Eversource Energy (ES) risk factors, FY2025 10-K

Eversource Energy's FY2025 10-K, filed Feb 17, 2026, lists 20 risk factors. Against the prior year's 19: 3 new, 2 dropped, 11 substantially reworded.

Open ES in Gloom →
Eversource Energy's chart, financials and news, free in your browser.Open ES in Gloom →
Risk factors listed
201 groups
New this year
3vs 19 last year
Dropped
2since the prior 10-K
Substantially reworded
11of those kept
Section length
6k wordsItem 1A

What the changes say

  • Eversource added risks regarding artificial intelligence integration, rate regulation, and ongoing financial exposure from sold offshore wind projects.
  • The company expanded disclosures on cyber vulnerabilities, credit rating pressures, and customer bill affordability challenges.

What changed since the prior 10-K

New

  • New

    We are increasingly integrating artificial intelligence (AI) into our operations, and while these technologies offer operational benefits, they also introduce significant risks that could adversely impact our business and results of operations

    Integrating artificial intelligence into weather forecasting, grid planning, and customer service introduces operational risks, regulatory compliance burdens, and potential service disruptions.

  • New

    Rate Regulation, Cost Recovery and Affordability

    Rate regulation proceedings by federal and state agencies create risks of unrecovered costs, delayed capital investments, and reduced allowed returns due to customer affordability concerns.

  • New

    Variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects no longer owned by Eversource and the inability to monetize investment tax credits could have an adverse impact on our financial position, results of operations, and cash flows

    Eversource retains financial exposure under the sale agreement with Global Infrastructure Partners for the Revolution Wind and South Fork Wind projects, including cost overrun sharing.

Dropped

  • Dropped

    The actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity

  • Dropped

    For further information, see Item 1, Business – Other Regulatory and Environmental Matters, included in this Annual Report on Form 10-K

Reworded

  • 96% rewritten

    We are exposed to significant reputational risks, which make us vulnerable to increased regulatory oversight or other sanctions

    Added specific references to third-party power suppliers, inflation, tariffs, geopolitical conflicts, ISO-NE load shed requirements, and vegetation management sanctions.

  • 44% rewritten

    Cyber events, including acts of war or terrorism, targeted directly on or indirectly affecting our systems or the systems of third parties on which we rely, could severely impair operations, negatively impact our business, lead to the disclosure of confidential information and adversely affect our reputation

    Added threats from artificial intelligence in cyberattacks, software defects, misconfigurations, system integration failures, and problematic third-party software updates.

    Was: Cyberattacks, including acts of war or terrorism, targeted directly on or indirectly affecting our systems or the systems of third parties on which we rely, could severely impair operations, negatively impact our business, lead to the disclosure of confidential information and adversely affect our reputation

  • 36% rewrittenRisks Related to the Environment and Catastrophic Events

    Limits on our access to, or increases in, the cost of capital may adversely impact our ability to execute our business plan

    Removed a specific mention of a recent S&P credit rating downgrade in Connecticut while adding broader language on market disruptions restricting capital access.

  • 34% rewrittenRisks Related to the Environment and Catastrophic Events

    Strategic development or investment opportunities in electric transmission, distributed generation, or clean-energy technologies may not be successful, which could have a material adverse effect on our business prospects

    Removed references to tax strategies, changes to federal tax laws, economic events, and competition from the list of development risks for clean-energy infrastructure.

  • 31% rewritten

    Costs of compliance with environmental laws and regulations, including those related to climate change, may increase and have an adverse effect on our business and results of operations

    Streamlined environmental compliance disclosures to focus on remediation uncertainties and potentially responsible parties rather than specific mentions of PFAS and lead.

  • 31% rewrittenRisks Related to the Environment and Catastrophic Events

    Market performance or changes in assumptions may require us to make significant contributions to our pension and other postretirement benefit plans

    Added a warning that large pension funding requirements combined with construction financing could impact future financings and financial results.

  • 25% rewrittenRisks Related to the Environment and Catastrophic Events

    The loss of key personnel, the inability to hire and retain qualified employees, or the failure to maintain a positive relationship with our workforce could have an adverse effect on our business, financial position and results of operations

    Minor phrasing adjustments regarding the retention of key management and workforce personnel.

  • 24% rewrittenRisks Related to the Environment and Catastrophic Events

    Transitional impacts related to climate change may have an adverse effect on our business and results of operations due to costs associated with new technologies, evolving customer expectations and changing workforce needs

    Minor grammatical update replacing material adverse financial impact to with on our business.

