Eversource Energy (ES): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine room of a massive regulated utility, and honestly, the business model for Eversource Energy is a masterclass in predictable, infrastructure-heavy growth, not market disruption. After two decades analyzing these beasts, I can tell you their entire game is built on securing regulatory sign-off to deploy capital-they are on track to invest nearly $5 billion in 2025 to expand their asset base. If you want to see the precise mechanics of how they convert that massive capital expenditure into their projected $4.72-$4.80 recurring EPS guidance for 2025, dive into the full Business Model Canvas below.

Eversource Energy (ES) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Eversource Energy relies on to keep the lights on and the gas flowing across its regulated territory as of late 2025. These aren't just vendor lists; these are the entities that directly impact rate base, operational stability, and capital deployment decisions.

Regulatory bodies (PURA, FERC, state PUCs) for rate approval

The relationship with state Public Utility Regulatory Authorities (PUCs), especially the Connecticut Public Utilities Regulatory Authority (PURA), is central to Eversource Energy's revenue. PURA's decisions directly affect how much the company can earn and invest.

Here are some key financial and regulatory interactions from 2025:

• PURA approved a $100 million permanent rate increase for the New Hampshire subsidiary (PSNH), effective August 1, 2025, with a 9.5% return on equity.
• PURA approved a slight decrease in Connecticut electric rates, translating to approximately a $13 monthly decrease for an average Eversource customer.
• PURA rejected Eversource Energy's request to charge customers $75 million to replenish storm reserve accounts.
• In rate adjustments, PURA settled on a $142 million return to customers based on power purchase agreements, rejecting Eversource's initial request of $275 million.
• Eversource Energy stated its intention to file a general rate case application in 2025, the first since 2017.
• The company expects a final PURA decision on the Aquarion Water sale by November 19, 2025.

Wholesale energy suppliers for electric and natural gas procurement

Eversource Energy procures energy to serve customers who do not choose a third-party supplier, operating under the Standard Offer. This procurement strategy is heavily influenced by regulatory oversight on pricing.

The market structure in Connecticut as of early 2025 shows significant third-party participation:

Eversource Energy's procurement staff focuses on establishing relationships with ethical suppliers, guided by policies emphasizing safety and the environment.

Global Infrastructure Partners (GIP) for offshore wind project liabilities/tax benefits

Eversource Energy formally exited the offshore wind sector by selling its stake in South Fork Wind and Revolution Wind to Global Infrastructure Partners (GIP). While the sale is complete, post-closing adjustments create ongoing financial partnership obligations.

The financial implications of this partnership in 2025 are significant:

• Eversource expects to record a net after-tax nonrecurring charge of $75 million (or $0.20 per share) in Q3 2025 related to the increased liability with GIP.
• This charge stems from an approximate $285 million increase in expected future payments to GIP due to revised construction cost estimates for Revolution Wind.
• Eversource expects to offset part of this impact with an estimated $210 million federal tax benefit linked to tax losses on the offshore wind investments.
• The initial liability recorded at the closing of the sale was $365 million.
• Eversource will continue working with GIP as a contractor to complete the onshore work for Revolution Wind, which is expected to reach commercial operation in 2025.

Labor unions for maintaining stable operations and workforce relations

Stable operations depend on maintaining productive relationships with labor unions representing a significant portion of the skilled workforce. Eversource Energy has active contracts with several unions.

Specific union partnership details include:

• A contract extension was ratified for UWUA Local 369 members at Eversource Energy, running from June 2, 2025, through June 1, 2028.
• In 2018, a four-year agreement with IBEW Locals 420 and 457 covered 280 natural gas employees and included creating 20 new union positions over two years.
• Eversource Energy received the prestigious 2025 HIRE Vets Medallion Award from the U.S. Department of Labor for its commitment to veteran employment.

Builders and contractors for new construction and infrastructure projects

Eversource Energy's massive capital plan requires extensive partnerships with builders and contractors for grid modernization and asset replacement. The company plans to invest a total of $24.2 billion across its gas and electric businesses between 2025 and 2029.

