


	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended March 31, ~~2018~~2019
	or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________



Commission File Number	Registrant; State of Incorporation; Address; and Telephone Number	I.R.S. Employer Identification No.

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

0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY (a Connecticut corporation) 107 Selden Street Berlin, Connecticut 06037-1616 Telephone: (800) 286-5000	06-0303850

1-02301	NSTAR ELECTRIC COMPANY (a Massachusetts corporation) 800 Boylston Street Boston, Massachusetts 02199 Telephone: (800) 286-5000	04-1278810

1-6392	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE (a New Hampshire corporation) Energy Park 780 North Commercial Street Manchester, New Hampshire 03101-1134 Telephone: (800) 286-5000	02-0181050

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



	Yes	No
	x	¨

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



	Yes	No
	x	¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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. ~~(Check one):~~



	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company

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

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

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



	Yes	No

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

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



Company - Class of Stock	Outstanding as of April 30, ~~2018~~2019

Eversource Energy Common Shares, $5.00 par value	~~316,885,808~~317,461,097 shares
The Connecticut Light and Power Company Common Stock, $10.00 par value	6,035,205 shares
NSTAR Electric Company Common Stock, $1.00 par value	200 shares
Public Service Company of New Hampshire Common Stock, $1.00 par value	301 shares

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

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

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

GLOSSARY OF TERMS

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



Current or former Eversource Energy companies, segments or investments:
Eversource, ES or the Company	Eversource Energy and subsidiaries
Eversource parent or ES parent	Eversource Energy, a public utility holding company
ES parent and other companies	ES parent and other companies are comprised of Eversource parent, Eversource Service, Eversource Water Ventures, Inc. (parent company of Aquarion), and other subsidiaries, which primarily includes our unregulated businesses, HWP Company, The Rocky River Realty Company (a real estate subsidiary), ~~and~~ the consolidated operations of CYAPC and YAEC, and Eversource parent's equity ownership interests that are not consolidated
CL&P	The Connecticut Light and Power Company
NSTAR Electric	NSTAR Electric Company
PSNH	Public Service Company of New Hampshire
PSNH Funding	PSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH
NSTAR Gas	NSTAR Gas Company
Yankee Gas	Yankee Gas Services Company
Aquarion	Eversource Aquarion Holdings, ~~Inc~~Inc. and its subsidiaries (formerly known as Macquarie Utilities Inc)
NPT	Northern Pass Transmission LLC
Northern Pass	The HVDC and associated alternating-current transmission line project from Canada into New Hampshire
Eversource Service	Eversource Energy Service Company
Bay State Wind	A project being developed jointly by Eversource and Denmark-based Ørsted (formerly known as DONG Energy) to construct an offshore wind farm off the coast of Massachusetts
CYAPC	Connecticut Yankee Atomic Power Company
MYAPC	Maine Yankee Atomic Power Company
YAEC	Yankee Atomic Electric Company
Yankee Companies	CYAPC, YAEC and MYAPC
Regulated companies	The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, NPT, Aquarion, ~~the generation facilities of PSNH,~~ and the solar power facilities of NSTAR Electric
Regulators:
DEEP	Connecticut Department of Energy and Environmental Protection
DOE	U.S. Department of Energy
DOER	Massachusetts Department of Energy Resources
DPU	Massachusetts Department of Public Utilities
EPA	U.S. Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
ISO-NE	ISO New England, Inc., the New England Independent System Operator
MA DEP	Massachusetts Department of Environmental Protection
NHPUC	New Hampshire Public Utilities Commission
PURA	Connecticut Public Utilities Regulatory Authority
SEC	U.S. Securities and Exchange Commission
SJC	Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
~~Access Northeast~~	A project being developed jointly by Eversource, Enbridge, Inc. ("Enbridge"), and National Grid plc ("National Grid") through Algonquin Gas Transmission, LLC to bring needed additional natural gas pipeline and storage capacity to New England.
ADIT	Accumulated Deferred Income Taxes
AFUDC	Allowance For Funds Used During Construction
AOCI	Accumulated Other Comprehensive Income
ARO	Asset Retirement Obligation
Bcf	Billion cubic feet
C&LM	Conservation and Load Management
CfD	Contract for Differences
~~Clean Air Project~~	~~The construction of a wet flue gas desulphurization system, known as "scrubber technology," to reduce mercury emissions of the Merrimack coal-fired generation station in Bow, New Hampshire~~
CO₂	~~Carbon dioxide~~
CTA	Competitive Transition Assessment
CWIP	Construction Work in Progress
EDC	Electric distribution company
EDIT	Excess Deferred Income Taxes
EPS	Earnings Per Share
ERISA	Employee Retirement Income Security Act of 1974



ESOP	Employee Stock Ownership Plan
~~ESPP~~	~~Employee Share Purchase Plan~~
Eversource ~~2017~~2018 Form 10-K	The Eversource Energy and Subsidiaries ~~2017~~2018 combined Annual Report on Form 10-K as filed with the SEC
Fitch	Fitch Ratings
FMCC	Federally Mandated Congestion Charge
FTR	Financial Transmission Rights
GAAP	Accounting principles generally accepted in the United States of America
GSC	Generation Service Charge
GSRP	Greater Springfield Reliability Project
GWh	Gigawatt-Hours
HQ	Hydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDC	High-voltage direct current
Hydro Renewable Energy	Hydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec
IPP	Independent Power Producers
ISO-NE Tariff	ISO-NE FERC Transmission, Markets and Services Tariff
kV	Kilovolt
kVa	Kilovolt-ampere
kW	Kilowatt (equal to one thousand watts)
kWh	Kilowatt-Hours (the basic unit of electricity energy equal to one kilowatt of power supplied for one hour)
LBR	Lost Base Revenue
LNG	Liquefied natural gas
LRS	Supplier of last resort service
MG	Million gallons
MGP	Manufactured Gas Plant
MMBtu	One million British thermal units
MMcf	Million cubic feet
Moody's	Moody's Investors Services, Inc.
MW	Megawatt
MWh	Megawatt-Hours
NEEWS	New England East-West Solution
NETOs	New England Transmission Owners (including Eversource, National Grid and Avangrid)
NOx	~~Nitrogen oxides~~
OCI	Other Comprehensive Income/(Loss)
PAM	Pension and PBOP Rate Adjustment Mechanism
PBOP	Postretirement Benefits Other Than Pension
PBOP Plan	Postretirement Benefits Other Than Pension Plan ~~that provides certain retiree benefits, primarily medical, dental and life insurance~~
PCRBs	Pollution Control Revenue Bonds
Pension Plan	Single uniform noncontributory defined benefit retirement plan
PPA	Pension Protection Act
RECs	Renewable Energy Certificates
Regulatory ROE	The average cost of capital method for calculating the return on equity related to the distribution ~~and generation~~ business segment excluding the wholesale transmission segment
RNS	Regional Network Service
ROE	Return on Equity
~~RRB~~RRBs	Rate Reduction ~~Bond~~Bonds or Rate Reduction ~~Certificate~~Certificates
RSUs	Restricted share units
S&P	Standard & Poor's Financial Services LLC
SBC	Systems Benefits Charge
SCRC	Stranded Cost Recovery Charge
SERP	Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
~~SIP~~	~~Simplified Incentive Plan~~
SO₂	~~Sulfur dioxide~~
SS	Standard service
TCAM	Transmission Cost Adjustment Mechanism
TSA	Transmission Service Agreement
UI	The United Illuminating Company
VIE	Variable Interest Entity

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND ~~SUBSIDIARY~~SUBSIDIARIES

TABLE OF CONTENTS



		Page
PART I – FINANCIAL INFORMATION

ITEM 1.	Financial Statements (Unaudited)

	Eversource Energy and Subsidiaries (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income	2
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Statements of Common Shareholders' Equity	3
	Condensed Consolidated Statements of Cash Flows	34

	The Connecticut Light and Power Company (Unaudited)
	Condensed Balance Sheets	45
	Condensed Statements of Income	56
	Condensed Statements of Comprehensive Income	56
	Condensed Statements of Common Stockholder's Equity	7
	Condensed Statements of Cash Flows	68

	NSTAR Electric Company and Subsidiary (Unaudited)
	Condensed Consolidated Balance Sheets	79
	Condensed Consolidated Statements of Income	810
	Condensed Consolidated Statements of Comprehensive Income	8
	~~Condensed Consolidated Statements of Cash Flows~~	9

	~~Public Service Company of New Hampshire and Subsidiary (Unaudited)~~
	~~Condensed Consolidated Balance Sheets~~	10
	Condensed Consolidated Statements of ~~Income~~	11
	~~Condensed Consolidated Statements of Comprehensive Income~~ Common Stockholder's Equity	11
	Condensed Consolidated Statements of Cash Flows	12

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

	Combined Notes to Condensed Financial Statements (Unaudited)	1317

ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	3537
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and ~~Subsidiary~~Subsidiaries	49

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	5453

ITEM 4.	Controls and Procedures	5453

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	5554

ITEM 1A.	Risk Factors	5554

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5554

ITEM 6.	Exhibits	5655

SIGNATURES		5856

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018

ASSETS
Current Assets:
Cash and Cash Equivalents	$	303,810		$	38,165
Cash							$	35,145		$	108,068
Receivables, Net	1,086,282			925,083			1,140,348			994,055
Unbilled Revenues	164,082			201,361			159,288			176,285
Fuel, Materials, Supplies and Inventory	264,171			223,063			277,104			238,042
Regulatory Assets	683,211			741,868			507,255			514,779
Prepayments and Other Current Assets	210,534			138,009			181,724			260,995
Assets Held for Sale	59,346			219,550
Total Current Assets	2,771,436			2,487,099			2,300,864			2,292,224

Property, Plant and Equipment, Net	23,958,688			23,617,463			26,032,781			25,610,428

Deferred Debits and Other Assets:
Regulatory Assets	4,655,521			4,497,447			4,589,427			4,631,137
Goodwill	4,427,266			4,427,266			4,427,266			4,427,266
Investments in Unconsolidated Affiliates							711,476			464,286
Marketable Securities	580,446			585,419			415,405			417,508
Other Long-Term Assets	646,626			605,692			463,788			398,407
Total Deferred Debits and Other Assets	10,309,859			10,115,824			10,607,362			10,338,604

Total Assets	$	37,039,983		$	36,220,386		$	38,941,007		$	38,241,256

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	1,049,305		$	1,088,087		$	1,477,830		$	910,000
Long-Term Debt – Current Portion	1,097,288			549,631			805,519			837,319
Rate Reduction Bonds – Current Portion							43,210			52,332
Accounts Payable	984,343			1,085,034			1,006,774			1,119,995
Regulatory Liabilities	205,970			128,071			385,442			370,230
Other Current Liabilities	759,112			738,222			840,587			823,006
Total Current Liabilities	4,096,018			3,589,045			4,559,362			4,112,882

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	3,389,606			3,297,518			3,543,052			3,506,030
Regulatory Liabilities	3,703,735			3,637,273			3,627,389			3,609,475
Derivative Liabilities	415,402			377,257			372,957			379,562
Accrued Pension, SERP and PBOP	1,026,181			1,228,091			939,786			962,510
Other Long-Term Liabilities	1,053,765			1,073,501			1,259,400			1,196,336
Total Deferred Credits and Other Liabilities	9,588,689			9,613,640			9,742,584			9,653,913

Capitalization:
Long-Term Debt	12,015,992			11,775,889			12,284,330			12,248,743

Rate Reduction Bonds							561,727			583,331

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

Equity:
Common Shareholders' Equity:
Common Shares	1,669,392			1,669,392			1,669,392			1,669,392
Capital Surplus, Paid In	6,224,620			6,239,940			6,242,089			6,241,222
Retained Earnings	3,670,603			3,561,084			4,092,895			3,953,974
Accumulated Other Comprehensive Loss	(63,130		)	(66,403		)	(57,804		)	(60,000		)
Treasury Stock	(317,771		)	(317,771		)	(309,138		)	(317,771		)
Common Shareholders' Equity	11,183,714			11,086,242			11,637,434			11,486,817
Total Capitalization	23,355,276			23,017,701

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	37,039,983		$	36,220,386		$	38,941,007		$	38,241,256

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information)	2018		2017		2019		2018

Operating Revenues	$	2,287,962	$	2,105,135	$	2,415,792	$	2,287,962

Operating Expenses:
Purchased Power, Fuel and Transmission	946,747		753,649		974,882		946,747
Operations and Maintenance	332,549		338,307		335,597		332,549
Depreciation	204,266		186,805		214,948		204,266
Amortization	45,194		24,017		70,961		45,194
Energy Efficiency Programs	134,241		146,158		140,116		134,241
Taxes Other Than Income Taxes	182,433		155,222		184,588		182,433
Total Operating Expenses	1,845,430		1,604,158		1,921,092		1,845,430
Operating Income	442,532		500,977		494,700		442,532
Interest Expense	121,129		103,429		131,734		121,129
Other Income, Net	33,789		21,619		30,985		33,789
Income Before Income Tax Expense	355,192		419,167		393,951		355,192
Income Tax Expense	83,766		157,829		83,393		83,766
Net Income	271,426		261,338		310,558		271,426
Net Income Attributable to Noncontrolling Interests	1,880		1,880		1,880		1,880
Net Income Attributable to Common Shareholders	$	269,546	$	259,458	$	308,678	$	269,546

Basic and Diluted Earnings Per Common Share	$	0.85	$	0.82	$	0.97	$	0.85

Dividends Declared Per Common Share	$	0.51	$	0.48

Weighted Average Common Shares Outstanding:
Basic	317,397,052		317,463,151		317,624,593		317,397,052
Diluted	317,992,999		318,124,536		318,316,082		317,992,999

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017			2019			2018

Net Income	$	271,426		$	261,338		$	310,558		$	271,426
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	724			534			316			724
Changes in Unrealized (Losses)/Gains on Marketable Securities	(444		)	1,645
Changes in Unrealized Gains/(Losses) on Marketable Securities							655			(444		)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	2,993			962			1,225			2,993
Other Comprehensive Income, Net of Tax	3,273			3,141			2,196			3,273
Comprehensive Income Attributable to Noncontrolling Interests	(1,880		)	(1,880		)	(1,880		)	(1,880		)
Comprehensive Income Attributable to Common Shareholders	$	272,819		$	262,599		$	310,874		$	272,819

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)



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



	For the Three Months Ended March 31, 2018
	Common Shares			Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount		Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Common Shareholders' Equity
Balance as of January 1, 2018	316,885,808	$	1,669,392	$	6,239,940		$	3,561,084		$	(66,403	)	$	(317,771	)	$	11,086,242
Net Income							271,426									271,426
Dividends on Common Shares - $0.505 Per Share							(160,027		)							(160,027		)
Dividends on Preferred Stock							(1,880		)							(1,880		)
Long-Term Incentive Plan Activity				(15,320		)										(15,320		)
Other Comprehensive Income										3,273						3,273
Balance as of March 31, 2018	316,885,808	$	1,669,392	$	6,224,620		$	3,670,603		$	(63,130	)	$	(317,771	)	$	11,183,714

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017			2019			2018

Operating Activities:
Net Income	$	271,426		$	261,338		$	310,558		$	271,426
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	204,266			186,805			214,948			204,266
Deferred Income Taxes	88,481			141,398			18,085			88,481
Pension, SERP and PBOP (Income)/Expense, Net	(1,965		)	5,828
Uncollectible Expense							18,565			19,613
Pension, SERP and PBOP Expense/(Income), Net							8,428			(1,965		)
Pension and PBOP Contributions	(171,244		)	(45,700		)	(4,700		)	(171,244		)
Regulatory Overrecoveries, Net	70,457			56,734
Regulatory (Under)/Over Recoveries, Net							(19,232		)	70,457
Amortization	45,194			24,017			70,961			45,194
Other	(54,969		)	(36,176		)	(37,310		)	(74,582		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(156,888		)	(50,251		)	(155,823		)	(156,888		)
Fuel, Materials, Supplies and Inventory	(26,956		)	(33,058		)	(39,063		)	(26,956		)
Taxes Receivable/Accrued, Net	(5,061		)	32,313			126,381			(5,061		)
Accounts Payable	(61,571		)	(57,701		)	(13,556		)	(61,571		)
Other Current Assets and Liabilities, Net	(23,456		)	(40,198		)	(70,242		)	(23,456		)
Net Cash Flows Provided by Operating Activities	177,714			445,349			428,000			177,714

Investing Activities:
Investments in Property, Plant and Equipment	(607,334		)	(523,560		)	(674,694		)	(607,334		)
Proceeds from Sales of Marketable Securities	145,438			154,772			234,497			145,438
Purchases of Marketable Securities	(143,264		)	(149,688		)	(237,794		)	(143,264		)
Proceeds from the Sale of PSNH Generation Assets	130,641			—			—			130,641
Investments in Unconsolidated Affiliates							(249,138		)	(7,340		)
Other Investing Activities	(5,200		)	(16,105		)	4,893			2,140
Net Cash Flows Used in Investing Activities	(479,719		)	(534,581		)	(922,236		)	(479,719		)

Financing Activities:
Cash Dividends on Common Shares	(160,027		)	(150,521		)	(169,757		)	(160,027		)
Cash Dividends on Preferred Stock	(1,880		)	(1,880		)	(1,880		)	(1,880		)
Decrease in Notes Payable	(240,005		)	(173,000		)
Issuance of Treasury Shares							26,109			—
Increase/(Decrease) in Notes Payable							829,430			(240,005		)
Repayment of Rate Reduction Bonds							(30,727		)	—
Issuance of Long-Term Debt	1,150,000			600,000			—			1,150,000
Retirements of Long-Term Debt	(150,218		)	(150,000		)
Retirement of Long-Term Debt							(250,215		)	(150,218		)
Other Financing Activities	(19,140		)	(15,832		)	(9,676		)	(19,140		)
Net Cash Flows Provided by Financing Activities	578,730			108,767			393,284			578,730
Net Increase in Cash, Cash Equivalents and Restricted Cash	276,725			19,535
Cash, Cash Equivalents and Restricted Cash - Beginning of Period	85,890			106,750
Cash, Cash Equivalents and Restricted Cash - End of Period	$	362,615		$	126,285
Net (Decrease)/Increase in Cash and Restricted Cash							(100,952		)	276,725
Cash and Restricted Cash - Beginning of Period							209,324			85,890
Cash and Restricted Cash - End of Period							$	108,372		$	362,615

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2018		As of December 31, 2017		As of March 31, 2019		As of December 31, 2018

ASSETS
Current Assets:
Cash	$	240,217	$	6,028	$	7,496	$	87,721
Receivables, Net	411,437		370,676		443,684		397,026
Accounts Receivable from Affiliated Companies	29,122		28,181		30,363		23,082
Unbilled Revenues	48,763		54,154		51,300		56,971
Materials, Supplies and Inventory	53,637		48,438
Materials and Supplies					52,109		44,529
Regulatory Assets	229,735		200,281		147,712		125,155
Prepaid Property Taxes					41,341		19,555
Prepayments and Other Current Assets	56,413		46,926		20,384		40,724
Total Current Assets	1,069,324		754,684		794,389		794,763

Property, Plant and Equipment, Net	8,406,595		8,271,030		9,065,880		8,909,701

Deferred Debits and Other Assets:
Regulatory Assets	1,499,588		1,444,935		1,496,679		1,505,488
Other Long-Term Assets	171,092		159,597		197,571		199,767
Total Deferred Debits and Other Assets	1,670,680		1,604,532		1,694,250		1,705,255

Total Assets	$	11,146,599	$	10,630,246	$	11,554,519	$	11,409,719

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	—	$	69,500
Long-Term Debt – Current Portion	550,000		300,000		$	—	$	250,000
Accounts Payable	346,676		367,605		347,928		324,983
Accounts Payable to Affiliated Companies	90,481		82,201		94,738		26,452
Obligations to Third Party Suppliers					56,065		56,248
Accrued Taxes					55,693		38,205
Accrued Interest					42,424		38,395
Regulatory Liabilities	66,949		38,967		106,489		109,614
Derivative Liabilities					59,651		55,058
Other Current Liabilities	264,064		234,486		71,461		84,488
Total Current Liabilities	1,318,170		1,092,759		834,449		983,443

