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eversourcelogo.jpges-20210331_g1.jpg

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended
March 31, 20202021
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

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $5.00 par value per shareESNew 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.
YesNo
☒☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted 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 such files).
YesNo
☒☐

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 EnergyLarge accelerated filer☒
Accelerated

filer
☐
Non-accelerated

filer
☐Smaller reporting company☐Emerging growth company☐
The Connecticut Light and Power CompanyLarge accelerated filer☐
Accelerated

filer
☐Non-accelerated filer☒Smaller reporting company☐Emerging growth company☐
NSTAR Electric CompanyLarge accelerated filer☐
Accelerated

filer
☐Non-accelerated filer☒Smaller reporting company☐Emerging growth company☐
Public Service Company of New HampshireLarge accelerated filer☐
Accelerated

filer
☐Non-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):
YesNo
Eversource Energy☐☒
The Connecticut Light and Power Company☐☒
NSTAR Electric Company☐☒
Public Service Company of New Hampshire☐☒

Indicate the number of shares outstanding of each of the registrant'sissuer's classes of common stock, as of the latest practicable date:
date.
Company - Class of StockOutstanding as of April 30, 20202021
Eversource Energy Common Shares, $5.00 par value336,442,541343,466,162 
shares
The Connecticut Light and Power Company Common Stock, $10.00 par value6,035,205
shares
NSTAR Electric Company Common Stock, $1.00 par value200
shares
Public Service Company of New Hampshire Common Stock, $1.00 par value301
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 CompanyEversource Energy and subsidiaries
Eversource parent or ES parentEversource Energy, a public utility holding company
ES parent and other companiesES 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&PThe Connecticut Light and Power Company
NSTAR ElectricNSTAR Electric Company
PSNHPublic Service Company of New Hampshire
PSNH FundingPSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH
NSTAR GasNSTAR Gas Company
EGMAEversource Gas Company of Massachusetts
Yankee GasYankee Gas Services Company
AquarionEversource Aquarion Holdings, Inc.Company and its subsidiaries
NPTNorthern Pass Transmission LLC
Northern PassThe HVDChigh-voltage direct current (HVDC) and associated alternating-current transmission line project from Canada into New Hampshire
HEECHarbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric
Eversource ServiceEversource Energy Service Company
Bay State WindBay State Wind LLC, an offshore wind business being developed jointly by Eversource and Denmark-based Ørsted, which holds the Sunrise Wind project
North East OffshoreNorth East Offshore, LLC, an offshore wind business holding company being developed jointly by Eversource and Denmark-based Ørsted, which holds the Revolution Wind and South Fork Wind projects
CYAPCConnecticut Yankee Atomic Power Company
MYAPCMaine Yankee Atomic Power Company
YAECYankee Atomic Electric Company
Yankee CompaniesCYAPC, YAEC and MYAPC
Regulated companiesThe 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 and EGMA, NPT, Aquarion, and the solar power facilities of NSTAR Electric
Regulators:Regulators and Government Agencies:
DEEPBOEMU.S. Bureau of Ocean Energy Management
DEEPConnecticut Department of Energy and Environmental Protection
DOEU.S. Department of Energy
DOERMassachusetts Department of Energy Resources
DPUMassachusetts Department of Public Utilities
EPAU.S. Environmental Protection Agency
FERCFederal Energy Regulatory Commission
ISO-NEISO New England, Inc., the New England Independent System Operator
MA DEPMassachusetts Department of Environmental Protection
NHPUCNew Hampshire Public Utilities Commission
PURAConnecticut Public Utilities Regulatory Authority
SECU.S. Securities and Exchange Commission
SJCSupreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
ADITAccumulated Deferred Income Taxes
AFUDCAllowance For Funds Used During Construction
AOCIAccumulated Other Comprehensive Income
AROAsset Retirement Obligation
BcfBillion cubic feet
C&LMCfDConservation and Load Management
CfDContract for Differences
CTACompetitive Transition Assessment
CWIPConstruction Work in Progress
EDCElectric distribution company
i

EDITExcess Deferred Income Taxes
EPSEarnings Per Share
ERISAEmployee Retirement Income Security Act of 1974

i


ESOP
ESOPEmployee Stock Ownership Plan
Eversource 20192020 Form 10-KThe Eversource Energy and Subsidiaries 20192020 combined Annual Report on Form 10-K as filed with the SEC
FitchFitch Ratings
FMCCFederally Mandated Congestion Charge
FTRGAAPFinancial Transmission Rights
GAAPAccounting principles generally accepted in the United States of America
GSCGeneration Service Charge
GSRPGWhGreater Springfield Reliability ProjectGigawatt-Hours
GWhIPPGigawatt-Hours
HQHydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDCHigh-voltage direct current
Hydro Renewable EnergyHydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec
IPPIndependent Power Producers
ISO-NE TariffISO-NE FERC Transmission, Markets and Services Tariff
kVKilovolt
kVaKilovolt-ampere
kWKilowatt (equal to one thousand watts)
LBRLNGLost Base Revenue
LNGLiquefied natural gas
LRSSupplier of last resort service
MGMillion gallons
MGPManufactured Gas Plant
MMBtuOne million British thermal units
MMcfMillion cubic feet
Moody'sMoody's Investors Services, Inc.
MWMegawatt
MWhMegawatt-Hours
NEEWSNETOsNew England East-West Solution
NETOsNew England Transmission Owners (including Eversource, National Grid and Avangrid)
OCIOther Comprehensive Income/(Loss)
PAMPension and PBOP Rate Adjustment Mechanism
PBOPPostretirement Benefits Other Than Pension
PBOP PlanPostretirement Benefits Other Than Pension Plan
Pension PlanSingle uniform noncontributory defined benefit retirement plan
PPAPower purchase agreement
RECsRenewable Energy Certificates
Regulatory ROEThe average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment
ROEReturn on Equity
RRBsRate Reduction Bonds or Rate Reduction Certificates
RSUsRestricted share units
S&PStandard & Poor's Financial Services LLC
SBCSystems Benefits Charge
SCRCStranded Cost Recovery Charge
SERPSupplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SSStandard service
TCAMUITransmission Cost Adjustment Mechanism
TSATransmission Service Agreement
UIThe United Illuminating Company
VIEVariable Interest Entity


ii



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)
1
2
Condensed Consolidated Statements of Comprehensive Income
2
Condensed Consolidated Statements of Common Shareholders' Equity
3
4
The Connecticut Light and Power Company (Unaudited)
5
6
Condensed Statements of Comprehensive Income
6
Condensed Statements of Common Stockholder's Equity
7
8
NSTAR Electric Company and Subsidiary (Unaudited)
9
10
Condensed Consolidated Statements of Comprehensive Income
10
Condensed Consolidated Statements of Common Stockholder's Equity
11
12
Public Service Company of New Hampshire and Subsidiaries (Unaudited)
13
14
Condensed Consolidated Statements of Comprehensive Income
14
Condensed Consolidated Statements of Common Stockholder's Equity
15
16
17
Eversource Energy and Subsidiaries
3736
The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary,, and
Public Service Company of New Hampshire and SubsidiarSubsidiaries
51
ITEM 3.
Quantitative and Qualitative Disclosures About Market Risk
5755
5755
PART II – OTHER INFORMATION
5856
ITEM 1A.
Risk Factors
Risk Factors56
58
ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds
5956
6057
SIGNATURES
6258

iii



EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of March 31, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$34,112 $106,599 
Receivables, Net (net of allowance for uncollectible accounts of $391,663
   and $358,851 as of March 31, 2021 and December 31, 2020, respectively
1,290,200 1,195,925 
Unbilled Revenues194,673 233,025 
Fuel, Materials, Supplies and REC Inventory308,093 265,599 
Regulatory Assets1,081,074 1,076,556 
Prepayments and Other Current Assets238,727 252,439 
Total Current Assets3,146,879 3,130,143 
Property, Plant and Equipment, Net31,265,819 30,882,523 
Deferred Debits and Other Assets:  
Regulatory Assets5,431,459 5,493,330 
Goodwill4,453,055 4,445,988 
Investments in Unconsolidated Affiliates1,139,636 1,107,143 
Marketable Securities447,320 456,617 
Other Long-Term Assets634,047 583,854 
Total Deferred Debits and Other Assets12,105,517 12,086,932 
Total Assets$46,518,215 $46,099,598 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable$1,872,444 $1,249,325 
Long-Term Debt – Current Portion1,211,191 1,053,186 
Rate Reduction Bonds – Current Portion43,210 43,210 
Accounts Payable1,060,867 1,370,647 
Regulatory Liabilities520,833 389,430 
Other Current Liabilities830,399 809,214 
Total Current Liabilities5,538,944 4,915,012 
Deferred Credits and Other Liabilities:  
Accumulated Deferred Income Taxes4,157,932 4,095,339 
Regulatory Liabilities3,863,031 3,850,781 
Derivative Liabilities293,560 294,535 
Asset Retirement Obligations500,276 499,713 
Accrued Pension, SERP and PBOP1,565,753 1,653,788 
Other Long-Term Liabilities951,750 948,506 
Total Deferred Credits and Other Liabilities11,332,302 11,342,662 
Long-Term Debt14,782,672 15,125,876 
Rate Reduction Bonds475,307 496,912 
Noncontrolling Interest – Preferred Stock of Subsidiaries155,570 155,570 
Common Shareholders' Equity: 
Common Shares1,789,092 1,789,092 
Capital Surplus, Paid In8,016,118 8,015,663 
Retained Earnings4,772,431 4,613,201 
Accumulated Other Comprehensive Loss(75,223)(76,411)
Treasury Stock(268,998)(277,979)
Common Shareholders' Equity14,233,420 14,063,566 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$46,518,215 $46,099,598 
(Thousands of Dollars)As of March 31, 2020
As of December 31, 2019





ASSETS 

 
Current Assets: 

 
Cash$47,425

$15,432
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 Revenues155,224

181,006
Fuel, Materials, Supplies and REC Inventory286,498
 235,471
Regulatory Assets785,125

651,112
Prepayments and Other Current Assets269,457

342,135
Total Current Assets2,562,670

2,414,539
Property, Plant and Equipment, Net28,041,356

27,585,470
Deferred Debits and Other Assets: 

 
Regulatory Assets4,778,321

4,863,639
Goodwill4,427,266

4,427,266
Investments in Unconsolidated Affiliates876,328
 871,633
Marketable Securities418,715

449,130
Other Long-Term Assets544,330

512,238
Total Deferred Debits and Other Assets11,044,960

11,123,906
Total Assets$41,648,986

$41,123,915




LIABILITIES AND CAPITALIZATION 
 
Current Liabilities: 
 
Notes Payable$661,420

$889,084
Long-Term Debt – Current Portion532,440

327,411
Rate Reduction Bonds – Current Portion43,210
 43,210
Accounts Payable914,333

1,147,872
Renewable Portfolio Standards Compliance Obligations192,660
 160,149
Regulatory Liabilities439,859

361,152
Other Current Liabilities611,706

676,685
Total Current Liabilities3,395,628

3,605,563
Deferred Credits and Other Liabilities: 
 
Accumulated Deferred Income Taxes3,816,988

3,755,777
Regulatory Liabilities3,668,158

3,658,042
Derivative Liabilities342,990

338,710
Asset Retirement Obligations489,519
 488,511
Accrued Pension, SERP and PBOP1,331,884

1,370,245
Other Long-Term Liabilities821,195

810,553
Total Deferred Credits and Other Liabilities10,470,734

10,421,838
Long-Term Debt13,898,581

13,770,828
Rate Reduction Bonds518,517
 540,122
Noncontrolling Interest – Preferred Stock of Subsidiaries155,570

155,570
Common Shareholders' Equity:

 
Common Shares1,759,092

1,729,292
Capital Surplus, Paid In7,479,689

7,087,768
Retained Earnings4,322,825

4,177,048
Accumulated Other Comprehensive Loss(63,111)
(65,059)
Treasury Stock(288,539)
(299,055)
Common Shareholders' Equity13,209,956

12,629,994
Commitments and Contingencies (Note 9)


 


Total Liabilities and Capitalization$41,648,986

$41,123,915

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

1

EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information)20212020
Operating Revenues$2,825,840 $2,373,726 
 
Operating Expenses:  
Purchased Power, Fuel and Transmission998,491 876,570 
Operations and Maintenance465,542 342,062 
Depreciation270,704 236,211 
Amortization108,013 49,776 
Energy Efficiency Programs188,063 148,393 
Taxes Other Than Income Taxes209,459 181,594 
Total Operating Expenses2,240,272 1,834,606 
Operating Income585,568 539,120 
Interest Expense137,766 134,715 
Other Income, Net34,201 24,104 
Income Before Income Tax Expense482,003 428,509 
Income Tax Expense113,980 91,876 
Net Income368,023 336,633 
Net Income Attributable to Noncontrolling Interests1,880 1,880 
Net Income Attributable to Common Shareholders$366,143 $334,753 
Basic Earnings Per Common Share$1.07 $1.01 
Diluted Earnings Per Common Share$1.06 $1.01 
Weighted Average Common Shares Outstanding:  
Basic343,678,243 331,102,237 
Diluted344,334,689 332,937,153 
 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 Transmission876,570
 974,882
Operations and Maintenance342,062
 335,597
Depreciation236,211
 214,948
Amortization49,776
 70,961
Energy Efficiency Programs148,393
 140,116
Taxes Other Than Income Taxes181,594
 184,588
Total Operating Expenses1,834,606
 1,921,092
Operating Income539,120
 494,700
Interest Expense134,715
 131,734
Other Income, Net24,104
 30,985
Income Before Income Tax Expense428,509
 393,951
Income Tax Expense91,876
 83,393
Net Income336,633
 310,558
Net Income Attributable to Noncontrolling Interests1,880
 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:   
Basic331,102,237
 317,624,593
Diluted332,937,153
 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)20212020
Net Income$368,023 $336,633 
Other Comprehensive Income, Net of Tax:  
Qualified Cash Flow Hedging Instruments407 229 
Changes in Unrealized (Losses)/Gains on Marketable Securities(736)160 
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans1,517 1,559 
Other Comprehensive Income, Net of Tax1,188 1,948 
Comprehensive Income Attributable to Noncontrolling Interests(1,880)(1,880)
Comprehensive Income Attributable to Common Shareholders$367,331 $336,701 
 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 Instruments229
 316
Changes in Unrealized Gains on Marketable Securities160
 655
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans1,559
 1,225
Other Comprehensive Income, Net of Tax1,948
 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.

2

EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(Unaudited)
For the Three Months Ended March 31, 2021
 Common SharesCapital
Surplus,
Paid In		Retained EarningsAccumulated Other Comprehensive LossTreasury StockTotal Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)SharesAmount
Balance as of January 1, 2021342,954,023 $1,789,092 $8,015,663 $4,613,201 $(76,411)$(277,979)$14,063,566 
Net Income   368,023   368,023 
Dividends on Common Shares - $0.6025 Per Share   (206,913)  (206,913)
Dividends on Preferred Stock   (1,880)  (1,880)
Long-Term Incentive Plan Activity  (15,727)   (15,727)
Issuance of Treasury Shares480,275 16,182 8,981 25,163 
Other Comprehensive Income  1,188  1,188 
Balance as of March 31, 2021343,434,298 $1,789,092 $8,016,118 $4,772,431 $(75,223)$(268,998)$14,233,420 
 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
(Thousands of Dollars, Except Share Information)Shares Amount
Balance as of January 1, 2020329,880,645
 $1,729,292
 $7,087,768
 $4,177,048
 $(65,059) $(299,055) $12,629,994
Net Income 
  
   336,633
     336,633
Dividends on Common Shares - $0.5675 Per Share 
  
   (187,462)     (187,462)
Dividends on Preferred Stock 
  
   (1,880)     (1,880)
Issuance of Common Shares - $5 par value5,960,000
 29,800
 402,300
       432,100
Long-Term Incentive Plan Activity 
  
 (15,295)  
     (15,295)
Issuance of Treasury Shares570,542
   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 
  
     1,948
   1,948
Balance as of March 31, 2020336,411,187

$1,759,092

$7,479,689

$4,322,825

$(63,111)
$(288,539)
$13,209,956

For the Three Months Ended March 31, 2020
 Common SharesCapital
Surplus,
Paid In		Retained EarningsAccumulated Other Comprehensive LossTreasury StockTotal Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)SharesAmount
Balance as of January 1, 2020329,880,645 $1,729,292 $7,087,768 $4,177,048 $(65,059)$(299,055)$12,629,994 
Net Income336,633 336,633 
Dividends on Common Shares - $0.5675 Per Share(187,462)(187,462)
Dividends on Preferred Stock(1,880)(1,880)
Issuance of Common Shares - $5 par value5,960,000 29,800 402,300 432,100 
Long-Term Incentive Plan Activity(15,295)(15,295)
Issuance of Treasury Shares570,542 17,230 10,516 27,746 
Capital Stock Expense(12,314)(12,314)
Adoption of Accounting Standards Update 2016-13(1,514)(1,514)
Other Comprehensive Income1,948 1,948 
Balance as of March 31, 2020336,411,187 $1,759,092 $7,479,689 $4,322,825 $(63,111)$(288,539)$13,209,956 
 For the Three Months Ended March 31, 2019
 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
Balance as of January 1, 2019316,885,808
 $1,669,392
 $6,241,222
 $3,953,974
 $(60,000) $(317,771) $11,486,817
Net Income   
   310,558
     310,558
Dividends on Common Shares - $0.535 Per Share   
   (169,757)     (169,757)
Dividends on Preferred Stock   
   (1,880)     (1,880)
Long-Term Incentive Plan Activity   
 (16,609)  
     (16,609)
Issuance of Treasury Shares461,662
   17,476
     8,633
 26,109
Other Comprehensive Income   
    
 2,196
   2,196
Balance as of March 31, 2019317,347,470
 $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.

3

EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Three Months Ended March 31,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$368,023 $336,633 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation270,704 236,211 
Deferred Income Taxes41,917 44,201 
Uncollectible Expense16,295 11,353 
Pension, SERP and PBOP (Income)/Expense, Net(2,341)1,953 
Pension and PBOP Contributions(31,100)(723)
Regulatory Over/(Under) Recoveries, Net58,024 (22,288)
Amortization108,013 49,776 
Other(91,246)(33,317)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(124,344)(55,290)
Fuel, Materials, Supplies and REC Inventory(42,494)(51,027)
Taxes Receivable/Accrued, Net64,076 92,140 
Accounts Payable(181,725)(127,366)
Other Current Assets and Liabilities, Net(42,386)(61,950)
Net Cash Flows Provided by Operating Activities411,416 420,306 
Investing Activities:  
Investments in Property, Plant and Equipment(688,983)(725,520)
Proceeds from Sales of Marketable Securities79,818 58,627 
Purchases of Marketable Securities(68,360)(50,723)
Investments in Unconsolidated Affiliates, Net(34,127)(6,113)
Other Investing Activities7,135 6,119 
Net Cash Flows Used in Investing Activities(704,517)(717,610)
Financing Activities:  
Issuance of Common Shares, Net of Issuance Costs0 419,786 
Cash Dividends on Common Shares(201,013)(181,608)
Cash Dividends on Preferred Stock(1,880)(1,880)
Increase/(Decrease) in Notes Payable669,919 (408,950)
Repayment of Rate Reduction Bonds(21,605)(21,605)
Issuance of Long-Term Debt350,000 750,000 
Retirement of Long-Term Debt(572,000)(220,253)
Other Financing Activities(19,666)(21,560)
Net Cash Flows Provided by Financing Activities203,755 313,930 
Net (Decrease)/Increase in Cash and Restricted Cash(89,346)16,626 
Cash and Restricted Cash - Beginning of Period264,950 117,063 
Cash and Restricted Cash - End of Period$175,604 $133,689 

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




Operating Activities: 
 
Net Income$336,633

$310,558
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities: 
 
Depreciation236,211

214,948
Deferred Income Taxes44,201

18,085
Uncollectible Expense11,353
 18,565
Pension, SERP and PBOP Expense, Net1,953

8,428
Pension and PBOP Contributions(723)
(4,700)
Regulatory Underrecoveries, Net(22,288)
(19,232)
Amortization49,776

70,961
Other(33,317)
(37,310)
Changes in Current Assets and Liabilities: 
 
Receivables and Unbilled Revenues, Net(55,290)
(155,823)
Fuel, Materials, Supplies and REC Inventory(51,027)
(39,063)
Taxes Receivable/Accrued, Net92,140

126,381
Accounts Payable(127,366)
(60,121)
Other Current Assets and Liabilities, Net(61,950)
(70,242)
Net Cash Flows Provided by Operating Activities420,306

381,435




Investing Activities: 
 
Investments in Property, Plant and Equipment(725,520)
(628,129)
Proceeds from Sales of Marketable Securities58,627

234,497
Purchases of Marketable Securities(50,723)
(237,794)
Investments in Unconsolidated Affiliates, Net(6,113) (249,138)
Other Investing Activities6,119

4,893
Net Cash Flows Used in Investing Activities(717,610)
(875,671)




Financing Activities: 
 
Issuance of Common Shares, Net of Issuance Costs419,786
 —
Cash Dividends on Common Shares(181,608)
(169,757)
Cash Dividends on Preferred Stock(1,880)
(1,880)
(Decrease)/Increase in Notes Payable(408,950)
829,430
Repayment of Rate Reduction Bonds(21,605) (30,727)
Issuance of Long-Term Debt750,000

—
Retirement of Long-Term Debt(220,253)
(250,215)
Other Financing Activities(21,560)
16,433
Net Cash Flows Provided by Financing Activities313,930

393,284
Net Increase/(Decrease) in Cash and Restricted Cash16,626

(100,952)
Cash and Restricted Cash - Beginning of Period117,063

209,324
Cash and Restricted Cash - End of Period$133,689

$108,372

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



4


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of March 31, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$9,256 $90,801 
Receivables, Net (net of allowance for uncollectible accounts of $175,105 and
   $157,447 as of March 31, 2021 and December 31, 2020, respectively)
483,711 459,214 
Accounts Receivable from Affiliated Companies40,721 17,486 
Unbilled Revenues50,522 57,407 
Materials and Supplies57,301 57,924 
Regulatory Assets386,140 345,622 
Prepayments and Other Current Assets88,153 83,950 
Total Current Assets1,115,804 1,112,404 
Property, Plant and Equipment, Net10,344,782 10,234,556 
Deferred Debits and Other Assets:  
Regulatory Assets1,863,935 1,866,152 
Other Long-Term Assets258,126 242,862 
Total Deferred Debits and Other Assets2,122,061 2,109,014 
Total Assets$13,582,647 $13,455,974 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable to Eversource Parent$32,100 $0 
Accounts Payable369,838 451,240 
Accounts Payable to Affiliated Companies121,868 51,118 
Obligations to Third Party Suppliers48,762 49,967 
Regulatory Liabilities202,362 137,166 
Accrued Interest49,637 37,645 
Derivative Liabilities69,738 68,767 
Other Current Liabilities63,690 64,415 
Total Current Liabilities957,995 860,318 
Deferred Credits and Other Liabilities: 
Accumulated Deferred Income Taxes1,438,413 1,408,343 
Regulatory Liabilities1,203,616 1,204,942 
Derivative Liabilities293,560 294,535 
Accrued Pension, SERP and PBOP449,944 478,325 
Other Long-Term Liabilities136,508 133,690 
Total Deferred Credits and Other Liabilities3,522,041 3,519,835 
Long-Term Debt3,914,749 3,914,835 
Preferred Stock Not Subject to Mandatory Redemption116,200 116,200 
Common Stockholder's Equity:  
Common Stock60,352 60,352 
Capital Surplus, Paid In2,810,765 2,810,765 
Retained Earnings2,200,275 2,173,367 
Accumulated Other Comprehensive Income270 302 
Common Stockholder's Equity5,071,662 5,044,786 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$13,582,647 $13,455,974 
(Thousands of Dollars)As of March 31, 2020 As of December 31, 2019
    
ASSETS   
Current Assets:   
Cash$3,785
 $—
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 Companies33,701
 24,577
Unbilled Revenues49,982
 56,465
Materials and Supplies49,962
 50,700
Regulatory Assets290,630
 178,607
Prepayments and Other Current Assets69,767
 73,184
Total Current Assets886,929
 784,460
Property, Plant and Equipment, Net9,760,890
 9,625,765
Deferred Debits and Other Assets:   
Regulatory Assets1,529,003
 1,557,261
Other Long-Term Assets250,243
 217,705
Total Deferred Debits and Other Assets1,779,246
 1,774,966
Total Assets$12,427,065
 $12,185,191
    
LIABILITIES AND CAPITALIZATION   
Current Liabilities:   
Notes Payable to Eversource Parent$219,000
 $63,800
Accounts Payable331,491
 374,698
Accounts Payable to Affiliated Companies88,553
 97,793
Obligations to Third Party Suppliers50,335
 56,952
Regulatory Liabilities119,283
 82,763
Derivative Liabilities69,631
 67,804
Other Current Liabilities152,138
 132,339
Total Current Liabilities1,030,431
 876,149
Deferred Credits and Other Liabilities:   
Accumulated Deferred Income Taxes1,270,025
 1,244,551
Regulatory Liabilities1,179,663
 1,164,991
Derivative Liabilities342,701
 338,594
Accrued Pension, SERP and PBOP385,451
 391,159
Other Long-Term Liabilities149,693
 147,586
Total Deferred Credits and Other Liabilities3,327,533
 3,286,881
Long-Term Debt3,518,129
 3,518,136
Preferred Stock Not Subject to Mandatory Redemption116,200
 116,200
Common Stockholder's Equity:   
Common Stock60,352
 60,352
Capital Surplus, Paid In2,535,765
 2,535,765
Retained Earnings1,838,340
 1,791,392
Accumulated Other Comprehensive Income315
 316
Common Stockholder's Equity4,434,772
 4,387,825
Commitments and Contingencies (Note 9)


 


Total Liabilities and Capitalization$12,427,065
 $12,185,191

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

5

THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended March 31, For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019(Thousands of Dollars)20212020
   
Operating Revenues$899,703
 $849,246
Operating Revenues$987,274 $899,703 
   
Operating Expenses:   Operating Expenses: 
Purchased Power and Transmission374,717
 319,833
Purchased Power and Transmission373,274 374,717 
Operations and Maintenance135,597
 130,637
Operations and Maintenance175,420 135,597 
Depreciation78,435
 73,289
Depreciation83,405 78,435 
Amortization of Regulatory Assets, Net6,548
 35,671
Amortization of Regulatory Assets, Net62,775 6,548 
Energy Efficiency Programs35,479
 25,988
Energy Efficiency Programs35,573 35,479 
Taxes Other Than Income Taxes82,987
 92,000
Taxes Other Than Income Taxes91,392 82,987 
Total Operating Expenses713,763
 677,418
Total Operating Expenses821,839 713,763 
Operating Income185,940
 171,828
Operating Income165,435 185,940 
Interest Expense37,883
 35,781
Interest Expense38,979 37,883 
Other Income, Net1,898
 3,880
Other Income, Net4,908 1,898 
Income Before Income Tax Expense149,955
 139,927
Income Before Income Tax Expense131,364 149,955 
Income Tax Expense31,217
 29,456
Income Tax Expense32,966 31,217 
Net Income$118,738
 $110,471
Net Income$98,398 $118,738 

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)20212020
Net Income$98,398 $118,738 
Other Comprehensive Loss, Net of Tax:  
Qualified Cash Flow Hedging Instruments(7)(7)
Changes in Unrealized (Losses)/Gains on Marketable Securities(25)6 
Other Comprehensive Loss, Net of Tax(32)(1)
Comprehensive Income$98,366 $118,737 
 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 Securities6
 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.


