Eversource Energy quarterly profit drops on lower electricity rates
Nov 6 (Reuters) - Utility firm Eversource Energy on Monday posted a near 3% drop in third-quarter profit on lower rates in its electric distribution segment.
Eversource, which is mainly in the electric and gas distribution business, said the lower earnings from the electric distribution segment will not have an impact on its 2023 full-year results as it expects favorable rate hikes in the coming quarters to compensate for the drop in the third quarter.
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The company reported a profit of $339.7 million, or 97 cents per share, for the quarter ended Sept. 30, down from $349.4 million, or $1.00 per share, a year earlier. The profit per share also slightly missed analysts' estimates of 98 cents, according to LSEG data.
The utility firm said quarterly earnings from its electric distribution segment declined by 23% to $173.3 million, from a year ago, due to lower service rates in its Massachusetts electric business. The company said it had applied for rate design change in the state, and expects the gains to accrue in the current quarter.
Utility companies use General Rate Case (GRC) proceedings with the respective commissions to address a revenue shortfall and ask for an increase in rates on the basis of its total cost of providing service.
Quarterly loss from its natural gas distribution widened to $33.7 million, from $24.6 million last year, due to higher operating expenses and lower natural gas prices.
The utility company narrowed its 2023 profit forecast to a range of $4.30 to $4.43 per share from its previous forecast of between $4.25 per share to $4.43 per share. (Reporting by Sourasis Bose and Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)