Factbook. May Avangrid, utility of the future

Transcription

1 Factbook May 2018

2 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 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 our business, results of operations or financial condition. 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 that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation, the risks and uncertainties set forth under the section entitled Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2017, which is on file with the Securities and Exchange Commission (SEC) and available on our investor relations website at and on the SEC website at Additional information will also be set forth in subsequent filings with the SEC. You should consider these factors carefully in evaluating for-ward looking statements. 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 presentation whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. About AVANGRID AVANGRID, Inc. (NYSE: AGR) is a diversified energy and utility company with approximately $32 billion in assets and operations in 27 states. The Company operates regulated utilities and electricity generation through two primary lines of business, Avangrid Networks and Avangrid Renewables. Avangrid Networks includes eight electric and natural gas utilities, serving 3.2 million customers in New York and New England. Avangrid Renewables owns and operates 7.1 gigawatts of electricity capacity, primarily through wind power, with presence in 22 states across the United States. AVANGRID employs approximately 6,600 people. For more information, visit Investors@AVANGRID.com 2

3 Legal Notice Use of Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with U.S. GAAP, AVANGRID considers certain non-gaap financial measures that are not prepared in accordance with U.S. GAAP, including adjusted net income, adjusted EPS, adjusted gross margin and adjusted EBITDA. 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 because it eliminates the impact of financing and certain non-cash charges as well as allow for an evaluation of AVANGRID with a focus on the performance of its core operations. 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 provide adjusted net income, which is adjusted to reflect the effect of mark-to-market changes in the fair value of derivative instruments used by AVANGRID to economically hedge market price fluctuations in related underlying physical transactions for the purchase and sale of electricity, adjustments for the non-core Gas Storage business, and the impairment of certain investments and excludes the sale of certain equity investments. We define adjusted EBITDA as net income attributable to AVANGRID, adding back income tax expense, depreciation, amortization, impairment of non-current assets and interest expense, net of capitalization, and then subtracting other income and earnings from equity method investments. We also define adjusted gross margin as adjusted EBITDA adding back operations and maintenance and taxes other than income taxes and then subtracting transmission wheeling. The most directly comparable U.S. GAAP measure to adjusted EBITDA and adjusted gross margin is net income. We believe that presenting these non-gaap financial measures is 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 provide adjusted EPS, which is adjusted net income converted to an earnings per share amount. We provide adjusted net income and adjusted earnings per share, which are adjusted to reflect the effect of mark-to-market changes in the fair value of derivative instruments used by AVANGRID to economically hedge market price fluctuations in related underlying physical transactions for the purchase and sale of electricity, adjustments for the non-core Gas Storage business including certain losses related to its sale, and restructuring charges primarily associated with reorganizing to better align our people resources with business demands and priorities as part of the Forward program. We define adjusted EBITDA as net income attributable to AVANGRID, adding back income tax expense, depreciation, amortization, impairment of non-current assets and interest expense, net of capitalization, and then subtracting other income and earnings from equity method investments. We also define adjusted gross margin as adjusted EBITDA adding back operations and maintenance and taxes other than income taxes and then subtracting transmission wheeling. The most directly comparable U.S. GAAP measure to adjusted EBITDA and adjusted gross margin is net income. We believe that presenting these non-gaap financial measures is 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 provide adjusted EPS, which is adjusted net income converted to an earnings per share amount. 3

4 Index 1. AVANGRID 1.1. Description Long Term Plan Financing Avangrid Networks 2.1. Operating Utilities Projects & Capex Regulatory How to Model Avangrid Renewables 3.1. Portfolio Characteristics Facilities & Contracts Drivers of Growth Projects & Capex Economics Reconciliations

5 1. AVANGRID 5

6 1. AVANGRID 1.1. Description 6

7 AVANGRID is Focused on Regulated & Renewables Businesses Formed by merger between Iberdrola USA and UIL in Dec 2015 Networks 81.5% Owned by Iberdrola, S.A. Renewables NYSE: AGR BBB+ Credit Rating 8 regulated utilities in NY, CT, ME, MA Rate Base $9.1B Customers Served ~3.2M Miles of Transmission Lines ~9k Miles of Electric Distribution Lines ~71k Miles of Gas Distribution Pipeline ~24k Third largest Wind Operator in the U.S. Wind & Solar Installed Capacity ~6.5 GW Projects Under Construction ~0.5 GW 7

8 AVANGRID Investment Highlights Asset & Regulatory Mix Offers Geographic & Business Diversity 8 regulated utilities in 4 states with $9.1B rate base (1) ~6.5 GW wind & solar in operation with ~75%-85% contracted or hedged Strong Growth Opportunities in Regulated Assets & Contracted Renewables Rate Base CAGR ~9% ( 16-22) (2) ~8 GW onshore wind & solar pipeline (+ ~ 4 GW offshore wind) (3) Attractive financial performance & balance sheet strength Adjusted EPS (4) CAGR 8-10% ( 16-22) (2) Lowest leverage in the utility sector Commitment to increase the dividend in 18 Implementation of the Utility of the Future Opportunities beyond 22, including Offshore Wind Investment in Advanced Metering Infrastructure (AMI) & Smart Grid Initiatives Innovative renewables solutions Leading, Sustainable U.S. Energy Company with a Focus on Clean Energy 90% Emission Free Capacity & CO 2 emissions, 8 times lower than average U.S. utility industry in 16 (4) Carbon Disclosure Project Score: A- (1) As of 12/31/2017, including electric transmission and electric and gas distribution (2) February 20, 2018 Long-Term Outlook (3) Based on National Renewable Energy Laboratory s estimate of 3 MW per square kilometer. Actual size of the wind projects TBD. (4) U.S. Energy Information Administration 2016 figures. 8

9 AVANGRID Geographic Presence ~ $32 billion in assets with a presence in 25 states (1) 3rd largest wind operator in the U.S. ~ 6.5 GW installed capacity (wind & solar) Wind Solar Thermal Networks AVANGRID Operations Headquarters in Orange, CT (1) AVANGRID completed sales of the Gas Trading and Gas Storage businesses on March 1, 2018 and May 1, 2018, respectively. 9

10 Renewables Fuel cells 4, % 90% -13.0% 14.8% 4, % 90% -13.0% 14.8% Peaking Onshore generators wind (1) 4, % 87% 50.0% 15.8% 4, % 87% 50.0% 15.8% Klamath Hydro Cogeneration (2) % 2% 16.8% -29.1% % 2% 16.8% -29.1% TOTAL Solar 5, % 1% 15.0% 69.2% 5, % 1% 15.0% 69.2% Fuel cells 20 0% -13.0% 20 0% -13.0% Operational Data 1Q 2018 Peaking generators 3 0% 50.0% 3 0% 50.0% AVANGRID s Installed Capacity (3) Klamath Cogeneration Net Electricity (2) Production % 16.8% AVANGRID s 556Installed 10% Capacity 16.8% (3) TOTAL 5,3261Q Q 100% % 1Q 5, Q % 15.0% 1Q Q 2017 AVANGRID AVANGRID GWh % Weight MW % Weight % YoY GWh MW % Weight % YoY MW % Weight MW % Weight Renewables 4,767 6,627 90% 14.8% 89% Renewables 4,767 6,037 90% 88% 14.8% 6,627 89% 6,037 88% AVANGRID s Installed Capacity (3) Onshore wind (1) 4,620 6,389 87% 15.8% 85% Onshore 4,620 5,855 wind 87% 85% 15.8% 6,389 85% 5,855 85% 1Q Q 2017 AVANGRID Hydro % -29.1% 2% Hydro % -29.1% 119 2% 119 2% 106MW % Weight 1% 50MW % Weight Solar 44 1% 69.2% Solar 44 1% 69.2% 106 1% 50 1% Renewables 6, % 6, % Fuel cells 20 0% -13.0% Fuel cells 20 0% -13.0% 13 0% 13 0% Peaking Onshore generators wind ,389 0% 50.0% 3% 85% 209 5, % 3% 85% Peaking generators 50.0% 212 3% 209 3% Klamath Hydro Cogeneration (2) % % 9% 2% Klamath Cogeneration 10% 9% (2) 2% 16.8% 636 9% 636 9% TOTAL Solar 5,326 7, % 15.0% 100% 1% 5,326 6, % 1% TOTAL 15.0% 7, % 6, % Fuel cells 13 0% 13 0% Peaking generators 212 3% 209 3% AVANGRID s Installed Energy Delivered Capacity (3) by Networks Klamath Cogeneration (2) 636 9% 636 9% TOTAL 1Q 7, % 1Q 6, % AVANGRID GWh MW % Weight % YoY GWh MW % Weight % YoY Renewables Electricity 6,627 9,993 89% 3% 6,037 9, % 88% AVANGRID s Energy Delivered by Networks Natural Onshore Gas wind 25,778 6,389 85% 6% 25,778 5, % 85% 1Q Q 2018 AVANGRID Hydro 119 2% 119 2% GWh % YoY GWh % YoY AVANGRID s Solar Emissions Indicators 106 1% 50 1% Electricity 9,993 3% 9, % Fuel cells 13 0% 13 0% 1Q Q 2017 Peaking Natural generators Gas 25, % 6% 25, % 6.0% CO 2 emissions over the period (g CO 2 /kwh) Klamath Cogeneration (2) 636 9% 636 9% CO 2 emissions over the period (lbs CO 2 /MWh) TOTAL AVANGRID s Emissions Indicators 7, % 6, % 1Q Q 2017 (1) Owned & JV AVANGRID s (2) CO 2 emissions Energy over the Delivered period (g by CONetworks 2 /kwh) Includes 100MW of Klamath peaking generator (3) CO Nameplate 2 emissions over the period (lbs CO capacity 2 /MWh) 1Q Q AVANGRID GWh % YoY GWh % YoY (1) Electricity Owned & JV 9,993 3% 9, % (2) Natural Includes Gas 100MW of Klamath peaking generator 25,778 6% 25, % (3) Nameplate capacity AVANGRID s Emissions Indicators 1Q Q

