Eversource Energy
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EVERSOURCE ENERGY AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
PART I
Item 1. Business
Please refer to the Glossary of Terms for definitions of defined terms and abbreviations used in this combined Annual Report on Form 10-K.
Eversource Energy (Eversource), headquartered in Boston, Massachusetts and Hartford, Connecticut, is a public utility holding company subject to regulation by the Federal Energy Regulatory Commission (FERC) under the Public Utility Holding Company Act of 2005. We are engaged primarily in the energy delivery business through the following wholly-owned utility subsidiaries:
•The Connecticut Light and Power Company (CL&P), a regulated electric utility that serves residential, commercial and industrial customers in parts of Connecticut;
•NSTAR Electric Company (NSTAR Electric), a regulated electric utility that serves residential, commercial and industrial customers in parts of eastern and western Massachusetts and owns solar power facilities, and its wholly-owned subsidiary Harbor Electric Energy Company (HEEC), also a regulated electric utility that distributes electric energy to its sole customer;
•Public Service Company of New Hampshire (PSNH), a regulated electric utility that serves residential, commercial and industrial customers in parts of New Hampshire;
•NSTAR Gas Company (NSTAR Gas), a regulated natural gas utility that serves residential, commercial and industrial customers in parts of Massachusetts;
•Eversource Gas Company of Massachusetts (EGMA), a regulated natural gas utility that serves residential, commercial and industrial customers in parts of Massachusetts;
•Yankee Gas Services Company (Yankee Gas), a regulated natural gas utility that serves residential, commercial and industrial customers in parts of Connecticut; and
•Aquarion Company (Aquarion), a utility holding company that owns five separate regulated water utility subsidiaries and collectively serves residential, commercial, industrial, and municipal and fire protection customers in parts of Connecticut, Massachusetts and New Hampshire. For information regarding the sale status of Aquarion, regulatory denial and subsequent appeal, see "Business Development and Capital Expenditures – Aquarion Sale Status and Regulatory Denial" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
CL&P, NSTAR Electric and PSNH also serve New England customers through Eversource's electric transmission business. Along with NSTAR Gas, EGMA and Yankee Gas, each is doing business as Eversource Energy in its respective service territory.
Eversource, CL&P, NSTAR Electric and PSNH each report their financial results separately. We also include information in this report on a segment basis for Eversource. Eversource has four reportable segments: electric distribution, electric transmission, natural gas distribution and water distribution. These segments represent substantially all of Eversource's total consolidated revenues. CL&P, NSTAR Electric and PSNH do not report separate business segments.
Eversource’s previous offshore wind business included 50 percent ownership interests in each of North East Offshore and South Fork Class B Member, LLC. In the third quarter of 2024, Eversource sold its interest in these entities, and in doing so, sold its interests in the Revolution Wind project, the South Fork Wind project, and the Sunrise Wind project. Eversource’s current offshore wind business is now comprised only of a noncontrolling tax equity investment in South Fork Wind. For more information, see Note 13G, "Commitments and Contingencies – Offshore Wind Sale and Contingent Liability," in the accompanying Item 8, Financial Statements and Supplementary Data.
ELECTRIC DISTRIBUTION SEGMENT
Eversource's electric distribution segment consists of the distribution businesses of CL&P, NSTAR Electric and PSNH, which are engaged in the distribution of electricity to retail customers in Connecticut, Massachusetts and New Hampshire, respectively, and the solar power facilities of NSTAR Electric.
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ELECTRIC DISTRIBUTION – CONNECTICUT – THE CONNECTICUT LIGHT AND POWER COMPANY
CL&P's distribution business consists primarily of the purchase, delivery and sale of electricity to its residential, commercial and industrial customers. As of December 31, 2025, CL&P furnished retail franchise electric service to approximately 1.32 million customers in 157 cities and towns in Connecticut. CL&P does not own any electric generation facilities.
Rates
CL&P is subject to regulation by the Connecticut Public Utilities Regulatory Authority (PURA), which, among other things, has jurisdiction over rates, certain dispositions of property and plant, mergers and consolidations, issuances of long-term securities, standards of service and construction and operation of facilities. CL&P's present general rate structure consists of various rate and service classifications covering residential, commercial and industrial services.
Under Connecticut law, all of CL&P's customers are entitled to choose their energy suppliers, while CL&P remains their electric distribution company. For those customers who do not choose a competitive energy supplier, CL&P purchases power on behalf of, and passes the related cost, without mark-up, through to those customers under standard service (SS) rates for customers with less than 500 kilowatts of demand (residential customers and small and medium commercial and industrial customers), and supplier of last resort service (LRS) rates for customers with 500 kilowatts or more of demand (larger commercial and industrial customers). CL&P charges customers only the amount that it pays generators for producing electricity and does not earn a return on the cost of electricity.
