false--12-31--12-31--12-31--12-31Q1202000000727410000013372000031525600000234266760.00122482100075406000104970009734800026207800071111000111540001308760000.5350.5675380000000100000000100000000245000000.03950.0510.04460.03450.02330.03150.0487P5YP5Y1900000466000000001460000031000002140000039100000114660000046600000155600000 0000072741 us-gaap:OperatingSegmentsMember es:WholesaleTransmissionRevenueMember es:EversourceElectricTransmissionMember 2020-01-01 2020-03-31




	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ~~FORM 10-Q~~
x	FORM	10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended	March 31, ~~2019~~2020
	or
¨ ☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________

Registrant; State of Incorporation; Address; Telephone Number;

Commission File Number; and I.R.S. Employer Identification No.

EVERSOURCE ENERGY

(a Massachusetts voluntary association)

300 Cadwell Drive, Springfield, Massachusetts 01104

Telephone: (800) 286-5000

Commission File Number: 1-5324

I.R.S. Employer Identification No. 04-2147929

THE CONNECTICUT LIGHT AND POWER COMPANY

(a Connecticut corporation)

107 Selden Street, Berlin, Connecticut 06037-1616

Telephone: (800) 286-5000

Commission File Number: 0-00404

I.R.S. Employer Identification No. 06-0303850

NSTAR ELECTRIC COMPANY

(a Massachusetts corporation)

800 Boylston Street, Boston, Massachusetts 02199

Telephone: (800) 286-5000

Commission File Number: 1-02301

I.R.S. Employer Identification No. 04-1278810

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

(a New Hampshire corporation)

Energy Park

780 North Commercial Street, Manchester, New Hampshire 03101-1134

Telephone: (800) 286-5000

Commission File Number: 1-6392

I.R.S. Employer Identification No. 02-0181050



~~Commission~~ ~~File Number~~			~~Registrant; State~~Securities registered pursuant to Section 12(b) of ~~Incorporation;~~ ~~Address; and Telephone Number~~	~~I.R.S. Employer~~ ~~Identification No.~~ the Act:

~~1-5324~~	~~EVERSOURCE ENERGY~~ ~~(a Massachusetts voluntary association)~~ ~~300 Cadwell Drive~~ ~~Springfield, Massachusetts 01104~~ ~~Telephone: (800) 286-5000~~	~~04-2147929~~

~~0-00404~~	~~THE CONNECTICUT LIGHT AND POWER COMPANY~~ ~~(a Connecticut corporation)~~ ~~107 Selden Street~~ ~~Berlin, Connecticut 06037-1616~~ ~~Telephone: (800) 286-5000~~	~~06-0303850~~
Title of each class
~~1-02301~~	~~NSTAR ELECTRIC COMPANY~~ ~~(a Massachusetts corporation)~~ ~~800 Boylston Street~~ ~~Boston, Massachusetts 02199~~ ~~Telephone: (800) 286-5000~~	~~04-1278810~~
Trading Symbol(s)		Name of each exchange on which registered
~~1-6392~~	~~PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE~~ ~~(a New Hampshire corporation)~~ ~~Energy Park~~ ~~780 North Commercial Street~~ ~~Manchester, New Hampshire 03101-1134~~ ~~Telephone: (800) 286-5000~~	~~02-0181050~~
Common Shares, $5.00 par value per share
ES		New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.



	Yes	No
	x☒	¨☐

Indicate by check mark whether the registrants have submitted electronically ~~and posted on its corporate Web sites, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit ~~and post~~ such files).



	Yes	No
	x☒	¨☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Eversource Energy	Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company

~~Eversource Energy~~	x		¨		¨		¨		¨☐
The Connecticut Light and Power Company	¨Large accelerated filer	☐	¨ Accelerated filer	☐	xNon-accelerated filer	☒	¨Smaller reporting company	☐	¨Emerging growth company	☐
NSTAR Electric Company	¨Large accelerated filer	☐	¨ Accelerated filer	☐	xNon-accelerated filer	☒	¨Smaller reporting company	☐	¨Emerging growth company	☐
Public Service Company of New Hampshire	¨Large accelerated filer	☐	¨ Accelerated filer	☐	xNon-accelerated filer	☒	¨Smaller reporting company	☐	¨Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):



	Yes	No

Eversource Energy	¨☐	x☒
The Connecticut Light and Power Company	¨☐	x☒
NSTAR Electric Company	¨☐	x☒
Public Service Company of New Hampshire	¨☐	x☒

Indicate the number of shares outstanding of each of the ~~issuers'~~registrant's classes of common stock, as of the latest practicable date:



Company - Class of Stock	Outstanding as of April 30, ~~2019~~2020

Eversource Energy Common Shares, $5.00 par value	~~317,461,097~~ 336,442,541	shares
The Connecticut Light and Power Company Common Stock, $10.00 par value	6,035,205	shares
NSTAR Electric Company Common Stock, $1.00 par value	200	shares
Public Service Company of New Hampshire Common Stock, $1.00 par value	301	shares

Eversource Energy holds all of the 6,035,205 shares, 200 shares, and 301 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire, respectively.

NSTAR Electric Company and Public Service Company of New Hampshire each meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10‑Q.

Eversource Energy, The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire each separately file this combined Form 10-Q. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants.

GLOSSARY OF TERMS

The following is a glossary of abbreviations and acronyms that are found in this report:



Current or former Eversource Energy companies, segments or investments:
Eversource, ES or the Company	Eversource Energy and subsidiaries
Eversource parent or ES parent	Eversource Energy, a public utility holding company
ES parent and other companies	ES parent and other companies are comprised of Eversource parent, Eversource Service, Eversource Water Ventures, Inc. (parent company of Aquarion), and other subsidiaries, which primarily includes our unregulated businesses, HWP Company, The Rocky River Realty Company (a real estate subsidiary), the consolidated operations of CYAPC and YAEC, and Eversource parent's equity ownership interests that are not consolidated
CL&P	The Connecticut Light and Power Company
NSTAR Electric	NSTAR Electric Company
PSNH	Public Service Company of New Hampshire
PSNH Funding	PSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH
NSTAR Gas	NSTAR Gas Company
Yankee Gas	Yankee Gas Services Company
Aquarion	Eversource Aquarion Holdings, Inc. and its subsidiaries ~~(formerly known as Macquarie Utilities Inc)~~
NPT	Northern Pass Transmission LLC
Northern Pass	The HVDC and associated alternating-current transmission line project from Canada into New Hampshire
HEEC	Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric
Eversource Service	Eversource Energy Service Company
Bay State Wind	~~A project~~Bay State Wind LLC, an offshore wind business being developed jointly by Eversource and Denmark-based Ørsted, ~~(formerly known as DONG Energy) to construct~~which holds the Sunrise Wind project
North East Offshore	North East Offshore, LLC, an offshore wind ~~farm off~~business holding company being developed jointly by Eversource and Denmark-based Ørsted, which holds the ~~coast of Massachusetts~~Revolution Wind and South Fork Wind projects
CYAPC	Connecticut Yankee Atomic Power Company
MYAPC	Maine Yankee Atomic Power Company
YAEC	Yankee Atomic Electric Company
Yankee Companies	CYAPC, YAEC and MYAPC
Regulated companies	The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, NPT, Aquarion, and the solar power facilities of NSTAR Electric
Regulators:
DEEP	Connecticut Department of Energy and Environmental Protection
DOE	U.S. Department of Energy
DOER	Massachusetts Department of Energy Resources
DPU	Massachusetts Department of Public Utilities
EPA	U.S. Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
ISO-NE	ISO New England, Inc., the New England Independent System Operator
MA DEP	Massachusetts Department of Environmental Protection
NHPUC	New Hampshire Public Utilities Commission
PURA	Connecticut Public Utilities Regulatory Authority
SEC	U.S. Securities and Exchange Commission
SJC	Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
ADIT	Accumulated Deferred Income Taxes
AFUDC	Allowance For Funds Used During Construction
AOCI	Accumulated Other Comprehensive Income
ARO	Asset Retirement Obligation
Bcf	Billion cubic feet
C&LM	Conservation and Load Management
CfD	Contract for Differences
CTA	Competitive Transition Assessment
CWIP	Construction Work in Progress
EDC	Electric distribution company
EDIT	Excess Deferred Income Taxes
EPS	Earnings Per Share
ERISA	Employee Retirement Income Security Act of 1974



ESOP	Employee Stock Ownership Plan
Eversource ~~2018~~2019 Form 10-K	The Eversource Energy and Subsidiaries ~~2018~~2019 combined Annual Report on Form 10-K as filed with the SEC
Fitch	Fitch Ratings
FMCC	Federally Mandated Congestion Charge
FTR	Financial Transmission Rights
GAAP	Accounting principles generally accepted in the United States of America
GSC	Generation Service Charge
GSRP	Greater Springfield Reliability Project
GWh	Gigawatt-Hours
HQ	Hydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDC	High-voltage direct current
Hydro Renewable Energy	Hydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec
IPP	Independent Power Producers
ISO-NE Tariff	ISO-NE FERC Transmission, Markets and Services Tariff
kV	Kilovolt
kVa	Kilovolt-ampere
kW	Kilowatt (equal to one thousand watts)
~~kWh~~	~~Kilowatt-Hours (the basic unit of electricity energy equal to one kilowatt of power supplied for one hour)~~
LBR	Lost Base Revenue
LNG	Liquefied natural gas
LRS	Supplier of last resort service
MG	Million gallons
MGP	Manufactured Gas Plant
MMBtu	One million British thermal units
MMcf	Million cubic feet
Moody's	Moody's Investors Services, Inc.
MW	Megawatt
MWh	Megawatt-Hours
NEEWS	New England East-West Solution
NETOs	New England Transmission Owners (including Eversource, National Grid and Avangrid)
OCI	Other Comprehensive Income/(Loss)
PAM	Pension and PBOP Rate Adjustment Mechanism
PBOP	Postretirement Benefits Other Than Pension
PBOP Plan	Postretirement Benefits Other Than Pension Plan
~~PCRBs~~	~~Pollution Control Revenue Bonds~~
Pension Plan	Single uniform noncontributory defined benefit retirement plan
PPA	~~Pension Protection Act~~Power purchase agreement
RECs	Renewable Energy Certificates
Regulatory ROE	The average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment
~~RNS~~	~~Regional Network Service~~
ROE	Return on Equity
RRBs	Rate Reduction Bonds or Rate Reduction Certificates
RSUs	Restricted share units
S&P	Standard & Poor's Financial Services LLC
SBC	Systems Benefits Charge
SCRC	Stranded Cost Recovery Charge
SERP	Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SS	Standard service
TCAM	Transmission Cost Adjustment Mechanism
TSA	Transmission Service Agreement
UI	The United Illuminating Company
VIE	Variable Interest Entity

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

TABLE OF CONTENTS



		Page
PART I – FINANCIAL INFORMATION

ITEM 1.	Financial Statements (Unaudited)

	Eversource Energy and Subsidiaries (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income	2
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Statements of Common Shareholders' Equity	3
	Condensed Consolidated Statements of Cash Flows	4

	The Connecticut Light and Power Company (Unaudited)
	Condensed Balance Sheets	5
	Condensed Statements of Income	6
	Condensed Statements of Comprehensive Income	6
	Condensed Statements of Common Stockholder's Equity	7
	Condensed Statements of Cash Flows	8

	NSTAR Electric Company and Subsidiary (Unaudited)
	Condensed Consolidated Balance Sheets	9
	Condensed Consolidated Statements of Income	10
	Condensed Consolidated Statements of Comprehensive Income	10
	Condensed Consolidated Statements of Common Stockholder's Equity	11
	Condensed Consolidated Statements of Cash Flows	12

	Public Service Company of New Hampshire and Subsidiaries (Unaudited)
	Condensed Consolidated Balance Sheets	13
	Condensed Consolidated Statements of Income	14
	Condensed Consolidated Statements of Comprehensive Income	14
	Condensed Consolidated Statements of Common Stockholder's Equity	15
	Condensed Consolidated Statements of Cash Flows	16

	Combined Notes to Condensed Financial Statements (Unaudited)	17

ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	37
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries	49

~~ITEM 3.~~	~~Quantitative and Qualitative Disclosures About Market Risk~~	53

ITEM 4.3.	~~Controls~~Quantitative and ~~Procedures~~Qualitative Disclosures About Market Risk	5357

ITEM 4.	Controls and Procedures	57

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	5458

ITEM 1A.	Risk Factors	5458

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5459

ITEM 6.	Exhibits	5560

SIGNATURES		5662

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2019			As of December 31, 2018			As of March 31, 2020			As of December 31, 2019

ASSETS
Current Assets:
Cash	$	35,145		$	108,068		$	47,425		$	15,432
Receivables, Net	1,140,348			994,055
Receivables, Net (net of allowance for uncollectible accounts of $262,078 and $224,821 as of March 31, 2020 and December 31, 2019, respectively)							1,018,941			989,383
Unbilled Revenues	159,288			176,285			155,224			181,006
Fuel, Materials, Supplies and Inventory	277,104			238,042
Fuel, Materials, Supplies and REC Inventory							286,498			235,471
Regulatory Assets	507,255			514,779			785,125			651,112
Prepayments and Other Current Assets	181,724			260,995			269,457			342,135
Total Current Assets	2,300,864			2,292,224			2,562,670			2,414,539

Property, Plant and Equipment, Net	26,032,781			25,610,428			28,041,356			27,585,470

Deferred Debits and Other Assets:
Regulatory Assets	4,589,427			4,631,137			4,778,321			4,863,639
Goodwill	4,427,266			4,427,266			4,427,266			4,427,266
Investments in Unconsolidated Affiliates	711,476			464,286			876,328			871,633
Marketable Securities	415,405			417,508			418,715			449,130
Other Long-Term Assets	463,788			398,407			544,330			512,238
Total Deferred Debits and Other Assets	10,607,362			10,338,604			11,044,960			11,123,906

Total Assets	$	38,941,007		$	38,241,256		$	41,648,986		$	41,123,915

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	1,477,830		$	910,000		$	661,420		$	889,084
Long-Term Debt – Current Portion	805,519			837,319			532,440			327,411
Rate Reduction Bonds – Current Portion	43,210			52,332			43,210			43,210
Accounts Payable	1,006,774			1,119,995			914,333			1,147,872
Renewable Portfolio Standards Compliance Obligations							192,660			160,149
Regulatory Liabilities	385,442			370,230			439,859			361,152
Other Current Liabilities	840,587			823,006			611,706			676,685
Total Current Liabilities	4,559,362			4,112,882			3,395,628			3,605,563

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	3,543,052			3,506,030			3,816,988			3,755,777
Regulatory Liabilities	3,627,389			3,609,475			3,668,158			3,658,042
Derivative Liabilities	372,957			379,562			342,990			338,710
Asset Retirement Obligations							489,519			488,511
Accrued Pension, SERP and PBOP	939,786			962,510			1,331,884			1,370,245
Other Long-Term Liabilities	1,259,400			1,196,336			821,195			810,553
Total Deferred Credits and Other Liabilities	9,742,584			9,653,913			10,470,734			10,421,838

Long-Term Debt	12,284,330			12,248,743			13,898,581			13,770,828

Rate Reduction Bonds	561,727			583,331			518,517			540,122

Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570			155,570			155,570			155,570

Common Shareholders' Equity:
Common Shares	1,669,392			1,669,392			1,759,092			1,729,292
Capital Surplus, Paid In	6,242,089			6,241,222			7,479,689			7,087,768
Retained Earnings	4,092,895			3,953,974			4,322,825			4,177,048
Accumulated Other Comprehensive Loss	(57,804		)	(60,000		)	(63,111		)	(65,059		)
Treasury Stock	(309,138		)	(317,771		)	(288,539		)	(299,055		)
Common Shareholders' Equity	11,637,434			11,486,817			13,209,956			12,629,994

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	38,941,007		$	38,241,256		$	41,648,986		$	41,123,915

~~The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.~~

~~EVERSOURCE ENERGY AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF INCOME~~

~~(Unaudited)~~

For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information) 2019 2018

Operating Revenues $ 2,415,792
$ 2,287,962

Operating Expenses:
Purchased Power, Fuel and Transmission 974,882
946,747
Operations and Maintenance 335,597
332,549
Depreciation 214,948
204,266
Amortization 70,961
45,194
Energy Efficiency Programs 140,116
134,241
Taxes Other Than Income Taxes 184,588
182,433
Total Operating Expenses 1,921,092
1,845,430
Operating Income 494,700
442,532
Interest Expense 131,734
121,129
Other Income, Net 30,985
33,789
Income Before Income Tax Expense 393,951
355,192
Income Tax Expense 83,393
83,766
Net Income 310,558
271,426
Net Income Attributable to Noncontrolling Interests 1,880
1,880
Net Income Attributable to Common Shareholders $ 308,678
$ 269,546

Basic and Diluted Earnings Per Common Share $ 0.97
$ 0.85

Weighted Average Common Shares Outstanding:
Basic 317,624,593
317,397,052
Diluted 318,316,082
317,992,999

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ~~COMPREHENSIVE~~ INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2019 2018

Net Income $ 310,558
$ 271,426
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments 316
724
Changes in Unrealized Gains/(Losses) on Marketable Securities 655
(444 )
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 1,225
2,993
Other Comprehensive Income, Net of Tax 2,196
3,273
Comprehensive Income Attributable to Noncontrolling Interests (1,880 ) (1,880 )
Comprehensive Income Attributable to Common Shareholders $ 310,874
$ 272,819



	For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information)	2020		2019

Operating Revenues	$	2,373,726	$	2,415,792

Operating Expenses:
Purchased Power, Fuel and Transmission	876,570		974,882
Operations and Maintenance	342,062		335,597
Depreciation	236,211		214,948
Amortization	49,776		70,961
Energy Efficiency Programs	148,393		140,116
Taxes Other Than Income Taxes	181,594		184,588
Total Operating Expenses	1,834,606		1,921,092
Operating Income	539,120		494,700
Interest Expense	134,715		131,734
Other Income, Net	24,104		30,985
Income Before Income Tax Expense	428,509		393,951
Income Tax Expense	91,876		83,393
Net Income	336,633		310,558
Net Income Attributable to Noncontrolling Interests	1,880		1,880
Net Income Attributable to Common Shareholders	$	334,753	$	308,678

Basic and Diluted Earnings Per Common Share	$	1.01	$	0.97

Weighted Average Common Shares Outstanding:
Basic	331,102,237		317,624,593
Diluted	332,937,153		318,316,082

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)



	For the Three Months Ended March 31,
(Thousands of Dollars)	2020			2019

Net Income	$	336,633		$	310,558
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	229			316
Changes in Unrealized Gains on Marketable Securities	160			655
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	1,559			1,225
Other Comprehensive Income, Net of Tax	1,948			2,196
Comprehensive Income Attributable to Noncontrolling Interests	(1,880		)	(1,880		)
Comprehensive Income Attributable to Common Shareholders	$	336,701		$	310,874

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)


	For the Three Months Ended March 31, 2019																		For the Three Months Ended March 31, 2020
	Common Shares			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Common Shareholders' Equity			Common Shares			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount																	Shares	Amount
Balance as of January 1, 2019	316,885,808	$	1,669,392	$	6,241,222		$	3,953,974		$	(60,000	)	$	(317,771	)	$	11,486,817
Balance as of January 1, 2020																			329,880,645	$	1,729,292	$	7,087,768		$	4,177,048		$	(65,059	)	$	(299,055	)	$	12,629,994
Net Income							310,558									310,558									336,633									336,633
Dividends on Common Shares - $0.535 Per Share							(169,757		)							(169,757		)
Dividends on Common Shares - $0.5675 Per Share																									(187,462		)							(187,462		)
Dividends on Preferred Stock							(1,880		)							(1,880		)							(1,880		)							(1,880		)
Issuance of Common Shares - $5 par value																			5,960,000	29,800		402,300												432,100
Long-Term Incentive Plan Activity				(16,609		)										(16,609		)				(15,295		)										(15,295		)
Issuance of Treasury Shares	461,662			17,476									8,633			26,109			570,542			17,230									10,516			27,746
Capital Stock Expense																						(12,314		)										(12,314		)
Adoption of New Accounting Standard (See Note 1B)																									(1,514		)							(1,514		)
Other Comprehensive Income										2,196						2,196												1,948						1,948
Balance as of March 31, 2019	317,347,470	$	1,669,392	$	6,242,089		$	4,092,895		$	(57,804	)	$	(309,138	)	$	11,637,434
Balance as of March 31, 2020																			336,411,187	$	1,759,092	$	7,479,689		$	4,322,825		$	(63,111	)	$	(288,539	)	$	13,209,956


	For the Three Months Ended March 31, 2018																		For the Three Months Ended March 31, 2019
	Common Shares			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Common Shareholders' Equity			Common Shares			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount																	Shares	Amount
Balance as of January 1, 2018	316,885,808	$	1,669,392	$	6,239,940		$	3,561,084		$	(66,403	)	$	(317,771	)	$	11,086,242
Balance as of January 1, 2019																			316,885,808	$	1,669,392	$	6,241,222		$	3,953,974		$	(60,000	)	$	(317,771	)	$	11,486,817
Net Income							271,426									271,426									310,558									310,558
Dividends on Common Shares - $0.505 Per Share							(160,027		)							(160,027		)
Dividends on Common Shares - $0.535 Per Share																									(169,757		)							(169,757		)
Dividends on Preferred Stock							(1,880		)							(1,880		)							(1,880		)							(1,880		)
Long-Term Incentive Plan Activity				(15,320		)										(15,320		)				(16,609		)										(16,609		)
Issuance of Treasury Shares																			461,662			17,476									8,633			26,109
Other Comprehensive Income										3,273						3,273												2,196						2,196
Balance as of March 31, 2018	316,885,808	$	1,669,392	$	6,224,620		$	3,670,603		$	(63,130	)	$	(317,771	)	$	11,183,714
Balance as of March 31, 2019																			317,347,470	$	1,669,392	$	6,242,089		$	4,092,895		$	(57,804	)	$	(309,138	)	$	11,637,434

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2019			2018			2020			2019

Operating Activities:
Net Income	$	310,558		$	271,426		$	336,633		$	310,558
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	214,948			204,266			236,211			214,948
Deferred Income Taxes	18,085			88,481			44,201			18,085
Uncollectible Expense	18,565			19,613			11,353			18,565
Pension, SERP and PBOP Expense/(Income), Net	8,428			(1,965		)
Pension, SERP and PBOP Expense, Net							1,953			8,428
Pension and PBOP Contributions	(4,700		)	(171,244		)	(723		)	(4,700		)
Regulatory (Under)/Over Recoveries, Net	(19,232		)	70,457
Regulatory Underrecoveries, Net							(22,288		)	(19,232		)
Amortization	70,961			45,194			49,776			70,961
Other	(37,310		)	(74,582		)	(33,317		)	(37,310		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(155,823		)	(156,888		)	(55,290		)	(155,823		)
Fuel, Materials, Supplies and Inventory	(39,063		)	(26,956		)
Fuel, Materials, Supplies and REC Inventory							(51,027		)	(39,063		)
Taxes Receivable/Accrued, Net	126,381			(5,061		)	92,140			126,381
Accounts Payable	(13,556		)	(61,571		)	(127,366		)	(60,121		)
Other Current Assets and Liabilities, Net	(70,242		)	(23,456		)	(61,950		)	(70,242		)
Net Cash Flows Provided by Operating Activities	428,000			177,714			420,306			381,435

Investing Activities:
Investments in Property, Plant and Equipment	(674,694		)	(607,334		)	(725,520		)	(628,129		)
Proceeds from Sales of Marketable Securities	234,497			145,438			58,627			234,497
Purchases of Marketable Securities	(237,794		)	(143,264		)	(50,723		)	(237,794		)
Proceeds from the Sale of PSNH Generation Assets	—			130,641
Investments in Unconsolidated Affiliates	(249,138		)	(7,340		)
Investments in Unconsolidated Affiliates, Net							(6,113		)	(249,138		)
Other Investing Activities	4,893			2,140			6,119			4,893
Net Cash Flows Used in Investing Activities	(922,236		)	(479,719		)	(717,610		)	(875,671		)

Financing Activities:
Issuance of Common Shares, Net of Issuance Costs							419,786			—
Cash Dividends on Common Shares	(169,757		)	(160,027		)	(181,608		)	(169,757		)
Cash Dividends on Preferred Stock	(1,880		)	(1,880		)	(1,880		)	(1,880		)
Issuance of Treasury Shares	26,109			—
Increase/(Decrease) in Notes Payable	829,430			(240,005		)
(Decrease)/Increase in Notes Payable							(408,950		)	829,430
Repayment of Rate Reduction Bonds	(30,727		)	—			(21,605		)	(30,727		)
Issuance of Long-Term Debt	—			1,150,000			750,000			—
Retirement of Long-Term Debt	(250,215		)	(150,218		)	(220,253		)	(250,215		)
Other Financing Activities	(9,676		)	(19,140		)	(21,560		)	16,433
Net Cash Flows Provided by Financing Activities	393,284			578,730			313,930			393,284
Net (Decrease)/Increase in Cash and Restricted Cash	(100,952		)	276,725
Net Increase/(Decrease) in Cash and Restricted Cash							16,626			(100,952		)
Cash and Restricted Cash - Beginning of Period	209,324			85,890			117,063			209,324
Cash and Restricted Cash - End of Period	$	108,372		$	362,615		$	133,689		$	108,372

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2019		As of December 31, 2018		As of March 31, 2020		As of December 31, 2019

ASSETS
Current Assets:
Cash	$	7,496	$	87,721	$	3,785	$	—
Receivables, Net	443,684		397,026
Receivables, Net (net of allowance for uncollectible accounts of $130,876 and $97,348 as of March 31, 2020 and December 31, 2019, respectively)					389,102		400,927
Accounts Receivable from Affiliated Companies	30,363		23,082		33,701		24,577
Unbilled Revenues	51,300		56,971		49,982		56,465
Materials and Supplies	52,109		44,529		49,962		50,700
Regulatory Assets	147,712		125,155		290,630		178,607
Prepaid Property Taxes	41,341		19,555
Prepayments and Other Current Assets	20,384		40,724		69,767		73,184
Total Current Assets	794,389		794,763		886,929		784,460

Property, Plant and Equipment, Net	9,065,880		8,909,701		9,760,890		9,625,765

Deferred Debits and Other Assets:
Regulatory Assets	1,496,679		1,505,488		1,529,003		1,557,261
Other Long-Term Assets	197,571		199,767		250,243		217,705
Total Deferred Debits and Other Assets	1,694,250		1,705,255		1,779,246		1,774,966

Total Assets	$	11,554,519	$	11,409,719	$	12,427,065	$	12,185,191

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Long-Term Debt – Current Portion	$	—	$	250,000
Notes Payable to Eversource Parent					$	219,000	$	63,800
Accounts Payable	347,928		324,983		331,491		374,698
Accounts Payable to Affiliated Companies	94,738		26,452		88,553		97,793
Obligations to Third Party Suppliers	56,065		56,248		50,335		56,952
Accrued Taxes	55,693		38,205
Accrued Interest	42,424		38,395
Regulatory Liabilities	106,489		109,614		119,283		82,763
Derivative Liabilities	59,651		55,058		69,631		67,804
Other Current Liabilities	71,461		84,488		152,138		132,339
Total Current Liabilities	834,449		983,443		1,030,431		876,149

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,184,425		1,166,784		1,270,025		1,244,551
Regulatory Liabilities	1,126,279		1,122,157		1,179,663		1,164,991
Derivative Liabilities	372,774		379,536		342,701		338,594
Accrued Pension, SERP and PBOP	279,914		282,771		385,451		391,159
Other Long-Term Liabilities	165,307		155,495		149,693		147,586
Total Deferred Credits and Other Liabilities	3,128,699		3,106,743		3,327,533		3,286,881

Long-Term Debt	3,265,756		3,004,016		3,518,129		3,518,136

Preferred Stock Not Subject to Mandatory Redemption	116,200		116,200		116,200		116,200

Common Stockholder's Equity:
Common Stock	60,352		60,352		60,352		60,352
Capital Surplus, Paid In	2,410,765		2,410,765		2,535,765		2,535,765
Retained Earnings	1,737,980		1,727,899		1,838,340		1,791,392
Accumulated Other Comprehensive Income	318		301		315		316
Common Stockholder's Equity	4,209,415		4,199,317		4,434,772		4,387,825

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	11,554,519	$	11,409,719	$	12,427,065	$	12,185,191

~~The accompanying notes are an integral part of these unaudited condensed financial statements.~~

~~THE CONNECTICUT LIGHT AND POWER COMPANY~~

~~CONDENSED STATEMENTS OF INCOME~~

~~(Unaudited)~~

For the Three Months Ended March 31,
(Thousands of Dollars) 2019 2018

Operating Revenues $ 849,246
$ 784,983

Operating Expenses:
Purchased Power and Transmission 319,833
301,889
Operations and Maintenance 130,637
117,292
Depreciation 73,289
67,498
Amortization of Regulatory Assets, Net 35,671
28,006
Energy Efficiency Programs 25,988
22,760
Taxes Other Than Income Taxes 92,000
90,300
Total Operating Expenses 677,418
627,745
Operating Income 171,828
157,238
Interest Expense 35,781
36,823
Other Income, Net 3,880
6,560
Income Before Income Tax Expense 139,927
126,975
Income Tax Expense 29,456
28,407
Net Income $ 110,471
$ 98,568

The accompanying notes are an integral part of these unaudited condensed financial statements.

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF ~~COMPREHENSIVE~~ INCOME

(Unaudited)



	For the Three Months Ended March 31,
(Thousands of Dollars)	2020		2019

Operating Revenues	$	899,703	$	849,246

Operating Expenses:
Purchased Power and Transmission	374,717		319,833
Operations and Maintenance	135,597		130,637
Depreciation	78,435		73,289
Amortization of Regulatory Assets, Net	6,548		35,671
Energy Efficiency Programs	35,479		25,988
Taxes Other Than Income Taxes	82,987		92,000
Total Operating Expenses	713,763		677,418
Operating Income	185,940		171,828
Interest Expense	37,883		35,781
Other Income, Net	1,898		3,880
Income Before Income Tax Expense	149,955		139,927
Income Tax Expense	31,217		29,456
Net Income	$	118,738	$	110,471

For the Three Months Ended March 31,
(Thousands of Dollars) 2019 2018

Net Income $ 110,471
$ 98,568
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments (6 ) 52
Changes in Unrealized Gains/(Losses) on Marketable Securities 23
(12 )
Other Comprehensive Income, Net of Tax 17
40
Comprehensive Income $ 110,488
$ 98,608

The accompanying notes are an integral part of these unaudited condensed financial statements.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)



	For the Three Months Ended March 31,
(Thousands of Dollars)	2020			2019

Net Income	$	118,738		$	110,471
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	(7		)	(6		)
Changes in Unrealized Gains on Marketable Securities	6			23
Other Comprehensive (Loss)/Income, Net of Tax	(1		)	17
Comprehensive Income	$	118,737		$	110,488

The accompanying notes are an integral part of these unaudited condensed financial statements.

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


	For the Three Months Ended March 31, 2019															For the Three Months Ended March 31, 2020
	Common Stock			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Income			Total Common Stockholder's Equity			Common Stock			Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount				Stock				Accumulated Other Comprehensive Income		Amount							Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income			Total Common Stockholder's Equity
Balance as of January 1, 2019	6,035,205	$	60,352	Capital Surplus, Paid In		$	Retained Earnings	2,410,765		$	1,727,899		Total Common Stockholder's Equity		$	301	$	4,199,317
Balance as of January 1, 2020																6,035,205	$	60,352	$	2,535,765	$	1,791,392		$	316		$	4,387,825
Net Income							110,471						110,471								118,738						118,738
Dividends on Preferred Stock							(1,390		)				(1,390		)						(1,390		)				(1,390		)
Dividends on Common Stock							(99,000		)				(99,000		)						(69,500		)				(69,500		)
Other Comprehensive Income										17			17
Balance as of March 31, 2019	6,035,205	$	60,352	$	2,410,765		$	1,737,980		$	318		$	4,209,415
Adoption of New Accounting Standard (See Note 1B)																					(900		)				(900		)
Other Comprehensive Loss																								(1		)	(1		)
Balance as of March 31, 2020																6,035,205	$	60,352	$	2,535,765	$	1,838,340		$	315		$	4,434,772


	For the Three Months Ended March 31, 2018															For the Three Months Ended March 31, 2019
	Common Stock			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Income			Total Common Stockholder's Equity			Common Stock			Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount				Stock				Accumulated Other Comprehensive Income		Amount							Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
Balance as of January 1, 2018	6,035,205	$	60,352	Capital Surplus, Paid In		$	Retained Earnings	2,110,765		$	1,415,741		Total Common Stockholder's Equity		$	269	$	3,587,127
Balance as of January 1, 2019																6,035,205	$	60,352	$	2,410,765	$	1,727,899		$	301	$	4,199,317
Net Income							98,568						98,568								110,471					110,471
Dividends on Preferred Stock							(1,390		)				(1,390		)						(1,390		)			(1,390		)
Dividends on Common Stock							(60,000		)				(60,000		)						(99,000		)			(99,000		)
Capital Contributions from Eversource Parent				9,000									9,000
Other Comprehensive Income										40			40											17		17
Balance as of March 31, 2018	6,035,205	$	60,352	$	2,119,765		$	1,452,919		$	309		$	3,633,345
Balance as of March 31, 2019																6,035,205	$	60,352	$	2,410,765	$	1,737,980		$	318	$	4,209,415

The accompanying notes are an integral part of these unaudited condensed financial statements.

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2019			2018			2020			2019

Operating Activities:
Net Income	$	110,471		$	98,568		$	118,738		$	110,471
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	73,289			67,498			78,435			73,289
Deferred Income Taxes	15,188			29,109			19,910			15,188
Uncollectible Expense	4,116			3,912			3,230			4,116
Pension, SERP, and PBOP Expense, Net	4,063			3,158			3,315			4,063
Pension Contributions	—			(82,276		)
Regulatory Underrecoveries, Net	(54,671		)	(8,878		)	(34,198		)	(54,671		)
Amortization of Regulatory Assets, Net	35,671			28,006			6,548			35,671
Other	(5,848		)	(18,940		)	(27,239		)	(5,848		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(60,506		)	(46,330		)	(27,969		)	(60,506		)
Taxes Receivable/Accrued, Net	41,399			42,460			40,505			41,399
Accounts Payable	75,373			(28,408		)	(27,298		)	75,373
Other Current Assets and Liabilities, Net	(40,274		)	(23,160		)	(21,801		)	(40,274		)
Net Cash Flows Provided by Operating Activities	198,271			64,719			132,176			198,271

Investing Activities:
Investments in Property, Plant and Equipment	(189,423		)	(202,126		)	(212,374		)	(189,423		)
Other Investing Activities	59			56			74			59
Net Cash Flows Used in Investing Activities	(189,364		)	(202,070		)	(212,300		)	(189,364		)

Financing Activities:
Cash Dividends on Common Stock	(99,000		)	(60,000		)	(69,500		)	(99,000		)
Cash Dividends on Preferred Stock	(1,390		)	(1,390		)	(1,390		)	(1,390		)
Capital Contributions from Eversource Parent	—			9,000
Issuance of Long-Term Debt	—			500,000
Retirement of Long-Term Debt	(250,000		)	—			—			(250,000		)
Increase/(Decrease) in Notes Payable to Eversource Parent	261,600			(69,500		)
Increase in Notes Payable to Eversource Parent							155,200			261,600
Other Financing Activities	(326		)	(6,539		)	(390		)	(326		)
Net Cash Flows (Used in)/Provided by Financing Activities	(89,116		)	371,571
Net (Decrease)/Increase in Cash and Restricted Cash	(80,209		)	234,220
Net Cash Flows Provided by/(Used in) Financing Activities							83,920			(89,116		)
Net Increase/(Decrease) in Cash and Restricted Cash							3,796			(80,209		)
Cash and Restricted Cash - Beginning of Period	91,613			9,619			4,971			91,613
Cash and Restricted Cash - End of Period	$	11,404		$	243,839		$	8,767		$	11,404

The accompanying notes are an integral part of these unaudited condensed financial statements.