11 Operational Data Revenue Detail AVANGRID Revenue Detail (Excluding Networks Gas Companies, Enstor Gas, and Corporate) (millions) FY 2017 Segment $ % Weight % YoY Networks 2, % 5.0% Hydro 36 1% 5.5% Nuclear Renewables 1, % 3.1% Solar 20 2% 6.0% Biomass 40 4% 1.1% Wind % 3.9% 11

12 Recognized Leader for Sustainability Delivering energy in a sustainable manner CO 2 emissions intensity 8 times lower than average U.S. utility industry in 16 (1) Emission Free Capacity o AVANGRID (2) ~89% o U.S. Average (3) ~19% Ambitious targets to reduce CO 2 emissions intensity o 25% reduction by 20 vs. 15 o Carbon neutral by 35 Carbon Disclosure Project Score of A- One of only 6 U.S. Utilities Thomson Reuters 2017 Top 100 Global Energy Leader One of only 7 companies globally that earned > 60% of their revenues from environmentally beneficial products & services (1) Source U.S. Energy Information Administration 2016 figures. (2) Includes 118 MW hydro (Networks). (3) EIA report, Year-end 2017 summer capacity utility scale. 12

13 Focus on Strong Corporate Governance Committed to ethical principles, transparency & leadership Controlled company with: Majority voting in uncontested elections (implemented in 17) Eight directors not affiliated with Iberdrola, six of which are Independent Separate Compensation, Nominating & Corporate Governance Committee Named 2017 North American utility with the best corporate governance for 2 nd consecutive year by Ethical Boardroom publication Finalist in the 2016 NYSE Governance Awards (1) Source U.S. Energy Information Administration 2016 figures. 13

14 1. AVANGRID 1.2. Long Term Plan as of February 20,

15 17-22 Investments ~$14.4B invested in Peak in 19 with new wind projects, repowering, AMI & Smart Grid Average Annual Investment ($B) +7% $2.25 $2.41 Renewables 36% $ % $ % Networks 64% $ % $ % Feb '17 LTP Feb '18 LTP ( 17-20) ( 17-22) Delivering earnings growth through 22 & beyond Amounts may not add due to rounding. 15

16 17-22 Investments Confident in Long Term Outlook Investments Total investments ~87% Secured or Highly Likely $9.3B $5.1B $14.4B Likely 38% Likely 13% Highly Likely Secured 9% 53% Highly Likely 12% Highly Likely 13% 42% Secured 87% Secured 75% Amounts may not add due to rounding. Networks Renewables Total Secured: Approved or program Highly Likely: AMI MEPCO 388 MidCoast ME Brightline Secured: PPA /contract Highly Likely: Advanced stage contract negotiations Likely: Engineering, site assessments applications 16

17 Long Term Outlook Extending Plan Two Years to 22 EPS Adjusted EPS (1) 8-10% CAGR ~$3.25 to ~$3.60 $2.04 $ % CAGR ~$3.30 to ~$ Confirming CAGR of ~8-10% Non linear growth: 19 impacted by PPA & PTC expirations, 10 MW new capacity in 18 & late 19 CODs (1) See Appendix for calculation of Adjusted EPS and reconciliations to EPS. 17

18 17-22 Networks Investments Secured Investments Comprise 87% Capex ($B) $0.62 $2.47 $9.30 $1.23 $B UPSIDE BASE Secured $1.28 $4.31 $2.47 $8.07 Highly Likely 0.02 $0.59 $0.62 $1.23 TOTAL $1.30 $4.90 $3.09 $9.30 $4.31 $0.02 $1.28 $0.0 $0.0 $0.59 $8.07 $4.9 '17 '18-'20 '21-'22 '17-'22 Amounts may not add due to rounding. Secured includes: Approved & ongoing programs DSIP ~$170M Brightline ~$355M MEPCO 388 ~$90M Highly Likely includes: AMI ~$510M MEPCO 388 ~$115M Brightline ~$485M Midcoast ME ~$80M 18

19 17-22 Renewables Investments Execution, Safe Harbor & Strong Pipeline Provide Significant Opportunity Installed Capacity (MW) ,744 +1, Wind Solar TOTAL Secured 1, ,446 Highly Likely (Advanced stage negotiations) Likely (Engineering, site assessments, applications) 210 UPSIDE ,088 BASE TOTAL , , ,446 Safe Harbor: 2 GW 100% PTC 1 GW 80% PTC +590 (1) '17 '18-20 '21-22 ' Q 18 Update: Highly Likely projects in Long-Term Outlook ( 17-22) has increased to 300 MW (1) Includes 10 MW in 18, ~921 MW in 19 and ~343 MW in

20 Networks Highlights Rate Base CAGR ~9% ( 16 22) Rate Base ($Billions) Operating Highlights $8.7 67% $14.5 ~85% Rate Base secured with multiyear rate agreements & FERC formula rates ROEs: earning into sharing bands Rate Base increases with investments, absence of bonus depreciation, & remeasurement of deferred tax assets due to tax reform

21 Renewables Highlights Installed Capacity increases 2.7 GW ( 16 22) 100% PPAs Installed Capacity (GW) (1) Operating Highlights % 8.6 Growth 16-20: ~1.9 GW with ~1.4 GW (74%) already secured with PPAs 16-22: ~2.7 GW with ~1.4 GW (53%) already secured with PPAs Safe Harbor: 2 GW 100% & 1 GW 80% PTC NCF Averages Wind NCF increases to 34.5% in 22 New Wind 40%; Operating Wind 32% New & Operating Solar 30% (1) Includes JVs. 21

22 Long Term Outlook Extending Plan Two Years to 22 EPS CAGR (1) Adjusted EPS (1)(2) 8-10% CAGR 8-10% CAGR $ % CAGR ~$2.75 to ~$3.00 ~$3.25 to ~$3.60 $ % CAGR ~$2.80 to ~$3.05 ~$3.30 to ~$ Confirming Adjusted EPS CAGR of ~8-10% (1)(2) (1) Annual growth is not linear. (2) See Appendix for calculation of Adjusted EPS and reconciliations to EPS. 22

23 Earnings Contributions Secured investments support ~85% of Earnings Growth ~ % CAGR ~ % CAGR ~ % CAGR % CAGR + ~30% ~15% Net Income $632 ~55% Adjusted Net Income $643 (1) % of contribution to 8-10% CAGR 16 Secured Networks Secured Renewables Highly Likely Networks Highly Likely & Likely Renewables All Other (2) 22 Secured investments provide ~7-8.5% CAGR over the period (1) See Appendix for calculation of Adjusted Net Income and reconciliations to Net Income. (2) Includes Best Practices implementation, financing costs other impacts. Amounts may not add due to rounding. CAGRs are not intended to be additive. 23

24 Earnings Growth in Long Term Outlook EPS CAGR of 8-10% (1) Adjusted EPS CAGR % (1)(2) Adjusted EPS (2) 16 ($2.08) Adjusted EPS (2) 22 (~$ ) 75% 15% 10% 100% 77% 32% -9% 100% Networks Renewables Corporate AVANGRID Networks Renewables Corporate AVANGRID Earnings contributions from Renewables increases, primarily due to new production coming online; Corporate in 22 primarily includes interest on holding company debt (1) Annual growth is not linear. (2) See Appendix for calculation of Adjusted EPS and reconciliation to EPS. 24

