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• Verizon for power and gas delivery in the home.
• Waste Management for essential home utilities like electricity, gas, and water.

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• Electricity Distribution and Transmission: Delivers electricity from generating sources to residential, commercial, and industrial customers.
• Natural Gas Distribution: Provides natural gas service to homes and businesses for heating and other uses.
• Water Distribution: Supplies potable water to customers in specific service areas.

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Joseph R. Nolan, Jr. Chairman, President, and Chief Executive Officer

Mr. Nolan joined Eversource (or its predecessor company, Boston Edison Co.) in 1985 and has held various leadership positions within customer service, government affairs, and corporate relations. He was appointed President and CEO in May 2021, and became Chairman in January 2023. During his tenure as CEO, he oversaw the decision to divest Eversource's offshore wind business and the planned sale of its Aquarion Water Co. subsidiary. Mr. Nolan earned his undergraduate degree in communications and an MBA from Boston College.

John M. Moreira Executive Vice President, Chief Financial Officer, and Treasurer

Mr. Moreira was appointed Executive Vice President, Chief Financial Officer, and Treasurer in May 2022, succeeding Phil Lembo. He has a 22-year tenure with Eversource and its predecessor companies. Prior to his current role, he served as Senior Vice President of the Financial and Regulatory division and Treasurer since 2018. Mr. Moreira holds a Bachelor of Science in Accounting from the University of Massachusetts – Dartmouth and a Master of Business Administration from Curry College.

Paul Chodak III Executive Vice President; Chief Operating Officer

Mr. Chodak has served as Executive Vice President and Chief Operating Officer of Eversource Energy since November 2023. Before joining Eversource, he was Executive Vice President for the Generation division of American Electric Power Co Inc from January 2019 to September 2023, and Executive Vice President for the Utilities division of AEP from January 2017 to December 2018.

Susan Sgroi Executive Vice President - Human Resources; Executive Vice President - Information Technology

Ms. Sgroi has been the Executive Vice President of the Human Resources and Information Technology divisions of Eversource Energy since January 2024. Prior to her role at Eversource, she served as Executive Vice President and Chief Human Resources Officer of Blue Cross and Blue Shield from 2015 to 2023.

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The key risks for Eversource Energy (ES) primarily revolve around regulatory challenges, its financial health due to high debt, and execution risks related to strategic initiatives.

1. Regulatory Environment and Challenges: Eversource Energy operates in a heavily regulated industry, and unfavorable decisions from regulatory bodies, particularly in Connecticut, pose a significant risk to its growth prospects and financial performance. These challenges can impact the company's ability to secure adequate rate increases, recover costs, and earn its allowed return on equity, which in turn can limit investments in infrastructure and affect projected earnings per share (EPS) growth. A notable instance of this risk was the rejection by Connecticut regulators of Eversource's plan to sell its Aquarion water utility business, which was intended to help streamline operations and reduce debt. This regulatory uncertainty can also create investor unease and impact stock valuation.
2. High Debt Levels and Financial Health: Eversource Energy's financial strength has been noted as poor due to its substantial debt levels. The company's high debt-to-equity ratio signals a significant reliance on borrowed capital. The need to refinance this debt, especially in an environment of potentially higher interest rates, could put pressure on the company's EPS and its dividend payout ratio. Strengthening the balance sheet through non-core asset divestments and equity issuance has been a strategic focus for Eversource.
3. Execution Risk and Past Missteps: The company faces execution risk related to its strategic initiatives and capital expenditure plans. Past challenges, such as significant losses from exiting offshore wind investments and the after-tax loss from the Aquarion divestiture, underscore the pressure on management to efficiently execute its current capital plans. These past missteps highlight the importance of effective management in navigating complex projects and transactions to avoid further financial setbacks.

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The clear emerging threat to Eversource Energy (ES) is the increasing adoption of decentralized energy generation, particularly rooftop solar and behind-the-meter battery storage.

This trend allows residential and commercial customers to generate and store their own electricity, significantly reducing their reliance on grid-supplied power from traditional utilities like Eversource. As costs for solar panels and battery storage continue to decline and adoption rates grow in Eversource's service territories (Massachusetts, Connecticut, New Hampshire), it directly threatens the utility's traditional revenue model, which is based on volumetric sales of electricity. This phenomenon can lead to "load defection," where customers consume less electricity from the grid, thereby impacting Eversource's sales volumes and potentially necessitating fundamental changes to rate structures and grid investment recovery.

