{"schemaVersion":1,"research":true,"symbol":"es","name":"Eversource Energy","topic":"moat","path":"/stock/es/moat","status":"published","version":4,"updatedAt":"2026-10-18T00:29:29.289Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"Eversource has a narrow moat from its established regulated electricity delivery networks: customers can change energy suppliers while remaining delivery customers. Cost recovery mechanisms and revenue decoupling support the economics, but pricing discretion is limited. The 2026 FERC return reduction and expanded refund obligation demonstrate that durable customer access does not guarantee durable shareholder returns. The evidence supports efficient scale, without establishing exceptional durability or a company-wide cost advantage.","advantages":[{"mechanism":"efficient_scale","claim":"Established electric distribution networks retain delivery customers regardless of their choice of energy supplier. Existing transmission facilities and approved cost recovery formulas reinforce the infrastructure position. This is a current delivery advantage; future projects and pilots do not establish additional moats.","durability":"The continued distribution relationship and existing regulated infrastructure support persistence. Transmission cost recovery and distribution revenue decoupling provide economic protection, but neither guarantees adequate returns indefinitely.","risks":"Regulators control delivery rates and allowed returns. FERC reduced the transmission base ROE and extended the historical refund exposure. Non-tracked operating costs and financing costs remain material exposures. Alternative technologies and policy changes are disclosed potential risks, rather than demonstrated displacement.","invalidation":"The thesis would fail if customers could materially bypass Eversource's delivery networks, regulation removed its continuing delivery relationship, or sustained cost disallowances and return reductions prevented recovery of infrastructure costs and an adequate return on capital.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5"],"counterEvidenceIds":["e6","e7","e8","e9"]}],"evidence":[{"id":"e1","sourceId":"filing-2","location":"Results of operations: continuing distribution service and regulated delivery rates","excerpt":"CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues."},{"id":"e2","sourceId":"filing-1","location":"Revenue recognition: ownership and maintenance of interstate transmission facilities","excerpt":"Wholesale Transmission Revenues: The Eversource electric transmission-owning companies (CL&P, NSTAR Electric and PSNH) each own and maintain transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England."},{"id":"e3","sourceId":"filing-1","location":"Wholesale transmission revenues: FERC-approved cost recovery formulas","excerpt":"The Eversource electric transmission-owning companies have a combination of FERC-approved regional and local formula rates that are designed to work in tandem to recover all their transmission costs."},{"id":"e4","sourceId":"filing-2","location":"Results of operations: distribution revenue decoupling","excerpt":"For CL&P and NSTAR Electric, fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms."},{"id":"e5","sourceId":"filing-1","location":"Connecticut electric distribution: supplier migration does not affect distribution operating income","excerpt":"Because customer migration is limited to energy supply service, it has no impact on CL&P's electric distribution business or its operating income."},{"id":"e6","sourceId":"filing-2","location":"FERC ROE proceedings: replacement base return and historical effective date","excerpt":"FERC then found the just and reasonable replacement base ROE to be 9.57 percent with an incentive cap of 12.09 percent for the first complaint period (October 1, 2011 – December 31, 2012) and applied this same ROE prospectively, effective October 16, 2014, the date of the first complaint order vacated by the D.C."},{"id":"e7","sourceId":"filing-2","location":"FERC regulatory risk: increased historical refund obligation","excerpt":"The application of the revised base ROE to revenues collected over this extended historical period substantially increased the aggregate refund obligation compared to what would have resulted from a shorter refund period."