25 Forward Vision: Best-in-Class in Industry Implement Best Practices to drive top tier performance Talent Attraction & Agile Organization Driving Innovation with Technology Deployment & Digitization Delivery of Customer Solutions & Quality of Service Cost Management Targets (1) Manage O&M to achieve best in class operational efficiency as we grow the business Mitigate rate impacts of the capital plan Continued Focus on Safety & Reliability (1) Compared to 16 base. 25

26 AVANGRID Digital Driving the Transformation towards the Digital Utility Intelligent Grid Operations Over 600 digitized substations remotely monitored & controlled 1.2M smart meters in 17 increasing to 3.2M by 22 (~100%) Digitization of customer services & interactions Advanced grid analytics & big data Digital Asset Management National 24/7 Control Center: ~3,400 wind turbines, solar & gas generation Advanced in-house O&M model and digital field workers Balancing Authority in Northwest, managing a portfolio of 1,300 MW Implementation of production boost software for wind turbines Smart Corporate Services Centralized shared services model (One-HR hub) Advanced analytics for cybersecurity Consolidation & upgrade of data centers Securing advanced skillset with Agile Talent delivering efficiencies, optimizing operations and enhancing our services 26

27 Long Term Outlook Sources & Uses Business Segments Debt funding increases with Tax Reform ~80% Capex is funded with Cash Flow AVANGRID ($Billions) Networks $6.4 $3.5 $7.5B ($9.3B) $14.4 ~($1.8B) $11.5 Cash from Operations Capex Funding Needed Renewables $3.9B ($5.1B) ~($1.2B) Cash from Operations Debt (1) Dividends Capex Cash from Operations Capex Funding Needed (1) Debt does not include new lease accounting treatment for ~$500M. Amounts may not add due to rounding. 27

28 Dividend Policy Expect to increase Dividend beginning in 18 (1) Floor Annual $1.728/share Payout Targeting 65%-75% Increases Expect to achieve pay As out target & begin dividend increases determined 18 by Board For example, at a 65% payout ratio our Adjusted EPS (2) CAGR results in a Dividend of ~$2.15-$2.35/share in 22 (~25%-35% cumulative growth vs. 17) (1) Subject to authorization by the AVANGRID Board of Directors. (2) See Appendix for calculation of Adjusted EPS and reconciliations to EPS. 28

29 Summary of Key Assumptions for Long Term Outlook Investments $14.4B 17-22; Excludes growth transmission (excludes NECEC transmission project) & offshore wind Networks ~9% Rate Base CAGR Distribution: Target allowed ROEs & earning into sharing with Forward initiatives & best practice implementation Transmission: Accruing at 10.57% Base Rate (up to 11.74% Max) Renewables 2,418 MW New Wind, 326 MW New Solar, 325 MW Repowering Safe Harbor: 2 GW 100% PTC, 1 GW 80% PTC, 372 MW Repowering Average NCF Wind ~32.5% Pricing: Merchant Wind Average ~ $26/MWh RECs declining from ~$8-$11/MWh to ~$5/MWh PPA prices decline ~13% from 16 (~$48-$50/MWh 20-22) Other Assumes tax equity for El Cabo project Excludes Gas Storage businesses 29

30 Long Term Outlook Sensitivities AVANGRID Adjusted EPS (1) for 22 Networks Transmission Base ROE to 11.14% ~ + $0.03 Transmission ROE by 0.50% ~ - $0.03 Rate Base +/-$100M ~ +/- $0.02 Renewables Merchant Prices +/- $1/MWh ~ +/- $0.02 NCF +/- 0.5pp ~ +/- $0.05 +/- 100 MW New Wind ~ +/- $0.03 Other Interest Rates +/- 0.50% on non-utility debt ~ +/- $0.04 (1) See Appendix for reconciliation of Adjusted EPS to EPS. 30

31 1. AVANGRID 1.3. Financing 31

32 AVANGRID Financial Strength Leverage is Primarily at Networks AGR $1,059M Short-term Debt $786M Renewables $152M Debt Financing Structure (December 31, 2017) 13% 17% 2% Networks $4,266M 68% Highlights Inaugural AGR issuance in Nov, 17; $600M green bond (7yr note with 3.15% coupon) RG&E $300M FMB issuance in May (10yr bond with 3.10% coupon) Short-term liquidity is provided by $1.5B credit facility that backstops $1B AGR CP $507M CP and $250M drawn on credit facility at year-end. Renewables financing includes tax equity $98M and sale-leaseback $54M 32

33 AVANGRID Financial Strength Balance Sheet Remains Strong Additional Debt with Tax Reform & to Support Growth YE 16 Debt (1) / Total Capitalization Cash Flow is solid Including Tax Reform 38% 30% 31% 26% 30% 30% 26% 40% 41% 43% 36% 38% 39% 40% Excluding Tax Reform Debt will be impacted by Tax Reform (Adds ~$1.4B by 22) Mitigating factors TBD: Reviewing tax equity financing Networks tax reform impacts pending regulatory process & treatment '16 '17 '18 '19 '20 '21 '22 (1) Includes additional amounts related to the application of new accounting standard ASC 842 related to the treatment of leases (adding ~$500M in 19); Net Debt/Total Capitalization is 26% for 16 and 30% for

34 AVANGRID Financing Needs Approximately $2.2B of debt matures Debt Maturities ($Millions) Portfolio Weighted Average Life: ~8.6 Years $712 Portfolio Weighted Average Coupon: ~4.51% $7 Billion $294 $345 $303 $364 $154 '17 '18 '19 '20 '21 '22 Incremental Debt in Outlook (1) Includes non-current debt including sinking funds; 20 includes $450 million at AVANGRID (former UIL Holding Company Debt). 34

35 AVANGRID Financing Flexibility Financial strategy provides flexibility & opportunity Cash from Operations Long-term Debt & Equity Inter-Company Financing Expect to generate ~$11.5B in Cash from Operations ~$6.9B incremental Debt in Long Term Outlook Assume all Renewables financing at Corporate (Green Bond Issuer); No new equity Availability of excess cash from AVANGRID affiliates to meet shortterm borrowing needs Credit Facilities $1.5B Bank Credit Facility backing $1B CP program at AVANGRID Tax Equity Tax Equity for Renewables financing evaluated on a project-byproject basis with additional focus due to tax reform impacts on cash flow 35

36 Tax Reform Key Impacts on 20 Adjusted EPS (1) Federal income tax statutory rate reduced from 35% to 21% Absence of bonus depreciation Re-measurement of year-end 17 accumulated deferred income taxes Interest deductibility not an impact at Corporate in Long Term Outlook Reduced cash flow will impact Networks & Corporate debt & interest costs Financing Costs will continue to increase through 22 Networks Higher rate base (Lower tax rate treatment pending regulatory process) Renewables Earnings improvement with tax rate reduction to 21% Corporate + $ $0.04 Negative impact with tax rate reduction to 21% Finance Costs - $0.01 +$ $0.05 Reduction in cash flows increases Networks & Corporate debt +$0.05 (1) See Appendix for reconciliation of Adjusted EPS to EPS. 36

37 Credit Ratings as of 3/31/18 LT Issuer/Default Rating (Outlook) AVANGRID S&P Moody s Fitch BBB+ (Stable) A-2 CP BBB Sr. Unsecured YE 15 YTD 16 Baa1 (Stable) P-2 CP Baa1 Sr. Unsecured BBB+ (Stable) F-2 CP BBB+ Sr. Unsecured NYSEG A- (Stable) A- Sr. Unsecured A3 (Stable) A3 Sr. Unsecured BBB+ (Stable) A- Sr. Unsecured RG&E A- (Stable) A Secured A3 (Stable) A1 Secured BBB+ (Stable) A Secured A- Sr. Unsecured CMP A- (Positive) A Secured A- Sr. Unsecured A2 (Stable) Aa3 Secured A2 Sr. Unsecured BBB+ (Stable) A Secured A- Sr. Unsecured UI A- (Stable) Baa1 (Stable) BBB+ (Positive) A- Sr. Unsecured CNG A- (Stable) A- Sr. Unsecured A3 (Stable) A3 Sr. Unsecured A- (Stable) A Sr. Unsecured SCG A- (Stable) A Secured A3 (Stable) A1 Secured BBB+ (Positive) A Secured BGC A- (Stable) Baa1 (Positive) A- (Stable) A+ Secured A Sr. Unsecured 37

38 2. Avangrid Networks 38

39 2. Avangrid Networks 2.1. Operating Utilities 39

40 Operating Footprint 8 Regulated Utilities in NY, CT, ME & MA serving ~3.2M customers Electricity Service 2017 Electricity Customers 2,231,576 Miles of Transmission Lines 8,657 Miles of Distribution Lines 70,934 Substations 822 Electricity Delivered 38,349 GWh Natural Gas Service Natural Gas Customers 998,236 Miles of Transmission Pipeline 127 Miles of Distribution Pipeline 24,298 Natural Gas Delivered 175,477,000 DTh 40