CL&P's retail rates include an energy supply component and a delivery service component, which includes distribution, transmission, conservation, renewable energy programs and other public benefit charges that are assessed on all customers. The rates established by PURA for CL&P, which are grouped by the customer bill components, are comprised of the following:
Supply: Cost of electricity from suppliers based on competitive procurements.
•An electric generation service charge, which recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to competitive energy suppliers. The generation service charge is adjusted periodically and reconciled annually in accordance with the policies and procedures of PURA, with any differences refunded to, or recovered from, customers.
Local Delivery: Cost to build, maintain, repair and operate the distribution grid, including the poles, lines, and meters that deliver power from the substation. It also includes the cost of resiliency and reliability improvements.
•A distribution charge, which includes a fixed customer charge and a demand and/or energy charge to collect the costs of building and expanding the infrastructure to deliver electricity to customers, as well as ongoing operating costs to maintain the infrastructure.
•A revenue decoupling adjustment that reconciles annual base distribution rate recovery amounts recovered from customers to the pre-established level of baseline distribution delivery service revenue requirement approved by PURA.
•An Electric System Improvements (ESI) charge, which collects the costs of building and expanding the infrastructure to deliver electricity to customers above the level recovered through the distribution charge. The ESI also recovers costs associated with CL&P’s system resiliency program. The ESI is adjusted periodically and reconciled annually in accordance with the policies and procedures of PURA, with any differences refunded to, or recovered from, customers. In 2023, the state of Connecticut enacted a law that prohibits CL&P’s ESI capital tracking mechanism from being reauthorized in the next general distribution proceeding. The ESI will therefore remain in place until base distribution rates are adjusted in CL&P’s next general distribution rate proceeding.
•A Competitive Transition Assessment (CTA) charge, assessed to recover stranded costs associated with electric industry restructuring such as various IPP contracts. The CTA is reconciled annually to actual costs incurred and reviewed by PURA, with any difference refunded to, or recovered from, customers.
Public Benefits: Cost to support energy programs mandated by the state and federal government for financial assistance and energy efficiency programs, purchasing renewable and carbon-free electricity, and funding solar and electric vehicle incentives.
•A Federally Mandated Congestion Charge (FMCC), which recovers any costs imposed by the FERC as part of the New England Standard Market Design, including locational marginal pricing, locational installed capacity payments, any costs approved by PURA to reduce these charges, as well as other costs approved by PURA. These costs include costs associated with ISO-NE, costs to avoid congestion on the transmission system, purchase contracts with zero-carbon energy generators (including the Millstone and Seabrook nuclear contracts) and with renewable energy generators, costs for capacity and gas peaker plants, renewable energy credits, and other initiatives required by state law.
The non-bypassable component of the FMCC is adjusted periodically and reconciled annually in accordance with the policies and procedures of the PURA, with any differences refunded to, or recovered from, customers.
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CL&P is required by both state legislation and regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered in 2019. CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs. The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the FMCC rate. CL&P does not earn any return from these PPAs.
•A Systems Benefits Charge (SBC), established to fund expenses associated with various hardship and low-income programs. The SBC is reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers.
•A Renewable Energy Investment Charge, which is used to promote investment in renewable energy sources. Amounts collected by this charge are deposited into the Connecticut Clean Energy Fund and administered by the Connecticut Green Bank.
•A Conservation Adjustment Mechanism (CAM) charge established to implement cost-effective energy conservation programs and market transformation initiatives. The CAM charge is reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers through an approved adjustment to the following year’s energy conservation spending plan budget.
Transmission: Cost to maintain high voltage towers and lines, including building, maintaining and operating the regional transmission system that brings electricity from power generators to the local distribution system.
•A transmission charge that recovers the cost of transporting electricity over high-voltage lines from generating plants to substations, including costs allocated by ISO-NE to maintain the wholesale electric market. The transmission charge is adjusted periodically and reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers.
A summary of CL&P's retail revenues, grouped by customer bill rate components described above, are as follows:
| For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||
CL&P (Millions of Dollars) | 2025 | 2024 | Increase/ (Decrease) | Return Included in Customer Rates | ||||||||||||||||||||||||||||||
| Retail Tariff Sales Revenues | Amount | % | Amount | % | ||||||||||||||||||||||||||||||
| Supply | $ | |||||||||||||||||||||||||||||||||
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Financial statements
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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
EVERSOURCE ENERGY AND SUBSIDIARIES
The following discussion and analysis should be read in conjunction with our consolidated financial statements and related combined notes included in this combined Annual Report on Form 10-K. References in this combined Annual Report on Form 10-K to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The consolidated financial statements of Eversource, NSTAR Electric and PSNH and the financial statements of CL&P are herein collectively referred to as the "financial statements." Our discussion of fiscal year 2025 compared to fiscal year 2024 is included herein. Unless expressly stated otherwise, for discussion and analysis of fiscal year 2023 items and of fiscal year 2024 compared to fiscal year 2023, please refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our combined 2024 Annual Report on Form 10-K, which is incorporated herein by reference.
