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1Factbook / May / 2020

Factbook

May 2020

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.

https://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.avangrid.com&esheet=51968263&newsitemid=20190411005630&lan=en-US&anchor=www.avangrid.com&index=2&md5=4845323fec1a6f8bd8ee96dac1666789


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.

http://www.avangrid.com/wps/portal/avangrid/Investors


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


1. AVANGRID

1.1. Description


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


AVANGRID Origins

1840: Hartford City

Light is formed

(CNG Origin)

2001: Scottish Power

acquires Pacific Corp

2006: Iberdrola

acquires

Community

Energy


sells Pacific Corp to

Berkshire Hathaway,

without PPM Energy


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


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


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.


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.


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


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


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%


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.


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)


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


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 –


• 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


• 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

http://www.ct.gov/pura

http://www.mass.gov/dpu

http://www.maine.gov/mpuc

http://www.dps.ny.gov/

http://www.macleanenergy.com/

http://www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyView?OpenForm&Start=14.4&Count=30&Expand=15.7&Seq=17

http://www.nyserda.ny.gov/All-Programs/Programs/Offshore-Wind/Offshore-Wind-Solicitations/Generators-and-Developers/2018-Solicitation

http://ricleanenergyrfp.com/

http://www.necleanenergyconnect.org/

https://mpuc-cms.maine.gov/CQM.Public.WebUI/Common/CaseMaster.aspx?CaseNumber=2017-00232

http://eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber

http://www.vineyardwind.com/

https://eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber

https://search.mass.gov/?q=17-05&org=energy-facilities-siting-board

https://eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber

http://www.libertywind.com/the-project-1

http://www.parkcitywind.com/

http://www.awea.org/

http://www.boem.gov/

http://www.boem.gov/Vineyard-Wind

http://www.ferc.gov/default.asp

http://www.iso-ne.com/

http://www.nyserda.ny.gov/

http://www.nescoe.com/


1. AVANGRID

1.2. Outlook & Financing


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.


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


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


$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


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%


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



2.1. Operating Utilities


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


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



Substations 429


Natural Gas Service34 counties, 90 cities and

villages, 176 towns

Natural Gas Customers

Residential

Non residential

268,806

237,932

30,874




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


Residential

Non residential

383,592

341,658

41,934



Substations 155


Natural Gas Service7 counties, 25 cities and

villages, 53 towns


Residential

Non residential

317,661

293,513

24,148




Employees 696


Utilities in Maine and Massachusetts

Maine Natural Gas (MNG) 2019

Service Area361 mi² in central and

southern Maine

Natural Gas Service 12 communities


Residential

Non residential

4,974

3,530

1,444

Miles of Distribution Pipeline 216


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


Residential

Non residential

636,341

573,245

63,096



Substations 207


Employees 875

Berkshire Gas Company

(BGC)2019

Service Area738 mi² in western

Massachusetts

Population served 191,601



Residential

Non residential

40,500

35,162

5,338

Miles of Distribution Pipeline 764


Employees 120


Utilities in Connecticut

United Illuminating (UI) 2019

Service Area 335 mi² southwestern CT


Electricity Service 17 communities


Residential

Non residential

338,654

304,670

33,984

Miles of Transmission Lines 139


Substations 28


Employees 644 Connecticut Natural Gas

(CNG)2019

Service Area 724 mi² in CT




Residential

Non residential

181,527

165,590

15,937



Employees 322

Southern Connecticut Gas

(SCG)2019

Service Area 555 mi² in CT




Residential

Non residential

203,269

183,141

20,128



Employees 306


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.


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.



2.2. Projects & Capex


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.


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


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


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.


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


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.


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



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


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).


Average '18-'20

Electric - D&T 56%

FERC - T 21%

Gas 24%


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)


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



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.


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


3 year plan 2019-2021


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.


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


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


· Revenue Decoupling


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.


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.


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



2.4. How to Model


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


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.


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.


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


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)



3.1. Portfolio Characteristics


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)


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.


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


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


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)


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




3.2. Facilities & Contracts


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



(1) As of 3/31/2020.



Region

Contracted/


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


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



(1) As of 3/31/2020.



Region

Contracted/


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


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


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




(1) As of 3/31/2020.



Region

Contracted/


Texas Peñascal II 83 (Mitsubishi, 2.4 MW) 199 2010 TREPartially


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



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.


(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


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



(1) As of 3/31/2020.


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




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.


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).


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.



3.3. Drivers of Growth


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


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


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.


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


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


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


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.


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


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


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



3.4. Projects & Capex


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


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


(1) Includes corporate, IT, capitalized interest & labor, and other.

(1)



3.5. Economics


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%


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.


PTC Evolution(1)


✓ ’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


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 …)


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


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


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


4. Reconciliations


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


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.

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