Jul 31, 2026 earnings call — Aquarion sale and regulatory updates
Eversource closed Aquarion sale, generating net cash benefit of $1.7 billion, and reported recurring EPS of $0.87.
Revenue $2.9B (est $3.0B) · EPS $0.87 (est $0.87)
Key quotes
"We are pleased that we have closed on the sale of Aquarion on June 30 generating a net cash benefit to Eversource of $1.7 billion These proceeds will be used to displace debt at the parent company."
"Which included cost increases stemming from 2 stop work orders we recognized an after tax charge of $164 million."
"Of the $870 million approved, approximately $200 million have already been recovered in rates. This results in approximately $670 million that is expected to be securitized."
Analyst Q&A 5
storm costs and securitization split
Q (Shahriar Pourreza · Wells Fargo): He asked how the storm carrying costs compared to the financing plan, what offsets and next steps are, and how the $1.8 billion breaks down between Connecticut and New Hampshire.
A: Management said they are pleased to have a decision and a number to move forward with securitization, which will get nearly $700 million in the door a year from now. They said they have not recognized any retroactive carrying charges and did not assume those carrying charges in their financing plan; they will continue to review the decision and assess next steps and options.
"As it relates to the carrying charge specifically, I do want to mention we only include things in our forecast that we have a high degree of conviction." — John Moreira (CFO)
transmission milestones and Revolution Wind risks
Q (Carly Davenport · Goldman Sachs): She asked what milestones to watch to derisk the New England transmission opportunity and whether Q3/Q4 calls would be decisive, and she asked about drivers and any risk of cost slipping for the incremental Revolution Wind charge.
A: They said to watch stakeholder comments on August 14, ISO New England review in August and September, and they currently anticipate a final recommendation in September so the third quarter call should give more insight and allow rolling the project into the plan. John said roughly 50% of that CapEx will occur during the forecast period. On Revolution Wind they said the project is nearly complete, delivering over 300 MW now and heading toward 704, has an in-service date of 2026, and they do not see other risks that worry them.
"We currently anticipate a publication of a final recommendation in September." — Joseph R. Nolan Jr. (CEO·CHAIR)
rate base guidance and AMI timeline
Q (Sophie Karp · KeyBanc): She asked whether they would consider giving more precise long-term rate-base growth targets and about the AMI rollout timeline and how AMI will flow into rate base.
A: They said they already provide enough information, including annual CapEx and an expected rate base by 2030 based on that CapEx, and noted historical rate base growth has been slightly over an 8% CAGR. For AMI they said Massachusetts is nearing the end of a 5-year rollout, they have included a Connecticut proposal in the rate case and requested an expedited decision hoping for approval this fall; if approved they would mobilize next year and the full rollout would take about 5 years, meaning some of the roughly $1 billion will fall beyond the forecast period.
"we do give what is expected for a rate base by 2030 based on our CapEx." — John Moreira (CFO)
FERC refund and credit cushion policy
Q (Anthony Christopher Crowdell · Mizuho): He asked whether a recent MISO decision affects their legal appeal on the FERC refund and whether they have a target credit cushion and how they would fund a potential refund.
A: They said the MISO decision has no impact because the facts and legal circumstances here are different, they have sought a stay and are awaiting a court ruling, and they have not commenced any refunds. They said their priority is to remain 100 basis points above downgrade thresholds, and if they had to refund the incremental $880 million they would do so in a balanced manner.
"we want to be 100 basis points above the downgrade thresholds and we have been very successful as you can see on that slide." — John Moreira (CFO)
breakdown of $1.8 billion storm proceeds
Q (Aidan Kelly · JPMorgan): He asked for a clear breakdown of the assumptions that make up the $1.8 billion storm proceeds beyond the $700 million from Connecticut.
A: They said the $1.8 billion is composed of the $700 million they will securitize from the Connecticut storm decision, about $450 million of New Hampshire storm costs waiting for the final tranche, and the remainder is the carrying charges related to the Connecticut storms. They said they expect to pursue recovery of the carrying charges and have included that within their 5-year period.
"the difference between those 2 items the $1.8 billion would be the carrying charges as it pertains to the Connecticut storms" — John Moreira (CFO)