FACTBOOK April 2021 FACTBOOK Legal Notice April 2021
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 amount, timing or ability to complete levels or timing of capital expenditures projects; adverse developments in general market, business, economic, labor, regulatory and political conditions; fluctuations in weather patterns and extreme weather events; technological developments; the impact of extraordinary external events, such as any cyber breaches or other incidents, grid disturbances, acts of war or terrorism, civil or social unrest, natural disasters, 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; our ability to close the proposed merger with PNM Resources, the anticipated timing and terms of the proposed merger, our ability to realize the anticipated benefits of the proposed merger and our ability to manage the risks of the proposed merger; the COVID-19 pandemic, its impact on business and economic conditions and the pace of recovery from the pandemic; 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) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $38 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates 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 across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com. 2 FACTBOOK Legal Notice April 2021
Use of Non-U.S. GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we consider adjusted net income and adjusted earnings per share as non-GAAP financial measures that are not prepared in accordance with 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 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, accelerated depreciation derived from repowering of wind farms, a legal settlement, costs incurred related to the PNMR Merger and the impact of the global coronavirus (COVID-19) pandemic. 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 GAAP measure to adjusted net income is net income. We 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 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 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 GAAP and should not be considered as alternatives to operating income, net income or any other performance measures determined in accordance with GAAP.
We use the following non-GAAP metrics in our presentation, which are reconciled to their closest GAAP financial measure in the Appendix: Adjusted net income and adjusted EPS.
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.
3 FACTBOOK Index April 2021
1. AVANGRID 1.1. Description…………………………………………………………………………………………….. 6 1.2. Financing…………….……………………………………….………………………………………... 18 1.3. COVID-19…………….……………………………………….………………………………………... 23
2. Avangrid Networks 2.1. Operating Utilities...…………………………………………….....…………………………………. 27 2.2. Projects & Capex…………………………………………………..…………………………………. 33 2.3. Regulatory………………………………...………………………...………………………………….41 2.4. How to Model.…………………………………………………………………………………………. 61
3. Avangrid Renewables 3.1. Portfolio Characteristics………………………………………….………………………………… 67 3.2. Facilities & Contracts.…………………….………………………………………………………….74 3.3. Drivers of Growth.……………………………………………………………………………………. 84 3.4. Projects & Capex…………………………………………………..………………………………….96 3.5. Economics.……………………………………………………….…………………………………… 100
4 1. AVANGRID
1.1. Description
FACTBOOK April 2021
5 FACTBOOK AVANGRID is Focused on Regulated & Renewables Businesses April 2021
Formed by merger between Iberdrola USA & UIL in December 2015
Networks 81.5% Owned by Iberdrola, S.A.
NYSE: AGR www.AVANGRID.com Renewables BBB+ Credit Rating
8 Regulated Utilities in NY, CT, ME, MA(1) 3rd largest Wind & Solar Operator in U.S. Average Rate Base ~$10.7B Customers Served ~3.3M Wind & Solar GW Installed (2) Miles of Transmission Lines ~9k ~7.9 GW Miles of Electric Distribution Lines ~71k Miles of Gas Distribution Pipeline ~23k
(1) As of 12/31/2020. (2) As of 3/31/2021 including JVs. 6 FACTBOOK AVANGRID Origins April 2021
Utilities in operation for over a century; growing renewable business
1840: Hartford City 1892: RG&E 1910: Oakland 1967: SCG formed 1999: Energy East Light is formed formed through Electric renamed through merger acquires CMP, CNG, (CNG Origin) merger Central Maine Power SCG, BG, MNG.
1848: 1899: UI formed 1929: Ithaca 1999: Energy East 2000s: Energy East Hartford City through New Haven Gas renamed to formed (NYSEG) acquires RG&E in Light re- Electric & Bridgeport New York State 2002. Electricity named CNG Electric merger Electric and Gas Reform ongoing...
1999: Scottish Power 2006: Scottish Power 2008: Iberdrola Ren 2010: UIL purchases 2018: Sale of acquires PacifiCorp sells PacifiCorp to and PPM Energy SCG, CNG, and BG Enstor Gas Berkshire Hathaway, merge into Iberdrola from Iberdrola USA Storage without PPM Energy Renewables USA
2006: Iberdrola 2007: Scottish Power 2008: Iberdrola S.A. 2015: UIL and The integration of the former acquires is acquired by acquires Energy Iberdrola USA merge Iberdrola USA and UI was Community Iberdrola S.A. East, forming to form Avangrid successfully completed in 2018 Energy Iberdrola USA 7 FACTBOOK AVANGRID Geographic Presence April 2021
~$38 billion in assets; operations in 24 states
Wind AVANGRID Operations Solar Thermal Headquarters in Orange, CT Networks
3rd largest wind & solar operator in the U.S. with ~7.9 GW installed(1)
(1) As of 3/31/21, including JVs. 8 FACTBOOK AVANGRID Operational Structure April 2021
8 regulated gas & electric utilities; renewable energy business including offshore wind
AVANGRID, Inc.(1) (AGR)
Avangrid Avangrid Networks, Inc.(1) Renewables (1) (Networks) Holdings, Inc. (ARHI)
Central Maine UIL Holdings Power Company(1) Corporation(1) Avangrid (CMP) (UIL) Renewables, LLC(1) (Renewables) New York State The United Electric & Gas Illuminating Corporation Company(1) (NYSEG) (UI) Vineyard Wind, LLC (VW) 50%(2) Rochester Gas and The Southern Electric Corporation Connecticut Gas (RG&E) Company (SCG) Holding Company New York TransCo, LLC Connecticut Natural Electric Transmission (TransCo) Gas Corporation 20%(2) (CNG) Electric Distribution
Gas Distribution Maine Natural Gas The Berkshire Gas Corporation Company (MNG) (BGC) Renewables
(1) Certain legal entities, including subsidiary holding companies and project level LLCs, are not shown. Note: Colors are not intended to show 9 (2) AVANGRID’s ownership interest. the proportion of an entity's operations. FACTBOOK Operational Data 1Q 2021 April 2021
10 FACTBOOK Operational Data – Revenue Detail April 2021
Revenue from renewable energy resources AVANGRID Revenue Detail (Excluding Networks Gas Companies and Corporate)
(millions) FY 2020
Segment $ % Weight % YoY
Networks 3,816 100% 34%
Hydro 50 1% 11%
Nuclear - - -
Renewables 1,132 100% 4%
Solar 19 2% -25%
Biomass 39 3% 10%
Wind 876 77% -1%
11 (1) FACTBOOK Industry Leadership Requires Bold ESG+F Aspirations April 2021
Published 2020 Sustainability Report “Clean and Connected”
Emissions & Environmental Talent Transportation
▪ Renewables’ installed capacity ✓ Paradigm for Parity AVANGRID Fleet >100% by 2025 vs. 2015 Commitment: 2030 60% of fleet (100% of light ▪ Scope 1(2) GHG emissions intensity ✓ PwC’s CEO Action duty) converted to cleaner (3) 35% by 2025 vs. 2015 Commitment for diversity energy vehicles by 2030 & inclusion ▪ Scope 1(1) carbon neutral by 2035 >900 L2/L3 charging stations installed for fleet & employee vehicles Society Facilities Customers By 2030 • Increase annual Supplier Diversity >15K Chargers & Make-Ready spend to $300M by 2025 ▪ 25% CO footprint 2 Infrastructure for Light Duty, • >35,000 annual employee volunteer Medium/Heavy Duty, & Transit ▪ 50% Green Energy used hours by 2025 Buses (subject to regulatory approvals) ▪ 50% tons of paper used
(1) Excludes PNM Resources (2) Scope 1: GHG emissions from electricity generation, methane leaks, SF6 fugitive emissions, fuel consumption in buildings & Company vehicles (1.9 million mt for 2019). (3) Subject to regulatory approval & availability of vehicles & charging equipment. 12 ESG Recognition FACTBOOK April 2021 Recognized leader in sustainability & corporate governance
Sustainability Ratings & Indices
2021 – 4th year AVANGRID Carbon Disclosure Project FTSE4Good Index Series(1) on Global Carbon Clean (global environmental ✓ 200 list(2) disclosure system)
Recent Awards & Honors
CMP, NYSEG & UI Emergency Response Awards Restoration efforts for snow & wind events April ’20 & Tropical Storm Isais August ’20 CMP was 1st utility in U.S. to respond to a major storm event with new COVID-19 safety protocols Energy Star Partner of the Year Sustained Excellence Award UI, CNG & SCG – for partners demonstrating outstanding leadership year over year
(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. 13 Positioned to be The Leading Sustainable Energy Company in the U.S. FACTBOOK April 2021
Creating sustainable & consistent value for our shareholders & all our stakeholders
Focus on Execution Investing in Regulated & & Best Practices ESG + F = Contracted Businesses Sustainable Value
Strong Financial Profile Innovative & Differentiated & Reliable Dividend Customer Solutions
The NEW AVANGRID
14 (1) FACTBOOK AVANGRID Investment Highlights April 2021
Competitive advantage of being associated with the Iberdrola Group: global leader in clean energy, innovation & financial strength… Attractive Growth Opportunities in Networks & Renewables Businesses ✓ New England Clean Energy Connect (NECEC), Vineyard Wind & Park City Wind projects ✓ ~23 GW onshore & offshore wind & solar pipeline ✓ Investments in AMI, Smart Grid & EV infrastructure ✓ Asset mix with geographic & business diversity • 8 regulated utilities in 4 states with ~$10.7B rate base(1) • ~7.9 GW wind & solar installed, targeting 85-95% contracted and/or hedged Leader in U.S. Offshore Wind Development ✓ Access to 3 offshore wind leases through Vineyard Wind, MA & Kitty Hawk, NC(2) ✓ ~1.6 GW offshore wind contracted with project CODs by mid ’20s ✓ Strong partnerships with expertise from affiliates in the Iberdrola Group & Copenhagen Infrastructure Partners (CIP) Leading, Sustainable U.S. Energy Company with a Focus on Clean Energy ✓ Pledge to reduce Scope 1(3) GHG emissions intensity 35% by ’25 vs. ’15 & achieve Scope 1 Carbon Neutrality by ’35 (4) ✓ 90% Emission Free Capacity & CO2 emissions intensity was ~ 7x lower than U.S. Utility average in ’20 Attractive Financial Strength ✓ Strong balance sheet with low leverage ✓ Reliable dividend(5) (1) As of 3/31/21, rate base as of 12/31/20. (2) AVANGRID’s two Massachusetts' lease areas are in 50/50 partnership with CIP; Kitty Hawk, NC lease is 100% owned by AVANGRID. (3) Scope 1: GHG emissions from electricity generation, CH4 leaks, SF6 fugitive emissions, fuel consumption in buildings & Company vehicles. (4) Source: U.S. DOE EIA Monthly Energy Review (January 2021, Rolling 12 Months Ending in November 2020). 15 (5) Subject to authorization by AVANGRID Board of Directors. FACTBOOK Helpful Links April 2021
State - Regulatory Commissions Vineyard Wind (VW) Other • CT PURA – www.ct.gov/pura • VW – www.vineyardwind.com • American Wind Association (AWEA) – www.awea.org • MA DPU – www.mass.gov/dpu • MA – Long-term contracts with EDCs, 18-76 – eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber • Bureau of Ocean Energy Management • ME PUC – www.maine.gov/mpuc (BOEM) – www.boem.gov • MA – Energy Facilities Siting Board; FSB 17-05/D.P.U. 18- • NY DPU – www.dps.ny.gov 18/18-19 – search.mass.gov/?q=17-05&org=energy- • BOEM Vineyard Wind – facilities-siting-board and www.boem.gov/Vineyard-Wind eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber State - Request For Proposals • FERC – www.ferc.gov/default.asp • Park City Wind – www.parkcitywind.com • MA Clean Energy – www.macleanenergy.com • ISO-NE – www.iso-ne.com • Procurement of Offshore Facilities - • NYSERDA – www.nyserda.ny.gov www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyVi Kitty Hawk Offshore • New England States Committee on Electricity ew?OpenForm&Start=30&Count=30&Expand=45 • Kitty Hawk - www.kittyhawkoffshore.com (NESCOE) – www.nescoe.com &Seq=2 • CT Procurement of Clean Energy and Renewable Resources Pursuant to Public Acts 13-303, 15-107 New England Clean Energy Connect (NECEC) and 17-144 – • NECEC – www.necleanenergyconnect.org www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyVi ew?OpenForm&Start=14.4&Count=30&Expand=1 • ME Certificate of Public Convenience (CPCN), 2017-00232 - https://mpuc- 5.7&Seq=17 cms.maine.gov/CQM.Public.WebUI/Common/CaseMaster.aspx?CaseNumber=201 • NY Solicitation – www.nyserda.ny.gov/All- 7-00232 Programs/Programs/Offshore-Wind/Focus- • MA – Long-term contracts with EDCs, 18-64 – Areas/Offshore-Wind-Solicitations/ eeaonline.eea.state.ma.us/DPU/Fileroom/dockets/bynumber • RI 2018 Request for Proposals for Long-Term Contracts for Renewable Energy - https://ricleanenergyrfp.com
16 1. AVANGRID
1.2. Financing
FACTBOOK April 2021
17 FACTBOOK Financial Management Strategy April 2021
Maintain solid investment grade credit ratings Optimal financing plan for PNM Resources merger
Maintaining a strong financial position Execute financing plans at Maintain strong liquidity attractive rates Enabling Financing liquidity & growth capex ESG+F sustainable dividends Target dividend payout ratio of 65-75% Sustainable financing over time(1) Growing & consistent financial performance
18 (1) Subject to AVANGRID Board Approval. FACTBOOK Commitment to Sustainable Financing April 2021