  • 22% rewrittenRisks Related to the Environment and Catastrophic Events

    We rely on third-party suppliers for equipment, materials, and services and we outsource certain business functions to third-party suppliers and service providers, and substandard performance or inability to fulfill obligations by those third parties could harm our business, reputation and results of operations

  • 22% rewrittenRisks Related to the Environment and Catastrophic Events

    Goodwill and long-lived assets if impaired and written down, could adversely affect our future operating results and total capitalization

    Was: Goodwill, investments in equity method investments, and long-lived assets if impaired and written down, could adversely affect our future operating results and total capitalization

  • 21% rewrittenRisks Related to the Environment and Catastrophic Events

    The effects of climate change, including severe storms, could cause significant damage to any of our facilities or assets requiring extensive expenditures, the recovery for which is subject to approval by regulators

    Was: The effects of climate change, including severe storms, could cause significant damage to any of our facilities requiring extensive expenditures, the recovery for which is subject to approval by regulators

All 20 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Cyber events, including acts of war or terrorism, targeted directly on or indirectly affecting our systems or the systems of third parties on which we rely, could severely impair operations, negatively impact our business, lead to the disclosure of confidential information and adversely affect our reputation44% rewritten
  2. 02The unauthorized access to, and the misappropriation of, confidential and proprietary Company, customer, employee, financial or system operating information could adversely affect our business operations and adversely impact our reputation
  3. 03We are increasingly integrating artificial intelligence (AI) into our operations, and while these technologies offer operational benefits, they also introduce significant risks that could adversely impact our business and results of operationsNew
  4. 04Rate Regulation, Cost Recovery and AffordabilityNew
  5. 05We are exposed to significant reputational risks, which make us vulnerable to increased regulatory oversight or other sanctions96% rewritten
  6. 06Costs of compliance with environmental laws and regulations, including those related to climate change, may increase and have an adverse effect on our business and results of operations31% rewritten
  7. 07Variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects no longer owned by Eversource and the inability to monetize investment tax credits could have an adverse impact on our financial position, results of operations, and cash flowsNew

Risks Related to the Environment and Catastrophic Events

  1. 08The effects of climate change, including severe storms, could cause significant damage to any of our facilities or assets requiring extensive expenditures, the recovery for which is subject to approval by regulators21% rewritten
  2. 09Transitional impacts related to climate change may have an adverse effect on our business and results of operations due to costs associated with new technologies, evolving customer expectations and changing workforce needs24% rewritten
  3. 10Physical attacks, including acts of war or terrorism, both threatened and actual, could adversely affect our ability to operate our systems and could adversely affect our financial results and liquidity
  4. 11Strategic development or investment opportunities in electric transmission, distributed generation, or clean-energy technologies may not be successful, which could have a material adverse effect on our business prospects34% rewritten
  5. 12Our transmission and distribution systems may not operate as expected, and could require unplanned expenditures, which could adversely affect our financial position, results of operations, and cash flows
  6. 13New technology and alternative energy sources could adversely affect our operations and financial results
  7. 14We rely on third-party suppliers for equipment, materials, and services and we outsource certain business functions to third-party suppliers and service providers, and substandard performance or inability to fulfill obligations by those third parties could harm our business, reputation and results of operations22% rewritten
  8. 15The loss of key personnel, the inability to hire and retain qualified employees, or the failure to maintain a positive relationship with our workforce could have an adverse effect on our business, financial position and results of operations25% rewritten
  9. 16Limits on our access to, or increases in, the cost of capital may adversely impact our ability to execute our business plan36% rewritten
  10. 17Market performance or changes in assumptions may require us to make significant contributions to our pension and other postretirement benefit plans31% rewritten
  11. 18Goodwill and long-lived assets if impaired and written down, could adversely affect our future operating results and total capitalization22% rewritten
  12. 19Our counterparties may not meet their obligations to us or may elect to exercise their termination rights, which could adversely affect our earnings
  13. 20As a holding company with no revenue-generating operations, Eversource parent's liquidity is dependent on dividends from its subsidiaries, its commercial paper program, and its ability to access the long-term debt and equity capital markets

Other Eversource Energy 10-Ks

  • FY2024 10-K risk factors
    19 risks

    Eversource Energy faces heavy exposure to state utility regulation, severe weather impacts, and complex environmental compliance standards.

    Filed Feb 14, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.