Eversource Faces Setbacks on Aquarion Sale and Offshore Wind, Issues New $900M Guarantee

summarizeSummary

Eversource Energy's 10-K confirms 2025 earnings and 2026 guidance but reveals major setbacks, including the denial of its $2.4 billion Aquarion water business sale and a new $900 million guarantee for offshore wind tax positions.

check_boxKey Events

• Aquarion Water Business Sale Denied and Under Appeal

  The planned $2.4 billion sale of the Aquarion water business was denied by PURA in November 2025 due to governance concerns. A Connecticut Superior Court remanded the decision back to PURA in January 2026, prolonging uncertainty and delaying expected debt reduction.

• New $900 Million Offshore Wind Guarantee Issued

  In January 2026, Eversource issued a $900 million guarantee to Global Infrastructure Partners (GIP) to support tax positions related to the Revolution Wind project, adding a significant new financial obligation for a divested asset.

• Offshore Wind Contingent Liability Increased

  The contingent liability for post-closing adjustments on divested offshore wind projects increased by $284 million in Q3 2025, reaching $448.2 million by year-end, reflecting higher construction costs and delays.

• PSNH Rate Case Decision Appealed

  The New Hampshire Department of Energy and the Office of the Consumer Advocate filed appeals in January and February 2026, challenging aspects of the NHPUC's July 2025 decision to approve a $100.7 million permanent rate increase for PSNH.

auto_awesomeAnalysis

Eversource Energy's annual 10-K filing, while confirming previously released 2025 earnings and positive 2026 guidance, highlights significant legal and financial challenges. The denial of the $2.4 billion Aquarion water business sale by regulators and the subsequent appeal introduce considerable uncertainty and delay the company's deleveraging plans. Furthermore, a new $900 million guarantee related to offshore wind tax positions represents a substantial financial commitment for a divested asset. These developments, alongside appeals against a PSNH rate increase and an increase in offshore wind contingent liabilities, present material risks and uncertainties for investors, overshadowing the positive long-term capital expenditure plan and dividend increase.