EVERSOURCE, New England’s biggest utility, stated on Thursday that it plans to exit the offshore wind company and create down the worth of its holdings by $220 million to $280 million.
The utility stated it is promoting its 50 % stake in an undeveloped 175,000-acrea lease location 25 miles off the coast of Massachusetts for $625 million in money to its original companion on the deal, Orsted. The business also stated it plans to sell its 50 % stake in 3 other wind farms — South Fork Wind, Revolution Wind, and Sunrise Wind – by the finish of June. Orsted is Eversource’s 50-50 companion on all 3 of these projects as effectively.
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Bruce Mohl is the editor of CommonWealth magazine. Bruce came to CommonWealth from the Boston Globe, exactly where he spent almost 30 years in a wide wide variety of positions covering company and politics. He covered the Massachusetts State Property and served as the Globe’s State Property bureau chief in the late 1980s. He also reported for the Globe’s Spotlight Group, winning a Loeb award in 1992 for coverage of conflicts of interest in the state’s pension method. He served as the Globe’s political editor in 1994 and went on to cover customer difficulties for the newspaper. At CommonWealth, Bruce helped launch the magazine’s web-site and has written about a wide variety of difficulties with a unique concentrate on politics, tax policy, power, and gambling. Bruce is a graduate of Ohio Wesleyan University and the Fletcher College of Law and Diplomacy at Tufts University. He lives in Dorchester.
About Bruce Mohl
Bruce Mohl is the editor of CommonWealth magazine. Bruce came to CommonWealth from the Boston Globe, exactly where he spent almost 30 years in a wide wide variety of positions covering company and politics. He covered the Massachusetts State Property and served as the Globe’s State Property bureau chief in the late 1980s. He also reported for the Globe’s Spotlight Group, winning a Loeb award in 1992 for coverage of conflicts of interest in the state’s pension method. He served as the Globe’s political editor in 1994 and went on to cover customer difficulties for the newspaper. At CommonWealth, Bruce helped launch the magazine’s web-site and has written about a wide variety of difficulties with a unique concentrate on politics, tax policy, power, and gambling. Bruce is a graduate of Ohio Wesleyan University and the Fletcher College of Law and Diplomacy at Tufts University. He lives in Dorchester.
Eversource stated it believes an “other-than-short-term impairment exists” on the company’s offshore wind company, which will outcome in a reduction in earnings of
$220 million to $280 million.. The business stated its estimate of the fair worth of the offshore wind company is primarily based on the anticipated possible sales price tag of Eversource’s 50 % interest of the 3 contracted projects, as effectively as the $625 million sale of the uncommitted lease location.
“While we are pursuing an exit of the unregulated offshore wind company, Eversource is completely committed to getting a catalyst to the region’s clean power transition, with our regulated firms creating a lot of of the facilities that will allow a lot more than 9,000 megawatts of offshore wind generation to attain the properties and firms of Southern New England,” stated Joe Nolan, Eversource’s president, CEO, and board chair.
The impairment suggests just how difficult financially the offshore wind company is ideal now. Avangrid and South Coast Wind have each indicated they will need to get out of contracts they signed final year with ratepayers in Massachusetts for the reason that of altering financial situations. Eversource’s regulated utility in Massachusetts, which helped negotiate the contracts, has refused to budge on the terms.
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