Eversource Energy (ES) Business Profile

What it does

Eversource Energy is a public utility holding company that delivers electricity and natural gas through regulated subsidiaries. Its electric utilities operate the local networks that bring power to homes and businesses and own high-voltage transmission facilities that carry electricity across New England. Its gas utilities distribute and sell natural gas to customers in Connecticut and Massachusetts.

The company serves residential, commercial and industrial customers. Its local electric businesses purchase power for customers who do not select another supplier, but the utility continues to deliver electricity even when a customer buys the energy itself elsewhere. Gas customers can also buy transportation service separately from gas supply in some cases.

Eversource was founded in 1966 and is headquartered in Boston, Massachusetts, and Hartford, Connecticut. Joseph R. Nolan, Jr. is chairman, president and chief executive officer.

Eversource previously also operated a regulated water business, Aquarion. It has since sold that business and received $1.7 billion in net proceeds. The company also sold its ownership interests in offshore wind projects, although it retains a tax equity investment in South Fork Wind and obligations associated with the sales. Revolution Wind has reached commercial operation, and Eversource expects to settle its remaining contractual obligations with the buyer in 2027.

How it makes money

Eversource earns revenue by delivering electricity and natural gas and by selling energy to customers who use its supply service. Regulators establish the rates its utilities charge. Those rates are designed to recover eligible operating costs and investments and allow a return on invested capital.

Electric distribution charges pay for building, expanding and maintaining local networks, including poles, lines and meters. Transmission charges recover the cost of moving electricity over high-voltage lines. The gas utilities charge for distribution infrastructure and provide both gas sales and transportation service. These services generate recurring customer bills, though charges can change through rate cases and adjustment mechanisms.

Energy supply is different from delivery: the Connecticut, Massachusetts and New Hampshire electric utilities pass purchased power costs to supply customers without a markup. The gas utilities likewise pass purchased gas costs through without earning a return on the commodity. Bills can also include charges for public programs, conservation and other mandated costs.

Wholesale transmission rates follow a federal formula that incorporates actual costs, an allowed return on equity and forecast information. Differences between estimated and actual costs are recovered from or refunded to customers later. Some distribution mechanisms similarly reconcile collections to an approved revenue requirement, rather than leaving all revenue dependent on the volume delivered.

Eversource earned $1.69 billion in 2025; its GAAP earnings were 92 cents per share in the third quarter of 2026.

Aquarion’s water distribution earnings are no longer part of the ongoing business following its sale. Eversource’s reported results have also included charges related to its former offshore wind investments.

Customers and how it sells

Eversource serves customers in Connecticut, Massachusetts and New Hampshire through local utility subsidiaries. It was reported on 4 November 2026 that the company served more than 4 million electric and natural gas customers across those states. Customers include households, commercial businesses and industrial facilities.

The electric utilities serve customers in defined local territories. As of December 31, 2025, Connecticut Light and Power served approximately 1.32 million customers in Connecticut, NSTAR Electric served approximately 1.62 million in Massachusetts, and Public Service Company of New Hampshire served approximately 549,000 in New Hampshire. Eversource’s transmission facilities also carry power across the wider New England grid.

Residential customers use natural gas for needs such as heating, hot water and cooking; business customers also use it for commercial and industrial applications. Gas service is provided in Massachusetts and Connecticut.

Electric customers can choose their energy supplier while retaining Eversource’s local delivery service. Massachusetts gas customers can choose third-party marketers; in Connecticut, residential customers in Yankee Gas’s territory buy both gas supply and delivery from Yankee Gas, while commercial and industrial customers can choose suppliers. The company’s Aquarion water customers were served across the same three states before the water business was sold.

Suppliers and costs

Eversource depends on third-party suppliers for electricity and natural gas. Its electric utilities procure power from competitive sources for customers who have not selected another supplier. Connecticut Light and Power uses requests for proposals for supply contracts and can meet remaining obligations through wholesale markets if it does not obtain sufficient contracts. The gas businesses also incur pipeline and storage capacity costs.

The company owns and maintains delivery infrastructure rather than manufacturing a physical product. Its costs include operating and maintaining networks, storm restoration, vegetation management, property taxes, depreciation and interest. Electric and gas infrastructure expenditures are recovered over the life of the assets, subject to regulatory arrangements.