Investment focus areas involving contractors:

The company is also reducing planned spending, cutting an additional $82.9 million from its 2025 capital spending plan, which was already subject to a planned reduction of $100 million annually for five years starting in 2024. Eversource is also engaged as a contractor to GIP to complete the onshore work for the Revolution Wind project.

Eversource Energy (ES) - Canvas Business Model: Key Activities

You're looking at the core actions Eversource Energy takes to run its regulated utility business as of late 2025. This is all about maintaining the pipes and wires and getting the necessary approvals to fund those massive infrastructure upgrades.

Electric transmission and distribution system operation

Eversource Energy maintains a vast physical footprint to serve its customer base. This activity is central to its identity as a regulated utility.

The company serves approximately 4.6 million customers across Connecticut, Massachusetts, and New Hampshire. Specifically, this includes about 1.58 million electric customers across 159 communities. The physical network includes 4.5K transmission miles and 60K distribution miles. Load growth through the first half of 2025 exceeded 2%.

Here's a quick look at the operational scale:

Regulated natural gas distribution and delivery

Alongside electricity, Eversource Energy manages its regulated natural gas delivery system. This is a core, steady-earning segment.

The company delivers natural gas to approximately 647,000 customers across 125 communities. For 2024, natural gas distribution earnings reached $0.81 per share, supported by modernization efforts.

Executing the $24.2 billion 5-year capital plan through 2029

The execution of the capital plan is the primary driver for future rate base growth. This is where the money gets spent to modernize the system.

Eversource Energy reaffirmed its five-year capital investment plan of $24.2 billion spanning 2025 through 2029. Management also noted potential for incremental investments in the range of $1.5 billion to $2 billion within that forecast period.

The allocation of the $24.2 billion plan includes:

• $16.2 billion targeted for electric and gas distribution networks.
• $6.8 billion allocated to the electric transmission segment.
• $10 billion specifically for electric distribution projects.
• $7 billion specifically for transmission infrastructure.
• Up to $1.6 billion for the Greater Cambridge Energy Project, which includes the first fully underground electrical substation in the U.S.

For 2025 specifically, management affirmed they were on track to invest nearly $5 billion in the year.

Managing regulatory filings to secure rate base growth and cost recovery

Securing regulatory approval for investments and cost recovery directly impacts earnings. This activity is about translating capital spend into allowed returns.

The capital plan supports an expected 8% compound annual growth rate in rate base through 2029. The rate base is projected to grow from $26.4 billion in 2023 to a projected $41.9 billion by 2029. The long-term EPS growth target remains in the 5% to 7% range off the 2024 non-GAAP EPS base.

Recent regulatory outcomes include:

• A $62 million rate increase for EGMA in Massachusetts, effective November 2025.
• A $100 million permanent rate increase approved for the New Hampshire subsidiary (PSNH), effective August 1, 2025, including a 9.5% return on equity.
• Q2 2025 recurring earnings per share was $0.96, up from $0.95 in Q2 2024.

Deploying Advanced Metering Infrastructure (AMI) in Massachusetts

The deployment of smart meters is a key grid modernization activity, enabling remote service and real-time data flow.

Eversource Energy began replacing electric meters with smart meters in the second half of 2025, starting in western Massachusetts. The total transition for all Massachusetts electric customers is expected to take approximately three years to complete. As of the third quarter of 2025, the company highlighted having over 40,000 AMI meters installed in Massachusetts.

The utility is still using AMR (Automatic Meter Reading) and rolling out trucks to read 1.5 million electric meters every day across the Northeast as of late 2024.

Eversource Energy (ES) - Canvas Business Model: Key Resources

You're looking at the core assets that back Eversource Energy's regulated utility operations across New England. These resources are the foundation for their capital expenditure plan of $24.2 billion between 2025 and 2029. This investment is designed to support an expected annual rate base growth rate of 8 per cent through 2029. It's a pure-play pipes and wires utility model now, following the divestment of non-core assets like the water business. That focus on regulated assets is key to their strategy. That's the whole game now.

