Eversource Energy (ES) reported fourth-quarter 2023 adjusted earnings of 95 cents per share, which missed the Zacks Consensus Estimate of 97 cents by 2.1%. However, the bottom line increased 24% from the year-ago quarter’s figure of 92 cents.ES reported earnings of $4.34 for 2023 compared with $4.09 per share in 2022, which reflects a year-over-year increase of 6.1%.Total RevenuesES’ fourth-quarter revenues of $2.69 billion missed the Zacks Consensus Estimate of $3.15 billion by 16.3%. Total revenues also d ...

HARTFORD, Conn. & BOSTON--(BUSINESS WIRE)--Eversource Energy (NYSE: ES) today reported a full-year 2023 loss of $(442.2) million, or $(1.26) per share, compared with full-year 2022 earnings of $1,404.9 million, or $4.05 per share. Eversource also reported a fourth quarter 2023 loss of $(1,288.5) million, or $(3.68) per share, compared with fourth quarter 2022 earnings of $320.2 million, or $0.92 per share. Results for the full year and the fourth quarter of 2023 include after-tax impairment charges of $1 ...

Part I [Business](index=8&type=section&id=Item%201.%20Business) Eversource Energy is a regulated public utility operating four segments and divesting offshore wind assets, serving 4.4 million customers across three states - Eversource Energy is a public utility holding company engaged in the energy delivery business through its wholly-owned subsidiaries[31](index=31&type=chunk) - The company operates through four reportable segments: electric distribution, electric transmission, natural gas distribution, and water distribution[32](index=32&type=chunk) - Eversource is in the process of selling its **50% ownership interests** in three offshore wind projects: Revolution Wind, South Fork Wind, and Sunrise Wind[33](index=33&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Electric Distribution Segment](index=8&type=section&id=ELECTRIC%20DISTRIBUTION%20SEGMENT) The Electric Distribution segment delivers electricity to retail customers in Connecticut, Massachusetts, and New Hampshire under state-specific rate regulations - The electric distribution segment consists of the distribution businesses of CL&P, NSTAR Electric, and PSNH, serving retail customers in Connecticut, Massachusetts, and New Hampshire, respectively[34](index=34&type=chunk) Electric Distribution Customer Counts (as of Dec 31, 2023) | Utility | State | Customer Count | | :--- | :--- | :--- | | CL&P | Connecticut | ~1.28 million | | NSTAR Electric | Massachusetts | ~1.49 million | | PSNH | New Hampshire | ~539,000 | - NSTAR Electric owns and operates **70 MW of solar power facilities** across twenty-two sites in Massachusetts, with the energy sold into the ISO-NE market and proceeds credited to customers[47](index=47&type=chunk) [Electric Transmission Segment](index=15&type=section&id=ELECTRIC%20TRANSMISSION%20SEGMENT) This segment's revenues are recovered through FERC-approved formula rates, with an estimated rate base of approximately $9.8 billion at year-end 2023 - The electric transmission segment's revenues are recovered through FERC-approved formula rates, which include a return on equity and provide for an annual true-up of estimated to actual costs[65](index=65&type=chunk) Estimated Transmission Rate Base (as of Dec 31, 2023) | Company | Rate Base (approx.) | | :--- | :--- | | CL&P | $4.1 billion | | NSTAR Electric | $3.9 billion | | PSNH | $1.8 billion | | **Total** | **$9.8 billion** | - The company faces four separate complaints at FERC challenging the New England Transmission Owners' (NETOs) base Return on Equity (ROE), creating significant uncertainty regarding the outcome and potential financial impact[67](index=67&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [Natural Gas Distribution Segment](index=16&type=section&id=NATURAL%20GAS%20DISTRIBUTION%20SEGMENT) The Natural Gas Distribution segment serves approximately 895,000 customers in Massachusetts and Connecticut, focusing on infrastructure replacement and navigating climate goals Natural Gas Customer Counts (as of Dec 31, 2023) | Utility | State | Customer Count | | :--- | :--- | :--- | | NSTAR Gas | Massachusetts | ~307,000 | | EGMA | Massachusetts | ~336,000 | | Yankee Gas | Connecticut | ~252,000 | - Both Massachusetts and Connecticut have accelerated pipeline replacement programs (GSEP and GSI, respectively) that allow for annual cost recovery through reconciling tariff factors[82](index=82&type=chunk)[84](index=84&type=chunk) - In Massachusetts, the DPU's "Future of