Eversource Energy's Q4 2024: Key Contradictions on Aquarion Sale, Offshore Wind Costs, and Regulatory Challenges

These are the key contradictions discussed in Eversource Energy's latest 2024Q4 earnings call, specifically including: Aquarion sale expectations and strategic implications, offshore wind cost sharing arrangements, Connecticut regulatory environment, and investment plans:



Financial Performance and Earnings Growth:
- Eversource Energy reported earnings per share of $2.27 for 2024, compared with a loss of $1.26 per share in 2023.
- The increase was driven by steady financial results, including a 5.3% year-over-year increase in earnings per share, exceeding the midpoint of their revised guidance.

Capital Investment and Infrastructure Improvements:
- The company plans to increase its investment over the next five years by nearly 10%, with a significant portion aimed at transmission investments.
- This increase is to address aging infrastructure needs and respond to new load demand, supported by regulatory approvals and investments in Massachusetts's electric sector modernization plan.

Balance Sheet Strengthening and Strategic Asset Sales:
- Eversource announced the sale of Aquarion Water at an attractive multiple of 1.7x rate base, facilitating debt reduction.
- The transaction represents a milestone in the company's growth journey, allowing for reinvestment in regulated utilities to enhance reliability and financial position.

Regulatory Approvals and Rate Adjustments:
- Massachusetts approved various rate adjustments, including a $77 million revenue increase for Eversource's electric gas and water business and a $12.7 million increase for NSTAR Gas.
- These adjustments are part of constructive rate outcomes that support ongoing infrastructure investments and financial stability.