8-KOther EventsExhibits & Filings

EVERSOURCE ENERGY 8-K Report, Corporate Update (Jan 25, 2024)

Filed January 25, 2024For Securities:ES

Summary

Eversource Energy (ES) has filed an 8-K report detailing a significant development concerning the Sunrise Wind offshore wind project. On January 25, 2024, the joint venture between Eversource and Ørsted submitted a new proposal for Sunrise Wind in response to New York's latest offshore wind solicitation. This re-bid aims to secure a contract for the project, which would deliver up to 924 megawatts of clean energy to the state and contribute to New York's renewable energy goals. A key aspect of this announcement is the agreement reached between Eversource and Ørsted regarding project ownership. If Sunrise Wind is awarded a contract, Ørsted will become the sole owner of the project, acquiring Eversource's 50 percent stake. Under this arrangement, Eversource would remain contracted to lead the project's onshore construction. Payment terms for Eversource's share include an initial payment upon closing the transaction and a deferred payment tied to the completion of onshore construction and other milestones.

Key Highlights

  • 1Eversource Energy and Ørsted have re-bid the Sunrise Wind project in response to New York's latest offshore wind solicitation.
  • 2If successful, the Sunrise Wind project will deliver up to 924 megawatts of clean energy to New York.
  • 3Ørsted will become the sole owner of Sunrise Wind if the project is awarded a contract, acquiring Eversource's 50% stake.
  • 4Eversource will remain responsible for leading the onshore construction of the Sunrise Wind project under the new ownership structure.
  • 5Payment for Eversource's share will be structured with an upfront payment and deferred payments contingent on project milestones.
  • 6The project is expected to be completed in 2026, supporting New York's 70% renewable energy mandate by 2030.
  • 7If the project is not selected, the existing 50/50 joint venture remains in place, and parties will reassess options.

Frequently Asked Questions

The 8-K filing announces that Eversource Energy and Ørsted have submitted a new proposal for the Sunrise Wind offshore wind project in response to New York's latest solicitation. It also details an agreement for Ørsted to become the sole owner if the project is awarded.

If Sunrise Wind is awarded a contract, Ørsted will acquire Eversource's 50 percent ownership in the project. Eversource will still be involved by leading the onshore construction.

If the project is awarded and the sale proceeds, Ørsted will pay Eversource 50 percent of the negotiated purchase price upon closing the transaction. The remaining 50 percent will be paid when onshore construction is completed and certain other milestones are met.

If Sunrise Wind is not selected in the re-bid, the current contract will be canceled as per state requirements, and the existing 50/50 joint venture between Eversource and Ørsted will remain in place. The companies will then assess their options for the project and its assets.