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2019			As of December 31, 2018			As of March 31, 2020		As of December 31, 2019

ASSETS
Current Assets:
Cash	$	1,769		$	1,606		$	2,844	$	52
Receivables, Net	400,082			361,296
Receivables, Net (net of allowance for uncollectible accounts of $71,111 and $75,406 as of March 31, 2020 and December 31, 2019, respectively)							375,587		346,785
Accounts Receivable from Affiliated Companies	20,097			31,344			66,838		29,914
Unbilled Revenues	31,698			34,518			32,629		37,482
Materials, Supplies and Inventory	160,221			114,202
Materials, Supplies and REC Inventory							178,510		124,060
Regulatory Assets	234,662			241,747			304,007		285,591
Prepayments and Other Current Assets	24,643			51,960			16,305		31,150
Total Current Assets	873,172			836,673			976,720		855,034

Property, Plant and Equipment, Net	8,915,608			8,794,700			9,614,555		9,472,770

Deferred Debits and Other Assets:
Regulatory Assets	1,173,851			1,196,512			1,225,314		1,250,029
Prepaid PBOP	139,132			132,810			172,244		166,058
Other Long-Term Assets	134,536			109,764			139,304		144,368
Total Deferred Debits and Other Assets	1,447,519			1,439,086			1,536,862		1,560,455

Total Assets	$	11,236,299		$	11,070,459		$	12,128,137	$	11,888,259

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	368,430		$	278,500		$	88,000	$	10,500
Notes Payable to Eversource Parent	22,300			—			38,400		30,300
Long-Term Debt – Current Portion	95,000			—			—		95,000
Accounts Payable	306,888			384,398			264,148		363,691
Accounts Payable to Affiliated Companies	115,676			89,636			93,344		96,307
Obligations to Third Party Suppliers	110,742			109,547			107,341		108,827
Renewable Portfolio Standards Compliance Obligations	175,391			139,898			179,075		150,429
Regulatory Liabilities	193,959			190,620			219,872		209,180
Other Current Liabilities	52,156			74,872			68,463		71,333
Total Current Liabilities	1,440,542			1,267,471			1,058,643		1,135,567

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,305,518			1,294,467			1,374,963		1,357,265
Regulatory Liabilities	1,514,557			1,513,279			1,515,732		1,516,585
Accrued Pension and SERP	5,496			14,145			95,746		108,243
Other Long-Term Liabilities	293,794			263,096			334,538		320,629
Total Deferred Credits and Other Liabilities	3,119,365			3,084,987			3,320,979		3,302,722

Long-Term Debt	2,850,196			2,944,846			3,642,325		3,247,086

Preferred Stock Not Subject to Mandatory Redemption	43,000			43,000			43,000		43,000

Common Stockholder's Equity:
Common Stock	—			—			—		—
Capital Surplus, Paid In	1,653,442			1,633,442			1,813,442		1,813,442
Retained Earnings	2,131,015			2,098,091			2,249,526		2,346,287
Accumulated Other Comprehensive Loss	(1,261		)	(1,378		)
Accumulated Other Comprehensive Income							222		155
Common Stockholder's Equity	3,783,196			3,730,155			4,063,190		4,159,884

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	11,236,299		$	11,070,459		$	12,128,137	$	11,888,259

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Thousands of Dollars)	2019		2018		2020		2019

Operating Revenues	$	797,612	$	770,127	$	733,833	$	797,612

Operating Expenses:
Purchased Power and Transmission	330,104		332,579		242,439		330,104
Operations and Maintenance	112,963		118,682		122,318		112,963
Depreciation	72,584		70,542		78,345		72,584
Amortization of Regulatory Assets, Net	22,584		6,364		27,008		22,584
Energy Efficiency Programs	76,729		74,793		68,667		76,729
Taxes Other Than Income Taxes	44,822		48,186		48,722		44,822
Total Operating Expenses	659,786		651,146		587,499		659,786
Operating Income	137,826		118,981		146,334		137,826
Interest Expense	27,881		26,464		31,017		27,881
Other Income, Net	11,086		12,601		12,238		11,086
Income Before Income Tax Expense	121,031		105,118		127,555		121,031
Income Tax Expense	27,017		27,969		27,165		27,017
Net Income	$	94,014	$	77,149	$	100,390	$	94,014

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	2019		2018			2020			2019

Net Income	$	94,014	$	77,149		$	100,390		$	94,014
Other Comprehensive Income, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	1		1			(43		)	1
Qualified Cash Flow Hedging Instruments	110		109			109			110
Changes in Unrealized Gains/(Losses) on Marketable Securities	6		(4		)
Changes in Unrealized Gains on Marketable Securities						1			6
Other Comprehensive Income, Net of Tax	117		106			67			117
Comprehensive Income	$	94,131	$	77,255		$	100,457		$	94,131

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


	For the Three Months Ended March 31, 2019																For the Three Months Ended March 31, 2020
	Common Stock			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss				Total Common Stockholder's Equity			Common Stock				Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount				Stock				Accumulated Other Comprehensive Loss			Amount								Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
Balance as of January 1, 2019	200	$	—	Capital Surplus, Paid In		$	Retained Earnings	1,633,442		$	2,098,091			Total Common Stockholder's Equity		$	(1,378	)	$	3,730,155
Balance as of January 1, 2020																	200		$	—	$	1,813,442	$	2,346,287		$	155	$	4,159,884
Net Income							94,014							94,014									100,390					100,390
Dividends on Preferred Stock							(490		)					(490		)							(490		)			(490		)
Dividends on Common Stock							(60,600		)					(60,600		)							(196,500		)			(196,500		)
Capital Contributions from Eversource Parent				20,000										20,000
Adoption of New Accounting Standard (See Note 1B)																							(161		)			(161		)
Other Comprehensive Income										117				117												67		67
Balance as of March 31, 2019	200	$	—	$	1,653,442		$	2,131,015		$	(1,261	)		$	3,783,196
Balance as of March 31, 2020																	200		$	—	$	1,813,442	$	2,249,526		$	222	$	4,063,190


	For the Three Months Ended March 31, 2018																For the Three Months Ended March 31, 2019
	Common Stock			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss				Total Common Stockholder's Equity			Common Stock				Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount				Stock				Accumulated Other Comprehensive Loss			Amount								Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2018	200	$	—	Capital Surplus, Paid In		$	Retained Earnings	1,502,942		$	1,944,961			Total Common Stockholder's Equity		$	(1,823	)	$	3,446,080
Balance as of January 1, 2019																	200		$	—	$	1,633,442	$	2,098,091		$	(1,378	)	$	3,730,155
Net Income							77,149							77,149									94,014						94,014
Dividends on Preferred Stock							(490		)					(490		)							(490		)				(490		)
Dividends on Common Stock							(161,000		)					(161,000		)							(60,600		)				(60,600		)
Other							1							1
Capital Contributions from Eversource Parent				92,500										92,500							20,000								20,000
Other Comprehensive Income										106				106												117			117
Balance as of March 31, 2018	200	$	—	$	1,595,442		$	1,860,621		$	(1,717	)		$	3,454,346
Balance as of March 31, 2019																	200		$	—	$	1,653,442	$	2,131,015		$	(1,261	)	$	3,783,196

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2019			2018			2020			2019

Operating Activities:
Net Income	$	94,014		$	77,149		$	100,390		$	94,014
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	72,584			70,542			78,345			72,584
Deferred Income Taxes	3,722			22,542			9,775			3,722
Uncollectible Expense	5,953			7,526			3,704			5,953
Pension, SERP and PBOP Income, Net	(4,279		)	(9,295		)	(4,754		)	(4,279		)
Pension and PBOP Contributions	(1,503		)	—			—			(1,503		)
Regulatory Overrecoveries, Net	4,329			17,618
Regulatory (Under)/Over Recoveries, Net							(17,434		)	4,329
Amortization of Regulatory Assets, Net	22,584			6,364			27,008			22,584
Other	(8,043		)	(9,730		)	(1,643		)	(8,043		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(29,220		)	(52,949		)	(64,951		)	(29,220		)
Materials, Supplies and Inventory	(46,020		)	(37,427		)
Materials, Supplies and REC Inventory							(54,450		)	(46,020		)
Taxes Receivable/Accrued, Net	29,483			(22,698		)	32,135			29,483
Accounts Payable	(18,109		)	43,170			(53,462		)	(18,109		)
Other Current Assets and Liabilities, Net	11,466			23,703			7,033			11,466
Net Cash Flows Provided by Operating Activities	136,961			136,515			61,696			136,961

Investing Activities:
Investments in Property, Plant and Equipment	(208,540		)	(192,036		)	(247,549		)	(208,540		)
Other Investing Activities	17			(654		)	21			17
Net Cash Flows Used in Investing Activities	(208,523		)	(192,690		)	(247,528		)	(208,523		)

Financing Activities:
Cash Dividends on Common Stock	(60,600		)	(161,000		)	(196,500		)	(60,600		)
Cash Dividends on Preferred Stock	(490		)	(490		)	(490		)	(490		)
Issuance of Long-Term Debt							400,000			—
Retirement of Long-Term Debt							(95,000		)	—
Capital Contributions from Eversource Parent	20,000			92,500			—			20,000
Increase in Notes Payable to Eversource Parent	22,300			—			8,100			22,300
Increase in Notes Payable	89,930			133,000			77,500			89,930
Other Financing Activities	668			(78		)	(4,961		)	668
Net Cash Flows Provided by Financing Activities	71,808			63,932			188,649			71,808
Increase in Cash and Restricted Cash	246			7,757
Net Increase in Cash and Restricted Cash							2,817			246
Cash and Restricted Cash - Beginning of Period	14,659			14,708			6,312			14,659
Cash and Restricted Cash - End of Period	$	14,905		$	22,465		$	9,129		$	14,905

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2019			As of December 31, 2018			As of March 31, 2020			As of December 31, 2019

ASSETS
Current Assets:
Cash	$	3,961		$	1,439		$	19		$	413
Receivables, Net	102,806			104,854
Receivables, Net (net of allowance for uncollectible accounts of $11,154 and $10,497 as of March 31, 2020 and December 31, 2019, respectively)							99,792			99,934
Accounts Receivable from Affiliated Companies	11,520			8,444			10,176			6,763
Unbilled Revenues	43,289			47,145			42,344			48,146
Taxes Receivable	7,441			25,913
Materials, Supplies and Inventory	37,361			37,504
Materials, Supplies and REC Inventory							28,483			24,957
Regulatory Assets	76,599			67,228			102,438			84,053
Special Deposits	21,059			47,498			16,627			32,513
Prepayments and Other Current Assets	2,940			17,564			6,268			19,431
Total Current Assets	306,976			357,589			306,147			316,210

Property, Plant and Equipment, Net	2,920,560			2,880,073			3,187,282			3,129,506

Deferred Debits and Other Assets:
Regulatory Assets	855,369			862,288			843,904			861,672
Other Long-Term Assets	29,884			27,406			41,564			43,270
Total Deferred Debits and Other Assets	885,253			889,694			885,468			904,942

Total Assets	$	4,112,789		$	4,127,356		$	4,378,897		$	4,350,658

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	61,000		$	57,000		$	84,700		$	27,000
Long-Term Debt – Current Portion	150,000			150,000
Rate Reduction Bonds – Current Portion	43,210			52,332			43,210			43,210
Accounts Payable	106,398			111,292			103,551			127,081
Accounts Payable to Affiliated Companies	37,976			26,029			32,707			37,946
Regulatory Liabilities	45,655			55,526			69,042			65,766
Accrued Interest							14,323			19,138
Other Current Liabilities	55,088			64,046			39,636			32,736
Total Current Liabilities	499,327			516,225			387,169			352,877

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	489,434			481,221			511,822			506,212
Regulatory Liabilities	429,932			428,069			411,959			413,381
Accrued Pension, SERP and PBOP	122,490			124,457			152,649			157,638
Other Long-Term Liabilities	37,956			36,339			36,022			37,075
Total Deferred Credits and Other Liabilities	1,079,812			1,070,086			1,112,452			1,114,306

Long-Term Debt	655,294			655,173			951,747			951,620

Rate Reduction Bonds	561,727			583,331			518,517			540,122

Common Stockholder's Equity:
Common Stock	—			—			—			—
Capital Surplus, Paid In	678,134			678,134			903,134			903,134
Retained Earnings	641,039			627,258			507,307			490,306
Accumulated Other Comprehensive Loss	(2,544		)	(2,851		)	(1,429		)	(1,707		)
Common Stockholder's Equity	1,316,629			1,302,541			1,409,012			1,391,733

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	4,112,789		$	4,127,356		$	4,378,897		$	4,350,658

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Thousands of Dollars)	2019		2018		2020		2019

Operating Revenues	$	276,435	$	267,350	$	276,368	$	276,435

Operating Expenses:
Purchased Power, Fuel and Transmission	113,531		109,717
Purchased Power and Transmission					94,138		113,531
Operations and Maintenance	52,630		51,380		47,128		52,630
Depreciation	22,919		23,493		24,334		22,919
Amortization of Regulatory Assets, Net	13,667		5,035		20,110		13,667
Energy Efficiency Programs	6,714		5,157		9,364		6,714
Taxes Other Than Income Taxes	17,311		16,801		19,701		17,311
Total Operating Expenses	226,772		211,583		214,775		226,772
Operating Income	49,663		55,767		61,593		49,663
Interest Expense	14,367		12,772		14,479		14,367
Other Income, Net	7,022		4,749		3,190		7,022
Income Before Income Tax Expense	42,318		47,744		50,304		42,318
Income Tax Expense	9,537		12,651		10,703		9,537
Net Income	$	32,781	$	35,093	$	39,601	$	32,781

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	2019		2018			2020		2019

Net Income	$	32,781	$	35,093		$	39,601	$	32,781
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	269		290			269		269
Changes in Unrealized Gains/(Losses) on Marketable Securities	38		(21		)
Changes in Unrealized Gains on Marketable Securities						9		38
Other Comprehensive Income, Net of Tax	307		269			278		307
Comprehensive Income	$	33,088	$	35,362		$	39,879	$	33,088

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


	For the Three Months Ended March 31, 2019																For the Three Months Ended March 31, 2020
	Common Stock			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss				Total Common Stockholder's Equity			Common Stock				Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount				Stock				Accumulated Other Comprehensive Loss			Amount								Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2019	301	$	—	Capital Surplus, Paid In		$	Retained Earnings	678,134		$	627,258			Total Common Stockholder's Equity		$	(2,851	)	$	1,302,541
Balance as of January 1, 2020																	301		$	—	$	903,134	$	490,306		$	(1,707	)	$	1,391,733
Net Income							32,781							32,781									39,601						39,601
Dividends on Common Stock							(19,000		)					(19,000		)							(22,300		)				(22,300		)
Adoption of New Accounting Standard (See Note 1B)																							(300		)				(300		)
Other Comprehensive Income										307				307												278			278
Balance as of March 31, 2019	301	$	—	$	678,134		$	641,039		$	(2,544	)		$	1,316,629
Balance as of March 31, 2020																	301		$	—	$	903,134	$	507,307		$	(1,429	)	$	1,409,012


	For the Three Months Ended March 31, 2018															For the Three Months Ended March 31, 2019
	Common Stock			Capital Surplus, Paid In			Retained Earnings		Accumulated Other Comprehensive Loss				Total Common Stockholder's Equity			Common Stock				Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount				Stock			Accumulated Other Comprehensive Loss			Amount								Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2018	301	$	—	Capital Surplus, Paid In		$	Retained Earnings	843,134	$	511,382			Total Common Stockholder's Equity		$	(3,922	)	$	1,350,594
Balance as of January 1, 2019																301		$	—	$	678,134	$	627,258		$	(2,851	)	$	1,302,541
Net Income							35,093						35,093									32,781						32,781
Dividends on Common Stock																						(19,000		)				(19,000		)
Other Comprehensive Income									269				269												307			307
Balance as of March 31, 2018	301	$	—	$	843,134		$	546,475	$	(3,653	)		$	1,385,956
Balance as of March 31, 2019																301		$	—	$	678,134	$	641,039		$	(2,544	)	$	1,316,629

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2019			2018			2020			2019

Operating Activities:
Net Income	$	32,781		$	35,093		$	39,601		$	32,781
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	22,919			23,493			24,334			22,919
Deferred Income Taxes	6,541			43,021			4,167			6,541
Regulatory (Under)/Over Recoveries, Net	(26,986		)	129
Uncollectible Expense							666			1,725
Regulatory Underrecoveries, Net							(22,977		)	(26,986		)
Amortization of Regulatory Assets, Net	13,667			5,035			20,110			13,667
Other	104			(15,212		)	(3,885		)	(1,621		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	1,103			(80		)	2,843			1,103
Materials, Supplies and Inventory	144			4,854
Materials, Supplies and REC Inventory							(3,526		)	144
Taxes Receivable/Accrued, Net	17,572			(5,867		)	6,110			17,572
Accounts Payable	58,327			(18,760		)	(18,064		)	11,762
Other Current Assets and Liabilities, Net	6,472			24,543			9,118			6,472
Net Cash Flows Provided by Operating Activities	132,644			96,249			58,497			86,079

Investing Activities:
Investments in Property, Plant and Equipment	(110,926		)	(72,287		)	(88,694		)	(64,361		)
Proceeds from the Sale of Generation Assets	—			130,641
Other Investing Activities	102			97			126			102
Net Cash Flows (Used in)/Provided by Investing Activities	(110,824		)	58,451
Net Cash Flows Used in Investing Activities							(88,568		)	(64,259		)

Financing Activities:
Cash Dividends on Common Stock	(19,000		)	(150,000		)	(22,300		)	(19,000		)
Repayment of Rate Reduction Bonds	(30,727		)	—			(21,605		)	(30,727		)
Increase in Notes Payable to Eversource Parent	4,000			8,400			57,700			4,000
Other Financing Activities	(20		)	(38		)	(22		)	(20		)
Net Cash Flows Used in Financing Activities	(45,747		)	(141,638		)
Net (Decrease)/Increase in Cash and Restricted Cash	(23,927		)	13,062
Net Cash Flows Provided by/(Used in) Financing Activities							13,773			(45,747		)
Net Decrease in Cash and Restricted Cash							(16,298		)	(23,927		)
Cash and Restricted Cash - Beginning of Period	52,723			2,191			36,688			52,723
Cash and Restricted Cash - End of Period	$	28,796		$	15,253		$	20,390		$	28,796

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

COMBINED NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)

Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout the combined notes to the unaudited condensed financial statements.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas and NSTAR Gas (natural gas utilities) and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately ~~four million~~4000000 electric, natural gas and water customers through ~~eight~~8 regulated utilities in Connecticut, Massachusetts and New Hampshire.

The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH include the accounts of each of their respective subsidiaries. Intercompany transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."

The combined notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying financial statements should be read in conjunction with the Combined Notes to Financial Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource ~~2018~~2019 Form 10-K, which was filed with the SEC on February ~~26, 2019.~~27, 2020. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, and the results of operations, comprehensive income, common shareholders' equity, and cash flows for the three months ended March 31, ~~2019~~2020 and ~~2018.~~2019. The results of operations, comprehensive income, and cash flows for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 are not necessarily indicative of the results expected for a full year.

Eversource consolidates the operations of CYAPC and YAEC, both of which are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership and voting interests in each of these entities is greater than 50 percent. Intercompany transactions between CL&P, NSTAR Electric, PSNH and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource holds several equity ownership interests that are not consolidated and are accounted for under the equity method.

Eversource's utility subsidiaries' electric, natural gas and water distribution and transmission businesses are subject to rate-regulation that is based on cost recovery and meets the criteria for application of accounting guidance for entities with rate-regulated operations, which considers the effect of regulation on the differences in the timing of the recognition of certain revenues and expenses from those of other businesses and industries. See Note 2, "Regulatory Accounting," for further information.

In March 2020, the World Health Organization declared the outbreak of the 2019 novel coronavirus (COVID-19) a pandemic and President Trump declared a national emergency affecting the entire United States where each state qualifies as being part of a national disaster. The spread of COVID-19 has adversely affected workforces, the overall economy and caused significant volatility in the financial markets. To date, Eversource has not experienced significant operational or financial impacts directly related to the pandemic. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, management will continue to closely monitor how COVID-19 related developments affect Eversource. As of the date of our filing and based on information available, management is unable to predict the impacts that the COVID-19 pandemic will have on future operations, financial position, results of operations, and cash flows. The extent of the impact in the future will vary and depend in large part on the duration, scope and severity of a national and global economic slowdown, risk of inflation, governmental and regulatory actions, the maintenance of a strong regional and national healthcare system, and the continued spread of the virus, which is mitigated through social distancing measures.

Our customer receivable balances and uncollectible accounts have not been materially impacted by COVID-19. We believe that we will be able to develop a successful structure with our respective state regulatory commissions to recover our costs associated with COVID-19, while balancing the impact on our customers’ bills. See Note 1C, "Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts," for further discussion of our evaluation of the allowance for doubtful accounts as of March 31, 2020 in light of the COVID-19 pandemic.

An extended economic slowdown could result in lower demand for electricity, natural gas and/or water by our commercial and industrial customers. However, fluctuations in retail sales volumes for CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and our Connecticut water distribution business are not expected to materially impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms. The revenue decoupling mechanisms mitigate the impact of lower demand and resulting lost sales revenues by allowing for a true-up to occur as part of each company’s annual decoupling filing. These revenue decoupling mechanisms qualify as alternative revenue programs in accordance with accounting guidance for rate-regulated operations.

Certain reclassifications of prior period data were made in the accompanying financial statements to conform to the current period presentation.

The Eversource and PSNH 2019 statements of cash flows and the 2019 segment footnote were revised to correct an error in the presentation of non-cash capital additions. The impact of this revision on the statement of cash flows is a decrease to operating cash inflows in Accounts Payable of $46.6 million and a corresponding decrease to investing cash outflows in Investments in Property, Plant and Equipment for the quarter ended March 31, 2019. This revision is not deemed material, individually or in the aggregate, to the previously issued financial statements.

B. Accounting Standards

Accounting Standards Issued but Not Yet Effective: In ~~June 2016,~~December 2019, the FASB issued Accounting Standards Update ~~(“ASU”)~~(ASU) 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the general principles of current income tax guidance in ASC 740 and simplifies and improves consistency in application of that income tax guidance through clarifications of and amendments to ASC 740. The guidance is effective in the first quarter of 2021. The ASU is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric and PSNH.

Accounting Standards Recently Adopted: On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides a ~~new~~ model for recognizing credit losses on financial instruments based on an estimate of current expected ~~credit losses. Under the new guidance,~~losses, requiring immediate recognition of ~~all~~ credit losses expected over the life of a financial instrument is required. The new standard also revises the other-than-temporary impairment model for available-for-sale debt securities. The standard is effective January 1, 2020, and requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings.instrument. The Company ~~is assessing~~determined the impacts of this standard on the ~~accounting~~allowance for credit losses on its financial instruments, ~~including~~primarily accounts receivable.

~~Accounting Standards Recently Adopted:~~ ~~On January 1, 2019, the Company adopted ASU 2016-02,~~ ~~Leases (Topic 842),~~ ~~which amended existing lease accounting guidance. The Company applied the Topic 842 lease criteria to new leases and lease renewals entered into effective on or after January 1, 2019.~~ The ASU required balance sheet recognition of leases deemed to be operating leases as well as additional disclosure requirements. The recognition, measurement and presentation of expenses and cash flows were not significantly changed.

~~The Company also adopted the modified retrospective transition method allowed in ASU 2018-11,~~ ~~Leases (Topic 842) - Targeted Improvements, which allowed the Company to adopt the new leases standard as~~ As of January 1, ~~2019, with prior periods presented in~~2020, the ~~financial statements continuing~~Company recorded increases to ~~follow existing lease accounting guidance under Topic 840 (Leases) in~~ the ~~accounting literature. Implementation~~allowance for uncollectible accounts for late fees and other receivable amounts of ~~ASU 2018-11 had no effect on retained earnings,~~$1.6 million, $0.9 million, $0.2 million and ~~the requirements of the new lease standard (Topic 842) are reflected in the 2019 financial statements and footnotes.~~

The Company elected the practical expedient package whereby it did not need to reassess whether or not an existing contract is or contains a lease or whether a lease is an operating or capital lease, and it did not need to reassess initial direct costs for leases. Election of this practical expedient allowed us to carry forward our historical lease classifications. The Company elected the practical expedient to not reevaluate land easements existing at adoption if they were not previously accounted for as leases. The Company also elected to use the discount rate as of the January 1, 2019 implementation date to discount its operating lease liabilities. The Company did not elect the hindsight practical expedient to determine the lease term for existing leases.

The Company determined the impact the ASUs had on its financial statements by reviewing its lease population and identifying lease data needed for the disclosure requirements. The Company implemented a new lease accounting system in 2019 to ensure ongoing compliance with the ASU’s requirements. Adoption of the new standard resulted in the recording of operating lease liabilities and right-of-use assets on the balance sheet upon transition at January 1, 2019 of $58.0$0.3 million at Eversource, ~~$25.3 million at NSTAR Electric, $0.6 million at CL&P, and $0.6 million at PSNH. Implementation of the new guidance did not have an impact on each company’s results of operations or cash flows.~~

~~C. Northern Pass~~

Northern Pass is Eversource's planned 1,090 MW HVDC transmission line that will interconnect from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire. As of March 31, 2019, our capitalized Northern Pass project costs were approximately $311 million.

On January 25, 2018, Northern Pass was selected as the winning bidder in the Massachusetts Clean Energy Request for Proposals ("RFP"). In March 2018, the New Hampshire Site Evaluation Committee ("NHSEC") issued a written decision denying Northern Pass’ siting application after which the Massachusetts EDCs revoked the selection of, and terminated contract negotiations with, Northern Pass under the Massachusetts Clean Energy RFP. On July 12, 2018, the NHSEC issued a written decision denying Northern Pass’ April 2018 motion for rehearing. On October 12, 2018, the New Hampshire Supreme Court accepted an appeal filed by NPT, which alleged that the NHSEC failed to follow applicable law in its review of the project. Subsequently, the NHSEC transmitted the record of its proceedings to the New Hampshire Supreme Court on December 11, 2018. Briefing of the appeal began on February 4, 2019 and concluded on April 10, 2019. The New Hampshire Supreme Court will hear oral arguments on May 15, 2019 and a decision is expected later this year. NPT intends to continue to pursue NHSEC approval to construct the project.

Consistent with Eversource’s and HQ’s long-term relationship to bring clean energy into New England, Eversource and HQ remain committed to Northern Pass and the many benefits this project will bring to our customers and the region. We continue to believe that our project costs are recoverable based on our expectation that the Northern Pass project remains probable of being placed in service. If, as a result of future events and changes in circumstances, a future recoverability review were to conclude that our project costs are not recoverable, then we would reduce Northern Pass' project costs to the estimated fair value, which could result in most of our $311 million of capitalized project costs being impaired. Such an impairment could have a material adverse effect on our financial position and results of operations.

~~D. Provision for Uncollectible Accounts~~

~~Eversource, including~~ CL&P, NSTAR Electric and PSNH, ~~presents~~respectively. The impact to retained earnings, net of tax, was $1.5 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively.

The Company also adjusted the allowance for uncollectible amounts of hardship receivables and other low-income assistance programs, which are ultimately collectible in rates at specified points in time under approved regulatory mechanisms. The impact on the allowance, which was offset in other long-term assets on the balance sheets, was an increase of $22.2 million and $21.3 million at Eversource and CL&P, respectively, and a decrease of $1.5 million at NSTAR Electric. See Note 1C, “Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts,” for further information.

The Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment as of January 1, 2020. The ASU simplified the accounting for goodwill impairment by removing a complex step in the goodwill impairment test. Under the guidance, goodwill impairment is measured as the amount by which its carrying value exceeds its fair value. The ASU is not expected to have an impact on the financial statements of Eversource.

On January 1, 2020, the Company adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligned the requirements for capitalizing costs incurred to implement a cloud computing arrangement with existing internal-use software guidance. The prospective implementation of this standard did not have any impact on the financial statements of Eversource, CL&P, NSTAR Electric or PSNH for the period ending March 31, 2020.

On January 1, 2020, the Company prospectively adopted ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modified fair value disclosure requirements. The standard includes new disclosure requirements for Level 3 unobservable inputs and eliminated the requirement to disclose certain information relating to transfers between levels. The modified disclosures are included in Note 1D, “Summary of Significant Accounting Policies - Fair Value Measurements,” and Note 4, “Derivative Instruments.”

C. Allowance for Uncollectible Accounts

Receivables, Net on the balance sheets primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs and property rentals. Receivables, Net also includes customer receivables for the purchase of electricity from a competitive third party supplier, the current portion of customer energy efficiency loans, property damage receivables and other miscellaneous receivables. There is no material concentration of receivables. Receivables are recorded at amortized cost, net of a credit loss provision (or allowance for uncollectible accounts).

Receivables are presented net of expected credit losses at estimated net realizable value by maintaining ~~a provision~~an allowance for uncollectible accounts. Effective January 1, 2020, the current expected credit loss (CECL) model was applied to receivables for purposes of calculating the allowance for uncollectible accounts. This ~~provision~~model is based on expected losses and results in the recognition of estimated expected credit losses, including uncollectible amounts for both billed and unbilled revenues, over the life of the receivable at the time a receivable is recorded.

The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category. ~~The estimate is based upon~~Factors in determining credit loss include historical collection, ~~and~~ write-off experience, and management's assessment of ~~collectability~~collectibility from ~~customers.~~customers, including current conditions, reasonable forecasts, and expectations of future collectibility and collection efforts. Management continuously assesses the ~~collectability~~collectibility of receivables and adjusts ~~collectability~~ estimates based on actual ~~experience.~~experience and future expectations based on economic indicators. Management also monitors the aging analysis of receivables to determine if there are changes in the collections of accounts receivable. Receivable balances are written off against the ~~provision~~allowance for uncollectible accounts when the customer accounts are ~~terminated~~no longer in service and these balances are deemed to be uncollectible.

As of March 31, 2020, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the economic downturn to date. This evaluation included an analysis of collection and customer payment trends in 2020, economic conditions, flexible payment plans and financial hardship arrearage management programs being offered to customers, and the impacts of federal governmental pandemic relief programs for our customers and the expansion of unemployment benefits initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment. Based upon the evaluation performed, management concluded that the reserve balance as of March 31, 2020 adequately reflected the collection risk and net realizable value for Eversource’s receivables. Management will continue to evaluate the adequacy of the uncollectible allowance in future reporting periods based on an ongoing assessment of accounts receivable collections, delinquency statistics, and analysis of aging-based quantitative assessments.

The PURA allows CL&P and Yankee Gas to accelerate the recovery of accounts receivable balances attributable to qualified customers under financial or medical duress (uncollectible hardship accounts receivable) outstanding for greater than 180 days and 90 days, respectively. The DPU allows NSTAR Electric and NSTAR Gas to recover in rates amounts associated with certain uncollectible hardship accounts receivable. These uncollectible hardship customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets. Hardship customers are protected from shut-off in certain circumstances, and historical collection experience has reflected a higher default risk as compared to the rest of the receivable population. As a result of the adoption of ASU 2016-13, management aligned the allowance for uncollectible hardship accounts across all regulatory jurisdictions, using a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. Implementation impacts of the accounting standard on the allowance for uncollectible hardship accounts are reflected in the rollforward of the uncollectible allowance in the table below. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.

The total ~~provision~~allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The ~~provision~~activity in the allowance for uncollectible ~~hardship~~ accounts by portfolio segment is ~~included in the total uncollectible provision balance. The provision balances are~~ as follows:

Total Provision for Uncollectible Accounts Provision for Uncollectible Hardship Accounts
(Millions of Dollars) As of March 31, 2019 As of December 31, 2018 As of March 31, 2019 As of December 31, 2018
Eversource $ 223.3
$ 212.7
$ 134.6
$ 131.5
CL&P 93.0
88.0
75.2
71.9
NSTAR Electric 74.8
74.5
40.9
42.5
PSNH 11.0
11.1
—
—



	For the Three Months Ended March 31, 2020
	Eversource									CL&P									NSTAR Electric									PSNH
(Millions of Dollars)	Hardship Accounts			Retail (Non-Hardship), Wholesale, and Other Receivables			Total Allowance			Hardship Accounts			Retail (Non-Hardship), Wholesale and Other Receivables			Total Allowance			Hardship Accounts			Retail (Non-Hardship), Wholesale, and Other Receivables			Total Allowance			Total Allowance
Beginning Balance	$	143.3		$	81.5		$	224.8		$	80.1		$	17.2		$	97.3		$	43.9		$	31.5		$	75.4		$	10.5
ASU 2016-13 Implementation Impact on January 1, 2020	21.6			2.2			23.8			21.3			0.9			22.2			(1.6		)	0.3			(1.3		)	0.3
Uncollectible Expense ⁽¹⁾	—			11.4			11.4			—			3.2			3.2			—			3.7			3.7			0.7
Uncollectible Costs Deferred ⁽²⁾	11.8			8.5			20.3			12.9			1.8			14.7			(3.4		)	3.4			—			1.3
Write-Offs	(4.7		)	(16.8		)	(21.5		)	(3.8		)	(3.5		)	(7.3		)	(0.4		)	(8.0		)	(8.4		)	(1.7		)
Recoveries Collected	0.2			3.1			3.3			0.2			0.6			0.8			—			1.7			1.7			0.1
Ending Balance	$	172.2		$	89.9		$	262.1		$	110.7		$	20.2		$	130.9		$	38.5		$	32.6		$	71.1		$	11.2

⁽¹⁾Uncollectible expense associated with ~~customers'~~customer and other accounts receivable is included in Operations and Maintenance expense on the statements of ~~income~~income. For the three months ended March 31, 2019, uncollectible expense included in Operations and Maintenance Expense was $18.6 million, $4.1 million, $6.0 million and $1.7 million for Eversource, CL&P, NSTAR Electric and PSNH, respectively.

