Core Viewpoint - Fitch Ratings has placed Eversource Energy and its utility subsidiaries on "rating watch negative" due to concerns that the Trump administration's stop-work order on the Revolution Wind offshore wind farm could financially weaken the company [1][4]. Group 1: Project and Financial Obligations - Eversource sold its 50% stake in the 700-MW offshore wind project to Global Infrastructure Partners (GIP) but remains responsible for certain project costs [2]. - Eversource is required to ensure that GIP receives a 13% pre-tax internal rate of return on its investment in the Revolution project [3]. - The company recorded approximately $360 million in liabilities when it sold its share in Revolution Wind, reflecting increased construction costs and delays [3]. Group 2: Risks and Uncertainties - The stop-work order introduces significant uncertainty and could lead to meaningful construction delays, resulting in large cost overruns or potential abandonment of the project [4]. - In a worst-case scenario, this situation could result in a one-notch credit rating downgrade for Eversource and its subsidiaries [4]. - Ørsted, which co-owns the Revolution project with GIP, has filed a lawsuit to lift the work-stop order, claiming the project is 80% complete [5]. Group 3: Capital Expenditure and Regulatory Environment - Eversource has a relatively low-risk $24 billion, five-year capital expenditure plan, which includes $10.2 billion for electric distribution facilities, $6.8 billion for FERC-regulated transmission, and $6 billion for natural gas distribution infrastructure [6]. - FERC-regulated transmission facilities constitute 36% of Eversource's rate base, with Connecticut and Massachusetts each accounting for 29% and New Hampshire for 6% [7]. - Fitch views FERC as one of the most constructive U.S. utility regulators due to its timely cost recovery and formulaic rates of return [7].