Docoh
Loading...

ES Eversource Energy

Filed: 5 Nov 21, 2:16pm
000007274112/312021Q3FALSE000002342612/31000031525612/31000001337212/31http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Memberhttp://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Memberhttp://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Memberhttp://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Memberhttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenueshttp://fasb.org/us-gaap/2021-01-31#Revenues0000072741es:OtherRevenueAdjustmentsfromContractswithCustomersMember2021-07-012021-09-30

es-20210930_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 EndedSeptember 30, 2021
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: 001-05324
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: 000-00404
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: 001-02301
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: 001-06392
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 filerAccelerated
filer
Non-accelerated
filer
Smaller reporting companyEmerging growth company
The Connecticut Light and Power CompanyLarge accelerated filerAccelerated
filer
Non-accelerated filerSmaller reporting companyEmerging growth company
NSTAR Electric CompanyLarge accelerated filerAccelerated
filer
Non-accelerated filerSmaller reporting companyEmerging growth company
Public Service Company of New HampshireLarge accelerated filerAccelerated
filer
Non-accelerated filerSmaller reporting companyEmerging 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 issuer's classes of common stock, as of the latest practicable date.
Company - Class of StockOutstanding as of October 31, 2021
Eversource Energy Common Shares, $5.00 par value343,805,812 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, 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
AquarionAquarion Company and its subsidiaries
NPTNorthern Pass Transmission LLC
Northern PassThe high-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
North East OffshoreNorth East Offshore, LLC, an offshore wind business holding company being developed jointly by Eversource and Denmark-based Ørsted
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, NSTAR Gas and EGMA, NPT, Aquarion, and the solar power facilities of NSTAR Electric
Regulators and Government Agencies:
BOEMU.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
Other Terms and Abbreviations:
ADITAccumulated Deferred Income Taxes
AFUDCAllowance For Funds Used During Construction
AOCIAccumulated Other Comprehensive Income
AROAsset Retirement Obligation
BcfBillion cubic feet
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
ESOPEmployee Stock Ownership Plan
Eversource 2020 Form 10-KThe Eversource Energy and Subsidiaries 2020 combined Annual Report on Form 10-K as filed with the SEC
FitchFitch Ratings
FMCCFederally Mandated Congestion Charge
GAAPAccounting principles generally accepted in the United States of America
GSCGeneration Service Charge
GWhGigawatt-Hours
IPPIndependent Power Producers
ISO-NE TariffISO-NE FERC Transmission, Markets and Services Tariff
kVKilovolt
kVaKilovolt-ampere
kWKilowatt (equal to one thousand watts)
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
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
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 IFINANCIAL INFORMATION
   
ITEM 1.Financial Statements (Unaudited)
   
 Eversource Energy and Subsidiaries (Unaudited)
 
 
 Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Common Shareholders' Equity
 
  
 The Connecticut Light and Power Company (Unaudited)
 
 
 Condensed Statements of Comprehensive Income
Condensed Statements of Common Stockholder's Equity
 
  
 NSTAR Electric Company and Subsidiary (Unaudited)
 
 
 Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Common Stockholder's Equity
 
  
 Public Service Company of New Hampshire and Subsidiaries (Unaudited)
 
 
 Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Common Stockholder's Equity
 
  
 
   
 
 
The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and
Public Service Company of New Hampshire and Subsidiaries
  
   
   
PART II – OTHER INFORMATION
   
  
ITEM 1A.Risk Factors
  
ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds
  
  
SIGNATURES

iii


EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of September 30, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$88,204 $106,599 
Receivables, Net (net of allowance for uncollectible accounts of $441,723
   and $358,851 as of September 30, 2021 and December 31, 2020, respectively)
1,288,758 1,195,925 
Unbilled Revenues176,325 233,025 
Fuel, Materials, Supplies and REC Inventory217,286 265,599 
Regulatory Assets1,016,304 1,076,556 
Prepayments177,869 105,620 
Other Current Assets108,807 146,819 
Total Current Assets3,073,553 3,130,143 
Property, Plant and Equipment, Net32,467,069 30,882,523 
Deferred Debits and Other Assets:  
Regulatory Assets5,458,928 5,493,330 
Goodwill4,453,618 4,445,988 
Investments in Unconsolidated Affiliates1,356,313 1,107,143 
Marketable Securities466,628 456,617 
Other Long-Term Assets737,946 583,854 
Total Deferred Debits and Other Assets12,473,433 12,086,932 
Total Assets$48,014,055 $46,099,598 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable$711,000 $1,249,325 
Long-Term Debt – Current Portion798,880 1,053,186 
Rate Reduction Bonds – Current Portion43,210 43,210 
Accounts Payable1,289,225 1,370,647 
Regulatory Liabilities612,931 389,430 
Other Current Liabilities802,831 809,214 
Total Current Liabilities4,258,077 4,915,012 
Deferred Credits and Other Liabilities:  
Accumulated Deferred Income Taxes4,341,105 4,095,339 
Regulatory Liabilities3,907,582 3,850,781 
Derivative Liabilities256,569 294,535 
Asset Retirement Obligations505,005 499,713 
Accrued Pension, SERP and PBOP1,330,037 1,653,788 
Other Long-Term Liabilities974,497 948,506 
Total Deferred Credits and Other Liabilities11,314,795 11,342,662 
Long-Term Debt17,420,300 15,125,876 
Rate Reduction Bonds453,702 496,912 
Noncontrolling Interest – Preferred Stock of Subsidiaries155,570 155,570 
Common Shareholders' Equity: 
Common Shares1,789,092 1,789,092 
Capital Surplus, Paid In8,050,872 8,015,663 
Retained Earnings4,906,151 4,613,201 
Accumulated Other Comprehensive Loss(71,865)(76,411)
Treasury Stock(262,639)(277,979)
Common Shareholders' Equity14,411,611 14,063,566 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$48,014,055 $46,099,598 

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 September 30,For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information)2021202020212020
Operating Revenues$2,432,794 $2,343,642 $7,381,172 $6,670,497 
 
Operating Expenses:    
Purchased Power, Fuel and Transmission880,639 806,254 2,529,217 2,312,957 
Operations and Maintenance389,065 332,031 1,265,754 1,006,148 
Depreciation276,846 244,453 822,197 721,179 
Amortization45,236 57,515 158,860 130,687 
Energy Efficiency Programs143,796 145,047 460,814 408,794 
Taxes Other Than Income Taxes213,881 197,112 623,827 556,726 
Total Operating Expenses1,949,463 1,782,412 5,860,669 5,136,491 
Operating Income483,331 561,230 1,520,503 1,534,006 
Interest Expense147,962 134,066 431,162 403,067 
Other Income, Net43,768 29,218 124,588 83,565 
Income Before Income Tax Expense379,137 456,382 1,213,929 1,214,504 
Income Tax Expense94,091 108,242 294,461 275,621 
Net Income285,046 348,140 919,468 938,883 
Net Income Attributable to Noncontrolling Interests1,880 1,880 5,639 5,639 
Net Income Attributable to Common Shareholders$283,166 $346,260 $913,829 $933,244 
Basic Earnings Per Common Share$0.82 $1.01 $2.66 $2.77 
Diluted Earnings Per Common Share$0.82 $1.01 $2.65 $2.76 
Weighted Average Common Shares Outstanding:  
Basic344,023,846 343,076,614 343,848,905 337,375,172 
Diluted344,669,782 343,773,602 344,480,056 338,424,100 

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 September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Net Income$285,046 $348,140 $919,468 $938,883 
Other Comprehensive Income, Net of Tax:    
Qualified Cash Flow Hedging Instruments115 602 967 1,218 
Changes in Unrealized (Losses)/Gains on
   Marketable Securities
(106)(134)(569)295 
Changes in Funded Status of Pension, SERP and
   PBOP Benefit Plans
2,468 1,693 4,148 3,149 
Other Comprehensive Income, Net of Tax2,477 2,161 4,546 4,662 
Comprehensive Income Attributable to
   Noncontrolling Interests
(1,880)(1,880)(5,639)(5,639)
Comprehensive Income Attributable to Common
   Shareholders
$285,643 $348,421 $918,375 $937,906 

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 Nine Months Ended September 30, 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 
Net Income   266,400   266,400 
Dividends on Common Shares - $0.6025 Per Share   (206,893)  (206,893)
Dividends on Preferred Stock   (1,880)  (1,880)
Long-Term Incentive Plan Activity  6,162    6,162 
Issuance of Treasury Shares166,805  10,679   3,120 13,799 
Other Comprehensive Income   881  881 
Balance as of June 30, 2021343,601,103 1,789,092 8,032,959 4,830,058 (74,342)(265,878)14,311,889 
Net Income   285,046   285,046 
Dividends on Common Shares - $0.6025 Per Share   (207,073)  (207,073)
Dividends on Preferred Stock   (1,880)  (1,880)
Long-Term Incentive Plan Activity  6,478    6,478 
Issuance of Treasury Shares173,221  11,435   3,239 14,674 
Other Comprehensive Income   2,477  2,477 
Balance as of September 30, 2021343,774,324 $1,789,092 $8,050,872 $4,906,151 $(71,865)$(262,639)$14,411,611 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3


EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(Unaudited)
For the Nine Months Ended September 30, 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 
Net Income254,112 254,112 
Dividends on Common Shares - $0.5675 Per Share(190,964)(190,964)
Dividends on Preferred Stock(1,880)(1,880)
Issuance of Common Shares - $5 par value6,000,000 30,000 487,560 517,560 
Long-Term Incentive Plan Activity7,694 7,694 
Issuance of Treasury Shares216,675 12,524 4,024 16,548 
Capital Stock Expense(8,321)(8,321)
Other Comprehensive Income553 553 
Balance as of June 30, 2020342,627,862 1,789,092 7,979,146 4,384,093 (62,558)(284,515)13,805,258 
Net Income348,140 348,140 
Dividends on Common Shares - $0.5675 Per Share(194,493)(194,493)
Dividends on Preferred Stock(1,880)(1,880)
Long-Term Incentive Plan Activity6,921 6,921 
Issuance of Treasury Shares169,611 10,909 3,001 13,910 
Other Comprehensive Income2,161 2,161 
Balance as of September 30, 2020342,797,473 $1,789,092 $7,996,976 $4,535,860 $(60,397)$(281,514)$13,980,017 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4


EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Nine Months Ended September 30,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$919,468 $938,883 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation822,197 721,179 
Deferred Income Taxes191,346 156,795 
Uncollectible Expense39,690 31,101 
Pension, SERP and PBOP (Income)/Expense, Net(10,882)9,153 
Pension and PBOP Contributions(140,000)(107,985)
Regulatory Over/(Under) Recoveries, Net87,455 (29,287)
Charges at CL&P related to PURA Settlement Agreement and Storm Performance Penalty103,583 — 
Amortization158,860 130,687 
Other(229,878)(69,216)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(158,205)(193,895)
Fuel, Materials, Supplies and REC Inventory48,312 21,102 
Taxes Receivable/Accrued, Net44,003 89,759 
Accounts Payable(258,509)(121,034)
Other Current Assets and Liabilities, Net(97,167)(81,033)
Net Cash Flows Provided by Operating Activities1,520,273 1,496,209 
Investing Activities:  
Investments in Property, Plant and Equipment(2,211,136)(2,101,564)
Proceeds from Sales of Marketable Securities334,619 386,712 
Purchases of Marketable Securities(313,961)(391,368)
Proceeds from the Sale of Hingham Water System— 110,536 
Investments in Unconsolidated Affiliates, Net(245,245)(31,677)
Other Investing Activities17,436 17,647 
Net Cash Flows Used in Investing Activities(2,418,287)(2,009,714)
Financing Activities:  
Issuance of Common Shares, Net of Issuance Costs— 929,025 
Cash Dividends on Common Shares(603,611)(555,655)
Cash Dividends on Preferred Stock(5,639)(5,639)
Decrease in Notes Payable(458,325)(1,174,870)
Repayment of Rate Reduction Bonds(43,210)(43,210)
Issuance of Long-Term Debt3,150,000 2,360,000 
Retirement of Long-Term Debt(1,142,500)(302,236)
Other Financing Activities(45,522)18,030 
Net Cash Flows Provided by Financing Activities851,193 1,225,445 
Net (Decrease)/Increase in Cash and Restricted Cash(46,821)711,940 
Cash and Restricted Cash - Beginning of Period264,950 117,063 
Cash and Restricted Cash - End of Period$218,129 $829,003 

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


5



THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of September 30, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$62,791 $90,801 
Receivables, Net (net of allowance for uncollectible accounts of $195,463 and
   $157,447 as of September 30, 2021 and December 31, 2020, respectively)
549,144 459,214 
Accounts Receivable from Affiliated Companies38,544 17,486 
Unbilled Revenues52,589 57,407 
Materials and Supplies54,894 57,924 
Regulatory Assets325,268 345,622 
Prepaid Property Taxes76,829 25,779 
Prepayments and Other Current Assets47,402 58,171 
Total Current Assets1,207,461 1,112,404 
Property, Plant and Equipment, Net10,598,836 10,234,556 
Deferred Debits and Other Assets:  
Regulatory Assets1,981,805 1,866,152 
Other Long-Term Assets267,312 242,862 
Total Deferred Debits and Other Assets2,249,117 2,109,014 
Total Assets$14,055,414 $13,455,974 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:
Accounts Payable$473,287 $451,240 
Accounts Payable to Affiliated Companies98,298 51,118 
Obligations to Third Party Suppliers53,183 49,967 
Regulatory Liabilities311,269 137,166 
Derivative Liabilities72,249 68,767 
Other Current Liabilities168,547 102,060 
Total Current Liabilities1,176,833 860,318 
Deferred Credits and Other Liabilities: 
Accumulated Deferred Income Taxes1,495,407 1,408,343 
Regulatory Liabilities1,213,469 1,204,942 
Derivative Liabilities256,569 294,535 
Accrued Pension, SERP and PBOP313,206 478,325 
Other Long-Term Liabilities154,249 133,690 
Total Deferred Credits and Other Liabilities3,432,900 3,519,835 
Long-Term Debt4,215,096 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 Earnings2,243,004 2,173,367 
Accumulated Other Comprehensive Income264 302 
Common Stockholder's Equity5,114,385 5,044,786 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$14,055,414 $13,455,974 

The accompanying notes are an integral part of these unaudited condensed financial statements.
6


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Operating Revenues$919,643 $994,270 $2,736,513 $2,711,394 
Operating Expenses:  
Purchased Power and Transmission392,301 399,117 1,073,712 1,089,232 
Operations and Maintenance137,816 147,487 465,630 417,717 
Depreciation85,304 80,583 253,132 238,735 
Amortization of Regulatory Assets, Net28,921 36,365 76,637 37,215 
Energy Efficiency Programs35,714 41,829 100,810 109,655 
Taxes Other Than Income Taxes99,901 97,715 275,178 260,571 
Total Operating Expenses779,957 803,096 2,245,099 2,153,125 
Operating Income139,686 191,174 491,414 558,269 
Interest Expense42,778 38,369 124,371 114,972 
Other Income, Net6,903 5,917 21,690 16,273 
Income Before Income Tax Expense103,811 158,722 388,733 459,570 
Income Tax Expense33,658 38,625 104,626 103,464 
Net Income$70,153 $120,097 $284,107 $356,106 
The accompanying notes are an integral part of these unaudited condensed financial statements.


CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Net Income$70,153 $120,097 $284,107 $356,106 
Other Comprehensive Loss, Net of Tax:    
Qualified Cash Flow Hedging Instruments(7)(7)(20)(20)
Changes in Unrealized (Losses)/Gains on
   Marketable Securities
(2)(4)(18)11 
Other Comprehensive Loss, Net of Tax(9)(11)(38)(9)
Comprehensive Income$70,144 $120,086 $284,069 $356,097 

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

7


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Nine Months Ended September 30, 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 
Net Income   115,556  115,556 
Dividends on Preferred Stock   (1,390) (1,390)
Dividends on Common Stock(70,100)(70,100)
Other Comprehensive Income    
Balance as of June 30, 20216,035,205 60,352 2,810,765 2,244,341 273 5,115,731 
Net Income   70,153  70,153 
Dividends on Preferred Stock   (1,390) (1,390)
Dividends on Common Stock(70,100)(70,100)
Other Comprehensive Loss    (9)(9)
Balance as of September 30, 20216,035,205 $60,352 $2,810,765 $2,243,004 $264 $5,114,385 

For the Nine Months Ended September 30, 2020
 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, 20206,035,205 $60,352 $2,535,765 $1,791,392 $316 $4,387,825 
Net Income   118,738  118,738 
Dividends on Preferred Stock   (1,390) (1,390)
Dividends on Common Stock   (69,500) (69,500)
Adoption of Accounting Standards Update 2016-13(900)(900)
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 
Net Income   117,271  117,271 
Dividends on Preferred Stock   (1,390) (1,390)
Other Comprehensive Income    
Balance as of June 30, 20206,035,205 60,352 2,535,765 1,954,221 318 4,550,656 
Net Income   120,097  120,097 
Dividends on Preferred Stock   (1,390) (1,390)
Capital Contributions from Eversource Parent125,000 125,000 
Other Comprehensive Loss    (11)(11)
Balance as of September 30, 20206,035,205 $60,352 $2,660,765 $2,072,928 $307 $4,794,352 

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

8


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Nine Months Ended September 30,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$284,107 $356,106 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation253,132 238,735 
Deferred Income Taxes77,147 92,590 
Uncollectible Expense10,183 10,013 
Pension, SERP, and PBOP Expense, Net4,478 8,629 
Pension Contributions(78,913)(23,200)
Regulatory Underrecoveries, Net(19,404)(32,051)
Charges related to PURA Settlement Agreement and Storm Performance Penalty103,583 — 
Amortization of Regulatory Assets, Net76,637 37,215 
Other(74,179)(63,525)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(165,423)(153,464)
Taxes Receivable/Accrued, Net45,762 (1,515)
Accounts Payable(54,226)(1,976)
Other Current Assets and Liabilities, Net(12,315)(68,316)
Net Cash Flows Provided by Operating Activities450,569 399,241 
Investing Activities:  
Investments in Property, Plant and Equipment(563,234)(609,690)
Other Investing Activities251 496 
Net Cash Flows Used in Investing Activities(562,983)(609,194)
Financing Activities:  
Cash Dividends on Common Stock(210,300)(69,500)
Cash Dividends on Preferred Stock(4,169)(4,169)
Capital Contributions from Eversource Parent— 125,000 
Issuance of Long-Term Debt425,000 — 
Retirement of Long-Term Debt(120,500)— 
Increase in Notes Payable to Eversource Parent— 172,100 
Other Financing Activities(5,664)(1,214)
Net Cash Flows Provided by Financing Activities84,367 222,217 
Net (Decrease)/Increase in Cash and Restricted Cash(28,047)12,264 
Cash and Restricted Cash - Beginning of Period99,809 4,971 
Cash and Restricted Cash - End of Period$71,762 $17,235 

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



9



NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of September 30, 2021As of December 31, 2020
ASSETS  
Current Assets: 
Cash$3,538 $102 
Receivables, Net (net of allowance for uncollectible accounts of $105,020 and
   $91,583 as of September 30, 2021 and December 31, 2020, respectively)
489,503 403,045 
Accounts Receivable from Affiliated Companies27,417 30,095 
Unbilled Revenues47,844 38,342 
Materials, Supplies and REC Inventory83,667 133,894 
Taxes Receivable— 65,051 
Regulatory Assets388,408 399,882 
Prepayments and Other Current Assets22,490 21,833 
Total Current Assets1,062,867 1,092,244 
Property, Plant and Equipment, Net10,611,728 10,123,062 
Deferred Debits and Other Assets: 
Regulatory Assets1,247,715 1,304,019 
Prepaid PBOP224,244 204,138 
Other Long-Term Assets185,555 162,836 
Total Deferred Debits and Other Assets1,657,514 1,670,993 
Total Assets$13,332,109 $12,886,299 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable$138,000 $195,000 
Notes Payable to Eversource Parent24,600 21,300 
Long-Term Debt – Current Portion— 250,000 
Accounts Payable338,369 383,558 
Accounts Payable to Affiliated Companies78,974 95,703 
Obligations to Third Party Suppliers137,211 98,572 
Renewable Portfolio Standards Compliance Obligations72,124 127,536 
Regulatory Liabilities205,771 164,761 
Other Current Liabilities118,747 72,118 
Total Current Liabilities1,113,796 1,408,548 
Deferred Credits and Other Liabilities:  
Accumulated Deferred Income Taxes1,494,976 1,459,906 
Regulatory Liabilities1,561,572 1,550,390 
Accrued Pension and SERP110,752 172,571 
Other Long-Term Liabilities344,088 337,245 
Total Deferred Credits and Other Liabilities3,511,388 3,520,112 
Long-Term Debt3,984,724 3,393,221 
Preferred Stock Not Subject to Mandatory Redemption43,000 43,000 
Common Stockholder's Equity:  
Common Stock— — 
Capital Surplus, Paid In2,053,942 1,993,942 
Retained Earnings2,624,784 2,527,167 
Accumulated Other Comprehensive Income475 309 
Common Stockholder's Equity4,679,201 4,521,418 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$13,332,109 $12,886,299 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Operating Revenues$918,698 $875,371 $2,343,116 $2,270,174 
Operating Expenses:    
Purchased Power and Transmission294,052 267,375 711,667 702,117 
Operations and Maintenance142,074 131,143 421,649 369,293 
Depreciation84,820 80,366 251,530 238,232 
Amortization of Regulatory Assets, Net8,073 22,527 23,963 69,139 
Energy Efficiency Programs86,699 85,244 226,071 210,666 
Taxes Other Than Income Taxes54,723 54,680 163,501 153,985 
Total Operating Expenses670,441 641,335 1,798,381 1,743,432 
Operating Income248,257 234,036 544,735 526,742 
Interest Expense37,329 31,029 106,829 95,000 
Other Income, Net20,215 12,802 58,941 38,152 
Income Before Income Tax Expense231,143 215,809 496,847 469,894 
Income Tax Expense53,692 50,081 114,560 106,309 
Net Income$177,451 $165,728 $382,287 $363,585 

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 September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Net Income$177,451 $165,728 $382,287 $363,585 
Other Comprehensive (Loss)/Income, Net of Tax:  
  Changes in Funded Status of SERP Benefit Plan(40)(43)(122)(129)
  Qualified Cash Flow Hedging Instruments109 293 327 
  Changes in Unrealized (Losses)/Gains on
     Marketable Securities
(1)(1)(5)
Other Comprehensive (Loss)/Income, Net of Tax(36)65 166 200 
Comprehensive Income$177,415 $165,793 $382,453 $363,785 

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

11


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Nine Months Ended September 30, 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 $— $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 — 1,993,942 2,414,201 370 4,408,513 
Net Income   110,912  110,912 
Dividends on Preferred Stock   (490) (490)
Dividends on Common Stock(76,800)(76,800)
Capital Contributions from Eversource Parent60,000 60,000 
Other Comprehensive Income    141 141 
Balance as of June 30, 2021200 — 2,053,942 2,447,823 511 4,502,276 
Net Income   177,451  177,451 
Dividends on Preferred Stock   (490) (490)
Other Comprehensive Loss    (36)(36)
Balance as of September 30, 2021200 $— $2,053,942 $2,624,784 $475 $4,679,201 

For the Nine Months Ended September 30, 2020
 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, 2020200 $— $1,813,442 $2,346,287 $155 $4,159,884 
Net Income   100,390  100,390 
Dividends on Preferred Stock   (490) (490)
Dividends on Common Stock   (196,500) (196,500)
Adoption of Accounting Standards Update 2016-13(161)(161)
Other Comprehensive Income    67 67 
Balance as of March 31, 2020200 — 1,813,442 2,249,526 222 4,063,190 
Net Income   97,468  97,468 
Dividends on Preferred Stock   (490) (490)
Other Comprehensive Income    68 68 
Balance as of June 30, 2020200 — 1,813,442 2,346,504 290 4,160,236 
Net Income   165,728  165,728 
Dividends on Preferred Stock   (490) (490)
Other Comprehensive Income    65 65 
Balance as of September 30, 2020200 $— $1,813,442 $2,511,742 $355 $4,325,539 

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

12


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Nine Months Ended September 30,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$382,287 $363,585 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation251,530 238,232 
Deferred Income Taxes12,905 13,436 
Uncollectible Expense12,477 11,321 
Pension, SERP and PBOP Income, Net(19,627)(13,714)
Pension Contributions(10,000)(650)
Regulatory Over/(Under) Recoveries, Net86,111 (20,047)
Amortization of Regulatory Assets, Net23,963 69,139 
Other(71,005)(25,508)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(110,336)(104,528)
Materials, Supplies and REC Inventory50,227 27,709 
Taxes Receivable/Accrued, Net109,561 55,405 
Accounts Payable(85,431)(57,300)
Other Current Assets and Liabilities, Net(15,322)(54,481)
Net Cash Flows Provided by Operating Activities617,340 502,599 
Investing Activities:  
Investments in Property, Plant and Equipment(675,245)(655,039)
Other Investing Activities70 138 
Net Cash Flows Used in Investing Activities(675,175)(654,901)
Financing Activities:  
Cash Dividends on Common Stock(283,200)(196,500)
Cash Dividends on Preferred Stock(1,470)(1,470)
Issuance of Long-Term Debt600,000 400,000 
Retirement of Long-Term Debt(250,000)(95,000)
Capital Contributions from Eversource Parent60,000 — 
Increase in Notes Payable to Eversource Parent3,300 6,300 
(Decrease)/Increase in Notes Payable(57,000)50,000 
Other Financing Activities(10,367)(4,931)
Net Cash Flows Provided by Financing Activities61,263 158,399 
Net Increase in Cash and Restricted Cash3,428 6,097 
Cash and Restricted Cash - Beginning of Period17,410 6,312 
Cash and Restricted Cash - End of Period$20,838 $12,409 

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 BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)As of September 30, 2021As of December 31, 2020
ASSETS  
Current Assets:  
Cash$3,869 $141 
Receivables, Net (net of allowance for uncollectible accounts of $16,996 and $17,157
   as of September 30, 2021 and December 31, 2020, respectively)
136,481 119,899 
Accounts Receivable from Affiliated Companies13,866 10,925 
Unbilled Revenues46,854 46,041 
Materials, Supplies and REC Inventory24,789 26,829 
Regulatory Assets97,948 115,852 
Special Deposits18,605 36,767 
Prepaid Property Taxes5,987 26,257 
Prepayments and Other Current Assets2,851 10,788 
Total Current Assets351,250 393,499 
Property, Plant and Equipment, Net3,529,050 3,374,270 
Deferred Debits and Other Assets:  
Regulatory Assets829,848 873,203 
Other Long-Term Assets22,684 23,733 
Total Deferred Debits and Other Assets852,532 896,936 
Total Assets$4,732,832 $4,664,705 
LIABILITIES AND CAPITALIZATION  
Current Liabilities:  
Notes Payable to Eversource Parent$66,500 $46,300 
Long-Term Debt – Current Portion— 282,000 
Rate Reduction Bonds – Current Portion43,210 43,210 
Accounts Payable108,243 132,635 
Accounts Payable to Affiliated Companies25,055 43,397 
Regulatory Liabilities96,817 58,756 
Other Current Liabilities61,883 58,487 
Total Current Liabilities401,708 664,785 
Deferred Credits and Other Liabilities:  
Accumulated Deferred Income Taxes535,656 537,627 
Regulatory Liabilities389,426 383,183 
Accrued Pension, SERP and PBOP162,115 184,715 
Other Long-Term Liabilities35,564 37,874 
Total Deferred Credits and Other Liabilities1,122,761 1,143,399 
Long-Term Debt1,163,630 817,070 
Rate Reduction Bonds453,702 496,912 
Common Stockholder's Equity: 
Common Stock— — 
Capital Surplus, Paid In1,088,134 928,134 
Retained Earnings502,870 615,018 
Accumulated Other Comprehensive Income/(Loss)27 (613)
Common Stockholder's Equity1,591,031 1,542,539 
Commitments and Contingencies (Note 9)00
Total Liabilities and Capitalization$4,732,832 $4,664,705 