Sustainable financing is an AVANGRID strategy & supports ESG+F framework
Sustainable Credit Facility AVANGRID is the 8th largest $2.5 Billion Green, Social & Sustainability Innovative price-adjustment mechanism (GSS) Bonds issuer in U.S.(1) based on continuous reduction of AGR emission intensity
Tax Equity Financing (TEI) November 2017 Green Bonds $600 Million $582M TEI outstanding a/o 12/31/2020 May 2019 Green Bonds $750 Million (~8.1 yrs. to maturity on average) ~$2.0B TEI forecasted for 2021-2025(2) April 2020 Green Bonds $750 Million
(1) Source: Bloomberg (2) As of November 5, 2020 Investor Day. 19 (1) FACTBOOK Debt & Liquidity as of 3/31/2021 April 2021
Low leverage, primarily at Networks; Renewables primarily funded by parent debt
AGR ~$2.8B of debt matures through ’25 $2,085M 27% $301M $363M $439M $612M $1,107M $750
$600 73% Networks $5,703M
Liquidity at 3/31/2021 ($B)(2) $300 Revolving Credit Facilities(3) $3.0 Cash & Cash Equivalents $0.8 $163 $150 $139 $152 Commercial Paper Balance ($0.0) $125 $125 $100 $75 $80 AVAILABLE LIQUIDITY $3.8 $25 $12 $25 AGR/IBE Credit Facility $0.5 $1 TOTAL Liquidity $4.3 2021 2022 2023 2024 2025 AGR NYSEG RG&E CMP UI SCG BGC
(1) Debt excludes $3.0B intra-group loan with Iberdrola. AVANGRID Portfolio Weighted Average Life: ~9.1 Years (2) Does not include $4.3B Iberdrola Commitment Letter for PNM Resources merger. (3) Includes $2.5B main revolving credit facility and $0.5B supplemental revolving credit facility. AVANGRID Portfolio Weighted Average Coupon: ~3.81%
20 FACTBOOK Credit Ratings as of 3/31/21 April 2021
Maintain solid investment grade credit ratings
LT Issuer/Default Rating (Outlook) S&P Moody’s Fitch
BBB+ (Stable) Baa1 (Negative) BBB+ (Stable) AVANGRID A-2 CP P-2 CP F-2 CP BBB Sr. Unsecured Baa1 Sr. Unsecured BBB+ Sr. Unsecured
A3 (Negative) A- (Stable) BBB+ (Stable) A3 Secured NYSEG A- Sr. Unsecured A- Sr. Unsecured A3 Sr. Unsecured A- (Stable) BBB+ (Stable) A3 (Negative) A Secured A Secured RG&E A1 Secured A- Sr. Unsecured A- Sr. Unsecured BBB+ (Stable) A (Stable) A2 (Stable) A Secured CMP A Sr. Unsecured A2 Sr. Unsecured A- Sr. Unsecured
A- (Stable) A- (Stable) Baa1 (Stable) UI A- Sr. Unsecured A Sr. Unsecured
A- (Stable) A3 (Positive) A- (Stable) CNG A- Sr. Unsecured A3 Sr. Unsecured A Sr. Unsecured
A- (Stable) A3 (Stable) A- (Stable) SCG A Secured A1 Secured A+ Secured
A- (Stable) A- (Stable) A3 (Stable) BGC A Sr. Unsecured 21 1. AVANGRID
1.3. COVID-19
FACTBOOK April 2021
22 FACTBOOK AVANGRID’s COVID-19 Response April 2021
Continue to support employees & key stakeholders
Committed to health & safety of employees, contractors & customers Investments support economic & job growth, while maintaining liquidity & access to capital
✓ Provide customer benefits & commitments in joint ✓ Payment options & COVID/winter moratoriums proposal in NY rate cases Customers ✓ Continue Customer Service availability ✓ Safety processes enhanced to protect public
✓ Employees enabled to work remotely & with ✓ Donated $2.5M for COVID-19 response & social distancing in office/field recovery & 31,000 protective masks to hospitals ✓ Mental health awareness training Employees Community ✓ Coordinating ongoing response with legislators & regulators; Ensure reliable electric service to ✓ Travel restrictions & return to work safety emergency services & hospitals protocols in place ✓ Ensuring service continuity, incl.storm response
23 FACTBOOK Networks Regulatory Updates – COVID-19 April 2021
COVID-19 dockets opened in all states
New York • On June 11, 2020, NY opened Generic COVID-19 Docket (Case 20-M-0266); general guidance limits deferral options • NY law extends residential disconnection moratorium through March 31, 2021. Further extension is expected.
Maine • MPUC approved annual compliance filing & 2019 storm cost 3-year deferral effective July 1, 2020; proposed by Company due to COVID-19 (Docket No. 2020-00065 & 2020-00066) • MPUC reviewed possible suspension of CMP’s distribution revenue decoupling due to COVID-19 (Docket No. 2020-00159) but concluded that decoupling should be retained with minor modifications • MPUC COVID-19 Notice of Inquiry into coronavirus effect on transmission, distribution, & natural gas utilities & their customers; Utilities must provide bimonthly information about accounts receivable; MPUC lifted disconnect moratorium effective November 1, 2020 (Docket No. 2020-00136)
Connecticut • Residential Non-Hardship shutoff moratorium ended October 1, 2020, but resumption of disconnections for UI/SCG/CNG is awaiting PURA review. • Established state of emergency utility shutoff moratorium; regulatory asset allowed to track costs incurred (uncollectibles) due to PURA COVID-19 orders (Docket No. 20-03-15) MA • MA DPU inquiry into establishing COVID-19 policies & practices for customer assistance & ratemaking measures (Docket No. 20-58) 24 FACTBOOK Networks Decoupling & Uncollectibles by State April 2021
Decoupling Uncollectibles • No recovery mechanism currently in place; recent change in law • Nearly all customer classes; Collection/refund over following rate year; extending disconnect moratorium until at least 3/31/21 strengthening New York effective 8/1 case for deferral treatment • Interim surcharge/credit triggered when actual accumulated billed • NYPSC generic docket opened to review COVID-19 impacts on delivery service revenues +/- 1.5% of target, limited to one/yr & customers & utilities on June 11. NY Joint Utilities comments filed July recovered over longer of 4 months/end of rate year 15 requesting allowance for utilities timely recovery of deferred net COVID costs. DPS guidance indicates use of rate case mechanisms. • Nearly all customer classes; Annual compliance filing & rate adjustment • No recovery mechanism in place effective 7/1, collected over next 12 months • MPUC inquiry opened on April 28 related to the effect of COVID-19 on Maine • Proposed to change annual rate increase limitation to 2% of total accounts receivable and bad debt expense. CMP responses filed distribution revenue vs. 2% of each revenue class; excess deferred until bimonthly but have not formally requested regulatory asset treatment. following year • Transmission rate segment receives an allocation of uncollectibles; • Annual transmission tariff adjustment (no retail T decoupling) included in annual transmission tariff adjustment
• Full revenue decoupling for all customer classes; Annual decoupling • CT PURA ordered establishment of a regulatory asset for any costs filing as soon as data available with charge/credit applied for 12 months incurred (uncollectibles only) as a result of PURA COVID-19 orders following rate year • UI hardship uncollectibles are reconciled annually, including true up Connecticut • Annual transmission tariff adjustment & reconciliation (full revenue for prior year actuals plus upcoming year forecast decoupling) • 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
• All customer classes; semi-annual rate filing with recovery over next • No recovery mechanism in place 6-month season Massachusetts • Recovery capped at 3% of total revenues for most recent seasonal period; excess deferred until next season
25 2. Avangrid Networks
2.1. Operating Utilities
FACTBOOK April 2021
26 FACTBOOK Operating Footprint April 2021
8 regulated utilities in NY, CT, ME & MA serving ~3.3M customers
Electricity Service 2020 Electricity Customers 2,281,348 Miles of Transmission Lines 8,733 Miles of Distribution Lines 71,151 Substations 819 Electricity Delivered 35,978 GWh Natural Gas Service Natural Gas Customers 1,025,321 Miles of Transmission Pipeline 127 Miles of Distribution Pipeline 23,068 Natural Gas Delivered 189,678,000 DTh
27 FACTBOOK Utilities in New York April 2021
New York State Electric and Rochester Gas and Electric 2020 2020 Gas (NYSEG) (RGE) More than 40% of upstate NY 2,700 mi² in western NY, Service Area Service Area area (20,000 mi²) around Rochester Population served ~ 2.7 million Population served ~ 1 million 42 counties, 143 cities and 7 counties, 23 cities and Electricity Service Electricity Service villages, 372 towns villages, 67 towns Electricity Customers 907,336 Electricity Customers 385,925 Residential 782,370 Residential 344,209 Non residential 124,966 Non residential 41,716 Miles of Transmission Lines 4,549 Miles of Transmission Lines 1,094 Miles of Distribution Lines 35,188 Miles of Distribution Lines 8,904 Substations 430 Substations 156 Electricity Delivered 15,209 GWh Electricity Delivered 6,911 GWh 35 counties, 90 cities and 8 counties, 25 cities and Natural Gas Service Natural Gas Service villages, 176 towns villages, 54 towns Natural Gas Customers 270,204 Natural Gas Customers 319,737 Residential 220,739 Residential 295,859 Non residential 49,465 Non residential 23,878 Miles of Transmission Pipeline 20 Miles of Transmission Pipeline 105 Miles of Distribution Pipeline 8,382 Miles of Distribution Pipeline 8,999 Natural Gas Delivered 53,381,000 DTh Natural Gas Delivered 56,165,000 DTh Employees 1,920 Employees 724
28 FACTBOOK Utilities in Maine & Massachusetts April 2021
Central Maine Power (CMP) 2020 Maine Natural Gas (MNG) 2020
11,000 mi² in central and 331 mi² in central and Service Area Service Area southern Maine southern Maine Population served ~ 1 million Natural Gas Service 12 communities 14 counties, 346 cities, towns, Natural Gas Customers 5,201 Electricity Service townships and plantations Residential 3,720 Electricity Customers 646,818 Non residential 1,481 Residential 575,523 Miles of Transmission Pipeline 2 Non residential 71,295 Miles of Distribution Pipeline 225 Miles of Transmission Lines 2,952 Natural Gas Delivered 1,568,000 DTh Miles of Distribution Lines 23,419 Employees 20 Substations 205 Electricity Delivered 9,046 GWh Berkshire Gas Company Employees 954 2020 (BGC) 738 mi² in western Service Area Massachusetts Population served 188,165 Natural Gas Service 20 communities Natural Gas Customers 40,637 Residential 35,297 Non residential 5,340 Miles of Distribution Pipeline 766 Natural Gas Delivered 9,788,000 DTh Employees 127 29 FACTBOOK Utilities in Connecticut April 2021
Southern Connecticut Gas United Illuminating (UI) 2020 2020 (SCG) Service Area 335 mi² southwestern CT Service Area 555 mi² in CT Population served 762,856 Population served 838,506 Electricity Service 17 communities Natural Gas Service 24 communities Electricity Customers 341,269 Natural Gas Customers 206,096 Residential 308,128 Residential 185,917 Non residential 33,141 Non residential 20,179 Miles of Transmission Lines 138 Miles of Distribution Pipeline 2,492 Miles of Distribution Lines 3,640 Natural Gas Delivered 33,434,000 DTh Substations 28 Employees 317 Electricity Delivered 4,812 GWh Employees 622 Connecticut Natural Gas 2020 (CNG) Service Area 724 mi² in CT Population served 774,138 Natural Gas Service 26 communities Natural Gas Customers 183,446 Residential 167,394 Non residential 16,052 Miles of Distribution Pipeline 2,204 Natural Gas Delivered 35,342,000 DTh Employees 331
30 FACTBOOK Regulated Generation Facilities April 2021
~120 MW Hydro & ~13 MW Fuel cell / Solar; < 10 MW Diesel
Installed Capacity Year(s) Operating Company Facility Location Facility Type (MW) 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—1986
RG&E 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. 31 (3) Nameplate capacity. 2. Avangrid Networks
2.2. Projects & Capex
FACTBOOK April 2021
32 FACTBOOK Major Projects – NY April 2021
In Progress: • Leak Prone Main Replacement (Gas D) ✓ ~$241M (2021–2025) Infrastructure replacement to ensure system safety. • Advanced Metering Infrastructure (AMI) (Electric & Gas D) ✓ ~$489M (2020-2025) for installation of IT infrastructure beginning in 2020 and 1.9M smart meters in NY beginning 2022. Request filed with May 2019 rate case for regulatory approval & overall project included in Joint Proposal filed 6/22/20; final order of approval received 11/19/20. • Distributed System Implementation Plan (DSIP) ✓ ~$408M (2020-2025) 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, & energy storage & electric vehicles in response to New York’s Reforming the Energy Vision (REV). Request filed with May 2019 rate case & included in JP; final order of approval received 11/19/20. • Brightline ✓ ~$591M (2021-2025) 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 started Q3 2020. NYSEG • Rochester Area Reliability Project (RGE T) – COMPLETE and Energized in early April 2021 ✓ ~$256M (2019-2021) New & rebuild of ~28 miles of 345/115-kV transmission lines, a new 345/115-kV Substation, plus upgrades at five substations. & RGE • NY Transco ✓ NY Transco LLC was formed in 2014 to build FERC Transmission in New York by AVANGRID (NYSEG and RG&E), ConEd, National Grid, & Central Hudson. ✓ Capital Structure – NY Transco is 20% owned by AVANGRID & funded by 53% equity. TOTS projects base ROE of 9.50% plus 0.50% incentive adder; AC Segment B project has 9.65% base ROE plus 1.00% incentive adder & 100% return on CWIP. ✓ $314M Rate Base – TOTS is $166M & AC Segment B is $148M for 2021 rate year. ✓ TOTS projects have been in service since June 2016. AC Segment B project received approval from NYISO in April 2019 & is expected to have a 2023 in service date. ✓ The New York Energy Solution & Rock Tavern to Sugarloaf Project (AC Segment B) will utilize existing rights of way to increase UPNY-SENY transfer by 2,100 MW. AVANGRID’s share of the AC Segment B project is expected to be ~$120M.
