Eversource Energy increased its liability for offshore wind project costs by $285 million Tuesday, citing construction delays and rising expenses tied to projects it sold last year to Global Infrastructure Partners.
The utility said it expects a $210 million federal tax benefit that will partially offset the liability, resulting in an after-tax charge of $75 million, or 20 cents per share, in the third quarter of 2025.
The increased costs stem from the Revolution Wind project, which Eversource sold to GIP along with the South Fork Wind project on Sept. 30, 2024. Under the sale agreement, Eversource remains responsible for certain post-closing cost adjustments.
Eversource recorded an initial $365 million liability when the sale closed. That amount dropped to $296 million by June 30, 2025, after the company made payments throughout the year.
With the additional $285 million liability announced Tuesday, and the offsetting tax asset of $210 million, there is a net $75 million increase in expected settlement obligation with GIP, Eversource said.
The company attributed the cost increases to several factors, including higher insurance expenses, tariff impacts, construction cost increases from damage to a turbine installation vessel and expenses related to a federal stop-work order.
The Bureau of Ocean Energy Management issued the stop-work order on Aug. 22, halting all offshore construction activities on Revolution Wind through Sept. 22. A federal judge ordered the stop-work order to be lifted.
Revolution Wind, which is more than 80% complete, is designed to generate 704 megawatts of electricity for Rhode Island and Connecticut. South Fork Wind, the smaller 132-megawatt project, entered service in 2024.
The utility also narrowed its 2025 earnings guidance, projecting non-GAAP recurring earnings of $4.72 to $4.80 per share, compared with its previous range of $4.67 to $4.82 per share.
The company said it continues to review its obligations with GIP and may adjust the liability as Revolution Wind completes construction.
Eversource exited the offshore wind business entirely with the sale to GIP, refocusing on its regulated utility operations in Connecticut, Massachusetts and New Hampshire.