Eversource Energy (NYSE: ES) has announced its intention to take legal action in response to a recent decision by the Federal Energy Regulatory Commission (FERC) that reduces the return on equity (ROE) for New England transmission owners. This decision, which has been described as arbitrary and inconsistent with the Federal Power Act, is expected to have significant negative financial repercussions for Eversource and its customers. The company estimates that the change in the base ROE will lower its future after-tax earnings by approximately $70 million for the year 2026. Eversource is also adjusting its non-GAAP earnings guidance for 2026 to reflect this impact, which now ranges from $4.57 to $4.72 per share. The company is evaluating a Section 205 filing with FERC to propose updated rates, as the current ROE was set using outdated data. Eversource emphasizes the urgent need for expanded transmission capacity and modernized infrastructure to support reliability and affordability in energy supply. The ongoing uncertainty and potential retroactive refunds could further erode investor confidence and increase the cost of capital for necessary infrastructure improvements, ultimately affecting customers in the long term. Eversource's proactive measures aim to mitigate these risks and ensure continued investment in the region's energy infrastructure.

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