33 FACTBOOK Major Projects – NY & ME April 2021
Brightline Project Maps by State
In Progress: • Brightline (T) ✓ ~$239M (2021-2025) 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. Augusta area project construction CMP started in Q3 2020. CPCN permits to be filled during 2021 and 2022. • MEPCO(1) Transmission Investments (T) ✓ ~$158M (2021-2025) Strategic & Other Rebuilds to address replacement of aging infrastructure. • New England Clean Energy Connect (NECEC) ✓ See NECEC specific slides that follow.
34 (1) CMP ownership 78.3% of MEPCO. FACTBOOK New England Clean Energy Connect (NECEC) April 2021
Largest decarbonization project in New England
PROJECT HIGHLIGHTS
1,200 MW transmission project bringing clean, affordable energy to Maine & Massachusetts
Creating 1,600 jobs during development & benefitting the environment with the equivalent of removing > 700,000 passenger vehicles from the road
Successfully completed all major permitting & construction commenced in January ’21; expected COD mid-’23
Already control 100% of rights of way • 73% in existing transmission corridor • 27% in industrial forest
35 FACTBOOK NECEC Economics April 2021
Capital Cost: Estimated $950M (excl. AFUDC) Contract Price: $9.29/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)
Revenue Trajectory(3) Project Capex $Millions(4)
NECEC Contract
72 104 482 344 107 Pre-2020 2020 2021 2022 2023
(1) Equivalent to $12.73/MWh for a 100% load factor. (2) Equivalent to $10.11/MWh for a 100% load factor. (3) Project economics are based on levelized, fixed-price transmission service agreements starting at COD; therefore, capital spending amounts are not added to rate base & collected through a FERC tariff. ROEs are expected to start lower & increase over the contract life to achieve an equivalent 10.57% levelized average. (4) Includes AFUDC; est. rate based on Transmission ROE and capital structure. 36 Estimates as of November 5, 2020 Investor Day. FACTBOOK NECEC Timeline April 2021
NECEC Filing Status Expected Completion MA DPU Approval of Contracts Filed July ’18 Approved June ’19 FERC Approval Filed August ’18 Approved October ’18 MPUC Certificate of Public Convenience Filed September ’17 Granted May ’19 & Necessity (CPCN) Maine DEP & LUPC Filed September ’17 LUPC Certification granted January ’20 MDEP Site/NRPA granted May ’20 ISO-NE System Impact Study Filed April ’17 I.3.9 approval granted July ’20 CCIS certificate issuance Q2 ’21 US Army Corps of Engineers (US ACE) Filed September ’17 Granted November ’20 Individual Permit Presidential Permit Filed July ’17 Granted January ’21 Municipal Approvals Applications submitted to date: 16 As needed throughout construction period Approvals received to date: 11
37 FACTBOOK Major Projects – CT & MA April 2021
In Progress: • Metro-North Rail Road Corridor (UI T) ✓ ~$172M (2021-2025) Increases capacity & reliability of the T lines along Metro-North corridor with investments such as Fairfield to UI New Haven 115kV reconductoring. Several segments go into service starting in 2024. • Coastal Substation Flood Mitigation (UI D and UI T) ✓ ~$136M (2021-2025) To address resiliency of those substations along the CT coastline.
In Progress: • Leak Prone Main Replacement (Gas D) ✓~$415M in CT & MA (2021-2025) Infrastructure replacement to ensure system safety. • Gas Expansion Plan (Gas D) ✓~$111M (2021-2025) 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 SCG Year Town/OpCo Miles of Main $M BGC 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
38 FACTBOOK Networks Capex April 2021
Organic investments focused on improving safety & reliability, while enhancing efficiency
$M $2,114 $1,958 67 6 (1) $1,861 60 Corp 15 22 6 52 MNG 3 17 74 $1,623 17 10 53 96 BGC 60 74 108 7 88 86 CNG 19 66 120 60 138 SCG 83 412 60 97 UI T 132 129 401 75 85 UI D 162 93 47 117 NECEC 131 83 103 95 74 85 CMP - T 304 291 CMP - D 305 271 106 RGE - G 118 91 92 RGE - E NYSEG - G 571 545 590 482 NYSEG - E
2019A 2020A 2021E 2022E
(1) Includes facilities, IT, security, fleet, other. Estimates as of November 5, 2020 Investor Day. Does not include MEPCO (2019: $20; 2020: $23 ; 2021: $32 ; 2021: $31). 39 Amounts may not add up due to rounding. 2. Avangrid Networks
2.3. Regulatory
FACTBOOK April 2021
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 40 FACTBOOK Networks Rate Base April 2021
Investments drive predictable rate base growth(1)
$B Average '19-'21 $11.2 Electric - D&T 57% $10.7 FERC - T 20% $10.4 0.08 0.08 0.13 MNG Gas 23% 0.08 0.12 0.53 0.52 BGC 0.54 0.14 0.63 0.59 0.68 CNG 0.59 0.66 0.67 1.21 1.17 SCG 1.11 1.46 UI T 1.45 1.47 UI D 0.96 0.98 0.93 0.54 CMP - T 0.49 0.52 CMP - D 1.71 1.45 1.57 RGE - G 0.70 0.61 0.70 RGE - E NYSEG - G 2.25 2.41 2.61 NYSEG - E
2019A 2020A 2021E
(1) Average rate base; NECEC is not included in rate base. Estimates as of November 5, 2020 Investor Day. Actuals per 2020 10-K report. Does not include MEPCO (2019: $0.09; 2020: $0.12 ; 2021: $0.15). 41 Amounts may not add up due to rounding. FACTBOOK Networks Rate Base Evolution April 2021
~75% Rate Base covered by Rate Plans and FERC Formula Rates
Average Rate Base(1) Est. +$0.5B (~5% increase vs. ’20)
• ~90% Electric & Gas • ~10% FERC Transmission
(2) (3) (3)
(1) Includes MEPCO (2020: $0.12 ; 2021: $0.15); NECEC is not included in rate base. (2) Capex is average of 2020-2021. (3) CWIP = Construction Work in Progress; D&A = Depreciation & Amortization. 42 Amounts may not add up due to rounding. FACTBOOK Base Allowed ROEs April 2021
Allowed returns as of March 31, 2021
11.70%
CMP T UI T 11.20% 10.57- 10.57- 11.74% 11.74% 10.70%
10.20% BGC 9.70% MNG 9.55% 9.70%
CMP D SCG CNG 9.20% RGE UI D (3) 9.30% NYSEG (2) 9.25% 9.25% (2) 9.10% 9.00% 9.00% 8.70% Base: 8.8% Base: 8.8%
8.20% Bubble size reflects each company’s relative rate base(1) 7.70%
(1) 2020 Average Rate Base of ~$10.7B. (2) Includes 20bp allowance before sharing in Rate Year 1. 43 (3) Does not include -1.00% management efficiency adjustment, in place until customer service metrics are achieved for 18 months starting 3/1/2020. FACTBOOK Regulatory Framework April 2021
~75% Rate Base covered by Rate Plans and FERC Formula Rates; Nearly all of Rate Base with Forward Test Years or FERC Formula Rates
Rate Base Covered by Rate Base Recovered Rate Plans(1) Under Forward Test Year
Historic FERC Test Year Formula FERC 1% Rates 20% Formula Rates 20%
CMP, SCG, UI 26% Rate Plans 54% Forward Test Year 79%
(1) Average Rate Base estimate as of 12/31/2020; Rate Plans as of 2/28/2021 (including NYSEG, RG&E, CNG, BGC). 44 Amounts may not add up due to rounding. FACTBOOK New York Rate Plans April 2021
Reflects December approval of modified joint proposal
NY State Electric NY State Gas Rochester Electric Rochester Gas (NYSEG-E) (NYSEG-G) (RGE-E) (RGE-G) Jurisdiction New York Regulator New York Public Service Commission (NYPSC) Term 3 year plan (5/1/20 - 4/30/23) settled December 2020; tariffs increase retroactively effective April 17, 2020 (with a make-whole) Year 1 - $45.7M Year 1 - ($10.7M) Year 1 - ($3.3M) Year 1 - ($10.9M) Annual Rate Increases Year 2 - $99.2M Year 2 - $14.2M Year 2 - $53.2M Year 2 - $10.4M Year 3 - $56.1M Year 3 - $15.1M Year 3 - $37.8M Year 3 - $15.1M Avg. Rate Base (’20) $2,408M $703M $1,566M $492M Allowed ROE / Equity Ratio 8.8% / 48% Earnings sharing at 50% equity: Earnings Sharing 100% up to 9.00% in Rate Year 1, up to 9.10% in Rate Year 2, and up to 9.20% in Rate Year 3 Rate Year Forecast • Rate Adjustment Mechanism up to $42.8M/yr Trackers / • Revenue Decoupling Reconciled Costs • Other reconciliations: major storms, environmental expense, energy efficiency, debt cost, labor, pensions/OPEBs, property taxes, pipeline integrity costs, economic development & low income programs, vegetation management, net plant, labor ROE filing Annually (filed end of July) 2019 (after-sharing)(1) 4.0% 7.6% 8.7% 7.0% 2018 (after-sharing)(2) 6.2% 8.6% 9.9% 8.3% 2017 (after-sharing)(3) 8.6% 10.0% 9.8% 9.7% 2016 (after-sharing)(4) 8.7% 9.8% 9.1% 9.8% 2015 (after-sharing) 7.9% 9.7% 6.0% 4.2%
Achieved ROEs 2014 (after-sharing) 9.7% 10.0% 9.5% 7.3%
(1) ROEs for rate year 5/1/19 - 4/30/20. (2) ROEs for the 3rd rate year (5/1/18 - 4/30/19) under 3 year rate plan settled June 2016. (3) Amended ROEs for the 2nd rate year (5/1/17 - 4/30/18) under 3 year rate plan settled June 2016. 45 (4) Amended ROEs for the 1st rate year (5/1/16 - 4/30/17) under 3 year rate plan settled June 2016. FACTBOOK New York Rate Cases – Key Highlights April 2021
Modified Joint Proposal (JP) Approved by Commission on 11/19/20; Accepted by Company on 11/23/20
• 3-year rate plan provides stability & certainty of investment plans for ~48% of AVANGRID’s Networks rate base • Keeps the companies ‘whole’ from an earnings standpoint, with a ‘make-whole’ back to April 17, 2020 • Substantial improvements to mitigate outages & associated restoration costs with: o Enhanced vegetation management (+90% at NYSEG & +19% at RGE) o Significantly improved staging cost recovery – now UNLIMITED staging events (Unlimited ($250K up to - $1.5M for NYSEG & $1.25M for RGE); sharing > max thresholds) o Increased workforce (FTEs vs. 2018 Test Year +344 RY1 & +517 RY3) o Investments to improve system reliability & addresses needed infrastructure improvements (i.e. resiliency, bulk electric system requirements, AMI) (Total Capex 2019-2025 ~$5.1B (including AMI in 2024 & 2025)) • Establishes an 8.8% ROE with a 48% equity ratio & an earnings sharing mechanism based on a 50% equity ratio. Earnings sharing is 50/50 above 9% in Rate Year 1, above 9.10% in Rate Year 2 & above 9.20% in Rate Year 3 • Includes many tracking & reconciliation mechanisms to reduce risk (e.g. for major storms, environmental expenses, debt costs, pension/OPEBs, property taxes, economic development & low income programs) • Opportunity for incremental earnings with an Earnings Adjustment Mechanism, based on achieving certain metrics at each company • Provides recoverable customer relief (including direct customer credits) during the pandemic • Institutes a progressive set of commitments regarding natural gas businesses related to climate change
46 FACTBOOK New York Rate Cases – Modifications to JP April 2021
Modifications increase earnings slightly; moderate impact to consolidated cash flow
• Revenue requirements were lowered to provide immediate relief to customers during COVID-19; no programs or costs in the JP were disallowed in the modified JP. Reductions were achieved without negatively impacting earnings by lowering pass-through expense & increasing capitalization & deferrals. o Energy efficiency program costs (pass-through) were capped at Rate Year 1 levels. The modified JP permits the company to spend above the capped RY1 levels (subject to the caps already in the JP) & defer those excess amounts for future recovery. o Grid model enhancement program expenses capitalized vs. expensed (~$1.35M Rate Year 1; $10M in each of Rate Years 2 & 3) o NYSEG’s vegetation management Reclamation Program ($17.2M/rate year) was modified to collect over 10 years vs. expensed. The amortizations of Danger Tree program costs ($10M/rate year for NYSEG & $1.6M/rate year for RG&E) was extended from 5 to 10 years. o Additional excess depreciation reserve in RY2 & RY3 to modify rates for NYSEG (EDR is a deduct to rate base, so amortizing quicker provides a small benefit to rate base); increased in RY2 from $34.95M to $38.95M & increased in RY3 from $39.1M to $71.6M. • Joint proposal modifications do not reduce earnings (modifications to revenue requirements to reduce customer bill impacts are offset by accelerated regulatory amortizations); make-whole back to April 17, 2020