Gas" proceeding (DPU 20-80) is examining the role of natural gas LDCs in meeting the state's 2050 climate goals, which may require significant changes to the business model, though the company does not currently see a risk of asset impairment[83](index=83&type=chunk) [Water Distribution Segment](index=18&type=section&id=WATER%20DISTRIBUTION%20SEGMENT) The Water Distribution segment serves approximately 241,000 customers across Connecticut, Massachusetts, and New Hampshire, primarily in Connecticut, with rates regulated by state authorities - The water segment serves approximately **241,000 customers** across Connecticut, Massachusetts, and New Hampshire, with the vast majority (**92%**) in Connecticut[89](index=89&type=chunk) - Water supply is sourced from owned reservoirs and wells, with a total yield of approximately **135 million gallons per day**[92](index=92&type=chunk) [Offshore Wind Business](index=19&type=section&id=OFFSHORE%20WIND%20BUSINESS) Eversource is actively divesting its 50% ownership interests in three offshore wind projects and has recorded significant impairment charges to reflect their estimated fair value - Eversource is in the process of selling its **50% interests** in three jointly-owned offshore wind projects and has recorded impairments to reflect the investments at estimated fair value[95](index=95&type=chunk) [Other Regulatory and Environmental Matters](index=21&type=section&id=OTHER%20REGULATORY%20AND%20ENVIRONMENTAL%20MATTERS) Eversource is subject to extensive environmental regulations, including increasing Renewable Portfolio Standards, and has committed to carbon neutrality for its operations by 2030 2023 Renewable Portfolio Standards (RPS) Obligations | State | 2023 Total RPS Obligation | | :--- | :--- | | Connecticut | 35.0% | | Massachusetts | 59.2% (RPS & CES) | | New Hampshire | 23.4% | - As of December 31, 2023, the company recorded a liability of **$128.2 million** for environmental remediation costs, with **$117.1 million** related to former Manufactured Gas Plant (MGP) sites[109](index=109&type=chunk)[110](index=110&type=chunk) - Eversource has committed to achieving **carbon neutrality** for its Scope 1 and 2 GHG emissions by **2030** and is working to reduce emissions from line loss, methane leaks, its vehicle fleet, and SF6 leaks[118](index=118&type=chunk) [Human Capital](index=23&type=section&id=HUMAN%20CAPITAL) As of December 31, 2023, Eversource employed 10,171 people, with 49% unionized, prioritizing safety and Diversity, Equity & Inclusion (DEI) initiatives - As of December 31, 2023, Eversource employed **10,171 people**, with about **49%** represented by unions[123](index=123&type=chunk) - The company's 2023 safety performance, measured by the DART-OSHA method, was **0.81 days** away, restricted, or transferred per 100 workers[124](index=124&type=chunk) - In 2023, **55.9%** of external hires and **48.1%** of new hires and promotions into leadership roles were women and/or people of color, reflecting the company's focus on DEI[126](index=126&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) Eversource faces significant risks from cybersecurity, offshore wind divestiture, regulatory actions, climate change, operational failures, and financial market challenges - Cyberattacks are increasing in sophistication and frequency, posing a risk of operational impairment, disclosure of confidential information, and reputational damage[137](index=137&type=chunk) - There are significant risks related to the sale of the offshore wind projects, including the inability to complete the sales on expected timelines and terms, potential for lower-than-expected sales value, and risks of project cost overruns or abandonment[142](index=142&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) - The company is subject to regulatory and legislative risks, where adverse decisions on rates, cost recovery (including for storm restoration), and allowed ROE could negatively impact earnings and liquidity[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - Climate change presents physical risks from severe weather damaging facilities and transitional risks from costs associated with new technologies and evolving customer expectations[159](index=159&type=chunk)[161](index=161&type=chunk) [Unresolved Staff Comments](index=32&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it does not have any unresolved comments from the SEC staff - Eversource has no unresolved SEC staff comments[177](index=177&type=chunk) [Cybersecurity](index=32&type=section&id=Item%201C.