Eversource to Take $75M Charge on Offshore Wind Sale

Eversource Energy announced it will record a pre-tax charge of approximately $75 million in the third quarter, a lingering financial consequence of its recent exit from the offshore wind development business. The charge reflects the persistent cost pressures and execution risks that are challenging the burgeoning U.S. renewable energy sector.

The company attributed the charge to an connected to the sale of its offshore wind assets. Specifically, the costs are tied to its former stake in the Revolution Wind project. Despite selling its remaining interests in the project to Global Infrastructure Partners, Eversource remains financially exposed to rising construction and insurance expenses impacting the project's completion.

This development follows Eversource's strategic decision in 2023 to and refocus on its core regulated utility operations. The company completed the sale of its stakes in the South Fork Wind and Revolution Wind projects in September 2024, a move intended to de-risk its business model. However, this latest charge demonstrates that the financial tail of these complex, capital-intensive projects can be long.

The U.S. offshore wind industry has been beset by supply chain disruptions, inflationary pressures, and higher financing costs, leading to project cancellations and renegotiations across the sector. Eversource's charge is a direct reflection of these broader headwinds. The company noted that for Revolution Wind were a primary driver of the increased liability.

While the company is moving forward with its focus on transmission and distribution, the charge serves as a cautionary note for investors about the financial complexities of the green energy transition. The move to exit the development side of offshore wind was aimed at providing a more stable, predictable earnings profile, but the volatility of these massive projects continues to echo on Eversource's balance sheet.