State utility regulators on Wednesday approved Eversource’s request to borrow up to $1.15 billion for its Connecticut electric utility through the end of 2027, at a time when rising interest rates are driving up what the company pays to borrow. The Public Utilities Regulatory Authority’s decision allows Connecticut Light and Power Co., which does business as Eversource, to issue bonds or unsecured notes, in one or more batches, with maturities of one to 30 years. Eversource plans to use the money for capital projects and to pay off $500 million in bonds that come due in March 2027, according to its application. Those bonds carry a 3.2% interest rate. The replacement debt will cost more. As of late September, Eversource estimated that a new 10-year bond would carry a rate of about 5.98%. That was up from 5.15% when the company prepared its application, as Treasury yields climbed. Eversource expects to spend $2 billion on capital projects in Connecticut in 2026 and 2027. It plans to cover that spending and the maturing bonds with about $1 billion in cash from operations, the new long-term debt and $350 million in short-term borrowing, according to the application.
Regulators approve up to $1.15B in new borrowing for Eversource as interest costs climb