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 INCOME
(Unaudited)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Operating Revenues$314,893 $283,669 $887,177 $815,261 
Operating Expenses:    
Purchased Power and Transmission107,353 96,612 279,475 273,311 
Operations and Maintenance57,041 50,657 168,242 151,802 
Depreciation30,169 25,410 89,462 74,494 
Amortization of Regulatory Assets, Net17,922 7,360 62,744 39,034 
Energy Efficiency Programs10,762 11,081 30,475 29,231 
Taxes Other Than Income Taxes24,038 18,174 69,639 58,331 
Total Operating Expenses247,285 209,294 700,037 626,203 
Operating Income67,608 74,375 187,140 189,058 
Interest Expense14,321 14,942 42,774 44,029 
Other Income, Net3,171 4,065 11,598 10,882 
Income Before Income Tax Expense56,458 63,498 155,964 155,911 
Income Tax Expense12,315 16,347 32,512 37,527 
Net Income$44,143 $47,151 $123,452 $118,384 

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 September 30,For the Nine Months Ended September 30,
(Thousands of Dollars)2021202020212020
Net Income$44,143 $47,151 $123,452 $118,384 
Other Comprehensive Income, Net of Tax:    
Qualified Cash Flow Hedging Instruments109 268 673 806 
Changes in Unrealized (Losses)/Gains on
   Marketable Securities
(6)(8)(33)17 
Other Comprehensive Income, Net of Tax103 260 640 823 
Comprehensive Income$44,246 $47,411 $124,092 $119,207 

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 COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Nine Months Ended September 30, 2021
 Common StockCapital
Surplus,
Paid In
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss)/Income
Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)StockAmount
Balance as of January 1, 2021301 $— $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 — 928,134 634,494 (358)1,562,270 
Net Income   34,633  34,633 
Dividends on Common Stock(185,200)(185,200)
Capital Contributions from Eversource Parent  160,000  160,000 
Other Comprehensive Income282 282 
Balance as of June 30, 2021301 — 1,088,134 483,927 (76)1,571,985 
Net Income   44,143  44,143 
Dividends on Common Stock(25,200)(25,200)
Other Comprehensive Income    103 103 
Balance as of September 30, 2021301 $— $1,088,134 $502,870 $27 $1,591,031 

For the Nine Months Ended September 30, 2020
 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, 2020301 $— $903,134 $490,306 $(1,707)$1,391,733 
Net Income   39,601  39,601 
Dividends on Common Stock(22,300)(22,300)
Adoption of Accounting Standards Update 2016-13(300)(300)
Other Comprehensive Income    278 278 
Balance as of March 31, 2020301 — 903,134 507,307 (1,429)1,409,012 
Net Income   31,632  31,632 
Other Comprehensive Income    285 285 
Balance as of June 30, 2020301 — 903,134 538,939 (1,144)1,440,929 
Net Income   47,151  47,151 
Other Comprehensive Income260 260 
Balance as of September 30, 2020301 $— $903,134 $586,090 $(884)$1,488,340 

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

16


PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended September 30,
(Thousands of Dollars)20212020
Operating Activities:  
Net Income$123,452 $118,384 
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:  
Depreciation89,462 74,494 
Deferred Income Taxes(13,385)13,959 
Uncollectible Expense4,381 2,058 
Regulatory Over/(Under) Recoveries, Net29,029 (22,203)
Amortization of Regulatory Assets, Net62,744 39,034 
Pension, SERP and PBOP Income, Net(2,664)(894)
Pension Contributions— (19,500)
Other(22,738)(7,545)
Changes in Current Assets and Liabilities:  
Receivables and Unbilled Revenues, Net(25,607)(24,562)
Materials, Supplies and REC Inventory2,040 (301)
Taxes Receivable/Accrued, Net22,286 1,313 
Accounts Payable(42,654)(29,388)
Other Current Assets and Liabilities, Net10,826 4,363 
Net Cash Flows Provided by Operating Activities237,172 149,212 
Investing Activities:  
Investments in Property, Plant and Equipment(217,414)(248,899)
Other Investing Activities431 1,969 
Net Cash Flows Used in Investing Activities(216,983)(246,930)
Financing Activities:  
Cash Dividends on Common Stock(235,600)(22,300)
Capital Contributions from Eversource Parent160,000 — 
Issuance of Long-Term Debt350,000 150,000 
Retirement of Long-Term Debt(282,000)— 
Repayment of Rate Reduction Bonds(43,210)(43,210)
Increase in Notes Payable to Eversource Parent20,200 2,100 
Other Financing Activities(2,961)(2,965)
Net Cash Flows (Used in)/Provided by Financing Activities(33,571)83,625 
Net Decrease in Cash and Restricted Cash(13,382)(14,093)
Cash and Restricted Cash - Beginning of Period39,555 36,688 
Cash and Restricted Cash - End of Period$26,173 $22,595 

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

17



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, 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 4.3 million electric, natural gas and water customers through 9 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 2020 Form 10-K, which was filed with the SEC on February 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 September 30, 2021 and December 31, 2020, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, 2021 and 2020 and the cash flows for the nine months ended September 30, 2021 and 2020. The results of operations and comprehensive income for the three and nine months ended September 30, 2021 and 2020 and the cash flows for the nine months ended September 30, 2021 and 2020 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.

COVID-19 has adversely affected customers, workers and the U.S. economy. We provide a critical service to our customers and have taken extensive measures to maintain its safety and reliability. We continue to address the impacts of the COVID-19 pandemic and how the related developments affect Eversource. We are in the re-entry phase of our pandemic response plan, in which the majority of our employees under remote work arrangements have transitioned back to the workplace. 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 COVID-19, which include uncollectible customer receivable expenses.

18


Based on the status of our COVID-19 regulatory dockets, communications with our state regulatory commissions, and policies and practices in the jurisdictions in which we operate, we believe our state regulatory commissions in Connecticut and Massachusetts 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. See Note 1C, "Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts," for discussion of our evaluation of the allowance for doubtful accounts as of September 30, 2021 in light of the COVID-19 pandemic and Note 2, "Regulatory Accounting," for the amount of net incremental COVID-19 costs deferred on our balance sheets.

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

B.    Accounting Standards
Accounting Standards Recently Adopted: On January 1, 2021, the Company 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 ASU did not have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric and PSNH.

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. The current expected credit loss (CECL) model is 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 collectability from customers, including current conditions, reasonable forecasts, and expectations of future collectability and collection efforts. Management continuously assesses the collectability of receivables and adjusts estimates based on actual experience and future expectations based on economic 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 September 30, 2021, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the related economic downturn. This evaluation included an analysis of collection 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 length of the moratorium on disconnections in Connecticut and Massachusetts, and the economic slowdown resulting from the COVID-19 pandemic. In Connecticut, the moratorium on disconnections of commercial and non-hardship residential customers ended in June 2021 and September 2021, respectively, but is still in place for hardship residential customers. In Massachusetts, the moratorium on disconnections of commercial customers and residential customers ended in September 2020 and July 2021, respectively. Disconnection activities have resumed after these moratoria have expired, which has resulted in recent improved collection experience and more customers applying for, and receiving, hardship status. On July 7, 2021, the NHPUC issued an order to New Hampshire utilities that concluded that recovery of incremental bad debt or waived late fees related to the COVID-19 pandemic would be addressed in a future rate case to the extent those costs are relevant at that time. As a result of the order, in the first nine months of 2021, PSNH removed its $0.6 million deferral of net incremental COVID-19 costs. In New Hampshire, the moratorium on disconnections of non-hardship residential and commercial customers ended in late 2020 and for hardship residential customers ended in May 2021 and PSNH has resumed disconnection activities, which has resulted in improved collection of outstanding customer receivable balances.

Based upon the evaluation performed, in the first nine months of 2021, management increased the allowance for uncollectible accounts for amounts incurred as a result of COVID-19 by $25.8 million for Eversource (increase of $16.3 million for CL&P and $12.5 million at our natural gas businesses, and decrease of $1.8 million at NSTAR Electric). In the third quarter of 2021, the COVID-19 related allowance for uncollectible accounts decreased by $6.5 million at Eversource (increased $4.0 million at CL&P, and decreased $8.3 million at NSTAR Electric and $2.2 million at our natural gas businesses). The COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs at our Connecticut and Massachusetts utilities 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 September 30, 2021, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $57.0 million at Eversource ($20.1 million at CL&P, $8.5 million at NSTAR Electric, and $27.4 million at our natural gas businesses).

19



Management concluded that the reserve balance as of September 30, 2021 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, 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. Management uses a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.

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 as of September 30th 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$210.7 $215.1 $425.8 $145.6 $43.2 $188.8 $35.9 $62.1 $98.0 $17.2 
Uncollectible Expense— 12.0 12.0 — 3.6 3.6 — 5.1 5.1 1.2 
Uncollectible Costs Deferred (1)
22.8 1.7 24.5 4.5 5.7 10.2 11.8 (3.5)8.3 1.2 
Write-Offs(3.9)(20.5)(24.4)(3.5)(5.4)(8.9)(0.1)(7.4)(7.5)(2.8)
Recoveries Collected0.3 3.5 3.8 0.2 1.6 1.8 — 1.1 1.1 0.2 
Ending Balance$229.9 $211.8 $441.7 $146.8 $48.7 $195.5 $47.6 $57.4 $105.0 $17.0 
Nine 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 Expense— 39.7 39.7 — 10.2 10.2 — 12.5 12.5 4.4 
Uncollectible Costs Deferred (1)
44.8 53.3 98.1 25.7 21.4 47.1 8.3 11.8 20.1 2.0 
Write-Offs(10.6)(55.2)(65.8)(8.7)(14.8)(23.5)(0.4)(22.6)(23.0)(7.3)
Recoveries Collected0.9 9.9 10.8 0.7 3.6 4.3 — 3.8 3.8 0.7 
Ending Balance$229.9 $211.8 $441.7 $146.8 $48.7 $195.5 $47.6 $57.4 $105.0 $17.0 
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 2020
Beginning Balance$175.5 $94.5 $270.0 $116.3 $20.4 $136.7 $34.6 $34.1 $68.7 $11.8 
Uncollectible Expense— 10.5 10.5 — 3.8 3.8 — 4.5 4.5 0.8 
Uncollectible Costs Deferred (1)
10.1 20.4 30.5 11.2 4.9 16.1 (1.3)10.4 9.1 3.2 
Write-Offs(7.3)(11.8)(19.1)(2.6)(4.6)(7.2)(0.2)(6.3)(6.5)(2.0)
Recoveries Collected0.4 2.7 3.1 0.3 1.1 1.4 — 1.0 1.0 0.2 
Ending Balance$178.7 $116.3 $295.0 $125.2 $25.6 $150.8 $33.1 $43.7 $76.8 $14.0 
Nine 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 Expense— 31.1 31.1 — 10.0 10.0 — 11.3 11.3 2.1 
Uncollectible Costs Deferred (1)
24.9 41.5 66.4 32.7 8.3 41.0 (8.4)17.3 8.9 5.6 
Write-Offs(12.3)(49.3)(61.6)(10.0)(14.0)(24.0)(0.8)(20.5)(21.3)(5.0)
Recoveries Collected1.2 9.3 10.5 1.1 3.2 4.3 — 3.8 3.8 0.5 
Ending Balance$178.7 $116.3 $295.0 $125.2 $25.6 $150.8 $33.1 $43.7 $76.8 $14.0 

(1) These expected credit losses are deferred as regulatory costs on the balance sheets, as these amounts are ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to COVID-19 and uncollectible energy supply costs.

20


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 valuation 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 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," to the financial statements.

E.    Other Income, Net
The components of Other Income, Net on the statements of income were as follows:
 For the Three Months Ended
 September 30, 2021September 30, 2020
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Pension, SERP and PBOP Non-Service
   Income Components
$21.7 $4.2 $10.1 $2.5 $11.0 $0.9 $7.2 $1.8 
AFUDC Equity10.3 1.7 6.2 0.3 10.3 3.5 5.5 0.9 
Equity in Earnings of Unconsolidated Affiliates (1)
4.9 — 0.1 — 3.9 — 0.1 — 
Investment (Loss)/Income(0.6)(0.3)(0.2)(0.1)1.0 1.3 (0.2)0.2 
Interest Income7.3 1.3 3.9 0.4 1.5 0.2 0.1 1.2 
Gain on Sale of Property— — — — 1.5 — — — 
Other0.2 — 0.1 0.1 — — 0.1 — 
Total Other Income, Net$43.8 $6.9 $20.2 $3.2 $29.2 $5.9 $12.8 $4.1 
 For the Nine Months Ended
 September 30, 2021September 30, 2020
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Pension, SERP and PBOP Non-Service
   Income Components
$63.9 $11.2 $30.3 $7.9 $34.3 $3.0 $22.2 $5.2 
AFUDC Equity28.7 5.1 18.6 1.2 31.8 11.4 15.8 3.5 
Equity in Earnings of Unconsolidated Affiliates (1)
13.3 — 0.3 — 13.8 — 0.4 — 
Investment Income/(Loss)0.7 1.2 0.6 0.3 (1.5)— (1.5)0.1 
Interest Income17.2 4.1 8.8 2.0 3.3 1.8 0.7 2.0 
Gain on Sale of Property0.1 — — 0.1 1.8 — 0.3 — 
Other0.7 0.1 0.3 0.1 0.1 0.1 0.3 0.1 
Total Other Income, Net$124.6 $21.7 $58.9 $11.6 $83.6 $16.3 $38.2 $10.9 

(1)    Equity in earnings of unconsolidated affiliates includes $2.1 million of pre-tax unrealized gains associated with an investment in a renewable energy fund for the nine months ended September 30, 2021. For the nine months ended September 30, 2020, equity in earnings of unconsolidated affiliates included $2.4 million of primarily realized gains associated with this investment.


21


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 EndedFor the Nine Months Ended
(Millions of Dollars)September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Eversource$49.4 $48.4 $137.9 $129.1 
CL&P46.1 45.6 120.7 114.2

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 September 30, 2021As of September 30, 2020
Eversource$359.6 $357.4 
CL&P75.3 97.8 
NSTAR Electric94.2 92.6 
PSNH32.8 50.0 

The following table reconciles cash as reported on the balance sheets to the cash and restricted cash balance as reported on the statements of cash flows:
 As of September 30, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Cash as reported on the Balance Sheets$88.2 $62.8 $3.5 $3.9 $106.6 $90.8 $0.1 $0.1 
Restricted cash included in:
Special Deposits55.5 8.7 17.2 18.6 73.6 8.7 17.2 36.8 
Marketable Securities29.7 0.3 0.1 0.5 41.2 0.3 0.1 0.6 
Other Long-Term Assets44.7 — — 3.2 43.6 — — 2.1 
Cash and Restricted Cash as reported on the
    Statements of Cash Flows
$218.1 $71.8 $20.8 $26.2 $265.0 $99.8 $17.4 $39.6 

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. Restricted cash included in Other Long-Term Assets includes $41.5 million related to an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley, and an additional energy efficiency program established under the terms of the EGMA settlement agreement.

