Eversource Energy's second-quarter profit fell to $53.7 million from $352.7 million in the same period a year earlier, the utility company reported Friday. The sharp decline stemmed primarily from one-time charges tied to an offshore wind project, a water utility sale, and a pending regulatory refund. Despite the quarterly hit, the Massachusetts-based electric and gas company maintained its full-year earnings outlook and long-term growth targets.
The charges that dragged down quarterly results included $164 million in added liability from Eversource's stake in the Revolution Wind offshore project, $111.4 million related to selling its Aquarion water division, and $62 million for an upcoming transmission return on equity refund, according to the company. Earnings per share dropped to 14 cents from 96 cents in the prior year's second quarter. The company continues to project it will earn between $4.57 and $4.72 per share in ongoing income for 2024 and expects annual earnings growth of 5% to 7% through 2030. Eversource also disclosed that ISO New England tentatively picked a joint proposal with Avangrid to construct $2.2 billion worth of transmission infrastructure capable of moving 1.2 gigawatts of wind power from Maine to Massachusetts, with completion targeted for 2032. The company's share of that project totals roughly $700 million. Separately, Eversource's Connecticut Power and Light unit filed for an 11% rate increase—amounting to $451 million—with state regulators in mid-July.
The 704-megawatt Revolution Wind project is now 97% finished and expected to begin full operations by year-end, chairman and CEO Joseph Nolan said during Friday's earnings call. Work stoppages ordered by the Trump administration delayed the project and pushed up Eversource's costs, he explained. Nolan expressed confidence the project will wrap up in 2024, noting it's already delivering 300 megawatts to the regional grid. "The remaining pieces of the installation are very straightforward," he said. "There's no uncertainty around it." Nolan also argued that if the Maine-to-Massachusetts transmission project wins final approval in September, "it will greatly help address the affordability challenge facing New England by enabling increased supply and easing congestion costs."
The transmission expansion plans arrive amid heightened debate over how much profit transmission owners should be allowed to earn, sparked in part by a March decision from federal regulators that deemed New England's returns too generous. Under that ruling, Eversource faces potential refunds reaching $968.4 million, though the company and other utilities have challenged the decision and requested revised rates. Meanwhile, Eversource's $1 billion advanced metering proposal for 1.4 million Connecticut customers—which has a benefit-to-cost ratio of just 0.66—would impose roughly $350 million more in costs than benefits on ratepayers, prompting analysts at Jefferies to predict state regulators will reject it. Neither the metering initiative nor the major transmission project is reflected in Eversource's current five-year capital plan of $26.6 billion. Nolan tied the company's investment strategy to a broader balance, arguing that allowing the grid to deteriorate makes it less reliable and ultimately costlier to repair, while efficient operations and targeted spending can deliver long-term value at the lowest reasonable expense.