In mid-February, Eversource Energy revealed in a statement for investors that it had lost $442.2 million in 2023, or $1.26 per share.
The review highlighted the company's intention to prioritize its core operations in electric and natural gas distribution and transmission, which are delineated as crucial areas of focus.
“Eversource’s core distribution and transmission businesses are well positioned to deliver solid operational and financial results as we move forward in supporting the region’s transition to a cleaner energy environment.”
It would also seem that the energy provider is uninterested in directly owning cleaner energy production facilities, as indicated by the announcement of its complete withdrawal from the offshore wind sector. The company has sold its stakes in South Fork Wind, Revolution Wind, and Sunrise Wind to other entities, yielding a profit of over $1 billion.
Concerning its ownership of Aquarion Water, which Eversource purchased in 2017 for over $1.6 billion, the company said it is contemplating its sale.
“Although the business has been earnings accretive to Eversource, a potential sale of the water business is an opportunity to reduce equity needs and improve regulatory diversity,” read the note.
The report said that the water business has a “$1.3 billion rate base as of December 31, 2023,” making Aquarion a substantial value to another owner as part of a larger strategic water business or infrastructure platform.
In March 2023, Connecticut's Public Utilities Regulatory Authority (PURA) denied a request from Bridgeport-based Aquarion Water Co. for a multi-year distribution rate increase and instead ordered the reduction of customer rates, reports Westfair Business Journal.
This week, S&P Global announced that it had downgraded Aquarion to ‘BBB+’ from ‘A-‘, explaining that this downgrade reflects the evaluation of its sale. If Aquarion is acquired by a company with the same rating, its rating could stay the same. However, if Aquarion gets sold to a lower-rated company or Eversource's rating drops, Aquarion's rating might go down too. Finally, if Aquarion gets bought by a higher-rated company, its rating could go up.