Refer to the Glossary of Terms included in this combined Annual Report on Form 10-K for abbreviations and acronyms used throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations.
The only common equity securities that are publicly traded are common shares of Eversource. Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our earnings and EPS excluding losses associated with our previous offshore wind investments, a loss on the pending sale of the Aquarion water distribution business, and a loss on the disposition of land that was initially acquired to construct the Northern Pass Transmission project and was subsequently abandoned. EPS by business is also a non-GAAP financial measure and is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in our assets and liabilities as a whole.
We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our results without including these items. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the impacts of the losses associated with our previous offshore wind investments, the loss on the pending sale of the Aquarion water distribution business, and the loss on the disposition of land associated with an abandoned project are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.
Financial Condition and Business Analysis
Executive Summary
Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and EGMA (natural gas utilities) and Aquarion (water utilities). Eversource is organized into the electric distribution, electric transmission, natural gas distribution, and water distribution reportable segments.
The following items in this executive summary are explained in more detail in this combined Annual Report on Form 10-K:
Earnings Overview and Future Outlook:
•We earned $1.69 billion, or $4.56 per share, in 2025, compared with $811.7 million, or $2.27 per share, in 2024. Our 2025 results include an aggregate, net after-tax charge resulting from our previous offshore wind investments of $75.0 million, or $0.20 per share. Our 2024 results include an aggregate, net after-tax loss on the sale of our offshore wind investments of $524.0 million, or $1.47 per share. These 2025 and 2024 charges were recorded within Eversource Parent and Other Companies. Our 2024 results also include an after-tax loss resulting from the expected sale of Aquarion of $298.3 million, or $0.83 per share. This 2024 charge was recorded within the Water Distribution segment. Excluding these charges, our 2025 non-GAAP earnings were $1.77 billion, or $4.76 per share, and our 2024 non-GAAP earnings of $1.63 billion, or $4.57 per share.
•We project that we will earn within a 2026 earning guidance range of between $4.80 per share and $4.95 per share. We also project that our long-term EPS growth rate through 2030 will be in a 5 to 7 percent range, using 2025 non-GAAP EPS of $4.76 per share as the base year.
Liquidity:
•Cash flows provided by operating activities totaled $4.11 billion in 2025, compared with $2.16 billion in 2024. Investments in property, plant and equipment totaled $4.16 billion in 2025, compared with $4.48 billion in 2024.
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•Cash totaled $135.4 million as of December 31, 2025, compared with $26.7 million as of December 31, 2024. Our available borrowing capacity under our commercial paper programs totaled $1.12 billion as of December 31, 2025.
•In 2025, we issued $2.94 billion of new long-term debt and we repaid $1.40 billion of long-term debt.
•In 2025, we paid dividends totaling $3.01 per common share, compared with dividends of $2.86 per common share in 2024. Our quarterly common share dividend payment was $0.7525 per share in 2025, as compared to $0.715 per share in 2024. On January 27, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on March 31, 2026 to shareholders of record as of March 5, 2026.
•On May 30, 2025, we entered into an equity distribution agreement pursuant to which we may offer and sell up to $1.2 billion of our common shares from time to time through an “at-the-market” (ATM) equity offering program. In 2025, we issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs.
•We project to make capital expenditures of $26.51 billion from 2026 through 2030, of which we expect $11.24 billion to be in our electric distribution segment, $6.80 billion to be in our natural gas distribution segment, and $7.24 billion to be in our electric transmission segment. We also project to invest $1.23 billion in information technology and facilities upgrades and enhancements.
Regulatory Developments:
•On July 25, 2025, the NHPUC issued its decision in the PSNH distribution rate case and approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase that went into effect in August 2024. The order established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH’s capital structure. The NHPUC approved an alternative regulatory framework that authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028.
•On November 3, 2025, EGMA, NSTAR Electric, and the Massachusetts Office of the Attorney General reached a joint settlement agreement that resolved outstanding issues in multiple open Pension Adjustment Mechanism (PAM) dockets and open Resiliency Tree Work (RTW) dockets at NSTAR Electric and allows recovery of transaction and integration costs related to Eversource’s acquisition of EGMA. The settlement agreement was approved by the DPU on December 1, 2025. The settlement resulted in a net pre-tax benefit to earnings of $64.8 million on the Eversource income statement in the fourth quarter of 2025.
•On November 5, 2025, PURA issued a final decision in the Yankee Gas distribution rate case that included a distribution rate increase of $95.7 million, which excluded a previously recorded non-firm margin rate credit of $13.5 million to be refunded annually over three years, effective November 1, 2025. The final decision also established an authorized net regulatory ROE of 9.32 percent and a 53 percent common equity ratio for Yankee Gas’ capital structure. Yankee Gas filed motions to request PURA reconsider the disallowances of certain capitalized overhead costs, certain computational errors, and other issues identified in its final decision. A final decision on the reconsideration is expected from PURA by March 15, 2026.
