Eversource reported strong Q1 2026 results but lowered its full-year guidance due to an adverse FERC ruling on transmission base ROE. Management is actively appealing the decision and using alternative filings to mitigate the impact while reaffirming its long-term growth outlook. Non-GAAP EPS for Q1 2026 was $1.73, up from $1.50 in Q1 2025.
Eversource reported strong Q1 2026 results but lowered its full-year guidance due to an adverse FERC ruling on transmission base ROE. Management is actively appealing the decision and using alternative filings to mitigate the impact while reaffirming its long-term growth outlook. Non-GAAP EPS for Q1 2026 was $1.73, up from $1.50 in Q1 2025.
Eversource reported strong Q1 2026 results but lowered its full-year guidance due to an adverse FERC ruling on transmission base ROE. Management is actively appealing the decision and using alternative filings to mitigate the impact while reaffirming its long-term growth outlook.
Non-GAAP EPS for Q1 2026 was $1.73, up from $1.50 in Q1 2025.
2026 Non-GAAP EPS guidance reduced to $4.57-$4.72 due to the FERC ROE decision.
Company is appealing the FERC decision and expects a new rate under its 205 filing by end of 2026.
Guidance was revised down for 2026 due to FERC ROE decision, but long-term growth reaffirmed; overall tone is cautiously managing regulatory headwinds.
Management reaffirmed a five-year capital plan of $26.5 billion through 2030, with $5.1 billion forecast for 2026. The plan focuses on utility infrastructure investments across segments, including electric transmission and distribution, and excludes Connecticut AMI for now. They also mentioned ongoing investments in grid resilience and new generation integration.
Management acknowledged regulatory setbacks and pending items but expressed confidence in executing their strategy, highlighting strong operational performance and constructive regulatory developments.
“On April 30th, we made a Section 205 filing with FERC to establish a new base ROE using current market data, not market data that's over a decade old. Using FERC's own methodology from its recent decision and current market data, we arrive…”
“If we go the full process and not be able to settle with the parties, yes, I would agree the MISO decision is going to be a significant data point for us.”
“Now, in Connecticut and New Hampshire together, Eversource should recover approximately $2 billion in deferred storm costs and carrying charges through these securitization transactions within the next 12 to 18 months.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2030 | $26.5B | $26.5B | MAINTAINED |
| EPS | FY2026 | $4.57–$4.72 | $4.64 | LOWERED |
| EPS | FY2028 | $5.00–$7.00 | $6.00 | GUIDED |
Orsted's Revolution Wind project is near completion and expected online in H2 2026, adding 704 MW of supply to New England.
“Second, on Revolution Wind, as Orsted recently reported, the project is about 95% complete. The commercial operation date is still expected to be in the second half of this year”
… six. As we look to the current year, we recognize that there are some remaining items that we need to resolve to further strengthen our balance sheet and de-risk our business profile. First, on the sale of Aquariant, We received final approval from Pura in March. Last week, Pura denied an appeal from certain parties. We are now waiting for an additional appeal period to end in mid-June before we can close the transaction. Second, on Revolution Wind, as Orsted recently reported, the project is about 95% complete. The commercial operation date is still expected to be in the second half of this year, and we look forward to this much-needed source of generation for the New England region. Given the latest construction updates and cost estimates, we believe that the current contingent liability balance due to GIP remains appropriate. Finally, the recent decisions from FERC on the New England Transmission Owners Base ROE that was an attempt to address a 15-year-long complaint is flawed. We believe this decision by FERC departs from the statutory limitations imposed by the Federal Power Act and longstanding judicial precedent requiring FERC to set just and reasonable rates of return …
Eversource will partner with Enbridge on a gas pipeline enhancement in Massachusetts, signaling a collaborative project.
“they have approved a natural gas pipeline enhancement with Enbridge that we're going to partner with to bring in additional gas capacity into the region”
… You know, couple that with the fact that, you know, we are resisting data centers. I'm really not interested in a data center coming here. It's of no value to our residential customers. Actually, any customer. It's only going to drive up the price of energy. And so those are some of the things. And then you take a state like Massachusetts where they had an executive order that's looking at all things that we could possibly do. I mean, they have approved a natural gas pipeline enhancement with Enbridge that we're going to partner with to bring in additional gas capacity into the region. You know, as you know, we did purchase a 26-acre site from Joe Dominguez at Constellation that's going to allow us to inject outputs of 2,400 megawatts of power into the region. So I feel we're very well positioned to help our customers, you know, manage any energy costs and try to drive. We want to drive that clearing price down, and and make sure that we provide a stable, reliable network for it to operate on. I mean, I continue to be encouraged by the number of requests that we're getting to inject into our system. You know, there's clean energy resources, whether it's the hydro or the offshore …
Eversource purchased a site from Constellation for power injection, a transaction that highlights Eversource's interest in grid expansion.
