Eversource Energy

Eversource Energy
Company type	Public
Industry	Energy
Founded	1905
Founder	J. Henry Roraback
Headquarters	Hartford, Connecticut and Boston, Massachusetts, United States
Area served	Connecticut, Massachusetts, New Hampshire
Products	Electricity, natural gas, water services
Number of employees	300 (Aquarion Water Company acquisition)
Website	www.eversource.com

Eversource Energy is a publicly listed Fortune 500 company specializing in energy, with headquarters located in both Hartford, Connecticut and Boston, Massachusetts. It operates multiple regulated subsidiaries that supply retail electricity, natural gas, and water services to nearly 4 million customers throughout Connecticut, Massachusetts, and New Hampshire.

Following its 2012 merger with Boston-based NSTAR, the then-called Northeast Utilities oversaw an extensive network comprising more than 4,270 circuit miles of electric transmission lines, 72,000 pole miles of distribution infrastructure, and 6,459 miles of natural gas pipeline within the New England region.

On February 2, 2015, the organization and its subsidiaries adopted the unified brand name "Eversource Energy". Correspondingly, the company’s stock ticker symbol was updated from "NU" to "ES" on February 19, 2015.

Corporate structure

Prior to the rebranding initiative, the enterprise operated through six primary subsidiaries: Connecticut Light and Power (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO), Yankee Gas Services Company, NSTAR Electric, and NSTAR Gas. NSTAR itself was formed through mergers involving Boston Edison Company and Commonwealth Electric Company; all these entities now function collectively under the Eversource identity.

Eversource holds the position of Connecticut’s largest electric utility provider, catering to over 1.2 million residential, commercial, and industrial clients across approximately 149 municipalities. It is also the leading electric utility in New Hampshire, serving upwards of 500,000 customers in 211 towns and cities. In Massachusetts, Eversource supplies energy to roughly 1.7 million customers—this includes more than 1.4 million electric customers spread over 140 communities as well as over 300,000 natural gas customers in 51 communities.

History

The Rocky River Power Company was established in 1905 by J. Henry Roraback and subsequently renamed Connecticut Light and Power in 1917. In 1966, under CEO Lelan Sillin, Northeast Utilities (NU) was created by consolidating CL&P, Western Massachusetts Electric Company (WMECO), and Hartford Electric Light Company into a multi-state public utility holding company. Holyoke Water Power became part of this group in 1967. Public Service Company of New Hampshire (PSNH) filed for bankruptcy in 1988 due to licensing complications related to the Seabrook Nuclear Power Plant and merged into NU by 1992.

Between 1999 and 2001, merger discussions with Con Edison aimed at forming one of the largest utilities in the United States were ultimately halted due to regulatory opposition.

Deregulation measures enacted in the late 1990s compelled NU to divest its generation facilities; assets belonging to WMECO and CL&P were either sold or transferred to subsidiaries such as Northeast Generation. In 2001, NU transferred ownership of Holyoke Water Power’s assets to the City of Holyoke but retained control over the Mt. Tom coal-fired power plant. From 2000 through 2002, NU divested nuclear holdings including interests in Seabrook, Millstone, and Vermont Yankee nuclear plants.

In November 2005, NU announced plans to dispose of its unregulated competitive businesses; this divestiture concluded by November 2006 with sales finalized to Energy Capital Partners. PSNH maintained ownership of regulated generation assets intended for default service customers.

In October 2010, Northeast Utilities revealed a merger agreement with NSTAR—an established electric and gas supplier serving Greater Boston—with the transaction completing in April 2012 under the Northeast Utilities brand.

By 2015, Eversource consented to sell all generation assets located in New Hampshire; regulatory approval was granted in November 2017 and the transaction closed in January 2018.

In June 2017, Eversource expanded its footprint by acquiring Aquarion Water Company for $1.675 billion. This acquisition brought an additional workforce of approximately 300 employees along with a customer base of around 230,000 across Connecticut, Massachusetts, and New Hampshire; the deal was finalized by December of that year.

Beginning in 2016, Eversource entered joint ventures with Ørsted targeting offshore wind energy projects but announced intentions in 2023 to withdraw from these initiatives at an anticipated loss of about $200 million.

Major projects

Eversource Energy has spearheaded substantial infrastructure enhancements aimed at improving the reliability of the power grid in southwestern Connecticut. The company's first major initiative, completed under its former name Northeast Utilities, was the $350 million Bethel–Norwalk transmission line operating at 345 kV.

Together with United Illuminating, Eversource modernized the 69-mile Middletown-Norwalk transmission corridor, also at 345 kV, which was energized in 2009 following an investment of $900 million.

In 2013, the Greater Springfield Reliability Project—part of the New England East-West Solution—represented a $795 million effort to address reliability issues within Springfield, Massachusetts’ 115 kV system. This project entailed building two new 345 kV lines feeding into the Agawam substation, reconstructing 115 kV lines between South Agawam and Ludlow to boost capacity, and upgrading critical substations such as Cadwell and Fairmont. These upgrades facilitated more efficient line arrangements and eliminated a costly underground 115 kV route prone to overloads, thereby enhancing operational robustness.

