Eversource CEO: ‘We Are Resisting Data Centers’

Why It Matters

Resisting data centers and expanding offshore wind directly shape New England’s power‑price trajectory, while the FERC ROE appeal and Aquarion sale determine Eversource’s profitability and capital allocation.

Key Takeaways

• Eversource rejects data‑center projects to protect residential rates
• Wholesale price rose 13.8% YoY to $112.71/MWh
• Revolution and Vineyard wind add 1.5 GW clean capacity
• FERC ROE appeal could raise returns from 9.57% to 11.39%
• Aquarion sale valued at $2.4 billion, closing June 14

Pulse Analysis

Eversource’s public stance against new data‑center construction reflects a broader tension in the utility sector: high‑density computing loads demand massive, continuous power, which can strain regional grids and lift wholesale rates. By limiting such projects, the company aims to shield residential and small‑business customers from price spikes, especially as ISO‑New England’s market remains less volatile than neighboring PJM. This strategy also aligns with Eversource’s narrative that clean‑energy resources, not large‑scale industrial loads, should drive future demand.

The rollout of offshore wind is a cornerstone of the utility’s price‑management plan. Revolution Wind, now 95% complete, and Vineyard Wind, recently finished construction, together contribute roughly 1.5 GW of zero‑carbon generation. Their output is already dampening the upward pressure on electricity prices, helping to offset the $13.8% year‑over‑year increase to $112.71 per megawatt‑hour reported for Q1. As these projects move to full commercial operation, New England’s generation mix will shift, reducing reliance on fossil‑fuel peakers and enhancing grid resilience.

Regulatory and financial maneuvers round out Eversource’s outlook. The utility is challenging a Federal Energy Regulatory Commission ruling that set a 9.57% base return on equity, arguing that market conditions—such as geopolitical risks and evolving demand—warrant an 11.39% rate. Simultaneously, the pending $2.4 billion sale of its Aquarion Water subsidiary, slated to close after the June 14 appeal deadline, reshapes earnings guidance to $4.57‑$4.72 per share. Together, these actions illustrate how Eversource balances operational strategy with regulatory advocacy to protect shareholder value.