NY Modified Joint Proposal Comparison with Joint Proposal Higher Rate Base & Return Consolidated Impacts ($000s) Compensating for Lower Cash Flow RY1 RY2 RY3 TME 4/30/2021 TME 4/30/2022 TME 4/30/2023 2021 2022 2023 Deferred recovery of some items has up to ~10-20 Net Income 0.2 0.6 1.8 0.5 1.4 0.6 bps impact on consolidated cash flow metric Rate Base 3.8 14.6 42.7 11.0 33.3 14.2 Not all items result in deferrals, some increase rate base & therefore improve earnings Cash From Operations (21.6) (11.2) (6.5) (14.7) (8.1) (2.2)
47 FACTBOOK NY Rate Case – 2016 Rate Plan vs. Modified Joint Proposal April 2021
Description 2016 Rate Plan (3 YR) 2020 Modified Joint Proposal (1) 1 Term Years 3 Yr Rate Plan (May 1, 2016 – April 30, 2019) with 3 Yr Rate Plan (May 1, 2020 – April 30, 2023) with right to continue right to continue, effective Dec. 1, 2020 with make whole back to April 17, 2020 2 Impact on Total Rates RY3 (2) RY1 (excluding, energy efficiency – regulatory amortizations which add to revenues) NE: 2.1% NE: 2.3% NG: 4.1% NG: 0.0% RE: 3.4% RE: 2.2% RG: 2.8% RG: 0.0% 3 Authorized ROE / Equity 9.0% ROE / 48% Equity 8.80% ROE / 48% Equity 4 Customer/Company Sharing (based on RY1: 50%/50% >9.50% to 10.00% RY1: 50%/50% >9.00% to 9.50% lower of actual or 50% equity) 75%/25% >10.00% to 10.50% 75%/25% >9.50% to 10.00% 90%/10% > 10.50% 90%/10% >10.00% RY2: +.15% RY2: +.10% RY3: +.25% RY3: +.20% 5 Average Rate Base RY3 (5/18 – 4/19) RY1 (5/20 – 4/21) NE: $1.89B NE: $2.44B NG: $574M NG: $662M RE: $1.50B RE: $1.50B RG: $463M RG: $509M Total: $4.43B Total: $5.11B
(1) NYSEG and RG&E 2019 Rate Case Filings can be found on the NYPSC Website under Case Nos. 19-E-0378, 19-G-0379, 19-E-0380 and 19-G-0381; 48 (2) NE = NYSEG Electric; NG = NYSEG Gas; RE = RG&E Electric; RG = RG&E Gas; RY = Rate Year. FACTBOOK NY Rate Case – 2016 Rate Plan vs. Modified Joint Proposal April 2021
Description 2016 Rate Plan (3 YR) 2020 Modified Joint Proposal (1) 6 Storm Cost Treatment Minor (No Deferral) = NE $5.3M; Minor (No Deferral) - NE $3.8M; RE $2.4M RE $1.0M Major (Deferral) – NE $21.4M; RE $2.5M Major (Deferral) – NE $25.6M; RE $3.4M Pre-Staging = Deferral if over $250K; NE 3 events / Pre-Staging = Deferral if over $250K; NE capped at yr; RE 2 events /yr $1.5M, RE capped at $1.25M, per event, unlimited events / yr, with 85%/15% sharing (Reserve/Company) > cap 7 Vegetation Management NE - Not on 5-yr Cycle, collect $30M / yr NE - Not on a 5-yr Cycle, spend $57M /yr (+90%), RE - on 5-yr Cycle defer/amortize $17M Reclamation, $10M Danger Tree RE - on a 5-yr Cycle, spend $8.4 M /yr (+19%), defer/amortize $1.6M Danger Tree 8 Resiliency Plan (excluding substations) No $143M (’20-’23) 9 Automated Metering Infrastructure (AMI) No ~$489M Capital Investment (’20-’25) Meter Deployment beginning 2Q ’22 11 Earnings Adjustment Mechanism (EAM) No RY1 (basis points) NE 7.5 – 62.2 Subject to reaching min. thresholds, NG 2.5 – 19.9 (outside of earnings sharing) RE 7.5 – 57.1 RG 2.5 – 23.0 12 Emergency Preparedness N/A Expansion and incremental Electric Ops staffing – RY1 +344 FTE vs. ’18 test year 13 Customer Relief (COVID-19 Pandemic N/A Up to $30M, recovery over 5-yrs beginning July ’21 provision) thru Rate Adjustment Mechanism (RAM)
(1) NYSEG and RG&E 2019 Rate Case Filings can be found on the NYPSC Website under Case Nos. 19-E-0378, 19-G-0379, 19-E-0380 and 19-G-0381; 49 (2) NE = NYSEG Electric; NG = NYSEG Gas; RE = RG&E Electric; RG = RG&E Gas; RY = Rate Year. FACTBOOK NY Rate Case – 2016 Rate Plan vs. Modified Joint Proposal April 2021
Description 2016 Rate Plan (3 YR) 2020 Modified Joint Proposal (1) 14 Revenue Decoupling Mechanism Yes Yes
15 Rate Adjustment Mechanism (RAM) Up to $40M /yr for major storms, gas leak prone pipe Up to $42.8M /yr used to return or collect the replacement, NE pole attachment revenues, and REV Customer Bill Credits beginning in RY2, and the net costs & fees that are not covered by other recovery balance of other eligible deferrals & costs, including mechanisms property taxes, major storm deferral balances, gas leak prone pipe replacement incentive, REV & EV costs & fees not covered by other recovery mechanisms, energy efficiency and heat pump deferrals 16 Reconciliations (full or downward only, Yes, most symmetrical; downward only for net plant, Decoupling, major storms, environmental expenses, including with carryover) vegetation management; incremental maintenance energy efficiency, debt cost, labor, pensions/OPEBs, property taxes, pipeline integrity costs, economic development & low income programs, downward only: vegetation management, net plant, labor, pipeline integrity costs 17 Customer Service, Electric Reliability & Yes Yes Gas Safety Metrics 18 Additional Regulatory Amortizations N/A RY1 – estimated $117M (primarily Tax Reform) adds to Revenues
(1) NYSEG and RG&E 2019 Rate Case Filings can be found on the NYPSC Website under Case Nos. 19-E-0378, 19-G-0379, 19-E-0380 and 19-G-0381; 50 (2) NE = NYSEG Electric; NG = NYSEG Gas; RE = RG&E Electric; RG = RG&E Gas; RY = Rate Year. FACTBOOK Connecticut Rate Plans April 2021
UI reached Settlement Agreement to continue rate plan through 2023, subject to approval; CNG in 3rd year of rate plan United Illuminating Distribution Southern Connecticut Gas Connecticut Natural Gas (UI-D) (SCG) (CNG) Jurisdiction Connecticut Regulator Public Utilities Regulatory Authority (PURA) 3 year plan 2017-2019 3 year plan 2018-2020 3 year plan 2019-2021 Term Effective January 2017 Effective January 2018 Effective January 2019 Year 1 - $1.5M Year 1 - $9.9M Annual Rate Increases Year 2 - $4.7M Year 2 - $4.6M Year 3 - $5.0M Year 3 - $5.2M Avg. Rate Base (’20) $1,170M $588M $524M Allowed ROE 9.10% 9.25% 9.30% Allowed Equity Ratio 50% 52% 54% ’19 / 54.5% ’20 / 55% ’21 Actual Equity Ratio (’20) 58% 55% 57% Earnings Sharing 50/50 above ROE 50/50 above ROE 50/50 above ROE Rate Year Forecast · Revenue Decoupling · Revenue Decoupling · Revenue Decoupling · Major Storms · System Expansion Rate · System Expansion Rate Trackers / · Energy Supply (pass through) · Energy Supply (pass through) · Energy Supply (pass through) Reconciled Costs · Low Income · Low Income · Low Income · Distribution Integrity Mgmt Program · Distribution Integrity Mgmt Program ROE filing Quarterly Quarterly Quarterly 2020 (after-sharing) 9.0%(1) 7.8%(1) 9.4%(1) 2019 (after-sharing) 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% Achieved ROEs 2014 (after-sharing) 9.7% 8.7% 9.9% 51 (1) Based on actual equity ratios vs. allowed. FACTBOOK Maine & Massachusetts Rate Plans April 2021
Central Maine Power Maine Natural Gas Berkshire Gas Company Distribution (CMP-D) (MNG) (BGC) Jurisdiction Maine Massachusetts Regulator Maine Public Utilities Commission (MPUC) Department of Public Utilities (DPU) 10 year plan thru 4/26/16 3 year plan 2019-2021 Term 1 year plan 3/1/20 – 2/28/21 subject to Year 7 review Effective January 2019 Year 1 - $2.3M Annual Rate Increases Year 1 - $17.4M Years 2 & 3 - Freeze Avg. Rate Base (’20) $982M $77M $124M 9.25% less 1.00% mgmt. efficiency Allowed ROE 9.55% 9.7% adjustment(1) Allowed Equity Ratio 50% 50% 54% Earnings Sharing No 50/50 above 12.05% No Rate Year Forecast Forecast Historic · Revenue Decoupling · No Revenue Decoupling · Revenue Decoupling · Major Storms · Gas Supply (pass through) · Gas Supply (pass through) · Greater Minor Storm recovery Trackers / ($8.1M/year vs. $4M prev.) Reconciled Costs · Vegetation mgmt. funding increased 25% · Environmental · Gas Supply (pass through) ROE filing Annually Annually Annually 2020 6.2% NA To be filed 2Q 2019 6.1% NA 10.8% 2018 4.2% NA NA 2017 12.7% NA NA 2016 11.4% NA NA 2015 7.6% NA NA Achieved ROEs 2014 9.6% NA NA 52 (1) ROE management efficiency adjustment until customer service metrics achieved for 18 months. FACTBOOK FERC Jurisdiction Rate Plans April 2021
Central Maine Power United Illuminating Transmission (CMP-T) Transmission (UI-T) Regulator Federal Energy Regulatory Commission (FERC) Term Annual filing by July 31 Avg. Rate Base (’20) $1,448M $662M Allowed ROE 10.57-11.74% 10.57-11.74% Equity Ratio Actual (~53-59%) Actual (~53-58%) Earnings Sharing No No Decoupling No No • 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 Trackers / Construction Work in Progress (CWIP) in rate base Reconciled Costs • 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 2020 12.0% To be filed mid-year
(1) 2019 9.9% 11.3% 2018 11.8% 11.3% 2017 11.4% 11.3% 2016 11.2% 11.4% 2015 10.6% 11.4%
Achieved ROEs 2014 10.5% 12.1% 2013 11.3% 12.2%
53 (1) Based on actual equity ratios vs allowed. FACTBOOK FERC Approved ROEs - Transmission April 2021
T FERC ~$2B Rate Base by earned ROE at YE ‘20
ROE 10.57% $0.3B
ROE 11.07% $0.5B
ROE 11.74% $1.2B
Main projects receiving 11.74%:
• ‘05-’08 Regional - < $0.1B • MPRP - $1.0B • Middletown-Norwalk - $0.2B • NEEWS - < $0.1B
54 FACTBOOK Road to Authorized ROE April 2021
Data-driven plan focused on Accountability, Efficiency, Continuous Improvement & Alignment to Rate Cases
4 Strategic Pillars Improving predictability & sustainability of results
1Networks Plan Operational Excellence Enhancing efficiencies & process optimizations
Improving Quality of Supply Reliability investments Worst performing circuits focus
Accountability & Governance Investment planning Workforce optimization Increased alignment with rate case outcomes
Rate Case Planning & Execution Timing & approaches
55 FACTBOOK EV Programs & Pilots April 2021
EV make-ready programs at all AVANGRID electric utilities
Total Potential L2 (7.2 kW) L L3 (DCFC, ≤ 50 kW) 3 Investment installed installed
New York $146.5M(1) 13,457 399 (9,279 NYSEG & 4,178 RG&E) (250 NYSEG & 149 RG&E) NY PSC Order approved a statewide EV make-ready program through 2025 for L2 & DCFC, enabling more investments
Connecticut $20.3M 1,281 141
Comprehensive EV Program proposed for UI; part of ongoing CT Grid modernization framework to support EV Charging infrastructure
Maine $240K 30
Pilot program approved to install charging infrastructure launched Summer 2020 NECEC Stipulation Funding: $15M EV fund for DCFC network
New partnership with EV Connect, an integrated EV charging solutions platform. EV Connect actively manages over 1 million transactions per year across thousands of site owners, dozens of networks, and supports nearly 100,000 EV drivers via the EV Connect app. With utility coordination and partnership, EV Connect provides data analytics to understand usage patterns and impacts to the grid.
