Eversource Energy Takes $44M Hit on FERC ROE Cut, Adjusts 2026 Guidance
Event summary
- Eversource reported Q1 2026 GAAP earnings of $606.8M ($1.61/share), up from $550.8M ($1.50/share) in Q1 2025.
- FERC's March 2026 decision cut New England transmission ROE from 10.57% to 9.57%, triggering a $43.9M Q1 charge.
- Eversource proposes a new 11.39% ROE rate, pending FERC approval later in 2026.
- 2026 non-GAAP EPS guidance lowered to $4.57–$4.72 (from $4.80–$4.95) due to FERC impact and Aquarion sale.
- Q1 earnings growth driven by transmission investments (+$24.9M) and rate increases in distribution segments.
The big picture
Eversource's Q1 results highlight the tension between regulatory constraints and the need for transmission investments to support New England's energy transition. The FERC decision underscores the volatility of regulated returns, while the guidance revision reflects broader challenges in balancing growth with compliance costs. With $4.6B in annual revenues and 4.6M customers, Eversource's ability to navigate these dynamics will shape its role in the region's grid modernization efforts.
What we're watching
- Regulatory Pushback
- Whether Eversource's legal challenges and 11.39% ROE proposal can reverse or mitigate FERC's rate cut.
- Earnings Trajectory
- The pace at which transmission investments and rate increases can offset regulatory headwinds and sustain 5–7% EPS growth.
- Strategic Priorities
- How the Aquarion sale and offshore wind projects (Revolution Wind, South Fork Wind) factor into long-term capital allocation.
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