The physical network is massive, delivering energy to approximately 4.6 million customers. This infrastructure requires constant maintenance and upgrades to meet increasing load demand, which weather-normalized electricity demand has seen rise by about 2 per cent in 2025 due to electrification trends. The company employs nearly 10,000 people dedicated to these operations, including critical storm response capabilities.

Regulatory agreements provide the financial scaffolding for this massive capital deployment. For instance, the New Hampshire subsidiary (PSNH) secured a permanent rate increase in July 2025, which explicitly includes a 9.5 per cent Return on Equity (ROE). This ROE is based on a 50/50 per cent equity capital structure and a four-year performance-based ratemaking term. This regulatory certainty helps underpin the long-term EPS growth target of 5 per cent to 7 per cent through 2029.

Here's a quick look at the scale of the physical assets and a key regulatory metric:

Eversource Energy holds exclusive franchise rights across its service territories, which are segmented by state and service type:

• Exclusive electric service territory covers 157 towns in Connecticut.
• Exclusive electric service territory covers 159 towns in Massachusetts.
• Exclusive electric service territory covers 206 towns in New Hampshire.
• Natural gas service territory includes 85 towns in Connecticut.
• Natural gas service territory includes 121 towns in Massachusetts.

The company's 2025 capital plan specifically allocates significant funds to these regulated areas, with nearly $7 billion for transmission investments and over $10 billion for electric distribution upgrades between 2025 and 2029. Finance: draft 13-week cash view by Friday.

Eversource Energy (ES) - Canvas Business Model: Value Propositions

You're looking at the core promises Eversource Energy is making to its customers and stakeholders as of late 2025. These aren't just mission statements; they are backed by concrete capital plans and performance metrics.

Highly reliable and safe delivery of essential electric and gas services

Eversource Energy delivers essential services across Connecticut, Massachusetts, and New Hampshire, supporting approximately 4.6 million customers. The value here is operational consistency, even when the weather tests the system.

• Maintained top decile reliability performance among peers even during record-breaking heat waves in the summer of 2025.
• Responded to a severe weather event impacting parts of Connecticut and Massachusetts over the July 4 holiday weekend in 2025.

Predictable infrastructure investment supporting grid modernization

The commitment to the future grid is substantial, giving customers and investors a clear view of where capital is being deployed. This investment supports resilience and the integration of new energy sources.

Here's the quick math on the capital plan:

This investment is designed to support an annual rate base growth rate of 8 per cent through 2029.

Energy efficiency programs and rebates to reduce customer usage

Eversource Energy is recognized as the #1 energy efficiency provider in the nation. These programs translate directly into customer savings and lower environmental impact.

• Energy-saving programs generated approximately $115 million in annual bill savings for customers in 2024.
• Energy efficiency improvements helped avoid over 2.8 million metric tons of lifetime greenhouse gas emissions.
• The ConnectedSolutions demand response program actively dispatches nearly 210 megawatts across three states every year.
• The Residential New Construction core initiative showed a benefit-cost ratio of 4.97.

Facilitating state clean energy goals and decarbonization efforts

Eversource Energy plays a critical role in supporting state climate objectives, particularly in Massachusetts, through its Electric Sector Modernization Plan (ESMP).

The company has set aggressive internal targets to align with these broader goals:

• Expanded target to reduce operational (Scope 1 and 2) greenhouse gas (GHG) emissions by 45% by 2035 (from 2018 levels).
• Long-term target to achieve Net Zero emissions by 2050, which includes Scope 3 emissions.
• The Massachusetts ESMP aims for a 180% increase in electrification hosting capacity.
• This capacity is intended to enable the adoption of 2.5 million electric vehicles and 1 million residential heat pumps statewide.
• A first-of-its-kind utility-scale networked geothermal pilot project began servicing about 135 customers in Framingham, Massachusetts, in June 2024.

Financial stability with a $4.72-$4.80 recurring EPS guidance for 2025

Financial confidence is underpinned by reaffirmed guidance and strong operational execution, supported by constructive regulatory mechanisms for cost recovery in the majority of its businesses.