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 and the regulatory assets that have been recorded.  If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises, 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.

22


Regulatory Assets:  The components of regulatory assets were as follows:
 As of September 30, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric
PSNHEversourceCL&PNSTAR
Electric
PSNH
Benefit Costs$2,566.1 $540.2 $638.4 $249.7 $2,794.2 $632.3 $690.0 $267.6 
Income Taxes, Net756.4 458.1 113.8 18.7 747.1 458.9 110.4 15.2 
Securitized Stranded Costs489.7 — — 489.7 522.1 — — 522.1 
Storm Restoration Costs, Net944.2 674.2 198.1 71.9 765.6 515.1 186.4 64.1 
Regulatory Tracker Mechanisms883.0 304.6 320.0 76.8 850.5 246.6 332.2 95.3 
Derivative Liabilities265.3 265.3 — — 296.3 293.1 — — 
Goodwill-related302.0 — 259.3 — 314.7 — 270.2 — 
Asset Retirement Obligations121.6 33.7 57.8 4.0 118.4 32.1 58.6 3.9 
Other Regulatory Assets146.9 31.0 48.7 16.9 161.0 33.7 56.1 20.9 
Total Regulatory Assets6,475.2 2,307.1 1,636.1 927.7 6,569.9 2,211.8 1,703.9 989.1 
Less:  Current Portion1,016.3 325.3 388.4 97.9 1,076.6 345.6 399.9 115.9 
Total Long-Term Regulatory Assets$5,458.9 $1,981.8 $1,247.7 $829.8 $5,493.3 $1,866.2 $1,304.0 $873.2 

CL&P Deferred Storm Costs: In 2021 and 2020, multiple tropical and severe storms caused extensive damage to CL&P’s electric distribution systems and customer outages, along with significant pre-staging costs. These storms resulted in deferred pre-staging and storm restoration costs of $195 million for 2021 storms and $344 million for 2020 storms, including the catastrophic impact of Tropical Storm Isaias in August 2020, among others. Management believes all these storm costs were prudently incurred and meet the criteria for specific cost recovery.

Regulatory Costs in Long-Term Assets:  Eversource's regulated companies had $260.6 million (including $111.2 million for CL&P, $85.1 million for NSTAR Electric and $3.2 million for PSNH) and $196.9 million (including $84.1 million for CL&P, $69.8 million for NSTAR Electric and $4.3 million for PSNH) of additional regulatory costs as of September 30, 2021 and December 31, 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 September 30, 2021 and December 31, 2020, these regulatory costs included net incremental COVID-19 related costs deferred of $41.3 million and $24.0 million at Eversource, respectively, of which, $34.5 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 and NSTAR Electric totaled $15.9 million and $10.9 million, respectively, as of September 30, 2021, and $4.7 million and $11.9 million, respectively, as of December 31, 2020, and primarily related to deferred non-tracked uncollectible expense.

Regulatory Liabilities:  The components of regulatory liabilities were as follows:
 As of September 30, 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$2,737.1 $1,001.5 $1,025.6 $363.9 $2,778.6 $1,010.7 $1,044.0 $371.5 
Cost of Removal676.7 117.0 384.1 19.0 624.8 98.4 363.6 12.9 
Benefit Costs65.9 — 56.5 — 83.6 — 72.5 — 
Regulatory Tracker Mechanisms484.5 208.9 180.6 87.5 366.5 148.9 139.7 47.8 
AFUDC - Transmission79.6 43.6 36.0 — 76.8 44.6 32.2 — 
CL&P Settlement Agreement and Storm
  Performance Penalty
103.4 103.4 — — — — — — 
Other Regulatory Liabilities373.3 50.4 84.6 15.8 309.9 39.5 63.2 9.8 
Total Regulatory Liabilities4,520.5 1,524.8 1,767.4 486.2 4,240.2 1,342.1 1,715.2 442.0 
Less:  Current Portion612.9 311.3 205.8 96.8 389.4 137.2 164.8 58.8 
Total Long-Term Regulatory Liabilities$3,907.6 $1,213.5 $1,561.6 $389.4 $3,850.8 $1,204.9 $1,550.4 $383.2 

23


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 $234 million at CL&P and $251 million at Eversource as of September 30, 2021. The estimated cost of restoration may continue to change as additional cost information becomes available and final post-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 it is possible that some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. Eversource and CL&P continue 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 cost review by PURA 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 storm performance standards and was imprudent in certain instances. The $28.4 million performance penalty assessed by PURA was recorded within current regulatory liabilities on CL&P’s balance sheet. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.

CL&P Settlement Agreement: On October 1, 2021, CL&P entered into a settlement agreement with the DEEP, Office of Consumer Counsel (OCC), Office of the Attorney General (AG) and the Connecticut Industrial Energy Consumers, resolving certain issues that arose in pending regulatory proceedings initiated by the PURA. In the third quarter of 2021, CL&P recorded a current regulatory liability of $75 million on the balance sheet associated with the provisions of the settlement agreement. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.

3.    PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize property, plant and equipment by asset category:
EversourceAs of September 30, 2021As of December 31, 2020
(Millions of Dollars)
Distribution - Electric$17,257.3 $16,703.2 
Distribution - Natural Gas6,334.9 6,111.2 
Transmission - Electric12,396.2 11,954.0 
Distribution - Water1,771.1 1,743.1 
Solar200.4 201.5 
Utility37,959.9 36,713.0 
Other (1)
1,430.5 1,269.0 
Property, Plant and Equipment, Gross39,390.4 37,982.0 
Less:  Accumulated Depreciation  
Utility   (8,830.2)(8,476.3)
Other(550.0)(477.6)
Total Accumulated Depreciation(9,380.2)(8,953.9)
Property, Plant and Equipment, Net30,010.2 29,028.1 
Construction Work in Progress2,456.9 1,854.4 
Total Property, Plant and Equipment, Net$32,467.1 $30,882.5 
 As of September 30, 2021As of December 31, 2020
(Millions of Dollars)CL&PNSTAR
Electric
PSNHCL&PNSTAR
Electric
PSNH
Distribution - Electric$7,028.9 $7,798.8 $2,469.9 $6,820.7 $7,544.4 $2,378.4 
Transmission - Electric5,707.9 4,884.0 1,805.9 5,512.0 4,701.3 1,742.4 
Solar— 200.4 — — 201.5 — 
Property, Plant and Equipment, Gross12,736.8 12,883.2 4,275.8 12,332.7 12,447.2 4,120.8 
Less:  Accumulated Depreciation(2,574.6)(3,220.7)(895.4)(2,475.4)(3,074.1)(848.9)
Property, Plant and Equipment, Net10,162.2 9,662.5 3,380.4 9,857.3 9,373.1 3,271.9 
Construction Work in Progress436.6 949.2 148.7 377.3 750.0 102.4 
Total Property, Plant and Equipment, Net$10,598.8 $10,611.7 $3,529.1 $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.

24


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 September 30, 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$14.4 $(0.4)$14.0 $13.7 $(0.4)$13.3 
Long-Term Derivative Assets:    
CL&PLevel 351.1 (1.6)49.5 58.7 (1.8)56.9 
Current Derivative Liabilities:    
CL&PLevel 3(72.2)— (72.2)(68.8)— (68.8)
OtherLevel 2— — — (3.3)0.1 (3.2)
Long-Term Derivative Liabilities:    
CL&PLevel 3(256.6)— (256.6)(294.5)— (294.5)
    

(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.

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 September 30, 2021 and December 31, 2020 were 675 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. 

As of December 31, 2020, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of 8.9 million MMBtu of natural gas. These contracts were classified as Level 2 in the fair value hierarchy. NSTAR Gas terminated its financial contracts swap program in April 2021.

For the three months ended September 30, 2021 and 2020, there were gains of $0.7 million and losses of $2.6 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts. For the nine months ended September 30, 2021 and 2020, there were losses of $9.5 million and $20.6 million, respectively.

Fair Value Measurements of Derivative Instruments
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.  

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.  

25


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 September 30, 2021As of December 31, 2020
CL&PRange
Weighted Average (1)
Period CoveredRange
Weighted Average (1)
Period Covered
Capacity Prices$2.61$2.61 per kW-Month2025 - 2026$4.30 $5.30$4.63 per kW-Month2024 - 2026
Forward Reserve Prices$0.50 $1.15$0.82 per kW-Month2022 - 2024$0.54 $0.90$0.72 per kW-Month2021 - 2024

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

Exit price premiums of 5.5 percent through 9.8 percent, or a weighted average of 8.7 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.  

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 September 30,For the Nine Months Ended September 30,
(Millions of Dollars)2021202020212020
Derivatives, Net:  
Fair Value as of Beginning of Period$(279.7)$(322.0)$(293.1)$(329.2)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets0.7 (4.7)(10.9)(22.3)
Settlements13.7 14.9 38.7 39.7 
Fair Value as of End of Period$(265.3)$(311.8)$(265.3)$(311.8)

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 September 30, 2021 and December 31, 2020 was $39.2 million and $40.9 million, respectively.  For the three months ended September 30, 2021 and 2020, there were unrealized losses of $0.5 million and unrealized gains of $1.6 million, respectively, recorded in Other Income, Net related to these equity securities. For the nine months ended September 30, 2021 and 2020, there were unrealized gains of $2.5 million and unrealized losses of $1.0 million, respectively.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of $214.9 million and $205.1 million as of September 30, 2021 and December 31, 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 September 30, 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$217.5 $8.0 $(0.2)$225.3 $213.1 $11.2 $(0.1)$224.2 

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of $195.2 million and $192.5 million as of September 30, 2021 and December 31, 2020, respectively.

Unrealized gains and losses on available-for-sale debt securities held in Eversource's non-qualified benefit trust are recorded in Accumulated Other Comprehensive Income, 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 and nine months ended September 30, 2021 and 2020, and no allowance for credit losses as of September 30, 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.

26


As of September 30, 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)
$30.9 $30.9 
One to five years65.5 67.1 
Six to ten years41.8 43.9 
Greater than ten years79.3 83.4 
Total Debt Securities$217.5 $225.3 

(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 September 30, 2021As of December 31, 2020
Level 1:    
Mutual Funds and Equities$254.1 $246.0 
Money Market Funds29.7 41.2 
Total Level 1$283.8 $287.2 
Level 2:  
U.S. Government Issued Debt Securities (Agency and Treasury)$98.9 $72.9 
Corporate Debt Securities63.4 63.8 
Asset-Backed Debt Securities13.4 11.9 
Municipal Bonds6.1 24.0 
Other Fixed Income Securities13.8 10.4 
Total Level 2$195.6 $183.0 
Total Marketable Securities$479.4 $470.2 

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 $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, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $2.00 billion revolving credit facility, which terminates on October 15, 2026. This revolving credit facility serves to backstop Eversource parent's $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 October 15, 2026. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.  

The amount of borrowings outstanding and available under the commercial paper programs were as follows:
Borrowings Outstanding as ofAvailable Borrowing Capacity as ofWeighted-Average Interest Rate as of
September 30, 2021December 31, 2020September 30, 2021December 31, 2020September 30, 2021December 31, 2020
(Millions of Dollars)
Eversource Parent Commercial Paper Program$653.0 $1,054.3 $1,347.0 $945.7 0.18 %0.25 %
NSTAR Electric Commercial Paper Program138.0 195.0 512.0 455.0 0.10 %0.16 %

There were no borrowings outstanding on the revolving credit facilities as of September 30, 2021 or December 31, 2020.

27


CL&P and PSNH have uncommitted line of credit agreements totaling $450 million and $300 million, respectively, which will expire on May 12, 2022. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, 2021.

Amounts outstanding under the commercial paper programs 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 Gas long-term debt issuances in October 2021, $80.0 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of September 30, 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 September 30, 2021, there were intercompany loans from Eversource parent to PSNH of $66.5 million, and to a subsidiary of NSTAR Electric of $24.6 million. As of December 31, 2020, there were intercompany loans from Eversource parent to PSNH of $46.3 million, and to a subsidiary of NSTAR Electric of $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.

Availability under Long-Term Debt Issuance Authorizations: On March 31, 2021, the DPU approved NSTAR Electric's request for authorization to issue up to $1.60 billion in long-term debt through December 31, 2023. On September 10, 2021, the DPU approved EGMA’s request for authorization to issue up to $725 million in long-term debt through December 31, 2023. The remaining Eversource operating companies, including CL&P and PSNH, have utilized the long-term debt authorizations in place with the respective regulatory commissions.
28


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 DateMaturity DateUse of Proceeds for Issuance/
Repayment Information
CL&P:
2.05% Series A First Mortgage Bonds$425.0 June 2021July 2031Repaid short-term debt, paid capital expenditures and working capital
4.38% Series A PCRB(120.5)September 2021September 2028Paid on par call date in advance of maturity
NSTAR Electric:
3.10% 2021 Debentures300.0 May 2021June 2051
Refinanced investments in eligible green
expenditures, which were previously financed in 2019 and 2020
3.50% Series F Senior Notes(250.0)June 2021September 2021Paid on par call date in advance of maturity date
1.95% 2021 Debentures300.0 August 2021August 2031Repaid short-term debt, paid capital expenditures and working capital
PSNH:
4.05% Series Q First Mortgage Bonds(122.0)March 2021June 2021Paid on par call date in advance of maturity date
3.20% Series R First Mortgage Bonds(160.0)June 2021September 2021Paid on par call date in advance of maturity date
2.20% Series V First Mortgage Bonds350.0 June 2021June 2031Repaid short-term debt, including short-term debt used to redeem Series R First Mortgage Bonds, paid capital expenditures and working capital
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
Eversource Parent 1.40% Series U Senior Notes300.0 August 2021August 2026Repaid short-term debt
Eversource Parent Variable Rate Series T Senior Notes (1)
350.0 August 2021August 2023Repaid short-term debt
Aquarion Water Company of Connecticut 3.31%
   Senior Notes
100.0 April 2021April 2051Repaid 5.50% Notes, repaid short-term debt, paid capital expenditures and working capital
Aquarion Water Company of Connecticut 5.50% Notes(40.0)April 2021April 2021Paid at maturity
Yankee Gas 1.38% Series S First Mortgage Bonds90.0 August 2021August 2026(2)
Yankee Gas 2.88% Series T First Mortgage Bonds35.0 August 2021August 2051(2)
EGMA 2.11% Series A First Mortgage Bonds310.0 September 2021October 2031(2)
EGMA 2.92% Series B First Mortgage Bonds240.0 September 2021October 2051(2)
NSTAR Gas 2.25% Series T First Mortgage Bonds40.0 October 2021November 2031(2)
NSTAR Gas 3.03% Series U First Mortgage Bonds40.0 October 2021November 2051(2)

(1)    On August 10, 2021, Eversource Parent issued $350 million of floating rate Series T Senior Notes with a maturity date of August 15, 2023. The notes have a coupon rate based on the Compounded SOFR plus 0.25%.