%20Cybersecurity) Eversource maintains a comprehensive cybersecurity program overseen by the Board's Finance Committee, with no material incidents reported as of year-end 2023 - The Board of Trustees' Finance Committee is responsible for oversight of enterprise-wide risks, including cyber and physical security[178](index=178&type=chunk) - The company's cybersecurity program is modeled after the National Institute of Standards and Technology (NIST) framework and includes processes like external assessments, information sharing, incident response planning, and employee training[183](index=183&type=chunk) - As of December 31, 2023, there were no risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect the Company[185](index=185&type=chunk) [Properties](index=33&type=section&id=Item%202.%20Properties) As of December 31, 2023, Eversource's properties include extensive electric, natural gas, and water infrastructure, with valid and generally exclusive franchises Eversource Electric System Overview (as of Dec 31, 2023) | Category | Distribution | Transmission | | :--- | :--- | :--- | | Substations | 455 | 76 | | Transformer Capacity (kVa) | 47,706,000 | 16,222,000 | | Overhead Lines (miles) | 40,673 | 3,992 | | Underground Lines (miles) | 18,119 | 423 | - The natural gas system includes approximately **3,330 miles** of main pipeline for NSTAR Gas, **5,033 miles** for EGMA, and **3,540 miles** for Yankee Gas[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - The Aquarion water system owns and operates sources with a combined yield of approximately **135 million gallons per day** and includes **3,802 miles** of transmission and distribution mains[193](index=193&type=chunk) [Legal Proceedings](index=36&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal, tax, and regulatory proceedings, with detailed information available in Note 13 of the financial statements - For information regarding material lawsuits and proceedings, refer to Note 13, "Commitments and Contingencies," of the Combined Notes to Financial Statements[210](index=210&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[212](index=212&type=chunk) Part II [Market for the Registrants' Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=38&type=section&id=Item%205.%20Market%20for%20the%20Registrants%27%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Eversource Energy's common shares trade on the NYSE under "ES," with its stock underperforming key indices over the past five years - Eversource's common shares are listed on the NYSE under the ticker "**ES**" The common stock of its subsidiaries CL&P, NSTAR Electric, and PSNH is not publicly traded and is held solely by Eversource[221](index=221&type=chunk) Five-Year Cumulative Total Returns (2018-2023) | | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Eversource Energy | $100 | $134 | $140 | $152 | $144 | $111 | | EEI Index | $100 | $126 | $124 | $146 | $147 | $134 | | S&P 500 | $100 | $131 | $156 | $200 | $164 | $207 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Eversource reported a 2023 GAAP loss from offshore wind impairments, with non-GAAP EPS growth and strategic asset divestitures Eversource Earnings Per Share (EPS) Summary | Year | GAAP EPS | Non-GAAP EPS | | :--- | :--- | :--- | | 2023 | $(1.26) | $4.34 | | 2022 | $4.05 | $4.09 | - The 2023 GAAP loss was driven by after-tax impairment charges of **$1.95 billion** (**$5.58 per share**) related to the company's offshore wind investments[237](index=237&type=chunk) - The company projects a **2024 non-GAAP EPS range of $4.50 to $4.67** and a long-term EPS growth rate of **5% to 7%** through 2028 from its regulated utility businesses[237](index=237&type=chunk) - Strategic developments include executing an agreement to sell its interests in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP) for approximately **$1.1 billion**, and an agreement to sell its share of Sunrise Wind to Ørsted, contingent on a successful re-bid in New York's solicitation[240](index=240&type=chunk) [Liquidity](index=44&type=section&id=Liquidity) Eversource's 2023 operating cash flow decreased to $1.65 billion, with $4.34 billion invested in PP&E, funded by $5.20 billion in new long-term debt Key Liquidity Metrics (2023 vs 2022) | Metric (Billions) | 2023 | 2022 | | :--- | :--- | :--- | | Cash Flow from Operations | $1.65 | $2.40 | | Investments in PP&E | $4.34 | $3.44 | | New Long-Term Debt Issued | $5.20 | - | | Long-Term Debt Repaid | $2.01 | - | - The decrease in operating cash flow was primarily due to an increase in regulatory under-recoveries, particularly related to the CL&P non-bypassable FMCC mechanism[263](index=263&type=chunk) - On January 31, 2024, the Board of Trustees approved a common share dividend of **$0.715 per share**, an increase from the **$0.675 per share** paid in 2023[239](index=239&type=chunk)[265](index=265&type=chunk) [Business Development and Capital Expenditures](index=48&type=section&id=Business%20Development%20and%20Capital%20Expenditures) Eversource's capital expenditures increased to $4.59 billion in 2023, with $23.12 billion projected through 2028, driven by offshore wind divestiture and related impairment charges Projected Capital Expenditures (2024-2028) | Segment | Projected Capex (Billions) | | :--- | :--- | | Electric Transmission | $5.77 | | Electric Distribution | $9.71 | | Natural Gas Distribution | $5.44 | | Water Distribution | $1.08 | | IT and Other | $1.12 | | **Total** | **$23.12** | - In 2023, Eversource recorded total pre-tax impairment charges of **$2.17 billion** (**$1.95 billion after-tax**) on its offshore wind investments due to lower expected sales prices and increased construction cost projections[289](index=289&type=chunk) - The company completed the sale of its **50% interest** in an uncommitted offshore wind lease area to Ørsted for **$625 million** in an all-cash transaction on September 7, 2023[282](index=282&type=chunk) [Regulatory Developments and Rate Matters](index=55&type=section&id=Regulatory%20Developments%20and%20Rate%20Matters) Eversource's subsidiaries operate under state-specific rate structures, with ongoing regulatory evaluations and recent terminations of offshore wind power purchase agreements - In Connecticut, PURA is evaluating the implementation of Performance Based Regulation (PBR) for electric distribution companies, which could introduce new revenue adjustment mechanisms and performance metrics for CL&P in its next rate case[326](index=326&type=chunk)[327](index=327&type=chunk) - In Massachusetts, NSTAR Electric's DPU-approved rate case resulted in a **$64 million** base distribution rate increase effective January 1, 2023, and renewed a five-year PBR plan[332](index=332&type=chunk) - In 2023, PPAs for the Park City Wind (CT), SouthCoast Wind (MA), and Commonwealth Wind (MA) projects were terminated at the request of the developers, with termination payments made to CL&P and NSTAR Electric to be returned to customers[330](index=330&type=chunk)[335](index=335&type=chunk)[336](index=336&type=chunk) [Critical Accounting Policies](index=59&type=section&id=Critical%20Accounting%20Policies) Eversource's financial statements rely on critical accounting policies including Regulatory Accounting, Pension and Postretirement Benefits, Goodwill, and Equity Method Investments, requiring significant management judgment - Regulatory Accounting allows the deferral of incurred costs as regulatory assets (**$6.39 billion** at YE 2023) and the recognition of regulatory liabilities, based on the probability of future rate recovery or refund, which requires significant judgment[348](index=348&type=chunk)[605](index=605&type=chunk) - Accounting for Pension, SERP, and PBOP plans is highly dependent on assumptions for discount rates, expected long-term rate of return on assets (**8.25% for 2024**), and mortality, which can materially impact financial results[353](index=353&type=chunk)[354](index=354&type=chunk) - Equity Method Investments are assessed for other-than-temporary impairment, which was a critical estimate in 2023, leading to significant write-downs of the offshore wind investments based on judgments about future cash flows from their expected sale[374](index=374&type=chunk)[375](index=375&type=chunk) - Goodwill, totaling **$4.53 billion** at YE 2023, is tested for impairment annually at the reporting unit level The 2023 assessment concluded that goodwill was not impaired[367](index=367&type=chunk)[371](index=371&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=73&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Eversource manages market risks, including commodity price, interest rate, and credit risks, through regulated cost recovery, fixed-rate debt, and credit practices - Commodity price risk is mitigated because the economic impacts of energy contracts are passed on to customers through regulated rates[439](index=439&type=chunk) - Interest