Eversource Energy Updates Offshore Wind Liability Following Cost Revisions and Federal Tax Impact
Eversource Energy (NYSE: ES) announced an update regarding its offshore wind operations, revealing a significant increase in its liability related to expected future payments to Global Infrastructure Partners (GIP). The company raised its estimated liability by approximately $285 million, tied to post-closing purchase price adjustments from the September 30, 2024, sale of its South Fork Wind and Revolution Wind projects. These assets, collectively known as the Offshore Wind Projects, were sold as part of Eversource’s broader effort to refocus its clean energy investments and optimize its financial position.
Despite the higher liability, Eversource expects to recognize an estimated $210 million federal tax benefit from tax losses associated with the sale of its offshore wind holdings. This tax benefit is anticipated to offset a large portion of the financial impact from the increased obligation. After factoring in both the liability adjustment and the tax benefit, Eversource projects a net after-tax non-recurring charge of about $75 million, equivalent to $0.20 per share, to be recorded in the third quarter of 2025.
Updated Earnings Guidance for 2025
Reflecting these developments, Eversource is slightly narrowing its non-GAAP recurring earnings guidance for the full year 2025. The revised range now stands between $4.72 and $4.80 per share, compared to the original guidance of $4.67 to $4.82 per share. The company emphasized that this adjustment maintains confidence in its underlying business performance while accounting for the financial implications of the offshore wind sale and related adjustments.
Details of the Offshore Wind Transaction
As part of the original agreement with GIP, Eversource retained responsibility for specific post-closing purchase price adjustments tied to construction and completion costs of the offshore wind assets. At the time of the sale’s closing in 2024, the company recorded an initial liability of $365 million to reflect potential future adjustments. Through payments made during 2025, this obligation was reduced to approximately $296 million as of June 30, 2025.
With South Fork Wind entering commercial operation in 2024, the remaining liability primarily pertains to the Revolution Wind project, which was reported to be over 80% complete as of mid-2025. Revolution Wind, once fully operational, is expected to deliver clean energy to the U.S. Northeast, contributing to regional renewable power goals.
Revised Cost Estimates and Construction Challenges
In the third quarter of 2025, GIP provided Eversource with an updated construction status report for Revolution Wind. The report included revised cost projections, which outlined several quantifiable increases that led to the additional $285 million liability. These increases were driven by multiple factors, including higher insurance costs, tariff-related expenses, and rising construction costs following damage to the turbine installation vessel used for the project.
A significant disruption also came from a stop-work order issued by the Bureau of Ocean Energy Management (BOEM) on August 22, 2025. The order temporarily halted all offshore wind construction activities until September 22, 2025, causing schedule delays and additional costs associated with workforce and equipment idling. Together, these events have collectively contributed to the higher cost profile for completing Revolution Wind.
Ongoing Review and Future Outlook
Eversource stated that it continues to review its obligations with GIP as the Revolution Wind project nears completion. The company is assessing whether any further adjustments to the liability are warranted as the final project costs become clearer. The updated liability figure reflects the most recent construction and cost data available, along with the latest understanding of the project’s financial requirements.
This update underscores the financial complexities surrounding large-scale offshore wind developments, especially amid changing regulatory, environmental, and logistical conditions. Eversource reaffirmed its commitment to responsibly managing its remaining obligations under the sale agreement while focusing on its core regulated utility operations and advancing its long-term clean energy strategy.
