Eversource is in the process of selling its existing 50 percent interests in three jointly-owned offshore wind projects, signaling a strategic shift away from direct ownership in this sector. This decision is expected to result in significant cash inflows upon completion of the sales.

Eversource initiated an exploratory assessment of monetizing its water distribution business, indicating a potential strategic shift or restructuring of its assets. This could lead to a significant change in the company's business portfolio.

Despite the divestitures, Eversource projects significant capital expenditures in its regulated utility businesses, including electric distribution and transmission, and natural gas distribution. This signals a continued focus on core regulated operations.

The company acknowledges risks related to the successful completion of the offshore wind project sales, including regulatory approvals and the ability to meet all closing conditions. Failure to complete these sales could adversely affect the company's financial condition.

The New York Public Service Commission denied the petition to amend the OREC contract for the Sunrise Wind project, creating uncertainty about the project's future and requiring a re-bidding process. This presents a challenge for management in securing the project's viability.

The company highlights ongoing efforts to improve system reliability and resiliency, including vegetation management and infrastructure upgrades. These efforts aim to mitigate the impact of climate change and severe weather events, demonstrating a proactive approach to operational challenges.

The company acknowledges the increasing sophistication and frequency of cyberattacks targeting critical infrastructure, which could severely impair operations and lead to the disclosure of confidential information. This highlights a persistent and escalating risk.

The company identifies numerous risks associated with its offshore wind business, including the ability to complete sales, secure tax credits, and manage construction costs. These risks could materially affect the company's financial position and future results.

The company acknowledges that regulatory and legislative actions could impact its ability to recover costs and earn an adequate return. This includes challenges related to rate proceedings and potential changes in allowed rates of return.

FERC's policy encouraging competition for transmission projects, even within existing service territories, could expose Eversource to increased competition and regulatory considerations, potentially affecting rate base growth.

Each state in which Eversource operates has Renewable Portfolio Standards (RPS) requirements, which require fixed percentages of energy supply to come from renewable sources, creating a market for these sources.

Customers in Eversource's service territories have the option to choose their energy suppliers, which can impact the company's market share and revenue streams.

System improvements include installing new and stronger infrastructure like poles, wires and related system equipment, as well as enhanced year-round tree trimming, demonstrating a focus on operational resilience.

The grid modernization plan will enhance electric distribution infrastructure to improve resiliency and reliability and increase opportunities to facilitate integration of distributed energy resources and electric vehicle infrastructure.

Eversource collaborates with other utility providers and industry partners across the country to better understand storm hazards and develop solutions to improve system reliability.

The grid modernization plan will enhance electric distribution infrastructure to improve resiliency and reliability and increase opportunities to facilitate integration of distributed energy resources and electric vehicle infrastructure.

The company is investigating emerging technologies such as energy storage and automation programs that improve reliability.

The company is evaluating opportunities for its natural gas system and exploring alternative, less carbon-intense, technologies like renewable natural gas and geothermal for heating.

Eversource projects significant capital expenditures over the next five years, with substantial allocations to electric distribution, electric transmission, natural gas distribution, and water distribution, as well as information technology.

Eversource has made a corporate commitment to reduce Scope 1 and 2 GHG emissions from its operations and reach carbon neutrality by 2030.

The company has established metrics and annual goals on its corporate scorecard, including safety performance, talent diversity and employee engagement, that drive accountability for progress across all areas of the business.

The Board's Governance, Environmental and Social Responsibility Committee provides oversight of climate issues, environmental matters and compliance.

Eversource has made a corporate commitment to reduce Scope 1 and 2 GHG emissions from its operations and reach carbon neutrality by 2030.

Eversource continues to develop a diverse workforce and has DEI goals and initiatives for diversity in leadership promotions and new hires, diverse external hires, number of diverse applicants for jobs, key talent, workforce representation including female employees, diverse employees, and veteran hires, leadership engagement, community support and supplier spending.

Global climate change continues to receive increasing focus from the federal and state governments, potentially leading to additional requirements and additional rules and regulations that could impact how Eversource operates its businesses.

Supply constraints in New England have led to significant increases in commodity costs which may impact Eversource's ability to accomplish strategic objectives.

Customer migration is limited to energy supply service, it has no impact on NSTAR Electric's electric distribution business or its operating income.