Eversource Energy: Simplification Story in Progress, but FERC Refund Process Remains Complicated

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Eversource Energy: Simplification Story in Progress, but FERC Refund Process Remains Complicated

t may be unjust and unreasonable. ES indicates it could resolve all outstanding FERC

ROE/refund items through a comprehensive settlement, using alleged undercharging at 10.57% vs. Exhibit 1 - 2029 Jefferies Adjusted EPS

11.14% as a bargaining chip. We are skeptical NE political and regulatory stakeholders would walk away Estimate vs Bloomberg Consensus: Top and

from such a substantial source of ratepayer relief given regional affordability concerns. A recent ALJ Bottom Five Deltas

draft decision for a Viridon transmission line in nearby NY had a 9.53% authorized ROE. 6%4%

2%

CL&P rate case incoming: still indications of PURA/ES misalignment. CL&P filed its formal ~ 0%

$451Mn rate case application, supporting a ~11% residential bill increase. See risk to cost of capital -2%-4%

with recent PURA Staff recommendations for Aquarion ROE -50bps below current authorized level. -6%

Gov. Lamont's utility reforms contemplate ROE caps and penalties for utility failing to deliver -10%-8%

affordability, cost-saving investment. Governor Lamont's proposals include the potential of franchise -12% D OGE XEL NI PNW NEE EIX FE ES HE

.

revocation, representing a clear escalation in tension. Source: Jefferies LLC, Company Filings, and Bloomberg

We prefer other data center hedges in our coverage universe. Investor inquiries for ideas with

reduced AI exposure have risen substantially in the last month. Mgmt. proclaims it is "not in the Paul Zimbardo * | Equity Analyst

data center business", and indeed there is no significant data center development ongoing in +1 (212) 778-8497 | pzimbardo@jefferies.com

Eversource's service territories.