41 Utilities in New York New York State Electric and Gas (NYSEG) 2017 Service Area More than 40% of upstate NY area (20,000 mi²) Population served 2.5 million Electricity Service 42 counties, 151 cities and villages, 379 towns Electricity Customers Residential Non residential 893, , ,255 Miles of Transmission Lines 4,513 Miles of Distribution Lines 35,081 Substations 430 Electricity Delivered 15,374 GWh 33 counties, 92 cities and Natural Gas Service villages, 169 towns Natural Gas Customers 266,351 Residential 235,590 Non residential 30,761 Miles of Transmission Pipeline 20 Miles of Distribution Pipeline 8,151 Natural Gas Delivered Employees 1,718 41,283,000 DTh Rochester Gas and Electric (RGE) YTD Service Area 2,700 mi² in western NY, around Rochester Population served 1 million Electricity Service 9 counties, 28 cities and villages, 58 towns Electricity Customers Residential Non residential 378, ,036 41,585 Miles of Transmission Lines 1,094 Miles of Distribution Lines 8,808 Substations 154 Electricity Delivered 7,016 GWh 9 counties, 25 cities and Natural Gas Service villages, 46 towns Natural Gas Customers 313,043 Residential 289,133 Non residential 23,953 Miles of Transmission Pipeline 105 Miles of Distribution Pipeline 10,592 Natural Gas Delivered Employees ,465,000 DTh 41

42 Utilities in Maine and Massachusetts Central Maine Power (CMP) ,000 mi² in central and Service Area southern Maine Population served 1 million 14 counties, 346 cities, Electricity Service towns, townships and plantations Electricity Customers 624,378 Residential 557,502 Non residential 66,876 Miles of Transmission Lines 2,911 Miles of Distribution Lines 23,556 Substations 209 Electricity Delivered Employees 846 9,107 GWh Maine Natural Gas (MNG) Service Area Natural Gas Service YTD Natural Gas Customers 4,617 Miles of Distribution Pipeline 205 Natural Gas Delivered Berkshire Gas Company (BGC) 361 mi² in central and southern Maine 12 communities 1,358,000 DTh 2017 Service Area 738 mi² in western Massachusetts Population served 191,601 Natural Gas Service 20 communities Natural Gas Customers 40,136 Residential 34,785 Non residential 5,351 Miles of Distribution Pipeline 764 Natural Gas Delivered Employees 132 9,863,000 DTh 42

43 Utilities in Connecticut United Illuminating (UI) 2017 Service Area Population served 767, mi² southwestern CT Electricity Service 17 communities Electricity Customers 334,955 Residential 301,902 Non residential 33,053 Miles of Transmission Lines 139 Miles of Distribution Lines 3,489 Substations 29 Electricity Delivered Employees 695 5,094 GWh Southern Connecticut Gas (SCG) Service Area Connecticut Natural Gas (CNG) Service Area YTD mi² in CT Population served 759,029 Natural Gas Service 26 communities Natural Gas Customers 176,836 Residential 161,230 Non residential 15,606 Miles of Distribution Pipeline 2,160 Natural Gas Delivered 2017 Employees mi² in CT Population served 913,854 Natural Gas Service 24 communities Natural Gas Customers 197,253 Residential 177,873 Non residential 19,380 Miles of Distribution Pipeline 2,426 Natural Gas Delivered Employees ,772,000 DTh 36,736,000 DTh 43

44 Regulated Generation Facilities Operating Company Facility Location Facility Type Installed Capacity (in MW) Year(s) Commissioned NYSEG Newcomb, NY Diesel Turbine NYSEG Auburn, NY (1) Natural Gas Turbine NYSEG RGE UI Eastern New York (6 locations) Rochester, NY (3 locations) Connecticut (3 locations) Hydroelectric Hydroelectric Fuel cell / Solar 13.4 (2) 2017 (1) The Auburn, NY natural gas turbine generating unit is leased. (2) Includes 2.2 MW of solar. UI is party to a joint venture with NRG Energy (GenConn) which operates two 188 MW peaking generation plants in Devon and Middletown, both in Connecticut. 44

45 2. Avangrid Networks 2.2. Projects & Capex 45

46 Major Projects NY Completed: Ginna Retirement Transmission Alternative (RGE T) ~$145M ( ) Completed in 1Q 17. Extension of 2 large substations ( kV) & 4 new circuits ( kV) in operation. Allows local generation plant retirement. Provides new connections to power grid & continued reliability in Rochester area. Auburn Transmission (NYSEG T) $103M ( ) Project joint with National Grid to rebuild & relocate 115kV lines. Expanded a substation to address system reliability & eliminate certain transmission limitations in NYSEG area. Completed in 2Q 17. NYSEG & RGE In Progress: Leak Prone Main Replacement (Gas D) ~$229M ( ) Infrastructure replacement to ensure system safety. DSIP Plan ~$526M ( ) for installation of 1.8M smart meters in NY beginning ~$203M ( ) for grid automation and control including Energy Smart Community. Brightline (NYSEG & RG&E - No distinction between D & T since both recovered thru rates) 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. Currently in engineering phase. Rochester Area Reliability Project (RGE T) ~$230M ( ) New and rebuild of ~24 miles of 345/115-kV transmission lines plus upgrades at five substations. 46

47 Major Projects NY (Cont d) NYSEG & RGE Through NY Transco Formed in 2014 to build FERC Transmission in NY by Avangrid (NYSEG & ROE), ConEd, National Grid and Central Hudson. Rate Base as of YE2016 of $204M (AGR investment 20%). ROE 10% (base ROE 9.5%, 0.5% incentive adder), Equity Ratio 53%. Rates in effect 6/1/16. Project in current NY AC proceeding. Final decision expected in Not in Long Term Outlook. Connect NY 1,000 MW DC underground T line from Utica to NY City, path along NY Thruway ROW. Supports NY Energy Policy Objectives, future viability of upstate nuclear, reduces congestion between upstate and downstate and provides new infrastructure to support upstate renewable generation and the retirement of Indian Point. Positioning project to compete in future solicitations. Not in Long Term Outlook. NY Transco Connect NY NY 47

48 Major Projects ME CMP Completed: Customer Smart Care data system upgrade (CMP D) ~$56M ( ) Enhances customer service and flexibility for innovative rate design. Enables dynamic pricing and optimizes AMI system capabilities. Completed in 4Q 17. In Progress: Coopers Mills STATCOM (T) ~$36M ( ) ISO requested to support regional bulk electric system upgrades as part of Greater Boston Reliability. Lewiston Loop (T) ~$22M ( ) Originally part of MPRP. Construction will be complete new substations, 11.3 miles of 345kV and 1.4 miles of 115kV. Brightline (T) 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. Currently in engineering phase. MEPCO Transmission Investments (T) ~$223M total investment (CMP ownership 78.3% of MEPCO) ( ) as follows: Section 388 & Other Section Rebuilds ~$107M ( ) project replaces 46-yr old structures on a 50-mile 345kV circuit. Construction initiated. Strategic Rebuild ~$116M ( ) to address replacement of aging infrastructure. MidCoast (T) $78M Originally part of MPRP. Awaiting regulatory approval as the MPUC evaluates the proposed upgrades following the new ISO-NE reliability standards. New England Clean Energy Connect (NECEC) Project selected for contract negotiations in the MA RFP. Not in Long Term Outlook. 48

49 Major Transmission Projects ME MCPC NECEC MEPCO Rebuilds Mid Coast Lewiston Loop 49

50 NECEC Overview: 1,200 MW Transmission project delivering hydropower from Canada $950M investment, excluding AFUDC; Not in Long-Term Outlook Fixed, levelized price for 20 years Construction Expect all state permits by 1Q 19 & final approvals by YE 19 Strong support from Maine Governor, Legislators, Local Communities (95%) & Environmentalists Provides enough clean electricity for up to 1.5 million homes in New England Key Permits/Approvals/Reviews: MA PUC Approval of Contracts ME PUC Certificate of Public Convenience and Necessity Maine DEP Approval Presidential Permit ISO-NE System Impact Study Army Corps of Engineers Environmental Assessment FERC Approval of Tariff 50

51 BRIGHTLINE - Map New York Maine 51

52 Major Projects CT & MA UI CNG SCG BGC Metro-North Rail Road Corridor (UI T) ~$187M ( ) Increases capacity & reliability of the T lines along Metro-North corridor with investments such as Bridgeport to Stratford 115kV reconductoring. Coastal Substation Flood Mitigation (UI D and UI T) ~$177M ( ) To address resiliency of those substations along the CT coastline. Leak Prone Main Replacement (Gas D) ~$406M in CT & MA ( ). Infrastructure replacement to ensure system safety LNG Modernization Program (Gas D) ~$30M ( ) Ensure ability to fill LNG storage reliably and cost effectively off of pipeline with investments in Rocky Hill Liquefaction Replacement. Gas Expansion Plan (Gas D) ~$170M ( ) 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: Year Town/OpCo Miles of Main $M 2014 Essex, CT/SCG 6 $ Deep River, CT/SCG 4 $ East Hampton, CT/CNG 14 $ Coventry, CT/CNG 4 $ Bolton, CT/CNG 7 $ Hebron, CT/CNG 8 $5.6 52

