Utilities
Utilities - Regulated Electric
$21.00B
10.2K
Eversource Energy is a public utility holding company primarily engaged in energy delivery. It operates through its regulated subsidiaries, providing electricity, natural gas, and water services to residential, commercial, and industrial customers across Connecticut, Massachusetts, and New Hampshire. The company's market position is strong in New England, and its competitive advantages include its established infrastructure and regulatory expertise.
Key insights and themes extracted from this filing
The company's net income for 2024 was $811.7 million, or $2.27 per share, a considerable improvement from the $442.2 million loss, or $1.26 per share, reported in 2023. This shift indicates a recovery in financial performance.
Excluding losses from offshore wind sales, Aquarion's sale, and other specific items, non-GAAP earnings were $1.63 billion, or $4.57 per share, in 2024, compared to $1.52 billion, or $4.34 per share, in 2023. This indicates improved underlying profitability.
Cash flows provided by operating activities increased to $2.16 billion in 2024 from $1.65 billion in 2023. This improvement in operating cash flow provides increased financial flexibility.
The company projects capital expenditures of $24.17 billion from 2025 through 2029, with a focus on electric distribution, electric transmission, and natural gas distribution. This highlights a commitment to infrastructure investment and growth.
Eversource has entered a definitive agreement to sell its Aquarion water distribution business for approximately $2.4 billion in cash. This strategic move will allow Eversource to focus on its core energy delivery businesses.
Eversource completed the sale of its offshore wind investments in 2024, resulting in a net after-tax loss, but allowing the company to streamline operations and reduce future capital commitments in this sector.
The company has set an earnings guidance range of $4.67 to $4.82 per share for 2025 and projects a long-term EPS growth rate of 5% to 7% through 2029. This indicates management's confidence in the company's future performance.
Strategic workforce plans are developed every year as part of the annual business planning process to address immediate and long-range resource needs and to ensure that Eversource acquires, develops, and retains the most qualified individuals.
The company is committed to continuous monitoring and assessment of cyber security controls. The Chief Information Security Officer is responsible for developing, implementing, and enforcing our cyber security program and information security policies to protect the Company's information systems and operational assets.
The company acknowledges the increasing sophistication and frequency of cyberattacks targeting the utility industry, which could disrupt operations, lead to data breaches, and damage the company's reputation.
The company acknowledges that the actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity.
The company acknowledges that it is exposed to significant reputational risks, which make it vulnerable to increased regulatory oversight or other sanctions.
FERC's policy has encouraged competition for transmission projects, even within existing service territories of electric companies, as it looks to expand the transmission system to accommodate state and federal policy goals to utilize more renewable energy resources as well as to enhance reliability and resilience for extreme weather events.
Labor disputes, work stoppages or an inability to negotiate future collective bargaining agreements on commercially reasonable terms, as well as the increased competition for talent or the intentional misconduct of employees or contractors, may also have an adverse effect on our business, financial position and results of operations.
Advances in technology that reduce the costs of alternative methods of producing electric energy to a level that is competitive with that of current electric production methods, could result in loss of market share and customers, and may require us to make significant expenditures to remain competitive.
Focusing on improving the efficiency of our electric and natural gas distribution systems, preparing for increased opportunities that clean energy advancements create, and providing customers with ways to optimize their energy efficiency.
Implementing a grid modernization plan that will enhance our electric distribution infrastructure to improve resiliency and reliability and increase opportunities to facilitate integration of distributed energy resources, electric vehicle infrastructure, and electrification of building heat.
Eversource set a GHG reduction goal in 2019 to reduce Scope 1 and 2 emissions from our operations and reach carbon neutrality by 2030. This goal addresses emissions from our operations primarily in the form of line loss (emissions associated with the energy lost when power is transmitted and distributed across the electric system), methane leaks from our natural gas distribution system, fuel consumption from our facilities and vehicle fleet, and sulfur hexafluoride (SF6) leaks from electric equipment.
Established an Artificial Intelligence Executive Working Committee to ensure a "Secure by Design" approach to implementations of artificial intelligence.
Investigating emerging technologies such as energy storage and automation programs that improve reliability.
Implementing a grid modernization plan that will enhance our electric distribution infrastructure to improve resiliency and reliability and increase opportunities to facilitate integration of distributed energy resources, electric vehicle infrastructure, and electrification of building heat.
We project to make capital expenditures of $24.17 billion from 2025 through 2029, of which we expect $10.22 billion to be in our electric distribution segment, $6.00 billion to be in our natural gas distribution segment, and $6.81 billion to be in our electric transmission segment. We also project to invest $1.15 billion in information technology and facilities upgrades and enhancements.
Eversource plans to use the net proceeds from the pending sale to pay down parent company debt.
In 2024, we paid dividends totaling $2.86 per common share, compared with dividends of $2.70 per common share in 2023. Our quarterly common share dividend payment was $0.715 per share in 2024, as compared to $0.675 per share in 2023. On January 29, 2025, our Board of Trustees approved a common share dividend payment of $0.7525 per share, payable on March 31, 2025 to shareholders of record as of March 4, 2025.
The Governance, Environmental and Social Responsibility Committee of Eversource's Board of Trustees also provides oversight of climate issues, environmental matters and compliance.
Eversource is committed to the health, safety and wellness of our employees. We provide competitive compensation and comprehensive benefit packages, including healthcare, life insurance, sick time and disability plans, death benefits, retirement plans (defined benefit pension plans or 401k Plan), an Employee Stock Purchase Plan, health savings and flexible spending accounts, paid time off, employee assistance programs, and tuition assistance, among many others.
Eversource set a GHG reduction goal in 2019 to reduce Scope 1 and 2 emissions from our operations and reach carbon neutrality by 2030. This goal addresses emissions from our operations primarily in the form of line loss (emissions associated with the energy lost when power is transmitted and distributed across the electric system), methane leaks from our natural gas distribution system, fuel consumption from our facilities and vehicle fleet, and sulfur hexafluoride (SF6) leaks from electric equipment.
Due to a variety of factors, including the inflationary economic environment, geo-political conflicts, increased customer energy demand, the cost of energy supply, and public benefit charges assessed by our regulators, customer bills in New England remain high.
Adverse publicity of this nature could harm our reputation and the reputation of our subsidiaries; may make state legislatures, utility commissions and other regulatory authorities less likely to view us in a favorable light; and may cause us to be subject to less favorable legislative and regulatory outcomes, legal claims or increased regulatory oversight.
Our subsidiaries' operations are subject to extensive and increasing federal, state and local environmental statutes, rules and regulations that govern, among other things, water quality (including treatment of PFAS (Per- and Polyfluoroalkyl Substances) and lead), water discharges, the management of hazardous material and solid waste, and air emissions including greenhouse gases.