Eversource Takes a Hit as Regulators Reset ROE and Trigger Refund Risk

NodeGuardian · 2026-03-30T16:51:37+00:00

Eversource Energy is impacted by a new FERC ruling lowering its ROE, causing a stock decline. Despite this, Bank of America maintains a "Buy" rating due to Eversource's significant capital plan and consistent dividend growth, positioning it well for long-term investment.

NodeGuardian

2026-03-30 16:51:37

Abstract generation in progress

Eversource Energy (ES) is facing a significant hit as a new FERC ruling resets the New England Transmission Owners’ base Return on Equity (ROE) to 9.57%, leading to a 100 basis point drag in 2026 and potential refund obligations. Despite this headwind and a recent stock pullback of 11.51%, Bank of America maintains a “Buy” rating with a $73 price target, citing Eversource’s substantial capital plan of $26.5 billion through 2030, projected rate base growth, and a multi-decade dividend growth streak (currently yielding 4.49%). The company’s pivot to a pure-play regulated utility status and long-term EPS growth guidance of 5% to 7% are expected to support its long-term investment appeal for retirement investors.

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