56 (1) Total potential investment by 2025; includes $23M from Joint Proposal through 2023 & funding for transit bus charger make-ready & medium/heavy duty pilots. FACTBOOK Big Data & Robotics April 2021
Leveraging intelligent models to enhance decision-making & reduce outage restoration costs
Voltage Monitoring Vegetation Management Use case deployed 2019; Target 2021 deployment enhancements underway Analytics to improve decisions in trim Proactively identify & address issues cycle strategy & predict growth-related that could impact service outages Distribution Transformer Monitoring Use case deployed 2020; enhancements planned Robotics Predict/anticipate failure Wave 1 2019 - Billing (YTD processed >270K transactions) Est. Time of Restoration (ETR) Prediction Wave 2 2020 - 10 bots targeted (billing, Under development; metering, remittance, contact center) Target 2020 deployment Analytics model for ETR prediction with machine learning
57 FACTBOOK 2025+ Opportunities - Natural Gas & RNG April 2021
Natural gas is an important enabler of a clean energy future
▪ Continued investments to support safety & reliability of our systems ▪ Meeting customer demand for natural gas as a clean & economical energy alternative ▪ Implementing gas alternative options aligned with NY rate plan commitments
A safe & reliable natural gas system enables growth in renewable electricity
Developing a comprehensive RNG strategy
▪ Reduce GHG emissions
▪ Substitute for use of traditional natural gas NYSEG has 3 RNG locations in NY targeted ▪ Uses technology & innovation to provide safe, reliable & for go-live 3Q 2021 (~36 MCFH) clean energy to customers ▪ Leverages existing distribution systems
58 FACTBOOK 2025+ Opportunities - Transmission April 2021
Additional transmission to support clean energy goals provides opportunities
Transmission Opportunities
Transmission to support NE & Modernizing existing assets Northeastern offshore opportunities NY RPS targets
Potential Areas of Interest
Northeast offshore & onshore, WECC 59 2. Avangrid Networks
2.4. How to Model
FACTBOOK April 2021
60 FACTBOOK Networks Seasonality – Electric & Gas Sales April 2021
Electric Delivery (GWh) Gas Delivery (mcf)
11000 90000
70000 9000 50000
7000 30000
5000 10000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2016 2017 2018 2019 2020 2021 Avg.2016-2021 2016 2017 2018 2019 2020 2021 Avg. 2016-2021
• Relative stability quarter to quarter • Strongest quarters 1Q & 4Q with colder (decoupled except for CMP-T retail) weather (decoupled except for MNG)
61 FACTBOOK How to Model April 2021
Approach for Networks Income Calculation + Rate Base * Equity Ratio(1) * Regulatory ROE (8 utilities) Other Income: • Allowance for funds used during construction (AFUDC, including AFUDC for NECEC) + • Carrying costs on regulatory assets & liabilities not included in Rate Base • Be sure to tax effect values + Equity Investments (GenConn, NY Transco, MEPCO) Networks “Income”
62 (1) Connecticut companies, CMP, and Transmission based on actual equity ratio. FACTBOOK Economics April 2021
• Rate Base = Gross plant in service - Book depreciation - Deferred income taxes +/- working capital +/- Rate regulatory assets & liabilities (not accruing carrying costs) + prepaid + materials & supplies Base • Average rate base for a 13-month period used for gas & electric distribution & UI transmission. Year-end rate base used for CMP Transmission.
AFUDC • 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 Carrying Costs • This has an impact on current earnings, but there is no current cash flow impact
Equity • 50% JV with affiliates of Clearway Energy (GenConn) in two regulated peaking plants with ROE of 9.85% Income • 20% investment in NY Transco with 53% Equity Ratio
• Based on formulas approved by regulator & used in annual compliance filings Earned • Formulas based on operating income with certain regulatory adjustments ROE • Earned ROE assumptions in ’20-’25 Long-term Outlook: Expect to earn allowed ROEs by middle of the period.
63 FACTBOOK How to Calculate Earned ROE - Example April 2021
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 64 FACTBOOK How to Calculate Earned ROE - Example (Cont’d) April 2021
• 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 (Line 25 = 23 * 24) as a Percentage of the Equity Component of Rate Base
(Line 26 = 22 / 25) • If the Achieved ROE is above the Earnings Sharing Target, a percentage of the Additional Earnings would be Shared with Customers
65 3. Avangrid Renewables
3.1. Portfolio Characteristics
FACTBOOK April 2021
66 FACTBOOK Avangrid Renewables – Historical Growth & Future Projects April 2021
2022 – Mohawk, 2021 – Tatanka, La Joya, 2017 – El Cabo, Tule I, 2018 – Wy 2019 – Montague, Bakeoven, Camino 2020 – Otter Roaring Brook, Lund Hill, (1)(2) Deerfield, Twin Buttes ’East Solar Coyote Ridge, Solar + Storage, Creek Golden Hills, Montague MW Renewables Capacity Growth II (534 MW) + Gala (13 MW) Karankawa, Patriot Great Bear, Midland (158 MW) Solar (1,016 MW) Solar (70 MW) (753 MW) (628 MW) 10,000
2013-2016 Selective Growth – 9,000 Baffin Wind and Amazon Wind Farm East (410 MW) 8,000 7.9 GW Installed (1Q ‘21) 7,000 Pipeline 6,000 of 2009-2012 ITC(3) Cash Grant ~23 GW(4) Projects (~3,416 MW) 5,000 4,000 3,000
2,000 1999-2003 Total 26 MW 1,000 0
(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). 67 (4) Onshore Wind 3.5 GW, Solar 14.2 GW, & Offshore Wind 4.9 GW. (1) FACTBOOK Operating Footprint April 2021
3rd largest wind & solar operator in the U.S. with ~7.9 GW installed; leading the development of large- scale offshore wind in the U.S.
Wind
Offshore Wind Solar
Thermal
~1.3 GW of projects under construction in ’21 & ’22 including ~390 MW wind & ~915 MW solar
(1) As of 3/31/2021. Includes joint ventures.. 68 (1) FACTBOOK Contracted & Merchant Evolution April 2021
100%
90% 12% 19% 25% 80% 14% 70% 10% 9% 60%
50% 75% 71% 66% 40%
30%
20% Targeting 85%-95% PPAs plus Hedges
Wind & Solar GWh (% & Contracted) (% GWh Solar Wind 10%
0% Balance of 2021 2022 2023 88% PPA + Hedges 81% PPA + Hedges 75% PPA + Hedges
PPA Hedges Open Position
• Chart reflects existing capacity & projects currently in construction
(1) As of 3/31/2021. Amounts may not add due to rounding. 69 (1)(2) FACTBOOK Portfolio Characteristics April 2021
✓ Total Installed capacity of 8.2 GW in 22 states & 9 electric power markets; 8.1 GW of wind and 130 MW solar PV(4) generation
✓ ~69% of installed capacity under long-term contract
✓ ~9.5 years average remaining PPA life
✓ Target 85-95% capacity under contract and/or hedged
✓ Weighted Average PPA price realized to date = $48.0/MWh.
✓ Escalators on ~50% of PPAs
✓ Industry-leading energy management capabilities
✓ 24/7 operations, maintenance, dispatch, & load balancing for 72(2) operating wind & solar assets
(1) As of 3/31/2021. (2) Includes joint ventures and managed PPAs. (3) Average onshore wind operating capacity 1Q ‘21; 7.5 GW, 1Q ‘20 7.2 GW. (4) Solar capacity is being reported in MWdc. 70 (1)(2) FACTBOOK Portfolio Characteristics April 2021
Contracted & merchant installed capacity distributed across regions
Contracted = 69% Merchant = 31%
• Price exposure managed with PPAs, fixed price power & gas hedges • Approximately one-third of merchant exposure is covered by hedges • Target overall 85-95% production under PPA or Power Hedge
(1) As of 3/31/2021. (2) Excludes joint ventures and managed PPAs.. 71 (1) FACTBOOK Renewables Counterparty Credit April 2021
Strong investment grade counterparties
PPA/Structured (98%) Trading/Master Agreement (2%)
(1) As of 03/31/2021. (2) Utilities section includes Utilities, Cooperatives and Joint Power Agencies. Amounts may not add up due to rounding. 72 3. Avangrid Renewables 3.2. Facilities & Contracts FACTBOOK April 2021 73 (1) FACTBOOK Wind Facilities 1/3 April 2021 Contracted/ Location State Wind Project Turbines MW COD NERC Region PTC/ITC Tax Equity Merchant Arizona AZ Dry Lake I 30 (Suzlon, S88, 2.1 MW) 63 2009 WECC Contracted ITC Cash Grant AZ Dry Lake II(2) 31 (Suzlon, S88, 2.1 MW) 33 2010 WECC Contracted ITC Cash Grant California CA Dillon 45 (Mitsubishi, MWT62, 1.0 MW) 45 2008 CAISO Contracted PTC Expired CA Manzana 126 (GE, 1.5 SLE, 1.5 MW) 189 2012 CAISO Contracted ITC Cash Grant CA Mountain View III 34 (Vestas, V47, 0.66 MW) 22 2021 CAISO Contracted PTC Expired CA Phoenix Wind Power 3 (NMicon-Vestas, NM48, 0.7 MW) 2 1999 CAISO Merchant PTC Expired CA Shiloh 100 (GE, 1.5 SLE, 1.5 MW) 150 2006 CAISO Contracted PTC Expired CA Tule 57 (GE, GE2.3, 2.3 MW) 131 2018 CAISO Contracted PTC Colorado CO Colorado Green 108 (GE, 1.5sle RP1.62, 1.62 MW) 162 2020 WECC Contracted PTC Expired CO Twin Buttes 50 (GE, 1.5 SLE, 1.5 MW) 75 2007 WECC Contracted PTC Expired 30 (Gamesa, G114, 2.1 MW) CO Twin Buttes II 6 (Gamesa, 2 MW) 75 2017 WECC Contracted PTC 38 (Vestas, V136, 3.8 MW) Illinois IL Otter Creek 4 (Vestas, V126, 3.4 MW) 158 2020 PJM Contracted PTC Tax Equity IL Providence Heights 36 (Gamesa, G87, 2.0 MW) 72 2008 PJM Merchant PTC Expired IL Streator Cayuga Ridge South 150 (Gamesa, G87, 2.0 MW) 300 2010 PJM Merchant ITC Cash Grant Iowa IA Barton 79 (Gamesa, G87, 2.0 MW) 158 2009 MISO Contracted ITC Cash Grant IA Flying Cloud 29 (GE, 1.5S, 1.5 MW) 44 2003 MISO Contracted PTC Expired IA New Harvest 50 (Gamesa, G87, 2.0 MW) 100 2012 MISO Contracted ITC Cash Grant IA Top of Iowa II 40 (Gamesa, G87, 2.0 MW) 80 2007 MISO Contracted PTC Expired IA Winnebago I 10 (Gamesa, G83, 2.0 MW) 20 2008 MISO Contracted PTC Expired Kansas KS Elk River 100 (GE, 1.5 SLE, 1.5 MW) 150 2005 SPP Contracted PTC Expired Massachusetts MA Hoosac 19 (GE, 1.5 SLE, 1.5 MW) 29 2012 ISO-NE Contracted ITC Cash Grant Minnesota MN Elm Creek II 66 (GE, 1.5 SLE, 1.5 MW) 99 2008 MISO Contracted PTC Expired (1) As of 3/31/2021. (2) Jointly owned; capacity amounts represent only Renewables’ share of the facility. 74 (1) FACTBOOK Wind Facilities 2/3 April 2021 Contracted/ Location State Wind Project Turbines MW COD NERC Region PTC/ITC Tax Equity Merchant Minnesota SD MinnDakota 100 (GE, 1.5sle, 1.5 MW) 150 2008 MISO Contracted PTC Expired Partially MN Trimont 67 (GE, 1.5sle RP1.62, 1.6 MW) 107 2021 MISO Contracted PTC Expired MN Elm Creek II 62 (Mitsubishi, MWT95, 2.4 MW) 149 2010 MISO Contracted ITC Cash Grant MN Moraine I 34 (GE, 1.5 S, 1.5 MW) 51 2003 MISO Merchant PTC Expired MN Moraine II 33 (GE, 1.5 SLE, 1.5 MW) 50 2009 MISO Contracted ITC Cash Grant Missouri MO Farmers City 73 (Gamesa, G87, 2.0 MW) 144 2009 MISO Merchant ITC Cash Grant New Hampshire NH Groton 24 (Gamesa, G87, 2.0 MW) 48 2012 ISO-NE Contracted ITC Cash Grant NH Lempster 12 (Gamesa, G87, 2.0 MW) 24 2008 ISO-NE Contracted PTC Expired New Mexico NM El Cabo 149 (Gamesa, G114, 2.1/2 MW) 298 2017 CAISO Contracted PTC Tax Equity 35 (Gamesa, G114, 2.6 MW) NM La Joya 76 (GE, GE127, 2.82 MW) 306 2021 WECC Merchant PTC New York NY Hardscrabble 37 (Gamesa, G90, 2.0 MW) 74 2011 NYISO Merchant ITC Cash Grant NY Maple Ridge I(2) 70 (Vestas, V82, 1.65 MW) 116 2006 NYISO Merchant PTC Expired Partially NY Maple Ridge II(2) 27 (Vestas, V82, 1.65 MW) 45 2006 NYISO Contracted PTC Expired 20 (Gamesa, 5-G114/15-SG145, Partially NY Roaring Brook 2.625/4.2/4.5 MW) 71 2021 NYISO Contracted PTC North Carolina NC Amaxon Wind Farm U.S. East 104 (Gamesa, G114, 2.0 MW) 208 2017 PJM Contracted PTC Partially North Dakota ND Rugby 71 (Suzlon, S88, 2.1 MW) 149 2009 MISO Contracted ITC Cash Grant Partially Ohio OH Blue Creek 152 (Gamesa, G90, 2.0 MW) 304 2012 PJM Contracted ITC Cash Grant Oregon OR Hay Canyon 48 (Suzlon, S88, 2.1 MW) 101 2009 WECC Contracted ITC OR Klondike I 16 (GE, 1.5 S, 1.5 MW) 24 2001 WECC Contracted PTC Expired OR Klondike II 50 (GE, 1.5 SLE RP1.62, 1.62 MW) 81 2021 WECC Contracted PTC Expired 44 (Siemens, 2.3 MW) 80 (GE, 1.5 SLE, 1.5 MW) Partially OR Klondike III 1 (Mitsubishi, 2.4 MW) 224 2007 WECC Contracted PTC Expired OR Klondike IIIa 51 (GE, 1.5 SLE, 1.5 MW) 77 2008 WECC Merchant PTC Expired (1) As of 3/31/2021. (2) Jointly owned; capacity amounts represent only Renewables’ share of the facility. 75 (1) FACTBOOK Wind Facilities 3/3 April 2021 Contracted/ Location State Wind Project Turbines MW COD NERC Region PTC/ITC Tax Equity Merchant 74 (GE, 1.5 MW) Partially Oregon OR Leaning Juniper II 42 (97812, S88, 2.1 MW) 88 2010 WECC Contracted ITC Cash Grant OR Montague 56 (Vestas, V136/V126, 3.6/3.45 MW) 201 2019 WECC Contracted PTC Tax Equity OR Pebble Springs 47 (Suzlon, S88, 2.1 MW) 99 2009 WECC Contracted ITC Cash Grant OR Star Point 47 (Suzlon, S88, 2.1 MW) 99 2010 WECC Contracted ITC Cash Grant Pennsylvania PA Casselman 23 (GE, 1.5sle, 1.5 MW) 35 2007 PJM Contracted PTC Expired PA Locust Ridge I 13 (Gamesa, G87, 2.0 MW) 26 2007 PJM Contracted PTC Expired PA Locust Ridge II 50 (Gamesa, G83, 2.0 MW) 100 2009 PJM Merchant ITC Cash Grant PA South Chestnut 22 (Gamesa, G90, 2.0 MW) 44 2012 PJM Contracted ITC Cash Grant South Dakota SD Buffalo Ridge I 24 (Suzlon, S88, 2.1 MW) 50 2009 MISO Contracted PTC Expired SD Buffalo Ridge II 105 (Gamesa, G87, 2.0 MW) 210 2010 MISO Merchant ITC Cash Grant 35 (GE, 2.52 MW) SD Coyote Ridge(2) 4 (GE, 2.3 MW) 20 2019 MISO Contracted PTC 50 (GE, GE127, 2.82 MW) Partially SD Tatanka(2) 6 (GE, GE116, 2.3 MW) 23 2021 MISO Contracted PTC Texas TX Baffin 101 (Gamesa, G97, 2.0 MW) 202 2016 ERCOT Merchant PTC TX Barton Chapel 60 (Gamesa, G87, 2.0 MW) 120 2009 ERCOT Merchant ITC Cash Grant 22 (GE, 2.3 MW) 9 (GE, 2.5 MW) TX Karankawa 93 (GE, 2.52 MW) 307 2019 ERCOT Contracted PTC Tax Equity 58 (Vestas, V136, 3.6 MW) TX Patriot 5 (Vestas, V126, 3.45 MW) 226 2019 ERCOT Merchant PTC Tax Equity Partially TX Peñascal 84 (Mitsubishi, MWT92, 2.4 MW) 202 2009 ERCOT Contracted ITC Cash Grant Partially TX Peñascal II 83 (Mitsubishi, MWT93, 2.4 MW) 199 2010 ERCOT Contracted ITC Cash Grant Vermont VT Deerfield 15 (Gamesa, G87/G97, 2.0 MW) 30 2017 ISO-NE Contracted PTC Washington WA Big Horn I 133 (GE, 1.5sle, 1.5 MW) 200 2006 WECC Contracted PTC Expired WA Big Horn II 25 (Gamesa, G90, 2.0 MW) 50 2010 WECC Contracted ITC Cash Grant Partially WA Juniper Canyon 63 (Mitsubishi, MWT95/2.4, 2.4 MW) 149 2011 WECC Contracted ITC Cash Grant (1) As of 3/31/2021. (2) Jointly owned; capacity amounts represent only Renewables’ share of the facility. 76 (1)(2) FACTBOOK Solar & Thermal Facilities April 2021 Contracted/ Location State Project Type MW COD NERC Region PTC/ITC Merchant Arizona AZ Copper Crossing Solar Ranch(3) Solar 14 2011 WECC Partially Contracted ITC Cash Grant Colorado CO San Luis Valley Solar Ranch(3) Solar 35 2012 WECC Contracted ITC Cash Grant Oregon OR Gala Solar Solar 70 2017 WECC Contracted ITC Cash Grant OR Wy' East Solar Solar 13 2018 WECC Contracted ITC Cash Grant OR Klamath Cogeneration Thermal 536 2001 WECC Merchant N/A OR Klamath Peakers Thermal 100 2002 WECC Merchant N/A (1) As of 3/31/2021. (2) Solar capacity is being reported in MWdc. (3) Jointly owned; capacity amounts represent only Renewables’ share of the facility. 77 (1) FACTBOOK Wind Contracts 1/3 April 2021 Project Name Contract Counterparty MW Start End ISO Barton Northern Indiana Public Service Company 50 2009 2024 MISO Barton Wisconsin Public Power Inc. 30 2009 2029 MISO Barton Dairyland Power Cooperative 80 2017 2022 MISO Big Horn M-S-R Public Power Agency 200 2006 2026 WECC Big Horn II M-S-R Public Power Agency 50 2010 2035 WECC Blue Creek American Municipal Power, Inc. 52 2012 2022 PJM Blue Creek The Ohio State University 50 2012 2032 PJM Buffalo Ridge Northern Indiana Public Service Company 50 2009 2024 MISO Casselman Engie 35 2021 2023 PJM Colorado Green Public Service Company of Colorado 162 2019 2039 WECC Coyote Ridge(2) Google 97 2019 2031 MISO Deerfield Green Mountain Power 30 2017 2042 ISO-NE Desert Wind (Amazon) Amazon 208 2017 2030 PJM Dillon Southern California Edison Company 45 2008 2028 CAISO Dry Lake Salt River Project Agricultural Improvement and Power District 63 2009 2029 WECC Dry Lake II(2) Salt River Project Agricultural Improvement and Power District 65 2010 2030 WECC El Cabo Southern California Edison Company 298 2017 2037 CAISO Elk River The Empire District Electric Company 150 2005 2025 SPP Elm Creek Great River Energy 99 2009 2027 MISO Elm Creek II Uniper Global Commodities North America 149 2017 2022 MISO Flying Cloud Interstate Power and Light 44 2018 2028 MISO Groton Nstar Electric Company 48 2012 2022 ISO-NE Hay Canyon Public Utility District No.1 of Snohomish County 50 2009 2024 WECC Hay Canyon Public Utility District No.1 of Snohomish County 50 2009 2027 WECC (1) As of 3/31/2021. (2) Jointly owned, amount represents our ownership share. 78 (1) FACTBOOK Wind Contracts 2/3 April 2021 Project Name Contract Counterparty MW Start End ISO Hoosac Nstar Electric Company 29 2012 2022 ISO-NE Karankawa Austin Energy 207 2019 2034 ERCOT Karankawa Nike 100 2019 2031 ERCOT Klondike I Bonneville Power Administration 24 2002 2022 WECC Klondike II Portland General Electric Company 81 2005 2035 WECC Klondike III Eugene Water & Electric Board 25 2007 2027 WECC Klondike III Bonneville Power Administration 50 2007 2027 WECC Klondike III Pacific Gas and Electric Company 85 2007 2023 WECC Klondike III Puget Sound Energy, Inc. 50 2007 2027 WECC Klondike III Pacific Gas and Electric Company 85 2009 2021 WECC Leaning Juniper II Nike 17 2017 2026 WECC Lempster Publice Service Company of New Hampshire 24 2008 2023 ISO-NE Locust Ridge I PPL EnergyPlus, LLC 26 2007 2027 PJM Manzana San Diego Gas & Electric Company 100 2012 2032 CAISO Manzana The City of Santa Clara, California 50 2012 2032 CAISO Manzana City of Los Angles Water & Power 39 2013 2023 CAISO MinnDakota Northern States Power Company 150 2008 2022 MISO Montague Apple, Inc 201 2019 2039 WECC Moraine II Northern States Power Company 50 2019 2029 MISO Mountain View III CalChoice 22 2021 2030 CAISO New Harvest Ameren Illinois Company 54 2012 2032 MISO New Harvest Commonwealth Edison Company 46 2012 2032 MISO (1) As of 3/31/2021. 79 (1) FACTBOOK Wind Contracts 3/3 April 2021 Project Name Contract Counterparty MW Start End ISO Otter Creek T-Mobile 158 2020 2035 PJM Pebble Springs Southern California Public Power Authority 99 2009 2027 WECC Penascal City Public Service Board of San Antonio Texas 77 2009 2024 ERCOT Penascal City of Bryan, Texas 30 2010 2025 ERCOT Penascal II South Texas Electric Cooperative, Inc. 51 2011 2026 ERCOT Phoenix San Diego Gas & Electric Company 2 2004 2018 CAISO Rugby Missouri River Energy Services 40 2009 2029 MISO Rugby Central Minnesota Municipal Power Agency 5 2011 2025 MISO Rugby Central Minnesota Municipal Power Agency 9 2012 2027 MISO Rugby Upper Midwest Municipal Power Agency 30 2012 2032 MISO Shiloh(3) The City of Palo Alto, CA. 25 2006 2021 CAISO Shiloh(3) Pacific Gas and Electric Company 75 2006 2021 CAISO Shiloh(3) San Francisco Public Utilities 25 2016 2021 CAISO Shiloh Penisula Clean Energy (PCE) 25 2019 2023 CAISO South Chestnut District of Columbia Dept of General Services 46 2015 2035 PJM Star Point Modesto Irrigation District 99 2010 2030 WECC Tatanka(2) Google 98 2021 2032 MISO Tatanka(2) Dairyland Power Cooperative 57 2021 2030 MISO Top of Iowa II Madison G&E 30 2008 2028 MISO Top of Iowa II Wisconsin Public Power Inc 50 2008 2027 MISO Trimont Great River Energy 107 2005 2045 MISO Tule Southern California Edison Company 132 2018 2033 CAISO Twin Buttes Public Service Company of Colorado 75 2007 2027 WECC Twin Buttes II Tri-State Generation & Transmission 75 2017 2042 WECC Winnebago Dairyland Power Cooperative 20 2008 2028 MISO Total MWs of Operating Wind with Contracts 5,108 (1) As of 3/31/21. (2) Shiloh production will be incorporated into Peninsula contract when contracts with other counterparties expire through the end of 2021. 80 (1) FACTBOOK Other Wind Contracts April 2021 Project Name Contract Counterparty MW Start End ISO La Joya I Public Service of New Mexico 166 2021 2040 WECC La Joya II Public Service of New Mexico 140 2021 2040 WECC Roaring Brook NYSERDA 80 2021 2040 NYISO Total MWs of Wind Under Construction 386 Wind with Executed Contracts and Not in Construction Golden Hills Puget Sound Energy 201 2021 2021 WECC Midland N/A 106 2022 2022 MRO Total MWs with Executed Contracts and Not in Construction 307 Offshore Wind Vineyard Wind 501 [VW1] Massachusetts EDCs 400 2024 2024 NE Vineyard Wind 501 [Park City] Connecticut EDCs 400 2025 2025 NE Total MWs of Offshore(2) 800 (1) As of 3/31/2021. (2) Avangrid’s 50/50 partnership with Copenhagen Infrastructure Partners (CIP). 81 (1)(2) FACTBOOK Solar & Thermal Contracts April 2021 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 NYSERDA 125 2023 2042 NYISO Bakeoven Portland General Electric 78 2022 2036 WECC Bakeoven II Portland General Electric 187 2022 2026 WECC Camino (4) City of Riverside 68 2022 2036 CAISO Lund Hill Puget Sound Energy 194 2021 2040 WECC Montague Solar Portland General Electric 211 2021 2035 WECC Great Bear N/A 64 2022 2036 RFC Total MWs with Executed Contracts and Not in Construction 927 Thermal Klamath Peaker 100 2019 WECC Total with Contracts 100 (1) As of 3/31/2021. (2) Solar capacity reported in MWdc. (3) Jointly owned, amount represents our ownership share. (4) 68 MW noted for Camino includes battery storage which will deliver 11 MW for 4 hours. 