53 Transmission Growth in New Regions AGR Networks targeting expansion to new regions in 18 Developing the expansion plan: Identification of opportunities in MISO, CAISO, PJM, SPP Networks registered to submit Transmission bids into RFPs in MISO Potential transmission opportunities associated with States renewable initiatives Explore opportunities with Avangrid Renewables $ B expected until 30 (~$15-20B/year from 16-20) $75 B estimated from in the most attractive regions Business Development team currently defining action & resource plans 2018 Goal: Identify a portfolio of potential projects of at least $3B 53

54 Networks Capex (1) Networks Capex ($9.3B) $M $1, $1, $1, $1, $1, $1, Corp MNG BGC CNG SCG UI T UI D CMP - T CMP - D RGE - G RGE - E NYSEG - G 2017A 2018E 2019E 2020E 2021E 2022E NYSEG - E Amounts may not add due to rounding. (1) As of February 20,

55 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 55

56 Rate Base Growth (1) ($B) $9.1 $ Average Rate Base $ $ $14.5 $ $ E 2019E 2020E 2021E 2022E Average '16-22 Electric - D&T 56% FERC - T 21% Gas 23% MNG BGC CNG SCG UI T UI D CMP - T CMP - D RGE - G RGE - E NYSEG - G NYSEG - E Amounts may not add due to rounding. (1) As of February 20,

57 Base Allowed ROEs Allowed returns as of December 31, % 11.20% CMP T % UI T % 10.70% BGC 10.50% 10.20% 9.70% 9.20% NYSEG 9.65% (2) Base: 9.0% RGE 9.65% (2) Base: 9.0% UI D 9.10% CMP D 9.45% SCG 9.25% CNG 9.18% MNG 9.55% 8.70% 8.20% 7.70% Bubble size reflects each company s relative rate base (1) (1) 2017 Average Rate Base of $9.1B. (2) Includes 65bp allowance before sharing. 57

58 Avangrid Networks Regulatory Framework Rate Base Covered by Multi-year Rate Plans Rate Base Recovered Under Forward Test Year FERC Formula Rates 22% FERC Formula Rates 22% Historic Test Year 1% Non- Muti-year Rate Plans 15% Multiyear Rate Plans 62% Forward Test Year 76% Amounts may not add due to rounding. 58

59 Achieved ROEs New York Rate Plans NY State Electric (NYSEG-E) NY State Gas (NYSEG-G) Rochester Electric (RGE-E) YTD 16 Rochester Gas (RGE-G) Jurisdiction New York Regulator New York Public Service Commission (NYPSC) Term 3 year rate case settled June Tariffs increase effective May 1, 2016 Annual Rate Increases Year 1 - $54M, Year 2 - $73M, Year 3 - $81M Avg. Rate Base (April 17) $1,835 M $519M $1,094M $405M Allowed ROE / Equity Ratio 9.0% / 48% Earnings Sharing Rate Year Trackers / Reconciled Costs ROE filing Earnings sharing at 50% equity Year 1 (5/1/16 4/30/17): 100% up to 9.5% 50% up to 10.0% 25% up to 10.5% 10% above 10.5% Year 2 (5/1/17 4/30/18): Year 3 (5/1/18 4/30/19): 100% up to 9.65% 100% up to 9.75% 50% up to 10.15% 50% up to 10.25% 25% up to 10.65% 25% up to 10.75% 10% above 10.65% 10% above 10.75% Forecast 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 and $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 & ) Annually (filed end of July) 2016 (after-sharing) (1) 9.0% 9.9% 9.6% 9.9% 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 1st rate year (5/1/16-4/30/17) under current 3 year rate plan settled June

60 Achieved ROEs Connecticut Rate Plans Jurisdiction Regulator Term Annual Rate Increases United Illuminating Distribution (UI-D) Southern Connecticut Gas (SCG) Connecticut Public Utilities Regulatory Authority (PURA) 3 year plan year plan Effective January 2017 Effective January 2018 Year 1 - $43.0M Year 1 - $1.5M Year 2 - $11.5M Year 2 - $4.7M Year 3 - $2.9M Year 3 - $5.0M YTD 16 Connecticut Natural Gas (CNG) 1 year plan through 12/14 Avg. Rate Base (2017) $1,000 M $532 M $446 M Allowed ROE 9.10% 9.25% 9.18% Equity Ratio 50% 52% 52.52% Earnings Sharing 50/50 above ROE 50/50 above ROE 50/50 above ROE Rate Year Trackers / Reconciled Costs Forecast 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 ROE filing Quarterly Monthly Monthly 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% 2013 (after-sharing) 8.5% 8.1% 8.2% Distribution Integrity Mgmt Program (1) Based on actual equity ratios vs allowed. 60

61 Achieved ROEs Maine & Massachusetts Rate Plans Central Maine Power Distribution (CMP-D) Maine Natural Gas (MNG) YTD 16 Berkshire Gas Company (BGC) Jurisdiction Maine Massachusetts Regulator Maine Public Utilities Commission (MPUC) Department of Public Utilities (DPU) Term 1 year plan July '14 - July '15 10 year plan thru 4/26/16 Automatically extended subject to Year 7 review 10 year plan through 1/12 Merger Commitments New rates effective 6/1/18 Avg. Rate Base (2016) $779M $67M $97M Allowed ROE 9.45% 9.55% 10.5% Equity Ratio 50% 50% 41.9% Earnings Sharing No 50/50 above 12.05% No Rate Year Forecast Forecast Historic Trackers / Reconciled Costs Revenue Decoupling No Revenue Decoupling Major Storms Gas Supply (pass through) New Billing System (one-off) Environmental Gas Supply (pass through) ROE filing Annually Annually Annually % NA NA % NA NA % NA NA % NA NA No Revenue Decoupling Gas Supply (pass through) 61

62 Achieved ROEs FERC Jurisdiction Rate Plans Regulator Central Maine Power Transmission (CMP-T) Term Annual filing by July 31 United Illuminating Transmission (UI-T) Federal Energy Regulatory Commission (FERC) Avg. Rate Base (2016) $1,446M $547M (2016E) Allowed ROE % % Equity Ratio Actual (~53-59%) Actual (~53-55%) Earnings Sharing No No Decoupling No No Trackers / Reconciled Costs ROE filing 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 Annually % 11.4% % 11.4% % 12.1% % 12.2% T FERC ~$2B Rate Base by earned ROE ($M) ROE 11.07% $0.4B ROE 10.57% $0.3B ROE 11.74% $1.3B Main projects receiving 11.74%: MPRP Middletown- Norwalk NEEWS 62

63 New York Reforming the Energy Vision (REV) Encourage renewable energy, in-state generation, and wider deployment of distributed energy resources (DER) such as micro grids and storage Promote greater use of advanced energy management products, such as AMI Improve customer engagement in energy choice and management, while providing affordable electric service Track 1: Order issued Feb 16: Utilities will be the Distribution System Platform Provider Track 2: Ratemaking & Regulation: Distribution System Implementation Plan (DSIP) submitted Distributed System Implementation Plan (DSIP) submitted Jun 16 Earnings Adjustment Mechanisms (EAM) proposal filed Dec 16 AMI full deployment petition filing made Dec 16 Track 3: Emission Goals to promote zero carbon emissions & renewable energy Governors Clean Energy Standard & 2030 Goals: A mandate for 50% of NY s electricity to be generated from renewable sources 40% Reduction in Greenhouse Gas Emissions from 1990 levels 23% Reduction in Energy Consumption of Buildings from 2012 Levels 63

64 NY REV Earnings Adjustment Mechanisms (EAM) NYSEG & RGE filed Dec 1, 2016 separate petition to implement REV Track 2 Earnings Adjustment Mechanisms (EAM) EAM System Efficiency Peak Load Reduction; Circuit Load Factor Improvement, DER Utilization 2 Energy Efficiency Program Achievement; Outcome Based ( Energy Intensity ) 3 Interconnection Timeliness; Survey 4 Clean Energy Standard Catch the Wind targets Customers, Purchases Benefit of up to 100 bps of ROE on electric rate base, not subject to sharing Recovery mechanism for costs through existing surcharge (CEF) or Rate Adjustment Mechanism Negotiations underway- expect 2018 implementation 64

