By Michael Kuser

Eversource Energy last week reported third-quarter earnings of $260.4 million ($0.82/share), down nearly 2% from the same quarter in 2016. Earnings for the first nine months of 2017 were $750.6 million, up 5% from earnings of $713.1 million in the same period last year.

“The primary drivers of our [quarterly] results were higher electric transmission earnings being offset by lower electric distribution results,” Eversource CFO Phil Lembo told analysts in a Nov. 2 conference call.

A higher rate base boosted transmission earnings by 10.7% to $99 million, the result of the company investing $600 million in its transmission system this year through September, with just less than $1 billion planned for the full year, Lembo said.

He attributed a 7.4% drop in earnings for the company’s electric distribution and generation division to lower sales reflecting mild weather in July and August. Cooling degree days in Boston were down nearly 34% for the quarter compared with last summer and 8% below normal, he noted.

In addition to lower electric revenues, the company recorded higher property tax, depreciation and interest expense in the quarter, but was able to offset much of the negative impact by controlling costs, Lembo said. Eversource’s natural gas distribution segment posted a net loss of $6.2 million in the third quarter and earnings of $49.1 million in the first nine months of 2017, compared with a net loss of $7 million in the third quarter of 2016 and earnings of $51.9 million in the first nine months of 2016.

“For the long term, we continue to project 5 to 7% [earnings per share] growth,” Lembo said. “We are pleased with our results today and remain comfortable with our 2017 guidance, although I’d like to see some very cold weather in November and December, and that would really help us reach the higher end of our earnings range for ’17.”

Future Developments

Lembo noted that Eversource last month filed with the New Hampshire Public Utilities Commission to sell its remaining 1,200 MW of generation assets in the state for $258 million, and expects the two sales to be completed late this year or in early 2018. On the company’s proposed merger of subsidiaries NSTAR Electric and Western Massachusetts Electric Co., he said state regulators should issue a decision by Nov. 30 on the merger and grid modernization, and a decision on performance-based rate design by Dec. 29, with rates to become effective in January 2018.

Lee Olivier, Eversource executive vice president for business development, said the company’s Northern Pass transmission project achieved an important milestone Nov. 1 when utility subsidiary Public Service Company of New Hampshire filed a settlement agreement on the lease terms for most of the 192-mile route for the line.

“The settlement was reached with New Hampshire PUC staff and the Office of Consumer Advocate, the two principal intervenors in the case,” Olivier said. “We expect the New Hampshire PUC approval of the settlement by the end of the year. Taken together, we are very pleased with our current position in the siting process, with significant progress being made in all venues.”

Eversource has also partnered with Ørsted, formerly DONG Energy, to form Bay State Wind for the offshore wind solicitation in Massachusetts.

“We are preparing our bid into the Massachusetts offshore wind [request for proposals], which is due Dec. 20,” Olivier said. “Given the vast experience of Ørsted in European offshore wind and our knowledge of New England markets and transmission, we believe we will be able to submit a highly compelling set of proposals for review by the evaluators.”