John Moreira
Chief Financial Officer and Executive Vice President at Eversource Energy
Thank you, Joe. And good morning, everyone. This morning, I will discuss our third-quarter earnings results, including the impact from our offshore wind divestiture, provide a brief regulatory update, and review our financing activity.
In the third-quarter, we completed the sale of the offshore wind investment. As a result, we recognized an aggregate net loss on the divestiture of $524 million. Included in this loss was approximately $365 million related to obligations under the sale terms with GIP, the majority of which is expected to settle once Revolution Wind reaches its commercial operation date in 2026.
This estimate reflects the assessment of costs associated with the previously announced delay to the in-service date and higher projected construction costs of Revolution Wind along with other components of the sales agreement with GIP.
Turning to the quarterly earnings results on slide seven. GAAP results for the third-quarter were a loss of $0.33 per share. These results include an after-tax loss of $1.46 per share related to the offshore wind divestiture. Absent the offshore wind after-tax loss, recurring earnings were $1.13 per share in the third-quarter compared with GAAP and recurring earnings of $0.97 per share for the third-quarter of last year.
Breaking down the third-quarter earnings results by segment, starting with electric transmission, which earned $0.49 per share compared with earnings of $0.46 per share in 2023. Electric transmission earnings increased due to our continued investment in infrastructure needs. Electric distribution earnings were $0.57 per share for the quarter compared with earnings of $0.50 per share in 2023. Improved results were primarily driven by base distribution rate increases at NSTAR Electric and at PSNH, offset by higher interest, depreciation, and property tax expenses.
Our natural gas distribution business lost $0.09 per share for the quarter compared with a loss of $0.10 per share last year. The improved results were due to higher revenues from investments in natural gas infrastructure, partially offset by higher property taxes, depreciation, and interest expenses.
The water distribution segment contributed $0.07 per share this quarter compared with $0.05 per share last year. The increase in earnings was primarily due to lower depreciation expense and higher revenues from a water company acquisition that closed in late 2023. Eversource parent and other companies excluding the loss from offshore wind, earned $0.09 per share this quarter compared with recurring earnings of $0.06 per share last year. The improved third-quarter results primarily reflect a lower effective tax rate, partially offset by higher interest expense.
Overall, our third-quarter earnings results were in line with our expectations. We are updating our full-year 2024 recurring EPS guidance to a range of $4.52 to $4.60 due to higher than anticipated interest expense. We reaffirm our longer-term 5% to 7% EPS growth rate.
Turning to our regulatory update on slide eight. Starting with Massachusetts, as Joe mentioned, we received a decision in August on our Electric Sector Modernization Plan or ESMP. As a reminder, we filed an initial draft of the ESMP with the Grid Modernization Advisory Council in September of 2023 for their 70-day review.
We held stakeholder workshops in November followed by our final ESMP filing with the Massachusetts DPU in January of this year, which incorporated feedback from the Advisory Council and stakeholder recommendations. I'm pleased to report that this collaborative approach between the state's utilities and key stakeholders to enable a clean energy future resulted in the approval of an incremental $600 million of distribution investments to increase resiliency and to interconnect clean energy resources.
As a result, we have increased our five-year capital investment forecast to $23.7 billion. Also in Massachusetts in late October, as per our settlement agreement when we acquired EGMA, we received approval for our first rate-based reset filing. This filing will incorporate the infrastructure investments that have increased our rate base from approximately $800 million to $1.7 billion as of the end of 2023.
This rate-based reset is subject to a cap on revenue change. With the application of this revenue cap, we will implement a revenue increase of $77 million this year and $62 million in 2025. As a reminder, the next rate base reset is expected to be November 1 of 2027, covering investments through 2026.
Turning to New Hampshire, we are working through the cost prudency review of our late 2022 through early 2023 storm costs of $232 million, where we expect a final decision in the first-half of next year. As a reminder, the determination of the final storm costs for recovery will be incorporated into our June 2024 rate case filing. And we anticipate final rates will be effective next summer.
As part of the New Hampshire general rate case review, we have proposed to implement a four-year performance-based rate making plan, including a capital support mechanism that would adjust rates annually. Interim rates reflecting a $61 million increase took effect on August 1, providing rate stability for customers and enhanced cash flows for the company.
Moving to Connecticut. As Joe mentioned, last week we filed written exceptions to PURA's draft decision in the AMI cost recovery proceeding. The schedule calls for a final decision later this month. And we are hopeful that the decision will provide the transparency needed to undertake this critical investment.
Also in Connecticut, we expect to file a rate case for Yankee Gas shortly, where we have an operating revenue deficiency of approximately $210 million. This reflects core capital investments made since 2021 and projected investments through late 2026. Approval of our rate request will allow us to recover those costs and continue to make important investments in the future, keeping our system safe and reliable for our 252,000 customers in Connecticut.
Turning to our balance sheet improvements. We have provided several major drivers that we expect to enhance our FFO-to-debt metrics, as shown on slide nine. With the Connecticut rate adjustment related to public benefit costs in place effective July 1, our scheduled distribution rate increases and closing of our offshore wind sales in the third-quarter, along with additional regulatory rate recoveries and tax benefits, we continue to tick off a number of items to improve our cash flow position and make progress towards our FFO-to-debt target by 2025.
On the sale of our Aquarion water business, we have recently launched the second phase of the process, which would enable closing a sale by the end of 2025. Regarding our equity issuances, we have raised approximately $1 billion of equity through our ATM program and issued approximately 15.7 million common shares to date through October '24. In addition, we have issued 1.1 million shares of treasury stock.
In summary, as you can see on slide 11, we have a proven track record of earnings and dividend growth. And we are confident that our updated $23.7 billion five-year capital forecast and our forecasted financing plan will enable us to drive a 5% to 7% EPS growth rate through 2028, based off of our 2023 recurring EPS of $4.34.
I will now turn the call back to Rima for Q&A.