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,133,045		1,103,367		1,184,425		1,166,784
Regulatory Liabilities	1,136,361		1,112,136		1,126,279		1,122,157
Derivative Liabilities	415,036		376,918		372,774		379,536
Accrued Pension, SERP and PBOP	266,824		354,469		279,914		282,771
Other Long-Term Liabilities	124,056		128,135		165,307		155,495
Total Deferred Credits and Other Liabilities	3,075,322		3,075,025		3,128,699		3,106,743

Capitalization:
Long-Term Debt	3,003,562		2,759,135		3,265,756		3,004,016

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

Common Stockholder's Equity:
Common Stock	60,352		60,352		60,352		60,352
Capital Surplus, Paid In	2,119,765		2,110,765		2,410,765		2,410,765
Retained Earnings	1,452,919		1,415,741		1,737,980		1,727,899
Accumulated Other Comprehensive Income	309		269		318		301
Common Stockholder's Equity	3,633,345		3,587,127		4,209,415		4,199,317
Total Capitalization	6,753,107		6,462,462

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	11,146,599	$	10,630,246	$	11,554,519	$	11,409,719

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Thousands of Dollars)	2018		2017		2019		2018

Operating Revenues	$	784,983	$	732,310	$	849,246	$	784,983

Operating Expenses:
Purchased Power and Transmission	301,889		244,938		319,833		301,889
Operations and Maintenance	117,292		128,737		130,637		117,292
Depreciation	67,498		59,751		73,289		67,498
Amortization of Regulatory Assets, Net	28,006		12,803		35,671		28,006
Energy Efficiency Programs	22,760		36,591		25,988		22,760
Taxes Other Than Income Taxes	90,300		73,979		92,000		90,300
Total Operating Expenses	627,745		556,799		677,418		627,745
Operating Income	157,238		175,511		171,828		157,238
Interest Expense	36,823		34,964		35,781		36,823
Other Income, Net	6,560		3,267		3,880		6,560
Income Before Income Tax Expense	126,975		143,814		139,927		126,975
Income Tax Expense	28,407		53,606		29,456		28,407
Net Income	$	98,568	$	90,208	$	110,471	$	98,568

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

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017		2019			2018

Net Income	$	98,568		$	90,208	$	110,471		$	98,568
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	52			111		(6		)	52
Changes in Unrealized (Losses)/Gains on Marketable Securities	(12		)	56
Changes in Unrealized Gains/(Losses) on Marketable Securities						23			(12		)
Other Comprehensive Income, Net of Tax	40			167		17			40
Comprehensive Income	$	98,608		$	90,375	$	110,488		$	98,608

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)



	For the Three Months Ended March 31, 2019
	Common Stock			Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount		Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
Balance as of January 1, 2019	6,035,205	$	60,352	$	2,410,765	$	1,727,899		$	301	$	4,199,317
Net Income						110,471					110,471
Dividends on Preferred Stock						(1,390		)			(1,390		)
Dividends on Common Stock						(99,000		)			(99,000		)
Other Comprehensive Income									17		17
Balance as of March 31, 2019	6,035,205	$	60,352	$	2,410,765	$	1,737,980		$	318	$	4,209,415



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

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017			2019			2018

Operating Activities:
Net Income	$	98,568		$	90,208		$	110,471		$	98,568
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	67,498			59,751			73,289			67,498
Deferred Income Taxes	29,109			47,864			15,188			29,109
Uncollectible Expense							4,116			3,912
Pension, SERP, and PBOP Expense, Net							4,063			3,158
Pension Contributions	(82,276		)	(625		)	—			(82,276		)
Regulatory Underrecoveries, Net	(8,878		)	(18,734		)	(54,671		)	(8,878		)
Amortization of Regulatory Assets, Net	28,006			12,803			35,671			28,006
Other	(11,870		)	(1,710		)	(5,848		)	(18,940		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(46,330		)	(1,280		)	(60,506		)	(46,330		)
Taxes Receivable/Accrued, Net	42,460			32,920			41,399			42,460
Accounts Payable	(28,408		)	(16,957		)	75,373			(28,408		)
Other Current Assets and Liabilities, Net	(23,160		)	(30,823		)	(40,274		)	(23,160		)
Net Cash Flows Provided by Operating Activities	64,719			173,417			198,271			64,719

Investing Activities:
Investments in Property, Plant and Equipment	(202,126		)	(181,601		)	(189,423		)	(202,126		)
Other Investing Activities	56			32			59			56
Net Cash Flows Used in Investing Activities	(202,070		)	(181,569		)	(189,364		)	(202,070		)

Financing Activities:
Cash Dividends on Common Stock	(60,000		)	(49,600		)	(99,000		)	(60,000		)
Cash Dividends on Preferred Stock	(1,390		)	(1,390		)	(1,390		)	(1,390		)
Capital Contributions from Eversource Parent	9,000			—			—			9,000
Issuance of Long-Term Debt	500,000			300,000			—			500,000
Retirement of Long-Term Debt	—			(150,000		)	(250,000		)	—
Decrease in Notes Payable to Eversource Parent	(69,500		)	(76,700		)
Increase/(Decrease) in Notes Payable to Eversource Parent							261,600			(69,500		)
Other Financing Activities	(6,539		)	(3,631		)	(326		)	(6,539		)
Net Cash Flows Provided by Financing Activities	371,571			18,679
Net Increase in Cash and Restricted Cash	234,220			10,527
Cash and Restricted Cash- Beginning of Period	9,619			8,403
Net Cash Flows (Used in)/Provided by Financing Activities							(89,116		)	371,571
Net (Decrease)/Increase in Cash and Restricted Cash							(80,209		)	234,220
Cash and Restricted Cash - Beginning of Period							91,613			9,619
Cash and Restricted Cash - End of Period	$	243,839		$	18,930		$	11,404		$	243,839

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018

ASSETS
Current Assets:
Cash and Cash Equivalents	$	9,471		$	1,763
Cash							$	1,769		$	1,606
Receivables, Net	406,599			341,341			400,082			361,296
Accounts Receivable from Affiliated Companies	26,335			40,723			20,097			31,344
Unbilled Revenues	41,213			49,865			31,698			34,518
Materials, Supplies and Inventory	132,943			95,517			160,221			114,202
Regulatory Assets	276,962			333,882			234,662			241,747
Prepayments and Other Current Assets	42,250			24,499			24,643			51,960
Total Current Assets	935,773			887,590			873,172			836,673

Property, Plant and Equipment, Net	8,323,826			8,246,494			8,915,608			8,794,700

Deferred Debits and Other Assets:
Regulatory Assets	1,287,282			1,190,575			1,173,851			1,196,512
Prepaid PBOP	133,650			126,948			139,132			132,810
Other Long-Term Assets	86,898			84,766			134,536			109,764
Total Deferred Debits and Other Assets	1,507,830			1,402,289			1,447,519			1,439,086

Total Assets	$	10,767,429		$	10,536,373		$	11,236,299		$	11,070,459

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	367,000		$	234,000		$	368,430		$	278,500
Notes Payable to Eversource Parent							22,300			—
Long-Term Debt – Current Portion							95,000			—
Accounts Payable	329,558			340,115			306,888			384,398
Accounts Payable to Affiliated Companies	137,132			91,260			115,676			89,636
Obligations to Third Party Suppliers	101,654			88,721			110,742			109,547
Renewable Portfolio Standards Compliance Obligations	139,174			111,524			175,391			139,898
Regulatory Liabilities	89,230			79,562			193,959			190,620
Other Current Liabilities	57,333			79,916			52,156			74,872
Total Current Liabilities	1,221,081			1,025,098			1,440,542			1,267,471

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,297,365			1,275,814			1,305,518			1,294,467
Regulatory Liabilities	1,530,103			1,514,451			1,514,557			1,513,279
Accrued Pension and SERP	80,248			89,995			5,496			14,145
Other Long-Term Liabilities	197,371			198,176			293,794			263,096
Total Deferred Credits and Other Liabilities	3,105,087			3,078,436			3,119,365			3,084,987

Capitalization:
Long-Term Debt	2,943,915			2,943,759			2,850,196			2,944,846

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

Common Stockholder's Equity:
Common Stock	—			—			—			—
Capital Surplus, Paid In	1,595,442			1,502,942			1,653,442			1,633,442
Retained Earnings	1,860,621			1,944,961			2,131,015			2,098,091
Accumulated Other Comprehensive Loss	(1,717		)	(1,823		)	(1,261		)	(1,378		)
Common Stockholder's Equity	3,454,346			3,446,080			3,783,196			3,730,155
Total Capitalization	6,441,261			6,432,839

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	10,767,429		$	10,536,373		$	11,236,299		$	11,070,459

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Thousands of Dollars)	2018		2017		2019		2018

Operating Revenues	$	770,127	$	733,808	$	797,612	$	770,127

Operating Expenses:
Purchased Power and Transmission	332,579		273,852		330,104		332,579
Operations and Maintenance	118,682		115,872		112,963		118,682
Depreciation	70,542		67,218		72,584		70,542
Amortization of Regulatory Assets, Net	6,364		4,489		22,584		6,364
Energy Efficiency Programs	74,793		77,976		76,729		74,793
Taxes Other Than Income Taxes	48,186		37,821		44,822		48,186
Total Operating Expenses	651,146		577,228		659,786		651,146
Operating Income	118,981		156,580		137,826		118,981
Interest Expense	26,464		28,279		27,881		26,464
Other Income, Net	12,601		8,349		11,086		12,601
Income Before Income Tax Expense	105,118		136,650		121,031		105,118
Income Tax Expense	27,969		53,269		27,017		27,969
Net Income	$	77,149	$	83,381	$	94,014	$	77,149

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017			2019		2018

Net Income	$	77,149		$	83,381		$	94,014	$	77,149
Other Comprehensive Income, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	1			(4		)	1		1
Qualified Cash Flow Hedging Instruments	109			109			110		109
Changes in Unrealized (Losses)/Gains on Marketable	(4		)	16
Changes in Unrealized Gains/(Losses) on Marketable Securities							6		(4		)
Other Comprehensive Income, Net of Tax	106			121			117		106
Comprehensive Income	$	77,255		$	83,502		$	94,131	$	77,255

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)



	For the Three Months Ended March 31, 2019
	Common Stock			Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount		Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2019	200	$	—	$	1,633,442	$	2,098,091		$	(1,378	)	$	3,730,155
Net Income						94,014						94,014
Dividends on Preferred Stock						(490		)				(490		)
Dividends on Common Stock						(60,600		)				(60,600		)
Capital Contributions from Eversource Parent				20,000								20,000
Other Comprehensive Income									117			117
Balance as of March 31, 2019	200	$	—	$	1,653,442	$	2,131,015		$	(1,261	)	$	3,783,196



	For the Three Months Ended March 31, 2018
	Common Stock			Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount		Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2018	200	$	—	$	1,502,942	$	1,944,961		$	(1,823	)	$	3,446,080
Net Income						77,149						77,149
Dividends on Preferred Stock						(490		)				(490		)
Dividends on Common Stock						(161,000		)				(161,000		)
Other						1						1
Capital Contributions from Eversource Parent				92,500								92,500
Other Comprehensive Income									106			106
Balance as of March 31, 2018	200	$	—	$	1,595,442	$	1,860,621		$	(1,717	)	$	3,454,346

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017			2019			2018

Operating Activities:
Net Income	$	77,149		$	83,381		$	94,014		$	77,149
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	70,542			67,218			72,584			70,542
Deferred Income Taxes	22,542			45,375			3,722			22,542
Pension, SERP and PBOP Benefits, Net	(9,295		)	(10,548		)
Uncollectible Expense							5,953			7,526
Pension, SERP and PBOP Income, Net							(4,279		)	(9,295		)
Pension and PBOP Contributions							(1,503		)	—
Regulatory Overrecoveries, Net	17,618			3,921			4,329			17,618
Amortization of Regulatory Assets, Net	6,364			4,489			22,584			6,364
Other	(2,204		)	(3,877		)	(8,043		)	(9,730		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(52,949		)	(9,275		)	(29,220		)	(52,949		)
Materials, Supplies and Inventory	(37,427		)	(33,342		)	(46,020		)	(37,427		)
Taxes Receivable/Accrued, Net	(22,698		)	37,566			29,483			(22,698		)
Accounts Payable	43,170			(29,015		)	(18,109		)	43,170
Other Current Assets and Liabilities, Net	23,703			1,251			11,466			23,703
Net Cash Flows Provided by Operating Activities	136,515			157,144			136,961			136,515

Investing Activities:
Investments in Property, Plant and Equipment	(192,036		)	(164,849		)	(208,540		)	(192,036		)
Other Investing Activities	(654		)	(3,608		)	17			(654		)
Net Cash Flows Used in Investing Activities	(192,690		)	(168,457		)	(208,523		)	(192,690		)

Financing Activities:
Cash Dividends on Common Stock	(161,000		)	(56,000		)	(60,600		)	(161,000		)
Cash Dividends on Preferred Stock	(490		)	(490		)	(490		)	(490		)
Capital Contributions from Eversource Parent	92,500			—			20,000			92,500
Increase in Notes Payable to Eversource Parent							22,300			—
Increase in Notes Payable	133,000			68,400			89,930			133,000
Other Financing Activities	(78		)	(38		)	668			(78		)
Net Cash Flows Provided by Financing Activities	63,932			11,872			71,808			63,932
Increase in Cash, Cash Equivalents and Restricted Cash	7,757			559
Cash, Cash Equivalents and Restricted Cash - Beginning of Period	14,708			15,506
Cash, Cash Equivalents and Restricted Cash - End of Period	$	22,465		$	16,065
Increase in Cash and Restricted Cash							246			7,757
Cash and Restricted Cash - Beginning of Period							14,659			14,708
Cash and Restricted Cash - End of Period							$	14,905		$	22,465

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND ~~SUBSIDIARY~~SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018

ASSETS
Current Assets:
Cash	$	2,917		$	900		$	3,961		$	1,439
Receivables, Net	94,179			92,774			102,806			104,854
Accounts Receivable from Affiliated Companies	10,253			5,297			11,520			8,444
Unbilled Revenues	41,444			49,448			43,289			47,145
Taxes Receivable	34,871			5,838			7,441			25,913
Materials, Supplies and Inventory	49,582			40,285			37,361			37,504
Regulatory Assets	122,481			130,134			76,599			67,228
Special Deposits							21,059			47,498
Prepayments and Other Current Assets	15,918			23,093			2,940			17,564
Assets Held for Sale	59,346			219,550
Total Current Assets	430,991			567,319			306,976			357,589

Property, Plant and Equipment, Net	2,693,951			2,642,274			2,920,560			2,880,073

Deferred Debits and Other Assets:
Regulatory Assets	816,194			810,677			855,369			862,288
Other Long-Term Assets	53,656			42,391			29,884			27,406
Total Deferred Debits and Other Assets	869,850			853,068			885,253			889,694

Total Assets	$	3,994,792		$	4,062,661		$	4,112,789		$	4,127,356

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	271,300		$	262,900		$	61,000		$	57,000
Long-Term Debt – Current Portion	110,000			110,000			150,000			150,000
Rate Reduction Bonds – Current Portion							43,210			52,332
Accounts Payable	94,498			128,685			106,398			111,292
Accounts Payable to Affiliated Companies	33,828			24,676			37,976			26,029
Dividends Payable to Eversource Parent	—			150,000
Renewable Portfolio Standards Compliance Obligations	35,447			27,765
Regulatory Liabilities	15,607			6,251			45,655			55,526
Other Current Liabilities	59,876			40,159			55,088			64,046
Total Current Liabilities	620,556			750,436			499,327			516,225

Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	490,487			443,468			489,434			481,221
Regulatory Liabilities	449,588			444,397			429,932			428,069
Accrued Pension, SERP and PBOP	121,414			124,639			122,490			124,457
Other Long-Term Liabilities	34,990			56,689			37,956			36,339
Total Deferred Credits and Other Liabilities	1,096,479			1,069,193			1,079,812			1,070,086

Capitalization:
Long-Term Debt	891,801			892,438			655,294			655,173

Rate Reduction Bonds							561,727			583,331

Common Stockholder's Equity:
Common Stock	—			—			—			—
Capital Surplus, Paid In	843,134			843,134			678,134			678,134
Retained Earnings	546,475			511,382			641,039			627,258
Accumulated Other Comprehensive Loss	(3,653		)	(3,922		)	(2,544		)	(2,851		)
Common Stockholder's Equity	1,385,956			1,350,594			1,316,629			1,302,541
Total Capitalization	2,277,757			2,243,032

Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization	$	3,994,792		$	4,062,661		$	4,112,789		$	4,127,356

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND ~~SUBSIDIARY~~SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Thousands of Dollars)	2018		2017		2019		2018

Operating Revenues	$	267,350	$	253,157	$	276,435	$	267,350

Operating Expenses:
Purchased Power, Fuel and Transmission	109,717		61,747		113,531		109,717
Operations and Maintenance	51,380		63,964		52,630		51,380
Depreciation	23,493		30,735		22,919		23,493
Amortization of Regulatory Assets, Net	5,035		5,445		13,667		5,035
Energy Efficiency Programs	5,157		3,746		6,714		5,157
Taxes Other Than Income Taxes	16,801		20,881		17,311		16,801
Total Operating Expenses	211,583		186,518		226,772		211,583
Operating Income	55,767		66,639		49,663		55,767
Interest Expense	12,772		12,808		14,367		12,772
Other Income, Net	4,749		2,811		7,022		4,749
Income Before Income Tax Expense	47,744		56,642		42,318		47,744
Income Tax Expense	12,651		22,330		9,537		12,651
Net Income	$	35,093	$	34,312	$	32,781	$	35,093

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017		2019		2018

Net Income	$	35,093		$	34,312	$	32,781	$	35,093
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	290			291		269		290
Changes in Unrealized (Losses)/Gains on Marketable Securities	(21		)	97
Changes in Unrealized Gains/(Losses) on Marketable Securities						38		(21		)
Other Comprehensive Income, Net of Tax	269			388		307		269
Comprehensive Income	$	35,362		$	34,700	$	33,088	$	35,362

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND ~~SUBSIDIARY~~SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)



	For the Three Months Ended March 31, 2019
	Common Stock			Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount		Capital Surplus, Paid In		Retained Earnings			Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2019	301	$	—	$	678,134	$	627,258		$	(2,851	)	$	1,302,541
Net Income						32,781						32,781
Dividends on Common Stock						(19,000		)				(19,000		)
Other Comprehensive Income									307			307
Balance as of March 31, 2019	301	$	—	$	678,134	$	641,039		$	(2,544	)	$	1,316,629



	For the Three Months Ended March 31, 2018
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount		Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss			Total Common Stockholder's Equity
Balance as of January 1, 2018	301	$	—	$	843,134	$	511,382	$	(3,922	)	$	1,350,594
Net Income						35,093					35,093
Other Comprehensive Income								269			269
Balance as of March 31, 2018	301	$	—	$	843,134	$	546,475	$	(3,653	)	$	1,385,956

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	2018			2017			2019			2018

Operating Activities:
Net Income	$	35,093		$	34,312		$	32,781		$	35,093
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	23,493			30,735			22,919			23,493
Deferred Income Taxes	43,021			11,290			6,541			43,021
Regulatory Overrecoveries, Net	129			3,507
Regulatory (Under)/Over Recoveries, Net							(26,986		)	129
Amortization of Regulatory Assets, Net	5,035			5,445			13,667			5,035
Other	(15,212		)	(4,405		)	104			(15,212		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(80		)	1,149			1,103			(80		)
Fuel, Materials, Supplies and Inventory	4,854			(3,371		)
Materials, Supplies and Inventory							144			4,854
Taxes Receivable/Accrued, Net	(5,867		)	1,778			17,572			(5,867		)
Accounts Payable	(18,760		)	5,475			58,327			(18,760		)
Other Current Assets and Liabilities, Net	24,543			27,332			6,472			24,543
Net Cash Flows Provided by Operating Activities	96,249			113,247			132,644			96,249

Investing Activities:
Investments in Property, Plant and Equipment	(72,287		)	(75,327		)	(110,926		)	(72,287		)
Proceeds from the Sale of Generation Assets	130,641			—			—			130,641
Other Investing Activities	97			(145		)	102			97
Net Cash Flows Provided by/(Used in) Investing Activities	58,451			(75,472		)
Net Cash Flows (Used in)/Provided by Investing Activities							(110,824		)	58,451

Financing Activities:
Cash Dividends on Common Stock	(150,000		)	(18,500		)	(19,000		)	(150,000		)
Increase/(Decrease) in Notes Payable to Eversource Parent	8,400			(16,000		)
Repayment of Rate Reduction Bonds							(30,727		)	—
Increase in Notes Payable to Eversource Parent							4,000			8,400
Other Financing Activities	(38		)	(112		)	(20		)	(38		)
Net Cash Flows Used in Financing Activities	(141,638		)	(34,612		)	(45,747		)	(141,638		)
Net Increase in Cash and Restricted Cash	13,062			3,163
Net (Decrease)/Increase in Cash and Restricted Cash							(23,927		)	13,062
Cash and Restricted Cash - Beginning of Period	2,191			5,953			52,723			2,191
Cash and Restricted Cash - End of Period	$	15,253		$	9,116		$	28,796		$	15,253

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

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND ~~SUBSIDIARY~~SUBSIDIARIES

COMBINED NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)

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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

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

On December 31, 2017, Western Massachusetts Electric Company ("WMECO") was merged into NSTAR Electric. In accordance with accounting guidance on combinations between entities under common control, the net assets, results of operations and cash flows of WMECO are reflected in the NSTAR Electric financial statements. NSTAR Electric's financial statements for all prior periods presented in this combined Quarterly Report on Form 10-Q have been retrospectively recast as if the merger occurred on the first day of the earliest reporting period.