Here are the key financial markers as of late 2025:

The third quarter 2025 GAAP EPS was reported at $0.99 per share.

Eversource Energy (ES) - Canvas Business Model: Customer Relationships

You're looking at how Eversource Energy manages the connection points with its 4.6 million electric, natural gas, and water customers across Connecticut, Massachusetts, and New Hampshire as of late 2025. The relationships are built on digital convenience, direct financial support, emergency response, and ongoing program engagement.

Self-service digital tools for billing, payments, and outage reporting

Eversource Energy pushes customers toward digital channels for routine interactions. You need an online account to access the most detailed self-service features, which are available via the website and the mobile app, which was updated in August 2025.

• View past bills and payment history for up to 36 months.
• Make a payment or set up auto payments directly from a bank account.
• Report or check the status of service outages.
• Go paperless and receive notifications when bills are ready or due.
• Use the Bill Forecast tool, exclusive to smart meter customers, to project the next bill based on usage.

The company is tracking customer satisfaction with its website experience as part of its performance-based ratemaking metrics, establishing a baseline from 2022-2024 data.

Dedicated customer assistance programs for bill payment and financial hardship

Eversource Energy actively promotes programs to help customers manage costs, especially following rate adjustments. For instance, the August 1, 2025, rate increase in Eastern Massachusetts could add around $10 per month to an average customer's supply charge. The company offers specific programs like the New Start Program, which can help income-eligible customers reduce or eliminate outstanding balances over as little as 12 months with on-time payments.

In New Hampshire, the Electric Assistance Program (EAP) provides concrete financial relief, as seen in the September 2025 reporting:

The New Hampshire EAP offers a Discount Rate for customers with household incomes at or below 60% of the state median income, which can result in up to a 42% discount on the monthly electric bill.

Transactional support via call centers for general service and emergencies

For issues not resolved digitally, customers rely on phone support. Eversource Energy maintains phone lines for residential customers, typically operating Monday to Friday, 8 a.m. - 6 p.m. ET, offering service in English and Español. The company is focused on improving transactional satisfaction, tracking it via a Transactional Customer Satisfaction Index, which uses a weighted average of component scores. For construction-related service requests in 2023, simple services took an average of 8 days to complete.

Programmatic relationships through energy efficiency and demand response initiatives

Eversource Energy heavily engages customers through programs designed to manage energy use, positioning itself as the #1 energy efficiency provider in the nation. These programs are customized by state.

• In 2024, energy-saving programs delivered approximately $115 million in annual bill savings to customers.
• The ConnectedSolutions demand response program actively dispatches nearly 210 megawatts (MW) across its service territory annually.
• In 2024, demand response efforts engaged over 320 businesses and 70,000 residential customers.
• The Main Streets energy efficiency program, which connects small businesses with upgrades, served a total of 40 communities in 2024, and is launching in over 35 Massachusetts communities for 2025.

The company is making significant capital investments to support this engagement, projecting capital expenditures of $24.17 billion from 2025 through 2029.

Eversource Energy (ES) - Canvas Business Model: Channels

You're looking at how Eversource Energy gets its product-reliable energy-to the millions it serves. It's a mix of heavy physical assets and modern digital touchpoints.

Physical electric and natural gas transmission/distribution networks represent the core physical channel. This infrastructure connects the power source to the end-user. Eversource Energy operates New England's largest energy delivery system, serving approximately 4.6 million electric, natural gas, and water customers across Connecticut, Massachusetts, and New Hampshire. The company is heavily investing in this physical channel, projecting capital expenditures of $24.17 billion from 2025 through 2029 across electric distribution, natural gas distribution, and electric transmission segments. At the end of 2024, the estimated transmission rate base stood at approximately $10.8 billion.

The financial performance through the first three quarters of 2025 reflects the scale of this operation:

The digital channels start with the Eversource.com website and mobile applications for account management. The website, www.eversource.com, is the hub for investor relations and customer self-service tools. The mobile apps, available on Google Play and the App Store, allow customers to manage their accounts and access usage insights. Digital tools include the Energy Profiler Online (EPO), a web-based service in conjunction with Schneider Electric, allowing access to meter usage data 24 hours a day, 7 days a week. Features available online and via the app include Bill Forecast and Bill Comparison tools for smart meter customers.