6


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Three Months Ended March 31, 2021
 Common StockCapital
Surplus,
Paid In		Retained
Earnings		Accumulated
Other
Comprehensive
Income		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 20216,035,205 $60,352 $2,810,765 $2,173,367 $302 $5,044,786 
Net Income   98,398  98,398 
Dividends on Preferred Stock   (1,390) (1,390)
Dividends on Common Stock   (70,100) (70,100)
Other Comprehensive Loss    (32)(32)
Balance as of March 31, 20216,035,205 $60,352 $2,810,765 $2,200,275 $270 $5,071,662 
For the Three Months Ended March 31, 2020For 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 StockCapital
Surplus,
Paid In		Retained
Earnings		Accumulated
Other
Comprehensive
Income		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)Stock Amount (Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 20206,035,205
 $60,352
 $2,535,765
 $1,791,392
 $316
 $4,387,825
Balance as of January 1, 20206,035,205 $60,352 $2,535,765 $1,791,392 $316 $4,387,825 
Net Income 
  
   118,738
   118,738
Net Income   118,738  118,738 
Dividends on Preferred Stock 
  
   (1,390)   (1,390)Dividends on Preferred Stock   (1,390) (1,390)
Dividends on Common Stock 
  
   (69,500)   (69,500)Dividends on Common Stock   (69,500) (69,500)
Adoption of New Accounting Standard (See Note 1B)      (900)   (900)
Adoption of Accounting Standards Update 2016-13Adoption of Accounting Standards Update 2016-13(900)(900)
Other Comprehensive Loss 
  
    
 (1) (1)Other Comprehensive Loss    (1)(1)
Balance as of March 31, 20206,035,205
 $60,352
 $2,535,765
 $1,838,340
 $315
 $4,434,772
Balance as of March 31, 20206,035,205 $60,352 $2,535,765 $1,838,340 $315 $4,434,772 
 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
(Thousands of Dollars, Except Stock Information)Stock Amount    
Balance as of January 1, 20196,035,205
 $60,352
 $2,410,765
 $1,727,899
 $301
 $4,199,317
Net Income 
  
   110,471
   110,471
Dividends on Preferred Stock 
  
   (1,390)   (1,390)
Dividends on Common Stock 
  
   (99,000)   (99,000)
Other Comprehensive Income 
  
    
 17
 17
Balance as of March 31, 20196,035,205
 $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.


7

THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Three Months Ended March 31,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$98,398 $118,738 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation83,405 78,435 
Deferred Income Taxes25,354 19,910 
Uncollectible Expense3,797 3,230 
Pension, SERP, and PBOP Expense, Net3,088 3,315 
Pension Contributions(18,940)0 
Regulatory Underrecoveries, Net(29,971)(34,198)
Amortization of Regulatory Assets, Net62,775 6,548 
Other(30,070)(27,239)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(66,930)(27,969)
Taxes Receivable/Accrued, Net29,596 40,505 
Accounts Payable17,124 (27,298)
Other Current Assets and Liabilities, Net(21,433)(21,801)
Net Cash Flows Provided by Operating Activities156,193 132,176 
Investing Activities:  
Investments in Property, Plant and Equipment(197,954)(212,374)
Other Investing Activities80 74 
Net Cash Flows Used in Investing Activities(197,874)(212,300)
Financing Activities:  
Cash Dividends on Common Stock(70,100)(69,500)
Cash Dividends on Preferred Stock(1,390)(1,390)
Increase in Notes Payable to Eversource Parent32,100 155,200 
Other Financing Activities(450)(390)
Net Cash Flows (Used in)/Provided by Financing Activities(39,840)83,920 
Net (Decrease)/Increase in Cash and Restricted Cash(81,521)3,796 
Cash and Restricted Cash - Beginning of Period99,809 4,971 
Cash and Restricted Cash - End of Period$18,288 $8,767 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Operating Activities:   
Net Income$118,738
 $110,471
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:   
Depreciation78,435
 73,289
Deferred Income Taxes19,910
 15,188
Uncollectible Expense3,230
 4,116
Pension, SERP, and PBOP Expense, Net3,315
 4,063
Regulatory Underrecoveries, Net(34,198) (54,671)
Amortization of Regulatory Assets, Net6,548
 35,671
Other(27,239) (5,848)
Changes in Current Assets and Liabilities:   
Receivables and Unbilled Revenues, Net(27,969) (60,506)
Taxes Receivable/Accrued, Net40,505
 41,399
Accounts Payable(27,298) 75,373
Other Current Assets and Liabilities, Net(21,801) (40,274)
Net Cash Flows Provided by Operating Activities132,176
 198,271
    
Investing Activities:   
Investments in Property, Plant and Equipment(212,374) (189,423)
Other Investing Activities74
 59
Net Cash Flows Used in Investing Activities(212,300) (189,364)
    
Financing Activities:   
Cash Dividends on Common Stock(69,500) (99,000)
Cash Dividends on Preferred Stock(1,390) (1,390)
Retirement of Long-Term Debt—
 (250,000)
Increase in Notes Payable to Eversource Parent155,200
 261,600
Other Financing Activities(390) (326)
Net Cash Flows Provided by/(Used in) Financing Activities83,920
 (89,116)
Net Increase/(Decrease) in Cash and Restricted Cash3,796
 (80,209)
Cash and Restricted Cash - Beginning of Period4,971
 91,613
Cash and Restricted Cash - End of Period$8,767
 $11,404

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




8


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of March 31, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$57 $102 
Receivables, Net (net of allowance for uncollectible accounts of $89,299 and $91,583
   as of March 31, 2021 and December 31, 2020, respectively)
409,403 403,045 
Accounts Receivable from Affiliated Companies39,582 30,095 
Unbilled Revenues34,265 38,342 
Materials, Supplies and REC Inventory186,892 133,894 
Taxes Receivable6,045 65,051 
Regulatory Assets430,361 399,882 
Prepayments and Other Current Assets23,907 21,833 
Total Current Assets1,130,512 1,092,244 
Property, Plant and Equipment, Net10,252,264 10,123,062 
Deferred Debits and Other Assets:  
Regulatory Assets1,273,997 1,304,019 
Prepaid PBOP211,715 204,138 
Other Long-Term Assets161,451 162,836 
Total Deferred Debits and Other Assets1,647,163 1,670,993 
Total Assets$13,029,939 $12,886,299 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable$443,500 $195,000 
Notes Payable to Eversource Parent22,500 21,300 
Long-Term Debt – Current Portion250,000 250,000 
Accounts Payable275,923 383,558 
Accounts Payable to Affiliated Companies120,697 95,703 
Obligations to Third Party Suppliers120,632 98,572 
Renewable Portfolio Standards Compliance Obligations156,607 127,536 
Regulatory Liabilities190,546 164,761 
Other Current Liabilities74,789 72,118 
Total Current Liabilities1,655,194 1,408,548 
Deferred Credits and Other Liabilities:  
Accumulated Deferred Income Taxes1,477,998 1,459,906 
Regulatory Liabilities1,556,422 1,550,390 
Accrued Pension and SERP156,342 172,571 
Other Long-Term Liabilities338,672 337,245 
Total Deferred Credits and Other Liabilities3,529,434 3,520,112 
Long-Term Debt3,393,798 3,393,221 
Preferred Stock Not Subject to Mandatory Redemption43,000 43,000 
Common Stockholder's Equity:  
Common Stock0 0 
Capital Surplus, Paid In1,993,942 1,993,942 
Retained Earnings2,414,201 2,527,167 
Accumulated Other Comprehensive Income370 309 
Common Stockholder's Equity4,408,513 4,521,418 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$13,029,939 $12,886,299 
(Thousands of Dollars)As of March 31, 2020 As of December 31, 2019
    
ASSETS 
  
Current Assets:   
Cash$2,844
 $52
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 Companies66,838
 29,914
Unbilled Revenues32,629
 37,482
Materials, Supplies and REC Inventory178,510
 124,060
Regulatory Assets304,007
 285,591
Prepayments and Other Current Assets16,305
 31,150
Total Current Assets976,720
 855,034
Property, Plant and Equipment, Net9,614,555
 9,472,770
Deferred Debits and Other Assets:   
Regulatory Assets1,225,314
 1,250,029
Prepaid PBOP172,244
 166,058
Other Long-Term Assets139,304
 144,368
Total Deferred Debits and Other Assets1,536,862
 1,560,455
Total Assets$12,128,137
 $11,888,259
    
LIABILITIES AND CAPITALIZATION   
Current Liabilities:   
Notes Payable$88,000
 $10,500
Notes Payable to Eversource Parent38,400
 30,300
Long-Term Debt – Current Portion—
 95,000
Accounts Payable264,148
 363,691
Accounts Payable to Affiliated Companies93,344
 96,307
Obligations to Third Party Suppliers107,341
 108,827
Renewable Portfolio Standards Compliance Obligations179,075
 150,429
Regulatory Liabilities219,872
 209,180
Other Current Liabilities68,463
 71,333
Total Current Liabilities1,058,643
 1,135,567
Deferred Credits and Other Liabilities:   
Accumulated Deferred Income Taxes1,374,963
 1,357,265
Regulatory Liabilities1,515,732
 1,516,585
Accrued Pension and SERP95,746
 108,243
Other Long-Term Liabilities334,538
 320,629
Total Deferred Credits and Other Liabilities3,320,979
 3,302,722
Long-Term Debt3,642,325
 3,247,086
Preferred Stock Not Subject to Mandatory Redemption43,000
 43,000
Common Stockholder's Equity:   
Common Stock—
 —
Capital Surplus, Paid In1,813,442
 1,813,442
Retained Earnings2,249,526
 2,346,287
Accumulated Other Comprehensive Income222
 155
Common Stockholder's Equity4,063,190
 4,159,884
Commitments and Contingencies (Note 9)


 


Total Liabilities and Capitalization$12,128,137

$11,888,259

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

9

NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 For the Three Months Ended March 31,
(Thousands of Dollars)20212020
Operating Revenues$737,043 $733,833 
Operating Expenses:  
Purchased Power and Transmission226,478 242,439 
Operations and Maintenance143,219 122,318 
Depreciation82,793 78,345 
Amortization of Regulatory Assets, Net18,418 27,008 
Energy Efficiency Programs75,099 68,667 
Taxes Other Than Income Taxes54,652 48,722 
Total Operating Expenses600,659 587,499 
Operating Income136,384 146,334 
Interest Expense32,306 31,017 
Other Income, Net16,812 12,238 
Income Before Income Tax Expense120,890 127,555 
Income Tax Expense26,966 27,165 
Net Income$93,924 $100,390 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Operating Revenues$733,833
 $797,612
    
Operating Expenses: 
  
Purchased Power and Transmission242,439
 330,104
Operations and Maintenance122,318
 112,963
Depreciation78,345
 72,584
Amortization of Regulatory Assets, Net27,008
 22,584
Energy Efficiency Programs68,667
 76,729
Taxes Other Than Income Taxes48,722
 44,822
Total Operating Expenses587,499
 659,786
Operating Income146,334
 137,826
Interest Expense31,017
 27,881
Other Income, Net12,238
 11,086
Income Before Income Tax Expense127,555
 121,031
Income Tax Expense27,165
 27,017
Net Income$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,
(Thousands of Dollars)20212020
Net Income$93,924 $100,390 
Other Comprehensive Income, Net of Tax:
  Changes in Funded Status of SERP Benefit Plan(41)(43)
  Qualified Cash Flow Hedging Instruments109 109 
  Changes in Unrealized (Losses)/Gains on Marketable Securities(7)1 
Other Comprehensive Income, Net of Tax61 67 
Comprehensive Income$93,985 $100,457 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Net Income$100,390
 $94,014
Other Comprehensive Income, Net of Tax:   
  Changes in Funded Status of SERP Benefit Plan(43) 1
  Qualified Cash Flow Hedging Instruments109
 110
  Changes in Unrealized Gains on Marketable Securities1
 6
Other Comprehensive Income, Net of Tax67
 117
Comprehensive Income$100,457
 $94,131

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


10

NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Three Months Ended March 31, 2021
 Common StockCapital
Surplus,
Paid In		Retained
Earnings		Accumulated
Other
Comprehensive
Income		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 2021200 $0 $1,993,942 $2,527,167 $309 $4,521,418 
Net Income   93,924  93,924 
Dividends on Preferred Stock   (490) (490)
Dividends on Common Stock   (206,400) (206,400)
Other Comprehensive Income    61 61 
Balance as of March 31, 2021200 $0 $1,993,942 $2,414,201 $370 $4,408,513 
For the Three Months Ended March 31, 2020For 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 StockCapital
Surplus,
Paid In		Retained
Earnings		Accumulated
Other
Comprehensive
Income		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)Stock Amount (Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 2020200
 $—
 $1,813,442
 $2,346,287
 $155
 $4,159,884
Balance as of January 1, 2020200 $0 $1,813,442 $2,346,287 $155 $4,159,884 
Net Income 
  
   100,390
   100,390
Net Income   100,390  100,390 
Dividends on Preferred Stock 
  
   (490)   (490)Dividends on Preferred Stock   (490) (490)
Dividends on Common Stock 
  
   (196,500)   (196,500)Dividends on Common Stock   (196,500) (196,500)
Adoption of New Accounting Standard (See Note 1B)      (161)   (161)
Adoption of Accounting Standards Update 2016-13Adoption of Accounting Standards Update 2016-13(161)(161)
Other Comprehensive Income 
  
     67
 67
Other Comprehensive Income    67 67 
Balance as of March 31, 2020200

$—

$1,813,442

$2,249,526

$222

$4,063,190
Balance as of March 31, 2020200 $0 $1,813,442 $2,249,526 $222 $4,063,190 
 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
(Thousands of Dollars, Except Stock Information)Stock Amount    
Balance as of January 1, 2019200
 $—
 $1,633,442
 $2,098,091
 $(1,378) $3,730,155
Net Income 
  
   94,014
   94,014
Dividends on Preferred Stock 
  
   (490)   (490)
Dividends on Common Stock 
  
   (60,600)   (60,600)
Capital Contributions from Eversource Parent 
  
 20,000
 
   20,000
Other Comprehensive Income 
  
     117
 117
Balance as of March 31, 2019200
 $—
 $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.


11

NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Three Months Ended March 31,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$93,924 $100,390 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation82,793 78,345 
Deferred Income Taxes10,309 9,775 
Uncollectible Expense3,868 3,704 
Pension, SERP and PBOP Income, Net(6,335)(4,754)
Regulatory Underrecoveries, Net(3,405)(17,434)
Amortization of Regulatory Assets, Net18,418 27,008 
Other(23,586)(1,643)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(14,587)(64,951)
Materials, Supplies and REC Inventory(52,998)(54,450)
Taxes Receivable/Accrued, Net58,353 32,135 
Accounts Payable(45,604)(53,462)
Other Current Assets and Liabilities, Net51,445 7,033 
Net Cash Flows Provided by Operating Activities172,595 61,696 
Investing Activities:  
Investments in Property, Plant and Equipment(215,483)(247,549)
Other Investing Activities22 21 
Net Cash Flows Used in Investing Activities(215,461)(247,528)
Financing Activities:  
Cash Dividends on Common Stock(206,400)(196,500)
Cash Dividends on Preferred Stock(490)(490)
Issuance of Long-Term Debt0 400,000 
Retirement of Long-Term Debt0 (95,000)
Increase in Notes Payable to Eversource Parent1,200 8,100 
Increase in Notes Payable248,500 77,500 
Other Financing Activities19 (4,961)
Net Cash Flows Provided by Financing Activities42,829 188,649 
Net (Decrease)/Increase in Cash and Restricted Cash(37)2,817 
Cash and Restricted Cash - Beginning of Period17,410 6,312 
Cash and Restricted Cash - End of Period$17,373 $9,129 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Operating Activities: 
  
Net Income$100,390
 $94,014
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities: 
  
Depreciation78,345
 72,584
Deferred Income Taxes9,775
 3,722
Uncollectible Expense3,704
 5,953
Pension, SERP and PBOP Income, Net(4,754) (4,279)
Pension and PBOP Contributions—
 (1,503)
Regulatory (Under)/Over Recoveries, Net(17,434) 4,329
Amortization of Regulatory Assets, Net27,008
 22,584
Other(1,643) (8,043)
Changes in Current Assets and Liabilities: 
  
Receivables and Unbilled Revenues, Net(64,951) (29,220)
Materials, Supplies and REC Inventory(54,450) (46,020)
Taxes Receivable/Accrued, Net32,135
 29,483
Accounts Payable(53,462) (18,109)
Other Current Assets and Liabilities, Net7,033
 11,466
Net Cash Flows Provided by Operating Activities61,696
 136,961
    
Investing Activities: 
  
Investments in Property, Plant and Equipment(247,549) (208,540)
Other Investing Activities21
 17
Net Cash Flows Used in Investing Activities(247,528) (208,523)
    
Financing Activities: 
  
Cash Dividends on Common Stock(196,500) (60,600)
Cash Dividends on Preferred Stock(490) (490)
Issuance of Long-Term Debt400,000
 —
Retirement of Long-Term Debt(95,000) —
Capital Contributions from Eversource Parent—
 20,000
Increase in Notes Payable to Eversource Parent8,100
 22,300
Increase in Notes Payable77,500
 89,930
Other Financing Activities(4,961) 668
Net Cash Flows Provided by Financing Activities188,649
 71,808
Net Increase in Cash and Restricted Cash2,817
 246
Cash and Restricted Cash - Beginning of Period6,312
 14,659
Cash and Restricted Cash - End of Period$9,129
 $14,905

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


12


PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of March 31, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$1,988 $141 
Receivables, Net (net of allowance for uncollectible accounts of $17,324 and $17,157
   as of March 31, 2021 and December 31, 2020, respectively)
115,592 119,899 
Accounts Receivable from Affiliated Companies13,113 10,925 
Unbilled Revenues43,152 46,041 
Materials, Supplies and REC Inventory29,125 26,829 
Regulatory Assets107,322 115,852 
Special Deposits22,196 36,767 
Prepaid Property Taxes6,403 26,257 
Prepayments and Other Current Assets3,113 10,788 
Total Current Assets342,004 393,499 
Property, Plant and Equipment, Net3,412,781 3,374,270 
Deferred Debits and Other Assets:  
Regulatory Assets869,904 873,203 
Other Long-Term Assets24,412 23,733 
Total Deferred Debits and Other Assets894,316 896,936 
Total Assets$4,649,101 $4,664,705 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable to Eversource Parent$196,800 $46,300 
Long-Term Debt – Current Portion160,000 282,000 
Rate Reduction Bonds – Current Portion43,210 43,210 
Accounts Payable101,274 132,635 
Accounts Payable to Affiliated Companies44,206 43,397 
Regulatory Liabilities48,023 58,756 
Other Current Liabilities53,908 58,487 
Total Current Liabilities647,421 664,785 
Deferred Credits and Other Liabilities:  
Accumulated Deferred Income Taxes544,495 537,627 
Regulatory Liabilities386,455 383,183 
Accrued Pension, SERP and PBOP177,733 184,715 
Other Long-Term Liabilities38,071 37,874 
Total Deferred Credits and Other Liabilities1,146,754 1,143,399 
Long-Term Debt817,349 817,070 
Rate Reduction Bonds475,307 496,912 
Common Stockholder's Equity:  
Common Stock0 0 
Capital Surplus, Paid In928,134 928,134 
Retained Earnings634,494 615,018 
Accumulated Other Comprehensive Loss(358)(613)
Common Stockholder's Equity1,562,270 1,542,539 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$4,649,101 $4,664,705 
(Thousands of Dollars)As of March 31, 2020 As of December 31, 2019
    
ASSETS   
Current Assets:   
Cash$19
 $413
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 Companies10,176
 6,763
Unbilled Revenues42,344
 48,146
Materials, Supplies and REC Inventory28,483
 24,957
Regulatory Assets102,438
 84,053
Special Deposits16,627
 32,513
Prepayments and Other Current Assets6,268
 19,431
Total Current Assets306,147
 316,210
Property, Plant and Equipment, Net3,187,282
 3,129,506
Deferred Debits and Other Assets:   
Regulatory Assets843,904
 861,672
Other Long-Term Assets41,564
 43,270
Total Deferred Debits and Other Assets885,468
 904,942
Total Assets$4,378,897
 $4,350,658
    
LIABILITIES AND CAPITALIZATION   
Current Liabilities:   
Notes Payable to Eversource Parent$84,700
 $27,000
Rate Reduction Bonds – Current Portion43,210
 43,210
Accounts Payable103,551
 127,081
Accounts Payable to Affiliated Companies32,707
 37,946
Regulatory Liabilities69,042
 65,766
Accrued Interest14,323
 19,138
Other Current Liabilities39,636
 32,736
Total Current Liabilities387,169
 352,877
Deferred Credits and Other Liabilities:   
Accumulated Deferred Income Taxes511,822
 506,212
Regulatory Liabilities411,959
 413,381
Accrued Pension, SERP and PBOP152,649
 157,638
Other Long-Term Liabilities36,022
 37,075
Total Deferred Credits and Other Liabilities1,112,452
 1,114,306
Long-Term Debt951,747
 951,620
Rate Reduction Bonds518,517
 540,122
Common Stockholder's Equity:   
Common Stock—
 —
Capital Surplus, Paid In903,134
 903,134
Retained Earnings507,307
 490,306
Accumulated Other Comprehensive Loss(1,429) (1,707)
Common Stockholder's Equity1,409,012
 1,391,733
Commitments and Contingencies (Note 9)


 


Total Liabilities and Capitalization$4,378,897
 $4,350,658

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


13

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 For the Three Months Ended March 31,
(Thousands of Dollars)20212020
Operating Revenues$293,435 $276,368 
Operating Expenses:  
Purchased Power and Transmission91,609 94,138 
Operations and Maintenance54,664 47,128 
Depreciation29,468 24,334 
Amortization of Regulatory Assets, Net18,547 20,110 
Energy Efficiency Programs10,348 9,364 
Taxes Other Than Income Taxes22,149 19,701 
Total Operating Expenses226,785 214,775 
Operating Income66,650 61,593 
Interest Expense14,630 14,479 
Other Income, Net4,166 3,190 
Income Before Income Tax Expense56,186 50,304 
Income Tax Expense11,510 10,703 
Net Income$44,676 $39,601 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Operating Revenues$276,368
 $276,435
    