rate risk is significantly reduced as all of the company's long-term debt was at a fixed interest rate as of December 31, 2023[441](index=441&type=chunk) - Credit risk from counterparties is managed through established practices, including holding collateral, which amounted to **$32.0 million** as of December 31, 2023[443](index=443&type=chunk) [Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Eversource Energy's audited consolidated financial statements for 2023, including balance sheets, income statements, cash flows, and detailed accompanying notes [Consolidated Financial Statements](index=81&type=section&id=Consolidated%20Financial%20Statements) For 2023, Eversource reported a net loss of $442.2 million, or ($1.26) per diluted share, primarily due to a $2.17 billion pre-tax offshore wind impairment charge Eversource Consolidated Financial Highlights (2023 vs 2022) | Metric (Millions) | 2023 | 2022 | | :--- | :--- | :--- | | Total Operating Revenues | $11,910.7 | $12,289.3 | | Operating Income | $2,399.3 | $2,198.2 | | Net (Loss)/Income Attributable to Common Shareholders | $(442.2) | $1,404.9 | | Diluted (Loss)/Earnings Per Share | $(1.26) | $4.05 | | Total Assets | $55,612.2 | $53,230.9 | | Total Long-Term Debt | $23,588.6 | $19,724.0 | | Total Common Shareholders' Equity | $14,173.9 | $15,473.2 | Eversource Consolidated Cash Flow Summary (2023 vs 2022) | Cash Flow (Millions) | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,646.2 | $2,401.3 | | Net Cash Used in Investing Activities | $(4,870.7) | $(4,130.5) | | Net Cash from Financing Activities | $2,869.2 | $2,029.9 | [Combined Notes to Financial Statements](index=106&type=section&id=Combined%20Notes%20to%20Financial%20Statements) The notes detail accounting policies, regulatory impacts, the $2.17 billion offshore wind impairment, $24.4 billion in long-term debt, and $12.9 billion in contractual commitments - Regulatory assets totaled **$6.39 billion** as of Dec 31, 2023, primarily consisting of deferred storm costs (**$1.79 billion**), regulatory tracking mechanism under-recoveries (**$1.32 billion**), and benefit costs (**$1.12 billion**)[605](index=605&type=chunk) - The company recorded a total pre-tax impairment charge of **$2.17 billion** (**$1.95 billion after-tax**) on its offshore wind investments in 2023, reducing the carrying value to **$516 million** at year-end[673](index=673&type=chunk)[679](index=679&type=chunk) - As of Dec 31, 2023, the company had significant non-cancelable, long-term contractual arrangements with estimated future costs of **$12.96 billion**, primarily for renewable energy purchases (**$9.66 billion**) and natural gas procurement (**$2.86 billion**)[759](index=759&type=chunk) [Controls and Procedures](index=163&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that Eversource's disclosure controls and internal controls over financial reporting were effective as of December 31, 2023, with no material changes - Management concluded that internal controls over financial reporting for Eversource, CL&P, NSTAR Electric, and PSNH were effective as of December 31, 2023, based on the COSO framework[854](index=854&type=chunk) - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective to ensure timely and accurate reporting as required by the SEC[855](index=855&type=chunk) [Other Information](index=163&type=section&id=Item%209B.%20Other%20Information) No company directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q4 2023 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of 2023[857](index=857&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=164&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding Eversource's directors, executive officers, and corporate governance is incorporated by reference from its forthcoming proxy statement - Information required by this item is incorporated by reference from the company's definitive proxy statement, to be filed on or about March 22, 2024[859](index=859&type=chunk) [Executive Compensation](index=164&type=section&id=Item%2011.