For immediate support, dedicated 24/7 emergency and general customer service phone lines are maintained. While specific call volume data isn't available, these lines serve the base of approximately 4.6 million customers. The company also employs more than 10,000 people across Connecticut, Massachusetts, and New Hampshire.

The outage alert system via text, email, and phone notifications is a key channel for service interruption communication. Smart meter installation enables features like the High Bill Alert and Weekly Energy Update Emails, which customers can set and manage. The company's commitment to system reliability is part of its sustainability story, with major projects ongoing to maintain and upgrade the system. The 2025 full-year non-GAAP earnings guidance is projected between $4.72 to $4.80 per share. Finance: draft 13-week cash view by Friday.

Eversource Energy (ES) - Canvas Business Model: Customer Segments

You're looking at the core of Eversource Energy's regulated business, which is fundamentally about serving a massive, captive customer base across three key New England states. The company operates New England's largest energy delivery system, serving approximately 4.6 million electric, natural gas, and water customers across Connecticut, Massachusetts, and New Hampshire as of mid-2025.

The customer segments are defined by the utility service provided, but for the electric side, which drives the bulk of the business, we can see a clear geographic and service split. For instance, in Connecticut, Massachusetts, and New Hampshire, the electric distribution segment is the primary interface for residential, commercial, and industrial users. The company's 2025 EPS guidance of $4.67-$4.82 is built on the stability of these customer relationships.

Here's a look at the scale of the electric distribution customer base, based on the latest segment data available from the end of 2024, which informs the 2025 revenue picture:

Residential customers are the bedrock, but the C&I segment is critical for load growth projections. For example, forecasts for 2025-2026 show commercial users are expected to increase electricity consumption by 2.6%, and industrial users by 2.1%. This infrastructure investment is supported by a projected rate base CAGR of 8% through 2029.

Municipal and state government entities are served through the same regulated delivery system, often through specific contracts for public facilities and street lighting, which fall under the general electric and gas customer counts. The regulatory environment in these states dictates service obligations, such as the recent 6% bill reduction for CL&P customers following a RAM decision in Connecticut.

The energy suppliers segment represents customers who have chosen to shop for their power generation supply rather than taking the utility's Standard Offer. In Connecticut, as of April 2025, retail suppliers served 17.8% of Eversource Energy residential customers. This choice is made against the utility's backdrop; for example, the Eversource standard offer rate for H1 2025 in CT was set at 11.19 cents/kWh, with the H2 2025 rate announced at 9.748 cents/kWh. That's a big difference for the customers who stay on the default service. It shows you the direct competition for the supply portion of the bill, even if Eversource Energy still owns the wires.

You should note the scale of investment tied to serving these customers, with Eversource Energy's five-year capital plan totaling $24.2 billion through 2029. Approximately 60% of distribution capital investments are targeted for Massachusetts.

• Residential customers are the largest group within the electric distribution base.
• C&I businesses drive significant load growth projections for the next few years.
• The company is executing a $24.2 billion capital plan through 2029 to support these customers.
• In CT, 79 percent of residential customers were on the standard service offer as of September 2024.

Eversource Energy (ES) - Canvas Business Model: Cost Structure

The Cost Structure for Eversource Energy is heavily weighted toward capital deployment, fuel procurement, and ongoing maintenance, all characteristic of a large, regulated utility.

High capital expenditures form a massive component of the cost base, driven by necessary grid modernization and resilience projects. Eversource Energy management affirmed they are on track to invest nearly $5 billion in 2025 as part of a larger five-year capital plan totaling $24.2 billion through 2029.

A significant, yet often neutral, cost category involves purchased power and natural gas costs. These are generally pass-through expenses, meaning Eversource purchases the fuel or power on the wholesale market and bills the cost directly to customers without taking a profit margin on the commodity itself. Market volatility directly impacts this cost component; for instance, in Massachusetts, the Basic Service residential electricity rate increased by 12.3% starting August 1, 2025, driven by higher wholesale electricity supply costs. Similarly, a proposed 13% increase in Connecticut's winter electricity rate was linked to constrained natural gas supplies.