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Addressable Market Sizes for Eversource Energy's Main Products/Services in New England:

• Electricity Distribution: The New England region, where Eversource operates its electricity distribution services, encompasses 7.5 million retail electricity customers and a population of 15.1 million people. The total annual energy served in New England was 116,719 gigawatt-hours (GWh) in 2024. The wholesale electricity market in New England saw $7 billion in transactions in 2024, with $5.6 billion in energy markets and $1.4 billion in capacity and ancillary services markets. New England's average annual net load is forecasted to increase by more than 11% by 2034.
• Natural Gas Distribution: The addressable market for natural gas distribution in New England includes 2.9 million gas customers. Annual natural gas consumption in the region was 894 billion cubic feet (Bcf) in 2021. Under normal weather conditions, the annual local distribution company (LDC) natural gas demand in New England was projected to be 518,718 billion British thermal units (BBtu) in 2022, increasing to 578,273 BBtu by 2032. Natural gas constituted 32% of the primary energy consumption in New England in 2020 and fuels 40% of the region's power supply.
• Water Distribution: null

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Eversource Energy (ES) is expected to drive future revenue growth over the next two to three years through significant capital investments in its regulated electric transmission and distribution infrastructure, favorable regulatory outcomes leading to rate base increases, and continued strategic focus on grid modernization and the integration of renewable energy sources.

1. Large-Scale Capital Investments in Electric Transmission and Distribution: Eversource Energy is undertaking substantial capital expenditure programs focused on upgrading and modernizing its electric transmission and distribution systems across its service territories in Connecticut, Massachusetts, and New Hampshire. The company plans to invest a total of $24.2 billion across its gas and electric businesses between 2025 and 2029, with a significant portion, nearly $7 billion, allocated to transmission investments and over $10 billion for electric distribution upgrades. These investments are aimed at replacing aging infrastructure, increasing resilience against extreme weather, and enhancing overall reliability. Specifically, in 2025, Eversource is on track to invest nearly $5 billion in infrastructure. These expenditures form the foundation for future rate base growth, a key driver of regulated utility revenue.
2. Rate Base Growth and Favorable Regulatory Approvals: Revenue growth for Eversource is intrinsically linked to its growing rate base, which is supported by ongoing infrastructure investments and subsequent regulatory approvals for rate increases. The company has already seen improved results in its electric distribution segment due to base distribution rate increases in New Hampshire and Massachusetts. Similarly, the natural gas distribution segment has benefited from base distribution rate increases in its Massachusetts gas businesses, effective November 1, 2024, to recover investments in infrastructure. Regulatory frameworks are designed to enable timely cost recovery for these investments, ensuring a predictable revenue stream. Analysts anticipate that supportive regulations and recent favorable rate case outcomes will enhance cost recovery and contribute to more predictable profit margins.
3. Grid Modernization and Renewable Energy Integration: Eversource is strategically focusing on grid modernization, which involves significant investments in smart grid technologies, energy storage, and facilitating the adoption of electric vehicles and heat pumps. This pivot aligns with the growing consumer demand for clean energy and regulatory mandates for decarbonization. While Eversource has exited the offshore wind generation business, its regulated companies are building the necessary facilities to enable over 9,000 MW of offshore wind generation to reach homes and businesses in Southern New England. The company is also committed to supporting large solar projects and providing incentives for customer-sited solar, with expectations for thousands of megawatts of new solar to be developed in Massachusetts and Connecticut over the next several years. These initiatives not only support sustainability goals but also drive revenue through enhanced grid capabilities and the integration of new energy sources.
4. Operational Efficiencies from Advanced Metering Infrastructure (AMI) Deployment: Eversource plans to invest $850 million to deploy advanced metering infrastructure (AMI) in Massachusetts, with a goal of full deployment by 2029. This technology is expected to drive operational efficiency and cost reductions, directly contributing to net margins and supporting revenue stability by allowing customers to better manage their energy usage and enabling improved grid management.

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Capital Allocation Decisions for Eversource Energy (ES)

Share Issuance

• In June 2020, Eversource Energy priced a public offering of 6,000,000 common shares at $86.26 per share, generating approximately $517.56 million, with net proceeds intended to fund a portion of the purchase of Massachusetts natural gas assets.
• Approximately $1 billion in equity was issued through an At-The-Market (ATM) program in 2024, along with 15.7 million common shares.

Outbound Investments

• Eversource exited the offshore wind business, incurring a net after-tax loss of $524 million from the sale in 2024, following a $1.95 billion loss in 2023.
• The company is in the process of divesting its Aquarion water businesses, with a planned sale by the end of 2025 for $2.4 billion, which is expected to reduce debt and allow for reinvestment in regulated utilities.
• Eversource acquired the Massachusetts natural gas assets of Columbia Gas from NiSource, Inc. in October 2020.

Capital Expenditures

• Eversource's capital expenditures averaged $3.898 billion annually from fiscal years 2020 to 2024, peaking at $4.481 billion in December 2024.
• The company has announced an ambitious $24.2 billion capital investment plan for 2025-2029, focusing on modernizing its electric grid infrastructure.
• This five-year plan includes approximately $7 billion for transmission investments and over $10 billion for electric distribution upgrades, primarily aimed at enhancing reliability, resilience, replacing aging infrastructure, and integrating renewable energy.