Eversource Energy, the largest utility in New England, held its Q3 2024 earnings call, highlighting the company's progress and strategic initiatives. The call, led by Joe Nolan, Chairman, President, and CEO, and John Moreira, Executive Vice President, CFO, and Treasurer, provided insights into Eversource's financial health and future prospects.
Financial Performance
Eversource reported a loss of $0.33 per share in the third quarter, which included an after-tax loss of $1.46 per share related to the offshore wind divestiture. Recurring earnings for the quarter were $1.30 per share, a significant improvement from the previous year. The company's electric transmission and distribution segments showed strong performance, with electric transmission earning $0.49 per share and electric distribution earning $0.57 per share.
Clean Energy Initiatives
Eversource is at the forefront of the clean energy transition, with a focus on reducing carbon emissions and enhancing grid reliability. The company has secured approximately $90 million in federal funding for a clean energy hub in Southeastern Connecticut, which will support New England's clean energy transition while improving grid reliability. Eversource also received $20 million from the U.S. Department of Energy to expand its battery energy storage project for Cape Cod, Massachusetts. These initiatives underscore Eversource's commitment to enabling a clean energy future for its customers.
Balance Sheet and Regulatory Updates
Eversource is working to strengthen its balance sheet and improve its credit position. The company has made significant progress towards improving its FFO to debt ratio, with a focus on timely cost recovery, proceeds from offshore wind sales, and equity issuances. Regulatory updates, including the approval of the Massachusetts electric sector modernization plan, will enable the company to increase investment in clean energy and grid infrastructure.
Strategic Investments
Eversource is planning for a $1.5 billion to $1.6 billion investment in the Cambridge underground substation, a first-of-its-kind project that will address the growing electricity needs of greater Cambridge and the region. The company is also working on a rate case for Yankee Gas in Connecticut, which will allow for the recovery of capital investments and continued investment in the future.
Future Outlook
Eversource is confident in its ability to achieve a 5% to 7% EPS long-term growth rate through 2028. The company's focus on clean energy, grid modernization, and balance sheet improvements positions it well for future success. Eversource's leadership in the New England region, as well as its strategic partnerships with key stakeholders, will enable the company to meet its state's mandated clean energy goals and continue providing safe, reliable service to its customers.
In conclusion, Eversource Energy's Q3 2024 earnings call highlighted the company's strong financial performance and strategic initiatives aimed at enhancing its position in the clean energy market and improving its balance sheet. With a focus on clean energy transition and grid reliability, Eversource is well-positioned to meet the energy needs of its customers while driving sustainable growth.