Eversource entered a definitive agreement to sell its Aquarion water distribution business for approximately $2.4 billion, with an expected closing in late 2025. The company plans to use the net proceeds to pay down parent debt, signaling a strategic focus on its regulated electric and natural gas utility segments.

The company continues to invest heavily in its core infrastructure, with $2.05 billion in Property, Plant and Equipment investments for the first half of 2025. Notable projects include the $1.84 billion Greater Cambridge Energy Program, which has already seen $137.4 million in spending to enhance grid resiliency and meet demand.

The NHPUC approved a permanent rate increase of $100.7 million for PSNH, effective August 1, 2025, with a 9.5% authorized ROE and an alternative regulatory framework. Additionally, DPU approved an interim cost recovery mechanism for NSTAR Electric's ESMP, with a $139 million spending cap, providing clarity and support for future investments.

Management's ability to secure favorable regulatory recoveries, particularly for CL&P's non-bypassable FMCC and SBC mechanisms, directly led to a significant increase in operating cash flow to $2.10 billion in H1 2025. This demonstrates strong execution in navigating the complex regulatory environment to ensure cost recovery.

The completed sale of offshore wind projects in Q3 2024 and the pending sale of the Aquarion water business demonstrate management's commitment to streamlining operations and focusing on regulated electric and natural gas utilities. The proceeds from these sales are intended to strengthen the balance sheet by reducing parent company debt.

CL&P has filed multiple supplements for prudency review of catastrophic storm costs, with the latest filing in July 2025 to include carrying charges of $246 million. While management believes these costs were prudently incurred and are probable of recovery, the ongoing nature of these proceedings indicates a persistent challenge requiring careful navigation.

There is significant uncertainty regarding the applicability of the MISO ROE order to the NETOs' pending four complaint cases. Eversource maintains a reserve of $39.1 million for the second complaint period, but management cannot reasonably estimate a potential range of loss, indicating a material financial risk if adverse rulings occur.

Despite the sale of offshore wind projects, Eversource recorded a contingent liability of $296 million as of June 30, 2025, related to expected cost overrun sharing and obligations to maintain GIP's internal rate of return. New information or construction delays could lead to additional material losses, posing an ongoing financial risk.

The 'One Big Beautiful Bill Act' (OBBBA), signed July 4, 2025, phases out clean electricity production and investment tax credits for wind and solar projects beginning construction after July 4, 2026. This could impact the economics of future clean energy projects and the company's ability to qualify for investment tax credits.

As a public utility holding company, Eversource's core business is rate-regulated, allowing for cost recovery and a return on investment through approved rates. This structure inherently limits direct competition within its service territories, providing a stable and predictable revenue environment.

Investments like the NSTAR Electric ESMP and the Greater Cambridge Energy Program aim to improve grid reliability, meet customer demand, and strengthen resilience against extreme weather. These enhancements are critical for maintaining customer satisfaction and regulatory support, reinforcing the company's position as a reliable service provider.

The company's pricing power is determined by state regulatory commissions through rate cases and PBR mechanisms, rather than market competition. Recent approvals for rate increases at PSNH and NSTAR Gas, along with CL&P's PBR framework, demonstrate the ability to adjust rates to recover costs and earn an authorized return.

Energy Efficiency Programs expense decreased for the three months ended June 30, 2025, primarily due to deferral adjustments, but increased for the six-month period due to higher program spending. This indicates fluctuating operational efficiency in managing these programs, which are designed for cost recovery.

Total Operations and Maintenance (O&M) expenses increased by $3.2 million for the three months ended June 30, 2025, and by $27.6 million for the six months ended June 30, 2025, compared to the prior year periods. This modest rise is attributed to higher uncollectible expense and employee-related costs, indicating some pressure on operational efficiency.

Amortization expense increased significantly by $223.2 million for the three months and $681.1 million for the six months ended June 30, 2025, primarily due to deferral adjustments of energy-related and other tracked costs at CL&P, NSTAR Electric, and PSNH. These fluctuations are tied to the timing of cost recovery through regulatory mechanisms, not core operational efficiency.

NSTAR Electric received DPU approval for an interim cost recovery mechanism for its Electric Sector Modernization Plan (ESMP), with a $139 million spending cap for grid modernization and resiliency investments. This underscores the company's commitment to leveraging technology for infrastructure upgrades and enhanced service delivery.

The $1.84 billion Greater Cambridge Energy Program, with $137.4 million spent to date, involves constructing an underground transmission substation and associated lines. This project represents a significant investment in advanced infrastructure to support decarbonization, electrification goals, and ensure a flexible, reliable grid.

The Connecticut Public Act No. 25-173 authorizes the securitization of storm-related expenses and advanced metering infrastructure (AMI) investments. This indicates a continued focus on technological upgrades like AMI to improve operational efficiency and long-term cost recovery.

In the first half of 2025, Eversource issued $1.73 billion of new long-term debt, while repaying $375 million. This indicates a reliance on debt financing to support ongoing capital investments in property, plant, and equipment, which totaled $2.05 billion in the same period.

On May 30, 2025, Eversource entered an equity distribution agreement to offer and sell up to $1.2 billion of common shares through an 'at-the-market' program. In Q2 2025, the company issued 3,378,765 common shares, generating $218.0 million in net proceeds, used for general corporate purposes.

The Board of Trustees approved a common share dividend payment of $0.7525 per share, and the company paid $540.9 million in cash dividends during the first half of 2025. This consistent dividend policy demonstrates management's commitment to returning value to shareholders.

Connecticut Public Act No. 25-173, effective July 1, 2025, aims to reduce electric rates by up to $300 million over two years and authorizes the securitization of storm-related expenses. This initiative reflects a focus on social responsibility by addressing affordability and long-term cost recovery for customers.

The company's environmental reserves increased, primarily due to changes in cost estimates at Manufactured Gas Plant (MGP) sites, reaching $139.1 million as of June 30, 2025. This indicates ongoing efforts and liabilities related to environmental clean-up from past operations.

The Greater Cambridge Energy Program is designed to enhance grid flexibility to transmit and distribute mixed energy sources, supporting the decarbonization and electrification goals of Cambridge and Massachusetts. This project aligns with environmental commitments and sustainability opportunities.

Recent regulatory decisions, such as the NHPUC's approval of a $100.7 million permanent rate increase for PSNH and the DPU's approval of NSTAR Electric's ESMP interim cost recovery, demonstrate a supportive regulatory environment. These outcomes provide a stable foundation for future investments and earnings.

Higher interest expense for Eversource Parent and Other Companies, due to increased short-term debt costs, reflects the impact of the broader macroeconomic environment on borrowing costs. This suggests that rising interest rates are a factor influencing the company's financial performance and capital allocation decisions.

The Greater Cambridge Energy Program and NSTAR Electric's ESMP are direct responses to industry trends toward decarbonization and electrification. These projects aim to modernize the grid to support mixed energy sources and increased electric demand, aligning with long-term energy transition drivers.