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 ~~2017~~2018 Form 10-K, which was filed with the SEC on February 26, ~~2018.~~2019. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, and the results of operations, comprehensive income, common shareholders' equity, and cash flows for the three months ended March 31, ~~2018~~2019 and ~~2017.~~2018. The results of operations, comprehensive income, and cash flows for the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 are not necessarily indicative of the results expected for a full year.

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership ~~interest~~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's utility subsidiaries' electric, ~~and~~ natural gas ~~distribution (including generation assets), transmission~~ 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.

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

On December 22, 2017, the Tax Cuts and Jobs Act became law, which amended existing federal tax rules and included numerous provisions that impacted corporations. In particular, this act reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. Our regulated companies have established a reserve in revenue to reflect the difference between the 35 percent federal corporate income tax rate included in rates charged to customers and the 21 percent federal income tax rate. Eversource, CL&P, NSTAR Electric and PSNH's effective tax rate has decreased, as compared to the prior period, as a result of incurring a lower federal income tax expense, which is reflected on the statements of income as of March 31, 2018. See Note 15, "Revenues," for further information on the amounts reserved in revenues.

B. Accounting Standards

Accounting Standards Issued but Not Yet Effective: In ~~February~~June 2016, the FASB issued Accounting Standards Update ~~("ASU"~~(“ASU”) ~~2016-02,~~2016-13, ~~Leases~~Financial Instruments - Credit Losses (Topic 326), , which ~~changes existing lease accounting~~provides a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Under the new guidance, ~~and~~immediate recognition of all credit losses expected over the life of a financial instrument is ~~required to be applied in~~required. The new standard also revises the ~~first quarter of 2019, with earlier application permitted.~~other-than-temporary impairment model for available-for-sale debt securities. The ~~ASU lease criteria are required to be applied to leases and lease renewals entered into~~standard is effective January 1, ~~2019. The Company will implement the ASU in the first quarter of 2019. The requirements of the ASU include balance sheet recognition of leases previously deemed~~2020, and requires a modified retrospective transition approach through a cumulative-effect adjustment to ~~be operating leases, and additional disclosure requirements.~~retained earnings. The Company is inassessing the ~~process~~impacts of ~~evaluating what impact~~this standard on the ~~ASU will have~~accounting for credit losses on its financial statements. As of December 31, 2017, Eversource’s total future undiscounted minimum rental payments, excluding executory costs, under long-term noncancelable operating and capital leases were less than $100 million.instruments, including accounts receivable.

Accounting Standards Recently Adopted: On January 1, ~~2018, Eversource, CL&P, NSTAR Electric and PSNH~~2019, the Company adopted ASU ~~2014-09,~~2016-02, ~~Revenue from Contracts with Customers~~Leases (Topic 842), which amended existing lease accounting guidance. The Company applied the Topic 842 lease criteria to new leases and lease renewals entered into effective on or after January 1, 2019. The ASU required balance sheet recognition of leases deemed to be operating leases as well as additional disclosure requirements. The recognition, measurement and presentation of expenses and cash flows were not significantly changed.

The Company also adopted the modified retrospective transition method allowed in ASU 2018-11, Leases (Topic 842) - Targeted Improvements, which ~~amended existing revenue recognition guidance, using~~allowed the ~~modified retrospective method (cumulatively at~~Company to adopt the ~~date~~new leases standard as of ~~initial application) applying it only to contracts that were not complete at~~ January 1, ~~2018. Under this method of adoption,~~2019, with prior ~~year reported results were not restated.~~periods presented in the financial statements continuing to follow existing lease accounting guidance under Topic 840 (Leases) in the accounting literature. Implementation of ~~the~~ ASU ~~did not have a material~~2018-11 had no effect on retained earnings, and the ~~results~~requirements of ~~operations,~~the new lease standard (Topic 842) are reflected in the 2019 financial ~~position or cash flows of Eversource, CL&P, NSTAR Electric or PSNH. See Note 15, "Revenues,"for further information~~.statements and footnotes.

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

The Company determined the impact the ASUs had on its financial statements by reviewing its lease population and identifying lease data needed for the disclosure requirements. The Company implemented a new ~~revenue guidance, as compared~~lease accounting system in 2019 to ensure ongoing compliance with the ~~previously existing guidance. As a result~~ASU’s requirements. Adoption of ~~applying guidance on the unit of account under~~ the new standard purchases of power from and sales of power to ISO-New England are now accounted for net by the hour, rather than net by the month. This change increased Operating Revenues and Purchased Power, Fuel and Transmission by $19 million for the three months ended March 31, 2018, with no impact on net income.

~~On January 1, 2018, Eversource adopted ASU 2016-01,~~ ~~Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities~~. The ASU removed the available-for-sale designation for equity securities, whereby changes in fair value were previously recorded in accumulated other comprehensive income within shareholders' equity, and required changes in fair value of all equity securities to be recorded in earnings effective January 1, 2018. There was no cumulative effect of adoption. For the three months ended March 31, 2018, unrealized losses recorded in Other Income, Net were $0.7 million. For further information, see Note 5, "Marketable Securities," to the financial statements.

~~On January 1, 2018, Eversource, CL&P, NSTAR Electric and PSNH adopted ASU 2017-07,~~ ~~Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost~~. The ASU required separate presentation of service cost from other components of net pension and PBOP costs, with the other components presented as non-operating income and not subject to capitalization. The ASU has been applied retrospectively for the separate presentationresulted in the ~~income statement~~recording of ~~service costs~~operating lease liabilities and ~~other components and prospectively in~~right-of-use assets on the balance sheet ~~for the capitalization~~upon transition at January 1, 2019 of only the service cost component. As of March 31, 2018, the non-service cost components of net pension, SERP and PBOP costs that were not capitalized in plant were recorded as an increase to regulatory liabilities of approximately $10 million, as these amounts continue to be included in rates. See Note 1F, "Summary of Significant Accounting Policies - Other Income, Net," to the financial statements for the portion of pension and PBOP costs that are presented as non-operating income for the three months ended March 31, 2018 and 2017. The March 31, 2017 amounts, which were previously presented within Operations and Maintenance expense on the statements of income, totaled $8.0$58.0 million at Eversource, ~~$0.5 million at CL&P, $5.0~~$25.3 million at NSTAR Electric, ~~and $1.6~~$0.6 million at ~~PSNH,~~CL&P, and $0.6 million at PSNH. Implementation of the new guidance did not have ~~been retrospectively presented to Other Income, Net.~~

~~On January 1, 2018, Eversource, CL&P, NSTAR Electric and PSNH adopted two accounting standards relating to the statement of cash flows; ASU 2016-15,~~ ~~Classification of Certain Cash Receipts and Cash Payments,~~ ~~and ASU 2016-18,~~ ~~Restricted Cash.~~ As a result of implementing ASU 2016-15, dividends from equity method investments of $6.2 million and $4.8 million in the first quarter of 2018 and 2017, respectively, are presented in operating activities at Eversource, for which the 2017 amounts were previously classified in investing activities. ASU 2016-18 required that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Both standards were applied retrospectively, as required, and neither had a materialan impact on ~~Eversource's, CL&P's, NSTAR Electric's~~each company’s results of operations or ~~PSNH's statements of~~ cash flows. See Note 1H, "Summary of Significant Accounting Policies - Supplemental Cash Flow Information," to the financial statements for a reconciliation of cash and cash equivalents as reported on the balance sheet to the statement of cash flows, which includes amounts described as restricted cash and restricted cash equivalents.

C. Northern Pass

Northern Pass is Eversource's planned 1,090 MW HVDC transmission line that will interconnect from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire. As of March 31, ~~2018,~~2019, our capitalized Northern Pass project costs were approximately ~~$289~~$311 million.

~~In March~~On January 25, 2018, ~~the Massachusetts EDCs terminated contract negotiations with and conditional selection of~~ Northern Pass ~~under~~was selected as the winning bidder in the Massachusetts Clean Energy ~~RFP, and~~Request for Proposals ("RFP"). In March 2018, the New Hampshire Site Evaluation Committee ("NHSEC") issued a written decision denying Northern Pass’ siting ~~application. NPT reviewed~~application after which the Massachusetts EDCs revoked the selection of, and terminated contract negotiations with, Northern Pass under the Massachusetts Clean Energy RFP. On July 12, 2018, the NHSEC issued a written decision ~~and filed a~~denying Northern Pass’ April 2018 motion for ~~rehearing with~~rehearing. On October 12, 2018, the New Hampshire Supreme Court accepted an appeal filed by NPT, which alleged that the NHSEC failed to follow applicable law in its review of the project. Subsequently, the NHSEC transmitted the record of its proceedings to the New Hampshire Supreme Court on December 11, 2018. Briefing of the appeal began on February 4, 2019 and concluded on April ~~27, 2018.~~10, 2019. The New Hampshire Supreme Court will hear oral arguments on May 15, 2019 and a decision is expected later this year. NPT intends to continue to pursue NHSEC ~~denial of Northern Pass' siting application caused us~~approval to ~~review~~construct the recoverability of our Northern Pass project costs. In this recoverability review, we estimated undiscounted expected project cash flows and compared the result to our estimated project costs to determine whether the recorded amount is recoverable. Our undiscounted cash flows were substantially in excess of our estimated project costs. We completed this analysis and concluded that our project costs are recoverable based on our expectation that the Northern Pass project remains probable of being placed in service.

project.

Consistent with Eversource’s and HQ’s long-term relationship to bring clean energy into New England, Eversource and HQ remain committed to Northern Pass and the many benefits this project will bring to our customers and the region. We continue to believe that our project costs are recoverable based on our expectation that the Northern Pass project remains probable of being placed in service. If, as a result of future events and changes in circumstances, a ~~new~~future recoverability review were to conclude that our project costs are not recoverable, then we would reduce Northern Pass' project costs to the estimated fair value, which could result in most of our ~~$289~~$311 million of capitalized project costs being ~~written off.~~impaired. Such ~~a write off~~an impairment could have a material adverse effect on our financial position and results of operations.

D. Provision for Uncollectible Accounts

Eversource, including CL&P, NSTAR Electric and PSNH, presents its receivables at estimated net realizable value by maintaining a provision for uncollectible accounts. This provision is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category. The estimate is based upon historical collection and write-off experience and management's assessment of collectability from customers. Management continuously assesses the collectability of receivables and adjusts collectability estimates based on actual experience. Receivable balances are written off against the provision for uncollectible accounts when the customer accounts are terminated and these balances are deemed to be uncollectible.

The PURA allows CL&P and Yankee Gas to accelerate the recovery of accounts receivable balances attributable to qualified customers under financial or medical duress (uncollectible hardship accounts receivable) outstanding for greater than 180 days and 90 days, respectively. The DPU allows NSTAR Electric and NSTAR Gas to recover in rates, amounts associated with certain uncollectible hardship accounts receivable. These uncollectible hardship customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets.

The total provision for ~~both~~ uncollectible accounts ~~and for uncollectible hardship accounts (the uncollectible hardship balance is included in the total provision)~~ is included in Receivables, Net on the balance ~~sheets, and~~sheets. The provision for uncollectible hardship accounts is included in the total uncollectible provision balance. The provision balances are as follows:


	Total Provision for Uncollectible Accounts				Uncollectible Hardship				Total Provision for Uncollectible Accounts				Provision for Uncollectible Hardship Accounts
(Millions of Dollars)	As of March 31, 2018		As of December 31, 2017		As of March 31, 2018		As of December 31, 2017		As of March 31, 2019		As of December 31, 2018		As of March 31, 2019		As of December 31, 2018
Eversource	$	207.7	$	195.7	$	123.7	$	122.5	$	223.3	$	212.7	$	134.6	$	131.5
CL&P	82.8		78.9		67.7		65.5		93.0		88.0		75.2		71.9
NSTAR Electric	72.6		69.7		38.5		40.3		74.8		74.5		40.9		42.5
PSNH	10.9		10.5		—		—		11.0		11.1		—		—

~~In accordance with new revenue accounting guidance, bad debt~~

Uncollectible expense associated with customers' accounts receivable included in Operations and Maintenance expense on the statements of income is ~~presented~~ as follows:


	For the Three Months Ended				For the Three Months Ended
(Millions of Dollars)	March 31, 2018		March 31, 2017		March 31, 2019		March 31, 2018
Eversource	$	19.6	$	15.9	$	18.6	$	19.6
CL&P	3.9		2.8		4.1		3.9
NSTAR Electric	7.5		6.5		6.0		7.5
PSNH	1.7		1.7		1.7		1.7

E. 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 and AROs, and the estimated fair value of preferred stock, long-term debt and ~~long-term debt.~~RRBs.

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

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

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

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

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

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

F. Investments in Unconsolidated Affiliates

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

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

F.G. Other Income, Net

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


	For the Three Months Ended																		For the Three Months Ended
	March 31, 2018									March 31, 2017									March 31, 2019										March 31, 2018
(Millions of Dollars)	Eversource		CL&P			NSTAR Electric		PSNH		Eversource		CL&P			NSTAR Electric		PSNH		Eversource		CL&P			NSTAR Electric			PSNH		Eversource		CL&P			NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components ⁽¹⁾	$	15.2	$	3.0		$	8.4	$	2.3	$	8.0	$	0.5		$	5.0	$	1.6
Pension, SERP and PBOP Non-Service Income Components																			$	7.4	$	(0.6	)	$	7.0		$	0.5	$	15.2	$	3.0		$	8.4	$	2.3
AFUDC Equity	9.7		2.8			3.4		—		6.7		2.0			1.9		—		10.9		2.6			4.0			0.2		9.7		2.8			3.4		—
Equity in Earnings	4.6		—			—		—		4.6		—			0.1		—		5.0		—			0.2			—		4.6		—			—		—
Investment Income/(Loss)	0.7		(0.1		)	0.6		—		0.7		(0.3		)	1.2		0.7		1.2		1.7			(0.3		)	0.4		0.7		(0.1		)	0.6		—
Interest Income(1)	3.5		0.9			0.2		2.4		1.6		1.1			0.1		0.5		6.5		0.4			0.2			5.9		3.5		0.9			0.2		2.4
Other	0.1		—			—		—		—		—			—		—		—		(0.2		)	—			—		0.1		—			—		—
Total Other Income, Net ⁽¹⁾	$	33.8	$	6.6		$	12.6	$	4.7	$	21.6	$	3.3		$	8.3	$	2.8	$	31.0	$	3.9		$	11.1		$	7.0	$	33.8	$	6.6		$	12.6	$	4.7

⁽¹⁾

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

As a result of the adoption of new accounting guidance, the non-service related components of pension, SERP and PBOP benefit costs are presented as non-operating income and recorded in Other Income, Net on the statements of income. The 2017 amounts, which were previously presented within Operations and Maintenance expense on the statements of income, have been retrospectively presented to Other Income, Net for the three months ended March 31, 2017. Eversource elected the practical expedient in the accounting guidance that allows the Company to use the amounts disclosed in its Pension Benefits and Postretirement Benefits Other Than Pension footnote for the prior period presentations as the estimation basis for applying the retrospective presentation requirements.

H. 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 ~~shown~~recorded separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of income as follows:


	For the Three Months Ended				For the Three Months Ended
(Millions of Dollars)	March 31, 2018		March 31, 2017		March 31, 2019		March 31, 2018
Eversource	$	43.4	$	42.2	$	45.0	$	43.4
CL&P	35.6		33.9		36.2		35.6

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.

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

H.I. Supplemental Cash Flow Information

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


(Millions of Dollars)	As of March 31, 2018		As of March 31, 2017		As of March 31, 2019		As of March 31, 2018
Eversource	$	274.4	$	220.5	$	336.3	$	274.4
CL&P	117.7		104.2		121.9		117.7
NSTAR Electric	59.5		49.4		83.2		59.5
PSNH	36.0		28.7		30.4		36.0

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


	As of March 31, 2018								As of December 31, 2017								As of March 31, 2019								As of December 31, 2018
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash and Cash Equivalents as reported on the Balance Sheets	$	303.8	$	240.2	$	9.5	$	2.9	$	38.2	$	6.0	$	1.8	$	0.9
Cash as reported on the Balance Sheets																	$	35.1	$	7.5	$	1.8	$	4.0	$	108.1	$	87.7	$	1.6	$	1.4
Restricted cash included in:
Prepayments and Other Current Assets	35.5		3.1		12.9		11.6		24.4		3.1		12.8		0.5		45.9		3.6		13.0		21.1		72.1		3.5		13.0		47.5
Marketable Securities	23.3		0.5		0.1		0.8		23.3		0.5		0.1		0.8		24.2		0.3		0.1		0.5		25.9		0.4		0.1		0.6
Cash, Cash Equivalents, and Restricted Cash reported on the Statements of Cash Flows	$	362.6	$	243.8	$	22.5	$	15.3	$	85.9	$	9.6	$	14.7	$	2.2
Other Long-Term Assets																	3.2		—		—		3.2		3.2		—		—		3.2
Cash and Restricted Cash reported on the Statements of Cash Flows																	$	108.4	$	11.4	$	14.9	$	28.8	$	209.3	$	91.6	$	14.7	$	52.7

Restricted cash included in Prepayments and Other Current Assets ~~shown above,~~and Other Long-Term Assets primarily represents cash collections related to the PSNH RRB customer charges that are held in trust, and required ISO-NE cash deposits. Restricted cash included in Marketable Securities ~~shown above,~~ 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 ~~removal obligations of their nuclear fuel~~ storage ~~facilities.~~facilities obligations.

