Eversource Energy

Moat drivers are classic for a regulated utility: efficient scale and local network effects from interconnected distribution and transmission grids, supported by franchise territories and cost recovery mechanisms.

We score components as follows: Efficient scale 85 (durable, high barriers to entry), Switching costs 80 (customers cannot practically switch wires), Intangibles 45 (brand and ESG recognition help, but economics are set by regulators), Cost advantage 60 (scale and financing access help, but costs are passed through), Network effects 50 (operational network benefits exist but pricing is regulated).

Weighting efficient scale and switching costs most heavily produces a high but not elite moat score due to regulatory discretion and policy volatility, especially in Connecticut which has recently affected credit views.

Massachusetts grid modernization approvals and electrification tailwinds support durability in the electric business, and exiting offshore wind refocuses on the core moat.