82 3. Avangrid Renewables 3.3. Drivers of Growth FACTBOOK April 2021 83 FACTBOOK Renewables Development & Investment Strategy April 2021 Driving optimal value with growth & pipeline optimization • Development pipeline of ~23 GW is more than double installed capacity o Safe Harbored 80% PTC for wind projects through ’21 & 60% PTC through ’24 o Safe Harbored 30% ITC for solar projects through ’23 & 26% ITC through ’24 • Continued focus on additional new build – develop, own, operate • Significant opportunities in offshore wind with 3 lease areas off the coast of eastern U.S. • Attractive opportunities to optimize our pipeline through partnership strategies, strategic sales, & alliances • Storage is increasingly important & combined with nearly all solar RFPs 84 FACTBOOK Renewables Competitive Advantages April 2021 Diversified pipeline & Iberdrola expertise are strong advantages ~23 GW Pipeline of diverse renewables projects across all geographic regions of the U.S.; Onshore Wind: ~3.5 GW Solar: ~14.2 GW Offshore Wind: ~4.9 GW(1) ~1.3 GW of projects under construction; ~390 MW wind & ~915 MW solar Competitive 800 MW Vineyard Wind construction process initiated – manufacturing activity launched Environment Pipeline Characterization Areas of Growth Secured (100% probability) ~1.7 GW (PPA secured, capex) ~800 MW(1) Mid-Stage (50-75% probability) ~9.0 GW (land secured, interconnection, capex) ~4.2 GW(1) Early Stage (40% probability) (new development; opex only) ~7.0 GW Iberdrola provides strong operational & strategic experience, purchasing economies of scale & access to technology (1) Includes Avangrid Renewables’ 50% ownership of Massachusetts lease areas, which total ~5 GW. 85 FACTBOOK Renewables Competitive Advantages April 2021 Levelized Cost of Energy for Renewables declining due to supply chain & technology improvements, making Renewables more attractive U.S. Onshore Wind LCOE (Unsubsidized)(1) U.S. Utility-Scale Solar PV LCOE (Unsubsidized) (1) 2019 $/MWh 2019 $/MWh $143 LCOE Mean $488 LCOE Mean ~50% Decline ~70% Decline $65 $62 $156 $37 $149 $62 2011 2019 2011 2019 Demand is increasing driven by: State Renewable Portfolio Standards & emissions targets Federal Tax Credits ~30 states have RPS(2); 22 states have GHG emissions PTCs & ITCs targets(3) Customers want cleaner electricity Corporate sustainability & clean energy goals (1) Source: IRENA Renewable Cost Database, 2020. (2) Source: National Conference of State Legislatures. 86 (3) Source: Center for Climate and Energy Solutions. FACTBOOK Hybrid Models April 2021 Combinations of wind, solar & storage are a strategic growth opportunity Batteries & the combination of wind & solar allow shaping of the production profile, mitigating intermittency & adjusting to demand Competitive Hybrid models generate efficiencies using existing infrastructure Environment Executed PPAs Camino solar 57 MWdc + 44 MWh battery COD: 2022 Other Opportunities Participating in RFPs & engaged in bilateral negotiations for +1 GW of projects including storage Leveraging existing fleet & large pipeline to optimize wind + solar combined projects 500 MWdc solar with COD through 2022 using existing wind project infrastructure 87 FACTBOOK Offshore Wind April 2021 Leading the emerging U.S. Offshore Wind Industry Avangrid Renewables will have the first large-scale offshore wind project in the U.S. through Vineyard Wind(1) AVANGRID is well positioned to be the premier Offshore Wind developer/operator in the U.S. – leveraging renewables experience, partnerships, Iberdrola relationship & existing pipeline Iberdrola ~1.6 GW projects with contracts Installed or Under Construction(2) 2.9 GW ▪ ~800 MW Vineyard Wind project with COD 2024(1) Pipeline ~38 GW ▪ ~804 MW Park City Wind project with COD 2025(1) (1) 50/50 joint venture with Copenhagen Infrastructure Partners (CIP) (2) Includes 100% MW – Vineyard Wind and Park City Wind.. 88 FACTBOOK Global Offshore Wind Experience April 2021 Deep experience on Vineyard Wind team IBERDROLA (IBE) Copenhagen Infrastructure Partners (CIP) Europe Europe Beatrice (3) 588 MWNorth Sea North Sea WoDS 195 MW Baltic Eagle (2) EA 1 486 MW 714 MW(1) Baltic Sea Baltic Sea Veja Mate Irish Sea (3) Wikinger 402 MW St Brieuc 350 MW 496 MW Projects in Operation: 1,259 MW Projects in Operation: 990 MW West of Duddons Sands (195 MW) Veja Mate (402 MW)(3) Wikinger (350 MW) Beatrice (588 MW)(3) East Anglia 1 (714 MW)(1) Work in Progress: 982 MW Saint Brieuc (496 MW), COD 2023 Baltic Eagle (486 MW)(2), COD 2024 (1) IBE owns 60% of East Anglia 1. (2) Including 10 MW corresponding to Wikinger Sud. (3) CIP funds own 23% of Veja Mate and 35% of Beatrice. 89 FACTBOOK AVANGRID Offshore Lease Areas April 2021 Access to 7.5 GW lease areas (5 GW AVANGRID portion) Vineyard Wind(1) OCS-A 0501 166,886 Acres Vineyard Wind(1) OCS-A 0522 132,370 Acres Kitty Hawk(2) OCS-A 0508 122,405 Acres (1) 50/50 joint venture with CIP. (2) 100% owned by AVANGRID. Source: Bureau of Ocean Energy Management (BOEM). 90 FACTBOOK AVANGRID Offshore Wind Projects April 2021 Project Size 800 MW 804 MW Analyzing offtake opportunities State MA CT Can supply VA or NC Lease Area OCS-A 0501 (1) OCS-A 0501 (1) OCS-A 0508 ; ~28 miles from Outer Banks, NC and ~41 miles from Virginia Beach, NC Expected COD YE 2024 (construction starting 2021 & YE 2025 Expect late 2020’s operations starting in 2023) Contract term 20 years 20 years N/A Contract Price Average Price: $88.77 Average Price: $79.83 Highlights N/A Phase 1 (400 MW): Avg. Price $94.52 (Year 1 $62.50, escalating 2.5% annually) ($65/MWh in Year 1, escalating 2.5% annually) Phase 2 (400 MW): Avg. Price $83.02 ($74/MWh in Year 1, escalating 2.5% annually) ITC 30% TBD (2) TBD NCF ~48-52% TBD N/A Capacity ~156 MW (summer)/ ~278 MW (winter) N/A N/A awarded in ISO-NE capacity auction in ‘20 (incl. 54 MW awarded in ‘19) Permitting BOEM published final EIS on Mar. 12 Filed COP with BOEM July 2020; Executed Filed COP with BOEM December 2020 Highlights PPAs approved by CT PURA Other Selected GE as preferred turbine supplier Establishes Bridgeport, CT as offshore wind Geotechnical and geophysical surveys (Halide-X 13 MW) Hub completed (1) AVANGRID’s 50/50 partnership with CIP. (2) Vineyard Wind has agreed to good faith negotiations for a price reduction in case the project benefits from any improvements to the profitability of the project for having access to an ITC >18%. 91 FACTBOOK Vineyard Wind 800 MW Project Timeline April 2021 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 published by BOEM in Jun ’20 Final EIS published by BOEM in Mar ’21 Final Record of Decision & Issuance of Permit Federal permitting agencies (expected July 21, 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) Final Certificate issued Jan ’19 submitted Dec ’18 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 92 FACTBOOK 2025+ Opportunities – Offshore Wind April 2021 Well-positioned for additional growth with access to lease areas & experience Lease Area Approximate Total Capacity Contracted Approximate Remaining (Total / AVANGRID portion) Capacity Capacity (Total / AVANGRID portion) Vineyard Wind(1) OCS-A 0501 2.5 GW / 1.25 GW 1.6 GW 0.9 GW / 0.45 GW Vineyard Wind(1) OCS-A 0522 2.5 GW / 1.25 GW --- 2.5 GW / 1.25 GW Kitty Hawk(2) OCS-A 0508 2.5 GW / 2.5 GW --- 2.5 GW / 2.5 GW 7.5 GW / 5 GW 5.9 GW / 4.2 GW Future Near-Term Offtake Opportunities for Avangrid Renewables Offshore Wind Target State Awards Est. Next Potential RFP(3) (Target Year) Connecticut 2.0 GW (2030) 1.1 GW (0.3 GW Dec ’18; 0.8 GW Dec ’19) 2023 (~1.2 GW) Massachusetts 3.2 GW (2035) 1.6 GW (0.8 GW May ’18; 0.8 GW Oct ’19) 2021 (~1.6 GW) Rhode Island 1.0 GW (N/A) 0.4 GW (May ’18) 2021 (~0.6 GW) New York 9.0 GW (2035) 4.3 GW (1.7 GW Jul ’19; 2.5 GW Jan ’21) 2022 (~1 GW) Virginia 5.2 GW (2035) TBD TBD TOTAL 20.4 GW 7.5 GW (1) AVANGRID’s 50/50 joint venture with Copenhagen Infrastructure Partners. (2) 100% owned by AVANGRID. (3) AVANGRID estimate. 93 FACTBOOK AVANGRID’s Long-Term View on Green Hydrogen April 2021 Decarbonization goals will require the use of new technologies such as green hydrogen Electrolyzers Wind & Green Clean renewable energy Solar used to produce Hydrogen Hydrogen through electrolysis C&I Processes Transportation H2 for commercial & industrial (e.g. H2 for decarbonizing high-temperature processes) transportation, such as heavy- applications can be generated duty transportation, marine through renewables to decarbonize transport, or aviation areas that are difficult to electrify Long Term Hydrogen strategy will leverage Iberdrola’s experience in Europe 94 3. Avangrid Renewables 3.4. Projects & Capex FACTBOOK April 2021 95 (1) FACTBOOK Renewables Projects April 2021 Project ~Total Project MW Type Contract Counterparty ~COD Installed in 2020; COD 2021 La Joya & La Joya II (NM) 306 Wind Public Service of New Mexico 2021 Executed Contracts (~1,300 MW; ~687 MW ’21) Roaring Brook (NY) 80 Wind NYSERDA – RECs 2021 Lund Hill Solar (WA) 194 Solar Puget Sound Energy 2021 Golden Hills (OR) 201 Wind Puget Sound Energy 2021 Montague Solar (OR) 211 Solar Portland General Electric 2021 Mohawk (NY) 125 Solar NYSERDA - RECs 2022 Camino Solar (CA) 57 Solar City of Riverside 2022 Camino Solar (CA) 11 Battery City of Riverside 2022 Great Bear (OH) 64 Solar N/A 2022 Midland (IL) 106 Wind N/A 2022 Bakeoven Solar (OR) 78 Solar Portland General Electric 2022 Bakeoven Solar ll (OR) 187 Solar Portland General Electric 2022 Offshore Wind Vineyard Wind #1 (MA) 400 Offshore Massachusetts EDCs 2024 Park City Wind (MA) 400 Offshore Connecticut EDCs 2025 (1) As of 3/31/21. 96 (1) FACTBOOK Renewables Installed Capacity Forecast April 2021 Installed capacity grows by 74% to 13.2 GW by 2025 with increasing investments in solar & offshore wind Offshore Wind – 1,604 MW VW1 – 800 MW Wind – 282 MW Wind – 106 MW PCW – 804 MW Roaring Brook, 80 MW Midland, 106 MW Golden Hill, 201 MW Solar – 246 MW 13.2 GW(2) – 78% contracted Solar – 483 MW Mohawk, 125 MW Lund Hill, 194 MW Camino, 57 MW Bakeoven, 78 MW Great Bear, 64 MW 1.6 Montague 211 MW 9.2 GW – 94% contracted 2.5 7.6 GW 8.3 GW – 100% contracted + 4 GW 1.2 40% secured 0.1 0.5 + 0.9 GW + 0.7GW 40% secured 100% secured 9.0 7.5 7.7 8.0 2020 2021 2022 2025 Onshore Wind Solar Offshore Wind (1) As of November 5, 2020 Investor Day. (2) AVANGRID owns 50% of Vineyard Wind & Park City Wind projects; expected to be consolidated at COD; Assumes supplier financing to bridge to at least 2023 for modeling purposes. Amounts may not add up due to rounding. 