2. REGULATORY ACCOUNTING

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

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

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

Eversource As of March 31, 2018 As of December 31, 2017
(Millions of Dollars)
Benefit Costs $ 2,033.5
$ 2,068.8
Income Taxes, Net 727.1
768.9
Deferred Costs from Generation Asset Sale 539.6
516.1
Storm Restoration Costs 544.4
404.8
Regulatory Tracker Mechanisms 461.1
509.9
Derivative Liabilities 388.0
367.2
Goodwill-related 361.0
365.2
Asset Retirement Obligations 88.9
101.0
Other Regulatory Assets 195.1
137.4
Total Regulatory Assets 5,338.7
5,239.3
Less: Current Portion 683.2
741.9
Total Long-Term Regulatory Assets $ 4,655.5
$ 4,497.4


	As of March 31, 2018						As of December 31, 2017						As of March 31, 2019								As of December 31, 2018
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Benefit Costs	$	460.6	$	549.9	$	208.6	$	469.2	$	560.7	$	212.3	$	1,878.7	$	416.0	$	534.9	$	165.8	$	1,914.8	$	424.7	$	544.4	$	169.6
Income Taxes, Net	451.8		115.6		20.5		453.8		113.2		21.7		730.9		454.3		106.1		8.0		728.6		454.4		105.9		8.3
Deferred Costs from Generation Asset Sale	—		—		539.6		—		—		516.1
Storm Restoration Costs	254.4		246.4		43.6		216.7		146.6		41.5
Securitized Stranded Costs													597.7		—		—		597.7		608.4		—		—		608.4
Storm Restoration Costs, Net													579.0		307.4		204.4		67.2		576.0		302.6		212.9		60.5
Regulatory Tracker Mechanisms	118.0		221.4		107.7		85.3		273.0		116.4		317.7		54.4		160.2		78.0		316.0		33.2		169.1		67.3
Derivative Liabilities	386.5		—		—		362.3		—		—		353.5		353.1		—		—		356.5		356.5		—		—
Goodwill-related	—		310.0		—		—		313.6		—		344.2		—		295.5		—		348.4		—		299.1		—
Asset Retirement Obligations	30.8		39.8		3.4		30.3		39.0		17.0		92.8		32.8		44.9		3.4		89.2		32.3		42.2		3.3
Other Regulatory Assets	27.2		81.2		15.3		27.6		78.4		15.8		202.2		26.4		62.6		11.9		208.0		27.0		64.6		12.1
Total Regulatory Assets	1,729.3		1,564.3		938.7		1,645.2		1,524.5		940.8		5,096.7		1,644.4		1,408.6		932.0		5,145.9		1,630.7		1,438.2		929.5
Less: Current Portion	229.7		277.0		122.5		200.3		333.9		130.1		507.3		147.7		234.7		76.6		514.8		125.2		241.7		67.2
Total Long-Term Regulatory Assets	$	1,499.6	$	1,287.3	$	816.2	$	1,444.9	$	1,190.6	$	810.7	$	4,589.4	$	1,496.7	$	1,173.9	$	855.4	$	4,631.1	$	1,505.5	$	1,196.5	$	862.3

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

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

Regulatory Costs in Long-Term Assets: Eversource's regulated companies had ~~$123.3~~$129.5 million (including ~~$21.4~~$41.9 million for CL&P, ~~$43.6~~$52.8 million for NSTAR Electric and ~~$38.7~~$13.9 million for PSNH) and ~~$105.8~~$122.9 million (including ~~$18.2~~$42.1 million for CL&P, ~~$42.7~~$49.3 million for NSTAR Electric and ~~$27.2~~$12.2 million for PSNH) of additional regulatory costs as of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, 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.

~~Storms:~~ In March 2018, several significant storms caused extensive damage to our electric distribution systems and significant customer outages across all three states. A storm must meet certain criteria to qualify as a major storm with the criteria specific to each state jurisdiction and utility company. Once a storm qualifies as a major storm, all qualifying expenses incurred during storm restoration efforts are deferred and recovered from customers. Costs for storms that do not meet this criteria are not separately recoverable from customers and are expensed as incurred. These March 2018 storms resulted in deferred storm restoration costs of approximately $156 million ($52 million for CL&P, $100 million for NSTAR Electric, and $4 million for PSNH). Management believes the storm restoration costs were prudent and meet the criteria for specific cost recovery in Connecticut, Massachusetts and New Hampshire, and that recovery from customers is probable through the applicable regulatory recovery process.

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


Eversource	As of March 31, 2018		As of December 31, 2017
	As of March 31, 2018		As of December 31, 2017		As of March 31, 2019								As of December 31, 2018
(Millions of Dollars)	As of March 31, 2018		As of December 31, 2017		Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Excess ADIT due to Tax Cuts and Jobs Act	As of March 31, 2018		As of December 31, 2017
EDIT due to Tax Cuts and Jobs Act					$	2,871.4	$	1,030.7	$	1,096.7	$	394.6	$	2,883.0	$	1,031.0	$	1,103.7	$	396.4
Cost of Removal	522.8		502.1		535.0		46.2		313.4		22.1		521.0		39.9		307.1		22.1
Benefit Costs	128.0		132.3		87.2		—		73.6		—		91.2		—		76.9		—
Regulatory Tracker Mechanisms	216.8		136.7		332.5		79.5		166.7		39.9		309.0		89.5		163.7		48.3
AFUDC - Transmission	67.6		67.1		71.4		47.1		24.3		—		70.7		47.4		23.3		—
Revenue Subject to Refund ⁽¹⁾	26.0		—
Revenue Subject to Refund due to Tax Cuts and Jobs Act					27.0		—		—		15.8		24.6		—		—		12.6
Other Regulatory Liabilities	52.6		45.2		88.3		29.3		33.9		3.2		80.2		24.0		29.2		4.2
Total Regulatory Liabilities	3,909.7		3,765.4		4,012.8		1,232.8		1,708.6		475.6		3,979.7		1,231.8		1,703.9		483.6
Less: Current Portion	206.0		128.1		385.4		106.5		194.0		45.7		370.2		109.6		190.6		55.5
Total Long-Term Regulatory Liabilities	$	3,703.7	$	3,637.3	$	3,627.4	$	1,126.3	$	1,514.6	$	429.9	$	3,609.5	$	1,122.2	$	1,513.3	$	428.1

As of March 31, 2018 As of December 31, 2017
(Millions of Dollars) CL&P
NSTAR
Electric
PSNH CL&P
NSTAR
Electric
PSNH
Excess ADIT due to Tax Cuts and Jobs Act $ 1,031.6
$ 1,091.1
$ 405.1
$ 1,031.6
$ 1,087.9
$ 405.1
Cost of Removal 34.4
298.5
39.0
23.2
293.8
37.9
Benefit Costs —
109.0
—
—
112.6
—
Regulatory Tracker Mechanisms 55.9
89.2
15.1
34.6
77.8
5.0
AFUDC - Transmission 48.5
19.1
—
48.8
18.3
—
Revenue Subject to Refund ⁽¹⁾
12.5
3.7
3.1
—
—
—
Other Regulatory Liabilities 20.4
8.7
2.9
12.9
3.7
2.7
Total Regulatory Liabilities 1,203.3

1,619.3

465.2

1,151.1

1,594.1

450.7
Less: Current Portion 66.9
89.2
15.6
39.0
79.6
6.3
Total Long-Term Regulatory Liabilities $ 1,136.4

$ 1,530.1

$ 449.6

$ 1,112.1

$ 1,514.5

$ 444.4

~~(1)~~

The regulatory liability balance represents a reserve established to reflect the difference between the 35 percent federal corporate income tax rate included in rates charged to customers and the 21 percent federal income tax rate, effective January 1, 2018 as a result of the Tax Cuts and Jobs Act. Effective February 1, 2018, NSTAR Electric's base rates charged to customers have been adjusted to reflect the new federal income tax rate.

3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

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


Eversource	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018
(Millions of Dollars)
Distribution - Electric	$	14,511.0		$	14,410.5		$	15,245.9		$	15,071.1
Distribution - Natural Gas	3,273.2			3,244.2			3,635.6			3,546.2
Transmission - Electric	9,420.9			9,270.9			10,251.1			10,153.9
Distribution - Water	1,556.4			1,558.4			1,649.5			1,639.8
Generation and Solar ⁽¹⁾	36.2			36.2
Solar							169.9			164.1
Utility	28,797.7			28,520.2			30,952.0			30,575.1
Other ⁽²⁾⁽¹⁾	698.4			693.7			798.3			778.6
Property, Plant and Equipment, Gross	29,496.1			29,213.9			31,750.3			31,353.7
Less: Accumulated Depreciation
Utility	(6,927.5		)	(6,846.9		)	(7,229.5		)	(7,126.2		)
Other	(300.0		)	(286.9		)	(348.7		)	(336.7		)
Total Accumulated Depreciation	(7,227.5		)	(7,133.8		)	(7,578.2		)	(7,462.9		)
Property, Plant and Equipment, Net	22,268.6			22,080.1			24,172.1			23,890.8
Construction Work in Progress	1,690.1			1,537.4			1,860.7			1,719.6
Total Property, Plant and Equipment, Net	$	23,958.7		$	23,617.5		$	26,032.8		$	25,610.4


	As of March 31, 2018									As of December 31, 2017									As of March 31, 2019									As of December 31, 2018
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Distribution	$	5,939.9		$	6,532.5		$	2,078.9		$	5,888.3		$	6,479.0		$	2,083.4
Transmission	4,322.6			3,842.7			1,207.1			4,239.9			3,821.2			1,161.3
Generation and Solar ⁽¹⁾	—			36.2			—			—			36.2			—
Distribution - Electric																			$	6,255.8		$	6,828.5		$	2,201.8		$	6,176.4		$	6,756.4		$	2,178.6
Transmission - Electric																			4,746.4			4,085.6			1,370.2			4,700.5			4,065.9			1,338.7
Solar																			—			169.9			—			—			164.1			—
Property, Plant and Equipment, Gross	10,262.5			10,411.4			3,286.0			10,128.2			10,336.4			3,244.7			11,002.2			11,084.0			3,572.0			10,876.9			10,986.4			3,517.3
Less: Accumulated Depreciation	(2,274.4		)	(2,599.3		)	(734.9		)	(2,239.0		)	(2,550.2		)	(751.8		)	(2,328.0		)	(2,749.9		)	(789.3		)	(2,302.6		)	(2,702.0		)	(772.9		)
Property, Plant and Equipment, Net	7,988.1			7,812.1			2,551.1			7,889.2			7,786.2			2,492.9			8,674.2			8,334.1			2,782.7			8,574.3			8,284.4			2,744.4
Construction Work in Progress	418.5			511.7			142.9			381.8			460.3			149.4			391.7			581.5			137.9			335.4			510.3			135.7
Total Property, Plant and Equipment, Net	$	8,406.6		$	8,323.8		$	2,694.0		$	8,271.0		$	8,246.5		$	2,642.3		$	9,065.9		$	8,915.6		$	2,920.6		$	8,909.7		$	8,794.7		$	2,880.1

⁽¹⁾

On January 10, 2018, PSNH completed the sale of its thermal generation assets, pursuant to an agreement dated October 11, 2017. PSNH expects to complete the sale of its hydroelectric generation assets, pursuant to the agreement dated October 11, 2017, in the second quarter of 2018. As of March 31, 2018 and December 31, 2017, PSNH has classified its generation assets as held for sale. See Note 9, "Assets Held for Sale," for further information.


⁽²⁾	These assets are primarily comprised of building improvements, computer software, hardware and equipment at Eversource Service.

4. DERIVATIVE INSTRUMENTS

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

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

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

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


		As of March 31, 2018									As of December 31, 2017										As of March 31, 2019									As of December 31, 2018
(Millions of Dollars)	Fair Value Hierarchy	Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative			Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative			Fair Value Hierarchy	Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative			Commodity Supply and Price Risk Management			Netting ⁽¹⁾			Net Amount Recorded as a Derivative
Current Derivative Assets:
CL&P	Level 3	$	8.5		$	(6.5	)	$	2.0		$	9.5		$	(7.1	)	$	2.4		Level 3	$	10.4		$	(1.9	)	$	8.5		$	9.6		$	(3.4	)	$	6.2
Other																				Level 2	—			—			—			1.5			(0.9		)	0.6
Long-Term Derivative Assets:
CL&P	Level 3	80.2			(4.1		)	76.1			71.9			(5.3		)	66.6			Level 3	73.1			(2.2		)	70.9			74.2			(2.3		)	71.9
Current Derivative Liabilities:
Eversource	Level 2	(1.3		)	0.2			(1.1		)	(4.5		)	—			(4.5		)
CL&P	Level 3	(49.6		)	—			(49.6		)	(54.4		)	—			(54.4		)	Level 3	(59.7		)	—			(59.7		)	(55.1		)	—			(55.1		)
Other																				Level 2	(0.4		)	0.2			(0.2		)	—			—			—
Long-Term Derivative Liabilities:
Eversource	Level 2	(0.4		)	—			(0.4		)	(0.4		)	—			(0.4		)
CL&P	Level 3	(415.0		)	—			(415.0		)	(376.9		)	—			(376.9		)	Level 3	(372.8		)	—			(372.8		)	(379.5		)	—			(379.5		)
Other																				Level 2	(0.2		)	—			(0.2		)	—			—			—


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

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

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

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

As of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, Eversource had New York Mercantile Exchange ("NYMEX") financial contracts for natural gas futures in order to reduce variability associated with the ~~purchase~~ price of ~~5.9~~6.2 million and ~~9.5~~12.5 million MMBtu of natural gas, respectively.

For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, there were losses of ~~$36.1~~$5.2 million and ~~$26.5~~$36.1 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts.

Fair Value Measurements of Derivative Instruments

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

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

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

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


	As of March 31, 2018						As of December 31, 2017						As of March 31, 2019						As of December 31, 2018
CL&P	Range					Period Covered	Range					Period Covered	Range					Period Covered	Range					Period Covered
Capacity Prices	$	4.30	—	5.99	per kW-Month	2021 - 2026	$	5.00	—	8.70	per kW-Month	2021 - 2026	$	4.30	—	7.34	per kW-Month	2023 - 2026	$	4.30	—	7.44	per kW-Month	2022 - 2026
Forward Reserve	$	0.95	—	1.00	per kW-Month	2018 - 2024	$	1.00	—	2.00	per kW-Month	2018 - 2024	0.75		—	1.78	per kW-Month	2019 - 2024	0.75		—	1.78	per kW-Month	2019 - 2024

Exit price premiums of 33.7 percent through 1615.1 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.

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

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


CL&P	For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Millions of Dollars)	2018			2017			2019			2018
Derivatives, Net:
Fair Value as of Beginning of Period	$	(362.3	)	$	(420.5	)	$	(356.5	)	$	(362.3	)
Net Realized/Unrealized Losses Included in Regulatory Assets and Liabilities	(36.9		)	(14.6		)
Net Realized/Unrealized Losses Included in Regulatory Assets							(5.3		)	(36.9		)
Settlements	12.7			21.6			8.7			12.7
Fair Value as of End of Period	$	(386.5	)	$	(413.5	)	$	(353.1	)	$	(386.5	)

5. MARKETABLE SECURITIES

Eversource ~~maintains trusts~~holds marketable securities that ~~hold marketable securities~~are primarily used to fund certain non-qualified executive benefits. ~~These~~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: ~~In accordance with new accounting guidance, unrealized~~Unrealized gains and losses on ~~the~~ 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 ~~subject to this guidance~~ as of March 31, ~~2018~~2019 and December 31, ~~2017~~2018 was ~~approximately $50 million.~~$49.6 million and $44.0 million, respectively. For the three months ended March 31, 2019 and 2018, there were unrealized gains of $1.0 million and unrealized losses of $0.7 million, respectively, recorded in Other Income, Net related to these equity securities.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear ~~decommissioning~~fuel trusts, which had fair values of ~~$267.3~~$166.6 million and ~~$263.8~~$200.0 million as of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, respectively. Unrealized gains and losses for these spent nuclear ~~decommissioning~~fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.

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


	As of March 31, 2018									As of December 31, 2017									As of March 31, 2019									As of December 31, 2018
Eversource (Millions of Dollars)	Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses			Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses			Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses			Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses			Fair Value
Debt Securities	$	282.1	$	0.8	$	(3.3	)	$	279.6	$	284.9	$	3.2	$	(1.1	)	$	287.0	$	212.3	$	0.9	$	(0.9	)	$	212.3	$	190.0	$	0.4	$	(4.0	)	$	186.4

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear ~~decommissioning~~fuel trusts in the amounts of ~~$235.7~~$170.7 million and ~~$242.3~~$143.9 million as of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, 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. There have been no significant unrealized losses, other-than-temporary impairments, or credit losses for the three months ended March 31, ~~2018 or 2017.~~2019 and 2018. Factors considered in determining whether a credit loss exists include the duration and severity of the impairment, adverse conditions specifically affecting the issuer, and the payment history, ratings and rating changes of the security. For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated.

As of March 31, ~~2018,~~2019, the contractual maturities of available-for-sale debt securities were as follows:


Eversource (Millions of Dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than one year⁽¹⁾	$	36.0	$	35.9	$	29.7	$	29.6
One to five years	44.6		45.1		48.5		48.5
Six to ten years	63.9		63.3		39.0		39.4
Greater than ten years	137.6		135.3		95.1		94.8
Total Debt Securities	$	282.1	$	279.6	$	212.3	$	212.3


⁽¹⁾	Amounts in the Less than one year category include securities in the CYAPC and YAEC spent nuclear ~~decommissioning~~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 ~~non-qualified~~ 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 ~~decommissioning~~fuel trusts to compute the realized gains and losses on the sale of marketable securities.

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


Eversource (Millions of Dollars)	As of March 31, 2018		As of December 31, 2017		As of March 31, 2019		As of December 31, 2018
Level 1:
Mutual Funds and Equities	$	317.3	$	313.8	$	216.2	$	244.0
Money Market Funds	23.3		23.3		24.2		25.9
Total Level 1	$	340.6	$	337.1	$	240.4	$	269.9
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	68.0	$	70.2	$	104.3	$	79.6
Corporate Debt Securities	43.7		50.9		44.7		39.5
Asset-Backed Debt Securities	20.7		21.2		13.9		14.0
Municipal Bonds	114.3		110.7		16.0		19.2
Other Fixed Income Securities	9.6		10.7		9.2		8.2
Total Level 2	$	256.3	$	263.7	$	188.1	$	160.5
Total Marketable Securities	$	596.9	$	600.8	$	428.5	$	430.4

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

6. SHORT-TERM AND LONG-TERM DEBT

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas and Yankee Gas are also parties to a five-year $1.45 billion revolving credit ~~facility.~~facility, which terminates on December 8, 2023. The revolving credit facility ~~terminates on December 8, 2022 and~~ serves to backstop Eversource parent's $1.45 billion commercial paper program.

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit ~~facility.~~facility, which terminates on December 8, 2023. The revolving credit facility ~~terminates on December 8, 2022 and~~ serves to backstop NSTAR Electric's $650 million commercial paper program.

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



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

There were no borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, ~~2018~~2019 or December 31, ~~2017.~~2018. Eversource's water distribution ~~business~~segment has a $100 million revolving credit facility, which expires on August 19, 2019, and there were no ~~amounts~~borrowings outstanding as of March 31, ~~2018 and $76.0 million outstanding as of~~2019 or December 31, ~~2017.~~

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

Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 682.3
$ 979.3
$ 767.7
$ 470.7
2.31 % 1.86 %
NSTAR Electric Commercial Paper Program 367.0
234.0
283.0
416.0
1.75 % 1.55 %
2018.

Amounts outstanding under the commercial paper programs and revolving credit facility are included in Notes Payable ~~for Eversource and NSTAR Electric~~ and are classified in current liabilities on the Eversource and NSTAR Electric balance sheets as all borrowings are outstanding for no more than 364 days at one time. As a result of the ~~Eversource parent~~CL&P long-term debt ~~issuances~~issuance on ~~January 8, 2018,~~April 1, 2019, the net proceeds of which were used to repay CL&P's short-term borrowings, ~~outstanding under its commercial paper program, $201.2~~$261.6 million of commercial paper borrowings under the Eversource parent commercial paper program were reclassified asto Long-Term Debt as of ~~December~~March 31, ~~2017.~~2019.