•On November 19, 2025, PURA denied an application to approve the sale of the Aquarion Water Company, finding that the transaction did not meet managerial suitability and responsibility requirements due to concerns with governance and oversight structure over Aquarion and its consumer advocate. On January 15, 2026, the Connecticut Superior Court issued a decision on the appeal of PURA’s denial, sustaining the appeal and remanding back to PURA. A final decision is expected by PURA on March 25, 2026.
•On December 30, 2025, NSTAR Gas and the Massachusetts Office of the Attorney General reached a joint settlement agreement that allowed for the reinstatement of a rate base reset of $45.0 million increase to base distribution rates effective January 1, 2026 and for continuation of NSTAR Gas’ PBR program through November 1, 2030. The settlement agreement also required NSTAR Gas to provide credits to customers and a concession to the Office of the Attorney General, among other items. The DPU approved the settlement agreement on January 16, 2026. The settlement agreement resulted in a pre-tax charge to earnings of $12.2 million in the fourth quarter of 2025.
•On January 30, 2026, the New Hampshire Department of Energy filed a notice of appeal with the New Hampshire Supreme Court challenging certain aspects of the PSNH distribution rate case decision approved by the NHPUC on July 25, 2025, including the alternative regulatory framework and the revenue requirement. On February 6, 2026, the Office of the Consumer Advocate filed a notice of cross-appeal challenging other aspects of the rate case decision. Eversource is currently evaluating the appeals.
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Earnings Overview
Consolidated: Below is a summary of our earnings/(loss) by business, which also reconciles the non-GAAP financial measures of consolidated non-GAAP earnings and EPS, as well as EPS by business, to the most directly comparable GAAP measures of consolidated Net Income/(Loss) Attributable to Common Shareholders and diluted EPS.
| For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| (Millions of Dollars, Except Per Share Amounts) | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||||||
| Net Income/(Loss) Attributable to Common Shareholders (GAAP) | $ | 1,692.4 | $ | 4.56 | $ | 811.7 | $ | 2.27 | $ | (442.2) | $ | (1.26) | |||||||||||||||||||||||
| Regulated Companies (Non-GAAP) | $ | 1,848.5 | $ | 4.98 | $ | 1,691.9 | $ | 4.73 | $ | 1,509.3 | $ | 4.31 | |||||||||||||||||||||||
| Eversource Parent and Other Companies (Non-GAAP) | (81.1) | (0.22) | (57.9) | (0.16) | 8.4 | 0.03 | |||||||||||||||||||||||||||||
| Non-GAAP Earnings | $ | 1,767.4 | $ | 4.76 | $ | 1,634.0 | $ | 4.57 | $ | 1,517.7 | $ | 4.34 | |||||||||||||||||||||||
Losses on Offshore Wind (after-tax) (1) | (75.0) | (0.20) | (524.0) | (1.47) | (1,953.0) | (5.58) | |||||||||||||||||||||||||||||
Loss on Pending Sale of Aquarion (after-tax) (2) | — | — | (298.3) | (0.83) | — | — | |||||||||||||||||||||||||||||
Land Abandonment Loss and Other Charges (after-tax) (3) | — | — | — | — | (6.9) | (0.02) | |||||||||||||||||||||||||||||
| Net Income/(Loss) Attributable to Common Shareholders (GAAP) | $ | 1,692.4 | $ | 4.56 | $ | 811.7 | $ | 2.27 | $ | (442.2) | $ | (1.26) | |||||||||||||||||||||||
(1) In 2025, we recorded a pre-tax charge of $284 million associated with increasing our offshore wind contingent liability for expected future payments under the terms of the 2024 sale agreement with Global Infrastructure Partners (GIP) for the South Fork Wind and Revolution Wind projects, offset by expected tax benefits from the offshore wind sale of $209 million. In 2024, we recorded a pre-tax loss on the sales of our offshore wind investments of $464 million and a $60 million increase in income tax expense, resulting in an after-tax loss of $524 million. In 2023, we recorded impairment charges resulting from the expected sales of these offshore wind investments. For further information, see the "Offshore Wind Sale and Contingent Liability" section below included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
(2) The 2024 loss includes an impairment charge of $297 million to write down the carrying value of the water business to fair value resulting from the expected sale of Aquarion, as well as transaction costs. For further information, see "Business Development and Capital Expenditures – Aquarion Sale Status and Regulatory Denial" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
(3) The 2023 charges primarily include a loss on the disposition of abandoned land intended to be used for the cancelled Northern Pass Transmission project.
The impact of higher shares outstanding resulted in $0.17 earnings per share dilution in 2025, as compared to 2024.
