1) Strategic Overview and Leadership Insights
- Eversource Energy is focused on safety, reliability, strengthening the balance sheet, and derisking its business profile.
- The company successfully managed a severe blizzard in February 2026, restoring power to over 500,000 customers, showcasing operational resilience and infrastructure investments.
- The sale of Aquarion received final approval from PURA, with a closing anticipated after the appeal period ends in mid-June 2026.
- The company is addressing regulatory challenges, particularly regarding the FERC's recent decision on transmission ROE.

2) Financial Performance and Segment Results
- Q1 2026 GAAP earnings per share (EPS) were $1.61, up from $1.50 in Q1 2025.
- Non-GAAP EPS for the quarter was $1.73, compared to $1.50 in the prior year, reflecting a $0.23 improvement primarily from the gas segment and electric transmission.
- The FERC decision reduced the base transmission ROE from 10.57% to 9.57%, resulting in an after-tax charge of $43.9 million for the quarter.
- Revised 2026 non-GAAP EPS guidance is set between $4.57 and $4.72 per share, reflecting the impact of the FERC decision and the potential Aquarion sale.

3) Regulatory Challenges and Headwinds
- The FERC's decision on ROE has created uncertainty, with Eversource taking multiple legal actions to contest it, including a motion for a stay and a section 205 filing for a new base ROE of 11.39%.
- The company is also navigating the complexities of storm cost recovery and regulatory approvals across its operating regions, which could impact financial performance.
- The regulatory environment remains a significant concern, particularly with the potential for further appeals related to the Aquarion sale and the FERC ROE decision.

4) Operational and Product Plans
- Eversource is advancing its five-year capital plan of $26.5 billion, with nearly $800 million spent in Q1 2026.
- The company is preparing for a rate review in Connecticut, the first in eight years, to demonstrate improved reliability and justify rate increases.
- Securitization of storm costs is expected to recover approximately $2 billion in deferred costs across Connecticut and New Hampshire within the next 12 to 18 months.
- Eversource is also focused on integrating new energy resources and enhancing grid reliability, with significant investments in renewable energy projects.

5) Guidance and Outlook
- The company reaffirms its long-term earnings growth target of 5% to 7% off the midpoint of revised 2026 guidance.
- Eversource is optimistic about regulatory outcomes improving in the future, which could lead to a meaningful inflection in earnings growth.
- Future guidance will be based on the current 9.57% ROE until the FERC process concludes, with potential adjustments depending on the outcome of ongoing legal challenges.

Bottom line: Eversource Energy is navigating a complex regulatory landscape while maintaining a strong operational performance and a clear strategic focus. The company’s ability to manage regulatory challenges and execute its capital plan will be critical for achieving its long-term growth targets, making it a potentially attractive investment for shareholders.