},{"id":"e8","sourceId":"filing-2","location":"Operations and maintenance: non-tracked costs affect earnings","excerpt":"Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs)."},{"id":"e9","sourceId":"filing-1","location":"Forward-looking risk factors: regulation, technology, capital access and infrastructure risks","excerpt":"Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to: • cyber events or breaches, including acts of war or terrorism, affecting our systems or the systems of third parties on which we rely, •unauthorized access to, and the misappropriation of, confidential and proprietary Company, customer, employee, financial or system operating information, •actions or inaction of local, state and federal regulatory, public policy and taxing bodies, •changes in laws, regulations, Presidential executive orders or regulatory policy, including compliance with laws and regulations, which may impact the cost of compliance and strategic initiatives of the Company, •adverse publicity, which can harm our reputation, influence legislative and regulatory bodies, and result in unfavorable outcomes, •variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects as it relates to the purchase price post-closing adjustment under the terms of the sale agreement for these projects, •the ability to qualify for investment tax credits, •extreme weather, including severe storms, due to the impacts of climate change, and fluctuations in weather patterns, •adequacy, contamination of, or disruption in, our water supplies, •physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems, •ability or inability to commence and complete our major strategic development projects and opportunities, •breakdown, failure of, or damage to operating equipment, information technology systems, or processes of our transmission and distribution systems, •changes in levels or timing of capital expenditures, including unplanned expenditures and increased capital expenditure requirements, •changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model, •substandard performance of third-party suppliers and service providers, or counterparties not meeting their obligations, •limits on our access to, or increases in, the cost of capital, including disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly, •changes in economic conditions, including impact on interest rates, tax policies, tariffs and customer demand and payment ability, •changes in accounting standards and financial reporting regulations, •actions of rating agencies, and •other presently unknown or unforeseen factors."},{"id":"e10","sourceId":"filing-3","location":"2025 accomplishments: approved rate increases and regulatory settlements","excerpt":"​ • Eversource achieved many constructive regulatory outcomes in 2025, including approval of two settlement agreements with the Massachusetts Attorney General’s ​ Office that resulted in a $10 million rate adjustment and Gas System Enhancement Program for NSTAR Gas Company customers and allowance for future recovery of $65 million, net of acquisition and integration costs for Eversource Gas Company of Massachusetts; approval of a Yankee Gas Services Company rate case by the Connecticut Public Utilities Regulatory Authority resulting in an approximately $100 million revenue increase, a 9.32 percent return on equity, and enabled timely recovery of critical safety and regulatory capital investment programs; and a settlement with the New Hampshire Public Utilities Commission (NHPUC) for approximately $100 million in rates with annual inflationary performance-based regulation rate mechanism that provides for an annual rate adjustment through July of 2029 and return on equity of 9.50 percent."},{"id":"e11","sourceId":"filing-2","location":"Results of operations: energy supply recovery without markup","excerpt":"For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement."},{"id":"e12","sourceId":"filing-1","location":"Revenue recognition: periodic actual-cost recovery and overcollection refunds","excerpt":"These tracking mechanisms result in rates being changed periodically to ensure recovery of actual costs incurred and the refund of any overcollection of costs."