(2)    The use of proceeds from these various issuances refinanced existing indebtedness, funded capital expenditures and were for general corporate purposes. The EGMA indebtedness that was refinanced included $309.4 million of long-term debt.

7.    RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

Rate Reduction Bonds: In May 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 in January 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.

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

29


The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:
(Millions of Dollars)
PSNH Balance Sheets:As of September 30, 2021As of December 31, 2020
Restricted Cash - Current Portion (included in Current Assets)$18.3 $36.8 
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)3.2 2.1 
Securitized Stranded Cost (included in Regulatory Assets)489.7 522.1 
Other Regulatory Liabilities (included in Regulatory Liabilities)8.0 9.1 
Accrued Interest (included in Other Current Liabilities)3.0 8.0 
Rate Reduction Bonds - Current Portion43.2 43.2 
Rate Reduction Bonds - Long-Term Portion453.7 496.9 

(Millions of Dollars)
PSNH Income Statements:
For the Three Months EndedFor the Nine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)$10.8 $10.8 $32.4 $32.4 
Interest Expense on RRB Principal (included in Interest Expense)4.5 4.9 13.9 14.9 

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 plan 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 plan 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 plan 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 intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.

 Pension and SERPPBOP
 For the Three Months Ended September 30, 2021For the Three Months Ended September 30, 2021
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Service Cost$21.5 $5.6 $4.0 $2.2 $3.3 $0.5 $0.6 $0.3 
Interest Cost32.5 6.7 6.7 3.7 4.3 0.8 1.1 0.4 
Expected Return on Plan Assets(109.5)(21.7)(27.1)(11.9)(19.8)(2.5)(9.2)(1.6)
Actuarial Loss60.7 10.8 15.3 5.3 2.0 0.4 0.5 0.1 
Prior Service Cost/(Credit)0.3 — 0.1 — (5.3)0.3 (4.3)0.1 
Total Net Periodic Benefit Plan Expense/(Income)$5.5 $1.4 $(1.0)$(0.7)$(15.5)$(0.5)$(11.3)$(0.7)
Intercompany Expense/(Income) AllocationsN/A$2.2 $2.4 $0.7 N/A$(0.4)$(0.5)$(0.2)
Pension and SERPPBOP
For the Nine Months Ended September 30, 2021For the Nine Months Ended September 30, 2021
(Millions of Dollars)EversourceCL&PNSTAR
Electric
PSNHEversourceCL&PNSTAR
Electric
PSNH
Service Cost$64.3 $17.4 $11.9 $6.6 $10.1 $1.7 $1.8 $0.9 
Interest Cost97.5 20.7 20.1 10.9 12.9 2.4 3.3 1.3 
Expected Return on Plan Assets(328.0)(65.0)(81.1)(35.6)(59.3)(7.7)(27.7)(4.6)
Actuarial Loss183.1 34.6 46.1 15.4 5.9 1.2 1.6 0.4 
Prior Service Cost/(Credit)1.1 — 0.3 — (15.9)0.8 (12.7)0.3 
Total Net Periodic Benefit Plan Expense/(Income)$18.0 $7.7 $(2.7)$(2.7)$(46.3)$(1.6)$(33.7)$(1.7)
Intercompany Expense/(Income) AllocationsN/A$5.8 $6.4 $1.9 N/A$(1.3)$(1.5)$(0.5)
30


Pension and SERPPBOP
For the Three Months Ended September 30, 2020For the Three Months Ended September 30, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric
PSNHEversourceCL&PNSTAR
Electric
PSNH
Service Cost$18.7 $5.4 $3.8 $2.0 $2.4 $0.4 $0.5 $0.2 
Interest Cost44.4 9.3 9.7 4.8 6.1 1.1 1.7 0.7 
Expected Return on Plan Assets(99.2)(19.8)(25.7)(11.1)(18.3)(2.5)(8.5)(1.4)
Actuarial Loss50.7 9.7 14.0 3.8 2.2 0.3 0.6 0.2 
Prior Service Cost/(Credit)0.2 — — — (5.3)0.3 (4.2)0.1 
Total Net Periodic Benefit Plan Expense/(Income)$14.8 $4.6 $1.8 $(0.5)$(12.9)$(0.4)$(9.9)$(0.2)
Intercompany Expense/(Income) AllocationsN/A$2.4 $2.3 $0.8 N/A$(0.3)$(0.4)$(0.1)
Pension and SERPPBOP
For the Nine Months Ended September 30, 2020For the Nine Months Ended September 30, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric
PSNHEversourceCL&PNSTAR
Electric
PSNH
Service Cost$57.0 $16.5 $11.4 $6.2 $7.3 $1.3 $1.6 $0.6 
Interest Cost133.0 28.1 29.0 14.5 18.3 3.3 5.0 2.1 
Expected Return on Plan Assets(298.8)(59.6)(77.2)(33.5)(55.1)(7.4)(25.5)(4.2)
Actuarial Loss150.7 29.4 41.3 11.8 6.3 0.9 1.8 0.6 
Prior Service Cost/(Credit)0.8 — 0.2 — (15.9)0.8 (12.7)0.3 
Total Net Periodic Benefit Plan Expense/(Income)$42.7 $14.4 $4.7 $(1.0)$(39.1)$(1.1)$(29.8)$(0.6)
Intercompany Expense/(Income) AllocationsN/A$6.7 $6.5 $2.2 N/A$(0.9)$(1.0)$(0.4)

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.

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 September 30, 2021As of December 31, 2020
Number of SitesReserve
(in millions)
Number of SitesReserve
(in millions)
Eversource62 $111.9 63 $102.4 
CL&P14 12.5 15 12.3 
NSTAR Electric12 3.7 12 4.7 
PSNH6.4 7.1 

The increase in the reserve balance was due primarily to a change in cost estimates at an NSTAR Gas MGP site under investigation for which we now know of additional remediation that is required.

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 $102.4 million and $92.2 million as of September 30, 2021 and December 31, 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.

31


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$27.1 $103.9 $230.5 $341.2 $348.1 $6,564.2 $7,615.0 

The table has been updated to include long-term commitments of NSTAR Electric pertaining to the Massachusetts Clean Energy 83D contract, for which construction 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 $5.7 million as of September 30, 2021.

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties:  
As of September 30, 2021
Company (Obligor)DescriptionMaximum Exposure
(in millions)
Expiration Dates
North East Offshore LLC
Construction-related purchase agreements with third-party contractors (1)
$1,093.5 
 (1)
Eversource Investment LLC
Funding and indemnification obligations of North East Offshore LLC (2)
— 
 (2)
Sunrise Wind LLC
OREC capacity production (3)
2.2 
 (3)
Sunrise Wind LLC
Construction-related purchase agreements with third-party contractors (4)
386.4 
South Fork Wind, LLCTransmission interconnection1.2 
South Fork Wind, LLC
Construction-related purchase agreements with third-party contractors (5)
40.6 2023
Bay State Wind LLCReal estate purchase2.5 2022
Various
Surety bonds (6)
67.5 2021 - 2023
Rocky River Realty Company and
   Eversource Service
Lease payments for real estate4.0 2024

(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 aggregate 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.    

(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 aggregate 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 aggregate 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.    

32


(4)     Eversource parent issued a guaranty 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 aggregate amount not to exceed $420.6 million, in connection with a construction-related purchase agreement. Eversource parent’s obligations under the guarantee expire upon the earlier of (i) April 14, 2026 and (ii) full performance of the guaranteed obligations.

(5)    Eversource parent issued two guarantees on behalf of its 50 percent-owned affiliate, South Fork Wind, LLC, whereby Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations in connection with two construction-related purchase agreements. Under one guarantee, Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations, in an aggregate amount not to exceed $25.8 million. Eversource parent’s obligations under the guarantee expire upon the earlier of (i) October 4, 2023 and (ii) full performance of the guaranteed obligations. Under the second guaranty, Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations, in an aggregate amount not to exceed $14.8 million. Eversource parent’s obligations under the guarantee expire upon the earlier of (i) October 18, 2023 and (ii) full performance of the guaranteed obligations.

(6)    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 IV of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2016, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase V Damages - On March 25, 2021, each of the Yankee Companies filed a fifth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies are calculating and will be seeking monetary damages for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2017 to 2020 (DOE Phase V).

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 September 30, 2021 and December 31, 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 September 30, 2021 and December 31, 2020.

33


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 Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the NETOs’ cases.

On May 21, 2020, the FERC issued its order in Opinion No. 569-A on the rehearing of the MISO transmission 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 in its October 16, 2018 order to determine the NETOs' base ROEs in its four pending cases.

Given the significant uncertainty regarding the applicability of the FERC opinions in the MISO transmission owners' two complaint cases to the NETOs' pending four complaint 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. As well, Eversource cannot reasonably estimate a range of any gain or loss for any of the four complaint 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.

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.

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 then dismissed with prejudice.

G.    CL&P Regulatory Matters
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 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), which is currently 9.25 percent. In its decision, 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 storm 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. On July 14, 2021, PURA issued a final decision in this penalty proceeding that included an assessment of $28.6 million, maintaining the $28.4 million performance penalty and reducing the $1.6 million fine for accident reporting to $0.2 million. The $28.4 million performance penalty is currently being credited to customers on electric bills beginning on September 1, 2021 over a one-year period. 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. The
34


liability for the performance penalty was recorded as a current regulatory liability on CL&P’s balance sheet and as a reduction to Operating Revenues on the nine months ended September 30, 2021 income statement. The after-tax earnings impact of this charge was $0.07 per share.

CL&P Settlement Agreement: On October 1, 2021, CL&P entered into a settlement agreement with the DEEP, Office of Consumer Counsel (OCC), Office of the Attorney General (AG) and the Connecticut Industrial Energy Consumers, resolving certain issues that arose in pending regulatory proceedings initiated by the PURA. PURA approved the settlement agreement on October 27, 2021. In the settlement agreement, CL&P agreed to provide a total of $65 million of customer credits to be distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. CL&P also agreed to irrevocably set aside $10 million to fund various customer assistance initiatives as directed by PURA for disbursement to state-designated purposes, with the objective of disbursing the funds prior to April 30, 2022, including providing credits to existing hardship and non-hardship customers carrying arrearages and other purposes. In the third quarter of 2021, CL&P recorded a current regulatory liability of $75 million on the balance sheet associated with the provisions of the settlement agreement, with a $65 million pre-tax charge as a reduction to Operating Revenues associated with the customer credits and a $10 million charge to Operations and Maintenance expense associated with the customer assistance initiatives on the three months ended September 30, 2021 income statement.

In exchange for the $75 million of customer credits and assistance, PURA’s interim rate reduction docket was resolved without findings. As a result of the settlement agreement, neither the 90 basis point reduction to CL&P’s return on equity introduced in PURA’s storm-related decision issued April 28, 2021, nor the 45 basis point reduction to CL&P’s return on equity included in PURA’s draft decision issued September 14, 2021 in the interim rate reduction docket, will be implemented.

CL&P has also agreed that its current base distribution rates shall be frozen, subject to the customer credits described above, until no earlier than January 1, 2024. The rate freeze applies only to base distribution rates (including storm costs) and not to other rate mechanisms such as the retail rate components, rate reconciling mechanisms, formula rates and any other adjustment mechanisms. The rate freeze also does not apply to any cost recovery mechanism outside of the base distribution rates with regard to grid-modernization initiatives or any other proceedings, either currently pending or that may be initiated during the rate freeze period, that may place additional obligations on CL&P. The approval of the settlement agreement satisfies the Connecticut statute of rate review requirements that requires electric utilities to file a distribution rate case within four years of the last rate case.

As part of the settlement agreement, CL&P agreed to withdraw with prejudice its pending appeals of PURA’s April 28, 2021 and July 14, 2021 decisions related to Storm Isaias and agreed to waive its right to file an appeal and seek a judicial stay of the final decision in the interim rate reduction docket. The settlement agreement assures that CL&P will have the opportunity to petition for and demonstrate the prudence of the storm costs incurred to respond to customer outages associated with Storm Isaias in a future ratemaking proceeding.

The cumulative pre-tax impact of the settlement agreement and the Storm Isaias assessment imposed in PURA’s April 28, 2021 and July 14, 2021 decisions totaled $103.6 million, and the after-tax earnings impact was $85.8 million, or $0.25 per share, for the nine months ended September 30, 2021.

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 September 30, 2021:       
Preferred Stock Not Subject to Mandatory Redemption$155.6 $165.5 $116.2 $121.4 $43.0 $44.1 $— $— 
Long-Term Debt18,219.2 19,810.9 4,215.1 4,865.2 3,984.7 4,494.3 1,163.6 1,228.9 
Rate Reduction Bonds496.9 555.8 — — — — 496.9 555.8 
As of December 31, 2020:       
Preferred Stock Not Subject to Mandatory Redemption$155.6 $169.1 $116.2 $123.4 $43.0 $45.7 $— $— 
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 — — — — 540.1 603.4 

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.