65 NY REV Advanced Metering (AMI) NY full AMI deployment petition filed with Regulators December 20, Million Electric and Gas Meter Installations - ~$510M investment Investment $M Total Total $9 $29 $159 $176 $96 $43 $511 Approval & Timing Filing consistent with rate case, REV doctrine & Commission precedent (ConEd approved) Petition will require full regulatory review & collaborative process Expect to implement in 2018 AMI projected capital cost of ~$510M provides over $700M of operational & AMI-enabled benefits (NPV over 20 yrs) 65

66 NYSEG Energy Smart Community Project, Ithaca, NY Pilot testing the ability to reinforce the customer relationship & create value 17 Established the Foundation 18 Leverage the Platform AMI & Automation Infrastructure 19,000 AMI Meters Automation of 3 Substations & 52 Line Devices Integrated Systems Planning: DER Hosting Capacity & Developer Portal DER & Load Forecasting Customer & Market: NYSEG Smart Solutions online store Energy Manager (AMI Data & Energy Efficiency available) Pilot Time of Use Rate proposal Customer Segmentation Model & Communications Strategies Increased focus on customer & operational outcomes Optimize AMI & automation to improve reliability, system efficiency Maximize customer & market engagement (innovative rates, products, DR, etc) Expand capabilities through key innovation projects (EV, Storage, Aggregation) Measure Customer Engagement 66

67 Energy Storage The Next Generation of Grid Resources State-level policies are advancing energy storage deployment NY Networks Advancing Energy Storage & business models is a priority for the state Developing plans for 2 battery storage projects each at NYSEG & RG&E, operational by year-end Evaluating bid proposals for grid-side battery storage projects as part of NY nonwires alternative process CT In response to CT s grid modernization legislation, in Nov 17 UI filed a proposal to CT PURA for a 1.25 MW/2.5 MWh project to demonstrate the benefits of battery storage at its Woodmont substation 67

68 Planning For & Enabling Electric Vehicles in Our Region Developing the roadmap for an EV future By 25, EV s to represent 7% of U.S. Networks sales By 40, EV s will make up 54% of global sales (1) Multiple government commitments & initiatives for EVs in NY & CT Networks initiatives: Support the adoption of EVs in Networks service territories Develop EV market intelligence Evaluate charging infrastructure needed for a robust market, including utilization of fast chargers Assess EV load integration Engage with regulators (Q2 18) (1) Source: EEI/IEI Plug-in Electric Vehicle Sales Forecast Through 2025, 2017). 68

69 2. Avangrid Networks 2.4. How to Model 69

70 Networks Seasonality Electric & Gas Sales Electric Delivery (GWh) Gas Delivery (mcf) 11,000 90,000 9,000 70,000 50,000 7,000 30,000 5,000 1Q 2Q 3Q 4Q 10,000 1Q 2Q 3Q 4Q Avg Avg Relative stability quarter to quarter (100% decoupled) Strongest quarters 1Q & 4Q with colder weather (decoupled except for Berkshire) 70

71 How to Model Approach for Network Income Calculation 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) Networks Income (1) Connecticut companies and Transmission based on actual equity ratio. 71

72 Economics 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 gas and electric for a 13-month period. Year-end rate base used for CMP and UI Transmission AFUDC & Carrying Costs 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 Equity Income 50% JV with NRG (GenConn) in 2 regulated peaking plants with ROE of 9.81% 20% investment in NY Transco: Rate Base $204M, ROE 10%, Equity Ratio 53% Earned ROE Based on formulas approved by regulator and used in annual compliance filings Formulas based on operating income with certain regulatory adjustments 72

73 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 MFC Revenue Line 7 Remove Shareholder Incentive Line 9 Limit Exec Incentive Comp 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: 73

74 How to Calculate Earned ROE - Example (Cont d) (Line 25 = 23 * 24) (Line 26 = 22 / 25) Rate Base used is a 12-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, half of the Additional Earnings would be Shared with Customers 74

75 3. Avangrid Renewables 75

76 3. Avangrid Renewables 3.1. Portfolio Characteristics 76

77 Avangrid Renewables Historical Growth & Long Term Outlook MW 9,000 8,000 7,000 6,000 5,000 4,000 Renewables Capacity Growth 6.5 GW Installed (2017) ITC (2) Cash Grant Projects (~3,407 MW) (1) Selective Growth Baffin Wind and Amazon Wind Farm East (410 MW) 2017 El Cabo, Tule I, Deerfield, Twin Buttes II (534 MW) + Gala Solar (56 MW) 2018 Wy East Solar (10 MW) 2019 Montague, Coyote Ridge, Karankawa (584 MW) 2020 Tatanka, La Joya (263 MW) Remaining in LTP (~ 400 MW/Year Wind & Solar) Pipeline of 8 GW (3) 3,000 2,000 1, Total 26 MW 0 (1) Avangrid Renewables also owns 536 MW Cogeneration (2001), 100 MW Peaking (2009). (2) Projects funded with Section 1603 ITC cash grants (Renewables received ~$2B in cash for ~$6B investment; no PTCs). (3) Excludes offshore pipeline. 77

78 Operating Footprint Top 3 Wind Operator in the U.S. with ~6.5 GW Wind & Solar Installed Capacity and ~497 MW in Construction* Wind Solar Thermal AVANGRID Under Construction * Installed Capacity includes joint ventures. Under construction is net of ~ 10 MW solar Wy East, ~201 MW Montague, ~286 MW Karankawa. 78

79 Portfolio Characteristics (1) Total Installed capacity of 6.5 GW in 21 states & 7 electric power markets; 6.4 GW of wind and 106 MW solar PV generation 72% of installed capacity under long-term PPA 9.6 years average remaining PPA life Target 75%-85% capacity under PPA or hedge Average PPA price = $54.3 Includes escalators on ~38% of PPAs Industry-leading energy management capabilities 24/7 operations, maintenance, dispatch, & load balancing for 61 (2) wind & solar assets (1) As of 12/31/2017. (2) Includes joint venture assets. 79

80 Portfolio Characteristics (1) PPA & Merchant Installed Capacity Distributed Across Regions PPA = 72% Merchant = 28% South/ TX West South/ 23% West 16% TX 34% 37% 9% Midcon Northeast 16% 27% 39% MidCon Northeast Price exposure managed with PPAs, fixed price power & gas hedges Target overall 75% PPA or Power Hedge (1) As of 12/31/

81 MWs PPA & Merchant Evolution Installed Capacity MWs Existing PPA New Build w/ppa Merchant 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Merchant % PPA % 2017A 2018P 2019P 2020P 2021P 2022P 28% 28% 26% 25% 28% 33% 72% 72% 74% 75% 72% 67% Amounts may not add due to rounding. Strategy is to re-contract expiring PPAs & Merchant, however, chart reflects: Annual PPA roll-off Additions of new PPAs in Long-Term Plan MW Expiring 2017: : : : : :

82 3. Avangrid Renewables 3.2. Facilities & Contracts 82

83 Wind Facilities (1) 1/3 Location Wind Project Turbines MW COD NERC Region PPA/ Merchant PTC/ ITC Tax Equity Arizona Dry Lake I 30 (Suzlon S88, 2.1 MW) WECC PPA ITC Cash Grant Dry Lake II 31 (Suzlon, 2.1 MW) WECC PPA ITC Cash Grant California Dillon 45 (Mitsubishi, 1 MW) WECC PPA PTC Manzana 126 (GE, 1.5 MW) WECC PPA ITC Cash Grant Mountain View III 34 (Vestas V47, 0.66 MW) WECC PPA PTC Expired Phoenix Wind Power 3 (NMicon-Vestas,0.66MW) WECC PPA PTC Expired Shiloh 100 (GE, 1.5 MW) WECC PPA PTC Expired Tax Equity Tule 57 (GE, 2.3MW) WECC PPA PTC Colorado Colorado Green (2) 54 (GE, 1.5 MW) WECC PPA PTC Expired Twin Buttes 50 (GE, 1.5 MW) WECC PPA PTC Expired Twin Buttes II 30 (Gamesa, 2.1 MW) 6 (Gamesa, 2.0 MW) WECC PPA PTC Illinois Providence Heights 36 (Gamesa G87, 2.0MW) MRO Merchant PTC Streator Cayuga Ridge South 150 (Gamesa, 2.0MW) MRO Merchant ITC Cash Grant Iowa Barton 80 (Gamesa, 2.0 MW) MRO PPA ITC Cash Grant Flying Cloud 29 (GE, 1.5 MW) MRO PPA PTC Expired New Harvest 50 (Gamesa G87, 2.0MW) MRO PPA ITC Cash Grant Top of Iowa II 40 (Gamesa G87, 2.0MW) MRO PPA PTC Tax Equity Winnebago I 10 (Gamesa G83, 2.0MW) MRO PPA PTC Kansas Elk River 100 (GE, 1.5 MW) MRO PPA PTC Expired Tax Equity Mass. Hoosac 19 (GE, 1.5 MW) MRO PPA ITC Cash Grant Minnesota Elm Creek 66 (GE, 1.5 MW) MRO PPA PTC MinnDakota 100 (GE, 1.5 MW) MRO PPA PTC Tax Equity Trimont 67 (GE, 1.5 MW) MRO PPA PTC Expired Tax Equity Elm Creek II 62 (Mitsubishi, 2.4) MRO Merchant ITC Cash Grant (1) As of 12/31/

