Federal regulators have ordered investor-owned electric utilities in New England to issue $1.5 billion in refunds to ratepayers, but the companies are seeking a delay in the repayment process amid ongoing legal challenges. The Federal Energy Regulatory Commission (FERC) ruled in March that the utilities had overcharged customers through wholesale transmission rate returns administered by ISO New England, dating back to October 2011 through February 2024.

FERC directed approximately a dozen utilities to return these excess charges within 30 days of the order, setting a deadline for late April. However, the utilities have requested significantly more time to calculate and distribute the refunds. On April 2, they asked the commission for an extension until December 2027, citing the complexity of the refund process. Two major companies, Eversource Energy and Avangrid—owner of United Illuminating and Central Maine Power—have additionally petitioned FERC to stay the refund order entirely pending the resolution of legal appeals.

Eversource, New England’s largest transmission owner and responsible for close to $880 million of the refunds, argues that immediate compliance would cause “irreparable and irreversible harm” to the company. Avangrid faces a refund obligation of $203 million and has joined Eversource in requesting a stay to avoid what they describe as “rate whiplash,” a situation in which ratepayers might receive refunds only to have those repayments reversed if the courts later rule in favor of the utilities.

Eversource’s chief financial officer, John Moreira, outlined in a sworn affidavit that the retroactive refund requirement is adversely affecting the company’s credit ratings and increasing borrowing costs. This, in turn, could drive up rates charged to consumers. Moreira also noted that the company’s stock has been significantly depressed due to regulatory challenges, including a roughly 25 percent valuation discount compared with similar utilities in other states. Following the FERC order's announcement on March 19, Eversource’s market capitalization decreased by more than $2 billion, although the stock has since recovered some losses.

The utility cautioned that without a stay, it could be forced to raise capital at unfavorable prices amid the depressed stock valuation, compounding financial stress on shareholders. Moreira warned that these financial strains might ultimately lead to increased consumer rates and delayed or canceled investments in critical infrastructure development.

FERC has not publicly commented on the utilities’ requests, which are expected to be considered by the commission by Monday. The outcome will determine the timeline for reimbursements and the trajectory of ongoing litigation surrounding transmission rate returns in New England.