35


11.    ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, are as follows:
For the Nine Months Ended September 30, 2021For the Nine Months Ended September 30, 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 Beginning of Period$(1.4)$1.1 $(76.1)$(76.4)$(3.0)$0.7 $(62.8)$(65.1)
OCI Before Reclassifications— (0.6)(2.4)(3.0)— 0.3 (1.6)(1.3)
Amounts Reclassified from AOCI1.0 — 6.5 7.5 1.2 — 4.8 6.0 
Net OCI1.0 (0.6)4.1 4.5 1.2 0.3 3.2 4.7 
Balance as of End of Period$(0.4)$0.5 $(72.0)$(71.9)$(1.8)$1.0 $(59.6)$(60.4)

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 September 30, 2021 and December 31, 2020Issued as of
 Par ValueSeptember 30, 2021December 31, 2020
Eversource$380,000,000 357,818,402 357,818,402 
CL&P$10 24,500,000 6,035,205 6,035,205 
NSTAR Electric$100,000,000 200 200 
PSNH$100,000,000 301 301 

Treasury Shares: As of September 30, 2021 and December 31, 2020, there were 14,044,078 and 14,864,379 Eversource common shares held as treasury shares, respectively. As of September 30, 2021 and December 31, 2020, Eversource common shares outstanding were 343,774,324 and 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 September 30, 2021 and 2020 and $5.6 million for each of the nine months ended September 30, 2021 and 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 September 30, 2021 and December 31, 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 as if they were converted into outstanding common shares.  The dilutive effect of unvested RSU and performance share awards 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. There were no antidilutive share awards excluded from the computation of diluted EPS for the three and nine months ended September 30, 2021 and the three months ended September 30, 2020. For the nine months ended September 30, 2020, there were 52,747 antidilutive share awards excluded from the EPS computation, as their impact would have been antidilutive. Antidilutive shares pertained to a purchase option extended to underwriters in connection with Eversource’s common share issuance on June 15, 2020.
36



The following table sets forth the components of basic and diluted EPS:
Eversource
(Millions of Dollars, except share information)
For the Three Months EndedFor the Nine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net Income Attributable to Common Shareholders$283.2 $346.3 $913.8 $933.2 
Weighted Average Common Shares Outstanding:    
Basic344,023,846 343,076,614 343,848,905 337,375,172 
Dilutive Effect of:
Share-Based Compensation Awards and Other645,936 696,988 631,151 686,403 
Equity Forward Sale Agreement— — — 362,525 
Total Dilutive Effect645,936 696,988 631,151 1,048,928 
Diluted344,669,782 343,773,602 344,480,056 338,424,100 
Basic EPS$0.82 $1.01 $2.66 $2.77 
Diluted EPS$0.82 $1.01 $2.65 $2.76 

15.    REVENUES

The following tables present operating revenues disaggregated by revenue source:
For the Three Months Ended September 30, 2021
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution
Electric
Transmission
Water DistributionOtherEliminationsTotal
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$1,146.8 $81.7 $— $39.1 $— $— $1,267.6 
Commercial748.8 59.0 — 17.2 — (1.4)823.6 
Industrial96.2 28.6 — 1.1 — (4.8)121.1 
Total Retail Tariff Sales Revenues1,991.8 169.3 — 57.4 — (6.2)2,212.3 
Wholesale Transmission Revenues— — 527.2 — 23.0 (408.5)141.7 
Wholesale Market Sales Revenues133.8 12.2 — 1.1 — — 147.1 
Other Revenues from Contracts with Customers29.6 1.2 3.5 1.8 303.1 (301.4)37.8 
Reserve for Revenues Subject to Refund (1)
(93.4)— — (0.9)— — (94.3)
Total Revenues from Contracts with Customers2,061.8 182.7 530.7 59.4 326.1 (716.1)2,444.6 
Alternative Revenue Programs(7.9)2.7 (112.6)2.3 — 102.0 (13.5)
Other Revenues (2)
1.3 0.1 0.2 0.1 — — 1.7 
Total Operating Revenues$2,055.2 $185.5 $418.3 $61.8 $326.1 $(614.1)$2,432.8 
For the Nine Months Ended September 30, 2021
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution
Electric
Transmission
Water DistributionOtherEliminationsTotal
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$3,094.9 $722.8 $— $102.8 $— $— $3,920.5 
Commercial1,902.9 356.4 — 47.0 — (4.1)2,302.2 
Industrial261.1 119.5 — 3.3 — (12.8)371.1 
Total Retail Tariff Sales Revenues5,258.9 1,198.7 — 153.1 — (16.9)6,593.8 
Wholesale Transmission Revenues— — 1,338.4 — 62.5 (1,075.4)325.5 
Wholesale Market Sales Revenues380.1 54.1 — 3.0 — — 437.2 
Other Revenues from Contracts with Customers68.4 3.6 10.2 5.5 936.6 (929.6)94.7 
Reserve for Revenues Subject to Refund (1)
(93.4)— — (2.2)— — (95.6)
Total Revenues from Contracts with Customers5,614.0 1,256.4 1,348.6 159.4 999.1 (2,021.9)7,355.6 
Alternative Revenue Programs14.9 21.3 (119.2)1.3 — 103.0 21.3 
Other Revenues (2)
3.2 0.1 0.7 0.3 — — 4.3 
Total Operating Revenues$5,632.1 $1,277.8 $1,230.1 $161.0 $999.1 $(1,918.9)$7,381.2 

37



For the Three Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution
Electric
Transmission
Water DistributionOtherEliminationsTotal
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$1,183.9 $45.5 $— $45.8 $— $— $1,275.2 
Commercial682.7 41.1 — 17.1 — (1.4)739.5 
Industrial91.0 17.5 — 1.3 — (3.6)106.2 
Total Retail Tariff Sales Revenues1,957.6 104.1 — 64.2 — (5.0)2,120.9 
Wholesale Transmission Revenues— — 458.2 — 19.0 (365.6)111.6 
Wholesale Market Sales Revenues79.6 8.7 — 1.1 — — 89.4 
Other Revenues from Contracts with Customers20.7 1.3 3.2 0.7 303.3 (299.0)30.2 
Total Revenues from Contracts with Customers2,057.9 114.1 461.4 66.0 322.3 (669.6)2,352.1 
Alternative Revenue Programs1.7 (4.0)(72.3)(2.0)— 67.0 (9.6)
Other Revenues (2)
0.7 0.1 0.2 0.1 — — 1.1 
Total Operating Revenues$2,060.3 $110.2 $389.3 $64.1 $322.3 $(602.6)$2,343.6 
For the Nine Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution
Electric
Transmission
Water DistributionOtherEliminationsTotal
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$3,063.7 $399.6 $— $113.2 $— $— $3,576.5 
Commercial1,815.7 243.5 — 47.7 — (3.7)2,103.2 
Industrial248.4 67.0 — 3.6 — (10.1)308.9 
Total Retail Tariff Sales Revenues5,127.8 710.1 — 164.5 — (13.8)5,988.6 
Wholesale Transmission Revenues— — 1,177.9 — 55.6 (981.4)252.1 
Wholesale Market Sales Revenues231.1 31.9 — 2.9 — — 265.9 
Other Revenues from Contracts with Customers63.3 4.1 9.9 2.8 845.1 (838.0)87.2 
Total Revenues from Contracts with Customers5,422.2 746.1 1,187.8 170.2 900.7 (1,833.2)6,593.8 
Alternative Revenue Programs54.8 22.9 (52.7)(4.1)— 48.9 69.8 
Other Revenues (2)
4.9 1.0 0.5 0.5 — — 6.9 
Total Operating Revenues$5,481.9 $770.0 $1,135.6 $166.6 $900.7 $(1,784.3)$6,670.5 
For the Three Months Ended September 30, 2021For the Three Months Ended September 30, 2020
(Millions of Dollars)CL&PNSTAR ElectricPSNHCL&PNSTAR ElectricPSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$572.0 $401.9 $172.9 $608.7 $415.4 $159.8 
Commercial249.4 411.3 88.5 244.7 358.3 80.1 
Industrial35.0 35.9 25.3 38.0 30.6 22.4 
Total Retail Tariff Sales Revenues856.4 849.1 286.7 891.4 804.3 262.3 
Wholesale Transmission Revenues268.2 171.0 88.0 233.3 153.1 71.8 
Wholesale Market Sales Revenues100.3 21.3 12.2 60.0 12.1 7.5 
Other Revenues from Contracts with Customers12.1 14.3 7.3 8.1 10.5 3.7 
(Reserve for)/Amortization of Revenues
  Subject to Refund (1)
(93.4)— — — — 2.3 
Total Revenues from Contracts with Customers1,143.6 1,055.7 394.2 1,192.8 980.0 347.6 
Alternative Revenue Programs(82.0)(14.4)(24.1)(65.0)8.2 (13.8)
Other Revenues (2)
0.2 0.7 0.6 0.2 0.7 — 
Eliminations(142.2)(123.3)(55.8)(133.7)(113.5)(50.1)
Total Operating Revenues$919.6 $918.7 $314.9 $994.3 $875.4 $283.7 
38


For the Nine Months Ended September 30, 2021For the Nine Months Ended September 30, 2020
(Millions of Dollars)CL&PNSTAR ElectricPSNHCL&PNSTAR ElectricPSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential$1,558.6 $1,069.0 $467.3 $1,567.9 $1,057.9 $437.9 
Commercial679.3 975.7 249.2 670.4 921.3 225.3 
Industrial100.2 89.5 71.4 105.3 82.1 61.0 
Total Retail Tariff Sales Revenues2,338.1 2,134.2 787.9 2,343.6 2,061.3 724.2 
Wholesale Transmission Revenues652.8 478.2 207.4 576.5 430.3 171.1 
Wholesale Market Sales Revenues278.1 64.7 37.3 163.9 39.8 27.4 
Other Revenues from Contracts with Customers28.8 36.8 14.9 25.1 32.4 10.9 
(Reserve for)/Amortization of Revenues
  Subject to Refund (1)
(93.4)— — — — 6.9 
Total Revenues from Contracts with Customers3,204.4 2,713.9 1,047.5 3,109.1 2,563.8 940.5 
Alternative Revenue Programs(74.2)(11.3)(18.8)(27.8)31.1 (1.2)
Other Revenues (2)
0.3 2.5 1.1 2.0 2.8 0.6 
Eliminations(394.0)(362.0)(142.6)(371.9)(327.5)(124.6)
Total Operating Revenues$2,736.5 $2,343.1 $887.2 $2,711.4 $2,270.2 $815.3 

(1)    The Electric Distribution segment 2021 revenue subject to refund amount relates to an October 1, 2021 CL&P settlement agreement with the DEEP, OCC, AG and the Connecticut Industrial Energy Consumers, which resolved certain issues that arose in pending regulatory proceedings initiated by the PURA. In the third quarter of 2021, CL&P recorded a reduction to Operating Revenues of $65 million on the income statement for a reserve for customer credits associated with the provisions of the settlement agreement. Additionally, CL&P recorded a $28.4 million reserve in the first quarter of 2021 for a civil penalty for non-compliance with storm performance standards to be credited to customers. The penalty was reclassified from Operations and Maintenance expense to a reduction of Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement. In total, the reserve for revenues subject to refund totaled $93.4 million and was recorded as a current regulatory liability on CL&P’s balance sheet and as a reduction to Operating Revenues on the nine months ended September 30, 2021 income statement. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.

(2)    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 $1.1 million (including $0.2 million at CL&P and $0.7 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 September 30, 2021 and 2020, respectively, and $3.8 million (including $0.6 million at CL&P and $2.5 million at NSTAR Electric) and $3.2 million (including $0.6 million at CL&P and $2.1 million at NSTAR Electric) for the nine months ended September 30, 2021 and 2020, 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) the results of other unregulated subsidiaries, which are not part of its core business, and 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, NSTAR Gas and EGMA purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $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.   

39


Eversource's segment information is as follows:
For the Three Months Ended September 30, 2021
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution
Electric
Transmission
Water DistributionOtherEliminationsTotal
Operating Revenues$2,055.2 $185.5 $418.3 $61.8 $326.1 $(614.1)$2,432.8 
Depreciation and Amortization(179.8)(28.5)(75.4)(11.5)(28.0)1.1 (322.1)
Other Operating Expenses(1,640.5)(176.9)(122.4)(26.1)(275.2)613.7 (1,627.4)
Operating Income/(Loss)$234.9 $(19.9)$220.5 $24.2 $22.9 $0.7 $483.3 
Interest Expense$(61.0)$(15.7)$(33.5)$(8.0)$(42.5)$12.7 $(148.0)
Other Income, Net25.4 6.7 5.0 1.2 325.9 (320.4)43.8 
Net Income/(Loss) Attributable to Common
   Shareholders
150.4 (22.0)139.4 17.5 304.9 (307.0)283.2 
For the Nine Months Ended September 30, 2021
Eversource
(Millions of Dollars)
Electric DistributionNatural Gas DistributionElectric TransmissionWater DistributionOtherEliminationsTotal
Operating Revenues$5,632.1 $1,277.8 $1,230.1 $161.0 $999.1 $(1,918.9)$7,381.2 
Depreciation and Amortization(534.1)(108.7)(223.4)(34.3)(83.7)3.1 (981.1)
Other Operating Expenses(4,531.3)(970.6)(359.6)(76.7)(860.3)1,918.9 (4,879.6)
Operating Income$566.7 $198.5 $647.1 $50.0 $55.1 $3.1 $1,520.5 
Interest Expense$(175.4)$(44.2)$(98.7)$(24.0)$(125.9)$37.0 $(431.2)
Other Income, Net76.0 15.2 17.3 3.1 1,059.2 (1,046.2)124.6 
Net Income Attributable to Common Shareholders365.4 129.6 412.4 30.0 982.5 (1,006.1)913.8 
Cash Flows Used for Investments in Plant764.9 506.4 691.0 91.2 157.6 — 2,211.1 
For the Three Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution (1)
Electric
Transmission
Water Distribution
Other (1)
Eliminations (1)
Total
Operating Revenues$2,060.3 $110.2 $389.3 $64.1 $322.3 $(602.6)$2,343.6 
Depreciation and Amortization(182.0)(14.8)(70.6)(10.8)(24.1)0.3 (302.0)
Other Operating Expenses(1,577.0)(104.2)(120.6)(10.2)(271.5)603.1 (1,480.4)
Operating Income/(Loss)$301.3 $(8.8)$198.1 $43.1 $26.7 $0.8 $561.2 
Interest Expense$(53.3)$(10.1)$(31.1)$(8.0)$(38.7)$7.1 $(134.1)
Other Income, Net16.0 0.7 6.9 1.6 401.0 (397.0)29.2 
Net Income/(Loss) Attributable to Common
   Shareholders
205.5 (15.4)125.6 23.1 396.6 (389.1)346.3 
For the Nine Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution (1)
Electric
Transmission
Water Distribution
Other (1)
Eliminations (1)
Total
Operating Revenues$5,481.9 $770.0 $1,135.6 $166.6 $900.7 $(1,784.3)$6,670.5 
Depreciation and Amortization(490.0)(55.1)(206.8)(33.1)(68.1)1.2 (851.9)
Other Operating Expenses(4,309.9)(592.0)(338.5)(60.7)(771.4)1,787.9 (4,284.6)
Operating Income$682.0 $122.9 $590.3 $72.8 $61.2 $4.8 $1,534.0 
Interest Expense$(160.7)$(32.1)$(93.8)$(25.1)$(119.0)$27.6 $(403.1)
Other Income, Net44.9 2.5 22.7 1.7 1,087.9 (1,076.1)83.6 
Net Income Attributable to Common Shareholders450.6 73.3 381.8 35.6 1,035.6 (1,043.7)933.2 
Cash Flows Used for Investments in Plant781.2 322.8 732.4 84.0 181.2 — 2,101.6 

(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.