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.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist them in meeting their short-term borrowing needs. In addition, growth in Eversource's key business initiatives requires cash infusion to those subsidiaries. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, ~~2018,~~2019, there were no intercompany loans from Eversource parent to CL&P ~~and $271.3~~of $261.6 million, to ~~PSNH. Intercompany loans from Eversource parent~~PSNH of $61.0 million, and to ~~other Eversource subsidiaries primarily included $276.3 million to Eversource Service as~~Harbor Electric Energy Company, a wholly-owned subsidiary of ~~March 31, 2018.~~NSTAR Electric ("HEEC"), of $22.3 million. As of December 31, ~~2017,~~2018, there were intercompany loans from Eversource parent to PSNH of ~~$69.5 million to CL&P and $262.9 million to PSNH.~~$57.0 million. Intercompany ~~loans from Eversource parent to other Eversource subsidiaries primarily included $115.9 million to Eversource Service and $198.0 million to NSTAR Gas as of December 31, 2017. These intercompany~~ loans from Eversource parent are included in Notes Payable to Eversource Parent and are classified in current liabilities on the respective subsidiary's balance sheets. ~~Intercompany loans~~As a result of the CL&P long-term debt issuance on April 1, 2019, $261.6 million of CL&P's intercompany borrowings were reclassified to Long-Term Debt as of March 31, 2019. The proceeds from ~~Eversource parent are eliminated in consolidation on Eversource's balance sheets.~~the CL&P April 1, 2019 debt issuance were used to repay CL&P’s short-term borrowings that were outstanding as of March 31, 2019, and to fund capital expenditures and working capital.

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

(Millions of Dollars) Issue Date Issuances/(Repayments) Maturity Date Use of Proceeds
CL&P:
4.00% 2018 Series A First Mortgage Bonds March 2018 $ 500.0
2048 Repay long-term debt due to mature in 2018 and repay short-term borrowings
5.65% 2008 Series A First Mortgage Bonds ⁽¹⁾
May 2008 (300.0 ) 2018 N/A
PSNH:
6.00% 2008 Series O First Mortgage Bonds ⁽¹⁾
May 2008 (110.0 ) 2018 N/A
Eversource Parent:
2.50% Series I Senior Notes ⁽²⁾
January 2018 200.0
2021 Repay long-term debt due to mature in 2018 and repay short-term borrowings
3.30% Series M Senior Notes January 2018 450.0
2028 Repay long-term debt due to mature in 2018
1.60% Series G Senior Notes ⁽³⁾
January 2015 (150.0 ) 2018 N/A
1.45% Series E Senior Notes ⁽¹⁾
May 2013 (300.0 ) 2018 N/A



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


⁽¹⁾	~~Represents a repayment at maturity paid on May 1, 2018.~~


⁽²⁾	These ~~notes~~bonds are part of the same series issued by ~~Eversource parent~~CL&P in March ~~2016.~~2018. The aggregate outstanding principal amount ~~for~~of these ~~notes~~bonds is now ~~$450~~$800 million.


⁽³⁾	~~Represents a repayment at maturity paid on January 15, 2018.~~

7. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

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

PSNH Funding 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 ~~Eversource parent debt issuances~~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 ~~January 2018, $446.8 million~~its consolidated financial statements. The following tables summarize the impact of ~~current portion of long-term debt related to two Eversource parent issuances maturing in 2018~~PSNH Funding on PSNH's balance sheets and ~~$201.2 million of commercial paper borrowings were reclassified to Long-Term Debt as of December 31, 2017.~~income statements:



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



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

7.8. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION

Eversource provides defined benefit retirement plans ("Pension Plans") that cover eligible ~~employees, including, among others, employees of CL&P, NSTAR Electric and PSNH.~~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 ~~(the "PBOP~~("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 ~~met~~meet certain age and service eligibility requirements.

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


	Pension and SERP						Pension and SERP
Eversource	For the Three Months Ended
							For the Three Months Ended March 31, 2019												For the Three Months Ended March 31, 2018
(Millions of Dollars)	March 31, 2018			March 31, 2017			Eversource			CL&P			NSTAR Electric			PSNH			Eversource			CL&P			NSTAR Electric			PSNH
Service Cost	$	22.7		$	18.7		$	19.3		$	4.8		$	3.9		$	2.6		$	22.7		$	5.7		$	4.7		$	2.9
Interest Cost	48.4			46.3			54.2			11.5			11.9			6.2			48.4			10.6			10.8			5.3
Expected Return on Pension Plan Assets	(98.0		)	(83.5		)	(92.3		)	(18.8		)	(24.4		)	(10.3		)	(98.0		)	(20.8		)	(25.2		)	(10.9		)
Actuarial Loss	36.0			33.6			35.8			8.1			9.4			3.5			36.0			7.4			10.5			3.3
Prior Service Cost	2.2			1.1			1.1			—			0.1			—			2.2			0.4			0.2			0.1
Total Net Periodic Benefit Expense	$	11.3		$	16.2		$	18.1		$	5.6		$	0.9		$	2.0		$	11.3		$	3.3		$	1.0		$	0.7
Capitalized Pension Expense	$	7.5		$	5.4
Intercompany Allocations							N/A			$	7.8		$	3.0		$	2.4		N/A			$	1.4		$	1.5		$	0.5



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

PBOP
Eversource For the Three Months Ended
(Millions of Dollars) March 31, 2018 March 31, 2017
Service Cost $ 2.7
$ 2.4
Interest Cost 7.6
7.2
Expected Return on Plan Assets (18.1 ) (15.9 )
Actuarial Loss 2.6
2.0
Prior Service Credit (5.9 ) (5.3 )
Total Net Periodic Benefit Income $ (11.1 ) $ (9.6 )
Capitalized PBOP Expense/(Income) $ 0.8
$ (4.6 )

Pension and SERP
For the Three Months Ended March 31, 2018 For the Three Months Ended March 31, 2017
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Service Cost $ 5.7
$ 4.7
$ 2.9
$ 4.8
$ 4.1
$ 2.5
Interest Cost 10.6
10.8
5.3
10.5
10.4
5.2
Expected Return on Pension Plan Assets (20.8 ) (25.2 ) (10.9 ) (18.0 ) (22.0 ) (9.9 )
Actuarial Loss 7.4
10.5
3.3
6.9
10.1
2.8
Prior Service Cost 0.4
0.2
0.1
0.4
0.2
0.1
Total Net Periodic Benefit Expense $ 3.3
$ 1.0
$ 0.7
$ 4.6
$ 2.8
$ 0.7
Intercompany Allocations $ 1.4
$ 1.5
$ 0.5
$ 2.5
$ 2.4
$ 0.8
Capitalized Pension Expense $ 2.3
$ 2.1
$ 0.8
$ 2.5
$ 1.8
$ 0.3

PBOP
For the Three Months Ended March 31, 2018 For the Three Months Ended March 31, 2017
(Millions of Dollars) CL&P
NSTAR
Electric
PSNH CL&P
NSTAR
Electric
PSNH
Service Cost $ 0.5
$ 0.5
$ 0.3
$ 0.5
$ 0.5
$ 0.3
Interest Cost 1.4
2.2
0.8
1.4
2.4
0.8
Expected Return on Plan Assets (2.6 ) (8.1 ) (1.5 ) (2.4 ) (7.1 ) (1.3 )
Actuarial Loss 0.3
0.7
0.2
0.2
0.9
0.1
Prior Service Cost/(Credit) 0.3
(4.3 ) 0.1
0.3
(4.3 ) 0.1
Total Net Periodic Benefit Income $ (0.1 ) $ (9.0 ) $ (0.1 ) $ —
$ (7.6 ) $ —
Intercompany Allocations $ (0.3 ) $ (0.3 ) $ (0.1 ) $ (0.3 ) $ (0.3 ) $ (0.1 )
Capitalized PBOP Expense/(Income) $ 0.2
$ 0.2
$ 0.1
$ (0.1 ) $ (3.8 ) $ —

8.9. COMMITMENTS AND CONTINGENCIES

A. Environmental Matters

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

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


	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	58	$	63.8	59	$	54.9	59	$	64.8	60	$	64.7
CL&P	14	5.1		14	4.7		15	5.6		15	5.4
NSTAR Electric	15	2.8		15	2.7		15	10.5		16	10.9
PSNH	9	5.6		10	5.7		9	5.3		9	5.4

Included in the Eversource number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability. The reserve balances related to these former MGP sites were ~~$57.8~~$50.6 million and ~~$49.0~~$50.1 million as of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, respectively, and related primarily to the natural gas business segment. The increase in the reserve balance at the MGP sites in the first quarter of 2018 was primarily due to changes in cost estimates at sites under investigation for which additional remediation will be required.

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 ~~related~~required environmental ~~matters.~~remediation. As this information becomes available, management will continue to assess the potential exposure and adjust the reserves accordingly.

B. Long-Term Contractual Arrangements

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

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

C. Guarantees and Indemnifications

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

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

Eversource parent has also guaranteed certain indemnification and other obligations as a result of the sales of former unregulated subsidiaries and the termination of an unregulated business, with maximum exposures either not specified or not material.

Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications. The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries to external parties, as of March 31, ~~2018:~~2019:


Company	Description	Maximum Exposure (in millions)		Expiration Dates	Description	Maximum Exposure (in millions)		Expiration Dates
On behalf of subsidiaries:
Eversource Gas Transmission LLC	Access Northeast Project Capital Contributions Guaranty ⁽¹⁾	$	185.0	2021
Eversource Investment LLC					Revolution Wind and South Fork Wind ⁽¹⁾	$	113.9	-
Various	Surety Bonds⁽²⁾	41.2		2018 - 2019	Surety Bonds⁽²⁾	32.0		2019 - 2021
Eversource Service and Rocky River Realty Company	Lease Payments for Vehicles and Real Estate	7.3		2019 - 2024
Rocky River Realty Company and Eversource Service					Lease Payments for Real Estate	7.3		2024
Bay State Wind LLC					Real Estate Purchase	2.5		2019

⁽¹⁾

Eversource parent issued a declining balance guaranty on behalf of its subsidiary, Eversource ~~Gas Transmission~~Investment LLC. Eversource parent will guarantee, as a primary obligor, the financial obligations, primarily all post-closing payment obligations of Eversource Investment LLC, ~~to guarantee~~under the Sale and Purchase Agreement and an Irrevocable Equity Commitment Letter with Ørsted. Eversource parent's obligations under the guaranty expire upon the full, final and indefeasible payment of the subsidiary's capital contributions for its investment in the Access Northeast project. The guaranty decreases as capital contributions are made. The guaranty will expire upon the earlier of the full performance of the guaranteed ~~obligations or December 31, 2021.~~obligations.


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

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

D. 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 facilities and are now engaged in the long-term storage of their spent fuel. The Yankee Companies ~~collect~~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. ~~These companies~~CL&P, NSTAR Electric and PSNH, in turn recover these costs from their customers through state regulatory commission-approved retail rates. The Yankee Companies ~~have collected or are currently collecting~~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 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 had previously awarded the Yankee Companies damages for Phase I, II and III of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2012, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

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

~~Claims seeking~~Claims. The Yankee Companies sought monetary damages totaling ~~approximately $100~~$104.4 million for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2013 to 2016 (“DOE Phase IV”). ~~No date is set~~On February 21, 2019, the Yankee Companies received a partial summary judgment and partial final judgment in their favor for the undisputed amount of monetary damages of $103.2 million. The court awarded CYAPC, YAEC and MYAPC damages of $40.7 million, $28.1 million and $34.4 million, respectively. The DOE did not appeal the court's judgment and the decision became final on April 23, 2019. The DOE Phase IV ~~trial.~~trial for the $1.2 million of remaining damages is expected to begin in June 2019.

D.E. FERC ROE Complaints

Four separate complaints have been 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.

~~In response to appeals~~

The ROE originally billed during the period October 1, 2011 (beginning of ~~the FERC decision in~~ the first complaint ~~filed by~~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 ~~NETOs~~FERC set the base ROE at 10.57 percent and the ~~Complainants,~~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") ~~issued a decision on April 14, 2017 vacating~~.

All amounts associated with the first complaint period have been refunded, which totaled $38.9 million (pre-tax and ~~remanding~~excluding interest) at Eversource and reflected both the ~~FERC's decision. The Court found that~~base ROE and incentive cap prescribed by the FERC ~~failed to make an explicit finding that~~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 ~~11.14~~second complaint period as of March 31, 2019. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE ~~was~~and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, 2019.

On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable ~~as required under Section 206 of the Federal Power Act, before it set~~and, if so, (2) how to calculate a ~~new base~~replacement ROE. The ~~Court also found that~~parties to these proceedings were directed to submit briefs on this new proposed framework and how they would apply the ~~FERC did not provide a rational connection between the record evidence and its decision to select the midpoint of the upper half of the zone of reasonableness for the new base ROE.~~

~~Hearings on the fourth complaint were held~~proposed framework in December 2017 before the FERC Administrative Law Judge ("ALJ"). On March 27, 2018, the FERC ALJ issued an initial decision in that complaint, finding that the current base ROE of 10.57 percent, which has an incentive cap ROE of 11.74 percent, is not unjust and not unreasonable.

~~A summary~~each of the four ~~separate complaints~~complaint proceedings. Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.

Complaint
15-Month Time Period
of Complaint
(Beginning as of Complaint Filing Date)
Original Base ROE Authorized by FERC at Time of Complaint
Filing Date ⁽¹⁾
Base ROE Subsequently Authorized by FERC for First Complaint Period and also Effective from
October 16, 2014 through April 14, 2017 ⁽¹⁾
Reserve
(Pre-Tax and Excluding Interest) as of March 31, 2018
(in millions)
FERC ALJ Recommendation of Base ROE on Second, Third and Fourth Complaints
First 10/1/2011 - 12/31/2012 11.14% 10.57% $—
⁽²⁾
N/A
Second 12/27/2012 - 3/26/2014 11.14% N/A 39.1
⁽³⁾
9.59%
Third 7/31/2014 - 10/30/2015 11.14% 10.57% — 10.90%
Fourth 4/29/2016 - 7/28/2017 10.57% 10.57% — 10.57%

⁽¹⁾

The ROE billed during the period October 1, 2011 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 an 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.


^{10.99 percent; (2)}	CL&P, NSTAR Electric and PSNH have refunded all amounts associated with the first complaint period, totaling $38.9 million (pre-tax and excluding interest) at Eversource (consisting of $22.4 million at CL&P, $13.7 million at NSTAR Electric and $2.8 million at PSNH), reflecting both the base ROE and incentive cap prescribed by the FERC order.


⁽³⁾	The reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, 2018.

~~On June 5, 2017,~~ the ~~NETOs, including Eversource, submitted a filing to the FERC to reinstate the~~pre-existing base ROE of 11.14 percent ~~with an associated~~is therefore unjust and unreasonable; (3) the preliminary just and reasonable base ROE is 10.41 percent; and (4) the preliminary incentive cap on total ROE is 13.08 percent.

If the results of ~~13.5 percent effective June 8, 2017, as~~ these illustrative calculations were ~~the last ROEs lawfully~~included in ~~effect for transmission billing purposes prior to the~~a final FERC order ~~vacated by~~for each of the ~~Court on April 14, 2017. On October 6, 2017, the FERC did not accept the NETOs filing, temporarily leaving in place the ROEs (10.57~~complaint periods, then a 10.41 percent base ROE ~~with an 11.74~~and a 13.08 percent incentive cap ~~ROE) set~~would not have a significant impact on our financial statements for all of the complaint periods.

Although the order provided illustrative calculations, FERC stated that these calculations are merely preliminary. The FERC’s preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order, as changes to the methodology by FERC are possible as a result of the parties’ arguments and calculations in the ~~first complaint proceeding until the~~briefing process. Until FERC ~~addresses the Court’s decision. On November 6, 2017, the NETOs submitted~~issues a ~~request for rehearing~~final decision on each of ~~the FERC's October 6, 2017 Order rejecting the compliance filing.~~

~~On October 5, 2017, the NETOs filed a series of motions, requesting that the FERC dismiss the~~these four complaint proceedings. Alternatively, if the FERC does not dismiss the proceedings, the NETOs requested that the FERC consolidate all four complaint proceedings for expeditious resolution and/or stay the trial in the fourth complaint proceedingcomplaints, there is significant uncertainty, and ~~resolve it based on the standards set in the April 14, 2017 Court decision.~~

Atat this time, the Company cannot reasonably estimate a range of gain or loss for any of the four complaint proceedings. ~~No events in 2017~~The October 16, 2018 FERC order or ~~2018 provided~~the 2019 briefs did not provide a reasonable basis for a change to the reserve ~~balance of $39.1 million (pre-tax and excluding interest) for the second complaint period, and the Company has not changed its reserve~~ or recognized ROEs for any of the complaint periods.

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

At this time, the Company cannot predict the timing or ultimate effect of the Court decision or future FERC action on any of the complaint periods or the estimated impacts on the financial position, results of operations or cash flows of Eversource, CL&P, NSTAR Electric or PSNH.

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

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

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

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

In 2017, as a result of the settlement, NSTAR Electric expensed $4.9 million (pre-tax) of previously incurred capitalized costs associated with engineering work performed on the existing cable that will no longer be used. In addition, NSTAR Electric agreed to provide a rate base credit of $17.5 million to the Massachusetts Water Resources Authority for the new cable. This negotiated credit ~~will result~~resulted in the initial $17.5 million of construction costs on the new cable ~~to be~~being expensed as ~~incurred. Of this amount, NSTAR Electric~~incurred, all of which was fully expensed ~~$11.1 million (pre-tax) of costs incurred on the new cable~~ in ~~2017 and expensed an additional $2.1 million (pre-tax) in the first three months of~~ 2018. Construction of the new cable is underway and is expected to be completed in 2019.

~~9. ASSETS HELD FOR SALE~~

~~In June 2015,~~ 10. LEASES

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

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

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

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

CL&P and PSNH entered into certain contracts for the ~~2015 Public Service Company~~purchase of ~~New Hampshire Restructuring~~energy that qualify as leases. These contracts do not have minimum lease payments and Rate Stabilization Agreement, under the terms of which PSNH agreed to divest its generation assets, subject to NHPUC approval. The NHPUC approval for this agreement, as well as NHPUC approval of the final divestiture plan and auction process, were received in the second half of 2016. In October 2017, PSNH entered into two Purchase and Sale Agreements ("Agreements") to sell its thermal and hydroelectric generation assets to private investors at purchase prices of $175 million and $83 million, respectively, subject to adjustments as set forth in the Agreements. The NHPUC approved the Agreements in late November 2017, at which time the Company classified these assets as held for sale.

On January 10, 2018, PSNH completed the sale of its thermal generation assets, pursuant to the Agreement dated October 11, 2017. In accordance with the Purchase and Sale Agreement, the original purchase price of $175 million was adjusted to reflect working capital adjustments, closing date adjustments and proration of taxes and fees prior to closing, totaling $40.9 million, resulting in net proceeds of $134.1 million. As of March 31, 2018, deferred costs resulting from the thermal generation asset sale totaled $539.6 million and were included in Regulatory Assets on the Eversource and PSNH Balance Sheets. As of December 31, 2017, this balance totaled $516.1 million and represented the difference between the carrying value and the fair value less cost to sell of the thermal generation assets.

~~PSNH expects to complete the sale of its hydroelectric generation assets in the second quarter of 2018 at an amount above net carrying value, and~~therefore are therefore stated at carrying value. As of March 31, 2018, the difference between the carrying value of the hydroelectric generation assets and the anticipated sale proceeds was approximately $23 million, which will benot recognized as a ~~reduction~~lease liability on the balance sheet and are not reflected in the future minimum lease payments table below. Expense related to ~~stranded costs upon completion~~these contracts are included as variable lease cost in the table below. The expense and long-term obligation for these contracts are included in the annually reported contractual obligations table in Note 12B, "Commitments and Contingencies - Long-Term Contractual Arrangements," of the ~~sale.~~Eversource 2018 Form 10-K.

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



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

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

Supplemental balance sheet information related to leases is as follows:



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

The finance lease payments that NSTAR Electric will make over the next twelve months are entirely interest-related, due to escalating payments. As such, none of the ~~costs of PSNH's generation assets and transaction-related expenses is expected to occur through a combination of cash flows during~~finance lease payments over the ~~remaining operating period, sales proceeds, and recovery of stranded costs primarily via~~next twelve months will reduce the ~~issuance of bonds that will be secured by a non-bypassable charge billed to PSNH's customers.~~

For the three months ended March 31, 2018, pre-tax income associated with the hydroelectric assets held for sale was $5.9 million. For the three months ended March 31, 2017, pre-tax income associated with PSNH's generation assets was $14.8 million.finance lease liability.

