Eversource Energy

Eversource Energy: The Evolution of a Publicly Traded Fortune 500 Energy Giant

Imagine a company that has been around for over half a century, weathering storms and merging with other giants to become the powerhouse it is today. That’s Eversource Energy, a publicly traded Fortune 500 energy company headquartered in Hartford, Connecticut, and Boston, Massachusetts. How did this journey begin?

The Birth of Northeast Utilities (NU)

In 1966, under the leadership of CEO Lelan Sillin, several companies were combined to form Northeast Utilities (NU). These included Connecticut Light and Power Company, Western Massachusetts Electric Company, and the Hartford Electric Light Company. Was it just a simple merger or did it mark the beginning of something much bigger?

The Rebranding and Growth

Over the years, NU underwent significant changes, including mergers and divestitures. In 2015, the company rebranded itself as Eversource Energy, a name that resonated with its commitment to serving communities across Connecticut, Massachusetts, and New Hampshire. How did this transformation impact the way people viewed the company?

The Main Subsidiaries

Eversource operates six main subsidiaries: Connecticut Light and Power, Public Service Company of New Hampshire, Western Massachusetts Electric Company, Yankee Gas Services Company, NSTAR Electric, and NSTAR Gas. Can you imagine the complexity of managing such a diverse portfolio?

The Evolution of Eversource Energy

Eversource serves over 4 million customers across its service areas, providing retail electricity, natural gas service, and water service. In 2006, NU sold generating units as competitive suppliers and shut down its generation business units, with the Northeast Generation assets being sold to Energy Capital Partners. Was this a strategic move or did it come with challenges?

Mergers and Acquisitions

In 2010, NU merged with NSTAR, retaining the name for several years before rebranding as Eversource in 2015. In 2017, Eversource announced a merger with Aquarion Water Company for $1.675 billion. How did these mergers shape the company’s future?

Investments and Projects

Eversource has participated in several power grid reliability projects, including the construction of transmission lines and upgrading existing infrastructure. The company has also invested in electric vehicle charging stations and switched to cleaner energy sources, reducing its reliance on coal. Is this a step towards a more sustainable future?

The Controversies

Eversource Energy faced several controversies over the years. In 2018, it won a clean energy procurement RFP but lost an appeal after the New Hampshire Supreme Court sided with regulators who opposed the project. FERC is investigating Eversource for potential unjust transmission rates. The utility has been involved in lobbying efforts to oppose rooftop solar growth, with payments exceeding $135,000 to trade associations. Are these actions aligned with the public’s expectations?

The Legal Battles and Scrutiny

Eversource was approved a reduced rate hike for Massachusetts customers but Attorney General Maura Healey appealed the decision. An environmental group accused the company of price manipulation by buying up pipeline capacity they didn’t use. The Environmental Defense Fund said two utilities, Avangrid and Eversource Energy, reserved large amounts of natural gas on the Algonquin pipeline system during winter heating periods, reducing those orders late in the day to drive up wholesale prices for natural gas and increase electricity costs. Is this a fair practice or is it causing unnecessary financial strain?

The Class-Action Lawsuit

A class-action lawsuit against Avangrid and Eversource claims the companies caused overcharges of $3.6 billion to 14.7 million people in six states from 2013 to 2016. The two utilities denied any wrongdoing, but Massachusetts Attorney General Maura Healey is reviewing the findings, while FERC previously concluded there was no evidence of anticompetitive withholding of pipeline capacity. What does this mean for consumers and investors?

The Future of Eversource Energy

Eversource’s journey from Northeast Utilities to its current form is a testament to the challenges and opportunities in the energy sector. As it continues to evolve, questions about sustainability, customer service, and regulatory compliance will undoubtedly shape its future. Will Eversource rise to meet these challenges or face new ones?

As we look ahead, the path of Eversource Energy is likely to be marked by ongoing innovation and adaptation. The company’s commitment to reliability, sustainability, and community service will continue to define its role in the energy landscape. Will Eversource Energy lead the way towards a more sustainable future?