97 FACTBOOK Renewables Capex April 2021 Organic investments of over $8B for 2021-2025; ~$3.1B Offshore wind investments by 2025; ~$1B in onshore wind & solar annually Highlights $6.2B 0.4 Investing >$8B 2021-2025 $1.1B ▪ Continue to diversify renewables portfolio 3.1 with onshore wind, solar & offshore wind $0.9B 0.2 investments 0.2 0.5 1.2 ▪ Capex includes offshore wind; Vineyard 0.4 Wind I COD 2024 & Park City Wind COD 2025 0.4 1.4 0.3 2021 2022 2023-2025 (1) (2) Onshore Wind Solar Offshore Wind Other (1) Capex represents 50% of offshore wind projects; AVANGRID owns 50% of Vineyard Wind & Park City Wind projects, which are expected to be 100% consolidated at COD. (2) Other includes corporate, capitalized labor & interest. 98 Estimates as of November 5, 2020 Investor Day. Amounts may not add up due to rounding. 3. Avangrid Renewables 3.5. Economics FACTBOOK April 2021 99 FACTBOOK Wind Seasonality April 2021 AGR normal period for wind production based on life of assets average(1) Life of Assets annual average ~30.1% 100 (1) Exclude JVs FACTBOOK Wind Production & Capacity April 2021 Wind Production GWh by Region(1) Average Capacity Factor by Region(1)(2) % 1Q ‘21 vs. 1Q ‘20 1Q ‘21 vs. 1Q ‘21 West 27% 1,275 -11% West 28.1% -3.1pp North 14% 676 -31% North 23.9% -10.4pp Central 14% 678 -5% Central 34.1% -1.3pp East 18% 852 1% East 31.9% -2pp South 28% 1,329 7% South 35.8% -0.7pp TOTAL 100% 4,809 -8% TOTAL 30.6% -3.4pp AGR Quarterly Wind NCF(1) (1) Excludes JVs and managed PPAs. 101 (2) Average onshore wind operating capacity 1Q ‘21; 7.5 GW, 1Q ‘20 7.2 GW (1) FACTBOOK Renewables Pricing April 2021 PPA Avg. Price(2) ($/MWh) Merchant & Hedges Avg. Price(1) ($/MWh) Avg. Total Price(2)(3) ($/MWh) $51.0 $62.8 $46.8 $48.0 $41.1 $26.2 1Q ’21 1Q ‘20 1Q ‘21 1Q ‘20 1Q ‘21 1Q ‘20 1Q ‘21 (1) Includes Texas weather event. (2) Excludes JVs and managed PPAs. (3) Includes PPA, merchant & RECs. 102 (1) FACTBOOK Renewables Average Prices by Region April 2021 1Q ‘21 Avg. Total Price(2) PPA Merchant & Hedge West $ 61.2 / MWh $ 65.7 / MWh $ 39.1 / MWh North $ 29.7 / MWh $ 35.4 / MWh $ 11.5 / MWh Central $ 33.0 / MWh $ 36.7 / MWh $ 27.0 / MWh East $ 49.8 / MWh $ 62.2 / MWh $ 33.5 / MWh South $ 107.1 / MWh $ 34.9 / MWh $ 270.8 / MWh (1) Excludes JVs and managed PPAs. (2) Includes PPA, merchant & RECs. 103 (1) FACTBOOK Renewables Average Prices by Region April 2021 Avg. Total PPA Var % vs. 1Q ‘20 Var % vs. 1Q ‘20 Price(2) Price West 4.7% $ 2.8 / MWh West 4.3% $ 2.7 / MWh North -12.8% $ -4.4 / MWh North -1.7% $ -0.6 / MWh Central 16.3% $ 4.6 / MWh Central 9.1% $ 3.1 / MWh East 6.0% $ 2.8 / MWh East 5.7% $ 3.3 / MWh South 243.2% $ 75.9 / MWh South -3.1% $ -1.1 / MWh Merchant & Var % vs. 1Q ‘20 Hedge Price RECs Var % vs. 1Q ‘20 West -2.0% $ -0.8 / MWh West 0.0% $ 0 / MWh North -14.9% $ -2 / MWh North 41.1% $ 0.5 / MWh Central 21.4% $ 4.8 / MWh Central 5.5% $ 0.4 / MWh East 23.1% $ 6.3 / MWh East -1.5% $ -0.1 / MWh South 1061.7% $ 247.5 / MWh South 0.0% $ 0 / MWh (1) Excludes JVs and managed PPAs. 104 (2) Includes PPA, merchant & RECs. FACTBOOK Renewables Tax Incentives Extended April 2021 Recent bipartisan legislation extends key tax credits for onshore wind, offshore wind, & solar Onshore Wind Solar Continuity Start Continuity In-Service Start Construction PTC(1) / ITC(2) ITC(2) Safe Harbor(3) Construction Safe Harbor(3) Deadline(4) 2020 60% ($15/MWh) / 18% 4 Years 2020 26% 4 Years Year-end 2025 2021 60% ($15/MWh) / 18% 4 Years 2021 26% 4 Years Year-end 2025 2022 0% / 0% N/A 2022 26% 4 Years Year-end 2025 2023 22% 4 Years Year-end 2025 Offshore Wind 2024 & After 10% 4 Years N/A Continuity Start Construction PTC(1) / ITC(2) Safe Harbor(3) After 2016 & 100% ($25/MWh) / 30% 10 Years Before 2026 Two ways to start construction: 1. Incurring at least 5% of the total project cost before the deadline 2. Starting “physical work of a significant nature” on the project site or at a factory on equipment for the project (1) Production tax credits on electricity output for 10 years starting in the year the project is placed in service. Production tax credit amounts are adjusted each year for inflation. (2) Investment tax credit is a percentage of the cost of a project and is claimed in the year the project is placed in service. (3) Timeframe in calendar years from start of construction in which the facility must be placed in service to satisfy the continuity requirement. 105 (4) The statutory placed-in-service deadline is separate from the four-year continuous construction safe harbor, with projects slipping past 2025 qualifying for only 10% ITC. FACTBOOK PTC/ITC Evolution April 2021 ✓ ’19-’24 wind projects funded with Tax-Equity; liabilities rolling off $M 2019A 2020A 2021E 2022E 2023E 2024E 2025E Retained PTCs $57 $87 $106 $93 $102 $107 $97 Retained ITCs(1) $91 $88 $88 $90 $89 $132 $126 TEI PTCs $33 $63 $107 $150 $170 $186 $203 TEI ITCs - - - $207 $118 $565 - Total $181 $238 $301 $540 $479 $990 $425 (1) Includes ITC cash grants. Amounts may not add up due to rounding. 106 FACTBOOK APB Consolidating Tax Rate Example April 2021 We calculate an effective tax rate on a consolidated basis & for each of the segments, which includes an expected impact for PTCs for the year; Differences each quarter between expected & actual taxes are balanced in Corporate to achieve the overall consolidated effective tax rate First step is to calculate a APB 28 rate that (in millions) is used during the quarters Renewables Networks Corporate Consolidated Estimated pre-tax: $ 12 $ 500 $ (20) $ 492 ETR: Tax at statutory rate $ (3) $ (130) $ 5 $ (128) PTC credit $ 40 $ 40 Total Tax Benefit (Expense) $ 37 $ (130) $ 5 $ (88) ETR for APB 28 Rate 307% -26% -26% -18% * Need to pay attention to Renewables pre-tax by quarter. Note that in all examples, pre-tax is the same for the year, but the "spread" by quarter is different. An example by quarter assuming an "equal spread" of pre-tax: Q1 Q2 Q3 Q4 Total Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Pre-tax: $ 3 $ 125 $ (5) $ 123 $ 3 $ 125 $ (5) $ 123 $ 3 $ 125 $ (5) $ 123 $ 3 $ 125 $ (5) $ 123 $ 12 $ 500 $ (20) $ 492 Tax Benefit (Expense): $ 9 $ (33) $ 1 $ (22) $ 9 $ (33) $ 1 $ (22) $ 9 $ (33) $ 1 $ (22) $ 9 $ (33) $ 1 $ (22) $ 37 $ (130) $ 5 $ (88) PTC Generation: $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 40 $ 40 APB 28 effect: $ (1) $ (1) $ (1) $ (1) $ (1) $ (1) $ (1) $ (1) $ (3) $ (3) Example: Year 2: Q1 Q2 Q3 Q4 Total Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Pre-tax: $ 4 $ 125 $ (5) $ 124 $ 1 $ 125 $ (5) $ 121 $ (4) $ 125 $ (5) $ 116 $ 11 $ 125 $ (5) $ 131 $ 12 $ 500 $ (20) $ 492 Tax Benefit (Expense): $ 12 $ (33) $ (2) $ (22) $ 3 $ (33) $ 8 $ (22) $ (12) $ (33) $ 24 $ (21) $ 34 $ (33) $ (25) $ (23) $ 37 $ (130) $ 5 $ (88) PTC Generation: $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 40 $ 40 APB 28 effect: $ 2 $ (2) $ 0 $ (7) $ 7 $ (0) $ (22) $ 22 $ (0) $ 24 $ (24) $ 0 $ (3) $ 3 $ 0 Year 1: Q1 Q2 Q3 Q4 Total Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Pre-tax: $ 1 $ 125 $ (5) $ 121 $ 11 $ 125 $ (5) $ 131 $ 4 $ 125 $ (5) $ 124 $ (4) $ 125 $ (5) $ 116 $ 12 $ 500 $ (20) $ 492 Tax Benefit (Expense): $ 3 $ (33) $ 8 $ (22) $ 34 $ (33) $ (25) $ (23) $ 12 $ (33) $ (2) $ (22) $ (12) $ (33) $ 24 $ (21) $ 37 $ (130) $ 5 $ (88) PTC Generation: $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 40 $ 40 APB 28 effect: $ (7) $ 7 $ (0) $ 24 $ (24) $ 0 $ 2 $ (2) $ 0 $ (22) $ 22 $ (0) $ (3) $ 3 $ 0 Variances Year 2 vs. Year 1 Q1 Q2 Q3 Q4 Total Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Renewables Networks Corporate Consolidated Pre-tax: $ 3 $ - $ - $ 3 $ (10) $ - $ - $ (10) $ (8) $ - $ - $ (8) $ 15 $ - $ - $ 15 $ - $ - $ - $ - Tax Benefit (Expense): $ 9 $ - $ (10) $ (1) $ (31) $ - $ 33 $ 2 $ (25) $ - $ 26 $ 1 $ 46 $ - $ (49) $ (3) $ - $ - $ - $ - PTC Generation: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - APB 28 effect: $ 9 $ - $ (9) $ 0 $ (31) $ - $ 31 $ (0) $ (25) $ - $ 24 $ (1) $ 46 $ - $ (46) $ 0 $ - $ - $ - $ 0 107 FACTBOOK Renewables P&L Components April 2021 + Wind & Solar (~90% of Renewable Gross Margin in 2019) ✓ Installed Capacity (MW) * Capacity Factor * Sale Price ✓ Assumptions in Long Term Outlook 2020-2025: • Installed Capacity: ▪ Increases by 5.5 GW up to 13.2 GW at year-end 2025 • Average Net Capacity Factor: ▪ Onshore Wind Existing ~32% ▪ Onshore Wind New ~41% ▪ Solar Existing ~ 17% ▪ Solar New ~21% Gross ▪ Offshore Wind ~51% Margin • Average Sale Price ▪ Wind Existing PPA ~$49/MWh ▪ Wind New PPA ~$28/MWh ▪ Solar Existing PPA ~$102/MWh ▪ Solar New PPA ~$38/MWh ▪ Merchant (excl. RECs) ~$26/MWh • Growth financed with tax equity (5 year recapture) + Thermal & other (~10% of Renewable Gross Margin in 2019) ✓ Include Klamath (used to firm & balance loads for certain PPA contracts in the Northwest), biomass (contractual purchase of energy & resale from biomass facility owned by third party), transmission sales & limited proprietary power trading 108 FACTBOOK Renewables P&L Components April 2021 O&M • 1/3 related to non-wind operational aspects (growth, thermal, corporate costs …) Expenses Depreciation • ~37 year average for windfarms on a straight line basis, net of ITC amortization Other Taxes • Property, Franchise, and Payroll Taxes Expense Other Income • Consists of: Finance income (primarily capitalized interest) combined with gains on non-current assets, & Deduction offset by other deductions (non-service pension costs & charitable giving) Interest • Financial expenses on intercompany debt and any other borrowings; Expense excludes TEI financing costs, included within Minority interest under HLBV accounting • 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 & after NOLs are monetized Income Tax ✓ 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 • AVANGRID expected to become a cash tax payer in 2024 Minority • Minority Interest driven by HLBV accounting for tax equity structures; the HLBV method allocates earnings to the Interest noncontrolling interest, which considers the cash & tax benefits provided to the tax equity investors 109 FACTBOOK Accounting Criteria April 2021 • 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 PTC 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. 110 FACTBOOK Accounting Criteria April 2021 • P&L ✓ GAAP (10Q,10K): Booked on D&A (they lower D&A), below EBITDA ITC ✓ 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 & the results of their operations (including depreciation) are reported in the consolidated statement of operations. Investors Tax share is reported as Minority Interest Equity • Recorded as a financing obligation & amortized with the allocation to the tax equity investor of its share of cash distributions, MACRS, PTCs, & the tax impact of taxable income 111