84 Wind Facilities (1) 2/3 Location Wind Project Turbines MW COD NERC Region PPA/ Merchant PTC/ ITC Tax Equity Moraine I 34 (GE, 1.5 MW) MRO PPA PTC Expired Moraine II 33 (GE, 1.5 MW) MRO PPA ITC Cash Grant Missouri Farmers City 73 (Gamesa G87, 2.0 MW) MRO Merchant ITC Cash Grant New Groton Hampshire 24 (Gamesa G87, 2.0MW) NPCC PPA ITC Cash Grant Lempster 12 (Gamesa, 2 MW) NPCC PPA PTC New Mexico El Cabo 142 (Gamesa, 2.1 MW) CAISO PPA PTC New York Hardscrabble 37 (Gamesa G90, 2MW) NPCC Merchant ITC Cash Grant Maple Ridge I (2) 70 (Vestas V82, 1.65 MW) NPCC Merchant PTC Expired Tax Equity Maple Ridge II (2) 27 (Vestas V82, 1.65 MW) NPCC PPA PTC Expired North Carolina North Dakota Amazon Wind Farm U.S. East 104 (Gamesa, 2.0 MW) SERC PPA PTC Rugby 71 (Suzlon S88, 2.1 MW) MRO PPA/ Merchant ITC Cash Grant Ohio Blue Creek 152 (Gamesa G MW) RFC PPA/ Merchant ITC Cash Grant Oregon Hay Canyon 48 (Suzlon S88, 2.1 MW) WECC PPA ITC Cash Grant Klondike I 16 (GE, 1.5 S 1.5 MW) WECC PPA PTC Expired Klondike II 50 (GE, 1.5 S 1.5 MW) WECC PPA PTC Expired Klondike III 44 (Siemens, 2.3 MW); 80 (GE, 1.5 SLE, 1.5 MW); 1 (Mitsubishi, 2.4 MW) WECC PPA PTC Expired Tax Equity Klondike IIIa 51 (GE, 1.5 MW) WECC PPA PTC Tax Equity 74 (GE, 1.5 MW); Leaning Juniper II WECC PPA/ ITC Cash Grant 43 (Suzlon, 2.1 MW) Merchant (1) As of 12/31/2017. (2) Jointly owned with Horizon Wind Energy; capacity amounts represent only Renewables share of the wind farm. 84

85 Wind Facilities (1) 3/3 Location Wind Project Turbines MW COD NERC Region PPA/ Merchant PTC/ ITC Tax Equity Pebble Springs 47 (Suzlon S88/2100, 2.1 MW) WECC PPA ITC Cash Grant Star Point 47 (Suzlon, 2.1 MW) WECC PPA ITC Cash Grant Pennsylvania Casselman 23 (GE, 1.5 MW) RFC PPA PTC Tax Equity Locust Ridge I 13 (Gamesa G87, 2.0) RFC PPA PTC Expired Locust Ridge II 51 (Gamesa G83, 2.0 PPA/ RFC MW) Merchant ITC Cash Grant South Chestnut 23 (Gamesa, 2.0 MW) RFC PPA ITC Cash Grant South Dakota Buffalo Ridge I 24 (Suzlon, 2.1 MW) MRO PPA PTC Buffalo Ridge II 105 (Gamesa G87, 2.0 MW) MRO Merchant ITC Cash Grant Texas Baffin 101 (Gamesa G97, 2.0 MW) TRE Merchant PTC Barton Chapel 60 (Gamesa, 2.0 MW) TRE Merchant ITC Cash Grant PPA/ Peñascal I 84 (Mitsubishi, 2.4 MW) ITC Cash Grant TRE Merchant PPA/ Peñascal II 84 (Mitsubishi, 2.4 MW) TRE ITC Cash Grant Merchant Vermont Deerfield 15 (Gamesa, 2.0 MW) NEISO PPA PTC Washington Big Horn I 133 (GE, 1.5 MW) WECC PPA PTC Expired Big Horn II 25 (Gamesa, 2.0 MW) WECC PPA ITC Cash Grant Juniper Canyon 63 (Mitsubishi, 2.4 MW) WECC PPA/ Merchant ITC Cash Grant (1) As of 12/31/

86 Solar & Thermal Facilities (1) Location Project Type MW COD NERC Region PPA/ Merchant PTC/ ITC Pinal County, Arizona Copper Crossing Solar Ranch Solar WECC PPA ITC Cash Grant Alamosa County, Colorado San Luis Valley Solar Ranch (2) Solar WECC PPA ITC Cash Grant Prineville, Oregon Gala Solar Solar WECC PPA ITC Klamath Falls, Oregon Klamath Cogeneration Thermal WECC PPA/ Merchant n/a Klamath Falls, Oregon Klamath Peakers Thermal WECC PPA/ Merchant n/a (1) As of 12/31/2017. (2) Operated pursuant to a sale-and-leaseback agreement. 86

87 Wind Contracts (1) 1/3 Wind Project Name PPA Counterparty MW Start Date Barton WPPI Energy MISO Barton Northern IN PSC MISO Barton Dairyland Power Co-op MISO Big Horn I MSR Public Power Agency WECC Big Horn II MSR Public Power Agency WECC Blue Creek American Municipal Power PJM Blue Creek The Ohio St. University PJM Blue Creek FirstEnergy Solutions PJM Buffalo Ridge I Northern IN PSC MISO Buffalo Ridge II Uniper Global Commodities MISO Casselman FirstEnergy Solutions PJM Colorado Green CO PSC WECC Deerfield Green Mtn. Power Corporation NE Desert wind Amazon PJM Dillon SCE CAISO Dry Lake I Salt River Project WECC Dry Lake II Salt River Project WECC El Cabo Southern California Edison CAISO Elk River Wind Empire District Electric SPP Elm Creek Great River Energy MISO Elm Creek II Uniper Global Commodities MISO Flying Cloud Interstate Power & Light MISO Groton NSTAR Electric NE Hay Canyon Snohomish County Public Utility WECC Hay Canyon Snohomish County Public Utility WECC (1) As of 12/31/2017. ISO 87

88 Wind Contracts (1) 2/3 Wind Project Name PPA Counterparty MW Start Date Hoosac NSTAR Electric NE Klondike I Bonneville Power Admin WECC Klondike II Portland General Electric WECC Klondike III PG&E WECC Klondike III PG&E WECC Klondike III Bonneville Power Admin WECC Klondike III Eugene Water & Electric Board WECC Klondike III Puget Sound Energy WECC Lempster NH PSC NE Leaning Juniper II Large C&I Customer BPA Locust Ridge I PPL EnergyPlus PJM Locust Ridge II Christiana Care Health Services PJM Locust Ridge II Frankford Heath Care System PJM Locust Ridge II Thomas Jefferson University/Hospital PJM Locust Ridge II Magee Rehabilitation Hospital PJM Locust Ridge II Main Line Health System PJM Locust Ridge II Albert Einstein Healthcare PJM Manzana LA Dept. of Water & Power CAISO Manzana SDG&E CAISO Manzana Silicon Valley Power CAISO Maple Ridge II NSTAR Electric NYISO Maple Ridge II Power Authority of State of NY NYISO MinnDakota Northern States Power MISO Moraine I Northern States Power MISO Moraine II Northern States Power MISO (1) As of 12/31/2017. ISO 88

89 Wind Contracts (1) 3/3 Wind Project Name PPA Counterparty MW Start Date ISO Mountain View III SDG&E CAISO New Harvest ComEd MISO New Harvest Ameren IL MISO Pebble Springs Southern California Public Power Auth CAISO Penascal I City Public Service Board San Antonio ERCOT Penascal I City of Bryan ERCOT Penascal II Southern Texas Electric Coop ERCOT Phoenix Wind SDG&E CAISO Rugby MO River Energy Services MISO Rugby Central MN Municipal Power MISO Rugby Central MN Menial Power MISO Rugby Upper Midwest Municipal MISO Shiloh I City of Palo Alto CAISO Shiloh I PG&E CAISO Shiloh I Clean Power SF CAISO Shiloh I Marin Clean Energy CAISO South Chestnut DC Dept. of General Services PJM Star Point Modesto Irrigation District NA Top of Iowa II Madison G&E MISO Top of Iowa II WPPI Energy MISO Tule 1 Southern California Edison CAISO Trimont Great River Energy MISO Twin Buttes CO PSC WECC Twin Buttes II Tri-State Generation & Trans. Assoc WECC Winnebago I Dairyland Power Co-Op MISO Total MWs of Operating Wind with PPA 4,589 (2) (1) As of 12/31/2017. (2) Total will not tie due to rounding. 89