Operating Expenses:   
Purchased Power and Transmission94,138
 113,531
Operations and Maintenance47,128
 52,630
Depreciation24,334
 22,919
Amortization of Regulatory Assets, Net20,110
 13,667
Energy Efficiency Programs9,364
 6,714
Taxes Other Than Income Taxes19,701
 17,311
Total Operating Expenses214,775
 226,772
Operating Income61,593
 49,663
Interest Expense14,479
 14,367
Other Income, Net3,190
 7,022
Income Before Income Tax Expense50,304
 42,318
Income Tax Expense10,703
 9,537
Net Income$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,
(Thousands of Dollars)20212020
Net Income$44,676 $39,601 
Other Comprehensive Income, Net of Tax:  
Qualified Cash Flow Hedging Instruments298 269 
Changes in Unrealized (Losses)/Gains on Marketable Securities(43)9 
Other Comprehensive Income, Net of Tax255 278 
Comprehensive Income$44,931 $39,879 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Net Income$39,601
 $32,781
Other Comprehensive Income, Net of Tax:   
Qualified Cash Flow Hedging Instruments269
 269
Changes in Unrealized Gains on Marketable Securities9
 38
Other Comprehensive Income, Net of Tax278
 307
Comprehensive Income$39,879
 $33,088

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


14

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Three Months Ended March 31, 2021
 Common StockCapital
Surplus,
Paid In		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 2021301 $0 $928,134 $615,018 $(613)$1,542,539 
Net Income   44,676  44,676 
Dividends on Common Stock   (25,200) (25,200)
Other Comprehensive Income    255 255 
Balance as of March 31, 2021301 $0 $928,134 $634,494 $(358)$1,562,270 
For the Three Months Ended March 31, 2020For 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 StockCapital
Surplus,
Paid In		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)Stock Amount (Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 2020301
 $—
 $903,134
 $490,306
 $(1,707) $1,391,733
Balance as of January 1, 2020301 $0 $903,134 $490,306 $(1,707)$1,391,733 
Net Income 
  
   39,601
   39,601
Net Income   39,601  39,601 
Dividends on Common Stock 
  
   (22,300)   (22,300)Dividends on Common Stock(22,300)(22,300)
Adoption of New Accounting Standard (See Note 1B)      (300)   (300)
Adoption of Accounting Standards Update 2016-13Adoption of Accounting Standards Update 2016-13(300)(300)
Other Comprehensive Income 
  
    
 278
 278
Other Comprehensive Income    278 278 
Balance as of March 31, 2020301

$—

$903,134

$507,307

$(1,429)
$1,409,012
Balance as of March 31, 2020301 $0 $903,134 $507,307 $(1,429)$1,409,012 
 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
(Thousands of Dollars, Except Stock Information)Stock Amount    
Balance as of January 1, 2019301
 $—
 $678,134
 $627,258
 $(2,851) $1,302,541
Net Income 
  
   32,781
   32,781
Dividends on Common Stock      (19,000)   (19,000)
Other Comprehensive Income 
  
    
 307
 307
Balance as of March 31, 2019301

$—

$678,134

$641,039

$(2,544)
$1,316,629

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


15

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended March 31,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$44,676 $39,601 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation29,468 24,334 
Deferred Income Taxes(378)4,167 
Uncollectible Expense1,221 666 
Regulatory Underrecoveries, Net(14,645)(22,977)
Amortization of Regulatory Assets, Net18,547 20,110 
Other(6,654)(3,885)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net3,223 2,843 
Materials, Supplies and REC Inventory(2,296)(3,526)
Taxes Receivable/Accrued, Net9,867 6,110 
Accounts Payable(21,025)(18,064)
Other Current Assets and Liabilities, Net12,897 9,118 
Net Cash Flows Provided by Operating Activities74,901 58,497 
Investing Activities:  
Investments in Property, Plant and Equipment(68,278)(88,694)
Other Investing Activities137 126 
Net Cash Flows Used in Investing Activities(68,141)(88,568)
Financing Activities:  
Cash Dividends on Common Stock(25,200)(22,300)
Repayment of Rate Reduction Bonds(21,605)(21,605)
Retirement of Long-Term Debt(122,000)0 
Increase in Notes Payable to Eversource Parent150,500 57,700 
Other Financing Activities(22)(22)
Net Cash Flows (Used in)/Provided by Financing Activities(18,327)13,773 
Net Decrease in Cash and Restricted Cash(11,567)(16,298)
Cash and Restricted Cash - Beginning of Period39,555 36,688 
Cash and Restricted Cash - End of Period$27,988 $20,390 
 For the Three Months Ended March 31,
(Thousands of Dollars)2020 2019
    
Operating Activities:   
Net Income$39,601
 $32,781
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:   
Depreciation24,334
 22,919
Deferred Income Taxes4,167
 6,541
Uncollectible Expense666
 1,725
Regulatory Underrecoveries, Net(22,977) (26,986)
Amortization of Regulatory Assets, Net20,110
 13,667
Other(3,885) (1,621)
Changes in Current Assets and Liabilities:   
Receivables and Unbilled Revenues, Net2,843
 1,103
Materials, Supplies and REC Inventory(3,526) 144
Taxes Receivable/Accrued, Net6,110
 17,572
Accounts Payable(18,064) 11,762
Other Current Assets and Liabilities, Net9,118
 6,472
Net Cash Flows Provided by Operating Activities58,497
 86,079
    
Investing Activities:   
Investments in Property, Plant and Equipment(88,694) (64,361)
Other Investing Activities126
 102
Net Cash Flows Used in Investing Activities(88,568) (64,259)
    
Financing Activities:   
Cash Dividends on Common Stock(22,300) (19,000)
Repayment of Rate Reduction Bonds(21,605) (30,727)
Increase in Notes Payable to Eversource Parent57,700
 4,000
Other Financing Activities(22) (20)
Net Cash Flows Provided by/(Used in) Financing Activities13,773
 (45,747)
Net Decrease in Cash and Restricted Cash(16,298) (23,927)
Cash and Restricted Cash - Beginning of Period36,688
 52,723
Cash and Restricted Cash - End of Period$20,390
 $28,796

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


16


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 and Eversource Gas Company of Massachusetts (EGMA) (natural gas utilities) and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 40000004.3 million electric, natural gas and water customers through 89 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 20192020 Form 10-K, which was filed with the SEC on February 27, 2020.17, 2021. 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, 20202021 and December 31, 2019,2020, and the results of operations, comprehensive income, common shareholders' equity, and cash flows for the three months ended March 31, 20202021 and 2019.2020. The results of operations, comprehensive income and cash flows for the three months ended March 31, 20202021 and 20192020 are not necessarily indicative of the results expected for a full year.  

Eversource's consolidated financial information includes the results of the acquisition of the assets of Columbia Gas of Massachusetts (CMA) on October 9, 2020. The natural gas distribution assets acquired from CMA on October 9, 2020 were assigned to EGMA.

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,COVID-19 continues to adversely affect customers, workers and the World Health Organization declaredU.S. economy. We continue to operate under our pandemic response plan, which requires remote work arrangements for nearly half of our workforce and other mitigating requirements for those that are required onsite in our electric, natural gas and water operations, construction and management functions. We continue to address the outbreakimpacts of the 2019 novel coronavirus (COVID-19) aCOVID-19 pandemic and President Trump declared a national emergency affectinghow 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 hasrelated developments affect Eversource. 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, management will continue to closely monitor how COVID-19 related developments affect Eversource. As of the date ofpandemic that have materially affected our filing and based on information available, management is unable to predict the impacts that the COVID-19 pandemic will have on futurecurrent operations, financial position,our workforce, or results of operations, and cash flows.operations. 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,pandemic and the continued spreadresulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome 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 withfuture proceedings before our respective state regulatory commissions to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses.

17

Based on the status of our COVID-19 regulatory dockets, communications with our state regulatory commissions, and policies and practices in each of our jurisdictions, we believe each of our state regulatory commissions will allow us to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses, while balancing the impact on our customers’ bills.bills and our operating cash flows. 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, 20202021 in light of the COVID-19 pandemic.pandemic and Note 2, "Regulatory Accounting," for the amount of net incremental COVID-19 costs deferred on our balance sheet.

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.

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.

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:Recently Adopted: In December 2019,On January 1, 2021, the FASB issuedCompany adopted Accounting Standards Update (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 isdid 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 model for recognizing credit losses on financial instruments based on an estimate of current expected losses, requiring immediate recognition of credit losses expected over the life of a financial instrument. The Company determined the impacts of this standard on the allowance for credit losses on its financial instruments, primarily accounts receivable.  As of January 1, 2020, the Company recorded increases to the allowance for uncollectible accounts for late fees and other receivable amounts of $1.6 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, 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 an allowance for uncollectible accounts. Effective January 1, 2020, theThe current expected credit loss (CECL) model wasis applied to receivables for purposes of calculating the allowance for uncollectible accounts. This 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.  Factors in determining credit loss include historical collection, write-off experience, and management's assessment of collectibilitycollectability from customers, including current conditions, reasonable forecasts, and expectations of future collectibilitycollectability and collection efforts. Management continuously assesses the collectibilitycollectability of receivables and adjusts estimates based on actual experience and future expectations based on economic indicators.indicators, collection efforts and other factors.  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 allowance for uncollectible accounts when the customer accounts are no longer in service and these balances are deemed to be uncollectible.

As of March 31, 2020,2021, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the related economic downturn to date.downturn. This evaluation included an analysis of collection and customer payment trends, in 2020, economic conditions, delinquency statistics, aging-based quantitative assessments, the impact on residential customer bills because of energy usage and change in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, and the impacts ofCOVID-19 developments, including any potential federal governmental pandemic relief programs for our customers and the expansion of unemployment benefitsbenefit 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. This evaluation has shown that our operating companies have experienced an increase in aged receivables and lower cash collections from customers because of the moratorium on disconnections and the economic slowdown resulting from the COVID-19 pandemic. Based upon the evaluation performed, in the first quarter of 2021, management increased the allowance for uncollectible accounts for amounts incurred as a result of COVID-19 by $15.5 million for Eversource ($5.6 million for CL&P, $3.7 million for NSTAR Electric, and $6.2 million at our natural gas businesses). These COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. As of March 31, 2021, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $47.0 million at Eversource ($8.4 million at CL&P, $14.7 million at NSTAR Electric, $2.3 million at PSNH, and $21.6 million at our natural gas businesses).

Management concluded that the reserve balance as of March 31, 20202021 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 and EGMA 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, usingManagement uses 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.

18

The total allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The activity in the allowance for uncollectible accounts by portfolio segment is as follows:
EversourceCL&PNSTAR ElectricPSNH
(Millions of Dollars)Hardship AccountsRetail (Non-Hardship),
Wholesale, and Other Receivables		Total AllowanceHardship AccountsRetail (Non-Hardship),
Wholesale and Other Receivables		Total AllowanceHardship AccountsRetail (Non-Hardship),
Wholesale, and Other Receivables		Total AllowanceTotal Allowance
Three Months Ended 2021
Beginning Balance$194.8 $164.1 $358.9 $129.1 $28.3 $157.4 $39.7 $51.9 $91.6 $17.2 
Uncollectible Expense0 16.3 16.3 0 3.8 3.8 0 3.9 3.9 1.2 
Uncollectible Costs
   Deferred (1)
5.4 27.1 32.5 11.9 7.5 19.4 (8.5)8.4 (0.1)1.2 
Write-Offs(3.3)(16.7)(20.0)(2.9)(4.0)(6.9)(0.1)(7.5)(7.6)(2.5)
Recoveries Collected0.4 3.6 4.0 0.3 1.1 1.4 0 1.5 1.5 0.2 
Ending Balance$197.3 $194.4 $391.7 $138.4 $36.7 $175.1 $31.1 $58.2 $89.3 $17.3 
 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, 202021.6
 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 Collected0.2
 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



Three Months Ended 2020
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 Expense0 11.4 11.4 0 3.2 3.2 0 3.7 3.7 0.7 
Uncollectible Costs
   Deferred (1)
11.8 8.5 20.3 12.9 1.8 14.7 (3.4)3.4 0 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 Collected0.2 3.1 3.3 0.2 0.6 0.8 0 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 customer and other accounts receivable is included in Operations and Maintenance expense on the statements of 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) (1) The current period provision for expected credit losses for hardship accounts and other customer receivables that are ultimately recovered in rates is deferred as a regulatory cost on the balance sheets.sheets, as this amount is ultimately
recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible
amounts related to COVID-19.

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) 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, equity method investments, and AROs, and in the estimatedvaluation of the acquisition of CMA's assets in 2020. The fair value measurement guidance was also applied in estimating the 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. 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 10, "Fair Value of Financial Instruments," and Note 17, "Acquisition of Assets of Columbia Gas of Massachusetts," to the financial statements.

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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, 2021March 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Pension, SERP and PBOP Non-Service
   Income Components		$20.1 $2.7 $10.1 $2.7 $12.7 $1.1 $7.9 $1.9 
AFUDC Equity9.2 1.7 6.2 0.6 10.6 3.9 5.0 1.5 
Equity in Earnings of Unconsolidated Affiliates3.7 0 0.1 0 4.0 0 0.1 0 
Investment (Loss)/Income(0.6)0.4 0.2 0.1 (4.3)(3.4)(1.3)(0.5)
Interest Income1.5 0.1 0.1 0.7 0.7 0.3 0.1 0.3 
Other0.3 0 0.1 0.1 0.4 0 0.4 0 
Total Other Income, Net$34.2 $4.9 $16.8 $4.2 $24.1 $1.9 $12.2 $3.2 
 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 Equity10.6
 3.9
 5.0
 1.5
 10.9
 2.6
 4.0
 0.2
Equity in Earnings of Unconsolidated Affiliates4.0
 —
 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 Income0.7
 0.3
 0.1
 0.3
 6.5
 0.4
 0.2
 5.9
Other0.4
 —
 0.4
 —
 —
 (0.2) —
 —
Total Other Income, Net$24.1
 $1.9
 $12.2
 $3.2
 $31.0
 $3.9
 $11.1
 $7.0


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, 2021March 31, 2020
Eversource$48.6 $43.1 
CL&P39.2 35.5 
 For the Three Months Ended
(Millions of Dollars)March 31, 2020 March 31, 2019
Eversource$43.1
 $45.0
CL&P35.5
 36.2




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. 

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, 2021As of March 31, 2020
Eversource$262.9 $273.7 
CL&P70.9 85.0 
NSTAR Electric68.2 70.2 
PSNH23.5 37.9 
(Millions of Dollars)As of March 31, 2020 As of March 31, 2019
Eversource$273.7
 $336.3
CL&P85.0
 121.9
NSTAR Electric70.2
 83.2
PSNH37.9
 30.4


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, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Cash as reported on the Balance Sheets$34.1 $9.3 $0.1 $2.0 $106.6 $90.8 $0.1 $0.1 
Restricted cash included in:
Special Deposits58.4 8.6 17.2 22.2 73.6 8.7 17.2 36.8 
Marketable Securities38.4 0.4 0.1 0.6 41.2 0.3 0.1 0.6 
Other Long-Term Assets44.7 0 0 3.2 43.6 0 0 2.1 
Cash and Restricted Cash as reported on the
    Statements of Cash Flows
$175.6 $18.3 $17.4 $28.0 $265.0 $99.8 $17.4 $39.6 
 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 Deposits39.0
 4.7
 6.2
 16.6
 52.5
 4.6
 6.2
 32.5
Marketable Securities44.1
 0.3
 0.1
 0.6
 46.0
 0.4
 —
 0.6
Other Long-Term Assets3.2
 —
 —
 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


Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash 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 obligations.

H.     Pending Acquisition of Restricted cash included in Other Long-Term Assets of Columbia Gas of Massachusetts
On February 26, 2020, Eversourceincludes $41.5 million related to an Energy Relief Fund for energy efficiency and NiSource Inc. entered intoclean energy measures in the Merrimack Valley, and 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 asadditional energy efficiency program established under the terms of the closing date.EGMA settlement agreement.

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.


20

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, 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 includingand the regulatory assets.assets that have been recorded.  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 applicable 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, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHEversourceCL&PNSTAR
Electric		PSNH
Benefit Costs$2,733.6 $618.5 $674.2 $262.3 $2,794.2 $632.3 $690.0 $267.6 
Income Taxes, Net751.7 459.1 111.4 17.4 747.1 458.9 110.4 15.2 
Securitized Stranded Costs511.3 0 0 511.3 522.1 0 0 522.1 
Storm Restoration Costs, Net789.5 529.8 184.3 75.4 765.6 515.1 186.4 64.1 
Regulatory Tracker Mechanisms856.1 284.3 360.5 87.5 850.5 246.6 332.2 95.3 
Derivative Liabilities293.4 293.1 0 0 296.3 293.1 0 0 
Goodwill-related310.5 0 266.5 0 314.7 0 270.2 0 
Asset Retirement Obligations114.9 32.6 53.8 3.9 118.4 32.1 58.6 3.9 
Other Regulatory Assets151.6 32.6 53.7 19.4 161.0 33.7 56.1 20.9 
Total Regulatory Assets6,512.6 2,250.0 1,704.4 977.2 6,569.9 2,211.8 1,703.9 989.1 
Less:  Current Portion1,081.1 386.1 430.4 107.3 1,076.6 345.6 399.9 115.9 
Total Long-Term Regulatory Assets$5,431.5 $1,863.9 $1,274.0 $869.9 $5,493.3 $1,866.2 $1,304.0 $873.2 
 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, Net727.2
 458.9
 108.5
 12.8
 725.8
 458.8
 108.0
 12.8
Securitized Stranded Costs554.5
 —
 —
 554.5
 565.3
 —
 —
 565.3
Storm Restoration Costs, Net497.6
 251.6
 183.0
 63.0
 540.6
 274.6
 200.6
 65.4
Regulatory Tracker Mechanisms551.5
 191.0
 227.4
 84.6
 411.5
 78.3
 207.1
 65.8
Derivative Liabilities335.2
 333.8
 —
 —
 334.5
 329.2
 —
 —
Goodwill-related327.3
 —
 281.0
 —
 331.5
 —
 284.6
 —
Asset Retirement Obligations99.3
 31.2
 51.5
 3.7
 97.2
 30.8
 50.3
 3.6
Other Regulatory Assets136.5
 24.8
 61.6
 13.8
 125.4
 25.2
 55.2
 14.7
Total Regulatory Assets5,563.4
 1,819.6

1,529.3

946.3

5,514.7
 1,735.9

1,535.6

945.8
Less:  Current Portion785.1
 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


Regulatory Costs in Long-Term Assets:  Eversource's regulated companies had $171.3$215.5 million (including $82.6$98.0 million for CL&P, $50.3$66.5 million for NSTAR Electric and $16.9$3.7 million for PSNH) and $146.0$196.9 million (including $51.8$84.1 million for CL&P, $55.7$69.8 million for NSTAR Electric and $18.0$4.3 million for PSNH) of additional regulatory costs as of March 31, 20202021 and December 31, 2019,2020, 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.

As of March 31, 2021 and December 31, 2020, these regulatory costs included net incremental COVID-19 related costs deferred of $33.8 million and $24.0 million at Eversource, respectively, of which $27.3 million and $15.8 million, respectively, related to non-tracked uncollectible expense and the remainder related to facilities and fleet cleaning, sanitizing costs and supplies for personal protective equipment. Net incremental COVID-19 related costs deferred at CL&P, NSTAR Electric and PSNH totaled $8.8 million, $13.6 million and $0.6 million, respectively, as of March 31, 2021, and $4.7 million, $11.9 million and $1.1 million, respectively, as of December 31, 2020, and primarily related to non-tracked uncollectible expense deferred.

Regulatory Liabilities:  The components of regulatory liabilities were as follows:
 As of March 31, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHEversourceCL&PNSTAR
Electric		PSNH
EDIT due to Tax Cuts and Jobs Act of 2017$2,762.3 $1,008.1 $1,037.3 $366.5 $2,778.6 $1,010.7 $1,044.0 $371.5 
Cost of Removal644.2 105.1 372.1 16.4 624.8 98.4 363.6 12.9 
Benefit Costs79.1 0 68.7 0 83.6 0 72.5 0 
Regulatory Tracker Mechanisms467.0 175.2 165.2 40.4 366.5 148.9 139.7 47.8 
AFUDC - Transmission77.8 44.3 33.5 0 76.8 44.6 32.2 0 
Other Regulatory Liabilities353.4 73.3 70.1 11.2 309.9 39.5 63.2 9.8 
Total Regulatory Liabilities4,383.8 1,406.0 1,746.9 434.5 4,240.2 1,342.1 1,715.2 442.0 
Less:  Current Portion520.8 202.4 190.5 48.0 389.4 137.2 164.8 58.8 
Total Long-Term Regulatory Liabilities$3,863.0 $1,203.6 $1,556.4 $386.5 $3,850.8 $1,204.9 $1,550.4 $383.2 
 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 Removal579.3
 77.4
 337.2
 14.8
 559.8
 64.6
 330.6
 16.3
Benefit Costs80.1
 —
 68.6
 —
 84.5
 —
 72.2
 —
Regulatory Tracker Mechanisms412.5
 121.7
 189.8
 64.1
 325.1
 94.8
 165.6
 57.0
AFUDC - Transmission74.4
 45.7
 28.7
 —
 73.2
 46.0
 27.2
 —
Other Regulatory Liabilities130.6
 34.4
 47.4
 10.7
 132.0
 19.6
 59.0
 13.1
Total Regulatory Liabilities4,108.1
 1,299.0

1,735.6

481.0

4,019.2
 1,247.8

1,725.8

479.2
Less:  Current Portion439.9
 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


21


Recent Regulatory Developments:

CL&P Tropical Storm Isaias Costs: On August 4, 2020, Tropical Storm Isaias caused catastrophic damage to our electric distribution system, which resulted in significant numbers and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. PURA will investigate the prudence of costs incurred by CL&P to restore service in response to Tropical Storm Isaias. That investigation is expected to occur either in a separate proceeding not yet initiated or as part of CL&P’s next rate review proceeding. Tropical Storm Isaias resulted in deferred storm restoration costs of approximately $231 million at CL&P and $249 million at Eversource as of March 31, 2021. The estimated cost of restoration will change as additional cost information becomes available and final storm costs are deferred or capitalized. Although PURA found that CL&P’s performance in its preparation for and response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. CL&P continues to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm costs to have a material impact on the financial position or results of operations of Eversource or CL&P.

CL&P Tropical Storm Isaias Response Investigation: On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain applicable storm performance standards and was imprudent in certain instances. See Note 9G, “Commitments and Contingencies - CL&P Tropical Storm Isaias Response Investigation,” for an estimated assessment by PURA accrued and recorded within current regulatory liabilities on CL&P’s balance sheet and for further information.