},{"id":"e13","sourceId":"filing-2","location":"Subsidiary operating results: six-month earnings, expenses and delivery volumes","excerpt":"60 RESULTS OF OPERATIONS – THE CONNECTICUT LIGHT AND POWER COMPANY NSTAR ELECTRIC COMPANY AND SUBSIDIARY PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the six months ended June 30, 2026 and 2025 included in this combined Quarterly Report on Form 10-Q: For the Six Months Ended June 30, CL&P NSTAR Electric PSNH (Millions of Dollars) 2026 2025 Increase/ (Decrease) 2026 2025 Increase/ (Decrease) 2026 2025 Increase/ (Decrease) Operating Revenues $ 2,617.8 $ 2,673.4 $ (55.6) $ 2,069.0 $ 1,883.2 $ 185.8 $ 717.5 $ 651.1 $ 66.4 Operating Expenses: Purchased Power and Transmission 1,049.1 874.5 174.6 537.3 534.7 2.6 154.9 119.3 35.6 Operations and Maintenance 384.2 390.9 (6.7) 386.7 342.5 44.2 128.8 138.0 (9.2) Depreciation 224.8 214.4 10.4 239.3 217.4 21.9 89.4 81.7 7.7 Amortization of Regulatory Assets, Net 202.1 418.0 (215.9) 90.0 67.7 22.3 34.9 47.7 (12.8) Energy Efficiency Programs 68.0 91.7 (23.7) 193.3 107.7 85.6 18.3 22.7 (4.4) Taxes Other Than Income Taxes 230.1 221.0 9.1 159.6 152.0 7.6 55.8 53.0 2.8 Total Operating Expenses 2,158.3 2,210.5 (52.2) 1,606.2 1,422.0 184.2 482.1 462.4 19.7 Operating Income 459.5 462.9 (3.4) 462.8 461.2 1.6 235.4 188.7 46.7 Interest Expense 138.4 97.6 40.8 152.7 114.6 38.1 55.3 41.1 14.2 Other Income, Net 34.8 30.1 4.7 105.8 94.0 11.8 20.9 24.5 (3.6) Income Before Income Tax Expense 355.9 395.4 (39.5) 415.9 440.6 (24.7) 201.0 172.1 28.9 Income Tax Expense 86.4 100.5 (14.1) 96.2 104.5 (8.3) 49.2 41.9 7.3 Net Income $ 269.5 $ 294.9 $ (25.4) $ 319.7 $ 336.1 $ (16.4) $ 151.8 $ 130.2 $ 21.6 Operating Revenues Sales Volumes: A summary of our retail electric GWh sales volumes is as follows: For the Six Months Ended June 30, 2026 2025 Percentage Increase CL&P 10,017 9,881 1.4 % NSTAR Electric 11,326 11,183 1.3 % PSNH 3,901 3,846 1.4 % Fluctuations in retail electric sales volumes at PSNH impact earnings."},{"id":"e14","sourceId":"filing-2","location":"Unaudited consolidated income statement: first-half 2026 results and investment losses","excerpt":"1 EVERSOURCE ENERGY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, (Thousands of Dollars, Except Share Information) 2026 2025 2026 2025 Operating Revenues $ 2,903,189 $ 2,838,068 $ 7,407,552 $ 6,956,423 Operating Expenses: Purchased Power, Purchased Natural Gas and Transmission 939,514 818,747 2,457,688 2,159,084 Operations and Maintenance 480,441 467,557 987,420 955,008 Depreciation 423,914 385,595 844,396 765,175 Amortization (44,323) 109,103 358,441 564,552 Energy Efficiency Programs 173,231 135,290 464,730 392,840 Taxes Other Than Income Taxes 278,178 258,727 566,495 530,321 Sale of Aquarion 111,360 — 111,360 — Total Operating Expenses 2,362,315 2,175,019 5,790,530 5,366,980 Operating Income 540,874 663,049 1,617,022 1,589,443 Interest Expense 355,490 293,193 720,749 594,042 Loss on Offshore Wind 194,000 — 194,000 — Other Income, Net 144,033 95,363 245,192 187,706 Income Before Income Tax Expense 135,417 465,219 947,465 1,183,107 Income Tax Expense 79,857 110,611 283,184 275,831 Net Income 55,560 354,608 664,281 907,276 Net Income Attributable to Noncontrolling Interests 1,880 1,880 3,759 3,759 Net Income Attributable to Common Shareholders $ 53,680 $ 352,728 $ 660,522 $ 903,517 Basic Earnings Per Common Share $ 0.14 $ 0.96 $ 1.76 $ 2.46 Diluted Earnings Per Common Share $ 0.14 $ 0.96 $ 1.75 $ 2.45 Weighted Average Common Shares Outstanding: Basic 376,488,004 368,661,995 376,257,047 367,991,121 Diluted 376,998,879 368,917,187 376,791,247 368,297,404 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements."},{"id":"e15","sourceId":"filing-1","location":"Common shares: completed 2025 equity issuance","excerpt":"In 2025, Eversource issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs."},{"id":"e16","sourceId":"filing-2","location":"Debt financing: 2026 issuances, refinancing and repayments","excerpt":"Long-Term Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments: (Millions of Dollars) Interest Rate Issuance/(Repayment) Issue Date or Repayment Date Maturity Date Use of Proceeds for Issuance/ Repayment Information NSTAR Electric Debentures 4.65 % $ 350.0 May 2026 May 2031 Repaid 2.70% Debentures at maturity, repaid Series H Senior Notes at maturity, repaid short-term debt, paid capital expenditures and working capital NSTAR Electric Debentures 5.20 % 350.0 May 2026 May 2036 Repaid 2.70% Debentures at maturity, repaid Series H Senior Notes at maturity, repaid short-term debt, paid capital expenditures and working capital NSTAR Electric Debentures 2.70 % (250.0) June 2026 June 2026 Paid at maturity NSTAR Electric Series H Senior Notes 2.75 % (50.0) June 2026 June 2026 Paid at maturity PSNH Series X First Mortgage Bonds 5.35 % 200.0 June 2026 October 2033 Repaid short-term debt, paid capital expenditures and working capital Eversource Parent Series A Junior Notes (1) 6.10 % 750.0 February 2026 August 2056 Repaid Series AA Senior Notes at maturity, repay Series U Senior Notes at maturity, repaid short-term debt, and for general corporate purposes Eversource Parent Series B Junior Notes (2) 6.35 % 750.0 February 2026 August 2056 Repaid Series AA Senior Notes at maturity, repay Series U Senior Notes at maturity, repaid short-term debt, and for general corporate purposes Eversource Parent Series J Senior Notes 3.35 % (250.0) March 2026 March 2026 Paid at maturity Eversource Parent Series AA Senior Notes 4.75 % (450.0) May 2026 May 2026 Paid at maturity Yankee Gas Series AA First Mortgage Bonds 5.22 % 75.0 July 2026 July 2031 Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes Yankee Gas Series BB First Mortgage Bonds 5.61 % 100.0 July 2026 July 2036 Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes EGMA Series G First Mortgage Bonds 5.12 % 100.0 July 2026 July 2031 Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes (1) The Eversource Parent Series A Junior Subordinated Notes bear interest at a fixed rate of 6.10 percent per year from the issuance date of February 26, 2026 to August 14, 2031."},{"id":"e17","sourceId":"filing-2","location":"Aquarion sale: debt repaid at closing","excerpt":"In connection with the sale of Aquarion on June 30, 2026, $612.4 million of long-term debt was repaid at closing."},{"id":"e18","sourceId":"filing-3","location":"Executive compensation governance: ownership requirements and protective policies","excerpt":"​ • Our executive compensation governance program includes share ownership and holding requirements for Trustees and executives, an expanded clawback policy, broad hedging and pledging prohibition and double-trigger change in control agreements."},{"id":"e19","sourceId":"filing-3","location":"Compensation discussion: adopted 2025 formulaic incentive scorecard","excerpt":"Mr. Nova, our Lead Independent Trustee and Chair of the Compensation Committee met with our largest shareholder and discussed the Company’s executive compensation program at length Although the 2025 goals had been previously approved by the Compensation Committee, the Committee undertook a robust review of the feedback from shareholders and approved the following changes to our 2025 and 2026 compensation program as summarized below: ​ ​ ​ What We Heard ​ ​ ​ What We Did ​ ​ ​ ​ Desire for more formulaic incentive system where discretion is reduced ​ ​ ​ For 2025, we adopted a formal balanced scorecard in which a large majority of payouts are determined on a purely formulaic basis through the setting of pre-established threshold, target, and maximum achievement levels and the use of interpolation to determine payout factors."},{"id":"e20","sourceId":"filing-3","location":"Shareholder feedback: payout discretion and goal-setting concerns","excerpt":"Key themes of shareholder feedback: • Annual Incentive Plan: Desire for clearly defined performance ranges (threshold, target, maximum); concern that discretionary adjustments contributed to above-target payouts; and a call for greater rigor and transparency in goal-setting."},{"id":"e21","sourceId":"filing-3","location":"2025 operational performance: reported interruption frequency","excerpt":"​ ​ ​ ​ ​ Operational Performance ​ ​ ​ • Reliability Performance: Electric System Reliability – measured by months between interruptions was 21 months apart – a performance that was top decile in our industry."