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



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

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



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

At December 31, 2018, ~~PSNH's hydroelectric generation assets held for sale, which are included in current assets on the Eversource~~future minimum rental payments, excluding executory costs, such as property taxes, state use taxes, insurance, and ~~PSNH balance sheets, and are part of the Electric Distribution reportable segment,~~maintenance were as follows:

(Millions of Dollars)
Hydroelectric Gross Plant $ 86.6
Accumulated Depreciation (27.4 )
Net Plant 59.2
Materials and Supplies 0.1
Total Hydroelectric Generation Assets Held for Sale $ 59.3



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



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

~~10.~~11. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

Preferred Stock, Long-Term Debt and ~~Long-Term Debt:~~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 ~~tables~~table below are classified as Level 2 within the fair value hierarchy. Carrying amounts and estimated fair values are as follows:

As of March 31, 2018 As of December 31, 2017
Eversource
(Millions of Dollars)
Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value
Preferred Stock Not Subject to Mandatory Redemption $ 155.6
$ 165.8
$ 155.6
$ 160.8
Long-Term Debt 13,113.3
13,376.1
12,325.5
12,877.1


	CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of March 31, 2018:
As of March 31, 2019:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	122.3	$	43.0	$	43.5	$	—	$	—	$	155.6	$	157.1	$	116.2	$	114.2	$	43.0	$	42.9	$	—	$	—
Long-Term Debt	3,553.6		3,821.9		2,943.9		3,071.7		1,001.8		1,025.2		13,089.8		13,519.6		3,265.8		3,538.0		2,945.2		3,107.3		805.3		831.1
Rate Reduction Bonds													604.9		623.3		—		—		—		—		604.9		623.3

As of December 31, 2017:
As of December 31, 2018:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	116.5	$	43.0	$	44.3	$	—	$	—	$	155.6	$	156.8	$	116.2	$	113.8	$	43.0	$	43.0	$	—	$	—
Long-Term Debt	3,059.1		3,430.5		2,943.8		3,156.5		1,002.4		1,038.2		13,086.1		13,154.9		3,254.0		3,429.2		2,944.8		3,024.1		805.2		819.5
Rate Reduction Bonds													635.7		645.8		—		—		—		—		635.7		645.8

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

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

~~11.~~12. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

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


	For the Three Months Ended March 31, 2018												For the Three Months Ended March 31, 2017											For the Three Months Ended March 31, 2019												For the Three Months Ended March 31, 2018
Eversource (Millions of Dollars)	Qualified Cash Flow Hedging Instruments			Unrealized Losses on Marketable Securities			Defined Benefit Plans			Total			Qualified Cash Flow Hedging Instruments			Unrealized Gains on Marketable Securities		Defined Benefit Plans			Total			Qualified Cash Flow Hedging Instruments			Unrealized Gains/(Losses) on Marketable Securities			Defined Benefit Plans			Total			Qualified Cash Flow Hedging Instruments			Unrealized Losses on Marketable Securities			Defined Benefit Plans			Total
Balance as of Beginning of Period	$	(6.2	)	$	—		$	(60.2	)	$	(66.4	)	$	(8.2	)	$	0.4	$	(57.5	)	$	(65.3	)
Balance as of January 1st																								$	(4.4	)	$	(0.5	)	$	(55.1	)	$	(60.0	)	$	(6.2	)	$	—		$	(60.2	)	$	(66.4	)

OCI Before Reclassifications	—			(0.4		)	—			(0.4		)	—			1.7		—			1.7			—			0.7			—			0.7			—			(0.4		)	—			(0.4		)
Amounts Reclassified from AOCI	0.7			—			3.0			3.7			0.5			—		1.0			1.5			0.3			—			1.2			1.5			0.7			—			3.0			3.7
Net OCI	0.7			(0.4		)	3.0			3.3			0.5			1.7		1.0			3.2			0.3			0.7			1.2			2.2			0.7			(0.4		)	3.0			3.3
Balance as of End of Period	$	(5.5	)	$	(0.4	)	$	(57.2	)	$	(63.1	)	$	(7.7	)	$	2.1	$	(56.5	)	$	(62.1	)
Balance as of March 31st																								$	(4.1	)	$	0.2		$	(53.9	)	$	(57.8	)	$	(5.5	)	$	(0.4	)	$	(57.2	)	$	(63.1	)

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

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses ~~and prior service costs~~ 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. ~~For further information, see Note 1F, "Summary of Significant Accounting Policies - Other Income, Net," and Note 7, "Pension Benefits and Postretirement Benefits Other Than Pension."~~

~~12.~~13. 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					Shares
			Authorized as of March 31, 2018 and	Issued as of				Authorized as of March 31, 2019 and December 31, 2018			Issued as of
	Par Value		December 31, 2017	March 31, 2018	December 31, 2017	Par Value				March 31, 2019			December 31, 2018
Eversource	$	5	380,000,000	333,878,402	333,878,402	$	5	Authorized as of March 31, 2019 and December 31, 2018	380,000,000			333,878,402			333,878,402
CL&P	$	10	24,500,000	6,035,205	6,035,205	$	10	24,500,000			6,035,205			6,035,205
NSTAR Electric	$	1	100,000,000	200	200	$	1	100,000,000			200			200
PSNH	$	1	100,000,000	301	301	$	1	100,000,000			301			301

As of ~~both~~ March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, there were 16,530,932 and 16,992,594 Eversource common shares held as treasury ~~shares.~~shares, respectively. As of ~~both~~ March 31, ~~2018~~2019 and December 31, ~~2017, there were 316,885,808~~2018, Eversource common shares ~~outstanding.~~outstanding were 317,347,470 and 316,885,808, respectively.

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

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

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended March 31, ~~2018~~2019 and ~~2017.~~2018. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest – Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of March 31, ~~2018~~2019 and December 31, ~~2017.~~2018. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to ~~the~~Eversource parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

~~14.~~15. 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 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. ~~For the three months ended March 31, 2018 and 2017, there were no antidilutive share awards excluded from the computation of diluted EPS.~~

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


Eversource (Millions of Dollars, except share information)	For the Three Months Ended				For the Three Months Ended
	March 31, 2018		March 31, 2017		March 31, 2019		March 31, 2018
Net Income Attributable to Common Shareholders	$	269.5	$	259.5	$	308.7	$	269.5
Weighted Average Common Shares Outstanding:
Basic	317,397,052		317,463,151		317,624,593		317,397,052
Dilutive Effect	595,947		661,385		691,489		595,947
Diluted	317,992,999		318,124,536		318,316,082		317,992,999
Basic and Diluted EPS	$	0.85	$	0.82	$	0.97	$	0.85

~~15.~~16. REVENUES

~~On January 1, 2018, Eversource, including CL&P, NSTAR Electric and PSNH, adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” using the modified retrospective approach.~~The core principle of this accounting guidance is that revenue is recognized when promised goods or services (referred to as performance obligations) are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard uses a five-step model for recognizing and measuring revenue from contracts with customers, which includes identifying the contract with the customer, identifying the performance obligations promised within the contract, determining the transaction price (the amount of consideration to which the company expects to be entitled), allocating the transaction price to the performance obligations and recognizing revenue when (or as) the performance obligation is satisfied.

The following ~~table presents~~tables present operating revenues disaggregated by revenue source:

For the Three Months Ended March 31, 2018
Eversource
(Millions of Dollars)
Electric
Distribution

Natural Gas
Distribution

Electric
Transmission
Water Distribution Other Eliminations Total
Revenue from Contracts with Customers
Retail Tariff Sales
Residential $ 994.4
$ 248.9
$ —
$ 26.4
$ —
$ —
$ 1,269.7
Commercial 611.4
134.7
—
13.8
—
—
759.9
Industrial 81.5
29.5
—
1.0
—
(2.5 ) 109.5
Total Retail Tariff Sales Revenue $ 1,687.3
$ 413.1
$ —
$ 41.2
$ —
$ (2.5 ) $ 2,139.1
Wholesale Transmission Revenue $ —
$ —
$ 313.6
$ —
$ 10.1
$ (258.7 ) $ 65.0
Wholesale Market Sales Revenue 58.5
17.8
—
0.8
—
—
77.1
Other Revenue from Contracts with Customers 16.0
(0.6 ) 3.1
4.0
220.8
(221.4 ) 21.9
Reserve for Revenue Subject to Refund (19.3 ) (4.5 ) —
(2.2 ) —
—
(26.0 )
Total Revenue from Contracts with Customers $ 1,742.5
$ 425.8
$ 316.7
$ 43.8
$ 230.9
$ (482.6 ) $ 2,277.1
Alternative Revenue Programs 8.7
(1.7 ) (11.7 ) 0.7
—
10.6
6.6
Other Revenue 3.4
0.8
—
0.1
—
—
4.3
Total Operating Revenues $ 1,754.6
$ 424.9
$ 305.0
$ 44.6
$ 230.9
$ (472.0 ) $ 2,288.0

For the Three Months Ended March 31, 2018

(Millions of Dollars)
CL&P NSTAR Electric PSNH
Revenue from Contracts with Customers
Retail Tariff Sales
Residential $ 483.4
$ 364.2
$ 146.8
Commercial 222.5
314.4
74.9
Industrial 35.8
28.1
17.6
Total Retail Tariff Sales Revenue $ 741.7
$ 706.7
$ 239.3
Wholesale Transmission Revenue $ 150.8
$ 118.6
$ 44.2
Wholesale Market Sales Revenue 10.3
24.9
24.1
Other Revenue from Contracts with Customers 7.5
8.3
3.5
Reserve for Revenue Subject to Refund (12.5 ) (3.7 ) (3.1 )
Total Revenue from Contracts with Customers $ 897.8
$ 854.8
$ 308.0
Alternative Revenue Programs (5.1 ) 6.7
(4.6 )
Other Revenue 1.3
1.7
0.4
Eliminations (109.0 ) (93.1 ) (36.4 )
Total Operating Revenues $ 785.0
$ 770.1
$ 267.4



	For the Three Months Ended March 31, 2019
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution		Electric Transmission		Water Distribution			Other		Eliminations			Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	1,033.3		$	258.9	$	—	$	27.0		$	—	$	—		$	1,319.2
Commercial	652.6			143.8		—		14.3			—		(1.1		)	809.6
Industrial	82.1			30.9		—		1.1			—		(2.7		)	111.4
Total Retail Tariff Sales Revenues	1,768.0			433.6		—		42.4			—		(3.8		)	2,240.2
Wholesale Transmission Revenues	—			—		324.9		—			13.5		(270.8		)	67.6
Wholesale Market Sales Revenues	51.5			21.7		—		1.0			—		—			74.2
Other Revenues from Contracts with Customers	12.6			0.9		3.2		1.7			244.6		(245.4		)	17.6
Reserve for Revenues Subject to Refund	(3.1		)	1.6		—		(0.8		)	—		—			(2.3		)
Total Revenues from Contracts with Customers	1,829.0			457.8		328.1		44.3			258.1		(520.0		)	2,397.3
Alternative Revenue Programs	2.1			10.4		12.4		0.9			—		(11.1		)	14.7
Other Revenues ⁽¹⁾	2.8			0.7		—		0.3			—		—			3.8
Total Operating Revenues	$	1,833.9		$	468.9	$	340.5	$	45.5		$	258.1	$	(531.1	)	$	2,415.8



	For the Three Months Ended March 31, 2018
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other		Eliminations			Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	994.4		$	248.9		$	—		$	26.4		$	—	$	—		$	1,269.7
Commercial	611.4			134.7			—			13.8			—		—			759.9
Industrial	81.5			29.5			—			1.0			—		(2.5		)	109.5
Total Retail Tariff Sales Revenues	1,687.3			413.1			—			41.2			—		(2.5		)	2,139.1
Wholesale Transmission Revenues	—			—			313.6			—			10.1		(258.7		)	65.0
Wholesale Market Sales Revenues	58.5			17.8			—			0.8			—		—			77.1
Other Revenues from Contracts with Customers	16.0			(0.6		)	3.1			4.0			220.8		(221.4		)	21.9
Reserve for Revenues Subject to Refund	(19.3		)	(4.5		)	—			(2.2		)	—		—			(26.0		)
Total Revenues from Contracts with Customers	1,742.5			425.8			316.7			43.8			230.9		(482.6		)	2,277.1
Alternative Revenue Programs	8.7			(1.7		)	(11.7		)	0.7			—		10.6			6.6
Other Revenues	3.4			0.8			—			0.1			—		—			4.3
Total Operating Revenues	$	1,754.6		$	424.9		$	305.0		$	44.6		$	230.9	$	(472.0	)	$	2,288.0



	For the Three Months Ended March 31, 2019									For the Three Months Ended March 31, 2018
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	510.5		$	371.0		$	151.8		$	483.4		$	364.2		$	146.8
Commercial	236.7			336.5			79.8			222.5			314.4			74.9
Industrial	34.6			28.8			18.7			35.8			28.1			17.6
Total Retail Tariff Sales Revenues	781.8			736.3			250.3			741.7			706.7			239.3
Wholesale Transmission Revenues	154.8			122.6			47.5			150.8			118.6			44.2
Wholesale Market Sales Revenues	13.7			24.4			13.4			10.3			24.9			24.1
Other Revenues from Contracts with Customers	8.9			4.0			3.6			7.5			8.3			3.5
Reserve for Revenues Subject to Refund	—			—			(3.1		)	(12.5		)	(3.7		)	(3.1		)
Total Revenues from Contracts with Customers	959.2			887.3			311.7			897.8			854.8			308.0
Alternative Revenue Programs	5.7			7.3			1.5			(5.1		)	6.7			(4.6		)
Other Revenues ⁽¹⁾	1.0			1.5			0.3			1.3			1.7			0.4
Eliminations	(116.7		)	(98.5		)	(37.1		)	(109.0		)	(93.1		)	(36.4		)
Total Operating Revenues	$	849.2		$	797.6		$	276.4		$	785.0		$	770.1		$	267.4

~~Retail Tariff Sales:~~ ⁽¹⁾Regulated utilities provide products and services to their regulated customers under rates, pricing, payment terms and conditions of service, regulated by each state regulatory agency. The arrangement whereby a utility provides commodity service to a customer for a price approved by the respective state regulatory commission is referred to as a tariff sale contract, and the tariff governs all aspects of the provision of regulated services by utilities. The majority of revenue for Eversource, CL&P, NSTAR Electric and PSNH is derived from regulated retail tariff sales for the sale and distribution of electricity, natural gas and water to residential, commercial and industrial retail customers.

~~The utility's performance obligation for the regulated tariff sales is to provide electricity, natural gas or water to the customer as demanded.~~

The promise to provide the commodity represents a single performance obligation, as it is a promise to transfer a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. Revenue is recognized over time as the customer simultaneously receives and consumes the benefits provided by the utility, and the utility satisfies its performance obligation. Revenue is recognized based on the output method as there is a directly observable output to the customer (electricity, natural gas or water units delivered to the customer and immediately consumed). Each Eversource utility is entitled to be compensated for performance completed to date (service taken by the customer) until service is terminated.

In regulated tariff sales, the transaction prices are the rates approved by the respective state regulatory commissions. In general, rates can only be changed through formal proceedings with the state regulatory commissions. These rates are designed to recover the costs to provide service to customers and include a return on investment. Regulatory commission-approved tracking mechanisms are included in these rates and are also used to recover, on a fully-reconciling basis, certain costs, such as the procurement of energy supply, retail transmission charges, energy efficiency program costs, net metering for distributed generation, and restructuring and stranded costs. These tracking mechanisms result in rates being changed periodically to ensure recovery of actual costs incurred.

Customers may elect to purchase electricity from each Eversource electric utility or may contract separately with a competitive third party supplier. Revenue is not recorded for the sale of the electricity commodity to customers who have contracted separately with these suppliers, only the delivery to a customer, as the utility is acting as an agent on behalf of the third party supplier.

~~Wholesale Transmission Revenues:~~ The Eversource electric transmission-owning companies (CL&P, NSTAR Electric and PSNH) each own and maintain transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England. CL&P, NSTAR Electric and PSNH, as well as most other New England utilities, are parties to a series of agreements that provide for coordinated planning and operation of the region's transmission facilities and the rules by which they acquire transmission services. The Eversource electric transmission-owning companies have a combination of FERC-approved regional and local formula rates that work in tandem to recover all their transmission costs. These rates are part of the ISO-NE Tariff. Regional rates recover the costs of higher voltage transmission facilities that benefit the region and are collected from all New England transmission customers, including the Eversource distribution businesses. Eversource's local rates recover the companies' total transmission revenue requirements, less revenues received from regional rates and other sources, and are collected from Eversource's distribution businesses and other transmission customers. The distribution businesses of Eversource, in turn, recover the FERC approved charges from retail customers through annual or semiannual tracking mechanisms, which are retail tariff sales.

The utility's performance obligation for regulated wholesale transmission sales is to provide transmission services to the customer as demanded. The promise to provide transmission service represents a single performance obligation. The transaction prices are the transmission rate formulas as defined by the ISO-NE Tariff and are regulated and established by FERC. Wholesale transmission revenue is recognized over time as the performance obligation is completed, which occurs as transmission services are provided to customers. The revenue is recognized based on the output method. Each Eversource utility is entitled to be compensated for performance completed to date (e.g., use of the transmission system by the customer).

~~Wholesale Market Sales Revenues:~~ Wholesale market sales transactions include sales of energy and energy-related products into the ISO-NE wholesale electricity market, sales of natural gas to third party marketers, and also the sale of RECs to various counterparties. ISO-NE oversees the region's wholesale electricity market and administers the transactions and terms and conditions, including payment terms, which are established in the ISO-NE tariff, between the buyers and sellers in the market. Pricing is set by the wholesale market. The wholesale transactions in the ISO-NE market occur on a day-ahead basis or a real-time basis (daily) and are, therefore, short-term. Transactions are tracked and reported by ISO-NE net by the hour, which is the net hourly position of energy sales and purchases by each market participant. Beginning in the first quarter of 2018, the performance obligation for ISO-NE energy transactions is defined to be the net by hour transaction. Revenue is recognized when the performance obligation for these energy sales transactions is satisfied, when the sale occurs and the energy is transferred to the customer. For sales of natural gas, transportation, and natural gas pipeline capacity to third party marketers, revenue is recognized when the performance obligation is satisfied at the point in time the sale occurs and the natural gas or related product is transferred to the marketer. RECs are sold to various counterparties, and revenue is recognized when the performance obligation is satisfied upon transfer of title to the customer through the New England Power Pool Generation Information System.

~~Other Revenue from Contracts with Customers:~~ Other revenue from contracts with customers primarily includes property rentals that are not deemed leases. These revenues are generally recognized on a straight-line basis over time as the service is provided to the customer.

~~Reserve for Revenue Subject to Refund:~~ Current base rates include an estimate of income taxes, which was based on the U.S. federal corporate income tax rate in effect at the time of the rate proceeding. In the first quarter of 2018, Eversource established a reserve of $26.0 million, recorded as a reduction to revenue, to reflect the difference between the 35 percent federal corporate income tax rate included in rates charged to customers and the 21 percent federal income tax rate, effective January 1, 2018 as a result of the Tax Cuts and Jobs Act. Eversource will refund these amounts to customers through various rate mechanisms in the future. Effective February 1, 2018, NSTAR Electric's base rates charged to customers have been adjusted to reflect the new federal income tax rate, and effective May 1, 2018, CL&P's rates charged to customers reflect the new income tax rate.