⁽²⁾The current period provision for expected credit losses for hardship accounts and other customer receivables that are ultimately recovered in rates is deferred as ~~follows:~~a regulatory cost on the balance sheets.

For the Three Months Ended
(Millions of Dollars) March 31, 2019 March 31, 2018
Eversource $ 18.6
$ 19.6
CL&P 4.1
3.9
NSTAR Electric 6.0
7.5
PSNH 1.7
1.7

E.D. Fair Value Measurements

Fair value measurement guidance is applied to derivative contracts that are not elected or designated as "normal purchases" or "normal sales" ~~("normal")~~(normal) and to the marketable securities held in trusts. Fair value measurement guidance is also applied to valuations of the investments used to calculate the funded status of pension and PBOP plans, the nonrecurring fair value measurements of nonfinancial assets such as goodwill, long-lived assets and AROs, and the estimated fair value of preferred stock, long-term debt and RRBs.

Fair Value Hierarchy: In measuring fair value, Eversource uses observable market data when available in order to minimize the use of unobservable inputs. Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes. The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement. Eversource evaluates the classification of assets and liabilities measured at fair value on a quarterly ~~basis, and Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.~~basis. The three levels of the fair value hierarchy are described below:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 - Inputs are quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable.

Level 3 - Quoted market prices are not available. Fair value is derived from valuation techniques in which one or more significant inputs or assumptions are unobservable. Where possible, valuation techniques incorporate observable market inputs that can be validated to external sources such as industry exchanges, including prices of energy and energy-related products.

Uncategorized - Investments that are measured at net asset value are not categorized within the fair value hierarchy.

Determination of Fair Value: The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 4, "Derivative Instruments," Note 5, "Marketable Securities," and Note ~~11,~~10, "Fair Value of Financial Instruments," to the financial statements.

~~F. Investments in Unconsolidated Affiliates~~

~~Revolution Wind and South Fork Wind:~~ ~~On February 8, 2019, Eversource and Ørsted entered into a 50-50 partnership for key~~

offshore wind assets in the Northeast. Eversource's initial payment and contribution under the terms of the partnership agreements totaled approximately $225 million for a 50 percent interest in North East Offshore LLC, which holds the Revolution Wind and South Fork Wind power projects, as well as a 257-square-mile tract off the coasts of Massachusetts and Rhode Island. This equity investment is included in long-term assets on the balance sheet and earnings impacts are included in Other Income, Net on the statement of income.

G.E. Other Income, Net

The components of Other Income, Net on the statements of income were as follows:



	For the Three Months Ended
	March 31, 2020												March 31, 2019
(Millions of Dollars)	Eversource			CL&P			NSTAR Electric			PSNH			Eversource		CL&P			NSTAR Electric			PSNH
Pension, SERP and PBOP Non-Service Income/(Expense) Components	$	12.7		$	1.1		$	7.9		$	1.9		$	7.4	$	(0.6	)	$	7.0		$	0.5
AFUDC Equity	10.6			3.9			5.0			1.5			10.9		2.6			4.0			0.2
Equity in Earnings of Unconsolidated Affiliates	4.0			—			0.1			—			5.0		—			0.2			—
Investment Income/(Loss)	(4.3		)	(3.4		)	(1.3		)	(0.5		)	1.2		1.7			(0.3		)	0.4
Interest Income	0.7			0.3			0.1			0.3			6.5		0.4			0.2			5.9
Other	0.4			—			0.4			—			—		(0.2		)	—			—
Total Other Income, Net	$	24.1		$	1.9		$	12.2		$	3.2		$	31.0	$	3.9		$	11.1		$	7.0

For the Three Months Ended
March 31, 2019 March 31, 2018
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Pension, SERP and PBOP Non-Service
Income Components
$ 7.4
$ (0.6 ) $ 7.0
$ 0.5
$ 15.2
$ 3.0
$ 8.4
$ 2.3
AFUDC Equity 10.9
2.6
4.0
0.2
9.7
2.8
3.4
—
Equity in Earnings 5.0
—
0.2
—
4.6
—
—
—
Investment Income/(Loss) 1.2
1.7
(0.3 ) 0.4
0.7
(0.1 ) 0.6
—
Interest Income ⁽¹⁾
6.5
0.4
0.2
5.9
3.5
0.9
0.2
2.4
Other —
(0.2 ) —
—
0.1
—
—
—
Total Other Income, Net $ 31.0
$ 3.9
$ 11.1
$ 7.0
$ 33.8
$ 6.6
$ 12.6
$ 4.7

⁽¹⁾~~See Note 2, "Regulatory Accounting" for interest income recognized in 2019 for the equity return component of carrying charges on storm costs at PSNH.~~

H.F. Other Taxes

Eversource's companies that serve customers in Connecticut collect gross receipts taxes levied by the state of Connecticut from their customers. These gross receipts taxes are recorded separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of income as follows:



	For the Three Months Ended
(Millions of Dollars)	March 31, 2020		March 31, 2019
Eversource	$	43.1	$	45.0
CL&P	35.5		36.2

For the Three Months Ended
(Millions of Dollars) March 31, 2019 March 31, 2018
Eversource $ 45.0
$ 43.4
CL&P 36.2
35.6

Separate from above were amounts recorded as Taxes Other Than Income Taxes at CL&P related to the remittance to the State of Connecticut of energy efficiency funds collected from customers of $10.7 million for the three months ended March 31, 2019. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. These amounts were recorded separately, with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the Eversource and CL&P statements of income.

As agents for state and local governments, Eversource's companies that serve customers in Connecticut and Massachusetts collect certain sales taxes that are recorded on a net basis with no impact on the statements of income.

Separate from the amounts above are $10.7 million and $12.7 million of amounts recorded as Taxes Other than Income Taxes for the three months ended March 31, 2019 and 2018, respectively, related to the future remittance to the State of Connecticut of energy efficiency funds collected from customers in Operating Revenues. These amounts are recorded separately, with collections in Operating Revenues and with payments in Taxes Other than Income Taxes on the Eversource and CL&P statements of income.

I.G. Supplemental Cash Flow Information

Non-cash investing activities include plant additions included in Accounts Payable as follows:



(Millions of Dollars)	As of March 31, 2020		As of March 31, 2019
Eversource	$	273.7	$	336.3
CL&P	85.0		121.9
NSTAR Electric	70.2		83.2
PSNH	37.9		30.4

(Millions of Dollars) As of March 31, 2019 As of March 31, 2018
Eversource $ 336.3
$ 274.4
CL&P 121.9
117.7
NSTAR Electric 83.2
59.5
PSNH 30.4
36.0

The following table reconciles cash as reported on the balance sheets to the cash and restricted cash balance as reported on the statements of cash flows:



	As of March 31, 2020								As of December 31, 2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash as reported on the Balance Sheets	$	47.4	$	3.8	$	2.8	$	—	$	15.4	$	—	$	0.1	$	0.4
Restricted cash included in:
Special Deposits	39.0		4.7		6.2		16.6		52.5		4.6		6.2		32.5
Marketable Securities	44.1		0.3		0.1		0.6		46.0		0.4		—		0.6
Other Long-Term Assets	3.2		—		—		3.2		3.2		—		—		3.2
Cash and Restricted Cash reported on the Statements of Cash Flows	$	133.7	$	8.8	$	9.1	$	20.4	$	117.1	$	5.0	$	6.3	$	36.7

As of March 31, 2019 As of December 31, 2018
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Cash as reported on the Balance Sheets $ 35.1
$ 7.5
$ 1.8
$ 4.0
$ 108.1
$ 87.7
$ 1.6
$ 1.4
Restricted cash included in:
Prepayments and Other Current Assets 45.9
3.6
13.0
21.1
72.1
3.5
13.0
47.5
Marketable Securities 24.2
0.3
0.1
0.5
25.9
0.4
0.1
0.6
Other Long-Term Assets 3.2
—
—
3.2
3.2
—
—
3.2
Cash and Restricted Cash reported on the
Statements of Cash Flows
$ 108.4
$ 11.4
$ 14.9
$ 28.8
$ 209.3
$ 91.6
$ 14.7
$ 52.7

~~Restricted cash included in Prepayments and Other Current Assets and Other Long-Term Assets primarily represents~~Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, ~~and~~ required ISO-NE cash ~~deposits.~~deposits, and CYAPC and YAEC cash balances. Special Deposits are included in Current Assets on the balance sheets. Restricted cash included in Marketable Securities represents money market funds held in trusts to fund certain non-qualified executive benefits and restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage ~~facilities~~ obligations.

H. Pending Acquisition of Assets of Columbia Gas of Massachusetts

On February 26, 2020, Eversource and NiSource Inc. entered into an asset purchase agreement (the Agreement) pursuant to which Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in Massachusetts, which is doing business as Columbia Gas of Massachusetts (CMA). The purchase price of $1.1 billion includes a target working capital amount that is subject to adjustment to reflect actual working capital as of the closing date.

The liabilities to be assumed by Eversource under the Agreement specifically exclude any liabilities (past or future) arising out of, or related to, the fires and explosions that occurred on September 13, 2018 in Lawrence, Andover and North Andover, Massachusetts related to the delivery of natural gas by CMA, including certain subsequent events, all as described and in the DPU's Order on Scope dated December 23, 2019 (D.P.U. 19-141) (the Greater Lawrence Incident or GLI). The liabilities to be assumed also exclude any further emergency events prior to the closing of the acquisition related to the restoration and reconstruction with respect to the GLI, including any losses arising out of, or related to, any litigation, demand, cause of action, claim, suit, investigation, proceeding, indemnification agreements or rights. Eversource is not assuming any of CMA's or NiSource Inc.'s debt.

The transaction requires approval from the DPU, the Maine Public Utilities Commission, the FERC, and the Federal Communications Commission, and it is subject to review under the Hart-Scott-Rodino Act, for which the relevant review period has expired. The resulting rate plan also requires DPU approval. Eversource expects to finance the asset acquisition through a combination of debt and equity issuances in a ratio that is consistent with our current consolidated capital structure. The transaction is expected to close by the end of the third quarter of 2020.

2. REGULATORY ACCOUNTING

Eversource's utility companies are subject to rate regulation that is based on cost recovery and meets the criteria for application of accounting guidance for rate-regulated operations, which considers the effect of regulation on the timing of the recognition of certain revenues and expenses. The regulated companies' financial statements reflect the effects of the rate-making process. The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, ~~including~~plus a return on investment.

The application of accounting guidance for rate-regulated enterprises results in recording regulatory assets and liabilities. Regulatory assets represent the deferral of incurred costs that are probable of future recovery in customer rates. Regulatory assets are amortized as the incurred costs are recovered through customer rates. Regulatory liabilities represent either revenues received from customers to fund expected costs that have not yet been incurred or probable future refunds to customers.

Management believes it is probable that each of the regulated companies will recover its respective investments in long-lived assets, including regulatory assets. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to any of the regulated companies' operations, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the costs would be charged to net income in the period in which the determination is made.

Regulatory Assets: The components of regulatory assets were as follows:



	As of March 31, 2020								As of December 31, 2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Benefit Costs	$	2,334.3	$	528.3	$	616.3	$	213.9	$	2,382.9	$	539.0	$	629.8	$	218.2
Income Taxes, Net	727.2		458.9		108.5		12.8		725.8		458.8		108.0		12.8
Securitized Stranded Costs	554.5		—		—		554.5		565.3		—		—		565.3
Storm Restoration Costs, Net	497.6		251.6		183.0		63.0		540.6		274.6		200.6		65.4
Regulatory Tracker Mechanisms	551.5		191.0		227.4		84.6		411.5		78.3		207.1		65.8
Derivative Liabilities	335.2		333.8		—		—		334.5		329.2		—		—
Goodwill-related	327.3		—		281.0		—		331.5		—		284.6		—
Asset Retirement Obligations	99.3		31.2		51.5		3.7		97.2		30.8		50.3		3.6
Other Regulatory Assets	136.5		24.8		61.6		13.8		125.4		25.2		55.2		14.7
Total Regulatory Assets	5,563.4		1,819.6		1,529.3		946.3		5,514.7		1,735.9		1,535.6		945.8
Less: Current Portion	785.1		290.6		304.0		102.4		651.1		178.6		285.6		84.1
Total Long-Term Regulatory Assets	$	4,778.3	$	1,529.0	$	1,225.3	$	843.9	$	4,863.6	$	1,557.3	$	1,250.0	$	861.7

As of March 31, 2019 As of December 31, 2018
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
Benefit Costs $ 1,878.7
$ 416.0
$ 534.9
$ 165.8
$ 1,914.8
$ 424.7
$ 544.4
$ 169.6
Income Taxes, Net 730.9
454.3
106.1
8.0
728.6
454.4
105.9
8.3
Securitized Stranded Costs 597.7
—
—
597.7
608.4
—
—
608.4
Storm Restoration Costs, Net 579.0
307.4
204.4
67.2
576.0
302.6
212.9
60.5
Regulatory Tracker Mechanisms 317.7
54.4
160.2
78.0
316.0
33.2
169.1
67.3
Derivative Liabilities 353.5
353.1
—
—
356.5
356.5
—
—
Goodwill-related 344.2
—
295.5
—
348.4
—
299.1
—
Asset Retirement Obligations 92.8
32.8
44.9
3.4
89.2
32.3
42.2
3.3
Other Regulatory Assets 202.2
26.4
62.6
11.9
208.0
27.0
64.6
12.1
Total Regulatory Assets 5,096.7
1,644.4

1,408.6

932.0

5,145.9
1,630.7

1,438.2

929.5
Less: Current Portion 507.3
147.7
234.7
76.6
514.8
125.2
241.7
67.2
Total Long-Term Regulatory Assets $ 4,589.4
$ 1,496.7

$ 1,173.9

$ 855.4

$ 4,631.1
$ 1,505.5

$ 1,196.5

$ 862.3

Storm Filings: On November 16, 2018, CL&P filed for recovery of $153 million of storm costs incurred from October 2017 through May 2018, with recovery over six years to begin May 1, 2019. Through the course of the proceeding, CL&P updated its request to $145.5 million to reflect final invoicing and capitalization amounts. On April 17, 2019, PURA authorized recovery of $141.0 million as part of storm cost recovery and the remainder to be recorded to capital or other balance sheet accounts.

On March 26, 2019, the NHPUC approved the recovery of $38.1 million, plus carrying charges, of storm costs incurred from December 2013 through April 2016 and the transfer of funding from PSNH’s major storm reserve to recover those costs. The costs of these storms (excluding the equity return component of the carrying charges) were deferred as regulatory assets, and the funding reserve collected from customers was accrued as a regulatory liability. As a result of the duration of time between incurring storm costs in December 2013 through April 2016 and final approval from the NHPUC in 2019, PSNH recognized $5.2 million (pre-tax) for the equity return component of the carrying charges within Other Income, Net on the statement of income in the first quarter of 2019, which has been collected from customers. Also included in the March 26, 2019 NHPUC approval is a prospective requirement for PSNH to annually net its storm funding reserve collected from customers against deferred storm costs.

Regulatory Costs in Long-Term Assets: Eversource's regulated companies had ~~$129.5~~$171.3 million (including ~~$41.9~~$82.6 million for CL&P, ~~$52.8~~$50.3 million for NSTAR Electric and ~~$13.9~~$16.9 million for PSNH) and ~~$122.9~~$146.0 million (including ~~$42.1~~$51.8 million for CL&P, ~~$49.3~~$55.7 million for NSTAR Electric and ~~$12.2~~$18.0 million for PSNH) of additional regulatory costs as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively, that were included in long-term assets on the balance sheets. These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency. However, based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates.

Regulatory Liabilities: The components of regulatory liabilities were as follows:



	As of March 31, 2020								As of December 31, 2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
EDIT due to Tax Cuts and Jobs Act	$	2,831.2	$	1,019.8	$	1,063.9	$	391.4	$	2,844.6	$	1,022.8	$	1,071.2	$	392.8
Cost of Removal	579.3		77.4		337.2		14.8		559.8		64.6		330.6		16.3
Benefit Costs	80.1		—		68.6		—		84.5		—		72.2		—
Regulatory Tracker Mechanisms	412.5		121.7		189.8		64.1		325.1		94.8		165.6		57.0
AFUDC - Transmission	74.4		45.7		28.7		—		73.2		46.0		27.2		—
Other Regulatory Liabilities	130.6		34.4		47.4		10.7		132.0		19.6		59.0		13.1
Total Regulatory Liabilities	4,108.1		1,299.0		1,735.6		481.0		4,019.2		1,247.8		1,725.8		479.2
Less: Current Portion	439.9		119.3		219.9		69.0		361.2		82.8		209.2		65.8
Total Long-Term Regulatory Liabilities	$	3,668.2	$	1,179.7	$	1,515.7	$	412.0	$	3,658.0	$	1,165.0	$	1,516.6	$	413.4

As of March 31, 2019 As of December 31, 2018
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
EDIT due to Tax Cuts and Jobs Act $ 2,871.4
$ 1,030.7
$ 1,096.7
$ 394.6
$ 2,883.0
$ 1,031.0
$ 1,103.7
$ 396.4
Cost of Removal 535.0
46.2
313.4
22.1
521.0
39.9
307.1
22.1
Benefit Costs 87.2
—
73.6
—
91.2
—
76.9
—
Regulatory Tracker Mechanisms 332.5
79.5
166.7
39.9
309.0
89.5
163.7
48.3
AFUDC - Transmission 71.4
47.1
24.3
—
70.7
47.4
23.3
—
Revenue Subject to Refund due to Tax Cuts
and Jobs Act
27.0
—
—
15.8
24.6
—
—
12.6
Other Regulatory Liabilities 88.3
29.3
33.9
3.2
80.2
24.0
29.2
4.2
Total Regulatory Liabilities 4,012.8
1,232.8

1,708.6

475.6

3,979.7
1,231.8

1,703.9

483.6
Less: Current Portion 385.4
106.5
194.0
45.7
370.2
109.6
190.6
55.5
Total Long-Term Regulatory Liabilities $ 3,627.4
$ 1,126.3

$ 1,514.6

$ 429.9

$ 3,609.5
$ 1,122.2

$ 1,513.3

$ 428.1

3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize property, plant and equipment by asset category:



Eversource	As of March 31, 2020			As of December 31, 2019
(Millions of Dollars)	As of March 31, 2020			As of December 31, 2019
Distribution - Electric	$	16,117.4		$	15,880.0
Distribution - Natural Gas	3,984.2			3,931.1
Transmission - Electric	11,059.4			10,958.4
Distribution - Water	1,730.2			1,726.5
Solar	200.5			200.2
Utility	33,091.7			32,696.2
Other ⁽¹⁾	1,073.2			1,025.6
Property, Plant and Equipment, Gross	34,164.9			33,721.8
Less: Accumulated Depreciation
Utility	(7,572.4		)	(7,483.5		)
Other	(408.0		)	(387.4		)
Total Accumulated Depreciation	(7,980.4		)	(7,870.9		)
Property, Plant and Equipment, Net	26,184.5			25,850.9
Construction Work in Progress	1,856.9			1,734.6
Total Property, Plant and Equipment, Net	$	28,041.4		$	27,585.5

Eversource As of March 31, 2019 As of December 31, 2018
(Millions of Dollars)
Distribution - Electric $ 15,245.9
$ 15,071.1
Distribution - Natural Gas 3,635.6
3,546.2
Transmission - Electric 10,251.1
10,153.9
Distribution - Water 1,649.5
1,639.8
Solar 169.9
164.1
Utility 30,952.0
30,575.1
Other ⁽¹⁾
798.3
778.6
Property, Plant and Equipment, Gross 31,750.3
31,353.7
Less: Accumulated Depreciation
Utility (7,229.5 ) (7,126.2 )
Other (348.7 ) (336.7 )
Total Accumulated Depreciation (7,578.2 ) (7,462.9 )
Property, Plant and Equipment, Net 24,172.1
23,890.8
Construction Work in Progress 1,860.7
1,719.6
Total Property, Plant and Equipment, Net $ 26,032.8
$ 25,610.4



	As of March 31, 2020									As of December 31, 2019
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Distribution - Electric	$	6,607.8		$	7,250.8		$	2,299.1		$	6,485.5		$	7,163.7		$	2,271.1
Transmission - Electric	5,094.1			4,444.7			1,515.8			5,043.0			4,411.9			1,498.7
Solar	—			200.5			—			—			200.2			—
Property, Plant and Equipment, Gross	11,701.9			11,896.0			3,814.9			11,528.5			11,775.8			3,769.8
Less: Accumulated Depreciation	(2,413.6		)	(2,925.2		)	(810.1		)	(2,385.7		)	(2,895.3		)	(799.9		)
Property, Plant and Equipment, Net	9,288.3			8,970.8			3,004.8			9,142.8			8,880.5			2,969.9
Construction Work in Progress	472.6			643.8			182.5			483.0			592.3			159.6
Total Property, Plant and Equipment, Net	$	9,760.9		$	9,614.6		$	3,187.3		$	9,625.8		$	9,472.8		$	3,129.5

As of March 31, 2019 As of December 31, 2018
(Millions of Dollars) CL&P
NSTAR
Electric
PSNH CL&P
NSTAR
Electric
PSNH
Distribution - Electric $ 6,255.8
$ 6,828.5
$ 2,201.8
$ 6,176.4
$ 6,756.4
$ 2,178.6
Transmission - Electric 4,746.4
4,085.6
1,370.2
4,700.5
4,065.9
1,338.7
Solar —
169.9
—
—
164.1
—
Property, Plant and Equipment, Gross 11,002.2
11,084.0
3,572.0
10,876.9
10,986.4
3,517.3
Less: Accumulated Depreciation (2,328.0 ) (2,749.9 ) (789.3 ) (2,302.6 ) (2,702.0 ) (772.9 )
Property, Plant and Equipment, Net 8,674.2
8,334.1
2,782.7
8,574.3
8,284.4
2,744.4
Construction Work in Progress 391.7
581.5
137.9
335.4
510.3
135.7
Total Property, Plant and Equipment, Net $ 9,065.9
$ 8,915.6
$ 2,920.6
$ 8,909.7
$ 8,794.7
$ 2,880.1


⁽¹⁾	These assets are primarily comprised of ~~building improvements,~~ computer software, hardware and equipment at Eversource ~~Service.~~Service and buildings at The Rocky River Realty Company.

4. DERIVATIVE INSTRUMENTS

The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers. The costs associated with supplying energy to customers are recoverable from customers in future rates. These regulated companies manage the risks associated with the price volatility of energy and energy-related products through the use of derivative and non-derivative contracts.

Many of the derivative contracts meet the definition of, and are designated as, normal and qualify for accrual accounting under the applicable accounting guidance. The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses on the statements of income, as applicable, as electricity or natural gas is delivered.

Derivative contracts that are not designated as normal are recorded at fair value as current or long-term Derivative Assets or Derivative Liabilities on the balance sheets. For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract settlement amounts are recovered from, or refunded to, customers in their respective energy supply rates.

The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative Liabilities, with current and long-term portions, on the balance sheets. The following table presents the gross fair values of contracts, categorized by risk type, and the net amounts recorded as current or long-term derivative assets or liabilities:


		As of March 31, 2019									As of December 31, 2018										As of March 31, 2020									As of December 31, 2019
(Millions of Dollars)	Fair Value Hierarchy	Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative			Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative			Fair Value Hierarchy	Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative			Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative
Current Derivative Assets:
CL&P	Level 3	$	10.4		$	(1.9	)	$	8.5		$	9.6		$	(3.4	)	$	6.2		Level 3	$	12.8		$	(0.4	)	$	12.4		$	12.2		$	(0.4	)	$	11.8
Other	Level 2	—			—			—			1.5			(0.9		)	0.6
Long-Term Derivative Assets:
CL&P	Level 3	73.1			(2.2		)	70.9			74.2			(2.3		)	71.9			Level 3	68.2			(2.1		)	66.1			67.5			(2.1		)	65.4
Current Derivative Liabilities:
CL&P	Level 3	(59.7		)	—			(59.7		)	(55.1		)	—			(55.1		)	Level 3	(69.6		)	—			(69.6		)	(67.8		)	—			(67.8		)
Other	Level 2	(0.4		)	0.2			(0.2		)	—			—			—			Level 2	(1.4		)	0.3			(1.1		)	(5.2		)	—			(5.2		)
Long-Term Derivative Liabilities:
CL&P	Level 3	(372.8		)	—			(372.8		)	(379.5		)	—			(379.5		)	Level 3	(342.7		)	—			(342.7		)	(338.6		)	—			(338.6		)
Other	Level 2	(0.2		)	—			(0.2		)	—			—			—			Level 2	(0.3		)	—			(0.3		)	(0.1		)	—			(0.1		)


⁽¹⁾	Amounts represent derivative assets and liabilities that Eversource elected to record net on the balance sheets. These amounts are subject to master netting agreements or similar agreements for which the right of offset exists.

For further information on the fair value of derivative contracts, see Note ~~1E,~~1D, "Summary of Significant Accounting Policies - Fair Value Measurements," to the financial statements.

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management: As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined ~~capacity~~capacities of these contracts ~~is 787~~as of both March 31, 2020 and December 31, 2019, were676 MW. The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets. In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.

As of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, Eversource had New York Mercantile Exchange ~~("NYMEX")~~(NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of ~~6.2~~3.5 million and ~~12.5~~9.6 million MMBtu of natural gas, respectively.

For the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, there were losses of ~~$5.2~~$18.0 million and ~~$36.1~~$5.2 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts.

Fair Value Measurements of Derivative Instruments

Derivative contracts classified as Level 2 in the fair value hierarchy relate to the financial contracts for natural gas futures. Prices are obtained from broker quotes and are based on actual market activity. The contracts are valued using NYMEX natural gas prices. Valuations of these contracts also incorporate discount rates using the yield curve approach.

The fair value of derivative contracts classified as Level 3 utilizes significant unobservable inputs. The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions related to exit price. Significant observable inputs for valuations of these contracts include energy and energy-related product prices in future years for which quoted prices in an active market exist. Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy and energy-related products, and accounting requirements. The future ~~power and~~ capacity prices for periods that are not quoted in an active market or established at auction are based on available market data and are escalated based on estimates of inflation in order to address the full term of the contract.

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled payments and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty's credit rating for assets and the Company's credit rating for liabilities. Valuations incorporate estimates of premiums or discounts that would be required by a market participant to arrive at an exit price, using historical market transactions adjusted for the terms of the contract.

The following is a summary of ~~CL&P's~~ Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts:



	As of March 31, 2020								As of December 31, 2019
CL&P	Range				Weighted Average ⁽¹⁾			Period Covered	Range					Period Covered
Capacity Prices	$	4.30	—	$5.82	$	4.81	per kW-Month	2024 - 2026	$	3.01	—	$7.34	per kW-Month	2023 - 2026
Forward Reserve Prices	0.80		—	1.90	1.35		per kW-Month	2020 - 2024	0.80		—	1.90	per kW-Month	2020 - 2024

As of March 31, 2019 As of December 31, 2018
CL&P Range Period Covered Range Period Covered
Capacity Prices $ 4.30
— 7.34
per kW-Month 2023 - 2026 $ 4.30
— 7.44
per kW-Month 2022 - 2026
Forward Reserve 0.75
— 1.78
per kW-Month 2019 - 2024 0.75
— 1.78
per kW-Month 2019 - 2024


⁽¹⁾	Unobservable inputs were weighted by the relative future capacity and forward reserve prices and contractual MWs over the periods covered.

Exit price premiums of ~~3.7~~1.5 percent through ~~15.1~~13 percent, or a weighted average of 11.9 percent, are also applied to these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts. The risk premium was weighted by the relative fair value of the net derivative instruments.

Significant increases or decreases in future capacity or forward reserve prices in isolation would decrease or increase, respectively, the fair value of the derivative liability. Any increases in risk premiums would increase the fair value of the derivative liability. Changes in these fair values are recorded as a regulatory asset or liability and do not impact net income.

Valuations using significant unobservable inputs: The following table presents changes in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis. The derivative assets and liabilities are presented on a net basis.



CL&P	For the Three Months Ended March 31,
(Millions of Dollars)	2020			2019
Derivatives, Net:
Fair Value as of Beginning of Period	$	(329.2	)	$	(356.5	)
Net Realized/Unrealized Losses Included in Regulatory Assets	(16.4		)	(5.3		)
Settlements	11.8			8.7
Fair Value as of End of Period	$	(333.8	)	$	(353.1	)

CL&P For the Three Months Ended March 31,
(Millions of Dollars) 2019 2018
Derivatives, Net:
Fair Value as of Beginning of Period $ (356.5 ) $ (362.3 )
Net Realized/Unrealized Losses Included in Regulatory Assets (5.3 ) (36.9 )
Settlements 8.7
12.7
Fair Value as of End of Period $ (353.1 ) $ (386.5 )

5. MARKETABLE SECURITIES

Eversource holds marketable securities that are primarily used to fund certain non-qualified executive benefits. The trusts that hold marketable securities are not subject to regulatory oversight by state or federal agencies. CYAPC and YAEC maintain legally restricted trusts, each of which holds marketable securities, to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Equity Securities: Unrealized gains and losses on equity securities held in Eversource's non-qualified executive benefit trust are recorded in Other Income, Net on the statements of income. The fair value of these equity securities as of March 31, ~~2019~~2020 and December 31, ~~2018~~2019 was ~~$49.6~~$34.8 million and ~~$44.0~~$45.7 million, respectively. For the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, there were unrealized ~~gains~~losses of ~~$1.0~~$9.1 million and unrealized ~~losses~~gains of ~~$0.7~~$1.0 million, respectively, recorded in Other Income, Net related to these equity securities.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of ~~$166.6~~$162.0 million and ~~$200.0~~$182.8 million as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively. Unrealized gains and losses for these spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.

Available-for-Sale Debt Securities: The following is a summary of the available-for-sale debt securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.



	As of March 31, 2020									As of December 31, 2019
Eversource (Millions of Dollars)	Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses			Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses			Fair Value
Debt Securities	$	224.2	$	10.9	$	(0.6	)	$	234.5	$	228.4	$	5.8	$	(0.1	)	$	234.1

As of March 31, 2019 As of December 31, 2018
Eversource
(Millions of Dollars)
Amortized Cost
Pre-Tax
Unrealized Gains

Pre-Tax
Unrealized
Losses
Fair Value Amortized Cost
Pre-Tax
Unrealized Gains

Pre-Tax
Unrealized
Losses
Fair Value
Debt Securities $ 212.3
$ 0.9
$ (0.9 ) $ 212.3
$ 190.0
$ 0.4
$ (4.0 ) $ 186.4

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of ~~$170.7~~$198.7 million and ~~$143.9~~$198.1 million as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

Unrealized gains and losses on available-for-sale debt securities held in Eversource's non-qualified benefit trust are recorded in Accumulated Other Comprehensive ~~Income.~~Income, excluding amounts related to credit losses or losses on securities intended to be sold, which are recorded in Other Income, Net. There have been no significant unrealized losses ~~other-than-temporary impairments, or~~and no credit losses for the three months ended March 31, 2020 and 2019, and ~~2018.~~ no allowance for credit losses as of March 31, 2020. Factors considered in determining whether a credit loss exists include ~~the duration and severity of the impairment,~~ adverse conditions specifically affecting the issuer, ~~and~~ the payment history, ratings and rating changes of the ~~security.~~security, and the severity of the impairment. For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated. Debt securities included in Eversource's non-qualified benefit trust portfolio are investment-grade bonds with a lower default risk based on their credit quality.

As of March 31, ~~2019,~~2020, the contractual maturities of available-for-sale debt securities were as follows:


Eversource (Millions of Dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than one year⁽¹⁾	$	29.7	$	29.6	$	56.5	$	56.6
One to five years	48.5		48.5		40.1		41.7
Six to ten years	39.0		39.4		38.6		41.4
Greater than ten years	95.1		94.8		89.0		94.8
Total Debt Securities	$	212.3	$	212.3	$	224.2	$	234.5


⁽¹⁾	Amounts in the Less than one year category include securities in the CYAPC and YAEC spent nuclear fuel trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.

Realized Gains and Losses: Realized gains and losses are recorded in Other Income, Net for Eversource's benefit trust and are offset in Other Long-Term Liabilities for CYAPC and YAEC. Eversource utilizes the specific identification basis method for the Eversource non-qualified benefit trust, and the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts to compute the realized gains and losses on the sale of marketable securities.

Fair Value Measurements: The following table presents the marketable securities recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:



Eversource (Millions of Dollars)	As of March 31, 2020		As of December 31, 2019
Level 1:
Mutual Funds and Equities	$	196.8	$	228.5
Money Market Funds	44.1		46.0
Total Level 1	$	240.9	$	274.5
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	100.9	$	96.8
Corporate Debt Securities	45.9		44.0
Asset-Backed Debt Securities	13.7		12.9
Municipal Bonds	22.2		26.7
Other Fixed Income Securities	7.7		7.7
Total Level 2	$	190.4	$	188.1
Total Marketable Securities	$	431.3	$	462.6

Eversource
(Millions of Dollars)
As of March 31, 2019 As of December 31, 2018
Level 1:
Mutual Funds and Equities $ 216.2
$ 244.0
Money Market Funds 24.2
25.9
Total Level 1 $ 240.4
$ 269.9
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury) $ 104.3
$ 79.6
Corporate Debt Securities 44.7
39.5
Asset-Backed Debt Securities 13.9
14.0
Municipal Bonds 16.0
19.2
Other Fixed Income Securities 9.2
8.2
Total Level 2 $ 188.1
$ 160.5
Total Marketable Securities $ 428.5
$ 430.4

U.S. government issued debt securities are valued using market approaches that incorporate transactions for the same or similar bonds and adjustments for yields and maturity dates. Corporate debt securities are valued using a market approach, utilizing recent trades of the same or similar instruments and also incorporating yield curves, credit spreads and specific bond terms and conditions. Asset-backed debt securities include collateralized mortgage obligations, commercial mortgage backed securities, and securities collateralized by auto loans, credit card loans or receivables. Asset-backed debt securities are valued using recent trades of similar instruments, prepayment assumptions, yield curves, issuance and maturity dates, and tranche information. Municipal bonds are valued using a market approach that incorporates reported trades and benchmark yields. Other fixed income securities are valued using pricing models, quoted prices of securities with similar characteristics, and discounted cash flows.

6. SHORT-TERM AND LONG-TERM DEBT

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, ~~and~~ Yankee Gas and Aquarion Water Company of Connecticut are also parties to a five-year $1.45 billion revolving credit facility, which terminates on December ~~8, 2023.~~6, 2024. The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility, which terminates on December ~~8, 2023.~~6, 2024. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.

The amount of borrowings outstanding and available under the commercial paper programs were as follows:



	Borrowings Outstanding as of				Available Borrowing Capacity as of				Weighted-Average Interest Rate as of
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
(Millions of Dollars)	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Eversource Parent Commercial Paper Program	$	738.4	$	1,224.9	$	711.6	$	225.1	3.38	%	1.98	%
NSTAR Electric Commercial Paper Program	88.0		10.5		562.0		639.5		1.25	%	1.63	%

Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 1,371.0
$ 631.5
$ 79.0
$ 818.5
2.69 % 2.77 %
NSTAR Electric Commercial Paper Program 368.4
278.5
281.6
371.5
2.49 % 2.50 %

There were no0 borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, ~~2019~~2020 or December 31, 2018. Eversource's water distribution segment has a $100 million revolving credit facility, which expires on August 19, 2019, and there were no borrowings outstanding as of March 31, 2019 or December 31, 2018.2019.