},{"id":"e22","sourceId":"filing-3","location":"2025 operational performance: reported outage duration","excerpt":"​ ​ ​ ​ • Restoration Performance: Average system outage duration was 66 minutes, which was top decile amongst our New England and Mid-Atlantic peers and top quartile in the entire industry."},{"id":"e23","sourceId":"filing-3","location":"2025 accomplishments: completed onshore substation ahead of schedule","excerpt":"​ • Eversource completed the onshore substation construction of the Revolution Wind project ahead of schedule."},{"id":"e24","sourceId":"filing-3","location":"Audit committee: independent quarterly meetings","excerpt":"The Committee meets independently with the internal audit staff, the independent registered public accounting firm, management, and then solely as a Committee, at least quarterly."},{"id":"e25","sourceId":"filing-3","location":"Audit committee: actual 2025 meeting frequency","excerpt":"The Audit Committee met six times during 2025, including the annual joint meeting with the Finance and Risk Management Committee."},{"id":"e26","sourceId":"filing-3","location":"Compensation discussion: actual 2025 say-on-pay voting support","excerpt":"The CD&A also contains an assessment of performance measured against established 2025 goals and additional accomplishments, the compensation awards made by the Compensation Committee, and other information relating to our compensation programs, including: ​ ​ ➢ Responsiveness to Shareholder Feedback (2025 Say-On-Pay) ​ ➢ Summary of 2025 Financial and Operational Accomplishments ​ ➢ Pay for Performance Philosophy ​ ➢ Executive Compensation Governance ​ ➢ Named Executive Officers ​ ➢ Overview of Our Compensation Program ​ ➢ Market Analysis ​ ➢ Target Percentage of Compensation Elements ​ ➢ Results of our 2025 Say-On-Pay Vote ​ ➢ Elements of 2025 Compensation ​ ​ ​ ➢ Risk Analysis of Executive Compensation Program ​ ➢ 2025 Annual Incentive Program Performance Assessment ​ ➢ Long-Term Incentive Program ​ ➢ Clawback, No Hedging and No Pledging Policies ​ ➢ Share Ownership Guidelines and Retention Requirements ​ ➢ Other Benefits ​ ➢ Contractual Agreements ​ ➢ Tax and Accounting Considerations ​ ➢ Equity Grant Practices ​ ➢ Compensation Committee Report ​ ​ Responsiveness to Shareholder Feedback to 2025 Say-On-Pay Results ​ At the Company’s Annual Meeting of Shareholders held on May 1, 2025, 57.13 percent of the votes cast on the Say-On-Pay proposal were voted to approve the 2024 compensation of the Named Executive Officers, as described in our 2025 proxy statement."},{"id":"e27","sourceId":"filing-3","location":"March 27, 2026 letter: combined chairman, president and chief executive roles","excerpt":"Chairman of the Board, President and Chief Executive Officer March 27, 2026 ​ TABLE OF CONTENTS [THIS PAGE LEFT BLANK INTENTIONALLY.] TABLE OF CONTENTS Notice of Annual Meeting of Shareholders ​ DATE: ​ ​ Wednesday, May 6, 2026 ​ ​ TIME: ​ ​ 10:30 a.m., Eastern Time ​ ​ PLACE: ​ ​ Ropes & Gray LLP, 800 Boylston Street, Boston, Massachusetts 02199 ​ Business Items/Agenda 1."},{"id":"e28","sourceId":"filing-2","location":"Glossary: regulated business scope and completed Aquarion sale","excerpt":"GLOSSARY OF TERMS The following is a glossary of abbreviations and acronyms that are found in this report: Current or former Eversource Energy companies, segments or investments: Eversource, ES or the Company Eversource Energy and subsidiaries Eversource parent or ES parent Eversource Energy, a public utility holding company ES parent and other companies ES parent and other companies are comprised of Eversource parent, Eversource Service, and other subsidiaries, which primarily includes our unregulated businesses, The Rocky River Realty Company (a real estate subsidiary), the consolidated operations of CYAPC and YAEC, and Eversource parent's equity ownership interests that are not consolidated and post-sale obligations from its previous offshore wind investments CL&P The Connecticut Light and Power Company NSTAR Electric NSTAR Electric Company PSNH Public Service Company of New Hampshire PSNH Funding PSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH NSTAR Gas NSTAR Gas Company EGMA Eversource Gas Company of Massachusetts Yankee Gas Yankee