3.    PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize property, plant and equipment by asset category:
EversourceAs of March 31, 2021As of December 31, 2020
(Millions of Dollars)
Distribution - Electric$16,941.8 $16,703.2 
Distribution - Natural Gas6,158.4 6,111.2 
Transmission - Electric12,099.4 11,954.0 
Distribution - Water1,749.0 1,743.1 
Solar200.4 201.5 
Utility37,149.0 36,713.0 
Other (1)
1,365.2 1,269.0 
Property, Plant and Equipment, Gross38,514.2 37,982.0 
Less:  Accumulated Depreciation  
Utility   (8,628.0)(8,476.3)
Other(499.0)(477.6)
Total Accumulated Depreciation(9,127.0)(8,953.9)
Property, Plant and Equipment, Net29,387.2 29,028.1 
Construction Work in Progress1,878.6 1,854.4 
Total Property, Plant and Equipment, Net$31,265.8 $30,882.5 
As of March 31, 2021As of December 31, 2020
EversourceAs of March 31, 2020 As of December 31, 2019
(Millions of Dollars) (Millions of Dollars)CL&PNSTAR
Electric		PSNHCL&PNSTAR
Electric		PSNH
Distribution - Electric$16,117.4
 $15,880.0
Distribution - Electric$6,919.2 $7,640.4 $2,422.5 $6,820.7 $7,544.4 $2,378.4 
Distribution - Natural Gas3,984.2
 3,931.1
Transmission - Electric11,059.4
 10,958.4
Transmission - Electric5,561.0 4,782.9 1,757.2 5,512.0 4,701.3 1,742.4 
Distribution - Water1,730.2
 1,726.5
Solar200.5
 200.2
Solar0 200.4 0 0 201.5 0 
Utility33,091.7
 32,696.2
Other (1)
1,073.2
 1,025.6
Property, Plant and Equipment, Gross34,164.9
 33,721.8
Property, Plant and Equipment, Gross12,480.2 12,623.7 4,179.7 12,332.7 12,447.2 4,120.8 
Less: Accumulated Depreciation   Less: Accumulated Depreciation(2,523.8)(3,130.9)(862.7)(2,475.4)(3,074.1)(848.9)
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, Net26,184.5
 25,850.9
Property, Plant and Equipment, Net9,956.4 9,492.8 3,317.0 9,857.3 9,373.1 3,271.9 
Construction Work in Progress1,856.9
 1,734.6
Construction Work in Progress388.4 759.5 95.8 377.3 750.0 102.4 
Total Property, Plant and Equipment, Net$28,041.4
 $27,585.5
Total Property, Plant and Equipment, Net$10,344.8 $10,252.3 $3,412.8 $10,234.6 $10,123.1 $3,374.3 

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

 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 - Electric5,094.1
 4,444.7
 1,515.8
 5,043.0
 4,411.9
 1,498.7
Solar—
 200.5
 —
 —
 200.2
 —
Property, Plant and Equipment, Gross11,701.9
 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, Net9,288.3
 8,970.8
 3,004.8
 9,142.8
 8,880.5
 2,969.9
Construction Work in Progress472.6
 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
22


(1)
These assets are primarily comprised of computer software, hardware and equipment at Eversource 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, 2021As of December 31, 2020
(Millions of Dollars)Fair Value HierarchyCommodity 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&PLevel 3$13.9 $(0.4)$13.5 $13.7 $(0.4)$13.3 
Long-Term Derivative Assets:    
CL&PLevel 358.5 (1.8)56.7 58.7 (1.8)56.9 
Current Derivative Liabilities:    
CL&PLevel 3(69.7)0 (69.7)(68.8)0 (68.8)
OtherLevel 2(0.3)0 (0.3)(3.3)0.1 (3.2)
Long-Term Derivative Liabilities:    
CL&PLevel 3(293.6)0 (293.6)(294.5)0 (294.5)
   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
Current Derivative Assets:             
CL&PLevel 3 $12.8
 $(0.4) $12.4
 $12.2
 $(0.4) $11.8
Long-Term Derivative Assets:             
CL&PLevel 3 68.2
 (2.1) 66.1
 67.5
 (2.1) 65.4
Current Derivative Liabilities:             
CL&PLevel 3 (69.6) —
 (69.6) (67.8) —
 (67.8)
OtherLevel 2 (1.4) 0.3
 (1.1) (5.2) —
 (5.2)
Long-Term Derivative Liabilities:             
CL&PLevel 3 (342.7) —
 (342.7) (338.6) —
 (338.6)
OtherLevel 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.

(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 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 capacities of these contracts as of both March 31, 20202021 and December 31, 2019,2020 were 676675 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, 20202021 and December 31, 2019,2020, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of 3.51.2 million and 9.68.9 million MMBtu of natural gas, respectively.

For the three months ended March 31, 20202021 and 2019,2020, there were losses of $18.0$11.1 million and $5.2$18.0 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 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.  

23

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 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, 2021As of December 31, 2020
CL&PRange
Weighted Average (1)
Period CoveredRange
Weighted Average (1)
Period Covered
Capacity Prices$2.59$2.59 per kW-Month2025 - 2026$4.30 —$5.30$4.63 per kW-Month2024 - 2026
Forward Reserve Prices$0.54 —$0.90$0.72 per kW-Month2021 - 2024$0.54 —$0.90$0.72 per kW-Month2021 - 2024
 As of March 31, 2020 As of December 31, 2019
CL&PRange 
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 Prices0.80
 — 1.90 1.35
 per kW-Month 2020 - 2024 0.80
 — 1.90 per kW-Month 2020 - 2024

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

(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 1.56.6 percent through 1310.9 percent, or a weighted average of 11.99.8 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&PFor the Three Months Ended March 31,CL&PFor the Three Months Ended March 31,
(Millions of Dollars)2020 2019(Millions of Dollars)20212020
Derivatives, Net:   Derivatives, Net:  
Fair Value as of Beginning of Period$(329.2) $(356.5)Fair Value as of Beginning of Period$(293.1)$(329.2)
Net Realized/Unrealized Losses Included
in Regulatory Assets
(16.4) (5.3)
Net Realized/Unrealized Losses Included
in Regulatory Assets
(12.5)(16.4)
Settlements11.8
 8.7
Settlements12.5 11.8 
Fair Value as of End of Period$(333.8) $(353.1)Fair Value as of End of Period$(293.1)$(333.8)


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, 20202021 and December 31, 20192020 was $34.8$39.2 million and $45.7$40.9 million, respectively.  For the three months ended March 31, 20202021 and 2019,2020, there were unrealized lossesgains of $9.1$1.1 million and unrealized gainslosses of $1.0$9.1 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 $162.0$203.3 million and $182.8$205.1 million as of March 31, 20202021 and December 31, 2019,2020, 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, 2021As of December 31, 2020
Eversource
(Millions of Dollars)
Amortized CostPre-Tax
Unrealized Gains		Pre-Tax
Unrealized
Losses		Fair ValueAmortized CostPre-Tax
Unrealized Gains		Pre-Tax
Unrealized
Losses		Fair Value
Debt Securities$214.3 $5.4 $(0.4)$219.3 $213.1 $11.2 $(0.1)$224.2 
 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


Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of $198.7$186.9 million and $198.1$192.5 million as of March 31, 20202021 and December 31, 2019,2020, respectively.

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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, 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 and no credit losses for the three months ended March 31, 20202021 and 2019,2020, and no allowance for credit losses as of March 31, 2020. 2021. Factors considered in determining whether a credit loss exists include adverse conditions specifically affecting the issuer, the payment history, ratings and rating changes of the 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, 2020,2021, the contractual maturities of available-for-sale debt securities were as follows:  
Eversource
(Millions of Dollars)
Amortized CostFair Value
Less than one year (1)
$40.4 $40.4 
One to five years60.6 62.3 
Six to ten years52.4 53.3 
Greater than ten years60.9 63.3 
Total Debt Securities$214.3 $219.3 
Eversource
(Millions of Dollars)
Amortized Cost Fair Value
Less than one year (1)
$56.5
 $56.6
One to five years40.1
 41.7
Six to ten years38.6
 41.4
Greater than ten years89.0
 94.8
Total Debt Securities$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.

(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, 2021As of December 31, 2020
Level 1:    
Mutual Funds and Equities$242.5 $246.0 
Money Market Funds38.4 41.2 
Total Level 1$280.9 $287.2 
Level 2:  
U.S. Government Issued Debt Securities (Agency and Treasury)$93.9 $72.9 
Corporate Debt Securities58.5 63.8 
Asset-Backed Debt Securities10.9 11.9 
Municipal Bonds6.8 24.0 
Other Fixed Income Securities10.8 10.4 
Total Level 2$180.9 $183.0 
Total Marketable Securities$461.8 $470.2 
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 Funds44.1
 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 Securities45.9
 44.0
Asset-Backed Debt Securities13.7
 12.9
Municipal Bonds22.2
 26.7
Other Fixed Income Securities7.7
 7.7
Total Level 2$190.4
 $188.1
Total Marketable Securities$431.3
 $462.6


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$2.00 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, 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 6, 2024. TheEversource parent and EGMA have a short-term $550 million revolving credit facility, serveswhich terminates on October 20, 2021. These revolving credit facilities serve to backstop Eversource parent's $1.45$2.00 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 6, 2024. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.  


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The amount of borrowings outstanding and available under the commercial paper programs were as follows:
Borrowings Outstanding as ofAvailable Borrowing Capacity as ofWeighted-Average Interest Rate as of
March 31, 2021December 31, 2020March 31, 2021December 31, 2020March 31, 2021December 31, 2020
(Millions of Dollars)
Eversource Parent Commercial Paper Program$1,475.7 $1,054.3 $524.3 $945.7 0.23 %0.25 %
NSTAR Electric Commercial Paper Program443.5 195.0 206.5 455.0 0.13 %0.16 %
 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)     
Eversource Parent Commercial Paper Program$738.4
 $1,224.9
 $711.6
 $225.1
 3.38% 1.98%
NSTAR Electric Commercial Paper Program88.0
 10.5
 562.0
 639.5
 1.25% 1.63%


There were 0 borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, 20202021 or December 31, 2019.2020.

On May 15, 2020, CL&P and PSNH entered into uncommitted line of credit agreements, which will expire by May 14, 2021. The CL&P agreements total $450 million and the PSNH agreements total $300 million. There are 0 borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of March 31, 2021.

Amounts outstanding under the commercial paper programs and revolving credit facilities are included in Notes Payable and 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 NSTAR GasAquarion Water Company of Connecticut long-term debt issuancesissuance in May 2020, $25.0April 2021, $40.0 million of the current portion of long-term debt and $165.0$46.8 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of March 31, 2020.2021.

The Company expects the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with 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 in meeting their short-term borrowing needs. 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, 2020,2021, there were intercompany loans from Eversource parent to CL&P of $219.0$32.1 million, to PSNH of $84.7$196.8 million, and to a subsidiary of NSTAR Electric of $38.4$22.5 million. As of December 31, 2019,2020, there were intercompany loans from Eversource parent to CL&P of $63.8 million, to PSNH of $27.0$46.3 million, and to a subsidiary of NSTAR Electric of $30.3$21.3 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.

Long-Term Debt Issuance Authorization: Authorizations:On January 27, 2020, the DPUFebruary 10, 2021, PURA approved NSTAR Gas'Aquarion Water Company of Connecticut’s request for authorization to issue up to $270$100 million in long-term debt through December 31, 2021. On March 18, 2021, PSNH filed an application with the NHPUC for authorization to issue up to $350 million in long-term debt through December 31, 2021. On March 22, 2021, CL&P filed an application with PURA for authorization to issue up to $350 million in long-term debt through December 31, 2021.On March 31, 2021, the DPU approved NSTAR Electric's request for authorization to issue up to $1.6 billion in long-term debt through December 31, 2023.

Long-Term Debt:Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments:
(Millions of Dollars)Issuance/(Repayment)Issue Date or Repayment DateMaturity DateUse of Proceeds for Issuance/
Repayment Information
PSNH:
4.05% Series Q First Mortgage Bonds$(122.0)March 2021June 2021Paid on par call date in advance of maturity date
Other:
Eversource Parent 2.50% Series I Senior Notes(450.0)February 2021March 2021Paid on par call date in advance of maturity date
Eversource Parent 2.55% Series S Senior Notes350.0 March 2021March 2031Repaid short-term debt, including short-term debt used to redeem Series I Senior Notes
Aquarion Water Company of Connecticut 3.31% Senior
   Notes
100.0 April 2021April 2051Repaid 5.50% Notes, redeemed short-term debt, paid capital expenditures and working capital
Aquarion Water Company of Connecticut 5.50% Notes(40.0)April 2021April 2021Paid at maturity
(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 Notes350.0
 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 Bonds75.0
 May 2020 May 2025 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds115.0
 May 2020 May 2050 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes


In April 2021, PSNH provided a redemption notice to the holders of the PSNH 3.20% Series R First Mortgage Bonds that PSNH will redeem the $160 million of bonds on June 1, 2021, the par call date, in advance of the September 1, 2021 maturity date. In April 2021, NSTAR Electric provided a redemption notice to the holders to the NSTAR Electric 3.50% Series F Senior Notes that NSTAR Electric will redeem the $250 million of senior notes on June 15, 2021, the par call date, in advance of the September 15, 2021 maturity date.

7.    RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

Rate Reduction Bonds: OnIn 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 are paid semi-annually, beginning on February 1, 2019. The RRBs were issued pursuant to a finance order issued by the NHPUC onin January 30, 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.


26


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, 2020 As of December 31, 2019
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
Securitized Stranded Cost (included in Regulatory Assets)554.5
 565.3
Other Regulatory Liabilities (included in Regulatory Liabilities)6.0
 5.6
Accrued Interest (included in Other Current Liabilities)3.3
 8.6
Rate Reduction Bonds - Current Portion43.2
 43.2
Rate Reduction Bonds - Long-Term Portion518.5
 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)
Balance Sheet:As of March 31, 2021As of December 31, 2020
Restricted Cash - Current Portion (included in Current Assets)$21.9 $36.8 
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)3.2 2.1 
Securitized Stranded Cost (included in Regulatory Assets)511.3 522.1 
Other Regulatory Liabilities (included in Regulatory Liabilities)11.5 9.1 
Accrued Interest (included in Other Current Liabilities)3.1 8.0 
Rate Reduction Bonds - Current Portion43.2 43.2 
Rate Reduction Bonds - Long-Term Portion475.3 496.9 

(Millions of Dollars)
Income Statement:
For the Three Months Ended
March 31, 2021March 31, 2020
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)$10.8 $10.8 
Interest Expense on RRB Principal (included in Interest Expense)4.7 5.0 

8.    PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION

Eversource provides defined benefit retirement plans (Pension Plans) that cover eligible employees.  In addition to the Pension Plans, Eversource maintains non-qualified defined benefit retirement 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) 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/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit 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 Cost44.3
 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 Loss49.3
 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 AllocationsN/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 Cost54.2
 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 Loss35.8
 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 AllocationsN/A
 $7.8
 $3.0
 $2.4
 N/A
 $(0.1) $(0.2) $(0.1)


 Pension and SERPPBOP
 For the Three Months Ended March 31, 2021For the Three Months Ended March 31, 2021
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Service Cost$21.3 $6.3 $4.0 $2.2 $3.5 $0.6 $0.6 $0.3 
Interest Cost32.6 7.3 6.7 3.6 4.4 0.8 1.1 0.5 
Expected Return on Plan Assets(108.9)(21.6)(26.9)(11.9)(19.7)(2.6)(9.3)(1.5)
Actuarial Loss61.6 13.0 15.5 4.9 2.6 0.4 0.6 0.3 
Prior Service Cost/(Credit)0.3 0 0.1 0 (5.3)0.2 (4.2)0.1 
Total Net Periodic Benefit Expense/(Income)$6.9 $5.0 $(0.6)$(1.2)$(14.5)$(0.6)$(11.2)$(0.3)
Intercompany AllocationsN/A$1.3 $1.5 $0.5 N/A$(0.3)$(0.4)$(0.1)
 Pension and SERPPBOP
 For the Three Months Ended March 31, 2020For the Three Months Ended March 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHEversourceCL&PNSTAR
Electric		PSNH
Service Cost$19.6 $5.7 $3.8 $2.2 $2.6 $0.5 $0.6 $0.2 
Interest Cost44.3 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 Loss49.3 10.0 13.3 4.1 2.1 0.4 0.7 0.1 
Prior Service Cost/(Credit)0.3 0 0.1 0 (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 AllocationsN/A$1.9 $1.9 $0.6 N/A$(0.4)$(0.4)$(0.2)

Eversource Contributions: Eversource currently expects to make contributions of $180 million to the Pension Plans in 2021, of which $99 million and $30 million will be contributed by CL&P and NSTAR Electric, respectively.
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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, 2021As of December 31, 2020
Number of SitesReserve
(in millions)		Number of SitesReserve
(in millions)
Eversource62 $100.0 63 $102.4 
CL&P14 11.1 15 12.3 
NSTAR Electric12 4.2 12 4.7 
PSNH9 7.0 9 7.1 
 As of March 31, 2020 As of December 31, 2019
 Number of Sites 
Reserve
(in millions)
 Number of Sites 
Reserve
(in millions)
Eversource55
 $79.1
 57
 $81.0
CL&P15
 11.8
 15
 11.4
NSTAR Electric13
 6.2
 15
 8.0
PSNH9
 7.4
 9
 7.5


Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured natural 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 $67.4$91.5 million and $67.9$92.2 million as of March 31, 20202021 and December 31, 2019,2020, 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
The following is an update to the current status of long-term contractual arrangements set forth in Note 13B of the Eversource 2020 Form 10-K.

Renewable Energy: Renewable energy contracts include non-cancelable commitments under contracts of NSTAR Electric for the purchase of energy and RECs from renewable energy facilities.
NSTAR Electric      
(Millions of Dollars)20212022202320242025ThereafterTotal
Renewable Energy$72.7 $100.0 $227.4 $338.3 $345.2 $6,516.1 $7,599.7 

The table has been updated to include long-term commitments of NSTAR Electric pertaining to the Massachusetts Clean Energy 83D contract, for which construction has commenced in 2021. Estimated costs under this contract are expected to begin in 2023 and range between $150 million and $415 million per year under a 20-year contract, totaling approximately $6.7 billion.

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. Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications. 

Guarantees issued on behalf of unconsolidated entities, including equity method offshore wind investments, for which Eversource parent is the guarantor, are recorded at fair value as a liability on the balance sheet at the inception of the guarantee. Eversource regularly reviews performance risk under these guarantee arrangements, 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. The fair value of guarantees issued on behalf of unconsolidated entities are recorded within Other Long-Term Liabilities on the balance sheet, and was $0.5 million as of March 31, 2021.
28


The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties as of March 31, 2020:2021:  
Company (Obligor)DescriptionMaximum Exposure
(in millions)		Expiration Dates
North East Offshore LLC
Construction-related purchase agreements with third-party contractors (1)
$29.3 
 (1)
Eversource Investment LLC
Funding and indemnification obligations of North East Offshore LLC (2)
0 
 (2)
Sunrise Wind LLC
OREC capacity production (3)
2.2 
 (3)
South Fork Wind, LLCTransmission interconnection1.7 —
Bay State Wind LLCReal estate purchase2.5 2021
Various
Surety bonds (4)
57.3 2021 - 2023
Rocky River Realty Company and
   Eversource Service		Lease payments for real estate4.8 2024
Company Description 
Maximum Exposure
(in millions)
 Expiration Dates
Various 
Surety Bonds (1)
 $30.0
 2020 - 2023
Rocky River Realty Company and Eversource Service Lease Payments for Real Estate 6.1
 2024
Bay State Wind LLC Real Estate Purchase 2.5
 2020
Sunrise Wind LLC 
Offshore Wind (2)
 2.2
 -


(1)(1)    Eversource parent issued guarantees on behalf of its 50 percent-owned affiliate, North East Offshore LLC (NEO), under which Eversource parent agreed to guarantee 50 percent of NEO’s performance of obligations under certain purchase agreements with third-party contactors, in an amount not to exceed $1.3 billion with an expiration date in 2025. Eversource parent also issued a separate guarantee to Ørsted on behalf of NEO, under which Eversource parent agreed to guarantee 50 percent of NEO’s payment obligations under certain offshore wind project construction-related agreements with Ørsted in an aggregate amount not to exceed $62.5 million. Any amounts paid under this guarantee to Ørsted will count toward, but not increase, the maximum amount of the Funding Guarantee described in Note 2, below. The guarantee expires upon the full performance of the guaranteed obligations.    
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.

C.
(2)    Eversource parent issued a guarantee (Funding Guarantee) on behalf of Eversource Investment LLC (EI), its wholly-owned subsidiary that holds a 50 percent ownership interest in NEO, under which Eversource parent agreed to guarantee certain funding obligations and certain indemnification payments of EI under the Amended and Restated Limited Liability Company Operating Agreement of NEO, in an amount not to exceed $910 million. The guaranteed obligations include payment of EI's funding obligations during the construction phase of NEO’s underlying offshore wind projects and indemnification obligations associated with third party credit support for its investment in NEO. Eversource parent’s obligations under the Funding Guarantee expire upon the full performance of the guaranteed obligations.

(3)    Eversource parent issued a guarantee on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guarantee 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 guarantee expires upon the full performance of the guaranteed obligations.    

(4)    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. 

Letter of Credit: On September 16, 2020, Eversource parent entered into a guarantee on behalf of EI, which holds Eversource's investments in offshore wind-related equity method investments, under which Eversource parent would guarantee EI's obligations under a letter of credit facility with a financial institution that EI may request in an aggregate amount of up to approximately $25 million.

D.     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 waste disposal contracts between the Yankee Companies and the DOE. The court previously awarded the Yankee Companies damages for Phases I, II, III and IIIIV of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2012,2016, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase IVV Damages - On May 22, 2017,March 25, 2021, each of the Yankee Companies filed a fourthfifth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies soughtare seeking 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 20132017 to 20162020 (DOE Phase IV)V). 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. 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 contested damages. The Yankee Companies received the $0.5 million payment in July 2019.
29

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 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 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 their utility customers. Also, in December 2019, CYAPC paid $29.0 million to the DOE to partially settle its pre-1983 spent nuclear fuel obligation.

D.E.    FERC ROE Complaints
Four separate complaints 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). 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) 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).

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, 20202021 and December 31, 2019.2020. 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, 20202021 and December 31, 2019.2020.

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. 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 illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

If the results of 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. 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 concerningOpinion No. 569 affecting the two pending transmission ROEs forROE complaints against the Midcontinent ISO (MISO) transmission owners, (MISO). In that order,in which FERC adopted anothera 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.ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed a Supplemental Paper Hearing Brief and a Motion to supplement the recordsupplementary materials in the NETO ROE docketsNETOs' four pending cases to respond to thethis new methodology proposed inbecause of the MISO order, as there is uncertainty to whether it may be appliedof the applicability to the NETOs’ cases.

On JanuaryMay 21, 2020, the FERC issued anits order granting rehearing for further consideration to give the FERC more time to actin Opinion No. 569-A on the substantive issuesrehearing of the MISO ROE proceedings. Further changes totransmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. Various parties appealed the MISO transmission owners' opinion. On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC are possible as a result ofin its October 16, 2018 order to determine the argumentsNETOs' base ROEs in both the MISO and NETO proceedings.its four pending cases.

Given the significant uncertainty relatingregarding the applicability of the FERC opinions in the MISO transmission owners' two complaint cases to the October 2018 FERC 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 the NETO complaints or the outcome of theNETOs' pending four complaints andcomplaint cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time. Further, the CompanyAs well, Eversource cannot reasonably estimate a range of any gain or loss for any of the four complaint proceedings.proceedings at this time.

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.

A change of 10 basis 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.

E.F.    Eversource and NSTAR Electric Boston Harbor Civil Action
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 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.
30


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. Construction of the new distribution cable was completed in August 2019 and removal of the portions of the existing cable 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 subsequently, such litigation is expected to bethen dismissed with prejudice.

G.    CL&P Tropical Storm Isaias Response Investigation
In August 2020, PURA opened a docket to investigate the preparation for and response to Tropical Storm Isaias by Connecticut utilities, including CL&P. On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain applicable storm performance standards and was imprudent in certain instances. Specifically, PURA concluded that CL&P did not satisfy the performance standards for managing its municipal liaison program, timely removing electrical hazards from blocked roads, communicating critical information to its customers, or meeting its obligation to secure adequate external contractor and mutual aid resources in a timely manner. Based on its findings, PURA ordered CL&P to adjust its future rates, in a pending or future rate proceeding, to reflect a monetary penalty in the form of a downward adjustment of 90 basis points in its allowed rate of return on equity (ROE). The decision also requires CL&P to enhance and submit updated emergency response programs incorporating the changes noted within the decision for PURA’s approval by June 30, 2021. PURA explained that additional monetary penalties and further enforcement orders pursuant to Connecticut statute would be considered in a separate proceeding that was initiated on May 6, 2021.
On May 6, 2021, as part of the penalty proceeding, PURA issued a notice of violation that included an assessment of $30 million, consisting of a $28.4 million civil penalty for non-compliance with performance standards to be provided as credits on customer bills and a $1.6 million fine for violations of accident reporting requirements to be paid to the State of Connecticut’s general fund. PURA directed the $28.4 million to be returned to customers beginning on August 1, 2021 through July 31, 2022. The $28.4 million is the maximum statutory penalty amount under applicable Connecticut law in effect at the time of Tropical Storm Isaias, which is 2.5 percent of CL&P’s annual distribution revenues. Management has accrued the $30 million as the best estimate of the liability at this time. As of March 31, 2021, the total liability was recorded as a current regulatory liability on CL&P’s balance sheet and as a charge to Operations and Maintenance expense on the income statement. We believe we have meritorious defenses and intend to vigorously defend CL&P’s position, but do not have a better estimate of CL&P’s ultimate liability at this time. Hearings will occur in this proceeding with a final decision currently anticipated on July 14, 2021. CL&P also intends to appeal the April 28, 2021 PURA decision.

The estimated annual impact of a 90 basis point ROE reduction at CL&P would be a decrease of approximately $31 million of future annual revenues and approximately $21 million of lower annual earnings. The ROE reduction would impact the income statement prospectively, once new rates are established. We cannot estimate the timing or final impact of any potential ROE change at this time.

