By William Opalka

Eversource Energy reported higher year-end earnings fueled by a strong fourth quarter and a drop in operating costs. The company (formerly Northeast Utilities) also announced a 30% increase in its transmission build-out program, adding $900 million to an existing commitment of $3 billion.

Eversource reported 2014 earnings of $819.5 million ($2.58/share) compared with 2013 earnings of $786 million ($2.49/share). Fourth-quarter earnings were $221.6 million ($0.69/share) compared with $177.4 million ($0.56/share) in 2013.

Excluding integration costs, Eversource earned $841.6 million, or $2.65 per share, in 2014, compared with $799.8 million, or $2.53 per share, in 2013.

The company began 2015 by announcing it was integrating Northeast Utilities’ six affiliates into one company under the new name Eversource. It will take the new ticker symbol “ES” beginning Feb. 19. (See Northeast Utilities Rebranding as Eversource Energy.)

In a call with analysts, Chief Financial Officer Jim Judge denied that the name change suggested the company had plans to expand beyond New England. “It truly was trying to bring together six different operating companies — each of whom had their own identity or culture or brand,” Judge said. “It really was driven by that. The speculation about it being driven by an appetite to have a bigger footprint really isn’t based on the situation here.”

“Operationally and financially, we had a very strong finish to 2014, which provides us with considerable momentum heading into 2015 as we continue to address and resolve the most difficult energy supply challenges facing New England,” said Thomas J. May, Eversource Energy chairman, president and chief executive officer.

Transmission Spending

The company last year spent about $723 million on electric transmission projects, including completion of most of its section of the Interstate Reliability Project in northeastern Connecticut, making its 2014-2018 projected total $4.6 billion.

Eversource and its partner, National Grid, were selected by ISO-NE on Feb. 12 over a competing proposal to enhance reliability in the suburbs north of Boston and into New Hampshire. The $739 million AC Plan will use 25 miles of right-of-way and bury another 16 miles of cable.

Northern Pass

Company officials told an analysts call last week that the draft environmental impact statement from the U.S. Department of Energy for the $1.4 billion Northern Pass transmission project is expected in April. The 187-mile project would bring 1,200 MW of hydroelectric power from Hydro Quebec into New Hampshire, with an in-service target of the second half of 2018.

“We’ve made great progress with Hydro Quebec,” May said. “They’ve started very aggressively in Canada licensing their side of the line.”

However, its route, already reconfigured, cuts through the White Mountains and has drawn fierce opposition.

Access Northeast

Separate from its electric infrastructure expansion, Eversource in 2014 partnered with Spectra Energy to propose the $3 billion Access Northeast pipeline expansion that would secure supplies to 5,000 MW of power generation. A tax proposed by New England governors to fund the project has run into political headwinds. Open season is expected this spring and operations are planned for November 2018.