The following table summarizes Eversource's segmented total assets:
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution
Electric
Transmission
Water DistributionOtherEliminationsTotal
As of September 30, 2021$25,604.2 $6,865.6 $12,123.5 $2,444.9 $21,624.5 $(20,648.6)$48,014.1 
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 

40


17.     ACQUISITION OF ASSETS OF COLUMBIA GAS OF MASSACHUSETTS

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 in 2021 to reduce the fair values of certain regulatory and plant assets and certain liabilities 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:
(Millions of Dollars)
Current Assets$138 
Restricted Cash57 
PP&E1,184 
Goodwill50 
Other Noncurrent Assets, excluding Goodwill131 
Other Current Liabilities(81)
Other Noncurrent Liabilities(310)
Cash Purchase Price$1,169 




41


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, the combined Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, as well as the Eversource 2020 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 (non-GAAP) that is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. Our earnings discussion also includes non-GAAP financial measures referencing our 2021 earnings and EPS excluding charges at CL&P related to a settlement agreement that included credits to customers and funding of various customer assistance initiatives and a storm performance penalty imposed on CL&P by PURA and our 2021 and 2020 earnings and EPS excluding certain acquisition and 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 2021 and 2020 results without including these items. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the impacts of the CL&P settlement agreement, the storm performance penalty imposed on CL&P by PURA, and acquisition and transition costs are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating 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 alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.

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, including any new or emerging variants, 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,
•    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.

42


All such factors are difficult to predict and contain uncertainties that may materially affect our actual results, many of which are beyond our control.  You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's 2020 combined Annual Report on Form 10-K.  This combined Quarterly Report on Form 10-Q and Eversource's 2020 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

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, NSTAR Gas and Eversource Gas Company of Massachusetts (EGMA) (natural gas utilities) and Aquarion (water utilities). Eversource is organized into the electric distribution, electric transmission, natural gas distribution and water distribution reportable segments.

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 $283.2 million, or $0.82 per share, in the third quarter of 2021, and $913.8 million, or $2.65 per share, in the first nine months of 2021, compared with $346.3 million, or $1.01 per share, in the third quarter of 2020, and $933.2 million, or $2.76 per share, in the first nine months of 2020.

Our third quarter and first nine months of 2021 results include after-tax costs resulting from a CL&P settlement agreement on October 1, 2021 recorded within the electric distribution segment. Our first nine months of 2021 results also include an after-tax charge at CL&P recorded within the electric distribution segment for a PURA assessment as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. Our third quarter and first nine months of 2021 and 2020 results also include after-tax transition and acquisition costs recorded at Eversource parent. In total, these after-tax costs were $67.5 million, or $0.20 per share, in the third quarter of 2021, and $103.1 million, or $0.30 per share, in the first nine months of 2021. Our 2020 results include after-tax transition and acquisition costs recorded at Eversource parent of $5.3 million, or $0.01 per share, in the third quarter of 2020, and $12.8 million, or $0.04 per share, in the first nine months of 2020. Excluding those costs, our non-GAAP earnings were $350.7 million, or $1.02 per share, in the third quarter of 2021, and $1.02 billion, or $2.95 per share, in the first nine months of 2021, compared with $351.6 million, or $1.02 per share, in the third quarter of 2020, and $946.0 million, or $2.80 per share, in the first nine months of 2020.

We reaffirmed our 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 estimate to earn within the 2021 non-GAAP earnings guidance range of between $3.81 per share and $3.93 per share, which excludes the charges associated with the CL&P settlement agreement and the penalty for CL&P’s Tropical Storm Isaias response assessed by PURA, as well as transition costs related to our October 2020 purchase of the assets of CMA and acquisition costs.

Liquidity:

Cash flows provided by operating activities totaled $1.52 billion in the first nine months of 2021, compared with $1.50 billion in the first nine months of 2020. Investments in property, plant and equipment totaled $2.21 billion in the first nine months of 2021, compared with $2.10 billion in the first nine months of 2020.  Cash totaled $88.2 million as of September 30, 2021, compared with $106.6 million as of December 31, 2020. Our available borrowing capacity under our commercial paper programs totaled $1.86 billion as of September 30, 2021.

In the first nine months of 2021, we issued $3.15 billion of new long-term debt, consisting of $1.00 billion at Eversource parent, $425 million at CL&P, $600 million at NSTAR Electric, $350 million at PSNH, $125 million at Yankee Gas, $550 million at EGMA, and $100 million at Aquarion Water Company of Connecticut. In the first nine months of 2021, we repaid $1.14 billion of long-term debt, consisting of $450 million at Eversource parent, $120.5 million at CL&P, $250 million at NSTAR Electric, $282 million at PSNH, and $40 million at Aquarion Water Company of Connecticut.

On September 1, 2021, our Board of Trustees approved a common share dividend payment of $0.6025 per share, paid on September 30, 2021 to shareholders of record as of September 16, 2021.

43


Regulatory and Strategic Items:

On October 1, 2021, CL&P entered into a settlement agreement with the DEEP, Office of Consumer Counsel (OCC), Office of the Attorney General (AG) and the Connecticut Industrial Energy Consumers, resolving certain issues that arose in pending regulatory proceedings initiated by the PURA. PURA approved the settlement agreement on October 27, 2021. In the settlement agreement, CL&P agreed to provide a total of $65 million of customer credits to be distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. CL&P also agreed to irrevocably set aside $10 million to fund various customer assistance initiatives as directed by PURA. In the third quarter of 2021, CL&P recorded a liability of $75 million associated with the provisions of the settlement agreement, with a $65 million pre-tax charge as a reduction to Operating Revenues associated with the customer credits and a $10 million charge to Operations and Maintenance expense associated with the customer assistance initiatives on the three months ended September 30, 2021 income statement. In exchange for the $75 million of customer credits and assistance, PURA’s interim rate reduction docket was resolved without findings. As a result of the settlement agreement, neither the 90 basis point reduction to CL&P’s return on equity introduced in PURA’s storm-related decision issued April 28, 2021, nor the 45 basis point reduction to CL&P’s return on equity included in PURA’s draft decision issued September 14, 2021 in the interim rate reduction docket, will be implemented. Additionally, CL&P agreed to withdraw its pending appeals related to the storm performance penalty imposed in PURA’s April 28, 2021 and July 14, 2021 decisions. CL&P has also agreed to freeze its current base distribution rates until no earlier than January 1, 2024. The cumulative pre-tax impact of the October 1, 2021 settlement agreement and the Storm Isaias assessment imposed in PURA’s April 28, 2021 and July 14, 2021 decisions totaled $103.6 million, and the after-tax earnings impact was $85.8 million, or $0.25 per share, for the nine months ended September 30, 2021.

In August of 2021, BOEM released its Final Environmental Impact Statement (EIS) for the South Fork Wind project, which assessed the environmental, social, and economic impacts of constructing the project. In August of 2021, Sunrise Wind received BOEM’s Notice of Intent (NOI) to prepare an EIS for the review of the Construction Operations Plan (COP) application submitted by Sunrise Wind.

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 September 30,For the Nine Months Ended September 30,
2021202020212020
(Millions of Dollars, Except Per Share Amounts)AmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
Net Income Attributable to Common Shareholders (GAAP)$283.2 $0.82 $346.3 $1.01 $913.8 $2.65 $933.2 $2.76 
Regulated Companies (non-GAAP) (1)
$348.5 $1.01 $338.8 $0.99 $1,023.2 $2.97 $941.3 $2.79 
Eversource Parent and Other Companies (non-GAAP) (1)
2.2 0.01 12.8 0.03 (6.3)(0.02)4.7 0.01 
Non-GAAP Earnings$350.7 $1.02 $351.6 $1.02 $1,016.9 $2.95 $946.0 $2.80 
CL&P Settlement Impacts (after-tax) (2)
(63.2)(0.19)— — (85.8)(0.25)— — 
Transition and Acquisition Costs (after-tax) (3)
(4.3)(0.01)(5.3)(0.01)(17.3)(0.05)(12.8)(0.04)
Net Income Attributable to Common Shareholders (GAAP)$283.2 $0.82 $346.3 $1.01 $913.8 $2.65 $933.2 $2.76 

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

(2) The 2021 after-tax costs are associated with the CL&P settlement agreement on October 1, 2021, which included a pre-tax $65 million charge to earnings for customer credits and a $10 million charge to earnings to fund various customer assistance initiatives recorded in the third quarter of 2021. The nine months ended 2021 after-tax costs also include charges recorded at CL&P as a result of the April 28, 2021 and July 14, 2021 PURA decisions, which included a $28.4 million civil penalty for non-compliance with storm performance standards currently being provided as credits to customer bills and a $0.2 million fine to the State of Connecticut’s general fund. As a result of the October 1, 2021 settlement agreement, CL&P agreed to withdraw its pending appeals related to the storm performance penalty imposed in PURA’s April 28, 2021 and July 14, 2021 decisions. Management views these collective charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance.

(3) The 2020 acquisition costs are associated with our purchase of the assets of CMA on October 9, 2020. The 2021 costs are for the transition of systems as a result of the CMA acquisition and costs associated with our pending water business acquisition.

44


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 September 30,For the Nine Months Ended September 30,
2021202020212020
(Millions of Dollars, Except Per Share Amounts)AmountPer ShareAmountPer ShareAmountPer ShareAmountPer Share
Net Income - Regulated Companies (GAAP)$285.3 $0.82 $338.8 $0.99 $937.4 $2.72 $941.3 $2.79 
Electric Distribution (non-GAAP)$213.6 $0.62 $205.5 $0.60 $451.2 $1.31 $450.6 $1.33 
Electric Transmission139.4 0.40 125.6 0.36 412.4 1.20 381.8 1.13 
Natural Gas Distribution (1)
(22.0)(0.06)(15.4)(0.04)129.6 0.37 73.3 0.22 
Water Distribution17.5 0.05 23.1 0.07 30.0 0.09 35.6 0.11 
Net Income - Regulated Companies (Non-GAAP)$348.5 $1.01 $338.8 $0.99 $1,023.2 $2.97 $941.3 $2.79 
CL&P Settlement Impacts (after-tax)(63.2)(0.19)— — (85.8)(0.25)— — 
Net Income - Regulated Companies (GAAP)$285.3 $0.82 $338.8 $0.99 $937.4 $2.72 $941.3 $2.79 

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

Our electric distribution segment earnings decreased $55.1 million in the third quarter of 2021, as compared to the third quarter of 2020, due primarily to CL&P’s settlement agreement on October 1, 2021, which included a pre-tax $65 million charge to earnings for customer credits and a $10 million charge to earnings to fund various customer assistance initiatives recorded in the third quarter of 2021. The after-tax impact of the CL&P settlement agreement was $63.2 million, or $0.19 per share. Excluding those charges, electric distribution segment earnings increased $8.1 million due primarily to base distribution rate increases at NSTAR Electric effective January 1, 2021 and at PSNH effective January 1, 2021 and August 1, 2021, and higher earnings from CL&P's capital tracker mechanism due to increased electric system improvements. The earnings increase was partially offset by higher operations and maintenance expense, higher depreciation expense, higher interest expense, and higher property tax expense.

Our electric distribution segment earnings decreased $85.2 million in the first nine months of 2021, as compared to the first nine months of 2020, due primarily to CL&P’s settlement agreement on October 1, 2021 resulting in a total $75 million pre-tax charge to earnings and a $28.6 million pre-tax charge at CL&P for an assessment by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020 recorded in the first quarter of 2021. The after-tax impact of the CL&P settlement agreement and CL&P storm performance assessment imposed by PURA was $85.8 million, or $0.25 per share. For further information, see "Regulatory Developments and Rate Matters - Connecticut" included in this Management’s Discussion and Analysis. Excluding those charges, electric distribution segment earnings increased $0.6 million due primarily to base distribution rate increases at NSTAR Electric effective January 1, 2021, at PSNH effective January 1, 2021 and August 1, 2021, and at CL&P effective May 1, 2020, and higher earnings from CL&P's capital tracker mechanism due to increased electric system improvements. Those earnings increases were partially offset by higher operations and maintenance expense driven by higher employee-related expenses and higher storm restoration costs, higher depreciation expense, higher property tax expense, and higher interest expense.

Our electric transmission segment earnings increased $13.8 million and $30.6 million in the third quarter and the first nine months of 2021, respectively, as compared to the third quarter and the first nine months of 2020, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. The earnings increase for the nine-month period was partially offset by a lower benefit from the annual billing and cost reconciliation filing with FERC.

Our natural gas distribution segment had an increased loss of $6.6 million in the third quarter of 2021, as compared to the third quarter of 2020, due primarily to a loss from the addition of Eversource Gas Company of Massachusetts (EGMA) operations of $8.4 million due to the seasonality of the natural gas business. The increased loss was partially offset by the base distribution rate increase at Yankee Gas effective January 1, 2021 (with changes to customer rates beginning March 1, 2021).

