🔒Eversource CEO ‘resisting’ data centers in New England, citing customer costs

Governors and state lawmakers aren’t the only ones pushing back against data centers. The region’s top utility executive is, too. Speaking on Eversource Energy’s first-quarter earnings call, CEO Joe Nolan told investors he is “resisting data centers” in New England, arguing the projects offer “no value” to customers and would drive energy costs higher. The Hartford-based utility’s stance comes as demand for data centers surges nationwide, fueled by rapid growth in artificial intelligence, cloud computing and digital services that require massive amounts of electricity. Their proliferation, however, has also sparked pushback from some policymakers, utilities and community groups concerned about rising energy demand, higher electric rates and strain on power grids and other infrastructure. In Connecticut, lawmakers this session debated proposals to eliminate tax incentives for data centers and require large new power users, including data centers, to provide their own electricity generation instead of relying on the state’s electric grid. Nolan’s comments came as he and Chief Financial Officer John Moreira walked analysts through Eversource’s strategy, which is built around adding new generation, expanding regional gas infrastructure and resolving several long-running regulatory matters. Nolan pointed to roughly 2,600 megawatts of new clean energy resources coming online to help moderate prices for the regional grid. The list includes 1,200 megawatts from the New England Clean Energy Connect transmission line — which carries hydroelectric power from Canada to New England — along with 704 megawatts from the Revolution Wind offshore project and more than 800 megawatts from Vineyard Wind 1. Nolan offered an upbeat read on Connecticut’s regulatory climate, calling recent activity at the Public Utilities Regulatory Authority a “very positive turnaround” after years of contentious proceedings. He said PURA has been issuing fair decisions as Eversource works through a backlog of cases. Gov. Ned Lamont in October overhauled the PURA board, naming Thomas Wiehl as chair to replace Marissa Gillett, who resigned amid lawsuits filed by Eversource and United Illuminating. He also appointed three other commissioners to fill previously vacant seats — Holly Cheeseman, Janice Beecher and Everett Smith. In response to an investor question, Nolan declined to take a stance on performance-based ratemaking — a framework that has been debated in the state for years and was a hallmark of Gillett’s PURA tenure. “I’m not going to go poke the bear and start to talk about PBR right now,” Nolan said, deflecting to other priorities. Eversource plans to file a letter of intent for a rate case with PURA later this month, with a final decision expected by mid-2027 and earnings impacts extending into 2028, company officials said. Eversource also disclosed it is pursuing a roughly $1.5 billion storm cost securitization in Connecticut, as it seeks to recover restoration costs from catastrophic storms that accumulated over six years. On the proposed sale of Aquarion Water Co., Nolan said Eversource is now waiting out the second appeal period at PURA, which closes June 14. The agency approved the sale earlier this year and rejected a motion for reconsideration, leaving the appeal window as the final hurdle before the company can move toward closing the deal. Eversource expects to receive cash proceeds from the Aquarion sale in 2027. Meantime, Eversource reported first-quarter net income of $606.8 million, up from $550.8 million in the year-ago period. The natural gas distribution segment delivered the biggest year-over-year improvement, with earnings climbing to $295.3 million from $218.4 million following rate increases that took effect Nov. 1. The company reaffirmed a long-term annual earnings growth target of 5% to 7% through 2030 and told investors it expects growth to reach the upper half of that range by 2028.