Eversource Energy

Q3 performance & why earnings dipped (important negatives + context) - GAAP recurring earnings: $0.92/share (vs $0.99/share in Q3’25 GAAP); non-GAAP recurring: $0.92/share vs $1.19/share in Q3’25 non-GAAP. - Key year-over-year headwinds cited: - FERC ROE decision (March 19): transmission ROE reduced to 9.57%. - CL&P storm costs disallowance: about $40M disallowed in PURA’s final July decision. - Aquarion sale: no more water-segment earnings. - Higher effective tax rate vs prior year. - Offsetting positives: rate increases via various PBR plans and capital trackers. - Management framed these moves as necessary steps toward becoming a “pure-play pipes and wires” utility with lower risk / stronger balance sheet.

2026 EPS outlook (forecast) - Company narrowed 2026 non-GAAP EPS guidance to $4.62–$4.70/share, midpoint $4.66. - Long-term earnings growth confidence: still targeting 5%–7% annual growth toward the upper half by 2028, supported by regulatory progress + storm cost securitization + ongoing rate mechanisms.

CL&P (Connecticut) rate case: progress + affordability emphasis (big opportunity) - PURA engagement described as constructive; Eversource has responded to thousands of data requests. - Request mix (investor-relevant detail): - 66% of revenue deficiency for capital investments (reliability/resiliency/modernization). - 17% for storm restoration + vegetation management. - ~$50M O&M (~12%); management highlights O&M discipline vs inflation (they claim inflation-linked O&M growth would have been nearly $100M). - Customer affordability strategy: proposed multiyear PBR with gradual inflation-indexed changes + performance metrics. - Major investment commitment: $4B in Connecticut distribution infrastructure over 5 years. - Risks/unknowns: outcome timing and settlement likelihood remain uncertain; they’re still early in the case (discovery/hearings phase).