Eversource reaffirms guidance after Aquarion sale rejection

Eversource Energy (NYSE: ES) reaffirmed its 2025 earnings guidance and growth targets following Connecticut regulators' rejection of its proposed sale of Aquarion Water Company to the South Central Connecticut Regional Water Authority.

The Connecticut Public Utilities Regulatory Authority denied the transaction, prompting Eversource to evaluate regulatory and legal remedies. The utility company maintained its 2025 non-GAAP recurring earnings guidance of $4.72 to $4.80 per share and its expected compound annual earnings growth rate of 5% to 7% from a 2024 base of $4.57 per share.

"Eversource Energy remains in a strong financial position and we have ample tools in our toolbox to manage our capital structure and liquidity effectively," said John Moreira, executive vice president and chief financial officer, in a statement based on the press release.

The company said it prepared for alternative outcomes regarding the sale petition, including issuing common equity and $600 million in parent company debt. Eversource expects its funds from operations to debt metrics to remain above rating-agency downgrade thresholds through 2026.

The utility plans to submit an Aquarion rate case in early 2025 seeking $60 million to $70 million, with new rates anticipated before the end of 2026. Eversource serves approximately 4.6 million customers across Connecticut, Massachusetts and New Hampshire with electricity, natural gas and water services.

The company noted that PURA's new chairman, as the only lawyer on the commission, was recused from decisions in certain dockets during the regulatory transition.

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