The rate reductions affect not only the parent company and its operations in Connecticut, but also Eversource’s electric and natural gas systems in Massachusetts and New Hampshire. For example, S&P lowered the “issuer credit rating” for legacy Columbia Gas and NStar gas systems from A- to BBB+. Ratings for the company’s electric utilities in Massachusetts, Connecticut and New Hampshire also fell a notch, but to A-, which remains a rock-solid grade. S&P analysts say they generally expect state regulators to allow full recovery of utility operating and capital costs in a timely manner, but given the current trend in Connecticut , S&P instead expects the state’s PURA to issue “less than credit-friendly” rate decisions. in the future.

However, it is too early to know what kind of impact, if any, this change will have on rates in Massachusetts and New Hampshire.

The two utilities have been in conflict with Connecticut regulators over this issue for some time, resulting in a number of appeals in court. On Tuesday, Eversource suggested that the Connecticut government’s position was harming ratepayers by increasing utility borrowing costs and thus having the opposite effect than intended.

“Credit ratings are a report on the financial health of a state’s business environment, and this new rating metric shows that not only is Connecticut failing that test, but there is now a credit rating effect. training for our customers in Massachusetts and New Hampshire as well. » said Eversource Vice President Douglas Horton in a statement. “The negative impact of these credit rating downgrades will be long-lasting and cost customers even more money for decades.” »

Jon Chesto can be contacted at [email protected]. Follow him @jonchesto.