Eversource Energy (ES) Dealt a Blow by Connecticut Regulators

Core Viewpoint - Eversource Energy faces significant challenges following the rejection of its $2.4 billion water utility sale by Connecticut regulators, impacting its financial outlook and operational strategy [3][4]. Group 1: Regulatory Impact - Connecticut regulators halted Eversource Energy's sale of its water utility Aquarion for $2.4 billion, citing failures in managerial suitability and responsibility requirements despite meeting other standards [3]. - This decision is seen as a major setback for Eversource, which is already dealing with organizational challenges and high long-term debt [3]. Group 2: Financial Outlook - Following the regulatory decision, Scotiabank reduced its price target for Eversource Energy from $64 to $63, maintaining an 'Underperform' rating, indicating a pessimistic outlook for the utility [4]. - Despite the setback, Eversource reaffirmed its FY 2025 adjusted EPS guidance of $4.72 – $4.80 and aims for a compound annual EPS growth rate of 5% to 7% from a 2024 base of $4.57 per share [5].