10.    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:
 EversourceCL&PNSTAR ElectricPSNH
(Millions of Dollars)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
As of March 31, 2021:       
Preferred Stock Not Subject to Mandatory Redemption$155.6 $168.3 $116.2 $123.2 $43.0 $45.1 $0 $0 
Long-Term Debt15,993.9 17,198.2 3,914.7 4,423.9 3,643.8 4,063.7 977.3 1,011.0 
Rate Reduction Bonds518.5 568.0 0 0 0 0 518.5 568.0 
As of December 31, 2020:       
Preferred Stock Not Subject to Mandatory Redemption$155.6 $169.1 $116.2 $123.4 $43.0 $45.7 $0 $0 
Long-Term Debt16,179.1 18,420.1 3,914.8 4,800.9 3,643.2 4,294.0 1,099.1 1,207.0 
Rate Reduction Bonds540.1 603.4 0 0 0 0 540.1 603.4 
 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 Debt14,431.0
 15,177.1
 3,518.1
 3,949.4
 3,642.3
 3,901.2
 951.7
 995.8
Rate Reduction Bonds561.7
 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 Debt14,098.2
 15,170.2
 3,518.1
 4,058.0
 3,342.1
 3,659.9
 951.6
 1,005.7
Rate Reduction Bonds583.3
 625.9
 —
 —
 —
 —
 583.3
 625.9


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


31

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, 2021For the Three Months Ended March 31, 2020
Eversource
(Millions of Dollars)
Qualified
Cash Flow
Hedging
Instruments		Unrealized
Gains/(Losses) on Marketable
Securities		Defined
Benefit Plans		TotalQualified
Cash Flow
Hedging
Instruments		Unrealized
Gains on Marketable
Securities		Defined
Benefit Plans		Total
Balance as of January 1st$(1.4)$1.1 $(76.1)$(76.4)$(3.0)$0.7 $(62.8)$(65.1)
OCI Before Reclassifications0 (0.7)0 (0.7)0 0.2 0 0.2 
Amounts Reclassified from AOCI0.4 0 1.5 1.9 0.2 0 1.6 1.8 
Net OCI0.4 (0.7)1.5 1.2 0.2 0.2 1.6 2.0 
Balance as of March 31st$(1.0)$0.4 $(74.6)$(75.2)$(2.8)$0.9 $(61.2)$(63.1)
 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 AOCI0.2
 —
 1.6
 1.8
 0.3
 —
 1.2
 1.5
Net OCI0.2
 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)


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.

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, 2021 and December 31, 2020Issued as of
 Par ValueMarch 31, 2021December 31, 2020
Eversource$5 380,000,000 357,818,402 357,818,402 
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, 2020 and December 31, 2019 Issued as of
 Par Value  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


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, 20202021 and December 31, 2019,2020, there were 15,407,215 14,384,104 and 15,977,75714,864,379 Eversource common shares held as treasury shares, respectively. As of March 31, 20202021 and December 31, 2019,2020, Eversource common shares outstanding were 336,411,187were 343,434,298 and 329,880,645,342,954,023, respectively.



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. 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.

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, 20202021 and 2019.2020. 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, 20202021 and December 31, 2019.2020. 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.

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," earningsEarnings per share dilution if any, related toin 2020 also included the impact of the 2019 equity forward sale agreement, is determined underwhich was calculated using 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 lesson March 26, 2020. For the numberthree months ended March 31, 2021 and 2020, there were 0 antidilutive share awards excluded from the computation 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.diluted EPS.
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The following table sets forth the components of basic and diluted EPS:
Eversource
(Millions of Dollars, except share information)
For the Three Months Ended
March 31, 2021March 31, 2020
Net Income Attributable to Common Shareholders$366.1 $334.8 
Weighted Average Common Shares Outstanding:  
Basic343,678,243 331,102,237 
Dilutive Effect of:
Share-Based Compensation Awards and Other656,446 747,233 
Equity Forward Sale Agreement0 1,087,683 
Total Dilutive Effect656,446 1,834,916 
Diluted344,334,689 332,937,153 
Basic EPS$1.07 $1.01 
Diluted EPS$1.06 $1.01 
Eversource
(Millions of Dollars, except share information)
For the Three Months Ended
March 31, 2020 March 31, 2019
Net Income Attributable to Common Shareholders$334.8
 $308.7
Weighted Average Common Shares Outstanding:   
Basic331,102,237
 317,624,593
Dilutive Effect of:   
Share-Based Compensation Awards and Other747,233
 691,489
Equity Forward Sale Agreement1,087,683
 —
Total Dilutive Effect1,834,916
 691,489
Diluted332,937,153
 318,316,082
Basic and Diluted EPS$1.01
 $0.97




15.    REVENUES

The following tables present operating revenues disaggregated by revenue source:
For the Three Months Ended March 31, 2021
Eversource
(Millions of Dollars)
Electric
Distribution		Natural Gas
Distribution		Electric
Transmission		Water DistributionOtherEliminationsTotal
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$1,066.0 $466.3 $0 $27.7 $0 $0 $1,560.0 
Commercial559.9 207.6 0 13.8 0 (1.4)779.9 
Industrial83.0 55.9 0 1.0 0 (3.5)136.4 
Total Retail Tariff Sales Revenues1,708.9 729.8 0 42.5 0 (4.9)2,476.3 
Wholesale Transmission Revenues0 0 394.3 0 19.2 (321.0)92.5 
Wholesale Market Sales Revenues149.1 26.4 0 0.8 0 0 176.3 
Other Revenues from Contracts with Customers18.2 1.3 3.4 1.2 323.8 (321.3)26.6 
Total Revenues from Contracts with Customers1,876.2 757.5 397.7 44.5 343.0 (647.2)2,771.7 
Alternative Revenue Programs23.0 22.8 2.7 1.8 0 2.2 52.5 
Other Revenues (1)
1.1 0.2 0.2 0.1 0 0 1.6 
Total Operating Revenues$1,900.3 $780.5 $400.6 $46.4 $343.0 $(645.0)$2,825.8 
For the Three Months Ended March 31, 2020
Eversource
(Millions of Dollars)
Electric
Distribution		Natural Gas
Distribution		Electric
Transmission		Water DistributionOtherEliminationsTotal
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$963.8 $238.0 $0 $27.8 $0 $0 $1,229.6 
Commercial607.0 134.6 0 14.8 0 (1.0)755.4 
Industrial79.8 28.3 0 1.1 0 (3.2)106.0 
Total Retail Tariff Sales Revenues1,650.6 400.9 0 43.7 0 (4.2)2,091.0 
Wholesale Transmission Revenues0 0 336.3 0 17.3 (283.6)70.0 
Wholesale Market Sales Revenues91.0 13.2 0 0.8 0 0 105.0 
Other Revenues from Contracts with Customers21.4 1.4 3.4 1.1 277.3 (276.2)28.4 
Total Revenues from Contracts with Customers1,763.0 415.5 339.7 45.6 294.6 (564.0)2,294.4 
Alternative Revenue Programs38.8 32.2 29.8 1.1 0 (27.4)74.5 
Other Revenues (1)
3.5 0.9 0.2 0.2 0 0 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, 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
Commercial607.0
 134.6
 —
 14.8
 —
 (1.0) 755.4
Industrial79.8
 28.3
 —
 1.1
 —
 (3.2) 106.0
Total Retail Tariff Sales Revenues1,650.6
 400.9
 —
 43.7
 —
 (4.2) 2,091.0
Wholesale Transmission Revenues—
 —
 336.3
 —
 17.3
 (283.6) 70.0
Wholesale Market Sales Revenues91.0
 13.2
 —
 0.8
 —
 —
 105.0
Other Revenues from Contracts with Customers19.1
 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 Customers1,763.0
 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
33

For the Three Months Ended March 31, 2021For the Three Months Ended March 31, 2020
(Millions of Dollars)CL&PNSTAR ElectricPSNHCL&PNSTAR ElectricPSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$545.8 $362.4 $157.8 $489.9 $331.0 $142.9 
Commercial214.2 268.3 77.8 226.4 301.9 79.1 
Industrial36.7 24.6 21.7 34.0 26.8 19.0 
Total Retail Tariff Sales Revenues796.7 655.3 257.3 750.3 659.7 241.0 
Wholesale Transmission Revenues189.0 147.1 58.2 151.8 134.8 49.7 
Wholesale Market Sales Revenues109.7 24.4 15.0 64.7 14.4 11.9 
Other Revenues from Contracts with Customers7.3 11.7 3.2 8.8 10.7 6.0 
Total Revenues from Contracts with Customers1,102.7 838.5 333.7 975.6 819.6 308.6 
Alternative Revenue Programs8.9 13.8 3.0 44.6 19.3 4.7 
Other Revenues (1)
0.2 1.1 0 1.7 1.4 0.6 
Eliminations(124.5)(116.4)(43.3)(122.2)(106.5)(37.5)
Total Operating Revenues$987.3 $737.0 $293.4 $899.7 $733.8 $276.4 

(1)    Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. Other Revenues also include lease revenues under lessor accounting guidance of $1.6 million (including $0.2 million at CL&P and $1.1 million at NSTAR Electric) and $1.1 million (including $0.2 million at CL&P and $0.7 million at NSTAR Electric) for the three months ended March 31, 2021 and 2020, respectively.
 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
Commercial652.6
 143.8
 —
 14.3
 —
 (1.1) 809.6
Industrial82.1
 30.9
 —
 1.1
 —
 (2.7) 111.4
Total Retail Tariff Sales Revenues1,768.0
 433.6
 —
 42.4
 —
 (3.8) 2,240.2
Wholesale Transmission Revenues—
 —
 324.9
 —
 13.5
 (270.8) 67.6
Wholesale Market Sales Revenues51.5
 21.7
 —
 1.0
 —
 —
 74.2
Other Revenues from Contracts with Customers12.6
 0.9
 3.2
 1.7
 244.6
 (245.4) 17.6
Amortization/(Reserve) for Revenues
Subject to Refund		(3.1) 1.6
 —
 (0.8) —
 —
 (2.3)
Total Revenues from Contracts with Customers1,829.0
 457.8
 328.1
 44.3
 258.1
 (520.0) 2,397.3
Alternative Revenue Programs (1)
2.1
 10.4
 12.4
 0.9
 —
 (11.1) 14.7
Other Revenues (2)
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, 2020 For the Three Months Ended March 31, 2019
(Millions of Dollars)CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers           
Retail Tariff Sales           
Residential$489.9
 $331.0
 $142.9
 $510.5
 $371.0
 $151.8
Commercial226.4
 301.9
 79.1
 236.7
 336.5
 79.8
Industrial34.0
 26.8
 19.0
 34.6
 28.8
 18.7
Total Retail Tariff Sales Revenues750.3
 659.7
 241.0
 781.8
 736.3
 250.3
Wholesale Transmission Revenues151.8
 134.8
 49.7
 154.8
 122.6
 47.5
Wholesale Market Sales Revenues64.7
 14.4
 11.9
 13.7
 24.4
 13.4
Other Revenues from Contracts with Customers8.8
 10.7
 3.7
 8.9
 4.0
 3.6
Amortization/(Reserve) for Revenues
Subject to Refund		—
 —
 2.3
 —
 —
 (3.1)
Total Revenues from Contracts with Customers975.6
 819.6
 308.6
 959.2
 887.3
 311.7
Alternative Revenue Programs (1)
44.6
 19.3
 4.7
 5.7
 7.3
 1.5
Other Revenues (2)
1.7
 1.4
 0.6
 1.0
 1.5
 0.3
Eliminations(122.2) (106.5) (37.5) (116.7) (98.5) (37.1)
Total Operating Revenues$899.7
 $733.8
 $276.4
 $849.2
 $797.6
 $276.4



(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.

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 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, 5) the results of other unregulated subsidiaries, which are not part of its core business, and 6)5) Eversource parent's equity ownership interests that are not consolidated, which primarily include the offshore wind business, a natural gas pipeline owned by Enbridge, Inc., and a renewable energy investment fund.

In the ordinary course of business, Yankee Gas, and NSTAR Gas and EGMA purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $62.5$77.7 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 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, 2021
Eversource
(Millions of Dollars)
Electric DistributionNatural Gas DistributionElectric TransmissionWater DistributionOtherEliminationsTotal
Operating Revenues$1,900.3 $780.5 $400.6 $46.4 $343.0 $(645.0)$2,825.8 
Depreciation and Amortization(221.9)(45.7)(73.5)(11.3)(27.3)1.0 (378.7)
Other Operating Expenses(1,530.5)(535.8)(115.4)(25.1)(299.5)644.8 (1,861.5)
Operating Income$147.9 $199.0 $211.7 $10.0 $16.2 $0.8 $585.6 
Interest Expense$(53.3)$(13.9)$(32.7)$(7.9)$(41.6)$11.6 $(137.8)
Other Income, Net20.7 3.9 5.5 1.0 424.1 (421.0)34.2 
Net Income Attributable to Common Shareholders93.2 147.6 135.4 3.6 394.9 (408.6)366.1 
Cash Flows Used for Investments in Plant256.6 131.8 225.2 27.6 47.8 0 689.0 
34

For the Three Months Ended March 31, 2020For the Three Months Ended March 31, 2020
Eversource
(Millions of Dollars)
Electric Distribution Natural Gas Distribution Electric Transmission Water Distribution Other Eliminations Total
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution (1)
Electric
Transmission		Water Distribution
Other (1)
Eliminations (1)
Total
Operating Revenues$1,805.3
 $448.6
 $369.7
 $46.9
 $294.6
 $(591.4) $2,373.7
Operating Revenues$1,805.3 $448.6 $369.7 $46.9 $294.6 $(591.4)$2,373.7 
Depreciation and Amortization(167.3) (19.1) (67.5) (11.4) (21.3) 0.6
 (286.0)Depreciation and Amortization(167.3)(19.1)(67.5)(11.4)(21.3)0.6 (286.0)
Other Operating Expenses(1,439.6) (311.6) (106.8) (25.0) (257.0) 591.4
 (1,548.6)Other Operating Expenses(1,439.6)(311.6)(106.8)(25.0)(257.0)591.4 (1,548.6)
Operating Income$198.4
 $117.9
 $195.4
 $10.5
 $16.3
 $0.6
 $539.1
Operating Income$198.4 $117.9 $195.4 $10.5 $16.3 $0.6 $539.1 
Interest Expense$(53.1) $(11.4) $(30.6) $(8.7) $(42.7) $11.8
 $(134.7)Interest Expense$(53.1)$(11.4)$(30.6)$(8.7)$(42.7)$11.8 $(134.7)
Other Income, Net12.5
 1.4
 5.2
 0.1
 468.1
 (463.2) 24.1
Other Income, Net12.5 1.4 5.2 0.1 383.7 (378.8)24.1 
Net Income Attributable to Common Shareholders130.1
 84.4
 126.8
 2.1
 442.2
 (450.8) 334.8
Net Income Attributable to Common Shareholders130.1 85.9 126.8 2.1 356.3 (366.4)334.8 
Cash Flows Used for Investments in Plant315.8
 99.1
 232.8
 18.5
 59.3
 —
 725.5
Cash Flows Used for Investments in Plant315.8 99.1 232.8 18.5 59.3 0 725.5 



(1) On October 9, 2020, Eversource completed the CMA asset acquisition, with Yankee Energy System, Inc. (Yankee parent) as the acquiring entity. Yankee parent is the parent company of Yankee Gas, NSTAR Gas, EGMA and Hopkinton LNG Corp. As a result of the acquisition, in the fourth quarter of 2020, our chief operating decision maker assessed the performance of the Natural Gas Distribution segment including Yankee parent. Previously, Yankee parent was presented within Other and its equity in earnings were eliminated in consolidation. Prior comparative periods were revised to conform to the current period segment presentation.
 For the Three Months Ended March 31, 2019
Eversource
(Millions of Dollars)
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
Depreciation and Amortization(179.2) (20.4) (61.5) (11.8) (13.6) 0.6
 (285.9)
Other Operating Expenses(1,475.6) (341.3) (98.8) (25.0) (225.5) 531.0
 (1,635.2)
Operating Income$179.1
 $107.2
 $180.2
 $8.7
 $19.0
 $0.5
 $494.7
Interest Expense$(49.2) $(11.7) $(30.6) $(8.6) $(44.2) $12.6
 $(131.7)
Other Income, Net18.2
 0.2
 8.1
 0.4
 431.7
 (427.6) 31.0
Net Income Attributable to Common Shareholders120.1
 76.5
 118.2
 0.9
 407.5
 (414.5) 308.7
Cash Flows Used for Investments in Plant (1)
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 DistributionOtherEliminationsTotal
As of March 31, 2021$25,033.9 $6,576.5 $11,713.1 $2,391.0 $21,468.2 $(20,664.5)$46,518.2 
As of December 31, 202024,981.9 6,450.5 11,695.0 2,375.2 22,089.4 (21,492.4)46,099.6 

17.     ACQUISITION OF ASSETS OF COLUMBIA GAS OF MASSACHUSETTS
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, 201922,541.9
 4,345.5
 10,904.0
 2,351.7
 20,469.6
 (19,488.8) 41,123.9

On October 9, 2020, Eversource acquired certain assets and liabilities that comprised the NiSource Inc. (NiSource) natural gas distribution business in Massachusetts, which was previously doing business as CMA, pursuant to an asset purchase agreement (the Agreement) entered into on February 26, 2020 between Eversource and NiSource. The cash purchase price was $1.1 billion, plus a working capital amount of $68.6 million, as finalized in the first quarter of 2021. The natural gas distribution assets acquired from CMA were assigned to EGMA, an indirect wholly-owned subsidiary of Eversource formed in 2020. The LNG assets acquired from CMA were assigned to Hopkinton LNG Corp.

Preliminary Purchase Price Allocation: The purchase price allocation reflects measurement period adjustments recorded as of March 31, 2021 to reduce the fair values of certain regulatory and plant assets acquired, resulting in a corresponding increase to Goodwill, based on new information received during the measurement period.

The preliminary allocation of the cash purchase price is as follows:
(1)(Millions of Dollars)
See Note 1A, "Summary of Significant Accounting Policies - Basis of Presentation," for information regarding the correction of cash investments in plant reported in 2019.
Current Assets$138 
Restricted Cash57 
PP&E1,193 
Goodwill49 
Other Noncurrent Assets, excluding Goodwill130 
Other Current Liabilities(81)
Other Noncurrent Liabilities(317)
Cash Purchase Price$1,169 






35

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 20192020 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 a non-GAAP financial measuresmeasure referencing our 2021 and 2020 earnings and EPS excluding certain acquisition costs and our Q2 2019 earnings and EPS excluding the impairment charge for the NPT project.transition costs.

We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our 20202021 and 20192020 results without including these items. We believe the acquisition costs and the NPT impairment chargetransition costs are not indicative of our ongoing costs and performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, 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 of our business. These non-GAAP financial measures should not be considered as an alternativealternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as an indicatorindicators 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,
•    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,
•    contamination of, or disruption in, our water supplies,
•    changes in levels or timing of capital expenditures, including the 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-lookingforward-
36

looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's 20192020 combined Annual Report on Form 10-K.  This combined Quarterly Report on Form 10-Q and Eversource's 20192020 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 and Future Outlook: 

•We earned $366.1 million, or $1.06 per share, in the first quarter of 2021, compared with $334.8 million, or $1.01 per share, in the first quarter of 2020, compared with $308.72020. Our results include after-tax transition and acquisition costs of $6.2 million, or $0.97$0.02 per share, in the first quarter of 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) of2021, compared with $3.5 million, or $0.01 per share.share, in the first quarter of 2020. Excluding those transition and acquisition costs, we earned $372.3 million, or $1.08 per share, in the first quarter of 2021, compared with $338.3 million, or $1.02 per share, in the first quarter of 2020.

•Our electric distribution segment earned $93.2 million, or $0.27 per share, in the first quarter of 2021, compared with $130.1 million, or $0.39 per share, in the first quarter of 2020, compared with $120.12020. First quarter of 2021 electric distribution segment earnings include an after-tax charge of $0.07 per share at CL&P primarily for customer bill credits assessed by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. Our electric transmission segment earned $135.4 million, or $0.38$0.39 per share, in the first quarter of 2019.  Our electric transmission segment earned2021, compared with $126.8 million, or $0.38 per share in the first quarter of 2020, compared with $118.22020. Our natural gas distribution segment earned $147.6 million, or $0.37$0.43 per share, in the first quarter of 2019. Our natural gas distribution segment earned $84.42021, compared with $85.9 million, or $0.25$0.26 per share, in the first quarter of 2020, compared with $76.52020.  Our water distribution segment earned $3.6 million, or $0.24$0.01 per share, in the first quarter of 2019.  Our water distribution segment earned2021, compared with $2.1 million, or $0.01 per share, in the first quarter of 2020, compared with $0.9 million in the first quarter of 2019.2020.

•Eversource parent and other companies had a net loss of $8.6$13.7 million, or $0.02$0.04 per share, in the first quarter of 2020,2021, compared with a net loss of $7.0$10.1 million, or $0.02$0.03 per share, in the first quarter of 2019.2020. Excluding transition and acquisition costs, Eversource parent and other companies had a net loss of $5.1$7.5 million, or $0.01$0.02 per share, in the first quarter of 2021, compared with a net loss of $6.6 million, or $0.02 per share, in the first quarter of 2020.

•We reaffirmed 2020our projection of our long-term EPS growth rate through 2025 from our regulated utility businesses in the upper half of the 5 to 7 percent range. We now estimate to earn toward the lower end of the 2021 non-GAAP earnings guidance range of between $3.60$3.81 per share and $3.70$3.93 per share.

In Marchshare, which excludes the impact of transition costs related to our October 2020 the World Health Organization declared the outbreakpurchase of the 2019 novel coronavirus (COVID-19) a pandemic. Asassets of CMA. That 2021 non-GAAP earnings estimate includes the date of our filing,$0.07 per share charge for the outbreak of COVID-19 has not resulted in a significant financial or operational impact. We are continuing to closely monitorpenalty proceeding for COVID-19 pandemic related changes, as well as operate under our pandemicCL&P’s Tropical Storm Isaias response plan; however, we cannot at this time predict the impact that the COVID-19 pandemic will havePURA commenced on our future financial condition and operations.May 6, 2021.

Liquidity:

•Cash flows provided by operating activities totaled $411.4 million in the first quarter of 2021, compared with $420.3 million in the first quarter of 2020, compared with $381.4 million in the first quarter of 2019.2020. Investments in property, plant and equipment totaled $689.0 million in the first quarter of 2021, compared with $725.5 million in the first quarter of 2020, compared with $628.1 million in the first quarter of 2019.2020.  Cash totaled $47.4$34.1 million as of March 31, 2020,2021, compared with $15.4$106.6 million as of December 31, 2019.2020. Our available borrowing capacity under our commercial paper programs totaled $1.27 billion$730.8 million as of March 31, 2020.2021.

•In the first quarter of 2020,2021, we issued 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$350 million of new long-term debt at Eversource parent and we repaid $572 million of long-term debt, consisting of $400$450 million by NSTAR Electric and $350 million by Eversource parent. Proceeds from these new issuances were used primarily to refinance investments in eligible green expenditures at NSTAR Electric and to pay short-term borrowings at Eversource parent.parent and $122 million at PSNH.

•On May 6, 2020,5, 2021, our Board of Trustees approved a common share dividend payment of $0.5675$0.6025 per share, payable on June 30, 20202021 to shareholders of record as of May 20, 2020. 2021.
Business Development and Regulatory Items:

•On February 5, 2020, our BoardApril 30, 2021, Revolution Wind received BOEM’s Notice of Trustees approved a common share dividend payment of $0.5675 per share, which was paid on March 31, 2020Intent to shareholders of record as of March 4, 2020.

Strategic:

On February 26, 2020, Eversource and NiSource Inc. entered intoprepare an asset purchase agreement where Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in MassachusettsEnvironmental Impact Statement 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 endreview of the third quarterConstruction Operations Plan application submitted by Revolution Wind.

•On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain applicable storm performance standards and was imprudent in certain instances. Based on its findings, PURA ordered CL&P to adjust its future rates, in a pending or future rate proceeding, to reflect a monetary penalty in the form of 2020.



Impacta downward adjustment of COVID-19
In March 2020, the World Health Organization declared the outbreak90 basis points in its allowed rate of COVID-19 a pandemic and President Trump declared a national emergency affecting the entire United States where each state qualifiesreturn on equity (ROE). On May 6, 2021, as being part of a national disaster.separate penalty proceeding, PURA issued a notice of violation to CL&P that included an assessment of $30 million, consisting of $28.4 million to be provided as credits on customer bills and a $1.6 million fine to be paid to the State of Connecticut’s general fund. The spread of COVID-19 has adversely affected workforces, the overall economy and caused significant volatility$30 million assessment was accrued in the financial markets. To date,first quarter of 2021 and resulted in an after-tax charge of $0.07 per share. We believe we have not experienced significant operational or financial impacts directly relatedmeritorious defenses and intend 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, financialvigorously defend CL&P’s 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, webut do not expecthave 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. Asbetter estimate of May 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. TheCL&P’s ultimate amount and duration cannot be estimatedliability 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.time.
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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 31st 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 measures of consolidated non-GAAP earnings and EPS, as well as EPS by business, to the most directly comparable GAAP measures of consolidated Net Income Attributable to Common Shareholders and diluted EPS.
 For the Three Months Ended March 31,
 2020 2019
(Millions of Dollars, Except Per Share Amounts)Amount Per Share Amount Per Share
Net Income Attributable to Common
  Shareholders (GAAP)
$334.8
 $1.01
 $308.7
 $0.97
        
Regulated Companies$343.4
 $1.03
 $315.7
 $0.99
Eversource Parent and Other Companies(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)
$334.8
 $1.01
 $308.7
 $0.97

 For the Three Months Ended March 31,
20212020
(Millions of Dollars, Except Per Share Amounts)AmountPer ShareAmountPer Share
Net Income Attributable to Common Shareholders (GAAP)$366.1 $1.06 $334.8 $1.01 
Regulated Companies (1)
$379.8 $1.10 $344.9 $1.04 
Eversource Parent and Other Companies (non-GAAP) (1)
(7.5)(0.02)(6.6)(0.02)
Non-GAAP Earnings$372.3 $1.08 $338.3 $1.02 
Transition and Acquisition Costs (after-tax) (2)
(6.2)(0.02)(3.5)(0.01)
Net Income Attributable to Common Shareholders (GAAP)$366.1 $1.06 $334.8 $1.01 

(1)The 2020 amounts were revised to conform to the current period segment presentation.