Operating expenses represent the day-to-day costs of running the utility network. For the fiscal quarter ending in September of 2025, Eversource Energy reported Operating Expenses of $2.53 billion. This figure is part of the overall cost to manage electric transmission, distribution, and gas services across its footprint.

The company carries significant interest expense on its long-term debt, which fuels its capital-intensive operations. As of September 2025, Eversource Energy's Total Debt on the balance sheet was reported at $29.83 billion USD, with Long Term Debt specifically at $26.854 billion for the quarter ending September 30, 2025. Higher interest expense was noted as a factor impacting earnings in the first nine months of 2025.

Finally, storm restoration and infrastructure maintenance costs are a recurring, though variable, expense. While the capital plan covers proactive maintenance, unexpected weather events drive significant, often recoverable, costs. For example, Eversource sought regulatory approval to recover $634 million in costs associated with 24 catastrophic events and eight predicted storms from 2018 to 2021, requesting to begin collecting $50 million annually starting January 1, 2025.

Here's a snapshot of key cost-related financial figures:

The structure is defined by these large fixed and pass-through costs:

• High, mandated capital spending for grid upgrades.
• Pass-through costs for purchased power and natural gas supply.
• Interest payments on debt exceeding $29 billion.
• Variable, but significant, costs for storm response.

Eversource Energy (ES) - Canvas Business Model: Revenue Streams

You're looking at how Eversource Energy brings in the money, which is heavily weighted toward its regulated utility operations in New England. The core of the business is the predictable, rate-regulated income from moving electrons and molecules. This stability is what underpins the company's long-term EPS growth target of 5-7% off a 2024 base.

The regulated electric transmission segment remains a primary earnings contributor. For the third quarter of 2025, this segment posted earnings of $185.5 million. This revenue is earned based on an approved rate base, allowing Eversource Energy to recover its investments in the high-voltage network that moves power across Connecticut, Massachusetts, and New Hampshire.

The distribution side-electric and natural gas-is where the bulk of the day-to-day revenue comes from. The electric distribution business saw strong performance in Q3 2025, with earnings hitting $221.6 million. The natural gas distribution segment, while reporting a loss of $(16.8) million in Q3 2025, showed significant year-over-year improvement. To give you a clearer picture of the regulated utility performance through the first nine months of 2025, here's how the segments stacked up:

The ability to recover capital expenditures and operating costs is baked right into the regulatory structure. This is how Eversource Energy funds its massive infrastructure spending, which management affirmed is on track to be nearly $5 billion in 2025.

• Recovery of capital investments and operating costs via approved rate cases.
• Rate increases in New Hampshire and Massachusetts supported electric distribution earnings.
• Natural gas segment benefited from base distribution rate increases and capital tracking mechanisms.
• The company is focused on grid modernization, including over 40,000 AMI meters installed in Massachusetts.

Regarding the planned divestiture of Aquarion Water Company, the expected revenue stream from the sale is now a point of strategic uncertainty. Eversource Energy had entered a definitive agreement to sell Aquarion for an aggregate enterprise value of approximately $2.4 billion. This deal, which included about $1.6 billion in cash, was expected to close by year-end 2025. However, Connecticut's Public Utilities Regulatory Authority recently denied the proposed $2.4 billion sale, disrupting management's core balance sheet improvement plans. The proceeds were intended to pay down parent company debt and allow for reinvestment into the core electric and natural gas businesses.

Finally, non-recurring items related to the prior offshore wind divestiture provided a notable financial offset in Q3 2025. Eversource Energy recognized an approximately $210 million federal tax benefit associated with tax losses from the sales of its offshore wind investments. This benefit mitigated the impact of an increased liability related to those projects, resulting in a net after-tax non-recurring charge of approximately $75 million, or $0.20 per share, recorded in the third quarter.