Gas Services Company Aquarion Aquarion Company and its subsidiaries HEEC Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric Eversource Service Eversource Energy Service Company CYAPC Connecticut Yankee Atomic Power Company MYAPC Maine Yankee Atomic Power Company YAEC Yankee Atomic Electric Company Yankee Companies CYAPC, YAEC and MYAPC Regulated companies The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas, NSTAR Gas and EGMA, the solar power facilities of NSTAR Electric, and Aquarion’s water distribution businesses until sale on June 30, 2026 Regulators and Government Agencies: DEEP Connecticut Department of Energy and Environmental Protection DOE U.S."},{"id":"e29","sourceId":"filing-2","location":"Glossary: named New England transmission owners","excerpt":"MW Megawatt MWh Megawatt-Hours NETOs New England Transmission Owners (including Eversource, National Grid and Avangrid) OCI Other Comprehensive Income/(Loss) PAM Pension and PBOP Rate Adjustment Mechanism PBOP Postretirement Benefits Other Than Pension PBOP Plan Postretirement Benefits Other Than Pension Plan Pension Plan Single uniform noncontributory defined benefit retirement plan PPA Power purchase agreement RECs Renewable Energy Certificates Regulatory ROE The average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment ROE Return on Equity RRBs Rate Reduction Bonds or Rate Reduction Certificates RSUs Restricted share units S&P Standard & Poor's Financial Services LLC SERP Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans SS Standard service UI The United Illuminating Company VIE Variable Interest Entity ii EVERSOURCE ENERGY AND SUBSIDIARIES THE CONNECTICUT LIGHT AND POWER COMPANY NSTAR ELECTRIC COMPANY AND SUBSIDIARY PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES TABLE OF CONTENTS Page PART I – FINANCIAL INFORMATION ITEM 1."}],"changes":["No comparable previous version."],"limitations":["Assessment uses only supplied passages from filings dated February 17, March 27 and August 3, 2026; these dates retain their filed dateKind.","National Grid and Avangrid are named as transmission owners, not established as direct competitors in the supplied coverage. Competitive suppliers are described generically, so the competitors array is empty.","The strongest moat evidence concerns electric delivery. Equivalent territorial protections and economics for natural gas are not established in comparable detail. Aquarion was sold on June 30, 2026 and is excluded from the current advantage.","Operating results and regulatory disclosures support numerical assessments, but all sources are issuer filings. Reliability peer rankings and management descriptions lack independent verification within the supplied catalog.","No sustained return-on-invested-capital comparison, infrastructure duplication economics or long-term record of regulatory cost disallowances is supplied. A wide moat is not established.","Proxy passages disclose adopted incentive mechanisms and ownership requirements, but not actual executive ownership compliance or the full performance-award structure. Proposed meeting items are not treated as approved outcomes."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Electric utilities retain the delivery relationship even when customers switch suppliers, supported by existing transmission assets and approved recovery formulas. This demonstrates an infrastructure advantage without proving broad cost leadership.","evidenceIds":["e1","e2","e3","e5"]},{"criterion":"durability","grade":2,"rationale":"Continuing delivery access and decoupling support persistence, but the actual FERC return reduction and enlarged refund exposure weaken confidence in durable economic returns.","evidenceIds":["e1","e4","e6","e7"]},{"criterion":"customer_dependency","grade":3,"rationale":"Supplier choice leaves customers dependent on the existing distribution provider. Actual first-half delivery volumes support continuing use; this is infrastructure dependency, not evidence of customer preference or a measured retention rate.","evidenceIds":["e1","e5","e13"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Decoupling and cost recovery protect parts of the business, while realized regulatory return cuts and non-tracked