~~Alternative Revenue Programs:~~ In accordance with accounting guidance for rate-regulated operations, certain of Eversource's utilities' rate making mechanisms qualify as alternative revenue programs ("ARPs") if they meet specified criteria, in which case revenues may be recognized prior to billing based on allowed levels of collection in rates. Eversource's utility companies recognize revenue and record a regulatory asset or liability once the condition or event allowing for the automatic adjustment of future rates occurs. ARP revenues include both the recognition of the deferral adjustment to ARP revenues, when the regulator-specified condition or event allowing for additional billing or refund has occurred, and an equal and offsetting reversal of the ARP deferral to revenues as those amounts are reflected in the price of service in subsequent periods.

~~Eversource’s ARPs include the revenue decoupling mechanism and annual reconciliation adjustment to transmission formula rates, described below.~~

Certain Eversource electric, natural gas and water companies, including CL&P and NSTAR Electric, have revenue decoupling mechanism approved by a regulatory commission ("decoupled companies"). Decoupled companies’ distribution revenues are not directly based on sales volumes. The decoupled companies reconcile their annual base distribution rate recovery to pre-established levels of baseline distribution delivery service revenues, with any difference between the allowed level of distribution revenue and the actual amount realized adjusted through subsequent rates.

The transmission formula rates provide for the annual reconciliation and recovery or refund of estimated costs to actual costs. The financial impacts of differences between actual and estimated costs are deferred for future recovery from, or refund to, transmission customers. This transmission deferral reconciles billed transmission revenues to the revenue requirement for our transmission businesses.

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

~~Intercompany Eliminations:~~ Intercompany eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business and revenues from Eversource's service company. Intercompany revenues and expenses between the Eversource wholesale transmission businesses and the Eversource distribution businesses and from Eversource's service company are eliminated in consolidation and included in "Eliminations" in the table above.

~~Receivables:~~ Receivables, Net on the balance sheet include trade receivables from our retail customers and receivables arising from ISO-NE billing related to wholesale transmission contracts and wholesale market transactions, sales of natural gas and capacity to marketers, sales of RECs, and property rentals. In general, retail tariff customers and wholesale transmission customers are billed monthly and the payment terms are generally due and payable upon receipt of the bill.

Unbilled Revenues on the balance sheet represent estimated amounts due from retail customers for electricity, natural gas or water delivered to customers but not yet billed. The utility company has satisfied its performance obligation and the customer has received and consumed the commodity as of the balance sheet date, and therefore, the utility company records revenue for those services in the period the services were provided. Only the passage of time is required before the company is entitled to payment for the satisfaction of the performance obligation. Payment from customers is due monthly as services are rendered and amounts are billed. Actual amounts billed to customers when meter readings become available may vary from the estimated amount.

Unbilled revenues are recognized by allocating estimated unbilled sales volumes to the respective customer classes, and then applying an estimated rate by customer class to those sales volumes. Unbilled revenue estimates reflect seasonality, weather, customer usage patterns, customer rates in effect for customer classes, and the timing of customer billing. The companies that have a decoupling mechanism record a regulatory deferral to reflect the actual allowed amount of revenue associated with their respective decoupled distribution rate design.

~~Practical Expedients:~~ Eversource has elected practical expedients in the accounting guidance that allow the company to record revenue in the amount that the company has a right to invoice, if that amount corresponds directly with the value to the customer of the company's performance to date, and not to disclose related unsatisfied performance obligations. Retail and wholesale transmission tariff sales fall into this category, as these sales are recognized as revenue in the period the utility provides the service and completes the performance obligation, which is the same as the monthly amount billed to customers. There are no other material revenue streams for which Eversource has unsatisfied performance obligations.

~~16.~~17. SEGMENT INFORMATION

~~Presentation:~~Eversource is organized ~~among~~into the Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution reportable segments and Other based on a combination of factors, including the characteristics of each segments' services, the sources of operating revenues and expenses and the regulatory environment in which each segment operates. These reportable segments represent substantially all of Eversource's total consolidated revenues. Revenues from the sale of electricity, natural gas and water primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer. The Electric Distribution reportable segment includes the results of PSNH's generation facilities prior to sales in January and August 2018, and NSTAR Electric's solar power facilities. Eversource's reportable segments are determined based upon the level at which Eversource's chief operating decision maker assesses performance and makes decisions about the allocation of company resources. On December 4, 2017, Eversource acquired Aquarion, which was considered to be a new operating segment, water distribution. Though the water distribution segment does not meet quantitative thresholds under the segment reporting accounting guidance, based on qualitative factors including the nature of the water distribution business, Water Distribution was deemed a reportable segment beginning in the first quarter of 2018.

The remainder of Eversource's operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of CYAPC and YAEC, 4) Eversource Water Ventures, Inc., parent company of Aquarion, and 4)5) the results of other unregulated subsidiaries, which are not part of its core business. In addition, Other in the tables below includes Eversource parent's equity ownership interests ~~in certain~~that are not consolidated, which include a natural gas pipeline ~~projects~~project owned by Enbridge, Inc., the ~~Bay State Wind project,~~offshore wind business, a renewable energy investment fund, and two companies that transmit hydroelectricity imported from the Hydro-Quebec system in Canada. In the ordinary course of business, Yankee Gas and NSTAR Gas purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline ~~projects~~project described above. These affiliate transaction costs total approximately $62.5 million annually and are classified as Purchased Power, Fuel and Transmission on the Eversource statements of income.

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

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

Eversource's segment information is as follows:


	For the Three Months Ended March 31, 2018 ⁽¹⁾																					For the Three Months Ended March 31, 2019
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total			Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total
Operating Revenues	$	1,754.6		$	424.9		$	305.0		$	44.6		$	230.9		$	(472.0	)	$	2,288.0		$	1,833.9		$	468.9		$	340.5		$	45.5		$	258.1		$	(531.1	)	$	2,415.8
Depreciation and Amortization	(144.4		)	(26.4		)	(56.6		)	(10.7		)	(12.0		)	0.6			(249.5		)	(179.2		)	(20.4		)	(61.5		)	(11.8		)	(13.6		)	0.6			(285.9		)
Other Operating Expenses	(1,443.5		)	(312.6		)	(83.2		)	(23.9		)	(204.7		)	471.9			(1,596.0		)	(1,475.6		)	(341.3		)	(98.8		)	(25.0		)	(225.5		)	531.0			(1,635.2		)
Operating Income	$	166.7		$	85.9		$	165.2		$	10.0		$	14.2		$	0.5		$	442.5		$	179.1		$	107.2		$	180.2		$	8.7		$	19.0		$	0.5		$	494.7
Interest Expense	$	(47.4	)	$	(11.1	)	$	(29.7	)	$	(8.4	)	$	(31.9	)	$	7.4		$	(121.1	)	$	(49.2	)	$	(11.7	)	$	(30.6	)	$	(8.6	)	$	(44.2	)	$	12.6		$	(131.7	)
Other Income, Net	19.6			2.0			8.0			(0.6		)	360.1			(355.3		)	33.8			18.2			0.2			8.1			0.4			431.7			(427.6		)	31.0
Net Income Attributable to Common Shareholders	104.2			57.8			107.4			1.5			346.0			(347.4		)	269.5			120.1			76.5			118.2			0.9			407.5			(414.5		)	308.7
Cash Flows Used for Investments in Plant	236.0			70.4			239.2			19.0			42.7			—			607.3			279.3			87.4			231.4			20.7			55.9			—			674.7


	For the Three Months Ended March 31, 2017																				For the Three Months Ended March 31, 2018
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution		Other			Eliminations			Total			Electric Distribution			Natural Gas Distribution			Electric Transmission			Water Distribution			Other			Eliminations			Total
Operating Revenues	$	1,401.1		$	403.6		$	316.9		$	—	$	236.3		$	(252.8	)	$	2,105.1		$	1,754.6		$	424.9		$	305.0		$	44.6		$	230.9		$	(472.0	)	$	2,288.0
Depreciation and Amortization	(129.8		)	(21.7		)	(50.6		)	—		(9.2		)	0.5			(210.8		)	(144.4		)	(26.4		)	(56.6		)	(10.7		)	(12.0		)	0.6			(249.5		)
Other Operating Expenses	(1,048.9		)	(290.2		)	(90.2		)	—		(216.8		)	252.8			(1,393.3		)	(1,443.5		)	(312.6		)	(83.2		)	(23.9		)	(204.7		)	471.9			(1,596.0		)
Operating Income	$	222.4		$	91.7		$	176.1		$	—	$	10.3		$	0.5		$	501.0		$	166.7		$	85.9		$	165.2		$	10.0		$	14.2		$	0.5		$	442.5
Interest Expense	$	(48.2	)	$	(10.6	)	$	(28.1	)	$	—	$	(19.7	)	$	3.2		$	(103.4	)	$	(47.4	)	$	(11.1	)	$	(29.7	)	$	(8.4	)	$	(31.9	)	$	7.4		$	(121.1	)
Other Income, Net	12.0			0.9			5.1			—		329.1			(325.5		)	21.6
Other Income/(Loss), Net																					19.6			2.0			8.0			(0.6		)	360.1			(355.3		)	33.8
Net Income Attributable to Common Shareholders	114.1			50.8			94.2			—		322.2			(321.8		)	259.5			104.2			57.8			107.4			1.5			346.0			(347.4		)	269.5
Cash Flows Used for Investments in Plant	236.2			64.5			192.6			—		30.3			—			523.6			236.0			70.4			239.2			19.0			42.7			—			607.3

⁽¹⁾

Effective January 1, 2018, upon implementation of the new revenue accounting guidance, the electric distribution segment is presented gross and intercompany transmission billings are presented in the eliminations column, as Eversource believes that the electric distribution segment acts as a principal, rather than an agent, in its contracts with retail customers. Retail customers contract directly with the electric distribution utility and do not differentiate between distribution and transmission services. Therefore, the electric distribution segment revenues, which are derived from retail customer billings, are presented gross of the eliminations. Prior to 2018, the electric distribution segment presented intercompany electric transmission billings net, based on indicators of net presentation prior to the new revenue guidance. See Note 15, "Revenues," regarding accounting for revenues.

The following table summarizes Eversource's segmented total assets:

Eversource
(Millions of Dollars)
Electric
Distribution

Natural Gas
Distribution
Electric
Transmission Water Distribution Other Eliminations Total
As of March 31, 2018 $ 21,167.9
$ 3,636.8
$ 9,833.2
$ 2,487.9
$ 16,586.5
$ (16,672.3 ) $ 37,040.0
As of December 31, 2017 19,250.4
3,595.2
9,401.2
2,470.0
15,933.8
(14,430.2 ) 36,220.4

~~17. ACQUISITION OF AQUARION~~

On December 4, 2017, Eversource acquired Aquarion from Macquarie Infrastructure Partners for $1.675 billion, a purchase price consisting of approximately $880 million in cash and $795 million of assumed Aquarion debt. Aquarion is a holding company primarily engaged, through its three separate regulated water utility subsidiaries, in the water collection, treatment and distribution business, and operates in Connecticut, Massachusetts and New Hampshire. These regulated utilities collect, treat and distribute water to residential, commercial and industrial customers, to other utilities for resale, and for private and municipal fire protection. Aquarion and its subsidiaries became wholly-owned subsidiaries of Eversource, and Eversource's consolidated financial information includes Aquarion and its subsidiaries' activity beginning December 4, 2017.

~~The approximate $880 million cash purchase price included the $745 million equity purchase price and a $135 million shareholder loan, paid at closing.~~

~~Purchase Price Allocation~~: The purchase price allocation reflects a measurement period adjustment recorded as of March 31, 2018 to revise the fair value of Aquarion's regulated debt. The $7.9 million increase to the fair value of Long-Term Debt and corresponding increase to Regulatory Assets, included within Other Noncurrent Assets, excluding Goodwill in the table below, will be amortized over the life of the related debt.

~~The preliminary allocation of the cash purchase price is as follows:~~

(Millions of Dollars)
Current Assets $ 41.2
PP&E 1,034.9
Goodwill 907.9
Other Noncurrent Assets, excluding Goodwill 215.5
Current Liabilities (121.9 )
Noncurrent Liabilities (421.6 )
Long-Term Debt (778.3 )
Total Cash Purchase Price $ 877.7



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

EVERSOURCE ENERGY AND SUBSIDIARIES

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

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, as well as the Eversource ~~2017~~2018 Form 10-K. References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."

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

The only common equity securities that are publicly traded are common shares of Eversource. The earnings and EPS of each business discussed below do not represent a direct legal interest in the assets and liabilities of such business but rather represent a direct interest in our assets and liabilities as a whole. EPS by business is a financial measure not recognized under GAAP calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. We use this non-GAAP financial measure to evaluate and provide details of earnings results by business. We believe that the non-GAAP presentation is a meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance by business. This non-GAAP financial measure should not be considered as an alternative to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as an indicator of operating performance.

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

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

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

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

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

substandard performance of third-party suppliers and service providers,

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

changes in business conditions, which could include disruptive technology related to our current or future business model,

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

contamination of, or disruption in, our water supplies,

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

changes in levels or timing of capital expenditures,

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

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

changes in accounting standards and financial reporting regulations,

actions of rating agencies, and

other presently unknown or unforeseen factors.

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

All such factors are difficult to predict and contain uncertainties that may materially affect our actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's ~~2017~~2018 combined Annual Report on Form 10-K. This combined Quarterly Report on Form 10-Q and Eversource's ~~2017~~2018 combined Annual Report on Form 10-K also describe material contingencies and critical accounting policies in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Combined Notes to Financial Statements. We encourage you to review these items.

Financial Condition and Business Analysis

Executive Summary

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

~~Results:~~Earnings Overview:

We earned $308.7 million, or $0.97 per share, in the first quarter of 2019, compared with $269.5 million, or $0.85 per share, in the first quarter of ~~2018, compared with $259.5~~2018.

Our electric distribution segment earned $120.1 million, or ~~$0.82~~$0.38 per share, in the first quarter of ~~2017.~~

~~Our electric distribution segment earned~~2019, compared with $104.2 million, or $0.33 per share, in the first quarter of ~~2018, compared with $114.1~~2018. Our electric transmission segment earned $118.2 million, or ~~$0.36~~$0.37 per share, in the first quarter of ~~2017. Our electric transmission segment earned~~2019, compared with $107.4 million, or $0.34 per share, in the first quarter of ~~2018, compared with $94.2~~2018. Our natural gas distribution segment earned $76.5 million, or ~~$0.30~~$0.24 per share, in the first quarter of ~~2017. Our natural gas distribution segment earned~~2019, compared with $57.8 million, or $0.18 per share, in the first quarter of ~~2018, compared with $50.8~~2018. Our water distribution segment earned $0.9 million ~~or $0.16 per share,~~ in the first quarter of ~~2017. Our water distribution segment earned~~2019, compared with $1.5 million in the first quarter of 2018.

Eversource parent and other companies had a net loss of $7.0 million in the first quarter of 2019, compared with a net loss of $1.4 million in the first quarter of ~~2018, compared with earnings of $0.4 million in the first quarter of 2017.~~2018.

Liquidity:

Cash flows provided by operating activities totaled $428.0 million in the first quarter of 2019, compared with $177.7 million in the first quarter of 2018, ~~compared with $445.3~~due primarily to the $166.5 million decrease in pension and PBOP cash contributions in the first quarter of ~~2017.~~2019, compared to the first quarter of 2018. Investments in property, plant and equipment totaled $674.7 million in the first quarter of 2019, compared with $607.3 million in the first quarter of ~~2018, compared with $523.6 million in the first quarter of 2017.~~2018. Cash ~~and cash equivalents~~ totaled ~~$303.8~~$35.1 million as of March 31, ~~2018,~~2019, compared with ~~$38.2~~$108.1 million as of December 31, ~~2017.~~2018.

~~In the first quarter of 2018, we~~On April 1, 2019, CL&P issued ~~$1.15 billion~~$300 million of new long-term ~~debt, consisting of $650 million by Eversource parent and $500 million by CL&P.~~debt. Proceeds from ~~these~~this new ~~issuances~~issuance were used primarily to repay short-term borrowings, ~~and~~which were previously used to repay, at maturity, $250 million of long-term debt ~~at maturity. In~~previously issued by CL&P that matured in the first quarter of ~~2018, Eversource repaid, at maturity, $150 million of previously issued long-term debt at Eversource parent.~~ 2019, and to fund capital expenditures and working capital.

On February ~~7, 2018,~~6, 2019, our Board of Trustees approved a common share dividend payment of ~~$0.505~~$0.535 per share, which was paid on March ~~30, 2018~~29, 2019 to shareholders of record as of March ~~6, 2018.~~ 5, 2019. On May ~~2, 2018,~~1, 2019, our Board of Trustees approved a common share dividend payment of ~~$0.505~~$0.535 per share, payable on June ~~29, 2018,~~28, 2019, to shareholders of record as of May ~~24, 2018.~~

23, 2019.

~~Strategic, Legislative, Regulatory, Policy and Other Items:~~

On March 30, 2018, the NHSEC released its written decision to deny Northern Pass’ siting application. NPT reviewed the written decision and filed a motion for rehearing with the NHSEC on April 27, 2018. On March 28, 2018, based on the NHSEC’s oral decision on February 1, 2018, the Massachusetts EDCs, in coordination with the DOER and an independent evaluator, notified Northern Pass that the EDCs had terminated its conditional selection and all contract negotiations.

On April 2, 2018, Bay State Wind submitted to DEEP its proposal, called Constitution Wind, to deliver approximately 200 MW of energy through the development of an offshore wind project in the Bay State Wind lease area, which is incremental to the projects proposed in the Massachusetts RFP.

On March 27, 2018, the FERC ALJ issued an initial decision in the fourth complaint, finding that the current base ROE of 10.57 percent, which has an incentive cap ROE of 11.74 percent, is not unjust and not unreasonable.

On April 18, 2018, PURA approved the CL&P distribution rate case settlement agreement, which included, among other things, rate increases of $64.3 million, $31.1 million, and $29.2 million, effective May 1, 2018, 2019, and 2020, respectively, an authorized regulatory ROE of 9.25 percent, 53 percent common equity in CL&P's capital structure, and a new capital tracker for capital expenditures and for capital additions for system resiliency and grid modernization. In addition, the rates charged to customers were adjusted to reflect the impacts of a lower federal income tax rate from the Tax Cuts and Jobs Act.

Earnings Overview

Consolidated: Below is a summary of our earnings by business, which also reconciles the non-GAAP financial measure of EPS by business to the most directly comparable GAAP measure of diluted ~~EPS, for the first quarter of 2018 and 2017.~~ EPS.


	For the Three Months Ended March 31,									For the Three Months Ended March 31,
	2018					2017				2019						2018
(Millions of Dollars, Except Per Share Amounts)	Amount			Per Share		Amount		Per Share		Amount			Per Share			Amount			Per Share
Net Income Attributable to Common Shareholders (GAAP)	$	269.5		$	0.85	$	259.5	$	0.82	$	308.7		$	0.97		$	269.5		$	0.85
Regulated Companies	$	270.9		$	0.85	$	259.1	$	0.82	$	315.7		$	0.99		$	270.9		$	0.85
Eversource Parent and Other Companies	(1.4		)	—		0.4		—		(7.0		)	(0.02		)	(1.4		)	—
Net Income Attributable to Common Shareholders (GAAP)	$	269.5		$	0.85	$	259.5	$	0.82	$	308.7		$	0.97		$	269.5		$	0.85

Regulated Companies: Our regulated companies comprise the electric distribution, ~~(including PSNH's remaining hydroelectric generation facilities and NSTAR Electric's solar power facilities),~~ electric transmission, natural gas distribution and water distribution segments. A summary of our segment earnings and EPS is as follows:


	For the Three Months Ended March 31,								For the Three Months Ended March 31,
	2018				2017				2019				2018
(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share
Electric Distribution	$	104.2	$	0.33	$	114.1	$	0.36	$	120.1	$	0.38	$	104.2	$	0.33
Electric Transmission	107.4		0.34		94.2		0.30		118.2		0.37		107.4		0.34
Natural Gas Distribution	57.8		0.18		50.8		0.16		76.5		0.24		57.8		0.18
Water Distribution	1.5		—		N/A		N/A		0.9		—		1.5		—
Net Income - Regulated Companies	$	270.9	$	0.85	$	259.1	$	0.82	$	315.7	$	0.99	$	270.9	$	0.85

Our electric distribution segment earnings ~~decreased $9.9~~increased $15.9 million in the first quarter of ~~2018,~~2019, as compared to the first quarter of ~~2017,~~2018, due primarily to ~~lower~~the impact of the CL&P base distribution rate increase effective May 1, 2018 and the recognition in 2019 of carrying charges on PSNH storm costs approved for recovery. The earnings increase was partially offset by the absence in 2019 of generation earnings at PSNH due to the sale of ~~PSNH's~~its thermal and hydroelectric generation assets ~~on January 10,~~in 2018, ~~higher non-tracked operations and maintenance expense,~~ higher depreciation expense and ~~higher property tax expense. The earnings decrease was partially offset by a~~ lower ~~effective tax rate resulting~~non-service income from ~~the Tax Cuts and Jobs Act.~~our benefit plans.