Aligning with its sustainability objectives, Eversource committed $45 million over five years starting in 2018 to deploy more than 400 electric vehicle charging stations throughout Massachusetts. This effort supports its Grid Modernization strategy and reflects a transition in its energy portfolio away from coal toward natural gas, wind, hydroelectric, and solar resources—strengthening its position in clean energy markets.

HVDC transmission ("Northern Pass" Project)

During its time as Northeast Utilities, the company partnered with Hydro-Québec and NSTAR to develop a high-voltage direct current (HVDC) transmission line stretching approximately 180 to 190 miles from Windsor, Quebec to Franklin, New Hampshire. Designed to transmit up to 1,200 megawatts, this line was expected to supply electricity to roughly one million households. The initiative sought to utilize Hydro-Québec’s existing transmission infrastructure but encountered political opposition during the Massachusetts gubernatorial election, 2010 and environmental concerns raised by New Hampshire’s Sierra Club regarding ecological impacts and benefit sharing.

In January 2018, Massachusetts Governor Baker endorsed the "Northern Pass Transmission" (NPT) project through a clean energy procurement request for proposals (RFP), underscoring its importance within regional energy frameworks. However, on February 1, 2018, the New Hampshire Site Evaluation Committee unanimously rejected the permit application for the project, jeopardizing $1.6 billion in Eversource’s Transmission Rate Base Growth forecasts.

On July 26, 2019, after investing $318 million in development costs and following the New Hampshire Supreme Court’s affirmation of the permit denial, Eversource Energy officially terminated the Northern Pass project. This outcome represented a major obstacle in Eversource’s strategic plan to expand transmission capacity via large-scale infrastructure investments.

Transmission controversy (FERC Complaint)

Despite reporting an 80% rise in electric transmission revenue during Q2 2015, Eversource became subject to an investigation by the Federal Energy Regulatory Commission (FERC) over transmission rates that were alleged to be “unjust, unreasonable and unduly discriminatory or preferential.” Simultaneously, as rooftop solar gains traction and diminishes demand for new transmission infrastructure, Eversource has pursued restrictions on rooftop solar growth within its service territories.

Political affiliations

In 2015, Eversource took an active stance against the expansion of the rooftop solar sector, employing lobbyists in Massachusetts to hinder legislation favorable to solar energy. In New Hampshire, the company resisted efforts to increase the state's relatively low solar net metering limit, which remains behind that of adjacent states. Financial disclosures revealed Eversource contributed $110,000 to the Democratic Governors Association in 2016 and allocated more than $135,000 to various trade groups for lobbying and political endeavors, underscoring its deliberate involvement in influencing energy regulations.

Rate increases and solar fees

Attorney General Maura Healey opposed Eversource's 2017 proposal for a $300 million rate increase in Massachusetts, highlighting the substantial returns earned by NSTAR and WMECo. She pointed out that NSTAR’s 2015 return surpassed 13 percent, a figure unmatched by any state utility regulator that year. Between 2010 and 2015, shareholders of Eversource enjoyed an 89 percent total return, combining dividend payouts and stock price growth.

On November 30, 2017, the Massachusetts Department of Public Utilities authorized a notably smaller rate increase, permitting Eversource to collect tens of millions more annually from electric customers in the state. Nonetheless, on December 20, 2017, Healey filed an appeal against this decision, contesting the approval of a high-cost 10 percent return for shareholders—one of the largest permitted by electric distribution regulators in recent times.

On January 30, 2018, Massachusetts lawmakers Rep. Thomas Golden Jr. and Sen. Michael J. Barrett convened an oversight hearing concerning the DPU’s endorsement of Eversource’s demand charge imposed on net metering customers. Golden criticized the utility for making these fees "as confusing as possible" and voiced dissatisfaction with Eversource’s inadequate communication. Serving as co-chair of the Committee on Telecommunications, Utilities and Energy and a principal architect of the 2016 legislation authorizing minimum monthly charges, Golden cautioned that Eversource’s tactics risked undermining his support for their policy measures.

Allegations of price manipulation

In 2017, an environmental organization accused Eversource and Avangrid of artificially driving up electricity and gas prices by reserving pipeline capacity on the Algonquin line during peak winter demand but failing to utilize it. The Environmental Defense Fund claimed this strategy inflated wholesale natural gas costs, thereby raising electricity prices from gas-powered plants. EDF’s senior director asserted that the utilities deliberately manipulated prices for financial benefit. Both companies refuted any misconduct.

Investigations were initiated by Massachusetts Attorney General Maura Healey alongside regulatory bodies in Connecticut and Massachusetts, while U.S. Senator Richard Blumenthal called for a probe by the Federal Energy Regulatory Commission (FERC).

On February 27, 2018, FERC concluded its investigation with no findings of anticompetitive withholding of pipeline capacity by shippers in New England, criticizing EDF’s analysis as flawed and leading to inaccurate conclusions.

A class-action lawsuit filed in November 2017 accused Eversource and Avangrid of imposing $3.6 billion in excessive charges across six states, affecting 14.7 million consumers from 2013 through 2016 due to their "unique monopoly." However, on June 10, 2019, the lawsuit was dismissed on the grounds that natural gas pricing falls under federal regulation and is beyond judicial jurisdiction.

External links

Connecticut Electric Utility Service Map