Eversource Energy, a prominent utility company, is making significant strides in ensuring its long-term viability and expansion. The firm supplies essential electricity, natural gas, and water services to approximately 4.6 million customers across key New England states, including Connecticut, Massachusetts, and New Hampshire. Operating as a regulated entity, Eversource benefits from rate structures established by federal and state authorities, which provides a reliable framework for cost recovery through regular rate adjustments. Notably, the company does not own power generation facilities, instead opting to fulfill customer demand by securing energy through carefully negotiated long-term agreements.
The company has consistently demonstrated strong financial performance and is poised for continued success, driven by anticipated rate increases, ongoing enhancements to its transmission network, and dedicated investments in renewable energy ventures. A pivotal strategic decision was Eversource's divestment from its commercial-scale offshore wind operations in the U.S. This move has streamlined the company's focus, allowing it to concentrate entirely on its regulated utility functions. With favorable economic development trends throughout its service regions, management has committed to allocating approximately $24.2 billion between 2025 and 2029 for infrastructure modernization and expansion, with an additional $1.5 billion to $2 billion earmarked for supplementary projects during the same period.
These substantial capital outlays are expected to fuel Eversource's projected annual non-GAAP earnings per share growth of 5% to 7% over the forecast horizon. Demonstrating its commitment to shareholder returns, Eversource Energy recently increased its quarterly dividend by 4.7% to $0.7875 per share, marking its 26th consecutive year of dividend growth. While the investment potential of ES is acknowledged, other investment opportunities, particularly in the AI sector, may offer higher upside with potentially lower risk.
Investing in essential services like utility infrastructure provides a stable foundation for economic progress and community well-being. Eversource's forward-thinking strategy, emphasizing modernization and sustainable energy, not only promises financial gains but also reinforces the critical role of reliable utilities in supporting societal advancement and environmental responsibility. Such prudent management and dedication to long-term objectives are commendable and serve as a model for responsible corporate citizenship.