%20Executive%20Compensation) Details regarding executive compensation for Eversource Energy are incorporated by reference from its definitive proxy statement, expected around March 22, 2024 - Information required by this item is incorporated by reference from the company's definitive proxy statement, to be filed on or about March 22, 2024[862](index=862&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=164&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership is incorporated by reference from the proxy statement, with 1,336,666 securities issuable under equity compensation plans as of year-end 2023 Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be Issued | Securities Remaining for Future Issuance | | :--- | :--- | :--- | | Approved by security holders | 1,336,666 | 4,587,376 | | Not approved by security holders | 0 | 0 | [Certain Relationships and Related Transactions, and Director Independence](index=166&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on related person transactions and director independence is incorporated by reference from Eversource Energy's definitive proxy statement - Information required by this item is incorporated by reference from the company's definitive proxy statement, to be filed on or about March 22, 2024[870](index=870&type=chunk) [Principal Accountant Fees and Services](index=166&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Aggregate fees billed by Deloitte & Touche LLP for Eversource totaled $7.07 million in 2023, primarily for audit services, all pre-approved by the Audit Committee Principal Accountant Fees (2023 vs 2022) | Fee Type | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Audit Fees | $5,310,000 | $5,323,600 | | Audit-Related Fees | $1,759,000 | $1,542,000 | | All Other Fees | $1,914 | $163,822 | | **Total** | **$7,070,914** | **$7,029,422** | Part IV [Exhibits and Financial Statement Schedules](index=168&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits included in the Annual Report on Form 10-K - This item lists the financial statements, schedules, and exhibits filed with the report The financial statements are found under Item 8[880](index=880&type=chunk) [Form 10-K Summary](index=168&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company's filing - Not applicable[881](index=881&type=chunk)

Eversource Energy (ES) is scheduled to release fourth-quarter 2023 results on Feb 13, after market close. The company delivered a negative earnings surprise of 2.02% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors to ConsiderEversource Energy’s transmission projects in Massachusetts include electric transmission upgrades in the greater Boston metropolitan area. Two of these upgrades, the Mystic-Woburn and the Wakefield-Woburn r ...

HARTFORD, Conn. & BOSTON--(BUSINESS WIRE)--Eversource (NYSE: ES) has again been named among America’s Most JUST Companies, as announced by JUST Capital and CNBC on their “JUST 100" list. In its fifth consecutive appearance, Eversource is ranked as the #3 utility and #38 overall on the list, which honors companies that address the business issues that matter most to Americans, including providing worker benefits and work-life balance, protecting customer privacy, and minimizing pollution. “ We are proud to ...

Eversource Energy (ES) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 13, 2024, might help the stock move higher if these key numbers are bette ...

Financial Data and Key Metrics Changes - The company reported GAAP and recurring earnings of $1 per share for Q3 2023, compared to $0.97 per share in Q3 2022, reflecting a slight increase [38] - The recurring earnings projection for 2023 has been narrowed to a range of $4.30 to $4.43 per share, up from the previous range of $4.25 to $4.43 per share [39] - The company reaffirmed its long-term EPS growth rate expectation in the upper half of the 5% to 7% range [39] Business Segment Data and Key Metrics Changes - The Electric Transmission segment earned $0.46 per share in Q3 2023, up from $0.44 per share in Q3 2022, driven by continued investments [16] - Electric Distribution earnings decreased to $0.50 per share in Q3 2023 from $0.65 per share in Q3 2022, primarily due to timing of rate design changes and increased storm-related costs [16] - The Natural Gas Distribution segment reported a loss of $0.10 per share in Q3 2023, compared to a loss of $0.07 per share in Q3 2022, attributed to higher regulatory and operating expenses [17] Market Data and Key Metrics Changes - The company noted that Connecticut residential customers receiving standard service dropped from over 90% last winter to 70% heading into this winter, indicating a shift towards competitive suppliers [33] - New England electric demand growth is expected to more than double by 2050, contrasting with relatively flat demand over the past decade [13] Company Strategy and Development Direction - The company is focused on enhancing service