Regulated Companies: Our regulated companies comprise the electric distribution, electric transmission, natural gas distribution, and water distribution segments. A summary of our segment earnings and EPS is as follows:
| For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| (Millions of Dollars, Except Per Share Amounts) | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||||||
| Net Income - Regulated Companies (GAAP) | $ | 1,848.5 | $ | 4.98 | $ | 1,393.6 | $ | 3.90 | $ | 1,509.3 | $ | 4.31 | |||||||||||||||||||||||
| Electric Distribution | $ | 667.1 | $ | 1.80 | $ | 631.7 | $ | 1.77 | $ | 608.0 | $ | 1.74 | |||||||||||||||||||||||
| Electric Transmission | 776.7 | 2.09 | 724.6 | 2.03 | 643.4 | 1.84 | |||||||||||||||||||||||||||||
| Natural Gas Distribution | 360.5 | 0.97 | 291.0 | 0.81 | 224.8 | 0.64 | |||||||||||||||||||||||||||||
| Water Distribution, excluding Loss on Pending Sale (Non-GAAP) | 44.2 | 0.12 | 44.6 | 0.12 | 33.1 | 0.09 | |||||||||||||||||||||||||||||
| Net Income - Regulated Companies (Non-GAAP) | $ | 1,848.5 | $ | 4.98 | $ | 1,691.9 | $ | 4.73 | $ | 1,509.3 | $ | 4.31 | |||||||||||||||||||||||
| Loss on Pending Sale of Aquarion (after-tax) | — | — | (298.3) | (0.83) | — | — | |||||||||||||||||||||||||||||
| Net Income - Regulated Companies (GAAP) | $ | 1,848.5 | $ | 4.98 | $ | 1,393.6 | $ | 3.90 | $ | 1,509.3 | $ | 4.31 | |||||||||||||||||||||||
Our electric distribution segment earnings increased $35.4 million in 2025, as compared to 2024, due primarily to higher revenues from base distribution rate increases at PSNH effective August 1, 2024 and August 1, 2025 and at NSTAR Electric effective January 1, 2025 and from CL&P's capital tracking mechanism due to increased electric system improvements. Earnings also benefited from a lower effective tax rate and the impact of the PSNH rate case decision in July 2025. Those earnings increases were partially offset by higher interest expense, higher operations and maintenance expense, higher property tax expense, higher depreciation expense, and a charge for customer credits at NSTAR Electric as a result of the joint settlement agreement approved in Massachusetts on December 1, 2025.
Our electric transmission segment earnings increased $52.1 million in 2025, as compared to 2024, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure and lower interest expense.
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Our natural gas distribution segment earnings increased $69.5 million in 2025, as compared to 2024, due primarily to higher revenues from base distribution rate increases effective November 1, 2024 and November 1, 2025 at both EGMA and NSTAR Gas, effective November 1, 2025 at Yankee Gas, and from capital tracking mechanisms due to continued investments in natural gas infrastructure. Those earnings increases were partially offset by higher operations and maintenance expense, higher depreciation expense, higher interest expense, the impact of the NSTAR Gas settlement agreement in December 2025, higher property tax expense, and the impact of the Yankee Gas rate case decision in November 2025.
Our water distribution segment recognized a $297 million impairment charge in 2024 as a result of writing down the carrying value of the business to fair value due to the expected sale of Aquarion. Excluding the 2024 impairment charge and transaction costs associated with the expected sale, water distribution segment earnings decreased $0.4 million in 2025, as compared to 2024.
Eversource Parent and Other Companies: Eversource parent and other companies’ losses decreased $425.8 million in 2025, as compared to 2024, due primarily to an after-tax charge of $524.0 million recorded in 2024 resulting from the sale of Eversource parent’s offshore wind investments, as compared to an aggregate net after-tax charge of $75.0 million recorded in 2025 resulting from an increase to the offshore wind contingent liability, net of tax benefits associated with the tax losses on the sales of its offshore wind investments.
Excluding these charges, Eversource parent and other companies losses increased $23.2 million due to higher interest expense from the absence in 2025 of capitalized interest as a result of the sale of our offshore wind projects in the third quarter of 2024 and higher interest costs from short-term debt, partially offset by the allowed recovery of previously expensed acquisition-related and integration costs of EGMA as part of the joint settlement agreement approved in Massachusetts on December 1, 2025.
Offshore Wind Sale and Contingent Liability: On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted. On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP. Eversource recorded a contingent liability relating to expected future payments to GIP as part of the sale of the South Fork Wind and Revolution Wind projects. As part of the definitive agreement with GIP, Eversource is responsible for certain post-closing purchase price adjustments. This obligation includes an expected cost overrun sharing obligation, an expected obligation to maintain GIP’s internal rate of return, and an obligation for other future costs prior to commercial operation. Eversource recognized an aggregate after-tax loss on the sales of its offshore wind investments of $524 million, which included a net $60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses, in 2024.
