Feb 11 (Reuters) - Utility firm Eversource Energy ( ES )

reported a fourth-quarter profit on Tuesday, driven by higher

electricity rates.

Regulated utilities use rate case proceedings to seek rate

increases, basing their appeals on their investments or expenses

incurred in delivering services.

The company reported a profit of $72.5 million, or 20 cents

per share, for the quarter ended December 31, compared to a loss

of $1.29 billion, or $3.68 per share, in the year-ago quarter.

However, the fourth-quarter earnings were pressured by a

$298.3 million loss on the pending sale of its water

distribution business.

In January, Eversource agreed to sell its public water

supply unit in a deal worth $2.4 billion, as the utility firm

aims to pare debt and focus on its primary businesses of

electricity and natural gas.

The company had purchased Connecticut-based Aquarion Water

in 2017 for about $1.7 billion, as part of its strategy to

diversify into the water supply business.

Eversource Energy ( ES ) supplies electricity and natural gas to

about 4 million customers across Connecticut, Massachusetts and

New Hampshire.

The company reported a loss in the fourth quarter of 2023,

dragged down by a $1.62 billion impairment charge on its

offshore wind investments, which it divested by selling a 50%

stake in three wind projects to joint venture partner Ørsted.