for customers and has invested significantly in electric and gas systems to ensure reliability and resilience [11] - Eversource is actively planning for a clean-energy future, having filed its Electric Sector Modernization Plan to support Massachusetts' clean energy climate plan [13] - The company is encouraged by recent support from regional governors for offshore wind investment, viewing it as essential for a clean energy future [14] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the New York Public Service Commission's denial of pricing adjustments for renewable projects but remains optimistic about future opportunities [6] - The company anticipates significant cash flow improvements from the sale of offshore wind projects and regulatory rate adjustments in Massachusetts [22][44] - Management emphasized the importance of maintaining strong credit ratings and expects to enhance the FFO to debt ratio significantly in 2024 and beyond [44] Other Important Information - The company completed the sale of its 50% interest in an offshore wind lease area to Orsted for $625 million, marking a significant milestone in exiting the offshore wind business [18] - The company expects to recover $400 million to $500 million in deferred storm cost recovery rolling into rates during 2024 [22] Q&A Session Summary Question: Can you provide clarity on the RFP process and the denial of the repricing petition? - Management explained that the New York PSC denied the repricing petition due to a preference for competitive procurement over administrative adjustments, but an accelerated RFP process was initiated shortly after [26] Question: What is the expected timeline for the sale of offshore wind projects? - Management indicated that while the buyer is familiar with Orsted and negotiations are progressing, they cannot provide a specific timeline for the completion of the sale [106] Question: How does the company plan to manage interest rate exposure moving forward? - Management stated that they have factored interest rate expectations into their long-term growth prospects and are implementing cost-cutting measures to mitigate impacts [91] Question: What are the implications of the recent Moody's credit rating action? - Management expressed disappointment but noted that short-term ratings were unaffected, and they expect to enhance cash flows significantly in 2024, which should improve credit metrics [44] Question: Can you elaborate on the strategy for deferred storm balances? - Management confirmed plans to file for recovery of deferred storm costs and emphasized that this process is in good shape and imminent [98]

EVERSOURCE ENERGY Q3 2023 RESULTS EVERSOURCE ENERGY Q3 2023 RESULTS 2 Revolution Wind Sunrise Wind | --- | --- | --- | --- | |------------------------------------------------|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Registrant; State of Incorporation; Address; Telephone Number; Commission File Number; and I.R.S. Employer Identification No. EVERSOURCE ...

Financial Performance - Eversource earned $15.4 million, or $0.04 per share, in Q2 2023, and $506.6 million, or $1.45 per share, in the first half of 2023, compared to $291.9 million, or $0.84 per share, in Q2 2022, and $735.3 million, or $2.13 per share, in the first half of 2022[191]. - The company reported a non-GAAP EPS of $1.00 for Q2 2023 and $2.41 for the first half of 2023, excluding an after-tax impairment charge of $331.0 million related to offshore wind investments[191]. - Eversource reaffirmed its 2023 non-GAAP EPS guidance range of $4.25 to $4.43 per share, with a long-term EPS growth rate projection of 5 to 7 percent through 2027[191]. - Eversource reported a net income attributable to common shareholders of $15.4 million for Q2 2023, a significant decrease from $291.9 million in Q2 2022, primarily due to an impairment charge of $331.0 million related to its offshore wind investment[194]. - Eversource's operating revenues for Q2 2023 were $2,629.3 million, an increase of $56.7 million compared to Q2 2022[280]. - Operating income for Q2 2023 was $560.7 million, up $105.1 million from $455.6 million in Q2 2022[280]. - For the first half of 2023, operating revenues totaled $6,425.0 million, an increase of $381.0 million from $6,044.0 million in the first half of 2022[280]. Cash Flow and Debt Management - Cash flows from operating activities totaled $647.3 million in the first half of 2023, down from $841.8 million in the first half of 2022[191]. - Eversource's