Amounts outstanding under the commercial paper programs and revolving credit ~~facility~~facilities are included in Notes Payable and ~~are~~ classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time. As a result of the ~~CL&P~~NSTAR Gas long-term debt ~~issuance on April 1, 2019,~~issuances in May 2020, $25.0 million of the ~~net proceeds~~current portion of ~~which were used to repay CL&P's short-term borrowings, $261.6~~long-term debt and $165.0 million of commercial paper borrowings under the Eversource parent commercial paper program were ~~reclassified to~~classified as Long-Term Debt as of March 31, ~~2019.~~2020.

~~We expect~~The Company expects the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with ~~our~~ existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist ~~them~~ in meeting their short-term borrowing needs. ~~In addition, growth in Eversource's key business initiatives requires cash infusion to those subsidiaries.~~ Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, 2020, there were intercompany loans from Eversource parent to CL&P of $219.0 million, to PSNH of $84.7 million, and to a subsidiary of NSTAR Electric of $38.4 million. As of December 31, 2019, there were intercompany loans from Eversource parent to CL&P of ~~$261.6~~$63.8 million, to PSNH of ~~$61.0~~$27.0 million, and to ~~Harbor Electric Energy Company,~~ a ~~wholly-owned~~ subsidiary of NSTAR Electric ~~("HEEC"),~~ of ~~$22.3 million. As of December 31, 2018, there were intercompany loans from Eversource parent to PSNH of $57.0~~$30.3 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and ~~are~~ classified in current liabilities on the respective subsidiary's balance sheets. ~~As a result of~~

Long-Term Debt Issuance Authorization: On January 27, 2020, the ~~CL&P~~DPU approved NSTAR Gas' request for authorization to issue up to $270 million in long-term debt ~~issuance on April 1, 2019, $261.6 million of CL&P's intercompany borrowings were reclassified to Long-Term Debt as of March~~through December 31, 2019. The proceeds from the CL&P April 1, 2019 debt issuance were used to repay CL&P’s short-term borrowings that were outstanding as of March 31, 2019, and to fund capital expenditures and working capital.2021.

Long-Term Debt:The following table summarizes long-term debt issuances and repayments:



(Millions of Dollars)	Issuance/(Repayment)			Issue Date or Repayment Date	Maturity Date	Use of Proceeds for Issuance/ Repayment Information
NSTAR Electric:
3.95% 2020 Debentures	$	400.0		March 2020	April 2030	Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes	(95.0		)	March 2020	March 2020	Paid at maturity
Other:
Eversource Parent 3.45% Series P Senior Notes	350.0			January 2020	January 2050	Paid short-term borrowings
NSTAR Gas 4.46% Series N First Mortgage Bonds	(125.0		)	January 2020	January 2020	Paid at maturity
Yankee Gas 4.87% Series K First Mortgage Bonds	(50.0		)	April 2020	April 2020	Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds	75.0			May 2020	May 2025	Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds	115.0			May 2020	May 2050	Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes

(Millions of Dollars) Issue Date Issuance/(Repayment) Maturity Date Use of Proceeds for Issuance/
Repayment Information
CL&P:
4.00% 2018 Series A First Mortgage Bonds ⁽¹⁾
April 2019 $ 300.0
April 2048 Repaid short-term borrowings that were used to repay long-term debt that matured on February 1, 2019 and fund capital expenditures and working capital
5.50% 2009 Series A First Mortgage Bonds February 2009 (250.0 ) February 2019 Repaid at maturity on February 1, 2019


⁽¹⁾	~~These bonds are part of the same series issued by CL&P in March 2018. The aggregate outstanding principal amount of these bonds is now $800 million.~~

7. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

Rate Reduction Bonds: On May 8, 2018, PSNH Funding, a wholly-owned subsidiary of PSNH, issued $635.7 million of securitized RRBs in multiple tranches with a weighted average interest rate of 3.66 percent, and final maturity dates ranging from 2026 to 2035. The RRBs are expected to be repaid by February 1, 2033. RRB payments consist of principal and interest and ~~will be~~are paid semi-annually, beginning on February 1, 2019. The RRBs were issued pursuant to a finance orderissued by the NHPUC on January 30, 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.

PSNH Funding was formed solely to issue RRBs to finance PSNH's unrecovered remaining costs associated with the divestiture of its generation assets. PSNH Funding is considered a VIE primarily because the equity capitalization is insufficient to support its operations. PSNH has the power to direct the significant activities of the VIE and is most closely associated with the VIE as compared to other interest holders. Therefore, PSNH is considered the primary beneficiary and consolidates PSNH Funding in its consolidated financial statements. The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:


(Millions of Dollars)
Balance Sheet:	As of March 31, 2019		As of December 31, 2018		As of March 31, 2020		As of December 31, 2019
Restricted Cash - Current Portion (included in Prepayments and Other Current Assets)	$	21.1	$	47.5
Restricted Cash - Current Portion (included in Current Assets)					$	16.6	$	32.5
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	3.2		3.2		3.2		3.2
Securitized Stranded Cost (included in Regulatory Assets)	597.7		608.4		554.5		565.3
Other Regulatory Liabilities (included in Regulatory Liabilities)	10.0		5.8		6.0		5.6
Accrued Interest (included in Other Current Liabilities)	3.5		14.4		3.3		8.6
Rate Reduction Bonds - Current Portion	43.2		52.3		43.2		43.2
Rate Reduction Bonds - Long-Term Portion	561.7		583.3		518.5		540.1



(Millions of Dollars)	For the Three Months Ended
Income Statement:	March 31, 2020		March 31, 2019
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	$	10.8	$	10.6
Interest Expense on RRB Principal (included in Interest Expense)	5.0		5.4

(Millions of Dollars) For the Three Months Ended
Income Statement: March 31, 2019 March 31, 2018
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net) $ 10.6
$ —
Interest Expense on RRB Principal (included in Interest Expense) 5.4
—

8. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION

Eversource provides defined benefit retirement plans ~~("Pension Plans")~~(Pension Plans) that cover eligible employees. In addition to the Pension Plans, Eversource maintains non-qualified defined benefit retirement plans ~~("SERP Plans")~~(SERP Plans), which provide benefits in excess of Internal Revenue Code limitations to eligible participants consisting of current and retired employees. Eversource also provides defined benefit postretirement plans ~~("PBOP Plans")~~(PBOP Plans) that provide life insurance and a health reimbursement arrangement created for the purpose of reimbursing retirees and dependents for health insurance premiums and certain medical expenses to eligible employees that meet certain age and service eligibility requirements.

The components of net periodic benefit expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets for future recovery, are shown below. The service cost component of net periodic benefit ~~expense and the intercompany allocations,~~expense/(income), less the capitalized ~~portions, are~~portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit ~~expense for pension, SERP and PBOP~~expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP expense reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include the intercompany allocations or the corresponding capitalized and deferred portion, as these amounts are cash settled on a short-term basis.



	Pension and SERP												PBOP
	For the Three Months Ended March 31, 2020												For the Three Months Ended March 31, 2020
(Millions of Dollars)	Eversource			CL&P			NSTAR Electric			PSNH			Eversource			CL&P			NSTAR Electric			PSNH
Service Cost	$	19.6		$	5.7		$	3.8		$	2.2		$	2.6		$	0.5		$	0.6		$	0.2
Interest Cost	44.3			9.5			9.6			4.9			6.1			1.2			1.7			0.6
Expected Return on Plan Assets	(100.3		)	(20.0		)	(25.8		)	(11.3		)	(18.1		)	(2.4		)	(8.5		)	(1.4		)
Actuarial Loss	49.3			10.0			13.3			4.1			2.1			0.4			0.7			0.1
Prior Service Cost/(Credit)	0.3			—			0.1			—			(5.4		)	0.2			(4.2		)	0.1
Total Net Periodic Benefit Expense/(Income)	$	13.2		$	5.2		$	1.0		$	(0.1	)	$	(12.7	)	$	(0.1	)	$	(9.7	)	$	(0.4	)
Intercompany Allocations	N/A			$	1.9		$	1.9		$	0.6		N/A			$	(0.4	)	$	(0.4	)	$	(0.2	)



	Pension and SERP												PBOP
	For the Three Months Ended March 31, 2019												For the Three Months Ended March 31, 2019
(Millions of Dollars)	Eversource			CL&P			NSTAR Electric			PSNH			Eversource			CL&P			NSTAR Electric			PSNH
Service Cost	$	19.3		$	4.8		$	3.9		$	2.6		$	2.1		$	0.4		$	0.4		$	0.2
Interest Cost	54.2			11.5			11.9			6.2			8.1			1.5			2.3			0.9
Expected Return on Plan Assets	(92.3		)	(18.8		)	(24.4		)	(10.3		)	(16.6		)	(2.3		)	(7.5		)	(1.3		)
Actuarial Loss	35.8			8.1			9.4			3.5			2.5			0.4			0.9			0.2
Prior Service Cost/(Credit)	1.1			—			0.1			—			(5.8		)	0.3			(4.2		)	0.1
Total Net Periodic Benefit Expense/(Income)	$	18.1		$	5.6		$	0.9		$	2.0		$	(9.7	)	$	0.3		$	(8.1	)	$	0.1
Intercompany Allocations	N/A			$	7.8		$	3.0		$	2.4		N/A			$	(0.1	)	$	(0.2	)	$	(0.1	)

Pension and SERP
For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Service Cost $ 19.3
$ 4.8
$ 3.9
$ 2.6
$ 22.7
$ 5.7
$ 4.7
$ 2.9
Interest Cost 54.2
11.5
11.9
6.2
48.4
10.6
10.8
5.3
Expected Return on Pension Plan Assets (92.3 ) (18.8 ) (24.4 ) (10.3 ) (98.0 ) (20.8 ) (25.2 ) (10.9 )
Actuarial Loss 35.8
8.1
9.4
3.5
36.0
7.4
10.5
3.3
Prior Service Cost 1.1
—
0.1
—
2.2
0.4
0.2
0.1
Total Net Periodic Benefit Expense $ 18.1
$ 5.6
$ 0.9
$ 2.0
$ 11.3
$ 3.3
$ 1.0
$ 0.7
Intercompany Allocations N/A
$ 7.8
$ 3.0
$ 2.4
N/A
$ 1.4
$ 1.5
$ 0.5

PBOP
For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
Service Cost $ 2.1
$ 0.4
$ 0.4
$ 0.2
$ 2.7
$ 0.5
$ 0.5
$ 0.3
Interest Cost 8.1
1.5
2.3
0.9
7.6
1.4
2.2
0.8
Expected Return on Plan Assets (16.6 ) (2.3 ) (7.5 ) (1.3 ) (18.1 ) (2.6 ) (8.1 ) (1.5 )
Actuarial Loss 2.5
0.4
0.9
0.2
2.6
0.3
0.7
0.2
Prior Service Cost/(Credit) (5.8 ) 0.3
(4.2 ) 0.1
(5.9 ) 0.3
(4.3 ) 0.1
Total Net Periodic Benefit Expense/(Income) $ (9.7 ) $ 0.3
$ (8.1 ) $ 0.1
$ (11.1 ) $ (0.1 ) $ (9.0 ) $ (0.1 )
Intercompany Allocations N/A
$ (0.1 ) $ (0.2 ) $ (0.1 ) N/A
$ (0.3 ) $ (0.3 ) $ (0.1 )

9. COMMITMENTS AND CONTINGENCIES

A. Environmental Matters

Eversource, CL&P, NSTAR Electric and PSNH are subject to environmental laws and regulations intended to mitigate or remove the effect of past operations and improve or maintain the quality of the environment. These laws and regulations require the removal or the remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current and former operating sites. Eversource, CL&P, NSTAR Electric and PSNH have an active environmental auditing and training program and each believes it is substantially in compliance with all enacted laws and regulations.

The number of environmental sites and related reserves for which remediation or long-term monitoring, preliminary site work or site assessment is being performed are as follows:



	As of March 31, 2020			As of December 31, 2019
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	55	$	79.1	57	$	81.0
CL&P	15	11.8		15	11.4
NSTAR Electric	13	6.2		15	8.0
PSNH	9	7.4		9	7.5

As of March 31, 2019 As of December 31, 2018
Number of Sites
Reserve
(in millions)
Number of Sites
Reserve
(in millions)
Eversource 59
$ 64.8
60
$ 64.7
CL&P 15
5.6
15
5.4
NSTAR Electric 15
10.5
16
10.9
PSNH 9
5.3
9
5.4

Included in the ~~Eversource~~ number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability. The reserve balances related to these former MGP sites were ~~$50.6~~$67.4 million and ~~$50.1~~$67.9 million as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively, and related primarily to the natural gas business segment.

These reserve estimates are subjective in nature as they take into consideration several different remediation options at each specific site. The reliability and precision of these estimates can be affected by several factors, including new information concerning either the level of contamination at the site, the extent of Eversource's, CL&P's, NSTAR Electric's and PSNH's responsibility for remediation or the extent of remediation required, recently enacted laws and regulations or changes in cost estimates due to certain economic factors. It is possible that new information or future developments could require a reassessment of the potential exposure to required environmental remediation. As this information becomes available, management will continue to assess the potential exposure and adjust the reserves accordingly.

B. ~~Long-Term Contractual Arrangements~~

On December 28, 2018, under Public Act 17-3, "An Act Concerning Zero Carbon Procurement," DEEP selected the Millstone Nuclear Power Station generation facility, along with smaller generation facilities, in DEEP’s zero-carbon request for proposal. CL&P and UI were directed by DEEP to enter into ten-year contracts to purchase a combined total of approximately 9 million MWh annually from the Millstone generation facility. On March 15, 2019, CL&P and UI each signed a ten-year contract with the owner of Millstone Nuclear Power Station in order to purchase a combined amount of approximately 50 percent of the facility's output (approximately 40 percent by CL&P). The Millstone Nuclear Power Station has a 2,112 MW nameplate capacity. The parties filed the contract with PURA on March 29, 2019 for review and approval. A decision from PURA is expected in the third quarter of 2019.

The significant output of the generation facility, the contract period, and the pricing will result in a significant multi-billion dollar commitment. We plan to sell the energy purchased under this contract into the market and use the proceeds from these energy sales to offset the contract costs. As the net costs under this contract will be recovered from customers in future rates, the contract will not have an impact on the net income of CL&P.

C. Guarantees and Indemnifications

In the normal course of business, Eversource parent provides credit assurances on behalf of its subsidiaries, including CL&P, NSTAR Electric and PSNH, in the form of guarantees.

Eversource parent issued a guaranty on behalf of its subsidiary, NPT, under which, beginning at the time the Northern Pass Transmission line goes into commercial operation, Eversource parent will guarantee the financial obligations of NPT under the TSA with HQ in an amount not to exceed $25 million. Eversource parent's obligations under the guaranty expire upon the full, final and indefeasible payment of the guaranteed obligations. Eversource parent has also entered into a guaranty on behalf of NPT under which Eversource parent will guarantee NPT's obligations under a facility with a financial institution pursuant to which NPT may request letters of credit in an aggregate amount of up to approximately $14 million.

Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications. The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties as of March 31, ~~2019:~~2020:


Company	Description	Maximum Exposure (in millions)		Expiration Dates	Description	Maximum Exposure (in millions)		Expiration Dates
On behalf of subsidiaries:
Eversource Investment LLC	Revolution Wind and South Fork Wind ⁽¹⁾	$	113.9	-
Various	Surety Bonds⁽²⁾	32.0		2019 - 2021	Surety Bonds⁽¹⁾	$	30.0	2020 - 2023
Rocky River Realty Company and Eversource Service	Lease Payments for Real Estate	7.3		2024	Lease Payments for Real Estate	6.1		2024
Bay State Wind LLC	Real Estate Purchase	2.5		2019	Real Estate Purchase	2.5		2020
Sunrise Wind LLC					Offshore Wind ⁽²⁾	2.2		-

⁽¹⁾

Eversource parent issued a declining balance guaranty on behalf of its subsidiary, Eversource Investment LLC. Eversource parent will guarantee, as a primary obligor, the financial obligations, primarily all post-closing payment obligations of Eversource Investment LLC, under the Sale and Purchase Agreement and an Irrevocable Equity Commitment Letter with Ørsted. Eversource parent's obligations under the guaranty expire upon the full, final and indefeasible payment of the guaranteed obligations.


⁽²⁾	Surety bond expiration dates reflect termination dates, the majority of which will be renewed or extended. Certain surety bonds contain credit ratings triggers that would require Eversource parent to post collateral in the event that the unsecured debt credit ratings of Eversource parent are downgraded.

⁽²⁾

On October 25, 2019, Eversource parent issued a guaranty on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guaranty Sunrise Wind LLC’s performance of certain obligations, in an amount not to exceed $15.4 million, under the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement (the Agreement). The Agreement was executed on October 23, 2019, by and between the New York State Energy Research and Development Authority (NYSERDA) and Sunrise Wind LLC. The Company regularly reviews performance risk under this arrangement, and in the event it becomes probable that Eversource parent will be required to perform under the guarantee, the amount of probable payment will be recorded. As of March 31, 2020, the fair value of the guarantee was immaterial.

Eversource parent issued a declining balance guaranty on behalf of its subsidiary, Eversource Gas Transmission LLC, to guarantee the payment of the subsidiary's authorized capital contributions for its investment in the Access Northeast project. As of March 31, 2019, the amount of the Access Northeast project capital contribution guaranty was $184.8 million. On April 1, 2019, pursuant to a provision in the partnership agreement jointly entered into by Eversource, Enbridge, Inc. and National Grid plc, through Algonquin Gas Transmission, LLC, the Access Northeast project was terminated. The rights under the guaranty were released, which terminated the obligation of Eversource parent.

D.C. Spent Nuclear Fuel Obligations - Yankee Companies

CL&P, NSTAR Electric and PSNH have plant closure and fuel storage cost obligations to the Yankee Companies, which have each completed the physical decommissioning of their respective nuclear power facilities and are now engaged in the long-term storage of their spent fuel. The Yankee Companies fund these costs through litigation proceeds received from the DOE and, to the extent necessary, through wholesale, FERC-approved rates charged under power purchase agreements with several New England utilities, including CL&P, NSTAR Electric and PSNH. CL&P, NSTAR Electric and PSNH, in turn recover these costs from their customers through state regulatory commission-approved retail rates.

The Yankee Companies collect amounts that management believes are adequate to recover the remaining plant closure and fuel storage cost estimates for the respective plants. Management believes CL&P and NSTAR Electric will recover their shares of these obligations from their customers. PSNH has recovered its total share of these costs from its customers.

Spent Nuclear Fuel Litigation:

The Yankee Companies have filed complaints against the DOE in the Court of Federal Claims seeking monetary damages resulting from the DOE's failure to accept delivery of, and provide for a permanent facility to store, spent nuclear fuel pursuant to the terms of the 1983 spent fuel and ~~high level~~high-level waste disposal contracts between the Yankee Companies and the DOE. The court ~~had~~ previously awarded the Yankee Companies damages for ~~Phase~~Phases I, II and III of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2012, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase IV Damages - On May 22, 2017, each of the Yankee Companies filed ~~subsequent~~a fourth set of lawsuits against the DOE in the Court of Federal

Claims. The Yankee Companies sought monetary damages totaling $104.4 million for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2013 to 2016 ~~(“DOE~~(DOE Phase ~~IV”)~~IV). On February 21, 2019, the Yankee Companies received a partial summary judgment and partial final judgment in their favor for the undisputed amount of monetary damages of $103.2 million. The court awarded CYAPC, YAEC and MYAPC damages of $40.7 million, $28.1 million and $34.4 million, respectively. The DOE did not appeal the court's judgment and the decision became final on April 23, 2019. ~~The DOE~~On June 12, 2019, each of the Yankee Companies received the damages proceeds. On June 12, 2019, the court accepted an offer of judgment in the amount of $0.5 million to settle the disputed amount of approximately $1 million in Phase IV ~~trial~~contested damages. The Yankee Companies received the $0.5 million payment in July 2019.

In September 2019, the Yankee Companies made a required informational filing with FERC as to the use of proceeds, for which approval was received in the ~~$1.2~~fourth quarter of 2019. In December 2019, YAEC and MYAPC returned proceeds of $5.4 million and $21.0 million, respectively, to its member companies, of ~~remaining damages is expected~~which the Eversource utilities (CL&P, NSTAR Electric and PSNH) received a total of $2.8 million from YAEC and $5.0 million from MYAPC. The Eversource utilities refund these amounts received to ~~begin~~their utility customers. Also, in ~~June 2019.~~December 2019, CYAPC paid $29.0 million to the DOE to partially settle its pre-1983 spent nuclear fuel obligation.

E.D. FERC ROE Complaints

Four separate complaints ~~have been~~were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the ~~"Complainants")~~Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive ~~("incentive cap")~~(incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.

The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, the FERC set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the ~~"Court")~~Court).

All amounts associated with the first complaint period have been refunded, which totaled $38.9 million (pre-tax and excluding interest) at Eversource and reflected both the base ROE and incentive cap prescribed by the FERC order. The refund consisted of $22.4 million for CL&P, $13.7 million for NSTAR Electric and $2.8 million for PSNH.

Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of March 31, 2020 and December 31, 2019. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, 2020 and December 31, 2019.

On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. ~~The parties to these proceedings were directed to submit briefs on this new proposed framework and how they would apply the proposed framework in each of the four complaint proceedings.~~ Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.

The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those ~~preliminary~~illustrative calculations indicated that for the first complaint period, for the NETOs, ~~that~~which FERC concludes are of average financial risk, ~~(1) a preliminary range of presumptively just and reasonable base ROEs is 9.60 percent to 10.99 percent; (2) the pre-existing base ROE of 11.14 percent is therefore unjust and unreasonable; (3)~~ the preliminary just and reasonable base ROE is 10.41 ~~percent;~~percent and ~~(4)~~ the preliminary incentive cap on total ROE is 13.08 percent.

If the results of ~~these~~the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods.

~~Although the order provided illustrative calculations, FERC stated that these calculations are merely preliminary. The FERC’s~~ These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.

On November 21, 2019, FERC issued an order concerning the transmission ROEs for the Midcontinent ISO transmission owners (MISO). In that order, FERC adopted another new methodology for determining base ROEs for MISO, which differed significantly from the methodology and framework set forth in its October 16, 2018 FERC order on the NETOs’ ROE dockets. On December 23, 2019, the NETOs filed a Supplemental Paper Hearing Brief and a Motion to supplement the record in the NETO ROE dockets to respond to the new methodology proposed in the MISO order, as there is uncertainty to whether it may be applied to the NETOs’ cases. On January 21, 2020, the FERC issued an order granting rehearing for further consideration to give the FERC more time to act on the substantive issues of the MISO ROE proceedings. Further changes to the methodology by FERC are possible as a result of the ~~parties’~~ arguments in both the MISO and ~~calculations in~~NETO proceedings.

Given the ~~briefing process. Until~~significant uncertainty relating to the October 2018 FERC ~~issues a final decision~~order, the November 2019 FERC order to MISO, and the FERC's rehearing of the MISO order, the Company is unable to predict the potential effect of the MISO order on ~~each~~the NETO complaints or the outcome of ~~these~~the four complaints and concluded that there is ~~significant uncertainty, and~~no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this ~~time,~~time. Further, the Company cannot reasonably estimate a range of gain or loss for any of the four complaint proceedings. ~~The October 16, 2018 FERC order or the 2019 briefs did not provide a reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods.~~

Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.

~~The average impact~~A change of a 10 basis ~~point change~~points to the base ROE used to establish the reserves would impact Eversource's after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint ~~periods would affect Eversource's after-tax earnings by approximately $3 million.~~periods.

F.E. Eversource and NSTAR Electric Boston Harbor Civil Action

~~On July 15,~~In 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts ~~under provisions of the Rivers and Harbors Act of 1899 and the Clean Water Act~~ against NSTAR Electric, HEEC, and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants"). The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor. The action sought an order to compel HEEC to comply with cable depth requirements in the United States Army Corps of Engineers' permit or alternatively to remove the electric distribution cable and cease unauthorized work in U.S. waterways. The action also sought civil penalties and other costs.

The parties reached a settlement pursuant to which HEEC agreed to install a new 115kV distribution cable across Boston Harbor to Deer Island, utilizing a different route, and remove portions of the existing cable. ~~Upon the installation and completion~~Construction of the new distribution cable was completed in August 2019 and ~~the~~ removal of the portions of the existing cable ~~all~~was completed in January 2020. All issues surrounding the current permit from the United States Army Corps of Engineers are expected to be resolved, and such litigation is expected to be dismissed with prejudice.

NSTAR Electric agreed to provide a rate base credit of $17.5 million to the Massachusetts Water Resources Authority for the new cable. This negotiated credit resulted in the initial $17.5 million of construction costs on the new cable being expensed as incurred, all of which was fully expensed in 2018. Construction of the new cable is underway and is expected to be completed in 2019.

10. ~~LEASES~~

Eversource, including CL&P, NSTAR Electric and PSNH, has entered into lease agreements as a lessee for the use of land, office space, service centers, vehicles, information technology, and equipment. These lease agreements are classified as either finance or operating leases and the liability and right-of-use asset are recognized on the balance sheet at lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term.

Eversource determines whether or not a contract contains a lease based on whether or not it provides Eversource with the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. Eversource has elected the practical expedient to not separate non-lease components from lease components and instead to account for both as a single lease component, with the exception of the information technology asset class where the lease and non-lease components are separated.

The provisions of Eversource, CL&P, NSTAR Electric and PSNH lease agreements contain renewal options. The renewal options range from one year to twenty years. The renewal period is included in the measurement of the lease liability if it is reasonably certain that Eversource will exercise these renewal options.

For leases entered into or modified after the January 1, 2019 implementation date, the discount rate utilized for classification and measurement purposes as of the inception date of the lease is based on each company's collateralized incremental interest rate to borrow over a comparable term for an individual lease, as the rate implicit in the lease is not determinable.

CL&P and PSNH entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease payments and therefore are not recognized as a lease liability on the balance sheet and are not reflected in the future minimum lease payments table below. Expense related to these contracts are included as variable lease cost in the table below. The expense and long-term obligation for these contracts are included in the annually reported contractual obligations table in Note 12B, "Commitments and Contingencies - Long-Term Contractual Arrangements," of the Eversource 2018 Form 10-K.

~~The components of lease cost, prior to amounts capitalized, are as follows:~~

For the Three Months Ended March 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH
Financing Lease Cost: ��
Amortization of Right-of-use-Assets $ 0.4
$ 0.2
$ —
$ —
Interest on Lease Liabilities 0.3
0.1
0.3
—
Total Finance Lease Cost 0.7
0.3
0.3
—
Operating Lease Cost 3.0
0.1
0.5
—
Variable Lease Cost 15.5
3.5
—
12.0
Total Lease Cost $ 19.2
$ 3.9
$ 0.8
$ 12.0

Operating lease cost, less the capitalized portion, is included in Operations and Maintenance (or Purchased Power, Fuel and Transmission expense for transmission segment leases) on the statements of income. Amortization of finance lease assets is included in Depreciation on the statements of income. Interest expense on finance leases is included in Interest Expense, Net on the statements of income.

~~Supplemental balance sheet information related to leases is as follows:~~

As of March 31, 2019
(Millions of Dollars) Balance Sheet Classification Eversource CL&P NSTAR Electric PSNH
Operating Leases:
Operating Lease Right-of-use-Assets, Net Other Long-Term Assets $ 56.7
$ 0.5
$ 25.1
$ 0.5
Operating Lease Liabilities
Operating Lease Liabilities - Current Portion Other Current Liabilities $ 9.2
$ 0.3
$ 0.8
$ 0.1
Operating Lease Liabilities - Long-Term Other Long-Term Liabilities 47.5
0.2
24.3
0.4
Total Operating Lease Liabilities $ 56.7
$ 0.5
$ 25.1
$ 0.5
Finance Leases:
Finance Lease Right-of-use-Assets, Net Property, Plant and Equipment, Net $ 8.8
$ 2.9
$ 3.5
$ 0.9
Finance Lease Liabilities
Finance Lease Liabilities - Current Portion Other Current Liabilities $ 1.9
$ 1.5
$ —
$ 0.1
Finance Lease Liabilities - Long-Term Other Long-Term Liabilities 9.1
2.7
4.5
0.8
Total Finance Lease Liabilities $ 11.0
$ 4.2
$ 4.5
$ 0.9

The finance lease payments that NSTAR Electric will make over the next twelve months are entirely interest-related, due to escalating payments. As such, none of the finance lease payments over the next twelve months will reduce the finance lease liability.

~~Other information related to leases is as follows (in millions of dollars, unless otherwise noted):~~

For the Three Months Ended March 31, 2019
Eversource CL&P NSTAR Electric PSNH
Weighted-Average Remaining Lease Term (Years):
Operating Leases 12
3
21
8
Financing Leases 11
3
23
10
Weighted-Average Discount Rate (Percentage):
Operating Leases 3.8 % 3.2 % 4.1 % 3.6 %
Financing Leases 4.5 % 10.5 % 2.9 % 3.5 %
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases $ 2.9
$ 0.1
$ 0.3
$ —
Operating Cash Flows from Finance Leases 0.3
0.2
0.1
—
Financing Cash Flows from Finance Leases 0.4
0.3
—
—
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities 1.3
—
—
—
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities 1.3
—
—
—

~~Future minimum lease payments, excluding variable costs, under long-term leases, as of March 31, 2019 are as follows:~~

Operating Leases Finance Leases

(Millions of Dollars)
Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
April 1, 2019 through December 31, 2019 $ 8.3
$ 0.2
$ 1.4
$ 0.1
$ 2.5
$ 1.5
$ 0.4
$ 0.1
Year Ending December 31,
2020 9.6
0.2
1.6
0.1
3.4
2.0
0.5
0.1
2021 8.7
—
1.6
0.1
2.9
1.5
0.5
0.1
2022 7.3
—
1.6
0.1
1.5
—
0.6
0.1
2023 4.8
—
1.6
0.1
0.7
—
0.6
0.1
2024 2.8
—
1.7
0.1
0.7
—
0.6
0.1
Thereafter 29.7
0.1
29.4
0.1
13.2
—
12.8
0.4
Future lease payments 71.2
0.5
38.9
0.7
24.9
5.0
16.0
1.0
Less amount representing interest 14.5
—
13.8
0.2
13.9
0.8
11.5
0.1
Present value of future minimum lease payments $ 56.7
$ 0.5
$ 25.1
$ 0.5
$ 11.0
$ 4.2
$ 4.5
$ 0.9

~~At December 31, 2018, future minimum rental payments, excluding executory costs, such as property taxes, state use taxes, insurance, and maintenance were as follows:~~

Operating Leases
(Millions of Dollars)
Eversource CL&P NSTAR Electric PSNH
2019 $ 11.5
$ 1.5
$ 7.2
$ 0.5
2020 9.8
1.4
6.0
0.4
2021 8.7
1.2
5.3
0.4
2022 7.2
1.1
4.4
0.4
2023 4.7
0.5
3.1
0.2
Thereafter 32.7
0.2
29.5
0.3
Future minimum lease payments $ 74.6
$ 5.9
$ 55.5
$ 2.2

Capital Leases
(Millions of Dollars)
Eversource CL&P NSTAR Electric PSNH
2019 $ 3.4
$ 2.0
$ 0.5
$ 0.1
2020 3.4
2.0
0.5
0.1
2021 2.9
1.5
0.5
0.1
2022 1.5
—
0.6
0.1
2023 0.7
—
0.6
0.1
Thereafter 13.9
—
13.4
0.5
Future minimum lease payments 25.8
5.5
16.1
1.0
Less amount representing interest 13.8
1.0
12.4
0.1
Present value of future minimum lease payments $ 12.0
$ 4.5
$ 3.7
$ 0.9

~~11.~~ FAIR VALUE OF FINANCIAL INSTRUMENTS

The following methods and assumptions were used to estimate the fair value of each of the following financial instruments:

Preferred Stock, Long-Term Debt and Rate Reduction Bonds: The fair value of CL&P's and NSTAR Electric's preferred stock is based upon pricing models that incorporate interest rates and other market factors, valuations or trades of similar securities and cash flow projections. The fair value of long-term debt and RRB debt securities is based upon pricing models that incorporate quoted market prices for those issues or similar issues adjusted for market conditions, credit ratings of the respective companies and treasury benchmark yields. The fair values provided in the table below are classified as Level 2 within the fair value hierarchy. Carrying amounts and estimated fair values are as follows:



	Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of March 31, 2020:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	156.0	$	116.2	$	113.8	$	43.0	$	42.2	$	—	$	—
Long-Term Debt	14,431.0		15,177.1		3,518.1		3,949.4		3,642.3		3,901.2		951.7		995.8
Rate Reduction Bonds	561.7		596.0		—		—		—		—		561.7		596.0

As of December 31, 2019:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	162.0	$	116.2	$	117.8	$	43.0	$	44.2	$	—	$	—
Long-Term Debt	14,098.2		15,170.2		3,518.1		4,058.0		3,342.1		3,659.9		951.6		1,005.7
Rate Reduction Bonds	583.3		625.9		—		—		—		—		583.3		625.9

Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars)
Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value
As of March 31, 2019:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6
$ 157.1
$ 116.2
$ 114.2
$ 43.0
$ 42.9
$ —
$ —
Long-Term Debt 13,089.8
13,519.6
3,265.8
3,538.0
2,945.2
3,107.3
805.3
831.1
Rate Reduction Bonds 604.9
623.3
—
—
—
—
604.9
623.3

As of December 31, 2018:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6
$ 156.8
$ 116.2
$ 113.8
$ 43.0
$ 43.0
$ —
$ —
Long-Term Debt 13,086.1
13,154.9
3,254.0
3,429.2
2,944.8
3,024.1
805.2
819.5
Rate Reduction Bonds 635.7
645.8
—
—
—
—
635.7
645.8

Derivative Instruments and Marketable Securities: Derivative instruments and investments in marketable securities are carried at fair value. For further information, see Note 4, "Derivative Instruments," and Note 5, "Marketable Securities," to the financial statements.

See Note ~~1E,~~1D, "Summary of Significant Accounting Policies - Fair Value Measurements," for the fair value measurement policy and the fair value hierarchy.