In the third quarter of 2025, Eversource received an updated report from GIP on the construction status of Revolution Wind, which included revised projections of total construction costs. The revised cost projections reflected known and quantifiable cost increases, including those associated with the impacts of damage to the wind turbine installation vessel, insurance costs, tariff impacts, and costs incurred as a result of the stop-work order for Revolution Wind received on August 22, 2025 from the Bureau of Ocean Energy Management that halted all offshore wind construction activities through September 22, 2025. Based on those developments, Eversource recognized a pre-tax charge of $284.0 million in the third quarter of 2025 as a result of the aggregate impact of these items to increase the liability for purchase price adjustments associated with the offshore wind projects.
Payments made in 2025 reduced the contingent liability and are reflected within investing activities on the statement of cash flows. These payments included cost overruns for the Revolution Wind project paid to GIP, insurance payments, and the purchase price adjustment payment related to the South Fork Wind project paid to GIP.
Eversource continually evaluates the contingent liability and will reassess the balance as new information becomes available. Based on most recent updates from GIP on the construction status of Revolution Wind, factoring in estimated costs incurred as a result of a second stop-work order for Revolution Wind received on December 22, 2025 and removed on January 12, 2026, revised insurance costs, and other information currently available, Eversource believes that the contingent liability balance as of December 31, 2025 is a reasonable estimate to cover this contingent liability for purchase price adjustments. As of December 31, 2025, the contingent liability totaled $448.2 million and is recorded as a current liability on Eversource’s balance sheet, based upon the timing of expected payments to GIP. The contingent liability totaled $365.0 million as of December 31, 2024.
Eversource relies on information that it receives from the project owners for the construction-related, delay-related, and insurance-related costs of Revolution Wind. Eversource uses its judgment to adjust, as needed, its expected obligations to GIP while construction of Revolution Wind is completed.
New information or future developments that arise as the construction of Revolution Wind progresses will necessitate a reassessment of the estimated liability to GIP. The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted.
It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, it could result in additional losses and increases to the offshore wind contingent liability, which could be material. The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.
Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events. Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the timing and extent of construction delays, which would impact the economics associated with the purchase price adjustment, and the eligibility for federal investment tax credits for Revolution Wind at a value lower than assumed and included in the purchase
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price. The purchase price of Revolution Wind included the sales value related to a 40 percent level of federal investment tax credits. A change in the expected value or qualification of investment tax credit adders could result in a significant loss in a future period.
Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.
Eversource recognized an aggregate, net after-tax charge of $75.0 million, or $0.20 per share, in 2025 resulting from our previous offshore wind investments. This charge consists of the pre-tax $284 million increase to the offshore wind contingent liability, offset by $209 million of tax benefits associated with tax losses on the sale of the South Fork Wind and Revolution Wind projects that Eversource expects to realize.
Liquidity
Sources and Uses of Cash: Eversource’s regulated business is capital intensive and requires considerable capital resources. Eversource’s regulated companies’ capital resources are provided by cash flows generated from operations, short-term borrowings, long-term debt issuances, capital contributions from Eversource parent, and existing cash, and are used to fund their liquidity and capital requirements. Eversource’s regulated companies typically maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements. Short-term borrowings are also used as a bridge to long-term debt financings. The levels of short-term borrowing may vary significantly over the course of the year due to the impact of fluctuations in cash flows from operations (including timing of storm costs and regulatory recoveries), dividends paid, capital contributions received and the timing of long-term debt financings.
Eversource, CL&P, NSTAR Electric and PSNH each uses its available capital resources to fund its respective construction expenditures, meet debt requirements, pay operating costs, including storm-related costs, pay dividends, and fund corporate obligations. Eversource's regulated companies recover their electric, natural gas and water distribution construction expenditures as the related project costs are depreciated over the life of the assets. This impacts the timing of the revenue stream designed to fully recover the total investment including a return on the equity and debt used to finance the investments. Eversource's regulated companies spend a significant amount of cash on capital improvements and construction projects that have a long-term return on investment and recovery period. These factors have resulted in current liabilities exceeding current assets by $2.73 billion, $268.6 million, $9.0 million and $19.6 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively, as of December 31, 2025.
We expect the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with our existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.
As of December 31, 2025, $1.39 billion of Eversource's long-term debt, including $1.00 billion at Eversource parent and $300.0 million at NSTAR Electric, matures within the next 12 months. Eversource, with its current credit ratings, has several options available in the financial markets to repay or refinance these maturities with the issuance of new long-term debt. Eversource, CL&P, NSTAR Electric and PSNH will reduce their short-term borrowings with operating cash flows or with the issuance of new long-term debt, determined by considering capital requirements and maintenance of Eversource's credit rating and profile.
Cash totaled $135.4 million as of December 31, 2025, compared with $26.7 million as of December 31, 2024.
Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2025, the revolving credit facility’s termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.
NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility. Effective October 11, 2025, the revolving credit facility’s termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.