cash and cash equivalents were $42.2 million as of June 30, 2023, down from $374.6 million as of December 31, 2022[191]. - The company issued $3.36 billion of new long-term debt in the first half of 2023 and repaid $853 million of long-term debt[191]. - Eversource parent has a $2.00 billion commercial paper program, with $529.0 million outstanding as of June 30, 2023, compared to $1.44 billion at the end of 2022[207]. - The company expects future operating cash flows and access to debt and equity markets to be sufficient for working capital and capital investment needs[203]. Investments and Capital Expenditures - The company invested $2.04 billion in property, plant, and equipment in the first half of 2023, compared to $1.55 billion in the same period of 2022[191]. - Eversource's total capital expenditures reached $1.98 billion in the first half of 2023, up from $1.56 billion in the same period of 2022[224]. - Eversource's total equity investment in its offshore wind business increased to $2.08 billion as of June 30, 2023, compared to $1.95 billion at the end of 2022[233]. - Eversource announced a sale of its 50% interest in an uncommitted lease area for $625 million in cash, expected to close by the end of Q3 2023[234]. - The company plans to use $575 million of the proceeds from the lease area sale to provide tax equity for the South Fork Wind project[190]. Segment Performance - The regulated companies segment generated net income of $347.5 million in Q2 2023, up from $297.2 million in Q2 2022, driven by increased earnings from electric distribution and transmission segments[194]. - Electric distribution segment earnings increased by $36.5 million in Q2 2023 compared to Q2 2022, attributed to a new regulatory tracking mechanism and lower operational costs[194]. - Eversource's electric transmission segment earnings rose by $9.5 million in Q2 2023, reflecting a higher transmission rate base due to ongoing investments in infrastructure[197]. - Natural gas distribution segment earnings increased by $4.0 million in Q2 2023, supported by capital tracking mechanisms and base distribution rate increases[198]. - Eversource's water distribution segment earnings decreased by $1.9 million in the first half of 2023 compared to the same period in 2022, primarily due to higher operational expenses[199]. Impairment and Regulatory Issues - Eversource recognized a pre-tax other-than-temporary impairment charge of $401.0 million in Q2 2023, reflecting a decline in the fair value of its offshore wind investment[192]. - Eversource parent and other companies' earnings decreased by $326.8 million in Q2 2023, largely due to the offshore wind investment impairment and higher interest expenses[200]. - The impairment charge related to Eversource's offshore wind investment was noted as part of the strategic review of its offshore wind investment portfolio[304]. - The company cannot predict the ultimate outcome of regulatory proceedings affecting its transmission incentives[263]. Sales and Volume Trends - Total electric sales volumes decreased by 4.0% to 11,164 GWh for the three months ended June 30, 2023, compared to 11,635 GWh in 2022[282]. - Natural gas sales volumes decreased by 4.6% to 23,751 MMcf for the three months ended June 30, 2023, compared to 24,894 MMcf in 2022[282]. - Water sales volumes increased by 14.0% to 6,370 MG for the three months ended June 30, 2023, compared to 5,590 MG in 2022[282]. - Retail electric sales volumes decreased by 7.9% at CL&P, 2.9% at NSTAR Electric, and 3.7% at PSNH for the six months ended June 30, 2023[310]. Expenses and Cost Management - Total operating expenses decreased by $48.4 million to $2,068.6 million in Q2 2023, compared to $2,117.0 million in Q2 2022[280]. - Interest expense increased by $47.3 million to $207.4 million in Q2 2023 compared to $160.1 million in Q2 2022[280]. - Amortization expense decreased by $220.3 million in Q2 2023 and $507.0 million in the first half of 2023, driven by the November 2022 rate relief plan[299]. - Operations and Maintenance expenses showed a slight increase at CL&P of $0.8 million, while NSTAR Electric experienced a decrease of $1.1 million[323]. Risk Management - Eversource's regulated companies manage credit risk with counterparties in accordance with established practices and monitor contracting risks[358]. - Eversource's Energy Supply Risk Committee reviews and approves all large-scale energy-related transactions to mitigate market risk exposure[354].