SALE OF AQUARION WATER DISTRIBUTION BUSINESS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Discontinued Operations and Disposal Groups [Abstract] | |
| SALE OF AQUARION WATER DISTRIBUTION BUSINESS | SALE OF AQUARION WATER DISTRIBUTION BUSINESS On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority. In June 2024, a Connecticut law chartered AWA and enabled it to acquire, own, and operate Aquarion as a not-for-profit water authority. The sale was approved by PURA on March 25, 2026. On June 30, 2026, Eversource completed the sale of Aquarion consistent with all regulatory terms and requirements. The total transaction purchase price was approximately $2.4 billion, which included approximately $650 million of long-term debt that was either repaid at closing or transferred to the buyer. The adjusted net equity proceeds of approximately $1.7 billion will be used to reduce Eversource parent debt. As a result of the sale, Eversource recognized a non-cash, after-tax charge of $111.4 million in the second quarter of 2026, which is presented separately within Operating Expenses on the Eversource statement of income. The carrying value of the water distribution reporting unit included net property, plant and equipment of approximately $2.0 billion and goodwill of $662.4 million that was derecognized upon sale. As conditions of PURA’s approval, Eversource contributed $10 million into a rate stabilization fund for the future benefit of Aquarion customers and returned to customers $5.8 million of revenues collected and held in escrow related to the 2022 rate case appeal. Additional transaction costs resulting from the sale were $29 million. The assets and liabilities associated with the sale of the water distribution business were previously reflected in the Water Distribution segment and reporting unit. Eversource has no post-closing obligations under the purchase and sale agreement with AWA other than a working capital true-up to the purchase price and no continued involvement with the divested subsidiaries. For the three months ended June 30, 2026 and 2025, pre-tax income associated with the water distribution business (excluding the $111.4 million charge) was $10.0 million and $13.0 million, respectively. For the six months ended June 30, 2026 and 2025, pre-tax income associated with the water distribution business (excluding the $111.4 million charge) was $16.0 million and $15.5 million, respectively.
|