(2) TheseThe 2020 acquisition costs are associated with our pending acquisitionpurchase of the assets of Columbia GasCMA on October 9, 2020. The 2021 costs are for the transition of Massachusetts.systems as a result of the CMA acquisition and costs associated with our pending water business acquisition.

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,
20212020
(Millions of Dollars, Except Per Share Amounts)AmountPer ShareAmountPer Share
Net Income - Regulated Companies$379.8 $1.10 $344.9 $1.04 
Electric Distribution$93.2 $0.27 $130.1 $0.39 
Electric Transmission135.4 0.39 126.8 0.38 
Natural Gas Distribution (1)
147.6 0.43 85.9 0.26 
Water Distribution3.6 0.01 2.1 0.01 
Net Income - Regulated Companies$379.8 $1.10 $344.9 $1.04 
 For the Three Months Ended March 31,
 2020 2019
(Millions of Dollars, Except Per Share Amounts)Amount Per Share Amount Per Share
Net Income - Regulated Companies$343.4
 $1.03
 $315.7
 $0.99
        
Electric Distribution$130.1
 $0.39
 $120.1
 $0.38
Electric Transmission126.8
 0.38
 118.2
 0.37
Natural Gas Distribution84.4
 0.25
 76.5
 0.24
Water Distribution2.1
 0.01
 0.9
 —
Net Income - Regulated Companies$343.4
 $1.03
 $315.7
 $0.99

(1) The 2020 amounts were revised to conform to the current period segment presentation.

Our electric distribution segment earnings increased $10.0decreased $36.9 million in the first quarter of 2020,2021, as compared to the first quarter of 2019,2020, due primarily to an after-tax charge of $0.07 per share at CL&P for the accrual of a $30 million estimated assessment by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. For further information, see "Regulatory Developments and Rate Matters - Connecticut" included in this Management’s Discussion and Analysis. Earnings were also unfavorably impacted by higher operations and maintenance expense driven by higher storm restoration costs and higher employee-related expenses due to timing of capital work (primarily meter installations) delayed as a result of increased storms and the impact of COVID-19, as well as higher depreciation expense and higher property tax expense. The earnings decrease was partially offset by base distribution rate increases at CL&P effective May 1, 2019,2020, at NSTAR Electric effective January 1, 2020,2021, and at PSNH effective JulyJanuary 1, 2019,2021, 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 higher depreciation expense, higher interest expense, the absenceimpact in 2021 of a new tracker mechanism at PSNH approved as part 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 higher property tax expense.rate settlement agreement.

Our electric transmission segment earnings increased $8.6 million in the first quarter of 2020,2021, as compared to the first quarter of 2019,2020, 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 $7.9$61.7 million in the first quarter of 2020,2021, as compared to the first quarter of 2019,2020, due primarily to athe addition of Eversource Gas Company of Massachusetts (EGMA) earnings of $47.3 million. Additionally, the earnings increase was due to base distribution rate increaseincreases at NSTAR Gas effective November 1, 2020 and at Yankee Gas effective January 1, 2020 and higher earnings from capital tracker mechanisms due to continued investments in natural gas infrastructure.2021 (in customer rates beginning March 1, 2021). The earnings increase was partially offset by higher operations and maintenance expense, higher depreciation expense and higher depreciationproperty tax expense.

Our water distribution segment earnings increased $1.2$1.5 million in the first quarter of 2020,2021, as compared to the first quarter of 20192020, due primarily to higher revenues from Connecticut's capital tracker mechanism due to increased infrastructure improvements and lower depreciationinterest expense.

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Eversource Parent and Other Companies:  Eversource parent and other companiescompanies' had a netan increased loss of $8.6$3.6 million or $0.02 per share, in the first quarter of 2021, as compared to the first quarter of 2020, compareddue primarily to an increase in the acquisition and related transition costs of the CMA asset acquisition of $2.7 million.

Impact of COVID-19
COVID-19 continues to adversely affect customers, workers and the U.S. economy. We continue to operate under our pandemic response plan, which requires remote work arrangements for nearly half of our workforce and other mitigating requirements for those that are required onsite in our electric, natural gas and water operations, construction and management functions. We continue to address the impacts of the COVID-19 pandemic and how the related developments affect Eversource. We have not experienced significant impacts directly related to the pandemic that have materially affected our current operations, our workforce, or results of operations. The extent of the impact to us in the future will vary, and depend on the duration, scope and severity of the pandemic and the resulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome of future proceedings before our state regulatory commissions to recover our incremental costs associated with aCOVID-19, which include uncollectible customer receivable expenses.

The current and expected future financial impacts of COVID-19 as it relates to our businesses primarily relate to collectability of customer receivables and customer payment plans and increased expenses for cleaning and supplies for personal protective equipment.

As of March 31, 2021, our allowance for uncollectible customer receivable balance of $391.7 million, of which $197.3 million relates to hardship accounts that are specifically recovered in rates charged to customers, adequately reflected the collection risk and net lossrealizable value for our receivables. We continue to evaluate the adequacy of $7.0 million, or $0.02 per share,the uncollectible allowance based on an ongoing assessment of accounts receivable collections and customer payment trends, economic conditions, delinquency statistics, aging-based quantitative assessments, the impact on residential customer bills because of energy usage and change in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, and COVID-19 developments, including any potential federal governmental pandemic relief programs and the expansion of unemployment benefit 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. This evaluation has shown that our operating companies have experienced an increase in aged receivables and lower cash collections from customers because of the moratorium on disconnections and the economic slowdown resulting from the COVID-19 pandemic.

Based upon the evaluation performed, in the first quarter of 2019.  The2021, we increased loss was due primarily to 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 Serviceallowance for uncollectible accounts for amounts incurred as a result of increased investmentsCOVID-19 by $15.5 million for Eversource ($5.6 million for CL&P, $3.7 million for NSTAR Electric, and $6.2 million at our natural gas businesses). These COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as we believe it is probable that these costs will ultimately be recovered from customers in property, plantfuture rates. As of March 31, 2021, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $47.0 million at Eversource ($8.4 million at CL&P, $14.7 million at NSTAR Electric, $2.3 million at PSNH, and equipment$21.6 million at our natural gas businesses). Based on the status of our COVID-19 regulatory dockets, communications with our state regulatory commissions, and lower interest expense.policies and practices in each of our jurisdictions, we believe each of our state regulatory commissions will allow us to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses, while balancing the impact on our customers’ bills and our operating cash flows.


We continue to work closely with our state regulatory commissions and consumer advocates on customer assistance measures, including 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 developed 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 the first quarter of 2021, net incremental costs incurred as a result of COVID-19 totaled $10.2 million, and related to uncollectible expense that impacts earnings, facilities and fleet cleaning, sanitizing costs and supplies for personal protective equipment, net of cost savings and expected benefits under the CARES Act. In the first quarter of 2021, we deferred $9.8 million of these net incremental COVID-19 costs on the balance sheet. Net incremental COVID-19 expenses that reduced pre-tax earnings totaled $0.4 million on the statement of income. As of March 31, 2021, we deferred $33.8 million of net incremental COVID-19 costs on the balance sheet, of which $27.3 million of that deferral related to uncollectible expense that impacts earnings and $6.5 million related to cleaning and supplies for personal protective equipment.

Liquidity

Cash totaled $47.4$34.1 million as of March 31, 2020,2021, compared with $15.4$106.6 million as of December 31, 2019.2020.

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45$2.00 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, 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 6, 2024. TheEversource parent and EGMA have a short-term $550 million revolving credit facility, serveswhich terminates on October 20, 2021. These revolving credit facilities serve to backstop Eversource parent's $1.45$2.00 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 6, 2024. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.  
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The amount of borrowings outstanding and available under the commercial paper programs were as follows:
Borrowings Outstanding as ofAvailable Borrowing Capacity as ofWeighted-Average Interest Rate as of
March 31, 2021December 31, 2020March 31, 2021December 31, 2020March 31, 2021December 31, 2020
(Millions of Dollars)
Eversource Parent Commercial Paper Program$1,475.7 $1,054.3 $524.3 $945.7 0.23 %0.25 %
NSTAR Electric Commercial Paper Program443.5 195.0 206.5 455.0 0.13 %0.16 %
 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)     
Eversource Parent Commercial Paper Program$738.4
 $1,224.9
 $711.6
 $225.1
 3.38% 1.98%
NSTAR Electric Commercial Paper Program88.0
 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, 20202021 or December 31, 2019.2020.

On May 15, 2020, CL&P and PSNH entered into uncommitted line of credit agreements, which will expire by May 14, 2021. The CL&P agreements total $450 million and the PSNH agreements total $300 million. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of March 31, 2021.

Amounts outstanding under the commercial paper programs and revolving credit facilities are included in Notes Payable and 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 NSTAR GasAquarion Water Company of Connecticut long-term debt issuancesissuance in May 2020, $25.0April 2021, $40.0 million of the current portion of long-term debt and $165.0$46.8 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of March 31, 2020.2021.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. 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, 2020,2021, there were intercompany loans from Eversource parent to CL&P of $219.0$32.1 million, to PSNH of $84.7$196.8 million, and to a subsidiary of NSTAR Electric of $38.4$22.5 million. As of December 31, 2019,2020, there were intercompany loans from Eversource parent to CL&P of $63.8 million, to PSNH of $27.0$46.3 million, and to a subsidiary of NSTAR Electric of $30.3$21.3 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.



Long-Term Debt:Debt Issuance Authorizations: On February 10, 2021, PURA approved Aquarion Water Company of Connecticut’s request for authorization to issue up to $100 million in long-term debt through December 31, 2021. On March 18, 2021, PSNH filed an application with the NHPUC for authorization to issue up to $350 million in long-term debt through December 31, 2021. On March 22, 2021, CL&P filed an application with PURA for authorization to issue up to $350 million in long-term debt through December 31, 2021.On March 31, 2021, the DPU approved NSTAR Electric's request for authorization to issue up to $1.6 billion in long-term debt through December 31, 2023.

Long-Term Debt Issuances and Repayments: 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$400.0
 March 2020 April 2030 Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes(95.0) March 2020 March 2020 Paid at maturity
Other:       
Eversource Parent 3.45% Series P Senior Notes350.0
 January 2020 January 2050 Paid short-term borrowings
NSTAR Gas 4.46% Series N First Mortgage Bonds(125.0) January 2020 January 2020 Paid at maturity
Yankee Gas 4.87% Series K First Mortgage Bonds(50.0) April 2020 April 2020 Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds75.0
 May 2020 May 2025 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds115.0
 May 2020 May 2050 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
(Millions of Dollars)Issuance/(Repayment)Issue Date or Repayment DateMaturity DateUse of Proceeds for Issuance/
Repayment Information
PSNH:
4.05% Series Q First Mortgage Bonds$(122.0)March 2021June 2021Paid on par call date in advance of maturity date
Other:
Eversource Parent 2.50% Series I Senior Notes(450.0)February 2021March 2021Paid on par call date in advance of maturity date
Eversource Parent 2.55% Series S Senior Notes350.0 March 2021March 2031Repaid short-term debt, including short-term debt used to redeem Series I Senior Notes
Aquarion Water Company of Connecticut 3.31% Senior
   Notes		100.0 April 2021April 2051Repaid 5.50% Notes, redeemed short-term debt, paid capital expenditures and working capital
Aquarion Water Company of Connecticut 5.50% Notes(40.0)April 2021April 2021Paid at maturity
Long-Term Debt Issuance Authorization:
On January 27, 2020,
In April 2021, PSNH provided a redemption notice to the DPU approvedholders of the PSNH 3.20% Series R First Mortgage Bonds that PSNH will redeem the $160 million of bonds on June 1, 2021, the par call date, in advance of the September 1, 2021 maturity date. In April 2021, NSTAR Gas' request for authorizationElectric provided a redemption notice to issue upthe holders to $270the NSTAR Electric 3.50% Series F Senior Notes that NSTAR Electric will redeem the $250 million of senior notes on June 15, 2021, the par call date, in long-term debt through December 31, 2021.advance of the September 15, 2021 maturity date.

Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $21.6 million of RRB principal payments and $9.6 million of interest payments in the first quarter of 2021, and 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 2019.2020.

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.

Cash Flows:  Cash flows provided by operating activities totaled $411.4 million in the first quarter of 2021, compared with $420.3 million in the first quarter of 2020, compared with $381.4 million in the first quarter of 2019. The increase in operating2020. Operating cash flows was due primarily towere unfavorably impacted by the timing of cash collections on our accounts receivables, partially offset byreceivable, the timing of cash payments made on our accounts payable, cashincome tax payments and lowermade of $15.8 million in the first quarter of 2021, compared to income tax refunds received of $40.5 million in the same period of 2020, cash payments made in the first quarter of $12.2 million.2021 for storm restoration costs of approximately $44 million related to Tropical Storm Isaias at CL&P, and a $30.3 million increase in Pension and PBOP contributions made in the first quarter of 2021, as compared to 2020. Partially offsetting these unfavorable impacts was the timing of collections for regulatory tracking mechanisms primarily related to the deferred fuel costs at our natural gas distribution business, the addition of EGMA, and the timing of other working capital items.

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On May 6, 2020,5, 2021, our Board of Trustees approved a common share dividend payment of $0.5675$0.6025 per share, payable on June 30, 20202021 to shareholders of record as of May 20, 2020.2021. On February 5, 2020,9, 2021, our Board of Trustees approved a common share dividend payment of $0.5675$0.6025 per share, which was paid on March 31, 20202021 to shareholders of record as of March 4, 2020.2021. In the first quarter of 2021, we paid cash dividends of $201.0 million and issued non-cash dividends of $5.9 million in the form of treasury shares, totaling dividends of $206.9 million. 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.million.

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 2020,2021, CL&P, NSTAR Electric and PSNH paid $69.5$70.1 million, $196.5$206.4 million, and $22.3$25.2 million, respectively, in common stock dividends to Eversource parent.

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 2020,2021, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $725.5$689.0 million, $212.4$198.0 million, $247.5$215.5 million, and $88.7$68.3 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 May 6, 2021, S&P changed CL&P’s outlook from stable to negative and affirmed its existing outlook for Eversource parent, NSTAR Electric and PSNH.

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 $620.7 million in the first quarter of 2021, compared to $655.7 million in the first quarter of 2020, compared to $603.12020.  These amounts included $47.8 million and $55.4 million in the first quarter of 2019.  These amounts included $55.4 million2021 and $49.3 million in the first quarter of 2020, and 2019, 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 increaseddecreased by $3.6$20.6 million in the first quarter of 2020,2021, as compared to the first quarter of 2019.2020.  A summary of electric transmission capital expenditures by company is as follows:  
 For the Three Months Ended March 31,
(Millions of Dollars)20212020
CL&P$81.3 $84.8 
NSTAR Electric82.0 76.7 
PSNH23.9 46.3 
Total Electric Transmission Segment$187.2 $207.8 
 For the Three Months Ended March 31,
(Millions of Dollars)2020 2019
CL&P$84.8
 $112.2
NSTAR Electric76.7
 59.3
PSNH46.3
 27.7
NPT—
 5.0
Total Electric Transmission Segment$207.8
 $204.2

Eastern Massachusetts Transmission Projects: These projects consist of a portfolio of electric transmission upgrades in southern New Hampshire, 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 2023 Massachusetts upgrades have been placed in service. 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 oralCourt. Oral arguments were conductedheld on March 17, 2020.1, 2021. The majority of the remaining two upgrades are under construction and are expected to be placed in service in 2021.2022. We estimate our portion of the investment will be approximately $750 million, of which $449.9$534 million has been spent and capitalized through March 31, 2020.2021.

Hartford-AreaSoutheastern Massachusetts Transmission Projects: These projects consist of 27a portfolio of electric transmission and substation upgrades in southeastern Massachusetts, including Cape Cod, required to reinforce the Southeastern Massachusetts transmission system and bring the system into compliance with applicable national and regional reliability standards. ISO-NE reassessed the need for projects that had yet to be constructed and reconfirmed the need for the majority of the originally identified reinforcements in July 2020. Twelve upgrades in Eversource's service territory were reconfirmed, and a single upgrade was deemed to no longer be required. Of the Hartford, Connecticut areatwelve upgrades, four require siting approvals from the Massachusetts regulatory agencies, of which one has received approval, two are before the agencies and one, a joint project with an expected investment of approximately $350 million. As of March 31, 2020, 25National Grid, has yet to be filed. Three substation projects will be permitted locally, three projects are under construction and two projects have been placed in service, and two projects are in active construction and are expected to be placed in service in the fourth quarter of 2020.  As of March 31, 2020, CL&P had spent and capitalized $281.9 million in costs associated with these projects.

Seacoast Reliability Project:  The Seacoast Reliability Project consists of a 13-mile, 115kV transmission line within several New Hampshire communities, 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 May 13, 2019, two appeals of the NHSEC's approval orders were filed with the New Hampshire Supreme Court. On December 17, 2019, the Conservation Law Foundation requested the Court to withdraw its appeal, and the Court granted the request on December 20, 2019. For the pending appeal by a small group of property owners located adjacent to the project, oral arguments were conducted on March 10, 2020. This project is under construction and is scheduled to be completed in the second quarter of 2020.in-service. We estimate our portion of the investment will be approximately $125$175 million, of which PSNH had$32 million has been spent and capitalized $103.7 million in costs through March 31, 2020.2021.

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


41

Distribution Business:  A summary of distribution capital expenditures is as follows:
 For the Three Months Ended March 31,
(Millions of Dollars) 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 Infrastructure44.1
 54.4
 22.5
 121.0
 67.3
 15.8
 204.1
Load Growth and Other15.0
 24.0
 3.1
 42.1
 10.8
 0.1
 53.0
Total Distribution102.8
 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
Aging Infrastructure45.2
 43.0
 25.4
 113.6
 53.2
 13.0
 179.8
Load Growth and Other14.3
 17.4
 3.9
 35.6
 10.0
 0.4
 46.0
Total Distribution92.8
 127.2
 37.4
 257.4
 74.4
 15.5
 347.3
Solar—
 2.3
 —
 2.3
 —
 —
 2.3
Total$92.8
 $129.5
 $37.4
 $259.7
 $74.4
 $15.5
 $349.6

For the Three Months Ended March 31,
(Millions of Dollars) CL&P NSTAR Electric PSNH Total Electric Natural GasWater Total
2021
Basic Business$45.0 $31.3 $13.6 $89.9 $25.4 $1.7 $117.0 
Aging Infrastructure34.1 46.1 19.5 99.7 77.2 16.7 193.6 
Load Growth and Other20.3 35.3 7.7 63.3 12.8 0.1 76.2 
Total Distribution99.4 112.7 40.8 252.9 115.4 18.5 386.8 
Solar— (1.1)— (1.1)— — (1.1)
Total$99.4 $111.6 $40.8 $251.8 $115.4 $18.5 $385.7 
2020
Basic Business$43.7 $59.6 $9.8 $113.1 $20.0 $1.9 $135.0 
Aging Infrastructure44.1 54.4 22.5 121.0 67.3 15.8 204.1 
Load Growth and Other15.0 24.0 3.1 42.1 10.8 0.1 53.0 
Total Distribution102.8 138.0 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 

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 of acquisitions, installation of new services, and interconnections of systems.

Pending Acquisition of Assets of Columbia Gas of MassachusettsNew England Service Company:: On February 26, 2020, EversourceApril 8, 2021, Aquarion and NiSource Inc.New England Service Company (NESC) entered into an asset purchasea definitive agreement (the Agreement) pursuant to which EversourceAquarion would acquire certain assets that comprise NiSource’s local natural gas distribution businessall outstanding shares of NESC. NESC provides regulated water service to approximately 10,000 customers in Connecticut, Massachusetts, which is doing businessand New Hampshire. The acquisition will be structured 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.stock-for-stock exchange and Eversource would acquirewill issue 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.

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.

463,000 common shares at closing. The transaction requires approval from the PURA, DPU, the Maine Public Utilities Commission, the FERC,NHPUC and the Federal Communications Commission,other regulators 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 2020.2021.

Offshore Wind Business: Our offshore wind business includes 50 percent ownership interests in both North East Offshore and Bay State Wind, which together hold PPAs and contracts for the Revolution Wind, South Fork Wind and Sunrise Wind projects, as well as offshore leases throughissued by BOEM. Our offshore wind projects are being developed and constructed through a joint and equal partnership with Ørsted. This partnership also participates in new procurement opportunities for offshore wind energy in the Northeast U.S.



Eversource has a 50 percent ownership interest in North East Offshore, which holds the Revolution Wind and South Fork Wind projects, as well asThe offshore leases include a 257 square-mile ocean lease off the coasts of Massachusetts and Rhode Island. Eversource also hasIsland and a 50 percent ownership interest in Bay State Wind, which holds the Sunrise Wind project. Bay State Wind's separate, adjacent 300-square-mile ocean lease is located approximately 25 miles south of the coast of Massachusetts adjacent to the North East Offshore area.Massachusetts. In aggregate, the Bay State Wind and the North East Offshorethese ocean lease sites jointly-owned by Eversource and Ørsted could eventually develop at least 4,000 MW of clean, renewable offshore wind energy. As of March 31, 2020, Eversource's total equity investment balance in its offshore wind business was $655.0 million.

Currently weWe are concluding onpreparing our final offshore and onshore project designs and advancing the appropriate federal, state and local siting and permitting processes along with our offshore wind partner, Ørsted, 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, weWe currently expect to make investments in our offshore wind business of approximately $300 million to $400$500 million during 2020.2021, subject to advancing our final project designs and federal, state and local permitting processes. As of March 31, 2021 and December 31, 2020, Eversource's total equity investment balance in its offshore wind business was $921.0 million and $887.1 million, respectively.
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The following table provides a summary of the Eversource and Ørsted major projects with announced contracts:
Wind ProjectState ServicingSize (MW)Term (Years)Price per MWhPricing TermsContract Status
Revolution WindRhode Island40020$98.43Fixed price contract; no price escalationApproved
Revolution WindConnecticut30420(1)Fixed price contracts; no price escalationApproved
South Fork WindNew York (LIPA)9020$160.332 percent average price escalationApproved
South Fork WindNew York (LIPA)4220$86.252 percent average price escalationApproved
Sunrise WindNew York (NYSERDA)
924 (2)
25
$110.37 (3)
Fixed price contract; no price escalationApproved
Wind ProjectState ServicingSize (MW)Term (Years)Price per MWhPricing TermsContract Status
Revolution WindRhode Island40020$98.43Fixed price contract; no price escalationApproved
Revolution WindConnecticut30420
(1) 
Fixed price contracts; no price escalationApproved
South Fork WindNew York (LIPA)9020$160.332 percent average price escalationApproved
South Fork WindNew York (LIPA)4020$86.252 percent average price escalation
(3) 
Sunrise WindNew York (NYSERDA)88025
$110.37 (2)
Fixed price contract; no price escalationApproved


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

(2)    The completion dates for thesecontractual capacity increased from 880 MWs to 924 MWs, as allowed under the original agreement with NYSERDA.
(3)    Index Offshore Wind Renewable Energy Certificate (OREC) strike price.

Our offshore wind projects are subject to receipt of federal, state and local approvals necessary to construct and operate the projects. The federal permitting throughprocess is governed by BOEM, engineering,and state siting and permitting inapprovals are required from New York, and Rhode Island and finalizing a PPA amendment in New York.Massachusetts. Significant delays in the siting and permitting process includingresulting from the timing oftimeline for obtaining approval from BOEM approval and the impact of COVID-19,state and local agencies could adversely impact the timing of these projects' in-service dates. At this time, we are unable to predict the impact of delays on 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 non-affiliated offshore wind project during the second quarter of 2020.Federal Siting and Permitting Process: The study is designed to assess the overall environmental impact of all offshore wind projects that are planned to be located in waters off of Rhode Island and Massachusetts.