In 2025, Eversource invested $4.16 billion in property, plant and equipment. Its regulated businesses use operating cash flow, borrowing, capital contributions and existing cash to fund their requirements. Eversource also issued common shares under an equity offering program in 2025.

Some costs are passed through to customers or reconciled later, but recovery is subject to regulatory approval. Storm restoration costs, for example, may be challenged or disallowed, and the timing of collections can differ from the timing of spending.

Competitive position

Eversource’s local electric utilities remain the distribution companies for their customers even when those customers select a competitive electricity supplier. During 2025, approximately 50 percent of Connecticut Light and Power’s customer load had migrated to competitive suppliers. At NSTAR Electric, the remaining 88 percent of overall customer load beyond basic service was served by municipal aggregation or competitive supply. The company states that this supply migration does not affect its electric distribution business or operating income.

Gas supply competition varies by state and customer type. Massachusetts retail gas customers can choose third-party marketers, while Connecticut’s residential customers in Yankee Gas’s territory buy supply and delivery from Yankee Gas. Commercial and industrial customers there can choose gas suppliers.

Transmission development is another competitive area. Federal policy and regional planning processes can require Eversource to bid against non-incumbent developers for certain projects. No specific competing developers are named for those solicitations.

Our reading: The established local delivery territories provide a meaningful protection for the distribution business because customers can switch energy suppliers without switching their local electric distributor.

Our reading: Ownership of transmission infrastructure supports the business, but its protection is more limited for new projects that must go through competitive solicitation. Regulated returns and cost recovery also depend on decisions by regulators.

Growth opportunities

Eversource’s investment plans focus on electric distribution, transmission, natural gas networks and supporting technology. The company has reaffirmed a $26.5 billion five-year utility infrastructure plan through 2030. Its planned work includes maintaining and improving infrastructure, modernizing the grid and replacing aging equipment. Investments placed into service can enter the regulated rate base under the applicable rules, although recovery and returns depend on regulatory decisions.

In Connecticut, Eversource has proposed performance-based rates in its electric distribution rate case and says it is ready to invest $4 billion in distribution infrastructure over the next five years. The proposal is intended to support system investment while incorporating cost-efficiency measures. The company has also included advanced metering in its Connecticut rate request and is updating its cost estimate.

In Massachusetts, Eversource has installed over 500,000 smart meters as part of its rollout. It is also pursuing transmission opportunities: a joint proposal with Avangrid was selected as the final solution in a regional planning process. Eversource’s portion of the $2.2 billion project is $700 million, which the company identifies as additional to its current capital plan.

Eversource has also received a grid technology award that could provide approximately $50 million in funding, pending a final agreement. The initiative would be expected to begin in 2027.

Structural risks

• Regulation and affordability: Regulators can reduce allowed returns, disallow costs or delay rate changes. Customer affordability concerns could lead to stricter recovery standards or delayed or denied increases. Eversource is appealing components of Connecticut’s storm-cost decision, including the denial of carrying charges.

• Transmission returns and refunds: Federal decisions on transmission returns and incentives can affect earnings and cash flow. Eversource is appealing a retroactive refund and says accounting rules may require it to recognize the final refund amount before the case concludes.

• Storms and climate: Severe weather can damage networks, interrupt service and require restoration spending. State regulators may find some costs imprudent and deny recovery or impose penalties; insurance may not cover all losses.

• Offshore wind obligations: Eversource remains responsible for certain purchase-price adjustments after selling its offshore wind interests. Additional costs, delays or changes in tax-credit eligibility could increase its obligation. The company believes its current reserve is adequate, but expects settlement with the buyer in 2027.

• Cybersecurity: Attacks or other technology failures could disrupt utility operations, expose information and cause repair costs, litigation or regulatory scrutiny. Third-party systems and software are also potential sources of disruption.

• Financing and execution: Infrastructure projects require substantial capital and may face permitting delays, higher costs or difficulty obtaining rights of way. Cost recovery can lag spending, while the company relies on operating cash flow and access to financing.

Bottom line

Our reading

Eversource is an energy delivery business built around regulated local networks and regional transmission infrastructure. Its territories and recurring delivery charges support the business, while future returns depend on investment entering rates and on regulators allowing timely recovery. The capital plan creates opportunities to expand those networks, but storm costs, transmission refunds and remaining offshore wind obligations can affect earnings and cash flow.