Secure-(itized) in the Storm (Costs)

Research evidence excerpt

Secure-(itized) in the Storm (Costs)

June 30, 2026 | 11:14 ET~

Eversource Energy

ES-NYSE Rating Price: Jun-29 Target Total Rtn Utilities, Power & Renewables

Market Perform $73.77 $73.00 3%

James M. Thalacker Analyst

james.thalacker@bmo.com (347) 668-8970

Edward M DeArias, CFA VP Associate

Secure-(itized) in the Storm (Costs) edward.dearias@bmo.com (347) 274-1556

Holly Rohlfs Senior Associate

holly.rohlfs@bmo.com (332) 274-9870

Bottom Line: Ethan Corcoran Senior Associate

CT PURA issued a Proposed Final Decision in the prudence proceeding for CL&P's ethan.corcoran@bmo.com (347) 839-1752

storm costs. While the headline recoverable amount of $742mm represents a Legal Entity: BMO Capital Markets Corp.

sizable delta from the ~$1.36bn request, the order supports $933mm of prudently

2YR Price Volume Chart

incurred storm costs which compares to the $965mm requested. The difference 85

is attributable to PURA's stance on retroactive carrying costs, costs deemed already 80

recovered through the storm reserve accrual, and revenue recovered through the CTA 70

mechanism. Overall, we view the PFD as in-line/constructive. Maintain our Market 65 15

Perform rating. 60 10

55 5

Key Points 50 Dec Jun Dec Jun 0

LHS: Price ($) / RHS: Volume (mm) Source: FactSet

ES's total request included $965mm of storm costs incurred for storms occurring in Company Data in $

the 2018-2023 time period and $397mm of carrying costs resulting in a total request

Dividend $3.15 Shares O/S (mm) 376.1

of ~$1.36bn. PURA's PFD issued last night awards the company $742mm as the

recoverable headline. Yield 4.3% Market Cap (mm) $27,743

However, we note the core amount for storm costs deemed prudent was $933mm P/BV 1.8x Net Debt (mm) $16,269

compared to $965mm in the request.