Connecticut's Storm Costs and Financial Strategies: Contradictions Unveiled in Q1 2025 Earnings Call

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Strong Financial Performance:
- Eversource Energy reported GAAP earnings of $1.50 per share for Q1 2025, compared to $1.49 per share in the previous year.
- The increase in earnings was driven by higher utility earnings from transmission and distribution investments, as well as higher revenues from natural gas infrastructure improvements.

Investment in Transmission and Distribution:
- The company saw strong growth in its transmission and distribution businesses, with investments heavily focused on Massachusetts to meet electrification goals.
- These investments are strategically aligned with the state's energy modernization plan and are expected to enhance reliability and support decarbonization efforts.

Aquarion Water Divestiture:
- Eversource plans to divest its Aquarion Water segment, with the transaction expected to close in 2025.
- The divestiture is aimed at strengthening Eversource's balance sheet and improving its FFO to debt ratio, supporting its financial stability and growth strategy.

Regulatory Focus and Recovery:
- Eversource is actively working to recover previously under-recovered regulatory costs, which are expected to contribute to a significant improvement in cash flows and FFO to debt ratio.
- Continued recovery efforts and constructive regulatory environments are key to ensuring Eversource's financial sustainability and delivering value to shareholders.