Federal siting and permitting have commenced for the South Fork Wind project as it has filedcommenced the federal siting and permitting process with the filing of its Construction Operations Plan (COP) application with BOEM.BOEM in 2018. The first major milestone in the BOEM review process is an issuance of a Notice of Intent (NOI) to complete an Environmental Impact Statement (EIS), which South Fork Wind received in 2018. In August 2020, we received the final review schedule from BOEM regarding South Fork Wind’s COP approval. In January 2021, BOEM released its Draft EIS for the South Fork Wind project, which assessed the environmental, social, and economic impacts of constructing the project. Identified impacts were negligible to major adverse impacts to marine and terrestrial archaeological resources and to historic, and non-historic visual resources from project construction and operations. The Draft EIS also analyzed four alternatives to be evaluated as part of the process. Each of the identified alternative configurations had a similar level of environmental impacts, and if an alternative configuration was selected, the South Fork Wind project would still meet the contractual output under its PPA. A Final EIS is expected in the third quarter of 2021 and a final decision is expected in January 2022.

Based on BOEM’s final review schedule and final United States Army Corps of Engineers approval, we expect to start construction on South Fork in early 2022. South Fork Wind is designated as a “Covered Project” pursuant to Title 41 of the Fixing America’s Surface Transportation Act (“FAST41”)(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.

Revolution Wind and Sunrise Wind filed their COP applications with BOEM in March 2020 and September 2020, respectively. Both projects received FAST41 designation in 2020. On April 30, 2021, Revolution Wind received BOEM’s NOI to prepare an EIS for the review of the COP submitted by Revolution Wind. We are awaiting BOEM to outline its timeline for completing the review of Sunrise Wind’s COP in an NOI, which we expect to receive in 2021.

State and Local Siting and Permitting Process: South Fork Wind previously filed federal andcommenced the New York state applicationssiting process in 2018. Although weOn September 17, 2020, South Fork Wind filed a Joint Proposal in the New York State Article VII siting application. Amongst other things, the Joint Proposal included proposed mitigations to certain environmental, community and construction impacts associated with constructing electrical infrastructure. South Fork Wind was initially joined by PSEG Long Island and several citizens advocacy organizations. On October 9, 2020, the Joint Proposal was signed by the New York Departments of Public Service, Environmental Conservation, Transportation and State as well as the Office of Parks, Recreation and Historic Preservation. On March 18, 2021, the New York Public Service Commission approved an order adopting the Joint Proposal and granting a Certificate of Environmental Compatibility and Public Need. Two petitions for re-hearing of the New York Public Service Commission decision have received BOEM's Noticebeen filed, and South Fork Wind responded on May 3, 2021 opposing the re-hearing requests.

On September 10, 2020, the Town of Intent forEast Hampton and the East Hampton Town Trustees announced that they had reached an agreement with South Fork Wind to issue the necessary easements and other real estate rights necessary to construct the South Fork Wind project (the first important milestone towards receivingproject. The Town approved the final permit), we have not receivedeasements on January 21, 2021 and Trustees approved the lease on January 25, 2021.

State permitting applications in Rhode Island for Revolution Wind and in New York for Sunrise Wind were filed in December 2020. The Revolution Wind application was deemed complete on January 22, 2021 and the preliminary hearing was completed on March 22, 2021. On April 26, 2021, the Rhode Island Energy Facilities Siting Board issued a Preliminary Decision and Order on scheduling with Advisory Opinions for local and state agencies to be submitted by August 26, 2021, and evidentiary hearings will begin prior to October 12, 2021.

Projected In-Service Dates: Based on BOEM’s confirmed permit schedule from BOEM outlining when the COPBOEM will be received.

On April 8, 2020, the statecomplete its review of New York Administrative Law Judge granted a 10-week delay to the South Fork Wind 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 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 ofwe now expect the South Fork Wind project to beyond the projected end of 2022be in-service date.

Revolution Wind filed its COP application with BOEM in March 2020 and will seek FAST41 designation by the end of 2020.2023. For Revolution Wind, we recently received BOEM’s NOI and for Sunrise Wind's COP filingWind, we do not have a definitive timeline on when we will receive BOEM’s NOI. Additionally, for both Revolution Wind and Sunrise Wind, we also do not have a definitive timeline on other siting and permitting milestones, and execution of certain large generator interconnection agreements. At this time, we believe that it is planned in 2020. State agencies alsounlikely that the projected in-service dates of the end of 2023 and the end of 2024 for Revolution Wind and Sunrise Wind, respectively, will review siting applicationsbe met. We anticipate concluding on projected in-service dates for Revolution Wind and Sunrise Wind in New Yorkthe second half of 2021, once both BOEM NOIs have been received and Rhode Island, with application filings planned in 2020. For Revolution Wind, we are awaiting BOEM to 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 of end of 2023 and end of 2024, respectively.

analyzed.
43


FERC Regulatory Matters

FERC ROE Complaints: Four separate complaints 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). 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) 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).

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, 20202021 and December 31, 2019.2020. 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, 20202021 and December 31, 2019.2020.

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. 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 illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

If the results of 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. 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 concerningOpinion No. 569 affecting the two pending transmission ROEs forROE complaints against the Midcontinent ISO (MISO) transmission owners, (MISO). In that order,in which FERC adopted anothera 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.ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed a Supplemental Paper Hearing Brief and a Motion to supplement the recordsupplementary materials in the NETO ROE docketsNETOs' four pending cases to respond to thethis new methodology proposed inbecause of the MISO order, as there is uncertainty to whether it may be appliedof the applicability to the NETOs’ cases.

On JanuaryMay 21, 2020, the FERC issued anits order granting rehearing for further consideration to give the FERC more time to actin Opinion No. 569-A on the substantive issuesrehearing of the MISO ROE proceedings. Further changes totransmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. Various parties appealed the MISO transmission owners' opinion. On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC are possible as a result ofin its October 16, 2018 order to determine the argumentsNETOs' base ROEs in both the MISO and NETO proceedings.its four pending cases.

Given the significant uncertainty relatingregarding the applicability of the FERC opinions in the MISO transmission owners' two complaint cases to the October 2018 FERC 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 the NETO complaints or the outcome of theNETOs' pending four complaints andcomplaint cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time. Further, the CompanyAs well, Eversource cannot reasonably estimate a range of any gain or loss for any of the four complaint proceedings.proceedings at this time.

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.

A change of 10 basis 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. From the date of a final FERC order, a change of 10 basis points to the base ROE would impact Eversource’s 2021 after-tax earnings by approximately $5 million, or $0.01 per share, per year, and will increase slightly over time as we continue to invest in our transmission infrastructure.

FERC Notice of Inquiry on ROE: On March 21, 2019, FERC issued a Notice of Inquiry (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 NETOs jointly filed reply comments in the FERC ROE NOI on July 26, 2019. On May 12, 2020, the NETOs filed supplemental comments in the NOI ROE docket. At this time, Eversource cannot predict how this proceeding will affect its transmission ROEs.

44

FERC Notice of Inquiry and Proposed Rulemaking on Transmission Incentives: On March 21, 2019, FERC issued aan NOI seeking comments on FERC's policies for implementing electric transmission incentives. 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 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 partiesOn July 1, 2020, Eversource filed comments generally supporting the NOPR.

On April 15, 2021, FERC issued a Supplemental NOPR that proposes to eliminate the existing 50 basis point return on theequity for utilities that have been participating in a regional transmission organization (RTO ROE incentive) for more than three years. Supplemental NOPR comments are due July 1, 2020. May 26, 2021 with reply comments due June 10, 2021. If the FERC issues a final order eliminating the RTO ROE incentive as proposed in the Supplemental NOPR, the estimated annual impact (using 2019 actual data) on Eversource’s after-tax earnings is approximately $14 million. The Supplemental NOPR contemplates an effective date 30 days from the final order.

At this time, Eversource cannot predict howthe ultimate outcome of these proceedings will affectand the resulting impact on its 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 2020,2021, 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 20192020 Form 10-K.

Connecticut:
COVID-19 Regulatory Dockets:
CL&P Tropical Storm Isaias Costs: BeginningOn August 4, 2020, Tropical Storm Isaias caused catastrophic damage to our electric distribution system, which resulted in significant numbers and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. PURA will investigate the prudence of costs incurred by CL&P to restore service in response to Tropical Storm Isaias. That investigation is expected to occur either in a separate proceeding not yet initiated or as part of CL&P’s next rate review proceeding. Tropical Storm Isaias resulted in deferred storm restoration costs of approximately $231 million at CL&P and $249 million at Eversource as of March 2020,31, 2021. The estimated cost of restoration will change as additional cost information becomes available and final storm costs are deferred or capitalized. Although PURA found that CL&P’s performance in Connecticut, Massachusettsits preparation for and New Hampshire,response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is presentlyno reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While some amount of storm costs may be disallowed by PURA in a moratoriumfuture proceeding, any such amount cannot be estimated at this time. CL&P continues to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm costs to have a material impact on disconnectionsthe financial position or results of residential and commercial customers for non-paymentoperations of utility service.  Our operating companies have also eliminated late payment charges.Eversource or CL&P.

CL&P Tropical Storm Isaias Response Investigation: In general, these moratoriums will remain in place until the 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,August 2020, PURA opened a docket to address COVID-19 developments,investigate the preparation for and response to Tropical Storm Isaias by Connecticut utilities, including issuingCL&P. On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain applicable storm performance standards and was imprudent in certain instances. Specifically, PURA concluded that CL&P did not satisfy the performance standards for managing its municipal liaison program, timely removing electrical hazards from blocked roads, communicating critical information to its customers, or meeting its obligation to secure adequate external contractor and mutual aid resources in a timely manner. Based on its findings, PURA ordered CL&P to adjust its future rates, in a pending or future rate proceeding, to reflect a monetary penalty in the form of a downward adjustment of 90 basis points in its allowed rate of return on equity (ROE). The decision also requires CL&P to enhance and submit updated emergency response programs incorporating the changes noted within the decision for PURA’s approval by June 30, 2021. PURA explained that additional monetary penalties and further enforcement orders pursuant to Connecticut statute would be considered in a separate proceeding that was initiated on May 6, 2021.

On May 6, 2021, as part of the penalty proceeding, PURA issued a notice of violation that included an orderassessment of $30 million, consisting of a $28.4 million civil penalty for non-compliance with performance standards to be provided as credits on customer bills and a $1.6 million fine for violations of accident reporting requirements to be paid to the State of Connecticut’s general fund. PURA directed the $28.4 million to be returned to customers beginning on August 1, 2021 through July 31, 2022. The $28.4 million is the maximum statutory penalty amount under applicable Connecticut law in effect at the time of Tropical Storm Isaias, which is 2.5 percent of CL&P’s annual distribution revenues. Management has accrued the $30 million as the best estimate of the liability at this time. As of March 18,31, 2021, the total liability was recorded as a current regulatory liability on CL&P’s balance sheet and as a charge to Operations and Maintenance expense on the income statement. The after-tax earnings impact of this charge was $0.07 per share. We believe we have meritorious defenses and intend to vigorously defend CL&P’s position, but do not have a better estimate of CL&P’s ultimate liability at this time. Hearings will occur in this proceeding with a final decision currently anticipated on July 14, 2021. CL&P also intends to appeal the April 28, 2021 PURA decision.
45


The estimated annual impact of a 90 basis point ROE reduction at CL&P would be a decrease of approximately $31 million of future annual revenues and approximately $21 million of lower annual earnings. The ROE reduction would impact the income statement prospectively, once new rates are established. We cannot estimate the timing or final impact of any potential ROE change at this time.

CL&P Rate Adjustment Mechanisms (RAM) Filing: On July 31, 2020, PURA temporarily suspended its June 26, 2020 approval of certain delivery rate components effective July 1, 2020, and April 29,ordered CL&P to restore rates to those in effect as of June 30, 2020 in order to allow PURA time to reexamine the rates to ensure that authorized electric, natural gas and water utilities to establish a regulatory asset for COVID-19 uncollectible customer receivable expenses and related costs.  PURA’s order on April 29, 2020 also allowed the inclusion of working capital costsCL&P is not over-collecting revenues in the regulatory asset, and authorized electric, natural gas and water utilities to establish a payment plan program designed to assist any customer who requests financial assistance during the COVID-19 pandemic. Additionally, on April 17,short-term. Rates were adjusted effective August 1, 2020. On December 2, 2020, PURA issued a letter to Connecticut’s Congressional delegation explainingfinal decision in which it adjusted the timing of the annual rate adjustments for the Transmission Adjustment Clause (TAC) charge, the Non-Bypassable Federally Mandated Congestion Charge (NBFMCC), and the Electric System Improvements Tracker (ESI) so that reliable utility services are critical services paramountthese rates take effect on May 1st of each year, as opposed to the economic performancecurrent process of adjusting rates each January 1 and July 1. The final decision also adjusted the timing of new rates for the Competitive Transition Assessment (CTA), System Benefits Charge (SBC) and Revenue Decoupling Mechanism (RDM) to May 1st of each year, as opposed to the current process of adjusting rates on January 1st (for the CTA and SBC) and July 1st (for the RDM), modified the calculation of carrying charges and changed the basis of recovery to rely on more actual versus forecasted information. On March 1, 2021, consistent with this new timing, CL&P filed for new rates for these rate components for effect on May 1, 2021. Additionally, CL&P proposed delaying and extending recovery of 2020 under-recoveries associated with these rates over 31 months beginning October 1, 2021. On April 28, 2021, PURA issued its interim decision on CL&P’s proposal that accepted the May 1, 2021 rate proposals for the CTA, TAC, ESI and RDM, with certain modifications. One of the statemodifications was that these rate changes would go into effect on June 1, 2021, as opposed to May 1, 2021. Further, PURA elected to keep in place the current rates for the NBFMCC and advocatedSBC until further review of the costs being recovered in favorthose rates could be performed. Finally, PURA indicated it would further review CL&P’s proposal to begin recovery of directing stimulus funds to regulated public service companies that2020 under-recoveries associated with these rates on October 1, 2021, and what the period of recovery would be used to directly offset uncollectible customer receivable expenses.at a later time.

In Massachusetts, on March 31, 2020, the DPU issued a request for comments on, among other things, best practices that regulated utilities should utilize when customer shut-off activities resume.  On April 17, 2020, a coalition of 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 establishment of a regulatory asset for COVID-19 related expenses, including uncollectible customer receivable expenses, among other proposals.

Consistent with the 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 flexible payment plan options for those customers who need financial assistance in order to mitigate the size of the uncollectible customer receivable balances that would be borne by all customers in the future.

Massachusetts:

NSTAR Electric Distribution Rates: As part of an inflation-based mechanism, NSTAR Electric submitted its secondthird annual Performance Based
Rate Adjustment filing on September 16, 201915, 2020 and the DPU approved a $33.6$29.9 million increase to base distribution rates on December 19, 201930, 2020 for effect on January 1, 2020.



2021.
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 implement a performance-based ratemaking plan. A final decision from the DPU is expected by October 30, 2020, with rates effective November 1, 2020.

New Hampshire:

PSNH Distribution Rates: In connection with the October 9, 2020 settlement agreement, PSNH is permitted step increases effective August 1, 2021 and August 1, 2022 to reflect plant additions in the calendar years 2020 and 2021, respectively. On April 26, 2019,May 3, 2021, PSNH filed an application with the NHPUCstep adjustment for approval of a temporary annual base distribution rate increase, effective July 1, 2019. 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 August 1, 2019 to customers, the provisions of the temporary base distribution rate increase were effective July 1, 2019. The settlement agreement also permits PSNH2020 plant in service to recover approximately $68.5a revenue requirement of $11.1 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 an application with the NHPUC for a permanent increase in base distribution rates of approximately $70 million, effective July 1, 2020, which includes the temporary rate increase request.  The temporary rates are subject to reconciliation based on the outcomeafter completion 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 emergency order, which extends the maximum adjudication period by six months,audit, for a maximum of 18 months. A decision by the NHPUC is now expected in the fourth quarter of 2020.  Temporary rates will remain in effect with a reconciliation of permanent rates retroactive to Julyeffective August 1, 2019 once permanent rates are set.

2021.
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:Massachusetts: On March 27, 2020, President Trump26, 2021, Governor Baker signed the $2.2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act.  Among other provisions, the CARES Act provides for loans and other benefitsinto law a climate change bill which permits electric or natural gas distribution companies 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 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 relatedassist Massachusetts municipalities in responding to the deferralrisks of employer payroll tax liability provision.  Weclimate change by owning solar facilities equal to up to 10 percent of the total installed solar generating capacity in Massachusetts as of July 31, 2020. Such facilities may be paired with energy storage where feasible to do so. This law will continueallow each of Eversource’s Massachusetts operating companies to evaluateown up to approximately 280 MWs of solar generating facilities in addition to the CARES Act impact; however, other than the cash flow benefit described, we do not expect the CARES Act to have a material impact.70 MWs previously constructed at NSTAR Electric.

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 20192020 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: There have been noSee Note 9B, "Commitments and Contingencies – Long-Term Contractual Arrangements," for discussion of material changes to contractual obligations identified and no material changes
with regard to the contractual obligations and commercial commitments previously disclosed insince the Eversource 20192020 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.


46

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, 20202021 and 20192020 included in this combined Quarterly Report on Form 10-Q:  
For the Three Months Ended March 31,
(Millions of Dollars)20212020Increase
Operating Revenues$2,825.8 $2,373.7 $452.1 
Operating Expenses:   
Purchased Power, Fuel and Transmission998.5 876.5 122.0 
Operations and Maintenance465.5 342.1 123.4 
Depreciation270.7 236.2 34.5 
Amortization108.0 49.8 58.2 
Energy Efficiency Programs188.1 148.4 39.7 
Taxes Other Than Income Taxes209.4 181.5 27.9 
Total Operating Expenses2,240.2 1,834.5 405.7 
Operating Income585.6 539.2 46.4 
Interest Expense137.8 134.7 3.1 
Other Income, Net34.2 24.1 10.1 
Income Before Income Tax Expense482.0 428.6 53.4 
Income Tax Expense114.0 91.9 22.1 
Net Income368.0 336.7 31.3 
Net Income Attributable to Noncontrolling Interests1.9 1.9 — 
Net Income Attributable to Common Shareholders$366.1 $334.8 $31.3 
 For the Three Months Ended March 31,
(Millions of Dollars)2020 2019 Increase/
(Decrease)
Operating Revenues$2,373.7
 $2,415.8
 $(42.1)
Operating Expenses:   
  
Purchased Power, Fuel and Transmission876.5
 974.9
 (98.4)
Operations and Maintenance342.1
 335.6
 6.5
Depreciation236.2
 214.9
 21.3
Amortization49.8
 71.0
 (21.2)
Energy Efficiency Programs148.4
 140.1
 8.3
Taxes Other Than Income Taxes181.5
 184.6
 (3.1)
Total Operating Expenses1,834.5
 1,921.1
 (86.6)
Operating Income539.2
 494.7
 44.5
Interest Expense134.7
 131.7
 3.0
Other Income, Net24.1
 31.0
 (6.9)
Income Before Income Tax Expense428.6
 394.0
 34.6
Income Tax Expense91.9
 83.4
 8.5
Net Income336.7
 310.6
 26.1
Net Income Attributable to Noncontrolling Interests1.9
 1.9
 —
Net Income Attributable to Common Shareholders$334.8
 $308.7
 $26.1

Eversource's consolidated financial information includes the results of the acquisition of the assets of Columbia Gas of Massachusetts (CMA) on October 9, 2020. The natural gas distribution assets acquired from CMA on October 9, 2020 were assigned to EGMA.

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: 
ElectricFirm Natural GasWater
 Sales Volumes (GWh)Percentage
Increase		Sales Volumes (MMcf)Percentage
Increase		Sales Volumes (MG)Percentage
(Decrease)/Increase
Three Months Ended March 31:202120202021202020212020
Traditional1,951 1,906 2.4 %— — — %258 434 (40.6)%
Decoupled and Special Contracts (1)(2)
10,732 10,465 2.6 %66,002 60,563 9.0 %4,478 4,372 2.4 %
Total Sales Volumes12,683 12,371 2.5 %66,002 60,563 9.0 %4,736 4,806 (1.5)%
 Electric Firm Natural Gas Water
 Sales Volumes (GWh) Percentage
Decrease		 Sales Volumes (MMcf) Percentage
Decrease		 Sales Volumes (MG) Percentage
Decrease
Three Months Ended March 31:2020 2019  2020 2019  2020 2019 
Traditional1,906
 1,968
 (3.2)% —
 —
 — % 434
 451
 (3.8)%
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 Volumes12,371
 13,151
 (5.9)% 39,062
 45,376
 (13.9)% 4,806
 4,829
 (0.5)%

(1)    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.

(1)
(2)    Eversource acquired CMA's natural gas distribution assets on October 9, 2020. Prior year sales volumes have been presented for comparative purposes.

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, YankeeNSTAR Gas, NSTAREGMA, Yankee 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.

47



Operating Revenues: Operating Revenues by segment increased/(decreased) for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, as follows:
(Millions of Dollars)Three Months Ended
Electric Distribution$95.0 
Natural Gas Distribution331.9 
Electric Transmission30.9 
Water Distribution(0.5)
Other48.4 
Eliminations(53.6)
Total Operating Revenues$452.1 
(Millions of Dollars)Three Months Ended
Electric Distribution$(28.6)
Natural Gas Distribution(20.3)
Electric Transmission29.2
Water Distribution1.4
Other36.5
Eliminations(60.3)
Total Operating Revenues$(42.1)

Electric and Natural Gas (excluding EGMA) Distribution Revenues:
Base Distribution Revenues:
•Base electric distribution revenues increased $31.8$23.2 million for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the impact of CL&P's base distribution rate increaseincreases at CL&P effective May 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings, an2020, at NSTAR Electric base distribution rate increase effective January 1, 2020,2021, and aat PSNH temporary base distribution rate increase effective JulyJanuary 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.2021.

•Base natural gas distribution revenues increased $8.6$29.0 million for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to a base distribution rate increaseincreases at NSTAR Gas effective November 1, 2020, which includes a shift of recovery into base rates of certain GSEP investments, and at Yankee Gas effective January 1, 2020.2021. Although new rates at Yankee Gas were implemented on March 1, 2021 to customers, the provisions of the base distribution rate increase were effective January 1, 2021.

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, recovery of these costs has no impact on earnings.  However, trackedTracked revenues doalso include certain incentives earned, return on rate base and on capital tracking mechanisms, 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,the Massachusetts utilities, pension and PBOP benefits and net metering for distributed generation. Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market, sales of natural gas to third party marketers, and the sale of RECs to various counterparties.

Tracked distribution revenues increased/(decreased) for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:
Three Months Ended
(Millions of Dollars)Electric DistributionNatural Gas Distribution
Retail Tariff Tracked Revenues:
Energy supply procurement$(29.1)$29.1 
Other distribution tracking mechanisms45.4 16.7 
Wholesale Market Sales Revenue58.1 4.3 
 Electric Distribution Natural Gas Distribution
(Millions of Dollars)Three Months Ended Three Months Ended
Retail Tariff Tracked Revenues:   
Energy supply procurement$(111.0) $(27.9)
Retail transmission(13.3) N/A
Other distribution tracking mechanisms12.4
 10.8
Wholesale Market Sales Revenue39.5
 (8.5)

The decrease in energy supply procurement within electric distribution was driven primarily by lower average sales volumes and lower average prices. The increase in energy supply procurement within natural gas distribution was driven by both higher average supply-related sales volumes and higher average prices.

The increase in the electric distribution wholesale market sales revenue within electric distribution was due primarily to higher average electricity market prices for wholesale sales at CL&P in the first quarter of 2021, as compared to the first quarter of 2020. ISO-NE average wholesale market prices increased approximately 125 percent comparatively, primarily driven by increased demand as a new zero-carbonresult of colder winter temperatures in 2021. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA entered into by CL&P in 2019, as required by regulation, from whichregulation.

EGMA Natural Gas Distribution Revenues: The addition of EGMA increased total operating revenues at the energy purchased from Millstone Nuclear Power Station (Millstone) was sold into the market beginning in the fourth quarter of 2019.natural gas distribution segment by $252.5 million.

Electric Transmission Revenues:  Electric transmission revenues increased $29.2$30.9 million for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to a higher transmission rate base as a result of our 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. 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.


48

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 decreasedincreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:
(Millions of Dollars)Three Months Ended
Purchased Power Costs$(18.3)
Natural Gas Costs133.7 
Transmission Costs16.7 
Eliminations(10.1)
Total Purchased Power, Fuel and Transmission$122.0 
(Millions of Dollars)Three Months Ended
Electric Distribution$(23.9)
Natural Gas Distribution(34.6)
Transmission(14.3)
Eliminations(25.6)
Total Purchased Power, Fuel and Transmission$(98.4)

The decrease in purchased power expense at the electric distribution business for the three months ended March 31, 2020, as compared to the same period in 2019, was driven primarily by lower average sales volumes and lower average prices associated with the procurement of energy supply, partially offset by higher average supply-related sales volumes. The increase in costs at the impactnatural gas distribution segment was due primarily to the addition of energy purchases from the new Millstone PPA. The decrease inEGMA natural gas supply costs at our natural gas distribution business forin the three months ended March 31,first quarter of 2021 as a result of the 2020 as compared to the same period in 2019, was due primarily to lowerCMA asset acquisition of $95.1 million, and higher average supply-related sales volumes and higher average prices.

