Eversource Energy (ES): Closing of Aquarion sale removes overhang, with additional derisking developments; Buy

研报英文原文证据摘录

Eversource Energy (ES): Closing of Aquarion sale removes overhang, with additional derisking developments; Buy

Goldman Sachs Eversource Energy (ES)

to pay down/offset parent company debt. Management also reaffirmed its

long-term EPS growth target of 5-7% through 2030 and 2026 adjusted EPS guidance

of $4.57-$4.72, including the impact of the absence of Aquarion earnings.

n Our view: We view this sale as an opportunity for the company to strengthen its

balance sheet and maintain its credit metric targets, as the sale proceeds will reduce

the overall debt burden, allowing the company to redirect capital into its core

regulated electric and gas businesses. In addition, exiting the water business will

allow Eversource to become a pure-play electric and gas utility, improving

operational focus of the company.

Connecticut Storm Cost Recovery

n Previous actions: In December 2025, ES had asked PURA to pass ~$1 bn of storm

restoration costs incurred from 2018-2023 to customers. By April 2026, the

requested amount grew to ~$1.4 bn as interest charges accumulated.

n What happened? On 6/29, PURA released a tentative proposed decision that

approved $944 mn of the requested $974 mn, or about 97%, while leaving out the

retroactive interest payments. Next, the focus shifts to the legal arguments and

public review process, with formal exceptions due by July 13 and oral arguments set

for July 17. The final binding vote is scheduled for July 29 and should bring clarity to

the final decisions.

n Our view: Although the decision will not be legally binding until July 29, we view the

tentative proposed decision as potentially reducing balance-sheet risk by easing

regulatory uncertainty and providing an avenue for cost recovery, as the final vote