Eversource’s Strategic Moves Amid Turbulent Times

02/03/2025 | Energize CT Solar |

Eversource’s Strategic Moves Amid U.S.-Canada Trade Tensions: Implications for Connecticut Residents

In January 2025, Eversource Energy announced the sale of Aquarion Water Company to the Aquarion Water Authority for approximately $2.4 billion. This transaction includes $1.6 billion in cash and the assumption of $800 million in net debt.

Concurrently, the U.S. has imposed a 25% tariff on Canadian imports, including a 10% tariff on Canadian energy products such as oil, natural gas, and electricity. In response, Canada has announced retaliatory tariffs of 25% on U.S. imports, including various consumer goods.

Connecticut’s Energy Landscape

Connecticut is part of the New England power grid, which sources a portion of its electricity from Canada, particularly from Quebec’s hydropower resources. The existing transmission lines between New England and Quebec have a capacity limit of 2,225 megawatts.

Potential Impacts on Connecticut Residents

1. Electricity Rates: The newly imposed tariffs on Canadian energy imports could lead to increased costs for electricity in New England, including Connecticut. As suppliers face higher import costs, these expenses may be passed on to consumers through elevated utility rates.

2. Economic Considerations: Eversource’s sale of Aquarion Water Company, resulting in a $300 million loss, may further influence the company’s financial strategies, potentially affecting service rates and infrastructure investments.

Mitigation Strategies for Residents

Given the potential for rising energy costs due to international trade tensions and corporate financial decisions, Connecticut residents might consider alternative energy solutions. Investing in solar power can provide greater energy independence and shield consumers from fluctuating utility rates.

Conclusion

The intersection of Eversource’s recent asset sale and the escalating U.S.-Canada trade tariffs presents a complex scenario for Connecticut’s energy consumers. Staying informed and exploring renewable energy options can help residents navigate these developments and manage their energy expenses effectively.

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