By PAULA TRACY, InDepthNH.org
CONCORD – Eversource officials are maintaining that the negative regulatory environment in Connecticut is the sole reason S&P Global Ratings downgraded its credit rating this week from A- to BBB+, and the utility fired back at the state’s Consumer Advocate for his criticism of them.
In the story https://indepthnh.org/2024/12/10/eversource-gets-downgrade-in-credit-rating-consumer-advocate-calls-response-a-bit-of-spin/ Consumer Advocate Donald Kries said “The public – especially the ratepaying public – should not be fooled by Eversource’s self-serving statements about the erosion of its credit ratings. How convenient of both Eversource and S&P, as the rating agency, to blame vigilant regulators in Connecticut. In reality, our region’s biggest utility conglomerate is solely responsible for any failures to deliver safe and reliable service at the lowest possible cost.”
Kries accused Eversource of posturing for the state’s Public Utilities Commission as it considers a rate increase to the state’s more than 500,000 customers.
William H. Hinkle, spokesman for Eversource in New Hampshire, fired back and explained.
“The S&P report is a direct result of the negative regulatory environment in Connecticut, as explicitly outlined in the report and evidenced by the agency’s downgrade of other utilities operating in that state such as Connecticut Natural Gas Corp. and Southern Connecticut Gas Co. last week.
“This negative regulatory environment doesn’t benefit anyone – especially customers – and its impact is now spilling over into other states. By increasing the cost of capital that is necessary to ensure safe, reliable service, this downgrade will ultimately cost customers more money,” Hinkle wrote in response to the article in Indepthnh.org on Tuesday.
“It is disappointing to see the Consumer Advocate use this unfortunate downgrade, which as he acknowledges will increase costs for customers in New Hampshire, to continue his unwarranted attacks on Eversource. Our goal is always to foster constructive relationships with our regulators, which we believe results in the best outcomes for customers.”
Eversource provides power throughout New England including Massachusetts and Connecticut. It is a publicly traded entity.
Following the announcement that S&P downgraded Eversource’s credit rating, Eversource Vice President of Distribution Rates and Regulatory Requirements, Douglas Horton said in a statement the following:
“On Nov. 18, 2024, the Connecticut Public Utilities Regulatory Authority issued final rate-case orders for Connecticut Natural Gas Corp. and Southern Connecticut Gas Co., which included material rate decreases for both utilities. These rate orders follow a recent pattern of adverse regulatory developments for investor-owned utilities operating in Connecticut, which S&P views as increasing business risk for Eversource Energy and its operating subsidiaries. In light of these circumstances, S&P has lowered the issuer credit ratings to Eversource’s Connecticut operating subsidiaries Connecticut Light and Power Company and Yankee Gas Company, and also lowered the issuer credit ratings to ‘A-’ from ‘A’ for Eversource’s Massachusetts operating subsidiaries, NSTAR Electric Company, NSTAR Gas Company and Eversource Gas Company of Massachusetts, and for Public Service Company of New Hampshire. Eversource’s Massachusetts and New Hampshire electric operating subsidiaries continue to have top-tier credit ratings that will work to the benefit of customers as we continue our constructive engagement with valued stakeholders across our three-state service territory and strive to achieve cost-effective solutions to ensure safe, reliable service for our customers while supporting local goals at the state level.”
Kries said that Eversource’s news release including Horton’s assertions “conveniently omits mention of this statement from S&P Global: ‘Our downgrade of Eversource also incorporates the company’s weak historical financial performance and our view that financial performance will not sufficiently improve within the next three years.’”
In June the utility filed a request for a $182 million rate increase with the PUC that includes a performance based rate mechanism as the company looks to make improvements to protect its customers from losing power.
Kries, in an opinion piece, https://indepthnh.org/2024/06/13/eversource-seeks-42-percent-rate-hike/ criticised the company.
The PUC has yet to act on Eversource rate change request.