The amount of borrowings outstanding and available under the commercial paper programs were as follows:
| Borrowings Outstanding as of December 31, | Available Borrowing Capacity as of December 31, | Weighted-Average Interest Rate as of December 31, | |||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||
| Eversource Parent Commercial Paper Program | $ | 1,280.0 | $ | 1,538.0 | $ | 720.0 | $ | 462.0 | 3.98 | % | 4.76 | % | |||||||||||||||||||||
| NSTAR Electric Commercial Paper Program | 245.4 | 504.8 | 404.6 | 145.2 | 3.87 | % | 4.55 | % | |||||||||||||||||||||||||
There were no borrowings outstanding on the revolving credit facilities as of December 31, 2025 or 2024.
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CL&P and PSNH have uncommitted line of credit agreements totaling $375 million and $250 million, respectively, all of which will expire in either May 2026, September 2026 or October 2026. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of December 31, 2025.
Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time.
Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of December 31, 2025 and 2024, there were intercompany loans from Eversource parent to PSNH of $49.3 million and $131.1 million, respectively. As of December 31, 2024, there were intercompany loans from Eversource parent to CL&P of $280.0 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Availability under Long-Term Debt Issuance Authorizations: On May 1, 2024, the DPU approved NSTAR Electric’s request for authorization to issue up to $2.40 billion in long-term debt through December 31, 2026. On August 12, 2024, the DPU approved EGMA’s request for authorization to issue up to $325 million in long-term debt through December 31, 2026. On December 18, 2024, the DPU approved NSTAR Gas’ request for authorization to issue up to $475 million in long-term debt through December 31, 2027. On March 26, 2025, PURA approved Yankee Gas’ request for authorization to issue up to $360 million in long-term debt through December 31, 2026. PSNH has utilized its long-term debt authorizations in place with NHPUC. CL&P has no long-term debt authorization remaining with PURA.
Long-Term Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments:
| (Millions of Dollars) | Interest Rate | Issuance/ (Repayment) | Issue Date or Repayment Date | Maturity Date | Use of Proceeds for Issuance/ Repayment Information | ||||||||||||||||||||
| CL&P 2025 Series A First Mortgage Bonds | 4.95 | % | 400.0 | January 2025 | January 2030 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| CL&P 2020 Series A First Mortgage Bonds | 0.75 | % | (400.0) | December 2025 | December 2025 | Paid at maturity | |||||||||||||||||||
| NSTAR Electric Debentures | 4.85 | % | 400.0 | February 2025 | March 2030 | Repaid 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| NSTAR Electric Debentures | 5.20 | % | 400.0 | February 2025 | March 2035 | Repaid 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| NSTAR Electric Debentures | 5.20 | % | 300.0 | October 2025 | March 2035 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| NSTAR Electric Debentures | 3.25 | % | (250.0) | November 2025 | November 2025 | Paid at maturity | |||||||||||||||||||
| PSNH Series Y First Mortgage Bonds | 4.40 | % | 300.0 | June 2025 | July 2028 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| Eversource Parent Series HH Senior Notes | 4.45 | % | 600.0 | October 2025 | December 2030 | Repay Series J bonds at maturity and repaid short-term debt | |||||||||||||||||||
| Eversource Parent Series H Senior Notes | 3.15 | % | (300.0) | January 2025 | January 2025 | Paid at maturity | |||||||||||||||||||
| Eversource Parent Series Q Senior Notes | 0.80 | % | (300.0) | August 2025 | August 2025 | Paid at maturity | |||||||||||||||||||
| NSTAR Gas Series Y First Mortgage Bonds | 4.86 | % | 205.0 | June 2025 | June 2030 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| NSTAR Gas Series Z First Mortgage Bonds | 5.30 | % | 20.0 | June 2025 | June 2035 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| NSTAR Gas Series R First Mortgage Bonds | 2.33 | % | (75.0) | May 2025 | May 2025 | Paid at maturity | |||||||||||||||||||
| Yankee Gas Series Y First Mortgage Bonds | 5.02 | % | 148.0 | July 2025 | January 2031 | Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| Yankee Gas Series Z First Mortgage Bonds | 5.55 | % | 37.0 | July 2025 | July 2035 | Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
| Yankee Gas Series M First Mortgage Bonds | 3.35 | % | (75.0) | September 2025 | September 2025 | Paid at maturity | |||||||||||||||||||
| EGMA Series F First Mortgage Bonds | 4.77 | % | 125.0 | September 2025 | October 2030 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||
Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $43.2 million of RRB principal payments in each of 2025 and 2024, and paid $13.4 million and $14.9 million of interest payments in 2025 and 2024, respectively.