“we did purchase a 26-acre site from Joe Dominguez at Constellation that's going to allow us to inject outputs of 2,400 megawatts of power into the region.”
… Actually, any customer. It's only going to drive up the price of energy. And so those are some of the things. And then you take a state like Massachusetts where they had an executive order that's looking at all things that we could possibly do. I mean, they have approved a natural gas pipeline enhancement with Enbridge that we're going to partner with to bring in additional gas capacity into the region. You know, as you know, we did purchase a 26-acre site from Joe Dominguez at Constellation that's going to allow us to inject outputs of 2,400 megawatts of power into the region. So I feel we're very well positioned to help our customers, you know, manage any energy costs and try to drive. We want to drive that clearing price down, and and make sure that we provide a stable, reliable network for it to operate on. I mean, I continue to be encouraged by the number of requests that we're getting to inject into our system. You know, there's clean energy resources, whether it's the hydro or the offshore wind, and the offshore wind's at a 50% capacity factor. It's very, very good. And it's at a time when we really need it, those winter months. Now, that's when it's really …
S&P reaffirmed Eversource's ratings post-FERC decision, indicating stability in credit assessment.
“On April 10th, following the FERC ROE decision, S&P reaffirmed its ratings and stable outlook for Eversource and our subsidiaries.”
… million to $1.1 billion. As communicated previously, this financing plan includes flexibility related to the Aquarion transaction outcomes. Next, on slide 12, I would like to share the latest affirmation of our strategy, which is that our FFO to debt metrics remain strong. Our latest metrics are 14.2% and 14.5% for S&P and Moody's, respectively. Consistent with our guidance, these are each over 100 basis points above the downgrade thresholds. On April 10th, following the FERC ROE decision, S&P reaffirmed its ratings and stable outlook for Eversource and our subsidiaries. These objective measures reflect the successful execution of our previously communicated strategy. Next, let me reaffirm our five-year capital plan of $26.5 billion, as shown on slide 13. This reflects our five-year utility infrastructure investments by segment through 2030. And we are off to a good start with CapEx of nearly 800 million through March as compared to our 2026 forecast of 5.1 billion. As you can see on this slide, Connecticut AMI is not included in our plan. We look forward to the next steps on this opportunity following the recent constructive hearings held by Pura earlier this year. As we stated …
Eversource discusses its FFO-to-debt metrics as calculated by S&P and Moody's, indicating a focus on maintaining credit strength.
… is unchanged since the update we provided during our fourth quarter earnings call. We continue to expect that our equity needs over the next five-year forecast period are in the range of $800 million to $1.1 billion. As communicated previously, this financing plan includes flexibility related to the Aquarion transaction outcomes. Next, on slide 12, I would like to share the latest affirmation of our strategy, which is that our FFO to debt metrics remain strong. Our latest metrics are 14.2% and 14.5% for S&P and Moody's, respectively. Consistent with our guidance, these are each over 100 basis points above the downgrade thresholds. On April 10th, following the FERC ROE decision, S&P reaffirmed its ratings and stable outlook for Eversource and our subsidiaries. These objective measures reflect the successful execution of our previously communicated strategy. Next, let me reaffirm our five-year capital plan of $26.5 billion, as shown on slide 13. This reflects our five-year utility infrastructure investments by segment through 2030. And we are off to a good start with CapEx of nearly 800 million through March as compared to our 2026 forecast of 5.1 billion. As you can see on …
Eversource's 205 filing requires coordination with ISO New England, a key stakeholder in the transmission ROE process.
… several actions to protect the right to a fair rate of return on invested capital. On April 2nd, we filed a motion for a stay at Berwick. seeking to pause the order refund obligations and ensure time for an appropriate legal review. This was followed by a similar filing at the U.S. Court of Appeals for the D.C. Circuit on April 14th. Also on April 2nd, we filed a motion for an extension of the refund deadline. Without this extension, first order would have required that we issue refunds within 30 days, ignoring the necessary process of working with ISO New England and load-serving entities throughout the region. This extension was granted by FERC, extending the deadline to May of 2027. On April 20th, we filed a request for rehearing at FERC, seeking to resolve the decision's multiple legal deficiencies. And lastly, on April 30th, we made a Section 205 filing with FERC to establish a new base ROE using current market data, not market data that's over a decade old. Using FERC's own methodology from its recent decision and current market data, we arrived at a just and reasonable base ROE for transmission of 11.39%. We expect that this updated rate will be implemented towards the …