[ES Q2 2026 Earnings Call] Eversource Weathers FERC ROE Hit, Lands $700M Transmission Win and Files First CL&P Rate Case in a Decade — BigGo Finance
Eversource Energy reported Q2 2026 recurring EPS of $0.87, down 9.4% from $0.96, and GAAP EPS of $0.14, impacted by non-cash charges tied to the Aquarion sale and Revolution Wind. The company said ISO New England selected its joint transmission bid, with about $700M of a $2.2B project. It filed a CL&P rate case seeking $451M revenue deficiency and reaffirmed 2026 EPS guidance $4.57–$4.72.
How this was made
The 30-second read
Why it matters
The article combines an earnings datapoint (recurring EPS down 9.4% with GAAP heavily impacted) with multiple forward-looking regulatory and project catalysts (ISO-NE transmission selection, CL&P rate case, PURA storm-cost decision, and a prospective ROE decision by Nov 30).
Market read
Traders get a bundled regulatory and growth update: ROE reset and refund risk versus concrete transmission selection and a new rate case that could re-rate the earnings growth trajectory into 2028.
What to watch
GAAP EPS is heavily distorted by non-cash charges (Aquarion carrying value and Revolution Wind contingent liability), so traders should separate recurring earnings drivers from one-time accounting impacts when positioning.
Background
Eversource’s Q2 results are framed by regulatory headwinds from a FERC ROE reduction, ongoing FERC refund litigation, and a shift toward growth via transmission and AMI-related capital.
Ticker impact
Eversource reported Q2 recurring EPS of $0.87, cut by FERC’s base ROE reduction to 9.57%, and outlined a $700M transmission win plus a new CL&P rate case.
Likely two-sided reaction: positive on the $700M transmission award and CL&P filing, offset by ongoing FERC refund uncertainty and large GAAP charges.
The article provides multiple discrete, decision-relevant items: (1) FERC ROE cut driving recurring EPS decline, (2) a new transmission project selection with a defined in-service window and capex share, (3) a first CL&P rate case in a decade with a proposed ROE, and (4) continued litigation risk with a stated potential incremental refund of $880M.
Market effects
Reinforces the regulated utility playbook where ROE resets and refund litigation can pressure earnings, while transmission and AMI capex can support rate-base growth.
New England grid expansion narrative strengthens, with congestion relief and generation integration tied to the Maine-New Hampshire interface project.
Limited direct global linkage beyond offshore wind partner exposure via Revolution Wind cost overruns and the broader regulated-infrastructure investment theme.
Counterpoint
The transmission win and CL&P filing may not translate into near-term earnings upside if FERC refund outcomes or regulatory timing delays dominate the discount-rate and cash-flow narrative.
Key entities
- companyEversource Energy
Utility reporting Q2 2026 results, FERC ROE headwinds, a $700M share of an ISO-NE transmission project, and a new CL&P rate case.
- regulatorFERC
Reduced base transmission ROE to 9.57% and ordered refunds, driving recurring earnings pressure and ongoing appeals.
- grid_operatorISO New England
Preliminarily selected a joint Eversource-Avangrid transmission proposal for Maine-New Hampshire capacity expansion.
- utility_subsidiaryCL&P
Connecticut Light and Power, subject of the first general rate case since 2017, filed with a proposed 10.25% ROE.
- projectRevolution Wind
704-MW offshore project with Ørsted, over 97% complete, with a $164M after-tax charge for cost overruns tied to stop-work orders.
