Eversource Energy's Q2 2025: Key Contradictions on Securitization, Ratings, and Regulatory Timelines

Securitization impact on equity needs, Moody's and S&P ratings and FFO to debt ratio improvements, Connecticut regulatory timeline and Aquarion transaction closing, capital redeployment and equity needs are the key contradictions discussed in Eversource Energy's latest 2025Q2 earnings call.



Regulatory and Financial Improvements:
- Eversource improved its FFO to debt ratio to 11.5%, over 200 basis points above the previous year, driven by constructive regulatory outcomes and cash flow enhancements.
- The improvement is attributed to strategic regulatory outcomes and cash flow management, including exiting offshore wind and water businesses.

Infrastructure Investments and Power Demand:
- Electric demand growth has been significant, with a nearly 2% increase during the first half of 2025, double the rate observed in the same period last year.
- This growth is driven by the accelerating electrification of transportation and heating sectors due to decarbonization efforts.

Capital Investment and Infrastructure Enhancements:
- Eversource plans a 10% increase in its 5-year infrastructure investment plan, with $2.2 billion executed by June 2025.
- The increase is due to the need to upgrade and expand infrastructure to meet rising demand and to support electrification efforts.

Connecticut Regulatory Developments:
- Eversource received positive regulatory decisions in Connecticut, including the allowance for securitization of storm costs and bond funding for public benefit programs.
- These developments provide financial relief, enhance customer bill predictability, and support continued investment in Connecticut's infrastructure.