~~12.~~

11. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, are as follows:



	For the Three Months Ended March 31, 2020											For the Three Months Ended March 31, 2019
Eversource (Millions of Dollars)	Qualified Cash Flow Hedging Instruments			Unrealized Gains on Marketable Securities		Defined Benefit Plans			Total			Qualified Cash Flow Hedging Instruments			Unrealized Gains/(Losses) on Marketable Securities			Defined Benefit Plans			Total
Balance as of January 1st	$	(3.0	)	$	0.7	$	(62.8	)	$	(65.1	)	$	(4.4	)	$	(0.5	)	$	(55.1	)	$	(60.0	)

OCI Before Reclassifications	—			0.2		—			0.2			—			0.7			—			0.7
Amounts Reclassified from AOCI	0.2			—		1.6			1.8			0.3			—			1.2			1.5
Net OCI	0.2			0.2		1.6			2.0			0.3			0.7			1.2			2.2
Balance as of March 31st	$	(2.8	)	$	0.9	$	(61.2	)	$	(63.1	)	$	(4.1	)	$	0.2		$	(53.9	)	$	(57.8	)

For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018
Eversource
(Millions of Dollars)
Qualified
Cash Flow
Hedging
Instruments

Unrealized
Gains/(Losses)
on Marketable
Securities

Defined
Benefit Plans
Total
Qualified
Cash Flow
Hedging
Instruments

Unrealized
Losses on
Marketable
Securities

Defined
Benefit Plans
Total
Balance as of January 1st $ (4.4 ) $ (0.5 ) $ (55.1 ) $ (60.0 ) $ (6.2 ) $ —
$ (60.2 ) $ (66.4 )

OCI Before Reclassifications —
0.7
—
0.7
—
(0.4 ) —
(0.4 )
Amounts Reclassified from AOCI 0.3
—
1.2
1.5
0.7
—
3.0
3.7
Net OCI 0.3
0.7
1.2
2.2
0.7
(0.4 ) 3.0
3.3
Balance as of March 31st $ (4.1 ) $ 0.2
$ (53.9 ) $ (57.8 ) $ (5.5 ) $ (0.4 ) $ (57.2 ) $ (63.1 )

Eversource's qualified cash flow hedging instruments represent interest rate swap agreements on debt issuances that were settled in prior years. The settlement amount was recorded in AOCI and is being amortized into Net Income over the term of the underlying debt instrument. CL&P, NSTAR Electric and PSNH continue to amortize interest rate swaps settled in prior years from AOCI into Interest Expense over the remaining life of the associated long-term debt. Such interest rate swaps are not material to their respective financial statements.

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses that arose during the year and were recognized in AOCI. The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCI into Other Income, Net over the average future employee service period, and are reflected in amounts reclassified from AOCI.

~~13.~~12. COMMON SHARES

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric and PSNH that were authorized and issued, as well as the respective per share par values:



	Shares
			Authorized as of March 31, 2020 and December 31, 2019	Issued as of
	Par Value		Authorized as of March 31, 2020 and December 31, 2019	March 31, 2020	December 31, 2019
Eversource	$	5	380,000,000	351,818,402	345,858,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	200	200
PSNH	$	1	100,000,000	301	301

Shares
Authorized as of March 31, 2019 and December 31, 2018 Issued as of
Par Value March 31, 2019 December 31, 2018
Eversource $ 5
380,000,000
333,878,402
333,878,402
CL&P $ 10
24,500,000
6,035,205
6,035,205
NSTAR Electric $ 1
100,000,000
200
200
PSNH $ 1
100,000,000
301
301

Common Share Issuance and Forward Sale Agreement: In June 2019, Eversource completed an equity offering consisting of 5,980,000 common shares issued directly by the Company and 11,960,000 common shares issuable pursuant to a forward sale agreement with an investment bank. Under the forward sale agreement, 11,960,000 common shares were borrowed from third parties and sold by the underwriters. The forward sale agreement allowed Eversource, at its election and prior to May 29, 2020, to physically settle the forward sale agreement by issuing common shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreement (initially, $71.48 per share) or, alternatively, to settle the forward sale agreement in whole or in part through the delivery or receipt of shares or cash. The forward sale price was subject to adjustment daily based on a floating interest rate factor and would decrease in respect of certain fixed amounts specified in the agreement, such as dividends.

Eversource previously issued 6,000,000 common shares under the forward sale agreement in December 2019. On March 23, 2020, Eversource physically settled a portion of the forward sale agreement by delivering 1,500,000 common shares in exchange for net proceeds of $105.7 million. Subsequently, on March 26, 2020, Eversource physically settled the remaining portion of the forward sale agreement by delivering 4,460,000 common shares in exchange for net proceeds of $314.1 million. The forward sale price used to determine the cash proceeds received by Eversource was calculated based on the initial forward sale price of $71.48 per share, as adjusted in accordance with the forward sale agreement.

The 2020 issuances of 5,960,000 common shares resulted in proceeds of $419.8 million, net of issuance costs, and were reflected in shareholders' equity and as financing activities on the statement of cash flows.

Issuances of shares under the forward sale agreement are classified as equity transactions. Accordingly, no amounts relating to the forward sale agreement were recorded in the financial statements until settlements took place. Prior to any settlements, the only impact to the financial statements was the inclusion of incremental shares within the calculation of diluted EPS using the treasury stock method. See Note 14, "Earnings Per Share," to the financial statements for information on the forward sale agreement’s impact on the calculation of diluted EPS.

Eversource used the net proceeds received upon the direct issuance of common shares and the net proceeds received upon settlement of the forward sale agreement to repay short-term debt under the commercial paper program, to fund capital spending and clean energy initiatives, and for general corporate purposes.

Treasury Shares:As of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, there were ~~16,530,932~~15,407,215 and ~~16,992,594~~15,977,757 Eversource common shares held as treasury shares, respectively. As of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, Eversource common shares outstanding were ~~317,347,470~~336,411,187 and ~~316,885,808,~~329,880,645, respectively.

~~Beginning in 2019,~~

Eversource ~~began issuing~~issues treasury shares to satisfy awards under the Company's incentive ~~plan,~~plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan. The issuance of treasury shares represents a non-cash transaction, as the treasury shares were used to fulfill Eversource's obligations that require the issuance of common shares.

~~14.~~13. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended March 31, ~~2019~~2020 and ~~2018.~~2019. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest – Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of March 31, ~~2019~~2020 and December 31, ~~2018.~~2019. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to Eversource parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

~~15.~~14. EARNINGS PER SHARE

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect of certain share-based compensation awards and the equity forward sale agreement, as if they were converted into outstanding common shares. The dilutive effect of unvested RSU and performance share awards, as well as the equity forward sale agreement, is calculated using the treasury stock method. RSU and performance share awards are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied.

As described in Note 12, "Common Shares," earnings per share dilution, if any, related to the forward sale agreement is determined under the treasury stock method until settlement of the forward sale agreement. Under this method, the number of Eversource common shares used in calculating diluted EPS is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreement less the number of shares that would be purchased by Eversource in the market (based on the average market price during the same reporting period) using the proceeds receivable upon settlement (based on the adjusted forward sale price at the end of that reporting period). Share dilution occurs when the average market price of Eversource's common shares is higher than the adjusted forward sale price.

The following table sets forth the components of basic and diluted EPS:



Eversource (Millions of Dollars, except share information)	For the Three Months Ended
Eversource (Millions of Dollars, except share information)	March 31, 2020		March 31, 2019
Net Income Attributable to Common Shareholders	$	334.8	$	308.7
Weighted Average Common Shares Outstanding:
Basic	331,102,237		317,624,593
Dilutive Effect of:
Share-Based Compensation Awards and Other	747,233		691,489
Equity Forward Sale Agreement	1,087,683		—
Total Dilutive Effect	1,834,916		691,489
Diluted	332,937,153		318,316,082
Basic and Diluted EPS	$	1.01	$	0.97

Eversource
(Millions of Dollars, except share information)
For the Three Months Ended
March 31, 2019 March 31, 2018
Net Income Attributable to Common Shareholders $ 308.7
$ 269.5
Weighted Average Common Shares Outstanding:
Basic 317,624,593
317,397,052
Dilutive Effect 691,489
595,947
Diluted 318,316,082
317,992,999
Basic and Diluted EPS $ 0.97
$ 0.85

~~16.~~15. REVENUES

The following tables present operating revenues disaggregated by revenue source:



	For the Three Months Ended March 31, 2020
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution			Other		Eliminations			Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	963.8	$	238.0	$	—	$	27.8		$	—	$	—		$	1,229.6
Commercial	607.0		134.6		—		14.8			—		(1.0		)	755.4
Industrial	79.8		28.3		—		1.1			—		(3.2		)	106.0
Total Retail Tariff Sales Revenues	1,650.6		400.9		—		43.7			—		(4.2		)	2,091.0
Wholesale Transmission Revenues	—		—		336.3		—			17.3		(283.6		)	70.0
Wholesale Market Sales Revenues	91.0		13.2		—		0.8			—		—			105.0
Other Revenues from Contracts with Customers	19.1		0.9		3.4		1.9			277.3		(276.2		)	26.4
Amortization/(Reserve) for Revenues Subject to Refund	2.3		0.5		—		(0.8		)	—		—			2.0
Total Revenues from Contracts with Customers	1,763.0		415.5		339.7		45.6			294.6		(564.0		)	2,294.4
Alternative Revenue Programs ⁽¹⁾	38.8		32.2		29.8		1.1			—		(27.4		)	74.5
Other Revenues ⁽²⁾	3.5		0.9		0.2		0.2			—		—			4.8
Total Operating Revenues	$	1,805.3	$	448.6	$	369.7	$	46.9		$	294.6	$	(591.4	)	$	2,373.7

For the Three Months Ended March 31, 2019
Eversource
(Millions of Dollars)
Electric
Distribution

Natural Gas
Distribution

Electric
Transmission
Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,033.3
$ 258.9
$ —
$ 27.0
$ —
$ —
$ 1,319.2
Commercial 652.6
143.8
—
14.3
—
(1.1 ) 809.6
Industrial 82.1
30.9
—
1.1
—
(2.7 ) 111.4
Total Retail Tariff Sales Revenues 1,768.0

433.6
—
42.4

—
(3.8 ) 2,240.2
Wholesale Transmission Revenues —
—
324.9
—
13.5
(270.8 ) 67.6
Wholesale Market Sales Revenues 51.5
21.7
—
1.0
—
—
74.2
Other Revenues from Contracts with Customers 12.6
0.9
3.2
1.7
244.6
(245.4 ) 17.6
Reserve for Revenues Subject to Refund (3.1 ) 1.6
—
(0.8 ) —
—
(2.3 )
Total Revenues from Contracts with Customers 1,829.0

457.8
328.1
44.3

258.1
(520.0 ) 2,397.3
Alternative Revenue Programs 2.1
10.4
12.4
0.9
—
(11.1 ) 14.7
Other Revenues ⁽¹⁾
2.8
0.7
—
0.3
—
—
3.8
Total Operating Revenues $ 1,833.9

$ 468.9
$ 340.5
$ 45.5

$ 258.1
$ (531.1 ) $ 2,415.8


	For the Three Months Ended March 31, 2018																				For the Three Months Ended March 31, 2019
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other		Eliminations			Total			Electric Distribution			Natural Gas Distribution		Electric Transmission		Water Distribution			Other		Eliminations			Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	994.4		$	248.9		$	—		$	26.4		$	—	$	—		$	1,269.7		$	1,033.3		$	258.9	$	—	$	27.0		$	—	$	—		$	1,319.2
Commercial	611.4			134.7			—			13.8			—		—			759.9			652.6			143.8		—		14.3			—		(1.1		)	809.6
Industrial	81.5			29.5			—			1.0			—		(2.5		)	109.5			82.1			30.9		—		1.1			—		(2.7		)	111.4
Total Retail Tariff Sales Revenues	1,687.3			413.1			—			41.2			—		(2.5		)	2,139.1			1,768.0			433.6		—		42.4			—		(3.8		)	2,240.2
Wholesale Transmission Revenues	—			—			313.6			—			10.1		(258.7		)	65.0			—			—		324.9		—			13.5		(270.8		)	67.6
Wholesale Market Sales Revenues	58.5			17.8			—			0.8			—		—			77.1			51.5			21.7		—		1.0			—		—			74.2
Other Revenues from Contracts with Customers	16.0			(0.6		)	3.1			4.0			220.8		(221.4		)	21.9			12.6			0.9		3.2		1.7			244.6		(245.4		)	17.6
Reserve for Revenues Subject to Refund	(19.3		)	(4.5		)	—			(2.2		)	—		—			(26.0		)
Amortization/(Reserve) for Revenues Subject to Refund																					(3.1		)	1.6		—		(0.8		)	—		—			(2.3		)
Total Revenues from Contracts with Customers	1,742.5			425.8			316.7			43.8			230.9		(482.6		)	2,277.1			1,829.0			457.8		328.1		44.3			258.1		(520.0		)	2,397.3
Alternative Revenue Programs(1)	8.7			(1.7		)	(11.7		)	0.7			—		10.6			6.6			2.1			10.4		12.4		0.9			—		(11.1		)	14.7
Other Revenues(2)	3.4			0.8			—			0.1			—		—			4.3			2.8			0.7		—		0.3			—		—			3.8
Total Operating Revenues	$	1,754.6		$	424.9		$	305.0		$	44.6		$	230.9	$	(472.0	)	$	2,288.0		$	1,833.9		$	468.9	$	340.5	$	45.5		$	258.1	$	(531.1	)	$	2,415.8


	For the Three Months Ended March 31, 2019									For the Three Months Ended March 31, 2018									For the Three Months Ended March 31, 2020									For the Three Months Ended March 31, 2019
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	510.5		$	371.0		$	151.8		$	483.4		$	364.2		$	146.8		$	489.9		$	331.0		$	142.9		$	510.5		$	371.0		$	151.8
Commercial	236.7			336.5			79.8			222.5			314.4			74.9			226.4			301.9			79.1			236.7			336.5			79.8
Industrial	34.6			28.8			18.7			35.8			28.1			17.6			34.0			26.8			19.0			34.6			28.8			18.7
Total Retail Tariff Sales Revenues	781.8			736.3			250.3			741.7			706.7			239.3			750.3			659.7			241.0			781.8			736.3			250.3
Wholesale Transmission Revenues	154.8			122.6			47.5			150.8			118.6			44.2			151.8			134.8			49.7			154.8			122.6			47.5
Wholesale Market Sales Revenues	13.7			24.4			13.4			10.3			24.9			24.1			64.7			14.4			11.9			13.7			24.4			13.4
Other Revenues from Contracts with Customers	8.9			4.0			3.6			7.5			8.3			3.5			8.8			10.7			3.7			8.9			4.0			3.6
Reserve for Revenues Subject to Refund	—			—			(3.1		)	(12.5		)	(3.7		)	(3.1		)
Amortization/(Reserve) for Revenues Subject to Refund																			—			—			2.3			—			—			(3.1		)
Total Revenues from Contracts with Customers	959.2			887.3			311.7			897.8			854.8			308.0			975.6			819.6			308.6			959.2			887.3			311.7
Alternative Revenue Programs(1)	5.7			7.3			1.5			(5.1		)	6.7			(4.6		)	44.6			19.3			4.7			5.7			7.3			1.5
Other Revenues ⁽¹⁾⁽²⁾	1.0			1.5			0.3			1.3			1.7			0.4			1.7			1.4			0.6			1.0			1.5			0.3
Eliminations	(116.7		)	(98.5		)	(37.1		)	(109.0		)	(93.1		)	(36.4		)	(122.2		)	(106.5		)	(37.5		)	(116.7		)	(98.5		)	(37.1		)
Total Operating Revenues	$	849.2		$	797.6		$	276.4		$	785.0		$	770.1		$	267.4		$	899.7		$	733.8		$	276.4		$	849.2		$	797.6		$	276.4

⁽¹⁾Other Revenues include certain fees charged to customers, which are not considered revenue from contracts with customers. Other revenues also includes lease revenues under lessor accounting guidance of $1.0 million at Eversource, $0.2 million at CL&P, and $0.6 million at NSTAR Electric for the three months ended March 31, 2019.

⁽¹⁾

CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and the Connecticut water distribution business each have a revenue decoupling mechanism approved by a regulatory commission. The revenue decoupling mechanisms mitigate the impact of lower demand and resulting lost sales revenues by allowing for a true-up to occur as part of each company’s annual decoupling filing. These revenue decoupling mechanisms qualify as alternative revenue programs in accordance with accounting guidance for rate-regulated operations. The increase in revenues from Alternative Revenue Programs for the three months ended March 31, 2020, as compared to the three months ended March 31, 2019, was primarily the result of a higher decoupling deferral adjustment driven by lower distribution sales volumes in the first quarter of 2020. The decoupling deferral adjustment to revenues is recorded as a regulatory tracker mechanism within Regulatory Assets on the balance sheets.

⁽²⁾

Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. Other revenues also includes lease revenues under lessor accounting guidance of $1.1 million (including $0.2 million at CL&P, and $0.7 million at NSTAR Electric) and $1.0 million (including $0.2 million at CL&P, and $0.6 million at NSTAR Electric) for the three months ended March 31, 2020 and March 31, 2019, respectively.

~~17.~~16. SEGMENT INFORMATION

Eversource is organized into the Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution reportable segments and Other based on a combination of factors, including the characteristics of each segments' services, the sources of operating revenues and expenses and the regulatory environment in which each segment operates. These reportable segments represent substantially all of Eversource's total consolidated revenues. Revenues from the sale of electricity, natural gas and water primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer. The Electric Distribution reportable segment includes the results of ~~PSNH's generation facilities prior to sales in January and August 2018, and~~ NSTAR Electric's solar power facilities. Eversource's reportable segments are determined based upon the level at which Eversource's chief operating decision maker assesses performance and makes decisions about the allocation of company resources.

The remainder of Eversource's operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of CYAPC and YAEC, 4) Eversource Water Ventures, Inc., parent company of Aquarion, ~~and~~ 5) the results of other unregulated subsidiaries, which are not part of its core ~~business. In addition, Other in the tables below includes~~business, and 6) Eversource parent's equity ownership interests that are not consolidated, which primarily include the offshore wind business, anatural gas pipeline ~~project~~ owned by Enbridge, Inc., ~~the offshore wind business,~~and a renewable energy investment ~~fund, and two companies that transmit hydroelectricity imported from the Hydro-Quebec system in Canada.~~ fund.

In the ordinary course of business, Yankee Gas and NSTAR Gas purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total ~~approximately~~ $62.5 million annually and are classified as Purchased Power, Fuel and Transmission on the Eversource statements of income.

Each of Eversource's subsidiaries, including CL&P, NSTAR Electric and PSNH, has ~~one~~1 reportable segment.

Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred but not paid, cost of removal, AFUDC related to equity funds, and the capitalized portions of pension and PBOP expense.

Eversource's segment information is as follows:


	For the Three Months Ended March 31, 2019																					For the Three Months Ended March 31, 2020
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total			Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total
Operating Revenues	$	1,833.9		$	468.9		$	340.5		$	45.5		$	258.1		$	(531.1	)	$	2,415.8		$	1,805.3		$	448.6		$	369.7		$	46.9		$	294.6		$	(591.4	)	$	2,373.7
Depreciation and Amortization	(179.2		)	(20.4		)	(61.5		)	(11.8		)	(13.6		)	0.6			(285.9		)	(167.3		)	(19.1		)	(67.5		)	(11.4		)	(21.3		)	0.6			(286.0		)
Other Operating Expenses	(1,475.6		)	(341.3		)	(98.8		)	(25.0		)	(225.5		)	531.0			(1,635.2		)	(1,439.6		)	(311.6		)	(106.8		)	(25.0		)	(257.0		)	591.4			(1,548.6		)
Operating Income	$	179.1		$	107.2		$	180.2		$	8.7		$	19.0		$	0.5		$	494.7		$	198.4		$	117.9		$	195.4		$	10.5		$	16.3		$	0.6		$	539.1
Interest Expense	$	(49.2	)	$	(11.7	)	$	(30.6	)	$	(8.6	)	$	(44.2	)	$	12.6		$	(131.7	)	$	(53.1	)	$	(11.4	)	$	(30.6	)	$	(8.7	)	$	(42.7	)	$	11.8		$	(134.7	)
Other Income, Net	18.2			0.2			8.1			0.4			431.7			(427.6		)	31.0			12.5			1.4			5.2			0.1			468.1			(463.2		)	24.1
Net Income Attributable to Common Shareholders	120.1			76.5			118.2			0.9			407.5			(414.5		)	308.7			130.1			84.4			126.8			2.1			442.2			(450.8		)	334.8
Cash Flows Used for Investments in Plant	279.3			87.4			231.4			20.7			55.9			—			674.7			315.8			99.1			232.8			18.5			59.3			—			725.5


	For the Three Months Ended March 31, 2018																					For the Three Months Ended March 31, 2019
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total			Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total
Operating Revenues	$	1,754.6		$	424.9		$	305.0		$	44.6		$	230.9		$	(472.0	)	$	2,288.0		$	1,833.9		$	468.9		$	340.5		$	45.5		$	258.1		$	(531.1	)	$	2,415.8
Depreciation and Amortization	(144.4		)	(26.4		)	(56.6		)	(10.7		)	(12.0		)	0.6			(249.5		)	(179.2		)	(20.4		)	(61.5		)	(11.8		)	(13.6		)	0.6			(285.9		)
Other Operating Expenses	(1,443.5		)	(312.6		)	(83.2		)	(23.9		)	(204.7		)	471.9			(1,596.0		)	(1,475.6		)	(341.3		)	(98.8		)	(25.0		)	(225.5		)	531.0			(1,635.2		)
Operating Income	$	166.7		$	85.9		$	165.2		$	10.0		$	14.2		$	0.5		$	442.5		$	179.1		$	107.2		$	180.2		$	8.7		$	19.0		$	0.5		$	494.7
Interest Expense	$	(47.4	)	$	(11.1	)	$	(29.7	)	$	(8.4	)	$	(31.9	)	$	7.4		$	(121.1	)	$	(49.2	)	$	(11.7	)	$	(30.6	)	$	(8.6	)	$	(44.2	)	$	12.6		$	(131.7	)
Other Income/(Loss), Net	19.6			2.0			8.0			(0.6		)	360.1			(355.3		)	33.8
Other Income, Net																						18.2			0.2			8.1			0.4			431.7			(427.6		)	31.0
Net Income Attributable to Common Shareholders	104.2			57.8			107.4			1.5			346.0			(347.4		)	269.5			120.1			76.5			118.2			0.9			407.5			(414.5		)	308.7
Cash Flows Used for Investments in Plant(1)	236.0			70.4			239.2			19.0			42.7			—			607.3			279.3			87.4			184.8			20.7			55.9			—			628.1

The following table summarizes Eversource's segmented total assets:

Eversource
(Millions of Dollars)
Electric
Distribution

Natural Gas
Distribution
Electric
Transmission Water Distribution Other Eliminations Total
As of March 31, 2019 $ 21,507.0
$ 4,019.1
$ 10,533.4
$ 2,268.3
$ 18,939.8
$ (18,326.6 ) $ 38,941.0
As of December 31, 2018 21,389.1
3,904.9
10,285.0
2,253.0
17,874.2
(17,464.9 ) 38,241.3



Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations			Total
As of March 31, 2020	$	23,135.9	$	4,430.4	$	11,137.5	$	2,368.7	$	20,860.8	$	(20,284.3	)	$	41,649.0
As of December 31, 2019	22,541.9		4,345.5		10,904.0		2,351.7		20,469.6		(19,488.8		)	41,123.9


⁽¹⁾	See Note 1A, "Summary of Significant Accounting Policies - Basis of Presentation," for information regarding the correction of cash investments in plant reported in 2019.

EVERSOURCE ENERGY AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, as well as the Eversource ~~2018~~2019 combined Annual Report on Form 10-K. References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."

Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations.

The only common equity securities that are publicly traded are common shares of Eversource. The earnings and EPS of each business discussed below do not represent a direct legal interest in the assets and liabilities of such business but rather represent a direct interest in our assets and liabilities as a whole. EPS by business is a financial measure not recognized under GAAP, calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. Our earnings discussion also includes non-GAAP financial measures referencing our 2020 earnings and EPS excluding certain acquisition costs and our Q2 2019 earnings and EPS excluding the impairment charge for the NPT project.

We use ~~this~~these non-GAAP financial ~~measure~~measures to evaluate and provide details of earnings results by ~~business.~~business and to more fully compare and explain our 2020 and 2019 results without including these items. We believe the acquisition costs and the NPT impairment charge are not indicative of our ongoing costs and performance. Due to the nature and significance of these items on Net Income Attributable to Common Shareholders, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance byof our business. ~~This~~These non-GAAP financial ~~measure~~measures should not be considered as an alternative to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as an indicator of operating performance.

From time to time, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify our forward-looking statements through the use of words or phrases such as "estimate," "expect," "anticipate," "intend," "plan," "project," "believe," "forecast," "should," "could," and other similar expressions. Forward-looking statements are based on the current expectations, estimates, assumptions or projections of management and are not guarantees of future performance. These expectations, estimates, assumptions or projections may vary materially from actual results. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that could cause our actual results to differ materially from those contained in our forward-looking statements, including, but not limited to:

cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers,

disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly,

the negative impacts of the novel coronavirus (COVID-19) pandemic on our customers, vendors, employees, regulators, and operations,

changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability,

ability or inability to commence and complete our major strategic development projects and opportunities,

acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems,

~~ability or inability to commence and complete our major strategic development projects and opportunities,~~

actions or inaction of local, state and federal regulatory, public policy and taxing bodies,

substandard performance of third-party suppliers and service providers,

fluctuations in weather patterns, including extreme weather due to climate change,

changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model,

~~increased conservation measures of customers and development of alternative energy sources,~~

contamination of, or disruption in, our water supplies,

changes in ~~economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability,~~

~~changes in~~ levels or timing of capital expenditures,

~~disruptions in~~ including the ~~capital markets or other events that make our access to necessary capital more difficult or costly,~~Columbia Gas of Massachusetts asset acquisition;

changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations,

changes in accounting standards and financial reporting regulations,

actions of rating agencies, and

other presently unknown or unforeseen factors.

Other risk factors are detailed in our reports filed with the SEC and updated as necessary, and we encourage you to consult such disclosures.

All such factors are difficult to predict and contain uncertainties that may materially affect our actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business

or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's ~~2018~~2019 combined Annual Report on Form 10-K. This combined Quarterly Report on Form 10-Q and Eversource's ~~2018~~2019 combined Annual Report on Form 10-K also describe material contingencies and critical accounting policies in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Combined Notes to Financial Statements. We encourage you to review these items.

Financial Condition and Business Analysis

Executive Summary

The following items in this executive summary are explained in more detail in this combined Quarterly Report on Form 10-Q:

Earnings ~~Overview:~~Overview and Future Outlook:

We earned $334.8 million, or $1.01 per share, in the first quarter of 2020, compared with $308.7 million, or $0.97 per share, in the first quarter of ~~2019, compared with $269.5~~2019. Results for the first quarter of 2020 include after-tax acquisition costs related to our planned purchase of the assets of Columbia Gas of Massachusetts (CMA) of $3.5 million, or ~~$0.85~~$0.01 per share. Excluding those acquisition costs, we earned $338.3 million, or $1.02 per share, in the first quarter of ~~2018.~~ 2020.

Our electric distribution segment earned $130.1 million, or $0.39 per share, in the first quarter of 2020, compared with $120.1 million, or $0.38 per share, in the first quarter of ~~2019, compared with $104.2~~2019. Our electric transmission segment earned $126.8 million, or ~~$0.33~~$0.38 per share, in the first quarter of ~~2018. Our electric transmission segment earned~~2020, compared with $118.2 million, or $0.37 per share, in the first quarter of ~~2019, compared with $107.4~~2019. Our natural gas distribution segment earned $84.4 million, or ~~$0.34~~$0.25 per share, in the first quarter of ~~2018. Our natural gas distribution segment earned~~2020, compared with $76.5 million, or $0.24 per share, in the first quarter of ~~2019, compared with $57.8~~2019. Our water distribution segment earned $2.1 million ~~or $0.18 per share,~~ in the first quarter of ~~2018. Our water distribution segment earned~~2020, compared with $0.9 million in the first quarter of ~~2019, compared with $1.5 million in the first quarter of 2018.~~2019.

Eversource parent and other companies had a net loss of ~~$7.0~~$8.6 million, or $0.02 per share, in the first quarter of ~~2019,~~2020, compared with a net loss of ~~$1.4~~$7.0 million, or $0.02 per share, in the first quarter of ~~2018.~~ 2019. Excluding acquisition costs, Eversource parent and other companies had a net loss of $5.1 million, or $0.01 per share, in the first quarter of 2020.

We reaffirmed 2020 earnings of between $3.60 per share and $3.70 per share.

In March 2020, the World Health Organization declared the outbreak of the 2019 novel coronavirus (COVID-19) a pandemic. As of the date of our filing, the outbreak of COVID-19 has not resulted in a significant financial or operational impact. We are continuing to closely monitor for COVID-19 pandemic related changes, as well as operate under our pandemic response plan; however, we cannot at this time predict the impact that the COVID-19 pandemic will have on our future financial condition and operations.

Liquidity:

Cash flows provided by operating activities totaled ~~$428.0~~$420.3 million in the first quarter of ~~2019,~~2020, compared with ~~$177.7~~$381.4 million in the first quarter of ~~2018, due primarily to the $166.5 million decrease in pension and PBOP cash contributions in the first quarter of 2019, compared to the first quarter of 2018.~~2019. Investments in property, plant and equipment totaled ~~$674.7~~$725.5 million in the first quarter of ~~2019,~~2020, compared with ~~$607.3~~$628.1 million in the first quarter of ~~2018.~~2019. Cash totaled ~~$35.1~~$47.4 million as of March 31, ~~2019,~~2020, compared with ~~$108.1~~$15.4 million as of December 31, ~~2018.~~2019. Our available borrowing capacity under our commercial paper programs totaled $1.27 billion as of March 31, 2020.

~~On April 1, 2019, CL&P~~In the first quarter of 2020, we issued ~~$300~~5,960,000 common shares, which resulted in proceeds of $419.8 million, net of issuance costs.

In the first quarter of 2020, we issued $750 million of new long-term ~~debt.~~debt, consisting of $400 million by NSTAR Electric and $350 million by Eversource parent. Proceeds from ~~this~~these new ~~issuance~~issuances were used primarily to ~~repay~~refinance investments in eligible green expenditures at NSTAR Electric and to pay short-term borrowings ~~which were previously used to repay,~~ at ~~maturity, $250 million of long-term debt previously issued by CL&P that matured in the first quarter of 2019, and to fund capital expenditures and working capital.~~Eversource parent.

Strategic:

On February 26, 2020, Eversource and NiSource Inc. entered into an asset purchase agreement where Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in Massachusetts for a purchase price of $1.1 billion. The liabilities to be assumed by Eversource specifically exclude any liabilities (past or future) arising out of, or related to, the fires and explosions that occurred on September 13, 2018 in Lawrence, Andover and North Andover, Massachusetts. The acquisition and resulting rate plan both require DPU and other approvals. The transaction is expected to close by the end of the third quarter of 2020.

Impact of COVID-19

In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic and President Trump declared a national emergency affecting the entire United States where each state qualifies as being part of a national disaster. The spread of COVID-19 has adversely affected workforces, the overall economy and caused significant volatility in the financial markets. To date, we have not experienced significant operational or financial impacts directly related to the pandemic. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we will continue to closely monitor how COVID-19 related developments affect Eversource. As of the date of our filing and based on information we have available, we are unable to predict the impacts that the COVID-19 pandemic will have on our future operations, financial position, results of operations, and cash flows. The extent of the impact to us in the future will vary and depend in large part on the duration, scope and severity of a national and global economic slowdown, risk of inflation, governmental and regulatory actions, the maintenance of a strong regional and national healthcare system, and the continued spread of the virus, which is mitigated through social distancing measures.

Operational: We provide a critical service to our customers and have taken extensive measures to maintain its reliability. We have implemented our company-wide pandemic plan, which guides our emergency response, business continuity, and the precautionary measures we are taking to ensure the safety, health, and well-being of our employees, our customers, and our communities. We continue to adjust our company-wide pandemic plan to assume various scenarios, including reduced workforce levels and limited mutual aid in the event of a significant storm event, and have implemented protective measures to mitigate the impact of COVID-19 on our workforce. We have implemented work from home policies where appropriate, resulting in nearly half of our employees working remotely. For our employees performing essential functions that are required onsite, such as field crews and system operations, we have taken significant safety measures, including establishing social distancing measures, enabling critical operations to be shifted to different control center locations if necessary, and increasing facility sanitization efforts and promoting both the availability and use of personal protective equipment. We have suspended non-critical work inside customer premises, which includes energy audits inside our customers’ homes and businesses; however, as of the date of our filing, we do not expect a significant impact on our 2020 energy efficiency program spending and efforts. At this time, our workforce staffing levels continue to enable us to safely and reliably deliver our critical services to customers. As of May ~~23, 2019.~~7, 2020, we had 31 confirmed employee cases of COVID-19. We had a total of 547 quarantined employees, of which 442 employees have returned to the workforce.

Financial: Overall, our future financial position, results of operations, and cash flows could be negatively impacted by COVID-19 as it relates to the valuation of customer receivables, collectibility estimates and customer payment plans, elimination of late payment revenues, lower sales volumes primarily from PSNH's commercial and industrial customers, market volatility on our equity and debt securities, access to, as well as cost of, capital resources, and the ability of various third-party vendors and suppliers to fulfill their obligations.

As of March 31, 2020, our allowance for uncollectible customer receivable balance of $262.1 million, of which $172.2 million relates to hardship accounts that are specifically recovered in rates charged to customers, adequately reflected the collection risk and net realizable value for our receivables and has not been materially impacted by COVID-19. We will continue to evaluate the adequacy of the uncollectible allowance in future reporting periods based on an ongoing assessment of accounts receivable collections, delinquency statistics, COVID-19 developments, and analysis of aging-based quantitative assessments. We are working closely with our state regulatory commissions and consumer advocates to develop several customer assistance measures, including more flexible and new payment plan options in order to mitigate the impact on customer rates in the future, as well as financial hardship and arrearage management programs for those customers who are unable to pay their utility bills. We are developing these long-term solutions for customers in order to help minimize the extent of the impact of COVID-19 on customer receivable balances and customers’ affordability in light of the current financial impact they may experience. In Connecticut, Massachusetts and New Hampshire, beginning in March, there is presently a moratorium on disconnections of residential and commercial customers for non-payment. As of the date of our filing, although our operating companies are beginning to experience some lower cash collections from customers because of the moratorium on disconnections and the economic slowdown, it is not a significant reduction in customer payments. The ultimate amount and duration cannot be estimated at this time; however we anticipate that any potential reduction in operating cash flows will be mitigated by the use of our short-term borrowing facilities. We believe that we will be able to develop a successful structure with our state regulatory commissions to recover our costs associated with COVID-19, while balancing the impact on our customers’ bills and our operating cash flows. As such, as of the date of our filing, our uncollectible accounts have not been materially impacted.

An extended economic slowdown could result in lower demand for electricity, natural gas and/or water by our commercial and industrial customers. However, fluctuations in retail sales volumes for CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and our Connecticut water distribution business are not expected to materially impact earnings due to their respective state regulatory commission-approved distribution revenue decoupling mechanisms. Overall, we believe our risk of exposure to lower demand and resulting lost sales revenues is limited as our regulated utilities, with the exception of PSNH, are under cost-of-service rates with revenue decoupling mechanisms, allowing for a true-up to occur as part of each company’s annual decoupling filing, and a significant portion of uncollectible expenses are tracked for ultimate recovery.

As of March 31, 2020, we did not have indicators of triggering events for impairments to our goodwill, long-lived assets, available-for-sale debt securities, or equity method investment carrying values. As of the date of our filing, based on information we have available and the current market trends, we do not expect an impairment to these assets for the remainder of 2020.

We continue to monitor Eversource’s and our operating companies’ ability to access the global capital and credit markets. At the onset of the pandemic in the United States, liquidity in the commercial paper credit market began to deteriorate rapidly. However, federal legislative actions, including actions taken by the Federal Reserve, have provided sufficient liquidity and stabilization of the credit markets. An extended economic slowdown could result in Eversource and our operating companies finding difficulty in accessing necessary capital resources and incurring higher costs for those capital resources. As of the date of our filing, based on information we have available and the current market trends, we believe we will continue to have access to liquidity and capital resources to successfully execute our projected 2020 capital expenditures and strategies. In addition, the successful execution of our timeline for developing our offshore wind projects is based on several factors, including state and federal

siting and permitting approvals. Currently, we are developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects. For further information, see "Business Development and Capital Expenditures - Offshore Wind Business" included in this Management’s Discussion and Analysis.

Pension and PBOP plan assets and obligations are remeasured annually using a December 31^st measurement date. Our future pension and PBOP obligations are highly dependent on benefit plan asset returns, interest rates, and discount rates, all of which could be materially impacted by the extended economic slowdown. Should these financial metrics be negatively impacted by COVID-19 as of December 31, 2020, it could result in the underperformance of our pension and PBOP plan investments, an increase in pension and PBOP obligations and employee benefit plan costs, and in a minimum pension funding requirement due by March 31, 2022 for the 2021 Plan year. We continue to monitor federal legislative pension developments that could provide additional pension funding relief. As of the date of our filing, it is difficult to determine whether the pandemic will have a material impact to our future pension and PBOP obligations and plan costs and minimum funding requirements. NSTAR Electric and NSTAR Gas recover qualified pension and PBOP expenses through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year. Our electric transmission companies' rates provide for an annual true-up of estimated to actual costs, which include pension and PBOP expenses.

Earnings Overview

Consolidated: Below is a summary of our earnings by business, which also reconciles the non-GAAP financial ~~measure~~measures of consolidated non-GAAP earnings and EPS, as well as EPS by business, to the most directly comparable GAAP ~~measure~~measures of consolidated Net Income Attributable to Common Shareholders and diluted EPS.


	For the Three Months Ended March 31,											For the Three Months Ended March 31,
	2019						2018					2020						2019
(Millions of Dollars, Except Per Share Amounts)	Amount			Per Share			Amount			Per Share		Amount			Per Share			Amount			Per Share
Net Income Attributable to Common Shareholders (GAAP)	$	308.7		$	0.97		$	269.5		$	0.85	$	334.8		$	1.01		$	308.7		$	0.97

Regulated Companies	$	315.7		$	0.99		$	270.9		$	0.85	$	343.4		$	1.03		$	315.7		$	0.99
Eversource Parent and Other Companies	(7.0		)	(0.02		)	(1.4		)	—		(5.1		)	(0.01		)	(7.0		)	(0.02		)
Non-GAAP Earnings												$	338.3		$	1.02		$	308.7		$	0.97
Acquisition-Related Costs (after-tax) ⁽¹⁾												(3.5		)	(0.01		)	—			—
Net Income Attributable to Common Shareholders (GAAP)	$	308.7		$	0.97		$	269.5		$	0.85	$	334.8		$	1.01		$	308.7		$	0.97

⁽¹⁾ These costs are associated with our pending acquisition of the assets of Columbia Gas of Massachusetts.

Our consolidated earnings also include pre-tax COVID-19 related-charges of $2.1 million incurred in the first quarter of 2020.

Regulated Companies: Our regulated companies comprise the electric distribution, electric transmission, natural gas distribution and water distribution segments. A summary of our segment earnings and EPS is as follows:


	For the Three Months Ended March 31,								For the Three Months Ended March 31,
	2019				2018				2020				2019
(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share
Net Income - Regulated Companies									$	343.4	$	1.03	$	315.7	$	0.99

Electric Distribution	$	120.1	$	0.38	$	104.2	$	0.33	$	130.1	$	0.39	$	120.1	$	0.38
Electric Transmission	118.2		0.37		107.4		0.34		126.8		0.38		118.2		0.37
Natural Gas Distribution	76.5		0.24		57.8		0.18		84.4		0.25		76.5		0.24
Water Distribution	0.9		—		1.5		—		2.1		0.01		0.9		—
Net Income - Regulated Companies	$	315.7	$	0.99	$	270.9	$	0.85	$	343.4	$	1.03	$	315.7	$	0.99

Our electric distribution segment earnings increased ~~$15.9~~$10.0 million in the first quarter of ~~2019,~~2020, as compared to the first quarter of ~~2018,~~2019, due primarily to ~~the impact of the CL&P~~ base distribution rate ~~increase~~increases at CL&P effective May 1, ~~2018~~2019, at NSTAR Electric effective January 1, 2020, and ~~the recognition in~~at PSNH effective July 1, 2019, ~~of carrying charges on PSNH storm costs approved for recovery.~~higher earnings from CL&P's capital tracker mechanism due to increased electric system improvements, and lower operations and maintenance expense. The earnings increase was partially offset by ~~the absence in 2019 of generation earnings at PSNH due to the sale of its thermal and hydroelectric generation assets in 2018,~~ higher depreciation expense, higher interest expense, the absence of the first quarter 2019 recognition of carrying charges on PSNH's 2013 through 2016 storm costs approved for recovery, investment loss in 2020, as compared to investment income in 2019 driven by market volatility, and ~~lower non-service income from our benefit plans.~~higher property tax expense.

Our electric transmission segment earnings increased ~~$10.8~~$8.6 million in the first quarter ~~2019,~~of 2020, as compared to the first quarter of ~~2018,~~2019, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Our natural gas distribution segment earnings increased ~~$18.7~~$7.9 million in the first quarter of ~~2019,~~2020, as compared to the first quarter of ~~2018,~~2019, due primarily to ~~the impact of the Yankee Gas~~a base distribution rate increase at Yankee Gas effective ~~November 15, 2018~~January 1, 2020 and higher earnings from capital tracker mechanisms due to continued ~~investment~~investments in natural gas infrastructure. ~~Yankee Gas' decoupled rate structure is seasonally structured and provides greater earnings in the winter heating months.~~ The earnings increase was partially offset by higher operations and maintenance expense ~~higher property and other taxes expense,~~ and higher depreciation expense.

Our water distribution segment earnings ~~decreased $0.6~~increased $1.2 million in the first quarter of ~~2019, as~~2020, compared to the first quarter of ~~2018. Our water distribution business is seasonal in nature, with~~2019 due primarily to higher revenues from Connecticut's capital tracker mechanism due to increased infrastructure improvements and lower ~~earnings occurring during the winter months and higher earnings occurring during the summer months.~~depreciation expense.

Eversource Parent and Other Companies: Eversource parent and other companies had a net loss of ~~$7.0~~$8.6 million, or $0.02 per share, in the first quarter of ~~2019,~~2020, compared with a net loss of ~~$1.4~~$7.0 million, or $0.02 per share, in the first quarter of ~~2018.~~2019. The increased loss was due primarily to ~~higher interest expense and a higher effective tax rate,~~acquisition costs related to the pending acquisition of the assets of Columbia Gas of Massachusetts of $3.5 million, or $0.01 per share, partially offset by a higher return at Eversource Service as a result of increased investments in property, plant and ~~equipment.~~equipment and lower interest expense.

~~Electric, Natural Gas and Water Sales Volumes:~~ Weather, fluctuations in energy supply costs, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage and water consumption. Industrial sales volumes are less sensitive to temperature variations than residential and commercial sales volumes. In our service territories, weather impacts both electric and water sales volumes during the summer and both electric and natural gas sales volumes during the winter; however, natural gas sales volumes are more sensitive to temperature variations than electric sales volumes. Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur.

Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table below). For CL&P, NSTAR Electric, Yankee Gas, and NSTAR Gas, fluctuations in retail sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms ("Decoupled" in the table below). These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized. Fluctuations in water sales volumes largely do not impact earnings as our Connecticut water distribution business is also decoupled.

~~A summary of our retail electric GWh sales volumes, our firm natural gas MMcf sales volumes, and our water MG sales volumes, and percentage changes, is as follows:~~

For the Three Months Ended March 31, 2019 Compared to 2018
Electric Firm Natural Gas Water
Sales Volumes (GWh) Percentage
Decrease Sales Volumes (MMcf) Percentage
Increase Sales Volumes (MG) Percentage
Increase/
(Decrease)
2019
2018 ⁽¹⁾
2019
2018 ⁽²⁾
2019 2018
Traditional 1,968
1,972
(0.2 )% —
—
— % 451
467
(3.4 )%
Decoupled and Special Contracts ⁽³⁾
11,183
11,249
(0.6 )% 45,376
43,179
5.1 % 4,378
4,357
0.5 %
Total Sales Volumes 13,151
13,221
(0.5 )% 45,376
43,179
5.1 % 4,829
4,824
0.1 %


⁽¹⁾	Effective February 1, 2018, NSTAR Electric operated entirely under a decoupled rate structure. The 2018 sales volumes for NSTAR Electric have been recast to present January 2018 as decoupled to conform to the current year presentation.


⁽²⁾	Effective November 15, 2018, Yankee Gas operated under a decoupled rate structure. The 2018 sales volumes for Yankee Gas have been recast to present 2018 as decoupled to conform to the current year presentation.


⁽³⁾	Special contracts are unique to Yankee Gas natural gas distribution customers who take service under such an arrangement and generally specify the amount of distribution revenue to be paid to Yankee Gas regardless of the customers' usage.

Liquidity

Cash totaled ~~$35.1~~$47.4 million as of March 31, ~~2019,~~2020, compared with ~~$108.1~~$15.4 million as of December 31, ~~2018.~~2019.

The amount of borrowings outstanding and available under the commercial paper programs were as follows:


	Borrowings Outstanding as of				Available Borrowing Capacity as of				Weighted-Average Interest Rate as of					Borrowings Outstanding as of							Available Borrowing Capacity as of						Weighted-Average Interest Rate as of
	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018		March 31, 2019			December 31, 2018		March 31, 2020			December 31, 2019				March 31, 2020			December 31, 2019			March 31, 2020			December 31, 2019
(Millions of Dollars)	March 31, 2019				March 31, 2019				March 31, 2019			December 31, 2018		March 31, 2020			December 31, 2019				March 31, 2020			December 31, 2019			March 31, 2020			December 31, 2019
Eversource Parent Commercial Paper Program	$	1,371.0	December 31, 2018	$	631.5	$	December 31, 2018	79.0			$	818.5			2.69	%	2.77	%	$	738.4		$	1,224.9		$	711.6			$	225.1		3.38	%	1.98	%
NSTAR Electric Commercial Paper Program	368.4		278.5		281.6		371.5		2.49	%		2.50	%	88.0			10.5				562.0			639.5			1.25	%		1.63	%

There were no borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, ~~2019~~2020 or December 31, 2018. Eversource's water distribution segment has a $100 million revolving credit facility, which expires on August 19, 2019, and there were no borrowings outstanding as of March 31, 2019 or December 31, 2018.2019.

Long-Term Debt:The following table summarizes long-term debt issuances and repayments:



(Millions of Dollars)	Issuance/(Repayment)			Issue Date or Repayment Date	Maturity Date	Use of Proceeds for Issuance/ Repayment Information
NSTAR Electric:
3.95% 2020 Debentures	$	400.0		March 2020	April 2030	Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes	(95.0		)	March 2020	March 2020	Paid at maturity
Other:
Eversource Parent 3.45% Series P Senior Notes	350.0			January 2020	January 2050	Paid short-term borrowings
NSTAR Gas 4.46% Series N First Mortgage Bonds	(125.0		)	January 2020	January 2020	Paid at maturity
Yankee Gas 4.87% Series K First Mortgage Bonds	(50.0		)	April 2020	April 2020	Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds	75.0			May 2020	May 2025	Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds	115.0			May 2020	May 2050	Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes


⁽¹⁾	~~These bonds are part of the same series issued by CL&P in March 2018. The aggregate outstanding principal amount of these bonds is now $800 million.~~

Long-Term Debt Issuance Authorization: On January 27, 2020, the DPU approved NSTAR Gas' request for authorization to issue up to $270 million in long-term debt through December 31, 2021.

Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid ~~semi-annually, beginning on February 1, 2019.~~semi-annually. PSNH paid $21.6 million of RRB principal payments and $10.3 million of interest payments in the first quarter of 2020 and paid $30.7 million of RRB principal payments and $16.2 million of interest payments in the first quarter of 2019.

The 2020 issuances of 5,960,000 common shares resulted in proceeds of $419.8 million, net of issuance costs and were reflected in shareholders' equity and as financing activities on the statement of cash flows.

Cash Flows: Cash flows provided by operating activities totaled ~~$428.0~~$420.3 million in the first quarter of ~~2019,~~2020, compared with ~~$177.7~~$381.4 million in the first quarter of ~~2018.~~2019. The increase in operating cash flows was due primarily to the ~~$166.5 million decrease in pension and PBOP~~timing of cash ~~contributions made in the first quarter of 2019 compared to the first quarter of 2018, approximately $70 million of storm restoration cost payments made in the first quarter of 2018, and~~collections on our accounts receivables, partially offset by the timing of accounts payable cash ~~payments. Also contributing to the increase were~~payments and lower income tax refunds received in ~~the first quarter~~2020 of 2019 of $52.6 million, compared to tax payments of $11.5 million in 2018. Partially offsetting these favorable impacts were the timing of collections for regulatory tracking mechanisms and the timing of cash collections and payments related to other working capital items.$12.2 million.

On ~~February~~May 6, ~~2019,~~2020, our Board of Trustees approved a common share dividend payment of ~~$0.535~~$0.5675 per share, ~~which was paid~~payable on ~~March 29, 2019~~June 30, 2020 to shareholders of record as of ~~March~~May 20, 2020. On February 5, ~~2019. In the first quarter of 2019, we paid cash dividends of $169.8 million, compared with $160.0 million paid in the first quarter of 2018. On May 1, 2019,~~2020, our Board of Trustees approved a common share dividend payment of ~~$0.535~~$0.5675 per share, ~~payable~~which was paid on ~~June 28, 2019,~~March 31, 2020 to shareholders of record as of ~~May 23,~~March 4, 2020. In the first quarter of 2020, we paid cash dividends of $181.6 million and issued non-cash dividends of $5.9 million in the form of treasury shares, totaling dividends of $187.5 million, compared with cash dividends paid of $169.8 million in the first quarter of 2019.

Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan.

In the first quarter of ~~2019,~~2020, CL&P, NSTAR Electric and PSNH paid ~~$99.0~~$69.5 million, ~~$60.6~~$196.5 million, and ~~$19.0~~$22.3 million, respectively, in common stock dividends to Eversource parent.

Beginning in 2019, Eversource began issuing treasury shares to satisfy awards under the Company's incentive plan, shares issued under the dividend reinvestment plan, and matching contributions under the Eversource 401k Plan.

Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP expense. In the first quarter of ~~2019,~~2020, investments for Eversource, CL&P, NSTAR Electric, and PSNH were ~~$674.7~~$725.5 million, ~~$189.4~~$212.4 million, ~~$208.5~~$247.5 million, and ~~$110.9~~$88.7 million, respectively.

We expect the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with our existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.

~~Credit Ratings:~~ On February 12, 2019, S&P changed the outlook on all its credit ratings for Eversource, CL&P, NSTAR Electric and PSNH from stable to negative. On March 22, 2019, Fitch changed the outlook on the credit ratings of Eversource parent from positive to stable.

~~A summary of our corporate credit ratings and outlooks by Moody's, S&P and Fitch is as follows:~~



	~~Moody's~~		~~S&P~~		~~Fitch~~
	~~Current~~	~~Outlook~~	~~Current~~	~~Outlook~~	~~Current~~	~~Outlook~~
~~Eversource Parent~~	~~Baa1~~	~~Stable~~	A+	~~Negative~~	~~BBB+~~	~~Stable~~
~~CL&P~~	A3	~~Stable~~	A+	~~Negative~~	A-	~~Stable~~
~~NSTAR Electric~~	A2	~~Positive~~	A+	~~Negative~~	A	~~Stable~~
~~PSNH~~	A3	~~Stable~~	A+	~~Negative~~	A-	~~Stable~~

Business Development and Capital Expenditures

Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP expense (all of which are non-cash factors), totaled $655.7 million in the first quarter of 2020, compared to $603.1 million in the first quarter of ~~2019, compared to $496.2~~2019. These amounts included $55.4 million and $49.3 million in the first quarter of ~~2018. These amounts included $49.3 million~~2020 and ~~$30.9 million in the first quarter of~~ 2019, ~~and 2018,~~ respectively, related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company.

Electric Transmission Business: Our consolidated electric transmission business capital expenditures increased by ~~$3.9~~$3.6 million in the first quarter of ~~2019,~~2020, as compared to the first quarter of ~~2018.~~2019. A summary of electric transmission capital expenditures by company is as follows:


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Millions of Dollars)	2019		2018		2020		2019
CL&P	$	112.2	$	101.1	$	84.8	$	112.2
NSTAR Electric	59.3		53.7		76.7		59.3
PSNH	27.7		33.4		46.3		27.7
NPT	5.0		12.1		—		5.0
Total Electric Transmission Segment	$	204.2	$	200.3	$	207.8	$	204.2

~~Northern Pass~~: Northern Pass is Eversource's planned 1,090 MW HVDC transmission line that will interconnect from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire. Northern Pass has achieved several key milestones to date, including receiving the majority of federal, state and Canadian permits required to be constructed and placed in service to ultimately provide delivery of hydropower. Three permits remain outstanding.

~~On January 25, 2018, Northern Pass was selected as the winning bidder in the~~Eastern Massachusetts Clean Energy Request for Proposals ("RFP"). In March 2018, the New Hampshire Site Evaluation Committee ("NHSEC") issued a written decision denying Northern Pass’ siting application after which the Massachusetts EDCs revoked the selection of, and terminated contract negotiations with, Northern Pass under the Massachusetts Clean Energy RFP. On July 12, 2018, the NHSEC issued a written decision denying Northern Pass’ April 2018 motion for rehearing. On October 12, 2018, the New Hampshire Supreme Court accepted an appeal filed by NPT, which alleged that the NHSEC failed to follow applicable law in its review of the project. Subsequently, the NHSEC transmitted the record of its proceedings to the New Hampshire Supreme Court on December 11, 2018. Briefing of the appeal began on February 4, 2019 and concluded on April 10, 2019. The New Hampshire Supreme Court will hear oral arguments on May 15, 2019 and a decision is expected later this year. NPT intends to continue to pursue NHSEC approval to construct the project.

~~Greater Boston Reliability Solution:~~ ~~The Greater Boston and New Hampshire Solution consists~~Transmission Projects: These projects consist of a portfolio of electric transmission upgrades in southern New Hampshire, ~~and~~ northern Massachusetts and continuing into the greater Boston metropolitan area, of which 28 upgrades are in Eversource's service territory (two in New Hampshire and 26 in Massachusetts). The two New Hampshire upgrades, including the Merrimack Valley Reliability Project, have been placed in service, and 1620 Massachusetts upgrades have been placed in service. ~~Seven~~On December 17, 2019, the Massachusetts Siting Board issued a favorable decision on the Sudbury-Hudson Reliability Project, the last project requiring such approval. On January 17, 2020, the Town of Sudbury and Protect Sudbury, a community group, appealed the decision to the Massachusetts Supreme Judicial Court and oral arguments were conducted on March 17, 2020. The majority of the remaining upgrades are under construction and one upgrade is expected to enter construction in the second quarter of 2019. We anticipate approval from the Massachusetts Energy Facilities Siting Board on the two remaining projects in the second quarter of 2019. Most upgrades are expected to be ~~completed by the end of 2019. Four projects are expected to be~~placed in service ~~by the end of 2020 and another project by mid-2021.~~in 2021. We estimate our portion of the investment ~~in the Solution~~ will be approximately ~~$560~~$750 million, of which ~~$369.0~~$449.9 million has been spent and capitalized through March 31, ~~2019.~~2020.

~~GHCC~~Hartford-Area Transmission Projects: ~~The Greater Hartford Central Connecticut ("GHCC")~~These projects ~~which have been approved by ISO-NE,~~ consist of 27 projects in the Hartford, Connecticut area with an expected investment of approximately $350 million. As of March 31, ~~2019, 23~~2020, 25 projects have been placed in service, and ~~four~~two projects are in active construction and are expected to be placed in service ~~through 2019.~~in the fourth quarter of 2020. As of March 31, ~~2019,~~2020, CL&P had spent and capitalized ~~$240.0~~$281.9 million in costs associated with ~~GHCC.~~these projects.

Seacoast Reliability Project: ~~On April 12, 2016, PSNH filed a siting application with the NHSEC for the~~The Seacoast Reliability Project consists of a 13-mile, 115kV transmission line within several New Hampshire communities, ~~which proposes to use~~using a combination of overhead, underground and underwater line designs to help meet the growing demand for electricity in the Seacoast region. On December 10, 2018, the NHSEC indicated its unanimous approval of the project, and subsequently issued its written decision on January 31, 2019. On ~~April 11,~~May 13, 2019, two appeals of the NHSEC's approval orders were filed with the New Hampshire Supreme Court. On December 17, 2019, the ~~NHSEC issued~~Conservation Law Foundation requested the Court to withdraw its ~~written decision denying motions for rehearing submitted~~appeal, and the Court granted the request on December 20, 2019. For the pending appeal by ~~three entities that intervened in~~a small group of property owners located adjacent to the ~~proceeding.~~project, oral arguments were conducted on March 10, 2020. This project is under construction and is scheduled to be completed byin the ~~end~~second quarter of ~~2019.~~2020. We estimate the investment ~~in this project to~~will be approximately ~~$84~~$125 million, of which PSNH had spent and capitalized ~~$32.2~~$103.7 million in costs through March 31, ~~2019.~~2020.

All project costs are anticipated to be fully recoverable through transmission rates.

Distribution Business: A summary of distribution capital expenditures is as follows:


	For the Three Months Ended March 31,														For the Three Months Ended March 31,
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		Total Electric		Natural Gas		Water		Total		CL&P		NSTAR Electric		PSNH		Total Electric		Natural Gas		Water		Total
2020
Basic Business															$	43.7	$	59.6	$	9.8	$	113.1	$	20.0	$	1.9	$	135.0
Aging Infrastructure															44.1		54.4		22.5		121.0		67.3		15.8		204.1
Load Growth and Other															15.0		24.0		3.1		42.1		10.8		0.1		53.0
Total Distribution															102.8		138.0		35.4		276.2		98.1		17.8		392.1
Solar															—		0.4		—		0.4		—		—		0.4
Total															$	102.8	$	138.4	$	35.4	$	276.6	$	98.1	$	17.8	$	392.5
2019
Basic Business	$	33.3	$	66.8	$	8.1	$	108.2	$	11.2	$	2.1	$	121.5	$	33.3	$	66.8	$	8.1	$	108.2	$	11.2	$	2.1	$	121.5
Aging Infrastructure	45.2		43.0		25.4		113.6		53.2		13.0		179.8		45.2		43.0		25.4		113.6		53.2		13.0		179.8
Load Growth and Other	14.3		17.4		3.9		35.6		10.0		0.4		46.0		14.3		17.4		3.9		35.6		10.0		0.4		46.0
Total Distribution	92.8		127.2		37.4		257.4		74.4		15.5		347.3		92.8		127.2		37.4		257.4		74.4		15.5		347.3
Solar	—		2.3		—		2.3		—		—		2.3		—		2.3		—		2.3		—		—		2.3
Total	$	92.8	$	129.5	$	37.4	$	259.7	$	74.4	$	15.5	$	349.6	$	92.8	$	129.5	$	37.4	$	259.7	$	74.4	$	15.5	$	349.6
2018
Basic Business	$	49.8	$	38.7	$	17.6	$	106.1	$	10.0	$	2.2	$	118.3
Aging Infrastructure	22.7		20.1		19.9		62.7		28.7		9.2		100.6
Load Growth and Other	13.3		2.7		3.6		19.6		4.7		0.4		24.7
Total Distribution	85.8		61.5		41.1		188.4		43.4		11.8		243.6
Solar and Generation	—		21.0		0.4		21.4		—		—		21.4
Total	$	85.8	$	82.5	$	41.5	$	209.8	$	43.4	$	11.8	$	265.0

For the electric distribution business, basic business includes the purchase of meters, tools, vehicles, information technology, transformer replacements, equipment facilities, and the relocation of plant. Aging infrastructure relates to reliability and the replacement of overhead lines, plant substations, underground cable replacement, and equipment failures. Load growth and other includes requests for new business and capacity additions on distribution lines and substation additions and expansions.

For the natural gas distribution business, basic business addresses daily operational needs including meters, pipe relocations due to public works projects, vehicles, and tools. Aging infrastructure projects seek to improve the reliability of the system through enhancements related to cast iron and bare steel replacement of main and services, corrosion mediation, and station upgrades. Load growth and other reflects growth in existing service territories including new developments, installation of services, and expansion.

For the water distribution business, basic business addresses daily operational needs including periodic meter replacement, water main relocation, facility maintenance, and tools. Aging infrastructure relates to reliability and the replacement of water mains, regulators, storage tanks, pumping stations, wellfields, reservoirs, and treatment facilities. Load growth and other reflects growth in our service territory, including improvements toof acquisitions, installation of new services, and interconnections of systems.

Pending Acquisition of Assets of Columbia Gas of Massachusetts: On February 26, 2020, Eversource and NiSource Inc. entered into an asset purchase agreement (the Agreement) pursuant to which Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in Massachusetts, which is doing business as Columbia Gas of Massachusetts (CMA). The purchase price of $1.1 billion includes a target working capital amount that is subject to adjustment to reflect actual working capital as of the closing date. Eversource would acquire approximately 330,000 residential, commercial, and industrial natural gas customers, as well as over 5,000 miles of natural gas distribution pipeline across more than 60 communities in Massachusetts.

Offshore Wind Business: Our offshore wind business includes ownership interests in ~~key offshore wind assets in the Northeast, including~~North East Offshore and Bay State Wind, which together hold PPAs and contracts for the Revolution Wind, ~~and~~ South Fork Wind ~~projects.~~and Sunrise Wind projects, as well as offshore leases through BOEM. Our offshore wind projects are being developed inand constructed through a joint and equal partnership with Ørsted.

This ~~business~~partnership also participates in new procurement opportunities ~~for future solicitations~~ for offshore wind energy in the Northeast U.S.

~~On February 8, 2019,~~

Eversource and Ørsted entered into a 50-50 partnership for key offshore wind assets in the Northeast. Eversource's initial payment and contribution under the terms of the partnership agreements totaled approximately $225 million forhas a 50 percent ownership interest in North East Offshore, ~~LLC,~~ which holds the Revolution Wind and South Fork Wind ~~power~~ projects, as well as a ~~257-square-mile tract~~257 square-mile lease off the coasts of Massachusetts and Rhode Island.

~~This transaction augments our existing 50-50 partnership with Ørsted for Bay State Wind.~~ Eversource also has a 50 percent ownership interest in Bay State Wind, ~~is located on a~~which holds the Sunrise Wind project. Bay State Wind's separate 300-square-mile ocean ~~tract~~lease is located approximately 25 miles south of the coast of Massachusetts adjacent to the North East Offshore area. ~~Together,~~In aggregate, the Bay State Wind and the North East Offshore lease sites jointly-owned by Eversource and Ørsted could eventually ~~host~~develop at least 4,000 MW of clean, renewable offshore wind ~~generation.~~energy. As of March 31, 2020, Eversource's total equity investment balance in its offshore wind business was $655.0 million.

Currently we are concluding on final offshore and onshore project designs and advancing the appropriate federal, state and local siting and permitting processes, all of which is competitively sensitive. Subject to finalization of these designs and processes, all of which are subject to change and modification as a result of our investment decisions, permit approval timelines and final design decisions, we currently expect to make investments in our offshore wind business of approximately $300 million to $400 million during 2020.

The following table provides a summary of the Eversource and Ørsted ~~have jointly participated, or expect~~major projects with announced contracts:



Wind Project	State Servicing	Size (MW)	Term (Years)	Price per MWh	Pricing Terms	Contract Status
Revolution Wind	Rhode Island	400	20	$98.43	Fixed price contract; no price escalation	Approved
Revolution Wind	Connecticut	304	20	⁽¹⁾	Fixed price contracts; no price escalation	Approved
South Fork Wind	New York (LIPA)	90	20	$160.33	2 percent average price escalation	Approved
South Fork Wind	New York (LIPA)	40	20	$86.25	2 percent average price escalation	⁽³⁾
Sunrise Wind	New York (NYSERDA)	880	25	$110.37 ⁽²⁾	Fixed price contract; no price escalation	Approved


⁽¹⁾	The pricing for the Revolution Wind contracts in Connecticut has not been publicly disclosed.


⁽²⁾	Index Offshore Wind Renewable Energy Certificate (OREC) strike price.


⁽³⁾	The Long Island Power Authority (LIPA) agreed to expand the original 20-year PPA from 90 MW to 130 MW through an amendment to the original agreement. Negotiations are currently underway, and a final amendment is expected in the second quarter of 2020.

The completion dates for these projects are subject to ~~participate,~~federal permitting through BOEM, engineering, state siting and permitting in ~~the following opportunities for future solicitations for offshore wind based on each state's clean energy requirements:~~

~~The~~ New York State Energy Research and Development Authority ("NYSERDA") RFP for 800 MW, issued in November 2018. NYSERDA has the authority to award more than 800 MW in the first solicitation if sufficient attractive offers are received. On February 14, 2019, Eversource and Ørsted submitted joint proposals in response to the RFP under the project name Sunrise Wind. NYSERDA will award contracts to its selected bidders in 2019.

~~Massachusetts’ second offshore wind RFP for 400 MW to 800 MW, expected to be issued by mid-2019.~~

~~Revolution Wind and South Fork Wind:~~ Revolution Wind is a 700 MW offshore wind power project, located approximately 15 miles south of the Rhode Island coast, that will deliver power to Rhode Island (400 MW) and Connecticut (300 MW). The Revolution Wind project was selected under Connecticut and Rhode Island, ~~RFPs based~~and finalizing a PPA amendment in New York. Significant delays in the siting and permitting process, including the timing of obtaining BOEM approval and the impact of COVID-19, could adversely impact the timing of these projects' in-service dates. At this time, we are unable to predict the impact of delays on ~~each state's clean energy requirements. In Connecticut, 20-year power purchase agreements~~the projects' in-service dates.

Currently, BOEM has indicated it will complete its Cumulative Impact Study as part of the Draft Supplemental Environmental Impact Statement (EIS) for a ~~total~~non-affiliated offshore wind project during the second quarter of ~~200 MW were executed and have been approved by~~2020. The study is designed to assess the ~~PURA. In~~overall environmental impact of all offshore wind projects that are planned to be located in waters off of Rhode Island ~~a 20-year power purchase agreement~~and Massachusetts.

Federal siting and permitting have commenced for ~~400 MW was executed and is awaiting regulatory approval. The remaining 100 MW was awarded in~~ the ~~Connecticut RFP, and a power purchase agreement is currently under negotiation~~South Fork Wind project, as it has filed its Construction Operations Plan (COP) application with ~~the electric distribution companies.~~

BOEM. South Fork Wind is designated as a ~~130 MW offshore wind power project, located approximately 35 miles east~~“Covered Project” pursuant to Title 41 of ~~Long Island, that will interconnect into eastern Long Island where it will deliver power to~~ the ~~Long Island Power Authority households. The~~Fixing America’s Surface Transportation Act (“FAST41”) and a Major Infrastructure Project under Section 3(e) of Executive Order 13807, which provides greater federal attention on meeting the project’s permitting timelines. South Fork Wind previously filed federal and state applications in 2018. Although we have received BOEM's Notice of Intent for the South Fork Wind project ~~was selected by~~(the first important milestone towards receiving the ~~Long Island Power Authority, and~~final permit), we have not received a ~~20-year power purchase agreement for 90 MW was executed. Subsequently,~~confirmed permit schedule from BOEM outlining when the ~~Long Island Power Authority agreed to expand~~COP will be received.

On April 8, 2020, the ~~original power purchase agreement to 130 MW through an amendment~~state of New York Administrative Law Judge granted a 10-week delay to the ~~original agreement. Negotiations are currently underway to finalize this amendment.~~

South Fork Wind ~~is expected~~evidentiary hearing schedule, until September 30, 2020, due to ongoing COVID-19 work and travel restrictions. In addition, field work for South Fork Wind and Sunrise Wind in New York has been suspended due to COVID-19 restrictions. Currently, we are developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects, which include delays in New York state for performing offshore site investigations, and onshore environmental and geotechnical surveys, in order to limit the impact and risk to our project siting and permit filing timelines.

Given that we have not received a confirmed permit schedule from BOEM outlining when the South Fork Wind COP will be ~~commissioned~~received and that BOEM has not completed its Cumulative Impact Study, combined with impacts from the COVID-19 related shut-downs in New York, these impacts will very likely delay the in-service date of the South Fork Wind project to beyond the projected end of 2022 in-service date.

Revolution Wind filed its COP application with BOEM in March 2020 and will seek FAST41 designation by the end of ~~2022, and~~2020. Sunrise Wind's COP filing is planned in 2020. State agencies also will review siting applications for Revolution Wind ~~is expected~~and Sunrise Wind in New York and Rhode Island, with application filings planned in 2020. For Revolution Wind, we are awaiting BOEM to ~~be commissioned in 2023. The completion~~issue its Notice of Intent, which will outline the timeline for COP approval. For Sunrise Wind, we are currently unable to progress our offshore site surveys due to COVID-19 restrictions, which adversely impacts our COP application process. At this time, for the Revolution Wind and Sunrise Wind projects, we are unable to predict the impact of delays on their projected in-service dates ~~are subject to permitting, engineering, siting~~of end of 2023 and ~~finalizing power purchase agreements, where applicable.~~end of 2024, respectively.

~~Bay State Wind:~~ ~~Bay State Wind is located approximately 25 miles south of the coast of Massachusetts and has the ultimate potential to generate at least 2,000 MW of clean, renewable energy.~~

~~Natural Gas Transmission Project:~~ On April 1, 2019, pursuant to a provision in the partnership agreement jointly entered into by Eversource, Enbridge, Inc. and National Grid plc, through Algonquin Gas Transmission, LLC, the Access Northeast project was terminated. The full carrying value of our equity method investment in the Access Northeast project was written off in 2018.

FERC Regulatory Matters

FERC ROE Complaints: Four separate complaints ~~have been~~were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the ~~"Complainants")~~Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive ~~("incentive cap")~~(incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.

All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of March 31, 2020 and December 31, 2019. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, 2020 and December 31, 2019.

Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.

FERC ~~Notices~~Notice of ~~Inquiry:~~Inquiry on ROE: On March 21, 2019, FERC issued ~~two Notices~~a Notice of Inquiry ~~("NOI") that may affect Eversource transmission ROEs and incentives. One NOI seeks~~(NOI) seeking comments from all stakeholders on FERC's policies for evaluating ROEs for electric public utilities, and interstate natural gas and oil pipelines. On June 26, 2019, the NETOs jointly filed comments supporting the methodology established in the FERC’s October 16, 2018 order with minor enhancements going forward. The ~~other~~NETOs jointly filed reply comments in the FERC ROE NOI ~~seeks~~on July 26, 2019. At this time, Eversource cannot predict how this proceeding will affect its transmission ROEs.

FERC Notice of Inquiry and Proposed Rulemaking on Transmission Incentives: On March 21, 2019, FERC issued a NOI seeking comments on FERC's policies for implementing electric transmission incentives. ~~Initial~~On June 26, 2019, Eversource filed comments requesting that FERC retain policies that have been effective in encouraging new transmission investment and remain flexible enough to attract investment in new and emerging transmission technologies. Eversource filed reply comments on ~~both NOIs~~August 26, 2019. On March 20, 2020, FERC issued a Notice of Proposed Rulemaking (NOPR) on transmission incentives. The NOPR intends to revise FERC’s electric transmission incentive policies to reflect competing uses of transmission due to generation resource mix, technological innovation and shifts in load patterns. FERC proposes to grant transmission incentives based on measurable project economics and reliability benefits to consumers rather than its current project risks and

challenges framework. Comments from interested parties on the NOPR are due ~~in June 2019 with reply comments due in~~ July ~~2019.~~1, 2020. At this time, Eversource cannot predict how these ~~NOIs~~proceedings will affect its ~~ROEs or~~transmission incentives.

FERC Transmission Rate Settlement: On December 28, 2015, FERC initiated a proceeding to review the NETOs' regional and local transmission formula rates due to a lack of transparency, finding that the formula rates appeared to lack sufficient details to determine how costs are derived and recovered in rates. This proceeding was set for hearing but held in abeyance to provide time for settlement judge procedures. On August 17, 2018, a signed Settlement Agreement between twenty-eight parties, including all six New England state regulatory commissions, the NETOs (including CL&P, NSTAR Electric and PSNH) and other settling parties, was filed at the FERC. The Settlement Agreement included, among other things, a new formula rate template in which all regional and local transmission revenue requirements will be determined through a single formula rate. The Settlement Agreement was contested by a group of municipal entities and the FERC Trial Staff. On May 22, 2019, FERC rejected the Settlement Agreement and remanded the proceeding for hearings. The parties have been engaged in further settlement negotiations and reached an agreement in principle on October 22, 2019. The FERC Chief Administrative Law Judge has approved three suspensions of the schedule for the NETOs to review the terms with other active parties and finalize the settlement. The procedural schedule has been suspended to June 8, 2020.

U.S. Federal Corporate Income Taxes: Effective January 1, 2018, the local transmission service rates were updated to reflect the lower U.S. federal corporate income tax rate that resulted from the Tax Cuts and Jobs Act. On June 28, 2018, FERC granted a one-time waiver of tariff provisions related to the federal corporate income tax rate so that, effective June 1, 2018, the regional transmission service rates also reflected the reduced federal corporate income tax rate of 21 percent. The local and regional transmission service rates do not currently reflect amortization of excess ADIT (EDIT) balances that resulted from the Act. On November 15, 2018, FERC issued a Policy Statement and a separate Notice of Proposed Rulemaking addressing accounting and rate issues related to ADIT changes resulting from the Act. On November 21, 2019, FERC issued its final rule requiring public utilities with transmission formula rates to make adjustments to ADIT and EDIT. On February 24, 2020, FERC granted Eversource’s motion for extension to July 31, 2020 to submit compliance filings.

Regulatory Developments and Rate Matters

Electric, Natural Gas and Water Utility Base Distribution Rates: The regulated companies’ distribution rates are set by their respective state regulatory commissions, and their tariffs include mechanisms for periodically adjusting their rates for the recovery of specific incurred costs. Other than as described below, for the first quarter of ~~2019,~~2020, changes made to the regulated companies’ rates did not have a material impact on their earnings, financial position, or cash flows. For further information, see "Financial Condition and Business Analysis – Regulatory Developments and Rate Matters" included in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource ~~2018~~2019 Form 10-K.

~~U.S. Federal Corporate Income Taxes:~~ ~~On December 22, 2017,~~COVID-19 Regulatory Dockets: Beginning in March 2020, in Connecticut, Massachusetts and New Hampshire, there is presently a moratorium on disconnections of residential and commercial customers for non-payment of utility service. Our operating companies have also eliminated late payment charges. In general, these moratoriums will remain in place until the ~~Tax Cuts~~declared COVID-19 state of emergency is lifted by each respective state Governor or further direction is provided by the respective state regulatory commissions.

In Connecticut, PURA opened a docket to address COVID-19 developments, including issuing an order on March 18, 2020 and ~~Jobs Act became law, which amended existing federal tax rules~~April 29, 2020 that authorized electric, natural gas and water utilities to ~~reduce~~establish a regulatory asset for COVID-19 uncollectible customer receivable expenses and related costs. PURA’s order on April 29, 2020 also allowed the ~~U.S. federal corporate income tax rate from 35 percent~~inclusion of working capital costs in the regulatory asset, and authorized electric, natural gas and water utilities to ~~21 percent effective January 1, 2018. For our~~establish a payment plan program designed to assist any customer who requests financial assistance during the COVID-19 pandemic. Additionally, on April 17, 2020, PURA issued a letter to Connecticut’s Congressional delegation explaining that reliable utility services are critical services paramount to the economic performance of the state and advocated in favor of directing stimulus funds to regulated public service companies ~~the most significant changes are (1) the benefit of incurring a lower federal income tax expense and (2) the reduction in ADIT liabilities (now excess ADIT or EDIT), which are estimated~~that would be used to ~~be approximately $2.9 billion and included in regulatory liabilities as of~~directly offset uncollectible customer receivable expenses.

In Massachusetts, on March 31, ~~2019. The refund of these EDIT regulatory liabilities to customers will generally be made over~~2020, the ~~same period as the remaining useful lives of the underlying assets~~DPU issued a request for comments on, among other things, best practices that gave rise to the ADIT liabilities. The refund of EDIT has begun at several of our distribution companies and is reflected in rates. The refund to customers results in lower Revenues on the statements of income, and lower current tax expense as a result of the lower revenue and the amortization of the EDIT regulatory liabilities, both of which are recognized as a reduction to Income Tax Expense on the statements of income. The refund of EDIT results in a lower effective tax rate and no impact on net income.

~~Connecticut:~~

~~CL&P Storm Filing:~~ CL&P's approved rate case settlement in 2018 incorporated $18.6 million of rate base recovery for catastrophic storms occurring after December 31, 2016, subject to a future storm filing. On November 16, 2018, CL&P filed for recovery of $153 million of storm costs incurred from October 2017 through May 2018, with recovery over six years to begin May 1, 2019. Through the course of the proceeding, CL&P updated its request to $145.5 million to reflect final invoicing and capitalization amounts.regulated utilities should utilize when customer shut-off activities resume. On April 17, ~~2019, PURA authorized recovery~~2020, a coalition of ~~$141.0 million as part of storm cost recovery~~electric, natural gas and water utilities submitted a comprehensive response to the DPU that would enable the state’s utilities to provide flexible payment arrangements to those customers who need financial assistance, while simultaneously maintaining the financial integrity necessary to continue to conduct and finance utility operations through appropriate ratemaking treatment and the ~~remainder to be recorded to capital or~~establishment of a regulatory asset for COVID-19 related expenses, including uncollectible customer receivable expenses, among other ~~balance sheet accounts.~~proposals.

~~Clean Energy RFP~~: On December 28, 2018, under Public Act 17-3, "An Act Concerning Zero Carbon Procurement," DEEP selected the Millstone Nuclear Power Station generation facility, along with smaller generation facilities, in DEEP’s zero-carbon request for proposal. CL&P and UI were directed by DEEP to enter into ten-year contracts to purchase a combined total of approximately 9 million MWh annually from the Millstone generation facility. On March 15, 2019, CL&P and UI each signed a ten-year contractConsistent with the ~~owner~~above-described developments in Connecticut and Massachusetts, Eversource is working closely with the NHPUC on COVID-19 developments impacting our New Hampshire electric and water utilities, including the proposed establishment of ~~Millstone Nuclear Power Station~~flexible payment plan options for those customers who need financial assistance in order to ~~purchase a combined amount of approximately 50 percent~~mitigate the size of the ~~facility's output (approximately 40 percent~~uncollectible customer receivable balances that would be borne by ~~CL&P). The Millstone Nuclear Power Station has~~all customers in the future.

Massachusetts:

NSTAR Electric Distribution Rates: As part of an inflation-based mechanism, NSTAR Electric submitted its second annual Performance Based Rate Adjustment filing on September 16, 2019 and the DPU approved a ~~2,112 MW nameplate capacity. The parties filed the contract with PURA~~$33.6 million increase to base distribution rates on ~~March 29,~~December 19, 2019 for ~~review~~effect on January 1, 2020.

NSTAR Gas Rate Case: On November 8, 2019, NSTAR Gas filed its application with the DPU, which sought a distribution rate increase of $38.0 million. As part of this filing, NSTAR Gas also proposed to continue its ongoing Gas System Enhancement Program (GSEP), include the GSEP investments since 2015 into base rates, and ~~approval.~~implement a performance-based ratemaking plan. A final decision from ~~PURA~~the DPU is expected ~~in the third quarter of 2019.~~by October 30, 2020, with rates effective November 1, 2020.

~~Massachusetts:~~

~~Hingham Condemnation:~~ On April 22, 2019, the town of Hingham, Massachusetts voted to acquire the water system and treatment plant that supply the towns of Hingham, Hull and north Cohasset with water. The acquisition price is currently estimated to be more than $100 million, subject to adjustment based on actual capital investments as legally required and other future closing adjustments. Aquarion will continue to operate the water system during the transition period until the sale occurs. The Company is evaluating the impact of the sale on its financial statements, which will be recorded when the sale transaction occurs. No loss is expected. The transaction is expected to close by the end of 2019. As of March 31, 2019, these water distribution assets were included within Property, Plant and Equipment, Net on the balance sheet and were also reflected in the Water Distribution segment and reporting unit.

New Hampshire:

Distribution Rates:On April 26, 2019, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase, ~~of approximately $33 million,~~ effective July 1, 2019. ~~Also~~On June 27, 2019, the NHPUC approved a settlement agreement that was reached by PSNH, the NHPUC Staff, the Office of the Consumer Advocate, and another settling party, to implement a temporary annual base distribution rate increase of $28.3 million. Although new rates were implemented on ~~April 26,~~August 1, 2019 to customers, the provisions of the temporary base distribution rate increase were effective July 1, 2019. The settlement agreement also permits PSNH to recover approximately $68.5 million in unrecovered storm costs over a five-year period beginning August 1, 2019, with debt carrying charges, which is included in the temporary rate increase.

On May 28, 2019, PSNH filed ~~a notice of intent~~an application with the NHPUC ~~to request an~~for a permanent increase in ~~permanent~~ base distribution rates of approximately $70 million, effective July 1, 2020, which ~~is inclusive of~~includes the ~~$33 million~~ temporary rate increase request. ~~PSNH expects~~The temporary rates are subject to ~~file~~reconciliation based on the outcome of the permanent rate case now before the NHPUC. The NHPUC is permitted up to twelve months to adjudicate the permanent rate application from the date of filing. On April 24, 2020, Governor Sununu issued an ~~application with~~emergency order, which extends the maximum adjudication period by six months, for a maximum of 18 months. A decision by the NHPUC ~~for the permanent increase in base distribution rates~~is now expected in the ~~second~~fourth quarter of ~~2019.~~2020. Temporary rates will remain in effect with a reconciliation of permanent rates retroactive to July 1, 2019 once permanent rates are set.

~~2013 through 2016 Storm Costs:~~Draft Audit Report of Generation Asset Divestiture-Related Costs: On May 4, 2020, the NHPUC Audit Staff issued a draft report on the audit of PSNH’s generation asset divestiture-related costs and resulting securitized and stranded costs. Responses are due no later than May 12, 2020, with a final NHPUC audit report expected on May 15, 2020. We are currently evaluating the NHPUC audit findings and continue to believe the amounts deferred are probable of recovery.

Legislative and Policy Matters

Federal:On March ~~26, 2019,~~27, 2020, President Trump signed the ~~NHPUC approved~~$2.2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act. Among other provisions, the ~~recovery~~CARES Act provides for loans and other benefits to small and large businesses, expanded unemployment insurance, direct payments to those with wages middle-income and below, new appropriations funding for health care and other priorities, and tax changes like deferrals of ~~$38.1~~employer payroll tax liabilities coupled with an employee retention tax credit and rollbacks of Tax Cuts and Jobs Act limitations on net operating losses and certain business interest limitation. For the year ended December 31, 2020, we expect an estimated cash flow benefit of about $35 million ~~plus carrying charges,~~related to the deferral of ~~storm costs incurred from December 2013 through April 2016 and~~employer payroll tax liability provision. We will continue to evaluate the ~~transfer of funding from PSNH’s major storm reserve~~CARES Act impact; however, other than the cash flow benefit described, we do not expect the CARES Act to recover those costs. The costs of these storms (excluding the equity return component of the carrying charges) were deferred as regulatory assets, and the funding reserve collected from customers was accrued ashave a regulatory liability. As a result of the duration of time between incurring storm costs in December 2013 through April 2016 and final approval from the NHPUC in 2019, PSNH recognized $5.2 million (pre-tax) for the equity return component of the carrying charges within Other Income, Net on the statement of income in the first quarter of 2019, which has been collected from customers. Also included in the March 26, 2019 NHPUC approval is a prospective requirement for PSNH to annually net its storm funding reserve collected from customers against deferred storm costs.material impact.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and, at times, difficult, subjective or complex judgments. Changes in these estimates, assumptions and judgments, in and of themselves, could materially impact our financial position, results of operations or cash flows. Our management communicates to and discusses with the Audit Committee of our Board of Trustees significant matters relating to critical accounting policies. Our critical accounting policies that we believed were the most critical in nature were reported in the Eversource ~~2018~~2019 Form 10-K. There have been no material changes with regard to these critical accounting policies.

Other Matters

Accounting Standards: For information regarding new accounting standards, see Note 1B, "Summary of Significant Accounting Policies – Accounting Standards," to the financial statements.

Contractual Obligations and Commercial Commitments: ~~Refer to Note 9B, "Commitments~~There have been no material contractual obligations identified and ~~Contingencies – Long-Term Contractual~~

~~Arrangements," for discussion of~~no material changes

with regard to the contractual ~~obligations.~~obligations and commercial commitments previously disclosed in the Eversource 2019 Form 10-K.

Web Site: Additional financial information is available through our website at www.eversource.com. We make available through our website a link to the SEC's EDGAR website (http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site Eversource's, CL&P's, NSTAR Electric's and PSNH's combined Annual Reports on Form 10-K, combined Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be reviewed. Information contained on the Company's website or that can be accessed through the website is not incorporated into and does not constitute a part of this combined Quarterly Report on Form 10-Q.

RESULTS OF OPERATIONS – EVERSOURCE ENERGY AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for Eversource for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 included in this combined Quarterly Report on Form 10-Q:


	For the Three Months Ended March 31,							For the Three Months Ended March 31,
(Millions of Dollars)	2019		2018		Increase/ (Decrease)			2020		2019		Increase/ (Decrease)
Operating Revenues	$	2,415.8	$	2,288.0	$	127.8		$	2,373.7	$	2,415.8	$	(42.1	)
Operating Expenses:
Purchased Power, Fuel and Transmission	974.9		946.8		28.1			876.5		974.9		(98.4		)
Operations and Maintenance	335.6		332.5		3.1			342.1		335.6		6.5
Depreciation	214.9		204.3		10.6			236.2		214.9		21.3
Amortization	71.0		45.2		25.8			49.8		71.0		(21.2		)
Energy Efficiency Programs	140.1		134.2		5.9			148.4		140.1		8.3
Taxes Other Than Income Taxes	184.6		182.5		2.1			181.5		184.6		(3.1		)
Total Operating Expenses	1,921.1		1,845.5		75.6			1,834.5		1,921.1		(86.6		)
Operating Income	494.7		442.5		52.2			539.2		494.7		44.5
Interest Expense	131.7		121.1		10.6			134.7		131.7		3.0
Other Income, Net	31.0		33.8		(2.8		)	24.1		31.0		(6.9		)
Income Before Income Tax Expense	394.0		355.2		38.8			428.6		394.0		34.6
Income Tax Expense	83.4		83.8		(0.4		)	91.9		83.4		8.5
Net Income	310.6		271.4		39.2			336.7		310.6		26.1
Net Income Attributable to Noncontrolling Interests	1.9		1.9		—			1.9		1.9		—
Net Income Attributable to Common Shareholders	$	308.7	$	269.5	$	39.2		$	334.8	$	308.7	$	26.1

Operating Revenues

Sales Volumes: A summary of our retail electric GWh sales volumes, our firm natural gas MMcf sales volumes, and our water MG sales volumes, and percentage changes, is as follows:


	For the Three Months Ended March 31, 2019 Compared to 2018																				Electric							Firm Natural Gas						Water
	Electric					Firm Natural Gas								Water							Sales Volumes (GWh)				Percentage Decrease			Sales Volumes (MMcf)				Percentage Decrease		Sales Volumes (MG)			Percentage Decrease
	Sales Volumes (GWh)		Percentage Decrease			Sales Volumes (MMcf)					Percentage Increase			Sales Volumes (MG)					Percentage Increase/ (Decrease)																		Percentage Decrease
	2019	2018 ⁽¹⁾			2019			2018 ⁽²⁾			Percentage Increase		2019			2018
Three Months Ended March 31:																					2020			2019	Percentage Decrease		Percentage Decrease		2020		2019			Percentage Decrease	2020		2019		Percentage Decrease
Traditional	1,968	1,972	Percentage Decrease	(0.2	)%		—			—		—	%		451			467	Percentage Increase/ (Decrease)			(3.4	)%	1,906	1,968		Percentage Decrease			—		Percentage Decrease	—	Percentage Decrease		434		451	Percentage Decrease
Decoupled and Special Contracts ⁽³⁾	11,183	11,249	(0.6	)%		45,376			43,179		5.1	%		4,378			4,357		0.5	%
Decoupled and Special Contracts ⁽¹⁾																					10,465			11,183	(6.4	)%		39,062		45,376		(13.9	)%	4,372	4,378		(0.1	)%
Total Sales Volumes	13,151	13,221	(0.5	)%		45,376			43,179		5.1	%		4,829			4,824		0.1	%	12,371			13,151	(5.9	)%		39,062		45,376		(13.9	)%	4,806	4,829		(0.5	)%


⁽¹⁾	Effective February 1, 2018, NSTAR Electric operated entirely under a decoupled rate structure. The 2018 sales volumes for NSTAR Electric have been recast to present January 2018 as decoupled to conform to the current year presentation.


⁽²⁾	Effective November 15, 2018, Yankee Gas operated under a decoupled rate structure. The 2018 sales volumes for Yankee Gas have been recast to present 2018 as decoupled to conform to the current year presentation.


⁽³⁾	Special contracts are unique to Yankee Gas natural gas distribution customers who take service under such an arrangement and generally specify the amount of distribution revenue to be paid to Yankee Gas regardless of the customers' usage.

Weather, fluctuations in energy supply costs, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage and water consumption. Industrial sales volumes are less sensitive to temperature variations than residential and commercial sales volumes. In our service territories, weather impacts both electric and water sales volumes during the summer and both electric and natural gas sales volumes during the winter; however, natural gas sales volumes are more sensitive to temperature variations than electric sales volumes. Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur.

Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table above). For CL&P, NSTAR Electric, Yankee Gas, ~~and~~ NSTAR Gas and our Connecticut water distribution business, fluctuations in retail sales volumes do not materially impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms ("Decoupled" in the table above). These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized. ~~Fluctuations in water sales volumes largely do not impact earnings as our Connecticut water distribution business is also decoupled.~~

Operating Revenues: Operating Revenues by segment ~~increased~~increased/(decreased) for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, as follows:


(Millions of Dollars)	Three Months Ended			Three Months Ended
Electric Distribution	$	79.3		$	(28.6	)
Natural Gas Distribution	44.0			(20.3		)
Electric Transmission	35.5			29.2
Water Distribution	0.9			1.4
Other	27.2			36.5
Eliminations	(59.1		)	(60.3		)
Total Operating Revenues	$	127.8		$	(42.1	)

Electric and Natural Gas Distribution Revenues:

Base Distribution Revenues:

Base electric distribution revenues increased ~~$18.3~~$31.8 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the impact of CL&P's base distribution rate increase ~~as a result of the PURA-approved rate case settlement that became~~ effective May 1, ~~2018 (a portion~~2019, which includes recovery of ~~which did~~storm costs and certain other items that do not impact ~~earnings).~~earnings, an NSTAR Electric base distribution rate increase effective January 1, 2020, and a PSNH temporary base distribution rate increase effective July 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.

Base natural gas distribution revenues increased $8.6 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to a base distribution rate increase at Yankee Gas effective January 1, 2020.

Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates through regulatory commission-approved cost tracking mechanisms and therefore, ~~have~~recovery of these costs has no impact on earnings. However, tracked revenues do include certain incentives earned, return on rate base, and carrying charges that are billed in rates to customers, which do impact earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply and natural gas supply procurement and other energy-related costs, electric retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), and additionally for NSTAR Electric, pension and PBOP benefits and net metering for distributed generation. In addition, tracked revenues include certain incentives earned and carrying charges that are billed in rates to customers. Tracked retail electric distribution revenues increased as a result of an increase in electric energy supply costs ($56.1 million), an increase in stranded cost recovery revenues ($23.5 million), and an increase in other distribution tracking mechanisms ($18.3 million), partially offset by a decrease in retail electric transmission charges ($31.8 million). Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various ~~counterparties, which decreased $7.0 million.~~counterparties.

~~Natural Gas Distribution Revenues:~~

~~Base natural gas~~Tracked distribution revenues ~~increased $20.2 million~~increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the ~~decoupled rate structure at Yankee Gas beginning November 15, 2018, which is seasonally structured~~following:



	Electric Distribution			Natural Gas Distribution
(Millions of Dollars)	Three Months Ended			Three Months Ended
Retail Tariff Tracked Revenues:
Energy supply procurement	$	(111.0	)	$	(27.9	)
Retail transmission	(13.3		)	N/A
Other distribution tracking mechanisms	12.4			10.8
Wholesale Market Sales Revenue	39.5			(8.5		)

The decrease in energy supply procurement within electric distribution was driven primarily by lower average sales volumes and ~~provides higher revenues in the winter heating months.~~

~~Tracked natural gas distribution revenues increased as a result of an increase in natural gas supply costs ($21.2 million) and an~~lower average prices. The increase in wholesale market sales revenue within electric distribution was due primarily to a new zero-carbon PPA entered into by CL&P in 2019, as required by regulation, from which the energy purchased from Millstone Nuclear Power Station (Millstone) was sold into the market beginning in the fourth quarter of ~~natural gas to third party suppliers ($3.9 million).~~2019.

Electric Transmission Revenues: Electric transmission revenues increased ~~$35.5~~$29.2 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to ~~ongoing investments~~continued investment in our transmission infrastructure.

Other Revenues and Eliminations: Other revenues primarily include the revenues of Eversource's service company, most of which are eliminated in consolidation. ~~Intercompany eliminations~~Eliminations are also primarily related to the Eversource electric transmission revenues that are derived

from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the

wholesale transmission ~~business, and revenues from Eversource's service company.~~business.

Purchased Power, Fuel and Transmission expense includes costs associated with purchasing electricity and natural gas on behalf of our customers. These electric and natural gas supply costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power, Fuel and Transmission expense ~~increased/(decreased)~~decreased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:


(Millions of Dollars)	Three Months Ended			Three Months Ended
Electric Distribution	$	60.4		$	(23.9	)
Natural Gas Distribution	25.6			(34.6		)
Transmission	(27.4		)	(14.3		)
Eliminations	(30.5		)	(25.6		)
Total Purchased Power, Fuel and Transmission	$	28.1		$	(98.4	)

The ~~increase~~decrease in purchased power expense at the electric distribution business for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, was driven primarily by ~~higher~~lower average sales volumes and lower average prices associated with the procurement of energy ~~supply.~~supply, partially offset by the impact of energy purchases from the new Millstone PPA. The ~~increase~~decrease in natural gas supply costs at our natural gas distribution business for the three months ended March 31, 2020, as compared to the same period in 2019, was due primarily to ~~higher~~lower average sales ~~volumes.~~volumes and prices.

The decrease in transmission costs for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, was primarily the result of a decrease in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers, and a decrease in costs billed by ISO-NE that support regional grid investments. This was partially offset by an increase in Local Network Service charges, which ~~reflect~~reflects the cost of transmission service provided by Eversource over our local transmission network.

Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense increased/(decreased) for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:


(Millions of Dollars)	Three Months Ended			Three Months Ended
Base Electric Distribution (Non-Tracked Costs):
Storm Restoration Costs				$	(8.6	)
Employee-related expenses, including labor and benefits	$	(12.4	)	(2.4		)
Operations-related expenses, including vegetation management, vehicles, and outside services (excluding storm restoration costs)	10.2
Operations-related expenses, including vegetation management, vehicles, and outside services				0.5
Shared corporate costs (including computer software depreciation at Eversource Service)				5.2
Other non-tracked operations and maintenance	0.3			3.4
Total Base Electric Distribution (Non-Tracked Costs)	(1.9		)	(1.9		)
Base Natural Gas Distribution (Non-Tracked Costs)	3.0			1.2
Water Distribution	0.8			(0.3		)
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution) - Increase due primarily to higher electric transmission expenses, partially offset by the absence in 2019 of PSNH generation operations expenses due to the 2018 sales of thermal and hydroelectric generation assets	9.3
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution) - Increase due primarily to higher electric transmission expenses and employee-related costs				10.7
Other and eliminations:
Eversource Parent and Other Companies - other operations and maintenance	20.6			26.5
Acquisition costs related to our planned purchase of the assets of CMA				4.9
Eliminations	(28.7		)	(34.6		)
Total Operations and Maintenance	$	3.1		$	6.5

Depreciation expense increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due ~~primarily~~ to higher utility plant in service balances and new depreciation rates effective with the CL&P distribution rate case settlement agreement. Partially offsetting these increases was lower depreciation expense at PSNH as a result of the sale of the thermal and hydroelectric generation assets in 2018.balances.

Amortization expense includes the deferral of energy supply, ~~and~~ energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms, and the amortization of certain ~~costs.~~costs as those costs are collected in rates. This deferral adjusts expense to match the corresponding revenues. Amortization increased for the three months ended March 31, 2019, as compared to the same period in 2018, due primarily to the deferral of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and the related rate changes to recover these costs. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. ~~In addition,~~Amortization decreased for the ~~increase includes amortization of PSNH's securitized regulatory asset of $10.6 million related~~three months ended March 31, 2020, as compared to the ~~2018 RRB issuance.~~same period in 2019, due primarily to the deferral of energy supply and energy-related costs and an increase in the recovery of PSNH storm costs.

Energy Efficiency Programs expense increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to higher spending for CL&P's ~~NSTAR Electric's~~ and PSNH's energy efficiency ~~programs.~~programs, partially offset by a decrease in spending on certain large energy efficiency projects in 2020 compared to 2019 at NSTAR Electric due to timing. The costs for the majority of the state energy policy initiatives and expanded energy efficiency programs are recovered from customers in rates and have no impact on earnings.

Taxes Other Than Income Taxes expense ~~increased~~decreased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to ~~higher~~a decrease of $10.7 million related to CL&P's remittance of energy efficiency funds to the State of Connecticut. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. The decrease is partially offset by an increase in property taxes as a result of higher utility plant in service balances and higher gross earnings taxes (the costs of which are tracked), partially offset by a decrease related to CL&P's future remittance of energy efficiency funds to the State of Connecticut (which totaled $10.7 million in the first three months of 2019, as compared to $12.7 million in the first three months of 2018) and a decrease in NSTAR Electric's property taxes due to a decrease in tax rates.balances.

Interest Expense increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to ~~interest expense on the 2018 PSNH RRB issuance ($5.4 million), an increase in interest on notes payable ($4.3 million) and~~ an increase in interest on long-term debt ~~($4.2 million)~~ as a result of new debt ~~issuances.~~issuances ($6.8 million). Partially offsetting ~~these increases~~this increase was an increase in AFUDC related to debt funds and other capitalized interest ($~~4.6~~3.1 million) and a decrease in interest on notes payable ($2.2 million).

Other Income, Net decreased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to ~~a decrease~~the absence in 2020 of the recognition of the equity component of the carrying charges related to PSNH storm costs recorded in interest income in 2019 ($5.2 million), and investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($5.5 million). Partially offsetting these decreases was an increase related to pension, SERP and PBOP non-service income components ($~~7.8~~5.3 million), partially offset by the recognition in the first quarter of 2019 of $5.2 million of the equity return component of the carrying charges related to storms incurred from December 2013 through April 2016 recorded in interest income at PSNH.

Income Tax Expense ~~decreased~~ increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to ~~amortization of EDIT~~higher pre-tax earnings ($~~8.1~~7.3 million), higher state taxes ($4.5 million), and by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~0.4~~3.1 million), partially offset by ~~higher pre-tax earnings~~an increase in share-based payment excess tax benefits ($~~8.1~~4.8 million)~~. The impact of the amortization of the EDIT regulatory liability, including the tax gross up portion, that reduced revenue is $11.2 million, offset by current tax benefit of $3.1 million~~ and an increase in amortization of EDIT ~~of $8.1 million for the first quarter ended March 31, 2019, which results in no impact on net income.~~($1.6 million).

RESULTS OF OPERATIONS –

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 included in this combined Quarterly Report on Form 10-Q:


	For the Three Months Ended March 31,																					For the Three Months Ended March 31,
	CL&P							NSTAR Electric							PSNH							CL&P							NSTAR Electric							PSNH
(Millions of Dollars)	2019		2018		Increase/ (Decrease)			2019		2018		Increase/ (Decrease)			2019		2018		Increase/ (Decrease)			2020		2019		Increase/ (Decrease)			2020		2019		Increase/ (Decrease)			2020		2019		Increase/ (Decrease)
Operating Revenues	$	849.2	$	785.0	$	64.2		$	797.6	$	770.1	$	27.5		$	276.4	$	267.4	$	9.0		$	899.7	$	849.2	$	50.5		$	733.8	$	797.6	$	(63.8	)	$	276.4	$	276.4	$	—
Operating Expenses:
Purchased Power, Fuel and Transmission	319.8		301.9		17.9			330.1		332.6		(2.5		)	113.5		109.7		3.8
Purchased Power and Transmission																						374.7		319.8		54.9			242.4		330.1		(87.7		)	94.1		113.5		(19.4		)
Operations and Maintenance	130.6		117.3		13.3			113.0		118.7		(5.7		)	52.6		51.4		1.2			135.6		130.6		5.0			122.3		113.0		9.3			47.1		52.6		(5.5		)
Depreciation	73.3		67.5		5.8			72.6		70.5		2.1			22.9		23.5		(0.6		)	78.4		73.3		5.1			78.3		72.6		5.7			24.3		22.9		1.4
Amortization of Regulatory Assets, Net	35.7		28.0		7.7			22.6		6.4		16.2			13.7		5.0		8.7			6.6		35.7		(29.1		)	27.0		22.6		4.4			20.1		13.7		6.4
Energy Efficiency Programs	26.0		22.8		3.2			76.7		74.8		1.9			6.7		5.2		1.5			35.5		26.0		9.5			68.7		76.7		(8.0		)	9.4		6.7		2.7
Taxes Other Than Income Taxes	92.0		90.3		1.7			44.8		48.1		(3.3		)	17.3		16.8		0.5			83.0		92.0		(9.0		)	48.8		44.8		4.0			19.8		17.3		2.5
Total Operating Expenses	677.4		627.8		49.6			659.8		651.1		8.7			226.7		211.6		15.1			713.8		677.4		36.4			587.5		659.8		(72.3		)	214.8		226.7		(11.9		)
Operating Income	171.8		157.2		14.6			137.8		119.0		18.8			49.7		55.8		(6.1		)	185.9		171.8		14.1			146.3		137.8		8.5			61.6		49.7		11.9
Interest Expense	35.8		36.8		(1.0		)	27.9		26.5		1.4			14.4		12.8		1.6			37.8		35.8		2.0			30.9		27.9		3.0			14.5		14.4		0.1
Other Income, Net	3.9		6.6		(2.7		)	11.1		12.6		(1.5		)	7.0		4.7		2.3			1.9		3.9		(2.0		)	12.2		11.1		1.1			3.2		7.0		(3.8		)
Income Before Income Tax Expense	139.9		127.0		12.9			121.0		105.1		15.9			42.3		47.7		(5.4		)	150.0		139.9		10.1			127.6		121.0		6.6			50.3		42.3		8.0
Income Tax Expense	29.4		28.4		1.0			27.0		28.0		(1.0		)	9.5		12.6		(3.1		)	31.3		29.4		1.9			27.2		27.0		0.2			10.7		9.5		1.2
Net Income	$	110.5	$	98.6	$	11.9		$	94.0	$	77.1	$	16.9		$	32.8	$	35.1	$	(2.3	)	$	118.7	$	110.5	$	8.2		$	100.4	$	94.0	$	6.4		$	39.6	$	32.8	$	6.8

Operating Revenues

Sales Volumes: A summary of our retail electric GWh sales volumes ~~was~~is as follows:


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
	2019	2018	Decrease		Percentage Decrease		2020	2019	Decrease		Percentage Decrease
CL&P	5,350	5,376	(26	)	(0.5	)%	4,941	5,350	(409	)	(7.6	)%
NSTAR Electric	5,833	5,874	(41	)	(0.7	)%	5,524	5,833	(309	)	(5.3	)%
PSNH	1,968	1,972	(4	)	(0.2	)%	1,906	1,968	(62	)	(3.2	)%

Fluctuations in retail electric sales volumes at PSNH impact earnings. For CL&P and NSTAR Electric, fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms.

Operating Revenues: Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased ~~$64.2~~$50.5 million at CL&P, ~~$27.5~~decreased $63.8 million at NSTAR Electric and ~~$9.0 million for~~was unchanged at PSNH, for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018.~~2019.

Base Distribution Revenues:

CL&P's distribution revenues increased ~~$19.6~~$13.4 million due primarily to the impact of its base distribution rate increase ~~as a result of the PURA-approved rate case settlement agreement that became~~ effective May 1, ~~2018 (a portion~~2019, which includes recovery of ~~which did~~storm costs and certain other items that do not impact ~~earnings).~~

earnings.