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

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)increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:
(Millions of Dollars)Three Months Ended
Base Electric Distribution (Non-Tracked Costs):
CL&P estimated assessment by PURA for Tropical Storm Isaias response$30.0 
Employee-related expenses, including labor and benefits14.9 
Storm restoration costs9.4 
Operations-related expenses, including vegetation management, vehicles, and outside services8.0 
Shared corporate costs (including computer software depreciation at Eversource Service)5.3 
Other non-tracked operations and maintenance1.3 
Total Base Electric Distribution (Non-Tracked Costs)68.9 
Tracked Costs (Electric Distribution and Electric Transmission)8.1 
Natural Gas Distribution:
Base (Non-Tracked) Costs, excluding EGMA4.6 
Tracked Costs, excluding EGMA1.0 
EGMA Operations and Maintenance45.6 
Total Natural Gas Distribution51.2 
Water Distribution— 
Parent and Other Companies and eliminations:
Eversource Parent and Other Companies - other operations and maintenance38.9 
Transition and Acquisition Costs3.7 
Eliminations(47.4)
Total Operations and Maintenance$123.4 
(Millions of Dollars)
Three Months
Ended
Base Electric Distribution (Non-Tracked Costs): 
Storm Restoration Costs$(8.6)
Employee-related expenses, including labor and benefits(2.4)
Operations-related expenses, including vegetation management, vehicles, and outside services0.5
Shared corporate costs (including computer software depreciation at Eversource Service)5.2
Other non-tracked operations and maintenance3.4
Total Base Electric Distribution (Non-Tracked Costs)(1.9)
Base Natural Gas Distribution (Non-Tracked Costs)1.2
Water Distribution(0.3)
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution) - Increase due primarily to higher electric transmission expenses and employee-related costs10.7
Other and eliminations: 
Eversource Parent and Other Companies - other operations and maintenance26.5
Acquisition costs related to our planned purchase of the assets of CMA4.9
Eliminations(34.6)
Total Operations and Maintenance$6.5

Depreciation expense increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due to higher utility plant in service balances.balances, and due to the addition of EGMA utility plant balances as a result of the 2020 CMA asset acquisition of $11.7 million.

Amortization expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms, and the amortization of certain costs as those costs are collected in rates.mechanisms. This deferral adjusts expense to match the corresponding revenues.revenues compared to the actual costs incurred. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization decreasedexpense also includes the amortization of certain costs as those costs are collected in rates. Amortization increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the deferral adjustment of energy supply, energy-related and energy-relatedother costs, which can fluctuate from period to period based on the timing of costs incurred and an increase in the recovery of PSNH stormrelated rate changes to recover these costs.

Energy Efficiency Programs expense increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to higher spending for CL&P'sthe deferral adjustment at NSTAR Electric, PSNH and PSNH'sNSTAR Gas, which reflects the actual costs of energy efficiency programs partially offset by a decrease in spending on certain largecompared to the amounts billed to customers, and the timing of the recovery of energy efficiency projects in 2020 compared to 2019 at NSTAR Electriccosts. The increase was also due to timing.the addition of EGMA energy efficiency program costs as a result of the 2020 CMA asset acquisition of $29.7 million. 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.
49



Taxes Other Than Income Taxes expense decreasedincreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to 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 balances.balances and higher Connecticut gross earnings taxes and due to the addition of EGMA property taxes as a result of the 2020 CMA asset acquisition of $7.5 million.

Interest Expense increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to an increase in interest on long-term debt as a result of new debt issuances ($6.89.4 million). Partially offsetting this increase was an increase and a decrease in AFUDC related to debt funds and other capitalized interest ($3.10.6 million) and, partially offset by a decrease in interest on notes payable ($2.24.5 million) and a decrease in interest expense on regulatory deferrals ($2.3 million).

Other Income, Net decreasedincreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to 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 ($5.37.4 million) and lower investment losses driven by market volatility ($3.7 million), partially offset by lower AFUDC related to equity funds ($1.4 million).

Income Tax Expense increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to higher pre-tax earnings ($7.311.2 million), higher state taxes ($4.57.3 million), lower share-based payment excess tax benefits ($2.3 million), an increase in a valuation allowance ($1.7 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($3.11.7 million), partially offset by an increase in share-based payment excess tax benefits ($4.8 million) and an increase in amortization of EDIT ($1.62.1 million).


50

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, 20202021 and 20192020 included in this combined Quarterly Report on Form 10-Q:
 For the Three Months Ended March 31,
CL&PNSTAR ElectricPSNH
(Millions of Dollars)20212020Increase/
(Decrease)		20212020Increase/
(Decrease)		20212020Increase/
(Decrease)
Operating Revenues$987.3 $899.7 $87.6 $737.0 $733.8 $3.2 $293.4 $276.4 $17.0 
Operating Expenses:     
Purchased Power and Transmission373.3 374.7 (1.4)226.5 242.4 (15.9)91.6 94.1 (2.5)
Operations and Maintenance175.4 135.6 39.8 143.2 122.3 20.9 54.7 47.1 7.6 
Depreciation83.4 78.4 5.0 82.8 78.3 4.5 29.5 24.3 5.2 
Amortization of Regulatory Assets, Net62.8 6.6 56.2 18.4 27.0 (8.6)18.5 20.1 (1.6)
Energy Efficiency Programs35.6 35.5 0.1 75.1 68.7 6.4 10.3 9.4 0.9 
Taxes Other Than Income Taxes91.4 83.0 8.4 54.6 48.8 5.8 22.2 19.8 2.4 
Total Operating Expenses821.9 713.8 108.1 600.6 587.5 13.1 226.8 214.8 12.0 
Operating Income165.4 185.9 (20.5)136.4 146.3 (9.9)66.6 61.6 5.0 
Interest Expense39.0 37.8 1.2 32.3 30.9 1.4 14.6 14.5 0.1 
Other Income, Net4.9 1.9 3.0 16.8 12.2 4.6 4.2 3.2 1.0 
Income Before Income Tax Expense131.3 150.0 (18.7)120.9 127.6 (6.7)56.2 50.3 5.9 
Income Tax Expense32.9 31.3 1.6 27.0 27.2 (0.2)11.5 10.7 0.8 
Net Income$98.4 $118.7 $(20.3)$93.9 $100.4 $(6.5)$44.7 $39.6 $5.1 
 For the Three Months Ended March 31,
 CL&P NSTAR Electric PSNH
(Millions of Dollars)2020 2019 Increase/
(Decrease)		 2020 2019 
Increase/
(Decrease)
 2020 2019 
Increase/
(Decrease)
Operating Revenues$899.7
 $849.2
 $50.5
 $733.8
 $797.6
 $(63.8) $276.4
 $276.4
 $—
Operating Expenses: 
  
  
      
      
Purchased Power and Transmission374.7
 319.8
 54.9
 242.4
 330.1
 (87.7) 94.1
 113.5
 (19.4)
Operations and Maintenance135.6
 130.6
 5.0
 122.3
 113.0
 9.3
 47.1
 52.6
 (5.5)
Depreciation78.4
 73.3
 5.1
 78.3
 72.6
 5.7
 24.3
 22.9
 1.4
Amortization of Regulatory Assets, Net6.6
 35.7
 (29.1) 27.0
 22.6
 4.4
 20.1
 13.7
 6.4
Energy Efficiency Programs35.5
 26.0
 9.5
 68.7
 76.7
 (8.0) 9.4
 6.7
 2.7
Taxes Other Than Income Taxes83.0
 92.0
 (9.0) 48.8
 44.8
 4.0
 19.8
 17.3
 2.5
Total Operating Expenses713.8
 677.4
 36.4
 587.5
 659.8
 (72.3) 214.8
 226.7
 (11.9)
Operating Income185.9
 171.8
 14.1
 146.3
 137.8
 8.5
 61.6
 49.7
 11.9
Interest Expense37.8
 35.8
 2.0
 30.9
 27.9
 3.0
 14.5
 14.4
 0.1
Other Income, Net1.9
 3.9
 (2.0) 12.2
 11.1
 1.1
 3.2
 7.0
 (3.8)
Income Before Income Tax Expense150.0
 139.9
 10.1
 127.6
 121.0
 6.6
 50.3
 42.3
 8.0
Income Tax Expense31.3
 29.4
 1.9
 27.2
 27.0
 0.2
 10.7
 9.5
 1.2
Net Income$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 is as follows:
 For the Three Months Ended March 31,
 20212020IncreasePercentage Increase
CL&P5,154 4,941 213 4.3 %
NSTAR Electric5,578 5,524 54 1.0 %
PSNH1,951 1,906 45 2.4 %
 For the Three Months Ended March 31,
 2020 2019 Decrease Percentage Decrease
CL&P4,941
 5,350
 (409) (7.6)%
NSTAR Electric5,524
 5,833
 (309) (5.3)%
PSNH1,906
 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 $50.5$87.6 million at CL&P, decreased $63.8$3.2 million at NSTAR Electric, and was unchanged$17.0 million at PSNH, for the three months ended March 31, 2020,2021, as compared to the same period in 2019.2020.

Base Distribution Revenues:
•CL&P's distribution revenues increased $13.4$8.6 million due primarily to the impact of its base distribution rate increase effective May 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.2020.
•NSTAR Electric's distribution revenues increased $7.6$6.6 million due to the impact of its base distribution rate increase effective January 1, 2021.
•PSNH's distribution revenues increased $8.0 million due primarily to the impact of its base distribution rate increase effective January 1, 2020.2021.
PSNH's distribution revenues increased $10.8 million due primarily to the impact of its temporary base distribution rate increase effective July 1, 2019, 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, recovery of these costs has no impact on earnings.  However, trackedTracked revenues doalso include certain incentives earned, return on rate base and on capital tracking mechanisms, 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. 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.

51



Tracked revenues increased/(decreased) for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:
(Millions of Dollars)CL&PNSTAR ElectricPSNH
Retail Tariff Tracked Revenues:
Energy supply procurement$2.4 $(20.0)$(11.5)
Other distribution tracking mechanisms19.7 8.2 17.5 
Wholesale Market Sales Revenue45.0 10.0 3.1 
(Millions of Dollars)CL&P NSTAR Electric PSNH
Retail Tariff Tracked Revenues:     
Energy supply procurement$(40.4) $(57.1) $(13.5)
Retail transmission(10.5) (4.9) 2.1
Other distribution tracking mechanisms30.4
 (14.7) (3.3)
Wholesale Market Sales Revenue51.0
 (10.0) (1.5)

The decrease in energy supply procurement reflectsat NSTAR Electric was driven by both lower average sales volumesprices and lower average supply-related sales volumes. The decrease in energy supply procurement at PSNH was driven primarily by lower average prices, partially offset by higher average supply-related sales volumes.

The increase in the electric distribution wholesale market sales revenue at CL&P was due primarily to higher average electricity market prices for wholesale sales in the three months ended March 31, 2020,first quarter of 2021, 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'sfirst quarter of 2020. ISO-NE average wholesale market sales revenueprices increased dueapproximately 125 percent comparatively, primarily to energydriven by increased demand as a result of colder winter temperatures in 2021. Volumes sold ininto the wholesale market resulting from energy purchasedwere primarily from the newsale of output generated by the Millstone PPA.PPA entered into in 2019, as required by regulation.

Transmission Revenues: Transmission revenues increased $11.4$14.4 million at CL&P, $12.3$9.8 million at NSTAR Electric, and $5.5$6.7 million at PSNH for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

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 $5.5$2.3 million at CL&P, $8.0$9.9 million at NSTAR Electric and $0.4$5.8 million at PSNH for the three months ended March 31, 2020,2021, as compared to the same period in 2019.2020.

Purchased Power 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 and Transmission expense increased/(decreased)decreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:
(Millions of Dollars)CL&PNSTAR ElectricPSNH
Purchased Power Costs$(1.7)$(6.3)$(10.3)
Transmission Costs2.8 0.3 13.6 
Eliminations(2.5)(9.9)(5.8)
Total Purchased Power and Transmission$(1.4)$(15.9)$(2.5)
(Millions of Dollars)CL&P NSTAR Electric PSNH
Purchased Power Costs$71.2
 $(74.7) $(20.4)
Transmission Costs(10.8) (4.9) 1.4
Eliminations(5.5) (8.1) (0.4)
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 and the cost of energy purchase contracts, as required by regulation.

The increase at CL&P was due primarily to the new Millstone PPA energy purchases, partially offset by lower average sales volumes and lower average prices associated with the procurement of energy supply.
•The decrease at both NSTAR ElectricCL&P and PSNH was due primarily to lower average sales volumes of power procured on behalf of our customers, as well as lower average prices associated withexpense related to the procurement of energy supply.supply resulting from lower average prices, partially offset by higher average supply-related sales volumes.
•The decrease at NSTAR Electric was due primarily to lower expense related to the procurement of energy supply resulting from lower average prices and lower average supply-related sales volumes.

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


52

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)increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:
(Millions of Dollars)CL&PNSTAR ElectricPSNH
Base Electric Distribution (Non-Tracked Costs): 
CL&P estimated assessment by PURA for Tropical Storm Isaias response$30.0 $— $— 
Employee-related expenses, including labor and benefits3.2 4.3 (1.3)
Storm restoration costs2.0 5.8 1.6 
Operations-related expenses, including vegetation management, vehicles, and outside services0.8 3.4 3.8 
Shared corporate costs (including computer software depreciation at Eversource Service)1.6 3.2 0.5 
Other non-tracked operations and maintenance0.2 (0.5)1.6 
Total Base Electric Distribution (Non-Tracked Costs)37.8 16.2 6.2 
Tracked Costs:
Transmission expenses1.4 — 1.6 
Other tracked operations and maintenance0.6 4.7 (0.2)
Total Tracked Costs2.0 4.7 1.4 
Total Operations and Maintenance$39.8 $20.9 $7.6 
(Millions of Dollars)CL&P NSTAR Electric PSNH
Base Electric Distribution (Non-Tracked Costs):     
Storm restoration costs$(2.4) $(4.4) $(1.8)
Employee-related expenses, including labor and benefits0.2
 (3.0) 0.4
Operations-related expenses, including vegetation management, vehicles, and outside services3.7
 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(2.1) 4.3
 1.2
Total Base Electric Distribution (Non-Tracked Costs)1.5
 0.1
 (3.5)
Tracked Costs:     
Transmission expenses(0.1) 4.2
 (0.9)
Other tracked operations and maintenance3.6
 5.0
 (1.1)
Total Tracked Costs3.5
 9.2
 (2.0)
Total Operations and Maintenance$5.0
 $9.3
 $(5.5)

Depreciation increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances.

Amortization of Regulatory Assets, Net expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory-approved cost tracking mechanisms, and the amortization of certain costs as those costs are collected in rates.mechanisms. This deferral adjusts expense to match the corresponding revenues.revenues compared to the actual costs incurred. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates. Amortization of Regulatory Assets, Net increased/decreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:

•The decreaseincrease at CL&P was drivendue primarily byto the deferral adjustment of energy supply, energy-related and energy-relatedother tracked costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.
•
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 increasedecrease at NSTAR Electric was due to the deferral adjustment of energy supply, energy-related costs and other tracked costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.
•The decrease at PSNH was due primarily to the impact in 2021 of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement, partially offset by the deferral adjustment of energy supplyother tracked costs, which can fluctuate from period to period based on the timing of costs incurred and energy-related costs, and an increase in storm cost recovery.related rate changes to recover these costs.

Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense increased/decreasedincreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:

•The increase at CL&P and PSNH was due to higher spending for energy efficiency programs.
The decreaseincreases at NSTAR Electric wasand PSNH were due to the deferral adjustment, which reflects actual costs of energy efficiency programs compared to the estimated amounts billed to customers, and the timing of spending on certain largethe recovery of energy efficiency projects in 2020, as compared to 2019.costs.

Taxes Other Than Income Taxes increased/decreasedincreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:

•The decreaseincrease 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 a higher utility plant balances.balance and higher gross earnings taxes.
•The increases at NSTAR Electric and PSNH were due to higher property taxes as a result of higher utility plant balances.

Interest Expense increased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:

•The increase at CL&P was due to a decrease in AFUDC related to debt funds ($1.2 million) and higher interest on long-term debt ($3.50.8 million), partially offset by a decrease in interest expense on regulatory deferrals ($0.30.6 million) and an .
•Theincrease at NSTAR Electric was due to higher interest on long-term debt ($2.9 million), partially offset by a decrease in interest expense on regulatory deferrals ($1.0 million).
•The increase at PSNH was due to a decrease in AFUDC related to debt funds ($0.40.5 million).
•
Theincrease at NSTAR Electric was due to higher interest on long-term debt ($3.1 and higher interest on long-term debt ($0.5 million), partially offset by a decrease in interest expense on regulatory deferrals ($0.8 million).

53



Other Income, Net increased/decreasedincreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:

•The decreaseincrease at CL&P was due primarily to investment income in 2021 compared to 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 ($1.7 million) and an increase in AFUDC related to equity funds ($1.3 million).
The increase at NSTAR Electric was due to an increase in AFUDC related to equity funds ($1.03.8 million) and an increase related to pension, SERP and PBOP non-service income components ($0.91.6 million), partially offset by investment lossesa decrease in 2020, as comparedAFUDC related to investment income in 2019 driven by market volatilityequity funds ($1.02.2 million).
•The decreaseincrease at PSNHNSTAR Electric was due primarily 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 ($1.42.2 million), investment income in 2021 compared to investment losses in 2020 driven by market volatility ($1.5 million) and an increase in AFUDC related to equity funds ($1.31.2 million).
•The increase at PSNH was due primarily to an increase related to pension, SERP and PBOP non-service income components ($0.8 million), investment income in 2021 compared to investment losses in 2020 driven by market volatility ($0.6 million) and higher interest income ($0.4 million), partially offset by a decrease in AFUDC related to equity funds ($0.9 million).

Income Tax Expense increasedincreased/decreased for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to the following:

•The increase at CL&P was due primarily to higher state taxes ($1.8 million), lower share-based payment excess tax benefits ($0.8 million), an increase in a valuation allowance ($1.7 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.2 million), partially offset by lower pre-tax earnings ($3.9 million).
•The decrease at NSTAR Electric was due primarily to lower pre-tax earnings ($1.4 million) and lower state taxes ($0.6 million), partially offset by an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.9 million), and lower share-based payment excess tax benefits ($0.9 million).
•The increase at PSNH was due primarily to higher pre-tax earnings ($2.01.2 million) and lower share-based payment excess tax benefits ($0.2 million), higherpartially offset by lower state taxes ($1.00.1 million) and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.5 million), partially offset by an increase in share-based payment excess tax 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 flow-through items and permanent differences ($0.2 million), partially offset by an increase in 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 $8.2decreased $20.3 million for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to an after-tax charge of $0.07 per share for the accrual of a $30 million estimated assessment by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. Earnings were also unfavorably impacted by higher operations and maintenance expense, higher depreciation expense, and higher property tax expense. The earnings decrease was partially offset by the base distribution rate increase effective May 1, 2019,2020, higher earnings from its capital tracker mechanism due to increased electric system improvements, and an increase in transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by investment loss in 2020 compared to investment income in 2019 driven by market volatility, higher depreciation expense, higher operations and maintenance expense, and higher interest expense.

NSTAR Electric's earnings increased $6.4decreased $6.5 million for the three months ended March 31, 2020,2021, as compared to the same period in 2019,2020, due primarily to higher operations and maintenance expense driven by higher storm restoration costs, higher employee-related expenses due to timing of capital work (primarily related to meter installations) delayed as a result of increased storms and the impact of COVID-19, and higher operations-related expenses. Earnings were also unfavorably impacted by higher property tax expense, and higher depreciation expense. The earnings decrease was partially offset by the base distribution rate increase effective January 1, 2021, and an increase in transmission earnings driven by a higher transmission rate base.

PSNH's earnings increased $5.1 million for the three months ended March 31, 2021, as compared to the same period in 2020, due primarily to the base distribution rate increase effective January 1, 2021, the impact in 2021 of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement, and an increase in transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by higher interestoperations and maintenance 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 operations and maintenance expense. The earnings increase was partially offset by the absence of the first quarter 2019 recognition of carrying charges on its 2013 through 2016 storm costs approved for recovery.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of $132.2$156.2 million for the three months ended March 31, 2020,2021, as compared to $198.3$132.2 million in the same period of 2019.2020. The decreaseincrease in operating cash flows was due primarily to the timing of collections for regulatory tracking mechanisms and the timing of cash payments made on our accounts payable. Partially offsetting this unfavorable impact wasthese favorable impacts were cash payments made in the first quarter of 2021 for storm restoration costs of approximately $44 million related to Tropical Storm Isaias, the timing of cash collections for regulatory tracking mechanisms, the timing of collections on our accounts receivable, and pension contributions of $18.9 million made in the timingfirst quarter of other working capital items and lower income tax refunds received of $5.2 million in 2020.2021.

NSTAR Electric had cash flows provided by operating activities of $61.7$172.6 million for the three months ended March 31, 2020,2021, as compared to $137.0$61.7 million in the same period of 2019.2020. The decreaseincrease in operating cash flows was due primarily to the timing of cash collections on our accounts receivable, an increase of $46.4 million in income tax refunds received in the timingfirst quarter of cash payments made on our accounts payable and other working capital items, and2021, as compared to the same period in 2020, the timing of collections for regulatory tracking mechanisms. In addition, there were lower income tax refunds receivedmechanisms, and the timing of $13.2 million in 2020.other working capital items, including cash payments on our accounts payable.

54

PSNH had cash flows provided by operating activities of $58.5$74.9 million for the three months ended March 31, 2020,2021, as compared to $86.1$58.5 million in the same period of 2019.2020.  The decreaseincrease in operating cash flows was due primarily to income tax refunds received of $8.3 million in the first quarter of 2021, compared to income tax payments of $1.2 million in the first quartersame period of 2020, as compared to income tax refunds receivedthe timing of $20.3 million incollections for regulatory tracking mechanisms, and the same period in 2019, andtiming of other working capital items. Partially offsetting these favorable impacts were the timing of cash payments made on our 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

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, 2020,2021, our regulated companies held collateral (letters of credit or cash) of $15.0 million from counterparties related to our standard service contracts.  As of March 31, 2020,2021, Eversource had $19.3$34.6 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 20192020 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 20192020 Form 10-K.

ITEM 4.CONTROLS AND PROCEDURES
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, 20202021 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, 20202021 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.



55

PART II. OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS
ITEM 1.    LEGAL PROCEEDINGS

We are parties to various legal proceedings.  We have disclosed certain legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our 20192020 Form 10-K.  These disclosures are incorporated herein by reference.  

There have been no material legal proceedings identified and no material changes with regard to the legal proceedings previously disclosed in our 20192020 Form 10-K.

ITEM 1A.RISK FACTORS
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 20192020 Form 10-K, which risk factors are incorporated herein by reference.  These risk factors should be considered carefully in evaluating our risk profile.  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, thereThere have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our 20192020 Form 10-K.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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 matching contributions under the Eversource 401k Plan.
PeriodTotal Number of
Shares Purchased		Average Price
Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2021— $— — — 
February 1 - February 28, 2021— — — — 
March 1 - March 31, 20212,298 86.37 — — 
Total2,298 $86.37 — — 

56
Period
Total Number of
Shares Purchased
Average Price
Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate 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, 20202,428
79.71
—
—
Total2,428
$79.71
—
—


ITEM 6.    EXHIBITS

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)
*44.1
31
31.1
32
Listing of Exhibits (CL&P)
31
31.1
32
Listing of Exhibits (NSTAR Electric Company)
*431
31
Certification by the Chairman of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1
32
Listing of Exhibits (PSNH)
31
31.1
32
Listing of Exhibits (Eversource, CL&P, NSTAR Electric, PSNH)
101.INSInline 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.SCHInline XBRL Taxonomy Extension Schema
101.CALInline XBRL Taxonomy Extension Calculation
101.DEFInline XBRL Taxonomy Extension Definition
101.LABInline XBRL Taxonomy Extension Labels


101.PREInline XBRL Taxonomy Extension Presentation
101.LAB104Inline XBRL Taxonomy Extension Labels
101.PREInline XBRL Taxonomy Extension Presentation
104The cover page from the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020,2021, formatted in Inline XBRL

57

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 8, 202010, 2021By:/s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer



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.

THE CONNECTICUT LIGHT AND POWER COMPANY
May 8, 202010, 2021By:/s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer



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.

NSTAR ELECTRIC COMPANY
May 8, 202010, 2021By:/s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer



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.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
May 8, 202010, 2021By:/s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer

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