Eversource Energy said it is maintaining its financial outlook and plans to file a major rate case for Aquarion Water Co., days after Connecticut regulators’ unanimous rejection of the utility’s proposed $2.4 billion sale of the water company.
Meantime, the Boston and Hartford-based utility reaffirmed its 2025 earnings guidance of $4.72 to $4.80 per share and its projected 5% to 7% compound annual earnings growth rate, according to a statement issued late Friday by Executive Vice President and Chief Financial Officer John Moreira.
The company said it had prepared for alternative outcomes and taken steps to strengthen its financial position ahead of the decision, including issuing common equity earlier this year combined with $600 million in parent company debt.
“Eversource Energy remains in a strong financial position and we have ample tools in our toolbox to manage our capital structure and liquidity effectively,” Moreira said.
The Public Utilities Regulatory Authority voted last week to deny the proposed sale of Aquarion — Connecticut’s largest water utility, serving about 695,000 customers in 59 communities — to a newly created quasi-public authority modeled on the South Central Connecticut Regional Water Authority.
In a 33-page ruling, PURA commissioners found that the governance structure of the proposed Aquarion Water Authority failed to meet state standards for managerial suitability, citing irreconcilable fiduciary conflicts for board members who would have overseen both entities.
The deal, which included $1.6 billion in cash and $800 million in net debt, would have transferred Aquarion from publicly traded Eversource to the nonprofit Aquarion Water Authority. The application projected annual rate increases of 6.5% to 8.35% through 2035.
Eversource said it is evaluating regulatory and legal remedies following what it called a “thoughtful review” of PURA’s decision. The company noted that PURA is transitioning from leadership changes and reaching decisions in dockets where the new chairman, as the only lawyer on the commission, is recused.
Interim PURA Chairman Thomas Wiehl abstained from Wednesday’s vote because of his former role at the state Office of Consumer Counsel, which opposed the deal.
Former PURA Chair Marissa Gillett resigned in October after a turbulent five-year tenure.
Eversource said it expects to submit an Aquarion rate case early next year in the range of $60 million to $70 million, with new rates anticipated before the end of 2026. The Bridgeport-based water company has been part of Eversource since 2017.
“Aquarion remains a high-quality, well-managed utility with a strong reputation for operational excellence that stands as a valued part of the Eversource organization,” Moreira said.
Eversource’s share price was trading at $65.20 as of 11:22 a.m. Monday morning, down 13% from its closing price of $74.54 on Nov. 18 — the day before PURA’s decision was announced.