NSTAR Electric's distribution revenues ~~decreased $0.9~~increased $7.6 million due primarily to the impact of its ~~decoupled rate structure, which was effective February 1, 2018, partially offset by an increase to~~ base distribution ~~rates~~rate increase effective January 1, ~~2019.~~

2020.

PSNH's ~~base~~ distribution revenues ~~decreased $0.4~~increased $10.8 million due primarily to ~~lower demand revenues in~~ the ~~first quarter~~impact of its temporary base distribution rate increase effective July 1, 2019, ~~as compared to the same period in 2018.~~which includes recovery of storm costs and certain other items that do not impact earnings.

Tracked Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates through regulatory commission-approved cost tracking mechanisms and therefore, ~~have~~recovery of these costs has no impact on earnings. However, tracked revenues do include certain incentives earned, return on rate base, and carrying charges that are billed in rates to customers, which do impact earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply procurement and other energy-related costs, retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), and additionally for NSTAR Electric, pension and PBOP benefits and net metering for distributed generation. ~~In addition, tracked revenues include certain incentives earned and carrying charges that are billed in rates to customers.~~ Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties.

Tracked revenues increased/(decreased) for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:


(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Retail Tariff Tracked Revenues
Retail Tariff Tracked Revenues:
Energy supply procurement ⁽¹⁾	$	36.3		$	27.8		$	(8.0	)	$	(40.4	)	$	(57.1	)	$	(13.5	)
Retail transmission	(9.5		)	(13.9		)	(8.4		)	(10.5		)	(4.9		)	2.1
Stranded cost recovery	(2.9		)	0.8			25.6
Other distribution tracking mechanisms	5.0			11.0			2.3			30.4			(14.7		)	(3.3		)
Wholesale Market Sales Revenue	3.4			(0.5		)	(10.7		)	51.0			(10.0		)	(1.5		)


⁽¹⁾	~~The decrease at PSNH includes the absence in 2019 of the recovery of generation rate base return due to the sales of its thermal and hydroelectric generation assets in 2018.~~

The decrease in energy supply procurement reflects both lower average sales volumes and lower average prices for the three months ended March 31, 2020, as compared to the same period in 2019.

Revenues from CL&P's other distribution tracking mechanisms include higher earnings from its capital tracker mechanism due to increased electric system improvements. CL&P's wholesale market sales revenue increased due primarily to energy sold in the wholesale market resulting from energy purchased from the new Millstone PPA.

Transmission Revenues: Transmission revenues increased ~~$17.3~~$11.4 million at CL&P, ~~$8.8~~$12.3 million at NSTAR Electric, and ~~$9.4~~$5.5 million at PSNH ~~respectively,~~for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to ~~ongoing investments~~continued investment in our transmission infrastructure.

Eliminations: ~~Intercompany eliminations~~ Eliminations are primarily related to the Eversource electric transmission revenues that are derived

from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the

wholesale transmission business. The impact of eliminations decreased revenues by ~~$7.7~~$5.5 million at CL&P, ~~$5.4~~$8.0 million at NSTAR Electric and ~~$0.7~~$0.4 million at ~~PSNH.~~PSNH for the three months ended March 31, 2020, as compared to the same period in 2019.

Purchased Power ~~Fuel~~ and Transmission expense includes costs associated with purchasing electricity on behalf of CL&P, NSTAR Electric and PSNH's customers. These energy supply costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power ~~Fuel~~ and Transmission expense increased/(decreased) for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:


(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Purchased Power Costs	$	34.1		$	16.0		$	10.3		$	71.2		$	(74.7	)	$	(20.4	)
Transmission Costs	(8.5		)	(13.2		)	(5.7		)	(10.8		)	(4.9		)	1.4
Eliminations	(7.7		)	(5.3		)	(0.8		)	(5.5		)	(8.1		)	(0.4		)
Total Purchased Power, Fuel and Transmission	$	17.9		$	(2.5	)	$	3.8
Total Purchased Power and Transmission										$	54.9		$	(87.7	)	$	(19.4	)

Purchased Power Costs: Included in purchased power costs are the costs associated with providing electric generation service supply to all customers who have not migrated to third party ~~suppliers.~~suppliers and the cost of energy purchase contracts, as required by regulation.

The increase at CL&P was due primarily to ~~an increase in~~ the ~~price~~new Millstone PPA energy purchases, partially offset by lower average sales volumes and ~~volume~~lower average prices associated with the procurement of energy supply.

The decrease at both NSTAR Electric and PSNH was due primarily to lower average sales volumes of power procured on behalf of our ~~customers.~~customers, as well as lower average prices associated with the procurement of energy supply.

~~The increase at NSTAR Electric was due primarily to an increase in the price of power procured on behalf of our customers.~~

~~The increase at PSNH was due primarily to higher purchased power energy expenses that are recovered as a component of the Energy Service tracking mechanism.~~

Transmission Costs: Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.

The decrease in transmission costs at CL&P and NSTAR Electric ~~and PSNH~~ was due primarily to a ~~result of a decrease in~~reduction to the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers and a decrease in costs billed by ISO-NE that support regional grid investments. This was partially offset by an increase in Local Network Service charges, which ~~reflect~~reflects the cost of transmission service provided by Eversource over our local transmission network.

The increase in transmission costs at PSNH was primarily the result of an increase in Local Network Service charges. This was partially offset by a decrease in costs billed by ISO-NE that support regional grid investments.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense increased/(decreased) for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:


(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Base Electric Distribution (Non-Tracked Costs):
Storm restoration costs										$	(2.4	)	$	(4.4	)	$	(1.8	)
Employee-related expenses, including labor and benefits	$	(1.8	)	$	(9.8	)	$	(0.8	)	0.2			(3.0		)	0.4
Storm restoration costs	(4.4		)	2.2			1.0
Operations-related expenses, including vegetation management, vehicles, and outside services (excluding storm restoration costs)	5.1			—			5.1
Operations-related expenses, including vegetation management, vehicles, and outside services										3.7			0.8			(4.0		)
Shared corporate costs (including computer software depreciation at Eversource Service)										2.1			2.4			0.7
Other non-tracked operations and maintenance	3.4			(1.9		)	—			(2.1		)	4.3			1.2
Total Base Electric Distribution (Non-Tracked Costs)	2.3			(9.5		)	5.3			1.5			0.1			(3.5		)
Tracked Costs:
Absence in 2019 of PSNH generation operations expenses due to the 2018 sales of thermal and hydroelectric generation assets	—			—			(6.8		)
Transmission expenses	9.7			1.1			2.7			(0.1		)	4.2			(0.9		)
Other tracked operations and maintenance	1.3			2.7			—			3.6			5.0			(1.1		)
Total Tracked Costs	11.0			3.8			(4.1		)	3.5			9.2			(2.0		)
Total Operations and Maintenance	$	13.3		$	(5.7	)	$	1.2		$	5.0		$	9.3		$	(5.5	)

Depreciation ~~increased/(decreased)~~increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018, due primarily to the following:~~

~~The increase at~~2019, for CL&P, ~~was~~NSTAR Electric and PSNH due ~~primarily~~ to higher net plant in service ~~balances and the implementation of new depreciation rates effective with the CL&P distribution rate case settlement agreement.~~ balances.

~~The increase at NSTAR Electric was due primarily to higher depreciation rates on certain distribution property, partially offset by overall lower depreciation rates on remaining property.~~

~~The decrease at PSNH was due primarily to the sale of the thermal and hydroelectric generation assets in 2018.~~

Amortization of Regulatory Assets, Net expense includes the deferral of energy supply, ~~and~~ energy-related costs and other costs that are included in certain regulatory-approved cost tracking mechanisms, and the amortization of certain ~~costs.~~costs as those costs are collected in rates. This deferral adjusts expense to match the corresponding revenues. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization of Regulatory Assets, Net ~~increased at CL&P, NSTAR Electric and PSNH~~increased/decreased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:

The decrease at CL&P was driven primarily by the deferral ~~adjustment~~ of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. ~~Energy~~


•	The increase at NSTAR Electric was driven primarily by the deferral of energy supply and energy-related costs, and an increase in the recovery of costs associated with low-income customer programs.

The increase at PSNH was due primarily to the deferral of energy supply and energy-related costs, ~~are recovered from customers~~and an increase in ~~rates and have no impact on earnings. In addition, the increase at PSNH includes amortization of its securitized regulatory asset of $10.6 million related to the 2018 RRB issuance.~~storm cost recovery.

Energy Efficiency Programs expenseincludes costs ~~for~~of various state energy policy initiatives and expanded energy efficiency programs ~~the majority of which~~that are recovered from customers in rates, ~~and~~most of which have no impact on earnings. Energy Efficiency Programs expense~~increased~~increased/decreased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:

The increase at CL&P and PSNH was due to higher spending for ~~CL&P's, NSTAR Electric's and PSNH's~~ energy efficiency programs.

The decrease at NSTAR Electric was due to the timing of spending on certain large energy efficiency projects in 2020, as compared to 2019.

Taxes Other Than Income Taxes ~~increased~~/~~(decreased)~~increased/decreased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:

The ~~increase~~decrease at CL&P was related to a $10.7 million decrease in the remittance of energy efficiency funds to the State of Connecticut. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. The decrease was partially offset by higher property taxes as a result of higher utility plant balances.

The increases at NSTAR Electric and PSNH were due ~~primarily~~ to higher property taxes as a result of higher utility plant balances and higher gross earnings taxes (the costs of which are tracked), partially offset by a decrease related to CL&P's future remittance of energy efficiency funds to the State of Connecticut (which totaled $10.7 million in the first three months of 2019, as compared to $12.7 million in the first three months of 2018).balances.

~~The decrease at NSTAR Electric was due primarily to lower property taxes as a result of a decrease in tax rates.~~

Interest Expenseincreased at PSNH for the three months ended March 31, 2019, as compared to the same period in 2018, due primarily to interest on the 2018 RRB issuance ($5.4 million), partially offset by lower interest on long-term debt ($2.1 million) and lower interest on notes payable ($1.0 million).

~~Other Income, Net~~ ~~(decreased)/~~increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:

The increase at CL&P was due to higher interest on long-term debt ($3.5 million), partially offset by a decrease in interest expense on regulatory deferrals ($0.3 million) and an increase in AFUDC related to debt funds ($0.4 million).


•	Theincrease at NSTAR Electric was due to higher interest on long-term debt ($3.1 million).

Other Income, Net increased/decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

The decrease at CL&P was due ~~primarily~~ to ~~a decrease~~investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($5.1 million), partially offset by an increase related to pension, SERP and PBOP non-service income components ($~~3.6~~1.7 million) and an increase in AFUDC related to equity funds ($1.3 million).

The increase at ~~PSNH~~NSTAR Electric was due to ~~the recognition~~an increase in ~~the first quarter of 2019 of $5.2 million of the equity return component of the carrying charges~~AFUDC related to ~~storms incurred from December 2013 through April 2016 recorded in interest income, partially offset by a decrease~~equity funds ($1.0 million) and an increase related to pension, SERP and PBOP non-service income components ($~~1.8~~0.9 million), partially offset by investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($1.0 million).

The decrease at PSNH was due to the absence in 2020 of the recognition of the equity component of the carrying charges related to storm costs recorded in interest income in 2019 ($5.2 million) and investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($0.9 million). Partially offsetting these decreases were an increase related to pension, SERP and PBOP non-service income components ($1.4 million) and an increase in AFUDC related to equity funds ($1.3 million).

Income Tax Expense ~~increased/(decreased)~~ increased for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the following:

The increase at CL&P was due ~~primarily~~ to higher pre-tax earnings ($~~2.8~~2.0 million), ~~partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences~~higher state taxes ($~~1.8~~1.0 million).

The decrease at NSTAR Electric was due primarily to amortization of EDIT ($4.9 million), partially offset by higher pre-tax earnings ($3.5 million) and by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.4 million). The impact of the amortization of the EDIT regulatory liability, including the tax gross up portion, that reduced revenue is $6.8 million, offset by current tax benefit of $1.9 million and amortization of EDIT of $4.9 million for the first quarter ended March 31, 2019, which results in no impact on net income.

~~The decrease at PSNH was due primarily to lower pre-tax earnings ($1.4 million), amortization of EDIT ($1.3 million),~~ and items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~0.4~~0.5 million)~~. The impact of the amortization of the EDIT regulatory liability, including the tax gross up portion, that reduced revenue is $1.8 million,~~, partially offset by ~~current~~an increase in share-based payment excess tax ~~benefit of $0.5 million~~benefits ($1.6 million).

The increase at NSTAR Electric was due to higher pre-tax earnings ($1.2 million), higher state taxes ($0.5 million) and ~~amortization of EDIT of $1.3 million for the first quarter ended March 31, 2019, which results~~flow-through items and permanent differences ($0.2 million), partially offset by an increase in ~~no impact on net income.~~share-based payment excess tax benefits ($1.7 million).

The increase at PSNH was due to higher pre-tax earnings ($1.9 million) and higher state taxes ($0.5 million), partially offset by an increase in share-based payment excess tax benefits ($0.6 million) and flow-through items and permanent differences ($0.6 million).

EARNINGS SUMMARY

CL&P's earnings increased ~~$11.9~~$8.2 millionfor the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to the ~~impact of the CL&P~~ base distribution rate increase effective May 1, ~~2018~~2019, higher earnings from its capital tracker mechanism, and an increase in transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by ~~lower non-service~~investment loss in 2020 compared to investment income ~~from our benefit plans,~~in 2019 driven by market volatility, higher depreciation expense, higher operations and maintenance expense, and higher ~~property and other tax~~interest expense.

NSTAR Electric's earnings increased ~~$16.9~~$6.4 million for the three months ended March 31, ~~2019,~~2020, as compared to the same period in ~~2018,~~2019, due primarily to ~~lower operations~~the base distribution rate increase effective January 1, 2020 and ~~maintenance~~an increase in transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by higher interest expense, higher depreciation expense, and higher property tax expense.

PSNH's earnings increased $6.8 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the temporary base distribution rate increase effective July 1, 2019, an increase in transmission earnings driven by a higher transmission rate base, and lower ~~property and other tax expense.~~

PSNH's earnings decreased $2.3 million for the three months ended March 31, 2019, as compared to the same period in 2018, due primarily to the absence in 2019 of generation earnings as a result of thermal and hydroelectric generation asset sales in 2018, higher operations and maintenance ~~expense, and higher property and other tax~~ expense. The earnings ~~decrease~~increase was partially offset by the absence of the first quarter 2019 recognition ~~in 2019~~ of carrying charges on its 2013 through 2016 storm costs approved for ~~recovery and an increase in transmission earnings driven by a higher transmission rate base.~~recovery.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of ~~$198.3~~$132.2 million for the three months ended March 31, ~~2019,~~2020, as compared to ~~$64.7~~$198.3 million in the same period of ~~2018.~~2019. The ~~increase~~decrease in operating cash flows was due primarily to the timing of ~~accounts payable~~ cash payments ~~the absence in 2019 of cash payments of $82.3 million in pension contributions, and approximately $21 million of storm restoration cost payments~~ made ~~in the first quarter of 2018.~~on our accounts payable. Partially offsetting ~~these increases were~~this unfavorable impact was the timing of cash collections for regulatory tracking mechanisms, ~~and~~ the timing of ~~cash~~ collections on our accounts receivable, ~~and~~the timing of other working capital ~~items.~~items and lower income tax refunds received of $5.2 million in 2020.

NSTAR Electric had cash flows provided by operating activities of ~~$137.0~~$61.7 million for the three months ended March 31, ~~2019,~~2020, as compared to ~~$136.5~~$137.0 million in the same period of ~~2018.~~2019. The increase in operating cash flows was due primarily to $46 million of cash payments made in 2018 for storm restoration costs, income tax refunds received in the first quarter of 2019 of $27.8 million, compared to income tax payments of $8.8 million in the first quarter of 2018, and the timing of cash collections on our accounts receivables. Partially offsetting these increases were the timing of accounts payable cash payments and the timing of collections for regulatory tracking mechanisms.

~~PSNH had cash flows provided by operating activities of $132.6 million for the three months ended March 31, 2019, as compared to $96.2 million in the same period of 2018. The increase~~decrease in operating cash flows was due primarily to the timing of cash collections on our accounts receivable, the timing of cash payments made on our accounts payable ~~cash payments~~ and ~~income tax refunds of $20.3 million in the first quarter of 2019, as compared to income tax refunds of $4.4 million in the same period in 2018. Partially offsetting these increases were~~other working capital items, and the timing of collections for regulatory tracking ~~mechanisms and collections and~~mechanisms. In addition, there were lower income tax refunds received of $13.2 million in 2020.

PSNH had cash flows provided by operating activities of $58.5 million for the three months ended March 31, 2020, as compared to $86.1 million in the same period of 2019. The decrease in operating cash flows was due primarily to income tax payments of $1.2 million in the first quarter of 2020, as compared to income tax refunds received of $20.3 million in the same period in 2019, and the timing of cash payments made on our ~~other working capital items.~~accounts payable.

For further information on CL&P's, NSTAR Electric's and PSNH's liquidity and capital resources, see "Liquidity" and "Business Development and Capital Expenditures" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.


ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Information

Commodity Price Risk Management: Our regulated companies enter into energy contracts to serve our customers, and the economic impacts of those contracts are passed on to our customers. Accordingly, the regulated companies have no exposure to loss of future earnings or fair values due to these market risk-sensitive instruments. Eversource's Energy Supply Risk Committee, comprised of senior officers, reviews and approves all large-scale energy related transactions entered into by its regulated companies.

Other Risk Management Activities

Interest Rate Risk Management: We manage our interest rate risk exposure in accordance with our written policies and procedures.

Credit Risk Management: Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of our contractual obligations. We serve a wide variety of customers and transact with suppliers that include IPPs, industrial companies, natural gas and electric utilities, oil and natural gas producers, financial institutions, and other energy marketers. Margin accounts exist within this diverse group, and we realize interest receipts and payments related to balances outstanding in these margin accounts. This wide customer and supplier mix generates a need for a variety of contractual structures, products and terms that, in turn, require us to manage the portfolio of market risk inherent in those transactions in a manner consistent with the parameters established by our risk management process.

Our regulated companies are subject to credit risk from certain long-term or high-volume supply contracts with energy marketing companies. Our regulated companies manage the credit risk with these counterparties in accordance with established credit risk practices and monitor contracting risks, including credit risk. As of March 31, ~~2019,~~2020, our regulated companies held collateral ~~in the form of letters~~(letters of credit or cash) of ~~$5.0~~$15.0 million from counterparties related to our standard service contracts. As of March 31, ~~2019,~~2020, Eversource had ~~$24.8~~$19.3 million of cash posted with ISO-NE related to energy transactions.

We have provided additional disclosures regarding interest rate risk management and credit risk management in Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," in Eversource's ~~2018~~2019 Form 10-K, which is incorporated herein by reference. There have been no additional risks identified and no material changes with regard to the items previously disclosed in the Eversource ~~2018~~2019 Form 10-K.


ITEM 4.	CONTROLS AND PROCEDURES

Management, on behalf of Eversource, CL&P, NSTAR Electric and PSNH, evaluated the design and operation of the disclosure controls and procedures as of March 31, ~~2019~~2020 to determine whether they are effective in ensuring that the disclosure of required information is made timely and in accordance with the Securities Exchange Act of 1934 and the rules and regulations of the SEC. This evaluation was made under management's supervision and with management's participation, including the principal executive officer and principal financial officer as of the end of the period covered by this Quarterly Report on Form 10-Q. There are inherent limitations of disclosure controls and procedures, including the possibility of human error and the circumventing or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. The principal executive officer and principal financial officer have concluded, based on their review, that the disclosure controls and procedures of Eversource, CL&P, NSTAR Electric and PSNH are effective to ensure that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and regulations and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

There have been no changes in internal controls over financial reporting for Eversource, CL&P, NSTAR Electric and PSNH during the quarter ended March 31, ~~2019~~2020 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

PART II. OTHER INFORMATION


ITEM 1.	LEGAL PROCEEDINGS

We are parties to various legal proceedings. We have disclosed ~~these~~certain legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our ~~2018~~2019 Form 10-K. These disclosures are incorporated herein by reference.

As previously disclosed, on May 22, 2017, each of the Yankee Companies filed subsequent lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies sought monetary damages totaling $104.4 million for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2013 to 2016 (“DOE Phase IV”). On February 21, 2019, the Yankee Companies received a partial summary judgment and partial final judgment in their favor for the undisputed amount of monetary damages of $103.2 million. The court awarded CYAPC, YAEC and MYAPC damages of $40.7 million, $28.1 million and $34.4 million, respectively. The DOE did not appeal the court's judgment and the decision became final on April 23, 2019. The DOE Phase IV trial for the $1.2 million of remaining damages is expected to begin in June 2019. For a further discussion of the ~~Yankee Companies v. U.S. Department of Energy,~~ ~~see Part I, Item 3, “Legal Proceedings” of our 2018 Form 10-K.~~

~~Other than as set forth above, there~~There have been no ~~additional~~ material legal proceedings identified and no ~~further~~ material changes with regard to the legal proceedings previously disclosed in our ~~2018~~2019 Form 10-K.


ITEM 1A.	RISK FACTORS

We are subject to a variety of significant risks in addition to the matters set forth under our forward-looking statements section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Quarterly Report on Form 10-Q. We have identified a number of these risk factors in Part I, Item 1A, "Risk Factors," in our ~~2018~~2019 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. ~~There~~The following risk factor should be read in conjunction with the risk factors described in the 2019 Form 10-K.

The global pandemic of the 2019 novel coronavirus (COVID-19) has resulted in widespread disruption to the many systems and processes of daily life, as well as the overall economic market and outlook, which could cause various unfavorable impacts to our customers, vendors, employees, regulators, and operations and could adversely affect our financial position, results of operations and cash flows.

We are responding to COVID-19 by taking steps to mitigate the potential risks to Eversource posed by its spread. We provide a critical service to our customers, which means it is paramount that we keep our employees who operate our businesses safe and minimize unnecessary risk of exposure to COVID-19. We have updated and implemented our company-wide pandemic plan to address specific aspects of the COVID-19 pandemic. This plan guides our emergency response, business continuity, and the precautionary measures we are taking on behalf of employees and the public. As part of our pandemic plan, we are taking extra precautions to mitigate an adverse material impact to the following risk factors that we believe could continue to be impacted by COVID-19:

•

Cybersecurity attacks: We have seen an increase in perimeter scanning for vulnerabilities, which can be leveraged to compromise a system, as well as phishing attempts targeted at our employees by outside parties to gain control of our systems and network. We continue to implement strong cybersecurity measures and educate our employees to ensure that our systems remain functional in order to both serve our operational needs with a remote workforce and keep them running to ensure uninterrupted service to our customers.

•

Access to, or cost of, capital resources: We utilize the commercial paper market extensively for our short-term borrowing needs. At the onset of the pandemic in the United States, there had been reduced liquidity in the commercial paper credit market. However, federal legislative actions, as well as increased liquidity and the reduction in the federal funds rate by the Federal Reserve, have enabled the credit markets to function. We continue to monitor the ability for us to access the global capital and credit markets; however, we may find it difficult in the future should the economic slowdown continue.

•

Actions of regulators: In Connecticut, Massachusetts and New Hampshire, there is presently a moratorium on disconnections of residential and commercial customers for non-payment. We also eliminated late payment charges across all our operating companies. We are working closely with our state regulatory commissions and consumer advocates to develop several customer assistance measures, including more flexible and new payment plan options in order to mitigate the impact on customer rates in the future, as well as financial hardship and arrearage management programs for those customers who are unable to pay their utility bills. We are developing these long-term solutions for customers in order to help minimize the extent of the impact of COVID-19 on customer receivable balances and customers’ affordability in light of the current financial impact they may experience. We believe that we will be able to develop a successful structure with our state regulatory commissions to recover our costs associated with COVID-19, while balancing the impact on our customers’ bills.

•

Timing of strategic development opportunities: The successful execution of our timeline for developing our offshore wind projects is based on several factors, including state and federal siting and permitting approvals. Currently, there are delays in New York state for performing offshore site investigations, and onshore environmental and geotechnical surveys, which could have an impact on our project siting and permit filing timelines. On April 8, 2020, the state of New York Administrative Law Judge granted a ten-week delay until September 30, 2020 to the start of the South Fork Wind evidentiary hearing schedule due to ongoing COVID-19 work and travel restrictions. At this time, although we are unable to predict the impact of delays on our offshore wind projects, we are currently developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects.


•	Suppliers and Vendors: We have instituted measures to ensure our supply chain remains open to us; however, there could be global shortages that will impact our maintenance, capital programs, and storm response that we currently cannot anticipate.

•

Loss of key personnel: We continue to adjust our pandemic plan to assume various scenarios including reduced workforce levels and limited mutual aid in the event of a significant storm event. We have implemented remote work arrangements for our workforce by enabling nearly half of our employees to work from home and taking extra precautions for our field-based employees. We have taken significant safety measures to ensure adequate social distancing for our field crews to safely provide essential services to our customers. We have also adopted protocols to ensure the safety and health of those employees who work onsite in critical facilities. We continue to monitor COVID-19 developments affecting our workforce and will take additional precautions that we determine are necessary in order to mitigate the impacts.

Although to date our workforce continues to be able to safely and reliably deliver our critical services to customers, we are unable to predict the extent of the impact of COVID-19 on our employees.

•

Impact to Benefit Plans: As of March 31, 2020, under the Pension Protection Act, the funded status of our pension plan was approximately 100 percent, as compared to 111 percent as of December 31, 2019. The pension and PBOP plans' funded status is highly dependent on benefit plan asset returns, interest rates, and discount rates, all of which could be materially impacted by the extended economic slowdown. Should these financial metrics be negatively impacted by COVID-19 as of December 31, 2020, it could result in the underperformance of our pension and PBOP plan investments, an increase in pension and PBOP obligations and employee benefit plan costs, and in a minimum pension funding requirement due by March 31, 2022 for the 2021 Plan year. We continue to monitor federal legislative pension developments that could provide additional pension funding relief.

We currently cannot estimate the potential impact of COVID-19 to our financial position, results of operations and cash flows.

Other than as set forth above, there have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our ~~2018~~2019 Form 10-K.


ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table discloses purchases of our common shares made by us or on our behalf for the periods shown below. The common shares purchased consist of open market purchases made by the Company or an independent agent. These share transactions related to ~~shares awarded under the Company's dividend reinvestment plan and~~ matching contributions under the Eversource 401k Plan.

Period
Total Number of
Shares Purchased
Average Price
Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2019 966
$ 64.14
—
—
February 1 - February 28, 2019 —
—
—
—
March 1 - March 31, 2019 2,756
70.49
—
—
Total 3,722
$ 68.84
—
—



Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2020	—	$	—	—	—
February 1 - February 29, 2020	—	—		—	—
March 1 - March 31, 2020	2,428	79.71		—	—
Total	2,428	$	79.71	—	—


ITEM 6.	EXHIBITS

Each document described below is filed herewith, unless designated with an asterisk (*), which exhibits are incorporated by reference by the registrant under whose name the exhibit appears.



	Exhibit No.	Description

	Listing of Exhibits (Eversource)
*	4	Twelfth Supplemental Indenture between Eversource Energy and The Bank of New York Trust Company N.A., as Trustee, dated as of January 1, 2020, relating to $350 million of Senior Notes, Series P, Due 2050 (Exhibit 4.1, Eversource Energy Current Report on Form 8-K filed January 16, 2020, File No. 001-05324)

	31	Certification by the Chief Executive Officer of Eversource Energy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	31.1	Certification by the Chief Financial Officer of Eversource Energy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	32	Certification by the Chief Executive Officer and Chief Financial Officer of Eversource Energy pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	Listing of Exhibits (CL&P)
*	~~4.1~~	~~Supplemental Indenture (2019 Series A Bonds) between CL&P and Deutsche Bank Trust Company Americas, as Trustee dated as of March 1, 2019 (Exhibit 4.1, CL&P Current Report on Form 8-K field on April 4, 2019, File No. 000-00404~~)

	31	Certification by the Chairman of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	31.1	Certification by the Chief Financial Officer of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	32	Certification by the Chairman and the Chief Financial Officer of The Connecticut Light and Power Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	Listing of Exhibits (NSTAR Electric Company)
*	4	Form of 3.95% Debenture due 2030 (Exhibit 4, NSTAR Electric Company Current Report on Form 8-K filed on March 26, 2020, File No. 001-02301)

	31	Certification by the Chairman of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	31.1	Certification by the Chief Financial Officer of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	32	Certification by the Chairman and the Chief Financial Officer of NSTAR Electric Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	Listing of Exhibits (PSNH)
	31	Certification by the Chairman of Public Service Company of New Hampshire pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	31.1	Certification by the Chief Financial Officer of Public Service Company of New Hampshire pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	32	Certification by the Chairman and the Chief Financial Officer of Public Service Company of New Hampshire pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	Listing of Exhibits (Eversource, CL&P, NSTAR Electric, PSNH)
	101.INS	Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document

	101.SCH	Inline XBRL Taxonomy Extension Schema

	101.CAL	Inline XBRL Taxonomy Extension Calculation

	101.DEF	Inline XBRL Taxonomy Extension Definition



	101.LAB		Inline XBRL Taxonomy Extension Labels

	101.PRE		Inline XBRL Taxonomy Extension Presentation

	104		The cover page from the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	EVERSOURCE ENERGY

May ~~7, 2019~~8, 2020	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE



	THE CONNECTICUT LIGHT AND POWER COMPANY

May ~~7, 2019~~8, 2020	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE



	NSTAR ELECTRIC COMPANY

May ~~7, 2019~~8, 2020	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE



	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

May ~~7, 2019~~8, 2020	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

5662



	Total Provision for Uncollectible Accounts				Provision for Uncollectible Hardship Accounts
(Millions of Dollars)	As of March 31, 2019		As of December 31, 2018		As of March 31, 2019		As of December 31, 2018
Eversource	$	223.3	$	212.7	$	134.6	$	131.5
CL&P	93.0		88.0		75.2		71.9
NSTAR Electric	74.8		74.5		40.9		42.5
PSNH	11.0		11.1		—		—



	For the Three Months Ended
	March 31, 2019										March 31, 2018
(Millions of Dollars)	Eversource		CL&P			NSTAR Electric			PSNH		Eversource		CL&P			NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components	$	7.4	$	(0.6	)	$	7.0		$	0.5	$	15.2	$	3.0		$	8.4	$	2.3
AFUDC Equity	10.9		2.6			4.0			0.2		9.7		2.8			3.4		—
Equity in Earnings	5.0		—			0.2			—		4.6		—			—		—
Investment Income/(Loss)	1.2		1.7			(0.3		)	0.4		0.7		(0.1		)	0.6		—
Interest Income ⁽¹⁾	6.5		0.4			0.2			5.9		3.5		0.9			0.2		2.4
Other	—		(0.2		)	—			—		0.1		—			—		—
Total Other Income, Net	$	31.0	$	3.9		$	11.1		$	7.0	$	33.8	$	6.6		$	12.6	$	4.7



(Millions of Dollars)	As of March 31, 2019		As of March 31, 2018
Eversource	$	336.3	$	274.4
CL&P	121.9		117.7
NSTAR Electric	83.2		59.5
PSNH	30.4		36.0



(Millions of Dollars)	Issue Date	Issuance/(Repayment)			Maturity Date	Use of Proceeds for Issuance/ Repayment Information
CL&P:
4.00% 2018 Series A First Mortgage Bonds ⁽¹⁾	April 2019	$	300.0		April 2048	Repaid short-term borrowings that were used to repay long-term debt that matured on February 1, 2019 and fund capital expenditures and working capital
5.50% 2009 Series A First Mortgage Bonds	February 2009	(250.0		)	February 2019	Repaid at maturity on February 1, 2019



		As of March 31, 2019
(Millions of Dollars)	Balance Sheet Classification	Eversource		CL&P		NSTAR Electric		PSNH
Operating Leases:
Operating Lease Right-of-use-Assets, Net	Other Long-Term Assets	$	56.7	$	0.5	$	25.1	$	0.5
Operating Lease Liabilities
Operating Lease Liabilities - Current Portion	Other Current Liabilities	$	9.2	$	0.3	$	0.8	$	0.1
Operating Lease Liabilities - Long-Term	Other Long-Term Liabilities	47.5		0.2		24.3		0.4
Total Operating Lease Liabilities		$	56.7	$	0.5	$	25.1	$	0.5
Finance Leases:
Finance Lease Right-of-use-Assets, Net	Property, Plant and Equipment, Net	$	8.8	$	2.9	$	3.5	$	0.9
Finance Lease Liabilities
Finance Lease Liabilities - Current Portion	Other Current Liabilities	$	1.9	$	1.5	$	—	$	0.1
Finance Lease Liabilities - Long-Term	Other Long-Term Liabilities	9.1		2.7		4.5		0.8
Total Finance Lease Liabilities		$	11.0	$	4.2	$	4.5	$	0.9



	Operating Leases								Finance Leases
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
April 1, 2019 through December 31, 2019	$	8.3	$	0.2	$	1.4	$	0.1	$	2.5	$	1.5	$	0.4	$	0.1
Year Ending December 31,
2020	9.6		0.2		1.6		0.1		3.4		2.0		0.5		0.1
2021	8.7		—		1.6		0.1		2.9		1.5		0.5		0.1
2022	7.3		—		1.6		0.1		1.5		—		0.6		0.1
2023	4.8		—		1.6		0.1		0.7		—		0.6		0.1
2024	2.8		—		1.7		0.1		0.7		—		0.6		0.1
Thereafter	29.7		0.1		29.4		0.1		13.2		—		12.8		0.4
Future lease payments	71.2		0.5		38.9		0.7		24.9		5.0		16.0		1.0
Less amount representing interest	14.5		—		13.8		0.2		13.9		0.8		11.5		0.1
Present value of future minimum lease payments	$	56.7	$	0.5	$	25.1	$	0.5	$	11.0	$	4.2	$	4.5	$	0.9



Operating Leases (Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2019	$	11.5	$	1.5	$	7.2	$	0.5
2020	9.8		1.4		6.0		0.4
2021	8.7		1.2		5.3		0.4
2022	7.2		1.1		4.4		0.4
2023	4.7		0.5		3.1		0.2
Thereafter	32.7		0.2		29.5		0.3
Future minimum lease payments	$	74.6	$	5.9	$	55.5	$	2.2



Capital Leases (Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2019	$	3.4	$	2.0	$	0.5	$	0.1
2020	3.4		2.0		0.5		0.1
2021	2.9		1.5		0.5		0.1
2022	1.5		—		0.6		0.1
2023	0.7		—		0.6		0.1
Thereafter	13.9		—		13.4		0.5
Future minimum lease payments	25.8		5.5		16.1		1.0
Less amount representing interest	13.8		1.0		12.4		0.1
Present value of future minimum lease payments	$	12.0	$	4.5	$	3.7	$	0.9



	Shares
			Authorized as of March 31, 2019 and December 31, 2018	Issued as of
	Par Value		Authorized as of March 31, 2019 and December 31, 2018	March 31, 2019	December 31, 2018
Eversource	$	5	380,000,000	333,878,402	333,878,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	200	200
PSNH	$	1	100,000,000	301	301