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

1. Cybersecurity Risks:newCybersecurity
2. 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.rewordedCybersecurity
3. The 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.
4. 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.newAI
5. Regulatory, Legislative and Compliance Risks:
6. The actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity.
7. Rate Regulation, Cost Recovery and Affordabilitynew

Read these in Item 1A · See the changes

1. We are exposed to significant reputational risks, which make us vulnerable to increased regulatory oversight or other sanctions.
2. 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.
3. Offshore Wind Contingent Liability and Tax Risk:
4. 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.reworded
5. Risks Related to the Environment and Catastrophic Events:
6. 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.reworded
7. 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.
8. Adequacy of water supplies and contamination of our water supplies, the failure of dams on reservoirs providing water to our customers, or requirements to repair, upgrade or dismantle any of these dams, may disrupt our ability to distribute water to our customers and result in substantial additional costs, which could adversely affect our financial position, results of operations, and cash flows.
9. Physical 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.
10. Business and Operational Risks:
11. 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.
12. Our 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.
13. New technology and alternative energy sources could adversely affect our operations and financial results.
14. 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.
15. 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.
16. Financial, Economic, and Market Risks:
17. Limits on our access to, or increases in, the cost of capital may adversely impact our ability to execute our business plan.
18. Market performance or changes in assumptions may require us to make significant contributions to our pension and other postretirement benefit plans.
19. Goodwill and long-lived assets if impaired and written down, could adversely affect our future operating results and total capitalization.reworded
20. Our counterparties may not meet their obligations to us or may elect to exercise their termination rights, which could adversely affect our earnings.
21. As 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.

Read these in Item 1A · See the changes

Headings in the FY2024 10-K with no match this year.

1. Cybersecurity Threats and Attacks: