Eversource Announces Sale of Power Plants

Sale will complete electric deregulation in New Hampshire

MANCHESTER, N.H.–(BUSINESS WIRE)–As a result of the proposed sale of the company’s power plants,
Eversource New Hampshire customers will realize the benefits of a
comprehensive restructuring and rate stabilization agreement entered
into in 2015. In a filing today with the New Hampshire Public Utilities
Commission (NHPUC), Eversource outlined the details of the agreements to
sell the plants to two buyers. Following NHPUC and other necessary
approvals, closings on the transactions are expected by late December or
early 2018. This change in power plant ownership will mark the
completion of electric deregulation in New Hampshire and a shift in how
the company procures energy for customers in the future.

“Our generation plants have proven valuable to New Hampshire customers
for many years, especially during times of extreme cold or heat when
additional sources of power have been needed to help meet demand. Now,
we will join other utilities across New England in obtaining energy for
our customers from the competitive regional wholesale energy market,”
noted Eversource NH President Bill Quinlan. “Importantly, the announced
transactions honor commitments made to employees and municipalities
where facilities are located to ensure a smooth transition.”

The NHPUC in 2016 established the power plant auction process, which is
being managed by J.P. Morgan. Under the proposed sales, which must be
reviewed and approved by the NHPUC, Eversource’s three large fossil
generation facilities and two remote combustion turbines will be
purchased by Granite Shore Power LLC, a newly-formed 50-50 partnership
between Atlas Holdings of Greenwich, CT and Castleton Commodities
International (CCI) of Stamford, CT for a price of $175 million. The
company’s nine hydroelectric facilities will be acquired by Hull Street
Energy, LLC and affiliates (“Hull Street Energy”), an electric
industry-focused private equity firm based in Bethesda, MD, for $83
million.

As part of the proposed purchase agreements, the new owners must keep
the plants in service for at least 18 months, and must honor a
comprehensive employee benefits package established by Eversource and
the International Brotherhood of Electrical Workers (IBEW). Moreover,
Eversource will provide three years of tax stabilization payments to
communities to the extent a power plant is sold for less than its
assessed value.

Consistent with the 2015 settlement agreement, customers will also
benefit from Eversource’s agreement to forego recovery of $25 million
related to the Merrimack Station emission reduction ‘scrubber,’ and from
the financing of stranded costs remaining after the sales through the
use of securitization bonds. These bonds take advantage of low interest
rates. In addition, Eversource has agreed to provide $5 million from its
shareholders to establish a Clean Energy Fund. Details regarding the
Clean Energy Fund will be established via a collaborative process
overseen by NHPUC Staff and the Office of Energy and Planning.

The decision to sell Eversource’s plants implements New Hampshire state
public policy objectives and was part of a comprehensive 2015 agreement
among Eversource and other parties, including State Senators Jeb Bradley
and Dan Feltes; the NH Office of Energy and Planning; the NH Office of
Consumer Advocate; and designated staff members of the NHPUC. Other
signatories to the agreement included: IBEW, Local 1837; the
Conservation Law Foundation; TransCanada Hydro Northeast Inc. and
TransCanada Power Marketing, Ltd.; and the New Hampshire Sustainable
Energy Association.

Fossil Assets – 1,130.1 MW total nameplate
capacity:

• Merrimack Station, Bow; Coal/oil; 502.0 total megawatts (MW)
• Newington Station, Newington; Oil and/or natural gas; 416.0 MW
• Schiller Station, Portsmouth; Coal/oil/biomass; 171.7 total MW
• Lost Nation, Groveton; Oil; 18.0 MW
• White Lake, Tamworth; Jet fuel; 22.4 MW

Hydro Assets – 68.2 MW total nameplate capacity:

• Amoskeag Hydro, Manchester; 16.0 MW
• Ayers Island, Bristol; 8.4 MW
• Canaan Hydro, West Stewartstown; 1.1 MW
• Eastman Falls, Franklin; 6.4 MW
• Garvins Falls, Bow; 12.1 MW
• Gorham Hydro, Gorham; 2.2 MW
• Hooksett Hydro, Hooksett; 1.6 MW
• Jackman Hydro, Hillsborough; 3.2 MW
• Smith Hydro, Berlin; 17.2 MW

Eversource (NYSE: ES) is New Hampshire's largest electric utility,
serving more than 500,000 homes and businesses in 211 cities and towns
and is proud to be recognized as the top contributor to United Way in
New Hampshire. Recognized as the top U.S. utility for its energy
efficiency programs by the sustainability advocacy organization Ceres,
Eversource harnesses the commitment of its approximately 8,000 employees
across three states to build a single, united company around the mission
of safely delivering reliable energy and superior customer service. For
more information, please visit our website (www.eversource.com)
and follow us on Twitter (@eversourceNH)
and Facebook (facebook.com/EversourceNH).

Hull
Street Energy (Bethesda, MD)
Hull Street Energy is a
private equity firm that acquires, optimizes and grows middle market
power businesses through the application of industry-leading risk
management, efficiency enhancements and commodity contract structuring.
Hull Street Energy was established by a team with extensive,
long-standing expertise in the power industry. They bring to the
firm's investments a unique combination of deep technical and commercial
knowledge of the electricity industry, and top-tier financial investment
expertise. Headquartered in Bethesda, Maryland, the team leverages its
decades of experience and unique knowledge of North American electricity
infrastructure, including fuel inputs, renewable and fossil powered
generation assets, transmission and distribution systems, and
electricity demand-side businesses to build value for our investors and
stakeholders. For more information please visit our website (www.hullstreetenergy.com)

Contact: Ted Smith/Shree Dhond
212-704-7385
[email protected]

Atlas
Holdings LLC (Greenwich, CT)
Headquartered in Greenwich,
Connecticut, Atlas and its affiliates own eighteen platform businesses.
These companies collectively employ approximately 21,000 associates
and operate from more than 220 facilities across the globe. Atlas
companies are engaged in a variety of industries, including power
generation, aluminum processing, automotive components, building
materials and construction, industrial services, paper and packaging and
supply chain management. It has successfully executed complex
carve-outs of business units from companies such as Alcoa, Covanta
Energy, International Paper, Johnson Controls, MeadWestvaco, Neenah
Paper, NCR Corporation, ThyssenKrupp, Weyerhaeuser, and Wheelabrator
Group. In each transaction, Atlas successfully navigated
separation complexities and created high-performance, standalone
companies. Atlas owns co-generation units at several of its
industrial operations, as well as Greenidge Generation, a 106MW power
generation facility that Atlas converted from coal to natural gas and
biomass in 2016.

Contact: David Filippelli
973-214-4010
[email protected]

CCI
– Castleton Commodities International LLC (Stamford, CT)
CCI
is a global commodity merchant with an integrated set of operations
consisting of the marketing and merchandising of commodities and the
ownership, operations, and development of commodities-related upstream
and infrastructure assets. It owns 20 power generation assets
comprising approximately 2,000 MWs across the US and Europe. CCI
markets a broad range of physical commodities including electric power,
natural gas, natural gas liquids, refined products, crude oil, fuel oil,
freight, base metals, petrochemicals, coal and financial instruments
related to commodities. CCI is headquartered in Stamford,
Connecticut with offices in Calgary, Canada; Geneva, Switzerland;
Houston, Texas; London, United Kingdom; Shanghai, China; Singapore; and
Montevideo, Uruguay.

Contact: Brian R. Brooks
713-752-1901
[email protected]

Contacts

Eversource Contacts:
Martin Murray, 603-634-2228
[email protected]
or
Kaitlyn
Woods, 603-634-2418
[email protected]
or
J.P.
Morgan Contacts:
Pete Kelly, +1 212-622-1094
Executive
Director
[email protected]
or
Neil
Davids, +1 212-622-6835
Executive Director
[email protected]