Eversource Energy

Rates are set through regulatory proceedings. This model limits unilateral pricing power even with strong local monopolies. Eversource can earn allowed returns and recover prudently incurred costs, yet adverse regulatory tone can compress earned ROEs or delay recovery.

The company’s transmission earnings rose in 2025 on higher investment, while electric and gas distribution reflected mixed drivers including customer credits and penalties in Massachusetts.

Structural pricing latitude is therefore modest, though long duration inflation indexing via test year updates, trackers, and FERC transmission frameworks provide partial protection. We see limited latent pricing power beyond normal rate cases.