Eversource Energy: Reading past the headline in PURA’s PFD – we maintain Buy rating

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Eversource Energy: Reading past the headline in PURA’s PFD – we maintain Buy rating

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Eversource Energy

Reading past the headline in PURA’s PFD –

we maintain Buy rating

Maintain Rating: BUY | PO: 75.00 USD | Price: 73.77 USD

Optical cut overstates a constructive prudence outcome 29 June 2026

Eversource (ES) sought $965mn of securitizable storm costs, and PURA’s PFD found Equity

$933mn prudently incurred – a cut of barely 3%, and a result that lands above what both

Nicolas Woods

the OCC and PURA’s own enforcement staff had recommended. However, only $742mn Research Analyst

is ultimately securitizable, the step-down from $933mn reflecting customer-funded BofAS +1 646 556 4179

offsets rather than any further disallowance. The far larger reduction from the nicolas.woods_barron@bofa.com

company’s full $1.36bn request lies in the carry – the Authority denied the entire Ross Fowler, CFA

$397mn retrospective carrying charges. Research Analyst BofAS

ross.fowler@bofa.com

Offsets are recovered through slower mechanisms F. Paul Cole

The two offsets behind the $742mn are customer money already in the system, not new Research Analyst BofAS

proceeds. The storm-reserve credit (~91mn) is cost ratepayers have already funded and paul.cole2@bofa.com

simply reduces the deferred balance; the CTA offset ($100mn) is recovered over time Rinny Singh

through that bill mechanism rather than the bond. So, of the ~$933mn in prudent ResearchBofAS Analyst

recovery, only the securitization tranche is near-term lump-sum cash – the rest returns rinny.singh@bofa.com

through existing mechanism on a slower cadence. David Rold, CFA

Research Analyst

Carry denied backward, granted forward BofASdavid.rold@bofa.com