vineyard Wind #1 (MA) 400 Offshore Massachusetts EDCs No earlier than ’23
Repowering (~366 MW)
Colorado Green (CO) 162 Repower Public Service Co. of Colorado 1H ’20
Mountain View III (CA) 22 Repower California Choice Energy Authority 1H ’20
Trimont (MN) 100 Repower Great River Energy 1H ’20
Klondike II (OR) 81 Repower Project has PPA; Incr. repower production Merchant Late ‘20
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Renewables Capex
241
1,000
51345
172
80
13
196
173
25
7
10
58
152
182
2018A 2019A 2020E
Onshore Wind & Solar Offshore Wind Repowering Thermal Other
$382
$1,526
$957
Amounts may not add due to rounding.
(1) Includes corporate, IT, capitalized interest & labor, and other.
(1)
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3. Avangrid Renewables
3.5. Economics
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Wind Seasonality
AGR Normal Period for Wind Production based on Life of Assets Average(1)
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
32.0%
34.0%
36.0%
38.0%
40.0%
1Q 2Q 3Q 4Q
Wind Net Capacity Factor 2011-2020
2011 2012 20132014 2015 20162017 2018 20192020 Life of Assets Avg
(1) Based on owned assets.
Life of Assets annual average ~30.3%
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Renewables Average Prices
1Q ’20 Avg. Total Price(1) PPA Merchant & Hedge
West $ 55.4 / MWh $ 62.5 / MWh $ 26.8 / MWh
North $ 32.8 / MWh $ 35.7 / MWh $ 12.2 / MWh
Central $ 26.4 / MWh $ 35.1 / MWh $ 16.1 / MWh
East $ 46.6 / MWh $ 54.4 / MWh $ 18.8 / MWh
South $ 28.4 / MWh $ 38.2 / MWh $ 25.9 / MWh
(1) Includes PPA, merchant & RECS.
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PTC Evolution(1)
(1) As of 3/31/2020. Amounts may not add due to rounding.
✓ ’19-’20 wind projects funded with Tax-Equity; liabilities rolling off
✓ From ’09-’12, projects funded with Section 1603 ITC cash grants; Avangrid Renewables received
~$2B in cash for ~$7B investments vs. retaining PTCs on these projects
2018A 2019A 2020P
Retained PTCs $73 $57 $92
TEI PTCs $18 $33 $77
Total $91 $90 $169
$ M
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Renewables P&L Components
+ Wind & Solar (~90% of Renewable Gross Margin in 2019)
✓ Installed Capacity (MW) * Capacity Factor * Sale Price
✓ Actuals for year-end 2019:
• Installed Capacity:
▪ 7.4 GW after achieving COD for 831 MW of wind projects in 2019
• Average Net Capacity Factor:
▪ Owned Wind ~29.1%
• Average Sale Price
▪ Merchant plus RECs $33.40/MWh
▪ PPA $50.60/MWh
▪ Total Average Price $45.50/MWh
+ Thermal & other (~10% of Renewable Gross Margin in 2019)
✓ Include Klamath (used to firm and balance loads for certain PPA contracts in the Northwest), biomass
(contractual purchase of energy and resale from biomass facility owned by third party), transmission sales
and limited proprietary power trading
Gross
Margin
O&M
Expenses• 1/3 related to non-wind operational aspects (growth, thermal, corporate costs …)
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Renewables P&L Components
Depreciation
Interest
Expense
• ~37 year average for windfarms on a straight line basis, net of ITC amortization
• Financial expenses on intercompany debt and any other borrowings;
excludes TEI financing costs, included within Minority interest under HLBV accounting
Income Tax
• MACRs tax treatment allows wind & solar assets to be depreciated over 5 years, recorded in the tax line
and captured through deferred tax assets
• ITC & PTC can only be utilized at consolidated level and after NOLs are monetized
✓PTCs generated over 10 years and can be used over 20 years
✓AGR is considered one taxpayer. After the NOLs are monetized, annual PTC utilization is limited to
75% of the consolidated tax liability
Other Income
& Deduction• Consists of: Finance income (primarily capitalized interest) combined with gains on non-current assets,
offset by other deductions (non-service pension costs & charitable giving)
Minority
Interest
• Minority Interest driven by HLBV accounting for tax equity structures; the HLBV method allocates earnings to the
noncontrolling interest, which considers the cash and tax benefits provided to the tax equity investors
Other Taxes
Expense• Property, Franchise, and Payroll Taxes
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Accounting Criteria
• P&L
✓ GAAP (10Q,10K): For periods after 1/1/2018, PTCs with Tax Equity are indirectly included in Net
income/(loss) attributable to non-controlling interests and retained PTCs are booked in the income tax line.