90 Other Wind Contracts (1) Project Name PPA Counterparty MW Start Date ISO Montague Large C&I WECC Karankawa I Austin Energy ERCOT Karankawa II Major Footwear and Apparel Company ERCOT Total MWs of Wind Under Construction with PPA 487 Wind Future Renewals Shiloh Peninsula Clean Energy CAISO Elm Creek I Uniper (increase to existing) MISO Total MWs of Renewals 115 Wind with Executed PPAs and Not in Construction Coyote Ridge Google MISO Tatanka Ridge Google MISO La Joya Public Service of New Mexico South West Total MWs with PPA Executed and Not in Construction 360 (1) As of 3/31/

91 Solar & Thermal Contracts (1) Project Name PPA Counterparty MW Start Date ISO Solar Copper Crossing Solar Ranch Salt River Project WECC San Luis Solar Ranch CO PSC WECC Gala Large C&I WECC Total MWs of Operating Solar with PPA 106 WyEast Portland General Electric WECC Total MWs of Solar Under Construction with PPA 10 Thermal Klamath Cogeneration Bonneville Power Admin WECC Klamath Peaker Portland General Electric (summer) WECC Klamath Peaker Portland General Electric (winter) WECC Total with PPA 355 (1) As of 12/31/

92 3. Avangrid Renewables 3.3. Drivers of Growth 92

93 Unique Renewables Strategies Offer High Value Proposition & Not Just Commodity Over 1 GW recently delivered OFFSHORE Building pipeline (Vineyard Wind MA partnership; Kitty Hawk, NC lease) Substantial in-house expertise in Renewables & with Iberdrola affiliates C&I Relationships with high-quality counterparties Execution established Demand remains strong Rapidly growing U.S. opportunities New Mexico South Texas Northwest El Cabo & La Joya projects (464 MW) Projects, leases & transmission rights, strong local relationships Link excellent wind to high value markets - can deliver to NM or as far as AZ or CA Expansion opportunities 606 MW installed plus 286 MW new Karankawa PPAs added in 17 Coastal focus Best-in-class expertise matching load profiles & managing basis issues Expansion opportunities 1,300 MW installed plus 257 MW new additions in 17 (Gala, Montague) Experience & deep knowledge in bi-lateral NW; largest solar in OR Multiple positions for wind & solar with complementary BPA (network + intertie) Transmission portfolio; also moving to establish the Balancing Authority 93

94 Offshore Strategy Differentiates Us AVANGRID s Distinctive Advantages in the U.S. Offshore Market Global Teams Local Knowledge Significant U.S. Onshore Renewables Experience Expertise of Affiliates with Substantial European Offshore Capabilities: Deep technical knowledge & engineering capabilities Credibility Financing experience Well developed supply chain & relationships, & experience managing Offshore O&M costs 544 MW successful projects already completed & 714 MW under construction Opportunities to Leverage Significant U.S. Transmission Experience Global Best Practices 94

95 U.S. Offshore Opportunities We are Well-Positioned to Take Advantage of Growth Opportunities in an Early-Stage U.S. Market with Strong Potential Vineyard Wind 50% Ownership with Copenhagen Infrastructure Partners (CIP) of 166,866 acre lease south of Martha s Vineyard Lease area has potential capacity of ~3.0 GW Bid 400 MW & 800 MW with Transmission Solutions in MA Offshore RFP (Selection expected in May 18) Bid 190 MW offshore wind in CT RFP for renewable energy sources (Selection expected in June 18) Start of Construction 19 with COD as early as 21 North Carolina 100% Ownership of 122,405 acre lease off coast of Kitty Hawk, NC Lease area has potential capacity of ~2.5 GW Project timeline second half 20 s 95

96 Growing Offshore Market Near-Term Opportunities in Northeast Region Connecticut RFP for Eligible Resources (1) includes Offshore Wind up to 825,000 MWh (~200 MW) Long-term contracts up to 20 years Deliveries before 12/31/2025 Selection of Bidders 6/18/2018 Rhode Island Announced 400 MW renewables, including offshore opportunity, as part of Governor s 1,000 by 20 Clean Energy Goal New York Plans to issue 2 RFPs ( 18 & 19) to develop at least 800 MW of Offshore Wind (Governor targeting 2,400 MW by 30) NYSERDA investments in workforce development & infrastructure advancement; agency cooperation to encourage investment & build supply chain New Jersey Gov. Phil Murphy signed an executive order directing state agencies to implement the 2010 Off-Shore Wind Economic Development Act to meet goal of 3,500 MW of off-shore wind energy by 30 (1) Must be new or incremental expansions of existing facilities; All resource types can be paired and co-located with energy storage. 96

97 Renewables Growth Growing Demand With Interest in Green Energy Increasing Competition Impacts Pricing, but Costs also Declining Emerging Market Demand Corporate Sustainability Goals (including up to 100% renewable energy targets) Community Choice Aggregators: (Cities across the U.S. are striving for 100% renewable targets Utilities State RPS Standards & Coal Retirement Goals, for example: CA 50% by 30 NY 50% by 30 OR 50% by 40 VT 75% by 32 Ownership of development sites & expertise provides opportunities to partner with utilities that want to include renewables in rate base 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) 97

98 Solar Investments include ~326MW Solar 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 56MW Gala solar plant, the largest in OR, was completed in 17 10MW Wy East solar plant is currently under construction 98

99 Customer at the Center Value Added Products Battery Energy Systems Battery System within NW Balancing Authority Lithium-ion energy storage system operating as part of the Balancing Authority in the Northwest Replaces more expensive technologies H Y D R O B A T T E R Y C O G E N P E A K E R S O N D E M A N D W I N D O T H E R 10 MW, 2-hour Battery to be Implemented: Improves reliability of the electrical grid Provides additional services to the system Reduces risk of non-compliance with the Balancing Authority Battery Container Power Converter System Step-up Transformer MV & Control Container Battery Energy Storage System design at Klamath Falls, OR 99

100 Customer at the Center Value Added Products Hybrid Products Firmed & shaped products designed to meet the customers needs Storage to optimize renewable production Over 200MW Solar + Battery under development Moves solar generation from on-to off-peak hours Opportunities in certain areas of the U.S. Incremental cost of adding batteries to a standard PV plant more than covered by PPA price Combined product: wind + PV Exploring opportunities for over 250MW Solar combined with existing Wind (~800W) Opportunities to combine wind & solar, co-located to more fully utilize fixed infrastructure Firmed, shaped product in growing demand Addition of batteries depends on market structures that allow for revenue streams for ancillary services or PPA customers to include in contract 100

101 Renewables Long Term Outlook is Positive Other Opportunities in Addition to Traditional Onshore Wind Projects Solar 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 Wind & Solar Combinations 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 101

102 Competitive Advantage C&I DIRECT RETAIL SERVICE Leading the Gold standard with customized GREEN solutions for our corporate partners with direct delivered renewables Avangrid Renewables Projects MWhs Transmission Grid Bundled Renewable Energy + Additional MWhs to meet C&I demand from Avangrid s Green Merchant Portfolio PPA Avangrid Renewables ESS MWhs Corporate Partner $$ 102

103 3. Avangrid Renewables 3.4. Projects & Capex Onshore Wind & Solar 103

104 Projects in Long Term Outlook Completed 590 MW in 17 Long Term Outlook adds 2.7 GW COD (590 MW) Project ~MW PPA Counterparty Gala Solar (OR) 56 Large C&I Deerfield (VT) 30 Green Mtn. Power Tule I (CA) 131 Southern CA Edison El Cabo (NM) (1) 298 Southern CA Edison Twin Buttes II (CO) 75 Tri-State Generation In Construction (411 MW) Project ~MW ~COD PPA Counterparty Wy East Solar (OR) PGE Montague (OR) 201 Late 19 Large C&I Karankawa #1 (TX) 200 Late 19 Austin Energy PPAs Executed (446 MW) Project ~MW ~COD PPA Counterparty Karankawa #2 (TX) 86 Late 19 Major Footwear & Apparel Company Coyote Ridge (SD) 97 Late 19 Google, Inc. Tatanka Ridge (SD) 97 Late 20 Google, Inc. La Joya (NM) 166 Late 20 Public Service of New Mexico (1) Option for JV partner to purchase 49.5%. Additional MW in Plan ~ COD ~MW COD by 21 & Acquired Safe Harbor for 80% PTCs for up to 1 GW 104