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Common Share Issuances and Equity Distribution Agreement: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an ATM equity offering program. In 2025, Eversource issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas and water. Cash flows provided by operating activities totaled $4.11 billion in 2025, compared with $2.16 billion in 2024. Operating cash flows were favorably impacted by an improvement in regulatory recoveries driven primarily by the timing of collections for CL&P’s non-bypassable FMCC, CL&P’s SBC, energy efficiency costs, wholesale and retail transmission costs, and other regulatory tracking mechanisms. The CL&P non-bypassable FMCC retail rates in effect for 2025 were higher than those set in 2024 and the net Millstone and Seabrook contract cash flows were higher in 2025 as compared to 2024. These higher collections within the non-bypassable FMCC resulted in an improvement to operating cash flows of $428.2 million for the year. Higher collections from CL&P’s SBC mechanism resulted in a cash flow improvement of $113.3 million. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization on the statements of cash flows. Additionally, CL&P received general obligation bond proceeds from the State of Connecticut for the reimbursement of hardship costs and for electric vehicle charging program costs of $107.8 million in 2025, which are reflected in Regulatory Recoveries. Operating cash flows were also favorably impacted by a $321.4 million decrease in cash payments to vendors for storm costs, the timing of cash collections on our accounts receivable, the timing of cash payments made on our accounts payable, a $19.1 million decrease in cost of removal expenditures, and the timing of other working capital items. These favorable impacts were partially offset by an increase in capitalized implementation costs for cloud-based service arrangements and a $21.2 million decrease in income tax refunds received in 2025 as compared to 2024.
In 2025, we paid cash dividends of $1.09 billion and issued non-cash dividends of $23.4 million in the form of treasury shares, totaling dividends of $1.12 billion, or $3.01 per common share. In 2024, we paid cash dividends of $1.00 billion and issued non-cash dividends of $23.5 million in the form of treasury shares, totaling dividends of $1.03 billion, or $2.86 per common share. Our quarterly common share dividend payment was $0.7525 per share in 2025, as compared to $0.715 per share in 2024. On January 27, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on March 31, 2026 to shareholders of record as of March 5, 2026.
Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan.
In 2025, CL&P, NSTAR Electric and PSNH paid $430.0 million, $436.0 million and $175.0 million, respectively, in common stock dividends to Eversource parent.
Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense. In 2025, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $4.16 billion, $867.8 million, $1.56 billion and $537.8 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.
Contractual Obligations: For information regarding our cash requirements from contractual obligations and payment schedules, see Note 9, "Long-Term Debt," Note 10, "Rate Reduction Bonds and Variable Interest Entities," Note 11A, "Employee Benefits - Pension Benefits and Postretirement Benefits Other Than Pension," Note 13, "Commitments and Contingencies," and Note 14, "Leases," to the financial statements.
Estimated interest payments on existing long-term fixed-rate debt are calculated by multiplying the coupon rate on the debt by its scheduled notional amount outstanding for the period of measurement as of December 31, 2025 and are as follows:
| (Millions of Dollars) | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | ||||||||||||||||||||||||||||
| Eversource | $ | 1,214.9 | $ | 1,153.1 | $ | 1,041.4 | $ | 919.7 | $ | 828.8 | $ | 6,540.8 | $ | 11,698.7 | |||||||||||||||||||||
Our commitments to make payments in addition to these contractual obligations include other liabilities reflected on our balance sheets, and guarantees of certain obligations primarily associated with construction of our previously owned offshore wind investments.
For information regarding our projected capital expenditures over the next five years, see "Business Development and Capital Expenditures - Projected Capital Expenditures" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
Credit Ratings: A summary of our current corporate credit ratings and outlooks by S&P, Moody's, and Fitch is as follows:
| S&P | Moody's | Fitch | |||||||||||||||||||||||||||||||
| Current | Outlook | Current | Outlook | Current | Outlook | ||||||||||||||||||||||||||||
| Eversource Parent | BBB+ | Stable | Baa2 | Negative | BBB | Negative | |||||||||||||||||||||||||||
| CL&P | A- | Stable | Baa1 | Stable | A- | Negative | |||||||||||||||||||||||||||
| NSTAR Electric | A- | Stable | A2 | Negative | A- | Negative | |||||||||||||||||||||||||||
| PSNH | A- | Stable | A3 | Stable | A- | Negative | |||||||||||||||||||||||||||
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Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-04 | BUTLER GREGORY B | Executive VP & General Counsel | Sell | -7,000 | $69.88 | -$489,160 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-11-06 10-Q expected by 2026-11-11 (in 73 days)
- ~2027-02-17 10-K expected by 2027-02-26 (in 176 days)
- ~2027-05-07 10-Q expected by 2027-05-12 (in 255 days)
- ~2027-08-03 10-Q expected by 2027-08-08 (in 343 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-08-03 10-Q Quarterly Report
- 2026-07-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-07-01 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-05-07 10-Q Quarterly Report
- 2026-05-06 8-K Earnings Release; Shareholder Vote Results; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-03-31 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2026-02-17 10-K Annual Report
- 2026-02-12 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-01-30 8-K Code of Ethics Changed; Financial Statements and Exhibits
- 2025-12-05 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-11-24 8-K Other Events; Financial Statements and Exhibits
- 2025-11-06 10-Q Quarterly Report
- 2025-11-04 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-10-14 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-08-04 10-Q Quarterly Report