Prior to that, PTCs with Tax Equity were booked in revenues and retained PTCs in the income tax line.
✓ IFRS (projections): All PTCs are booked in revenues.
• Balance Sheet
✓ For periods after 1/1/2018, PTCs with Tax Equity reduce ‘Non-controlling interests’ in the Equity section. In
prior periods, PTCs with Tax Equity reduced ‘Tax equity financing arrangements - VIEs’ in the Non-current
Liabilities section.
✓ Retained PTCs reduce deferred income taxes.
• Cash Flow
✓ Retained PTCs hit the ‘Deferred taxes’ line in Cash Flow from Operating Activities.
✓ For periods after 1/1/2018, PTCs with TEI impact the ‘Distributions to noncontrolling interests’ line under Cash
Flow from Financing Activities. For prior periods, PTCs with TEI impacted ‘Payments on tax equity financing
arrangements’. These lines include payments of PTCs and remaining debt/equity.
PTC
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Accounting Criteria
• P&L
✓ GAAP (10Q,10K): Booked on D&A (they lower D&A), below EBITDA
✓ IFRS (projections): Booked as Other Operating Income, above EBITDA
• Cash Flow
✓ ITCs provide an initial deferred tax benefit equal to 50% of the total ITC, recognized in year one
• Wind farms under tax equity structures are fully consolidated in the consolidated balance sheet and the
results of their operations (including depreciation) are reported in the consolidated statement of operations.
Investors share is reported as Minority Interest
• Recorded as a financing obligation and amortized with the allocation to the tax equity investor of its share of
cash distributions, MACRS, PTCs, and the tax impact of taxable income
ITC
Tax
Equity
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4. Reconciliations
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Reconciliation 2020 Guidance
Networks $1.69 - $1.94
Renewables $0.35 - $0.55
Corporate ($0.19) -( $0.05)
U.S. GAAP EPS(1) $2.06 - $2.26
Adjustments:
Restructuring/Forward 2020+ costs 0.02
Mark-to-market adjustments 0.04
Accelerated depreciation on repowering 0.05
Adjusted EPS $2.17 - $2.37
Reconciliation of Non-U.S. GAAP Adjusted 2020 Outlook - Estimated EPS
Networks $1.70 - $1.95
Renewables $0.45 - $0.65
Corporate ($0.19) - ($0.05)
Adjusted EPS $2.17 - $2.37
Assumes approx. 309.5 million shares outstanding
Amounts may not add due to rounding; Estimates are not expected to be additive
Avangrid, Inc.
Reconciliation of Non-U.S. GAAP Adjusted 2020 Outlook - Estimated EPS
(1) Includes Restructuring/Forward 2020+ costs, the unrealized MtM gain or loss that
will be recognized in '20 & an estimate of accelerated depreciation on repowering
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Reconciliation AVANGRID CFO & Debt
FY 2018 FY 2019
CFO pre-WC / Debt 22.5% 16.0%
Cash Flow From Operations 1,791 1,593
Changes in Working Capital (53) (121)
CFO pre-WC 1,738 1,472
Employer Contributions, Net of Service Cost 4 24
Capitalized Interest (26) (55)
Depreciation on Operating Leases 35 13
CFO pre-WC, Adj. 1,751 1,454
Short-term Debt 587 560
Long-term Debt - Gross 5,762 7,446
Debt 6,349 8,006
Accounts Payable to Affiliates 52 59
Unamortized Debt 35 38
Pension Liability 830 821
Operating Leases 522 140
Debt, Adj. 7,788 9,064
Note: Ratio calculations are based on the company’s interpretation of the Moody’s
methodology, and may not include all rating agency adjustments.