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Eversource Energy first-quarter profits rise on higher electricity prices

Eversource Energy announced a higher first-quarter profit Thursday as it benefited from increased electricity rates.

Rate case proceedings are used by regulated utilities to increase power prices. They base their appeals on the investments they have made or expenses they have incurred when delivering their services.

Eversource's quarterly earnings in its electric distribution segment increased 12.1% from the previous year to $188.4 millions, while its electric transmission segment earned $199.4million, an increase of 12.8%.

Eversource Energy provides electricity and natural gas for approximately 4 million customers in Connecticut, Massachusetts and New Hampshire. Eversource Energy, which has ceased its involvement in offshore wind development in 2011, is now overseeing the construction of a substation on land for the Revolution Wind Project that is currently underway off the coast of Rhode Island.

Eversource CEO John Nolan stated on Friday's earnings conference that the onshore substation was critical to the project being completed.

He said: "We continue monitoring the overall progress of the construction project closely. The latest construction updates and cost estimates that we have received are the most recent construction updates."

The administration of Donald Trump has put U.S. Offshore Wind Projects in danger. He ordered the suspension of an offshore wind farm in New York and announced tariffs which will increase the cost of the projects.

Nolan stated that the project of Eversource is progressing as planned.

Eversource's earnings in the water distribution segment fell 33.3%, to $3.6 millions, from last year.

Eversource has agreed to sell Aquarion Water in January. The utility firm acquired the unit in 2017 for $2.4 billion. Eversource is looking to reduce its debt and concentrate on its electricity and natural gas business.

Eversource reported net income of $550.8 millions attributable to the common shareholders for the quarter ending March 31. This is up 5.5% compared to a year ago.

(source: Reuters)