expense exposure demonstrate incomplete protection.","evidenceIds":["e3","e4","e6","e7","e8"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Disclosed approved gas and electric rate increases demonstrate achieved regulatory pricing outcomes. These are balanced by the FERC return reduction; commodity supply recovery without markup does not demonstrate discretionary pricing power.","evidenceIds":["e10","e6","e11"]},{"criterion":"retention","grade":3,"rationale":"Delivery relationships persist through energy supplier switching, and all three electric subsidiaries reported higher first-half delivery volumes. Assessment uses continuing service obligations and indirect operating evidence, without inferring a retention percentage.","evidenceIds":["e1","e5","e13"]},{"criterion":"margin_resilience","grade":2,"rationale":"Actual-cost tracking and decoupling cushion commodity and volume changes. First-half operating income was broadly stable at CL&P and NSTAR Electric and higher at PSNH, but interest costs rose and consolidated earnings suffered investment-related charges. Resilience is partial.","evidenceIds":["e4","e12","e13","e14"]},{"criterion":"contractual_freedom","grade":1,"rationale":"Delivery prices are regulated, supply costs are recovered without markup, and overcollections are refunded. Regulatory rate increases provide limited flexibility, rather than unilateral control of price or terms.","evidenceIds":["e1","e10","e11","e12"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Completed Aquarion debt repayment and successful refinancing demonstrate financing execution. Equity issuance, expensive new subordinated borrowing and renewed offshore wind losses temper that evidence. The passages do not establish superior investment returns or full consolidated cash funding coverage.","evidenceIds":["e14","e15","e16","e17"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Disclosed ownership and holding requirements, clawbacks and hedging restrictions support alignment. The adopted 2025 formulaic scorecard addresses shareholder concerns, but prior payout discretion and limited ownership-compliance detail prevent a stronger assessment.","evidenceIds":["e18","e19","e20","e26"]},{"criterion":"execution","grade":2,"rationale":"Reported reliability outcomes, early substation completion and approved rate settlements demonstrate operational accomplishments. Subsequent offshore wind losses and regulatory setbacks make overall execution mixed. Reliability rankings are issuer-reported, and project completion does not establish the final project return.","evidenceIds":["e21","e22","e23","e10","e14","e6"]},{"criterion":"governance","grade":2,"rationale":"Actual audit committee meetings, independent sessions and an adopted compensation response demonstrate functioning oversight. Combined chairman and CEO roles and only 57.13 percent support for the prior compensation vote temper the assessment; later proposal outcomes are not supplied.","evidenceIds":["e24","e25","e19","e26","e27"]}]}],"qualityPolicy":"quality-scores-2","basisHash":"dde84e413d27c846df50e5935aee8de011f3c4c6ec3be5f21e03187b88c99aaf","updatedAt":"2026-10-18T00:29:29.289Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/13372/000162828026008461/es-20251231.htm","publishedAt":"2026-02-17","sha256":"8294a9e59cc9f99753993d697257ab8275577fa42df35fa081b919ceccdafedc","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/13372/000162828026051906/es-20260630.htm","publishedAt":"2026-08-03","sha256":"a9d1b1ba0edf52dcdf5743fbbb10598710ad327e9fa63b5d783e98297578a86b","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/72741/000110465926036077/tm261423-1_def14a.htm","publishedAt":"2026-03-27","sha256":"0bf546281b1ed5d3812f01ff5f39708af713616fdf67e15b18683702b7749c20","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:749a6d40bdf3125fe1b9ed66c3f351b228397963e5d94d9f1ae08af5360ff897","usage":{"input_tokens":53969,"cached_input_tokens":20992,"cache_write_input_tokens":0,"output_tokens":3262,"reasoning_output_tokens":104},"basisSupplement":{"previousHash":"e1bbcf2cec602115b8c95b807415746a351a6b56e4f7244446952ed54aa222db","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; 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