EVERSOURCE, New England’s largest utility, stated on Thursday that it plans to exit the offshore wind enterprise and write down the worth of its holdings by $220 million to $280 million.

The utility stated it’s promoting its 50 % stake in an undeveloped 175,000-acrea lease space 25 miles off the coast of Massachusetts for $625 million in money to its authentic accomplice on the deal, Orsted. The corporate additionally stated it plans to promote its 50 % stake in three different wind farms — South Fork Wind, Revolution Wind, and Dawn Wind – by the tip of June. Orsted is Eversource’s 50-50 accomplice on all three of these tasks as effectively.

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About Bruce Mohl

Bruce Mohl is the editor of CommonWealth journal. Bruce got here to CommonWealth from the Boston Globe, the place he spent almost 30 years in all kinds of positions masking enterprise and politics. He coated the Massachusetts State Home and served because the Globe’s State Home bureau chief within the late Eighties. He additionally reported for the Globe’s Highlight Workforce, successful a Loeb award in 1992 for protection of conflicts of curiosity within the state’s pension system. He served because the Globe’s political editor in 1994 and went on to cowl client points for the newspaper. At CommonWealth, Bruce helped launch the journal’s web site and has written about a variety of points with a particular deal with politics, tax coverage, vitality, and playing. Bruce is a graduate of Ohio Wesleyan College and the Fletcher Faculty of Regulation and Diplomacy at Tufts College. He lives in Dorchester.

About Bruce Mohl

Bruce Mohl is the editor of CommonWealth journal. Bruce got here to CommonWealth from the Boston Globe, the place he spent almost 30 years in all kinds of positions masking enterprise and politics. He coated the Massachusetts State Home and served because the Globe’s State Home bureau chief within the late Eighties. He additionally reported for the Globe’s Highlight Workforce, successful a Loeb award in 1992 for protection of conflicts of curiosity within the state’s pension system. He served because the Globe’s political editor in 1994 and went on to cowl client points for the newspaper. At CommonWealth, Bruce helped launch the journal’s web site and has written about a variety of points with a particular deal with politics, tax coverage, vitality, and playing. Bruce is a graduate of Ohio Wesleyan College and the Fletcher Faculty of Regulation and Diplomacy at Tufts College. He lives in Dorchester.

Eversource stated it believes an “other-than-temporary impairment exists” on the corporate’s offshore wind enterprise, which can end in a discount in earnings of
$220 million to $280 million.. The corporate stated its estimate of the honest worth of the offshore wind enterprise relies on the anticipated potential gross sales value of Eversource’s 50 % curiosity of the three contracted tasks, in addition to the $625 million sale of the uncommitted lease space.

“Whereas we’re pursuing an exit of the unregulated offshore wind enterprise, Eversource is totally dedicated to being a catalyst to the area’s clear vitality transition, with our regulated firms constructing lots of the services that may allow greater than 9,000 megawatts of offshore wind era to succeed in the houses and companies of Southern New England,” stated Joe Nolan, Eversource’s president, CEO, and board chair.

The impairment suggests simply how robust financially the offshore wind enterprise is correct now. Avangrid and South Coast Wind have each indicated they should get out of contracts they signed final yr with ratepayers in Massachusetts due to altering financial circumstances. Eversource’s regulated utility in Massachusetts, which helped negotiate the contracts, has refused to budge on the phrases.

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