Our natural gas distribution segment earnings increased $56.3 million in the first nine months of 2021, as compared to the first nine months of 2020, due primarily to the addition of EGMA earnings of $33.2 million. Additionally, the earnings increase was due to base distribution rate increases at NSTAR Gas effective November 1, 2020 and at Yankee Gas effective January 1, 2021 (with changes to customer rates beginning March 1, 2021), and higher earnings from capital tracker mechanisms due to continued investments in natural gas infrastructure. The earnings increase was partially offset by higher depreciation expense, higher operations and maintenance expense, and higher property tax expense.

Our water distribution segment earnings decreased $5.6 million in both the third quarter and the first nine months of 2021, as compared to the third quarter and the first nine months of 2020. The earnings decrease in both periods was due primarily to the absence in 2021 of a third quarter 2020 after-tax gain of $3.5 million and lower revenues as a result of the sale of the water system and treatment plant in Hingham, Massachusetts.

Eversource Parent and Other Companies:  Eversource parent and other companies had increased losses of $9.6 million and $15.5 million in the third quarter and the first nine months of 2021, respectively, as compared to the third quarter and the first nine months of 2020, due primarily to a higher effective tax rate. The increased loss for the nine-month period was also due to an increase in the transition and integration costs of EGMA of $4.5 million.

45


Impact of COVID-19
 
COVID-19 has adversely affected customers, workers and the U.S. economy. We provide a critical service to our customers and have taken extensive measures to maintain its safety and reliability. We continue to address the impacts of the COVID-19 pandemic and how the related developments affect Eversource. We are in the re-entry phase of our pandemic response plan, in which the majority of our employees under remote work arrangements have transitioned back to the workplace. 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 COVID-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 September 30, 2021, our allowance for uncollectible customer receivable balance of $441.7 million, of which $229.9 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. We continue to evaluate the adequacy of 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 length of the moratorium on disconnections in Connecticut and Massachusetts, and the economic slowdown resulting from the COVID-19 pandemic. In Connecticut, the moratorium on disconnections of commercial and non-hardship residential customers ended in June 2021 and September 2021, respectively, but is still in place for hardship residential customers. In Massachusetts, the moratorium on disconnections of commercial customers and residential customers ended in September 2020 and July 2021, respectively. Disconnection activities have resumed after these moratoria have expired, which has resulted in recent improved collection experience and more customers applying for, and receiving, hardship status. On July 7, 2021, the NHPUC issued an order to New Hampshire utilities that concluded that recovery of incremental bad debt or waived late fees related to the COVID-19 pandemic would be addressed in a future rate case to the extent those costs are relevant at that time. As a result of the order, in the first nine months of 2021, PSNH removed its $0.6 million deferral of net incremental COVID-19 costs. In New Hampshire, the moratorium on disconnections of non-hardship residential and commercial customers ended in late 2020 and for hardship residential customers ended in May 2021 and PSNH has resumed disconnection activities, which has resulted in improved collection of outstanding customer receivable balances.

Based upon the evaluation performed, in the first nine months of 2021, management increased the allowance for uncollectible accounts for amounts incurred as a result of COVID-19 by $25.8 million for Eversource (increase of $16.3 million for CL&P and $12.5 million at our natural gas businesses, and decrease of $1.8 million at NSTAR Electric). In the third quarter of 2021, the COVID-19 related allowance for uncollectible accounts decreased by $6.5 million at Eversource (increased $4.0 million at CL&P, and decreased $8.3 million at NSTAR Electric and $2.2 million at our natural gas businesses). The COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs at our Connecticut and Massachusetts utilities 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 September 30, 2021, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $57.0 million at Eversource ($20.1 million at CL&P, $8.5 million at NSTAR Electric, and $27.4 million at our natural gas businesses). Based on the status of our COVID-19 regulatory dockets, communications with our state regulatory commissions, and policies and practices in the jurisdictions in which we operate, we believe our state regulatory commissions in Connecticut and Massachusetts 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 nine months of 2021, net incremental costs incurred as a result of COVID-19 totaled $21.2 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 benefits under the CARES Act. In the first nine months of 2021, we deferred $17.3 million of these net incremental COVID-19 costs on the balance sheet. Net incremental COVID-19 expenses that reduced pre-tax earnings totaled $3.9 million on the statement of income in the first nine months of 2021.

As of September 30, 2021, a total of $41.3 million of net deferred incremental COVID-19 costs were recorded on the balance sheet, of which $34.5 million of that deferral related to uncollectible expense that impacts earnings and $6.8 million related to cleaning and supplies for personal protective equipment.

46


Liquidity

Cash totaled $88.2 million as of September 30, 2021, compared with $106.6 million as of December 31, 2020.

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $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, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $2.00 billion revolving credit facility, which terminates on October 15, 2026. This revolving credit facility serves to backstop Eversource parent's $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 October 15, 2026. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.  

The amount of borrowings outstanding and available under the commercial paper programs were as follows:
Borrowings Outstanding as ofAvailable Borrowing Capacity as ofWeighted-Average Interest Rate as of
September 30, 2021December 31, 2020September 30, 2021December 31, 2020September 30, 2021December 31, 2020
(Millions of Dollars)
Eversource Parent Commercial Paper Program$653.0 $1,054.3 $1,347.0 $945.7 0.18 %0.25 %
NSTAR Electric Commercial Paper Program138.0 195.0 512.0 455.0 0.10 %0.16 %

There were no borrowings outstanding on the revolving credit facilities as of September 30, 2021 or December 31, 2020.

CL&P and PSNH have uncommitted line of credit agreements totaling $450 million and $300 million, respectively, which will expire on May 12, 2022. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, 2021.

Amounts outstanding under the commercial paper programs 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 Gas long-term debt issuances in October 2021, $80.0 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of September 30, 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 September 30, 2021, there were intercompany loans from Eversource parent to PSNH of $66.5 million, and to a subsidiary of NSTAR Electric of $24.6 million. As of December 31, 2020, there were intercompany loans from Eversource parent to PSNH of $46.3 million, and to a subsidiary of NSTAR Electric of $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.

Availability under Long-Term Debt Issuance Authorizations: On March 31, 2021, the DPU approved NSTAR Electric's request for authorization to issue up to $1.60 billion in long-term debt through December 31, 2023. On September 10, 2021, the DPU approved EGMA’s request for authorization to issue up to $725 million in long-term debt through December 31, 2023. The remaining Eversource operating companies, including CL&P and PSNH, have utilized the long-term debt authorizations in place with the respective regulatory commissions.

47


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 DateMaturity DateUse of Proceeds for Issuance/
Repayment Information
CL&P:
2.05% Series A First Mortgage Bonds$425.0 June 2021July 2031Repaid short-term debt, paid capital expenditures and working capital
4.38% Series A PCRB(120.5)September 2021September 2028Paid on par call date in advance of maturity
NSTAR Electric:
3.10% 2021 Debentures300.0 May 2021June 2051
Refinanced investments in eligible green
expenditures, which were previously financed in 2019 and 2020
3.50% Series F Senior Notes(250.0)June 2021September 2021Paid on par call date in advance of maturity date
1.95% 2021 Debentures300.0 August 2021August 2031Repaid short-term debt, paid capital expenditures and working capital
PSNH:
4.05% Series Q First Mortgage Bonds(122.0)March 2021June 2021Paid on par call date in advance of maturity date
3.20% Series R First Mortgage Bonds(160.0)June 2021September 2021Paid on par call date in advance of maturity date
2.20% Series V First Mortgage Bonds350.0 June 2021June 2031Repaid short-term debt, including short-term debt used to redeem Series R First Mortgage Bonds, paid capital expenditures and working capital
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
Eversource Parent 1.40% Series U Senior Notes300.0 August 2021August 2026Repaid short-term debt
Eversource Parent Variable Rate Series T Senior Notes (1)
350.0 August 2021August 2023Repaid short-term debt
Aquarion Water Company of Connecticut 3.31%
   Senior Notes
100.0 April 2021April 2051Repaid 5.50% Notes, repaid short-term debt, paid capital expenditures and working capital
Aquarion Water Company of Connecticut 5.50% Notes(40.0)April 2021April 2021Paid at maturity
Yankee Gas 1.38% Series S First Mortgage Bonds90.0 August 2021August 2026(2)
Yankee Gas 2.88% Series T First Mortgage Bonds35.0 August 2021August 2051(2)
EGMA 2.11% Series A First Mortgage Bonds310.0 September 2021October 2031(2)
EGMA 2.92% Series B First Mortgage Bonds240.0 September 2021October 2051(2)
NSTAR Gas 2.25% Series T First Mortgage Bonds40.0 October 2021November 2031(2)
NSTAR Gas 3.03% Series U First Mortgage Bonds40.0 October 2021November 2051(2)

(1)    On August 10, 2021, Eversource Parent issued $350 million of floating rate Series T Senior Notes with a maturity date of August 15, 2023. The notes have a coupon rate based on the Compounded SOFR plus 0.25%.

(2)    The use of proceeds from these various issuances refinanced existing indebtedness, funded capital expenditures and were for general corporate purposes. The EGMA indebtedness that was refinanced included $309.4 million of long-term debt.

Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $43.2 million of RRB principal payments and $18.9 million of interest payments in the first nine months of 2021, and paid $43.2 million of RRB principal payments and $20.2 million of interest payments in the first nine months of 2020.

Cash Flows:  Cash flows provided by operating activities totaled $1.52 billion in the first nine months of 2021, compared with $1.50 billion in the first nine months of 2020. Operating cash flows were favorably impacted by improvements in the timing of collections for regulatory tracking mechanisms, the addition of cash flows of EGMA, the timing of cash collections on our accounts receivable, and the timing of other working capital items. These favorable impacts were partially offset by the timing of cash payments made on our accounts payable, cash payments made in 2021 for storm restoration costs of approximately $52 million related to Tropical Storm Isaias at CL&P, a $39.5 million increase in income tax payments made in 2021, as compared to 2020, a $32.0 million increase in Pension and PBOP contributions made in 2021, as compared to 2020, and an increase in cost of removal expenditures.

On September 1, 2021, our Board of Trustees approved a common share dividend payment of $0.6025 per share, paid on September 30, 2021 to shareholders of record as of September 16, 2021. In the first nine months of 2021, we paid cash dividends of $603.6 million and issued non-cash dividends of $17.3 million in the form of treasury shares, totaling dividends of $620.9 million. In the first nine months of 2020, we paid cash dividends of $555.7 million and issued non-cash dividends of $17.2 million in the form of treasury shares, totaling dividends of $572.9 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.

48


In the first nine months of 2021, CL&P, NSTAR Electric and PSNH paid $210.3 million, $283.2 million, and $235.6 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 nine months of 2021, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $2.21 billion, $563.2 million, $675.2 million, and $217.4 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 September 21, 2021, Fitch changed CL&P’s outlook from stable to negative. On October 29, 2021, S&P changed CL&P’s outlook from negative to stable.

Business Development and Capital Expenditures

Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP expense (all of which are non-cash factors), totaled $2.29 billion in the first nine months of 2021, compared to $2.19 billion in the first nine months of 2020.  These amounts included $161.2 million and $178.3 million in the first nine months of 2021 and 2020, 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 decreased by $22.6 million in the first nine months of 2021, as compared to the first nine months of 2020.  A summary of electric transmission capital expenditures by company is as follows:  
 For the Nine Months Ended September 30,
(Millions of Dollars)20212020
CL&P$242.4 $296.4 
NSTAR Electric316.1 253.6 
PSNH123.7 154.8 
Total Electric Transmission Segment$682.2 $704.8 

Eastern Massachusetts and New Hampshire 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 23 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. On June 25, 2021, the Massachusetts Supreme Judicial Court rejected the Town’s appeal, affirming all aspects of the Siting Board’s final decision. On March 11, 2021, Protect Sudbury filed a petition with the Surface Transportation Board, a federal agency, claiming the Massachusetts Bay Transportation Authority (MBTA) did not have the right to lease a portion of its inactive railroad corridor, a claim previously rejected by the Massachusetts Land Court. MBTA filed its response on April 30, 2021 and a decision is anticipated by the end of the year. Additionally, Eversource must reach agreement on a Memorandum of Agreement (MOA) with the Army Corps of Engineers and consulting parties, including the Massachusetts Historical Commission and the Narragansett tribe, to establish measures to be performed by the Company to mitigate project impacts. The Army Corps of Engineers initiated the MOA consultation process with the consulting parties in late September. Although there is no mandated timeframe for resolution, the Company anticipates achieving resolution by the end of 2021. The two remaining upgrades, the Mystic-Woburn and the Wakefield-Woburn reliability projects, are under construction and are expected to be placed in service by the second quarter of 2023. We estimate our portion of the investment will be approximately $750 million, of which, $564 million has been spent and capitalized through September 30, 2021.

Southeastern Massachusetts Transmission Projects: These projects consist of a 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. Of the twelve upgrades in Eversource’s service territory, four require siting approvals from the Massachusetts regulatory agencies, of which, one has received approval and is under construction, two have completed hearings and are awaiting orders and one, a joint project with National Grid, has yet to be filed. Of the remaining eight projects, two projects are under construction, and six projects have been placed in-service. We estimate our portion of the investment will be approximately $190 million, of which, $42 million has been spent and capitalized through September 30, 2021.

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

49


Distribution Business:  A summary of distribution capital expenditures is as follows:
For the Nine Months Ended September 30,
(Millions of Dollars) CL&P NSTAR Electric PSNH Total Electric Natural GasWater Total
2021
Basic Business$160.2 $111.7 $39.5 $311.4 $140.8 $11.0 $463.2 
Aging Infrastructure110.5 162.7 44.3 317.5 358.3 77.7 753.5 
Load Growth and Other51.2 108.5 15.2 174.9 59.0 0.5 234.4 
Total Distribution321.9 382.9 99.0 803.8 558.1 89.2 1,451.1 
Solar— (0.7)— (0.7)— — (0.7)
Total$321.9 $382.2 $99.0 $803.1 $558.1 $89.2 $1,450.4 
2020
Basic Business$149.4 $146.5 $38.9 $334.8 $59.7 $7.6 $402.1 
Aging Infrastructure133.2 178.8 58.7 370.7 268.0 82.5 721.2 
Load Growth and Other55.3 69.2