Our electric transmission segment earnings increased ~~$13.2~~$10.8 million in the first quarter ~~of 2018,~~2019, as compared to the first quarter of ~~2017,~~2018, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Our natural gas distribution segment earnings increased ~~$7.0~~$18.7 million in the first quarter of ~~2018,~~2019, as compared to the first quarter of ~~2017,~~2018, due primarily to anthe impact of the Yankee Gas base distribution rate increase effective November 15, 2018 and higher earnings from capital tracker mechanisms due to continued investment in ~~sales volumes~~infrastructure. Yankee Gas' decoupled rate structure is seasonally structured and ~~demand revenues driven by colder January weather~~provides greater earnings in ~~Connecticut in 2018, as compared to~~ the ~~same period in 2017, as well as growth in new customer base, and a lower effective tax rate resulting from the Tax Cuts and Jobs Act,~~winter heating months. The earnings increase was partially offset by higher operations and maintenance expense, higher property and other taxes expense, and higher depreciation expense.

Our water distribution segment earnings decreased $0.6 million in the first quarter of ~~2018 water distribution segment results reflect~~2019, as compared to the ~~earnings~~first quarter of ~~the Aquarion~~2018. Our water distribution business ~~which was acquired on December 4, 2017.~~is seasonal in nature, with lower earnings occurring during the winter months and higher earnings occurring during the summer months.

Eversource Parent and Other Companies: Eversource parent and other companies had a net loss of $7.0 million in the first quarter of 2019, compared with a net loss of $1.4 million in the first quarter of ~~2018, compared with earnings of $0.4 million in the first quarter of 2017.~~2018. The ~~decrease in earnings~~increased loss was due primarily to higher interest expense and a higher effective tax rate, partially offset by higher return at Eversource Service as a ~~lower effective tax rate resulting from the Tax Cuts~~result of increased investments in property, plant and ~~Jobs Act.~~equipment.

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

Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table below). For CL&P, NSTAR Electric, Yankee Gas, and NSTAR ~~Electric (effective February 1, 2018, as a result of the DPU-approved rate case decision),~~Gas, fluctuations in retail ~~electric~~ sales volumes do not impact earnings due to their respective regulatory ~~commission approved~~commission-approved distribution revenue decoupling mechanisms ("Decoupled" in the table below). These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized. ~~For further information on NSTAR Electric's rate case, See "Regulatory Developments and Rate Matters - Massachusetts - NSTAR Electric Distribution Rate Case Decision" in this~~ ~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~.

CL&P and NSTAR Electric reconcile their annual base distribution rate recovery amounts to their respective pre-established levels of baseline distribution delivery service revenues of approximately $1.1 billion (effective May 1, 2018) and $947 million, respectively. Any difference between the allowed level of distribution revenue and the actual amount realized during a 12-month period is adjusted through rates in the following period.

Fluctuations in natural gas sales volumes in Connecticut impact earnings ("Traditional" in the table below). In Massachusetts, fluctuations in natural gas sales volumes do not impact earnings due to the DPU-approved natural gas distribution revenue decoupling mechanism approved in the last NSTAR Gas rate case decision ("Decoupled" in the table below). These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized.

Fluctuations in water sales volumes largely do not impact earnings as our Connecticut water distribution business is also decoupled.

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

For the Three Months Ended March 31, 2018 Compared to 2017
Electric Firm Natural Gas Water
Sales Volumes (GWh) Percentage
Increase/
(Decrease) Sales Volumes (MMcf) Percentage
Increase/
(Decrease) Sales Volumes (MG) Percentage
Increase/
(Decrease)
2018
2017 ⁽¹⁾
2018 2017 2018
2017 ⁽²⁾

Traditional:
Residential 1,543
1,404
9.9 % 7,429
7,093
4.7 % 313
285
9.8 %
Commercial 1,908
1,881
1.4 % 9,000
8,409
7.0 % 92
85
8.2 %
Industrial 396
415
(4.6 )% 4,044
3,403
18.8 % 62
62
— %
Total – Traditional 3,847
3,700
4.0 % 20,473
18,905
8.3 % 467
432
8.1 %

Decoupled:
Residential 4,097
4,020
1.9 % 10,773
10,185
5.8 % 2,926
2,986
(2.0 )%
Commercial 4,484
4,649
(3.5 )% 9,460
9,130
3.6 % 1,204
1,218
(1.1 )%
Industrial 793
803
(1.2 )% 1,640
1,709
(4.0 )% 227
237
(4.2 )%
Total – Decoupled 9,374
9,472
(1.0 )% 21,873
21,024
4.0 % 4,357
4,441
(1.9 )%
Special Contracts ⁽³⁾
N/A
N/A
N/A
833
1,217
(31.6 )% N/A
N/A
N/A
Total - Decoupled and Special Contracts 9,374
9,472
(1.0 )% 22,706
22,241
2.1 % 4,357
4,441
(1.9 )%
Total Sales Volumes 13,221
13,172
0.4 % 43,179
41,146
4.9 % 4,824
4,873
(1.0 )%



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

⁽¹⁾

~~In 2017 and in the month of January 2018, NSTAR Electric operated under two different rate structures (traditional and decoupled) based on its service territory geography.~~

Effective February 1, 2018, NSTAR Electric operated entirely under a decoupled rate structure. The ~~2017~~2018 sales volumes for NSTAR Electric have been recast to present January ~~2017 as traditional and February through March 2017~~2018 as decoupled to conform to the ~~2018 presentation for comparative purposes.~~current year presentation.


⁽²⁾	~~Eversource acquired its water distribution business on December 4, 2017. Prior year~~ Effective November 15, 2018, Yankee Gas operated under a decoupled rate structure. The 2018 sales volumes for Yankee Gas have been ~~presented for comparative purposes.~~recast to present 2018 as decoupled to conform to the current year presentation.


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

Retail electric sales volumes at our electric utilities with a traditional rate structure were higher in the first quarter of 2018, as compared to the first quarter of 2017, due primarily to colder weather in January 2018, which was partially offset by milder weather in February and March of 2018, as compared to the same periods in 2017. Heating degree days in January of 2018 were 21.7 percent higher in the Boston metropolitan, and for the first quarter of 2018 were 1.2 percent higher in New Hampshire, as compared to the same periods in 2017.

On January 28, 2016, the DPU approved a three-year energy efficiency plan for NSTAR Electric in Massachusetts, which included recovery of LBR in its eastern Massachusetts service territory until LBR was covered under a decoupled rate structure, which occurred on February 1, 2018. NSTAR Electric recognized LBR of $6.0 million in January 2018, compared to $17.2 million in the first quarter of 2017, and no longer has an LBR mechanism effective February 1, 2018.

Our firm natural gas sales volumes are subject to many of the same influences as our retail electric sales volumes. In addition, they have benefited from customer growth at both of our natural gas distribution companies. Consolidated firm natural gas sales volumes were higher in the first quarter of 2018, as compared to the first quarter of 2017, due primarily to colder weather in January 2018. Heating degree days for the first quarter of 2018 were 2.3 percent higher in Connecticut, as compared to the same period in 2017.

Liquidity

~~Consolidated:~~ Cash ~~and cash equivalents~~ totaled ~~$303.8~~$35.1 million as of March 31, ~~2018,~~2019, compared with ~~$38.2~~$108.1 million as of December 31, 2017. The increase in Cash and cash equivalents was due to the CL&P $500 million long-term debt issuance on March 28, 2018 that was primarily used to redeem $300 million of long-term debt that matured on May 1, 2018.

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

⁽¹⁾ ~~Represents a repayment at maturity paid on May 1, 2018.~~

⁽²⁾ ~~These notes are part of the same series issued by Eversource parent in March 2016. The aggregate outstanding principal amount for these notes is now $450 million.~~

⁽³⁾ ~~Represents a repayment at maturity paid on January 15, 2018.~~

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.~~facility, which terminates on December 8, 2023. The revolving credit facility ~~terminates on December 8, 2022 and~~ serves to backstop NSTAR Electric's $650 million commercial paper program.

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



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

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

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



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


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

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

Cash Flows: Cash flows provided by operating activities totaled $428.0 million in the first quarter of 2019, compared with $177.7 million in the first quarter of ~~2018, compared with $445.3 million in the first quarter of 2017.~~2018. The ~~decrease~~increase in operating cash flows was due primarily to ~~an increase of $125.5~~the $166.5 million decrease in ~~Pension~~pension and PBOP ~~Plan~~ cash contributions made in ~~2018, as~~the first quarter of 2019 compared to ~~2017, cash~~the first quarter of 2018, approximately $70 million of storm restoration cost payments made ~~for storm restoration costs~~in the first quarter of ~~approximately $70~~2018, and the timing of accounts payable cash payments. Also contributing to the increase were tax refunds received in the first quarter of 2019 of $52.6 million, compared to tax payments of $11.5 million in 2018. Partially offsetting these favorable impacts were the timing of collections ~~of accounts receivable,~~for regulatory tracking mechanisms and ~~the change in income tax payments. Partially offsetting these decreases was~~ the timing of ~~regulatory recoveries.~~cash collections and payments related to other working capital items.

On February ~~7, 2018,~~6, 2019, our Board of Trustees approved a common share dividend payment of ~~$0.505~~$0.535 per share, which was paid on March ~~30, 2018~~29, 2019 to shareholders of record as of March ~~6, 2018.~~5, 2019. In the first quarter of ~~2018,~~2019, we paid cash dividends of ~~$160.0~~$169.8 million, compared with ~~$150.5~~$160.0 million paid in the first quarter of ~~2017.~~2018. On May ~~2, 2018,~~1, 2019, our Board of Trustees approved a common share dividend payment of ~~$0.505~~$0.535 per share, payable on June ~~29, 2018,~~28, 2019, to shareholders of record as of May ~~24, 2018.~~23, 2019.

In the first quarter of ~~2018,~~2019, CL&P, NSTAR Electric and PSNH paid ~~$60.0~~$99.0 million, ~~$161.0~~$60.6 million, and ~~$150.0~~$19.0 million, respectively, in common stock dividends to Eversource parent.

Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP expense. In the first quarter of ~~2018,~~2019, investments for Eversource, CL&P, NSTAR Electric, and PSNH were ~~$607.3~~$674.7 million, ~~$202.1~~$189.4 million, ~~$192.0~~$208.5 million, and ~~$72.3~~$110.9 million, respectively.

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

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



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

Business Development and Capital Expenditures

Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP expense (all of which are non-cash factors), totaled $603.1 million in the first quarter of 2019, compared to $496.2 million in the first quarter of ~~2018, compared to $446.4~~2018. These amounts included $49.3 million and $30.9 million in the first quarter of ~~2017. These amounts included $30.9 million~~2019 and ~~$21.5 million in the first quarter of~~ 2018, ~~and 2017,~~ respectively, related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company.

~~Offshore Wind Projects:~~ Bay State Wind is a proposed offshore wind project being jointly developed by Eversource and Denmark-based Ørsted. Bay State Wind will be located in a 300-square-mile area of the Atlantic Ocean approximately 25 miles off the coast of Massachusetts that has the ultimate potential to generate at least 2,000 MW of clean, renewable energy. Eversource and Ørsted each hold a 50 percent ownership interest in Bay State Wind.

In August 2016, Massachusetts passed clean energy legislation that requires EDCs to jointly solicit RFPs and enter into long-term contracts for offshore wind, creating RFP opportunities for projects like Bay State Wind. On June 29, 2017, the Massachusetts RFP was issued, seeking bids for a minimum of 400 MW of offshore wind capacity. The RFP stated that bids of up to 800 MW would be considered, provided they demonstrated significant net economic benefits to customers. On December 20, 2017, Bay State Wind submitted two proposals, one for 400 MW and the other for 800 MW, in response to the Massachusetts clean energy RFP. On April 17, 2018, in response to a request to update pricing as a result of the Tax Cuts and Jobs Act, Bay State Wind submitted a revised pricing proposal reflecting those impacts.

On January 31, 2018, DEEP issued a RFP seeking proposals for certain Class I energy sources. This RFP included a call for proposals providing up to 825,000 MWh per year (approximately 200 MW) of offshore wind energy. On April 2, 2018, Bay State Wind submitted to DEEP its proposal, called Constitution Wind, to deliver approximately 200 MW of energy through the development of an offshore wind project in the Bay State Wind lease area, which is incremental to the projects proposed in the Massachusetts RFP.

For more information regarding the clean energy legislation, see "Regulatory Developments and Rate Matters – Connecticut – Clean Energy RFP" and "Regulatory Developments and Rate Matters – Massachusetts – Massachusetts RFPs" in this ~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~.

Electric Transmission Business:

Our consolidated electric transmission business capital expenditures increased by ~~$31.3~~$3.9 million in the first quarter of ~~2018,~~2019, as compared to the first quarter of ~~2017.~~2018. A summary of electric transmission capital expenditures by company is as follows:


	For the Three Months Ended March 31,				For the Three Months Ended March 31,
(Millions of Dollars)	2018		2017		2019		2018
CL&P	$	101.1	$	79.9	$	112.2	$	101.1
NSTAR Electric	53.7		57.8		59.3		53.7
PSNH	33.4		21.6		27.7		33.4
NPT	12.1		9.7		5.0		12.1
Total Electric Transmission Segment	$	200.3	$	169.0	$	204.2	$	200.3

Northern Pass: Northern Pass is Eversource's planned 1,090 MW HVDC transmission line that will interconnect from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire.

Northern Pass has achieved several key milestones to date, including receiving the ~~following:~~

~~Receiving NHPUC approval on February 12, 2018 for the proposed lease~~majority of ~~certain land~~federal, state and ~~easement rights from PSNH~~Canadian permits required to ~~NPT, concluding that the lease is~~be constructed and placed in ~~the public interest;~~

~~Receiving the U.S. Forest Service Record~~service to ultimately provide delivery of ~~Decision on January 5, 2018, which allows NPT to install approximately 11 miles of underground transmission lines in areas along existing roads through the White Mountain National Forest;~~

~~Receiving the Province of Québec permit granted to HQ on December 21, 2017 to construct the hydroelectric transmission line that will connect at the border of New Hampshire;~~

~~Receiving the DOE Record of Decision and Presidential Permit on November 16, 2017, which will allow construction of transmission facilities at the Québec-New Hampshire border; and~~

Receiving the DOE final Environmental Impact Statement issued on August 10, 2017, which concluded that the proposed Northern Pass route is the preferred alternative, providing substantial benefits with only minimal impacts.hydropower. Three permits remain outstanding.

On January 25, 2018, Northern Pass was selected ~~from the 46 proposals submitted~~ as the winning bidder in the Massachusetts ~~clean energy request~~Clean Energy Request for ~~proposal~~Proposals ("RFP"),. In March 2018, the New Hampshire Site Evaluation Committee ("NHSEC") issued a written decision denying Northern Pass’ siting application after which ~~successfully positioned~~the Massachusetts EDCs revoked the selection of, and terminated contract negotiations with, Northern Pass ~~to provide a firm delivery of hydropower to Massachusetts.~~under the Massachusetts Clean Energy RFP. On ~~February 1,~~July 12, 2018, the NHSEC ~~voted to deny Northern Pass’ siting application. On March 30, 2018, the NHSEC released its~~issued a written decision confirming this denial. NPT reviewed the written decision and filed a motion for rehearing with the NHSEC on April 27, 2018. On March 28, 2018, the Massachusetts EDCs, in coordination with the DOER and an independent evaluator, notified Northern Pass that the EDCs had terminated its conditional selection and all contract negotiations.

~~As of March 31, 2018, we had approximately $289 million in capitalized costs associated with Northern Pass. The NHSEC~~ decision denying Northern ~~Pass' siting application caused us~~Pass’ April 2018 motion for rehearing. On October 12, 2018, the New Hampshire Supreme Court accepted an appeal filed by NPT, which alleged that the NHSEC failed to follow applicable law in its review of the ~~recoverability~~project. Subsequently, the NHSEC transmitted the record of ~~our Northern Pass project costs. In this recoverability review, we estimated undiscounted expected project cash flows and compared~~its proceedings to the ~~result to our estimated project costs to determine whether~~New Hampshire Supreme Court on December 11, 2018. Briefing of the ~~recorded amount is recoverable. Our undiscounted cash flows were substantially in excess of our estimated project costs. We completed this analysis~~appeal began on February 4, 2019 and concluded ~~that our project costs are recoverable based~~ on ~~our expectation that~~April 10, 2019. The New Hampshire Supreme Court will hear oral arguments on May 15, 2019 and a decision is expected later this year. NPT intends to continue to pursue NHSEC approval to construct the ~~Northern Pass project remains probable of being placed in service.~~project.

Consistent with Eversource’s and HQ’s long-term relationship to bring clean energy into New England, Eversource and HQ remain committed to Northern Pass and the many benefits this project will bring to our customers and the region. We continue to believe that our project costs are recoverable based on our expectation that the Northern Pass project remains probable of being placed in service. If, as a result of future events and changes in circumstances, a ~~new~~future recoverability review were to conclude that our project costs are not recoverable, then we would reduce Northern ~~Pass~~Pass' project costs to the estimated fair value, which could result in most of our ~~$289~~$311 million of capitalized project costs being ~~written off.~~impaired. Such ~~a write off~~an impairment could have a material adverse effect on our financial position and results of operations.

For more information regarding the Massachusetts clean energy RFP, see "Regulatory Developments and Rate Matters - Massachusetts -Massachusetts RFPs" in this Management's Discussion and Analysis of Financial Condition and Results of Operations.

Greater Boston Reliability ~~Solution~~Solution:~~: In February 2015, ISO-NE selected the~~ The Greater Boston and New Hampshire ~~Solution (the "Solution"), proposed by Eversource and National Grid, to satisfy the requirements identified in the Greater Boston study. The~~ Solution consists of a portfolio of electric transmission upgrades in southern New Hampshire and northern Massachusetts and continuing into the greater Boston metropolitan area, of which 28 upgrades are in Eversource's service ~~territory. The NHSEC issued its written order approving the~~territory (two in New Hampshire ~~upgrades on October 4, 2016. All of the~~and 26 in Massachusetts). The two New Hampshire upgrades, including the Merrimack Valley Reliability Project, have been ~~completed~~placed in service and 16 Massachusetts upgrades have been placed in service. Seven upgrades are under construction and one upgrade is expected to enter construction in the second quarter of 2019. We ~~are currently pursuing the necessary regulatory and siting application approvals in Massachusetts. To date, we have received~~anticipate approval ~~for four of these projects~~ from the Massachusetts Energy Facilities Siting ~~Board. Construction has also begun~~Board on ~~multiple smaller~~the two remaining projects ~~several~~in the second quarter of ~~which have been placed in service. All~~2019. Most upgrades are expected to be completed by the end of 2019. Four projects are expected to be in service by the end of 2020 and another project by mid-2021. We estimate our portion of the investment in the Solution will be approximately $560 million, of which ~~$254.1~~$369.0 million has been spent and capitalized through March 31, ~~2018.~~2019.

GHCC: The Greater Hartford Central Connecticut ("GHCC") projects, which have been approved by ISO-NE, consist of 27 projects with an expected investment of approximately $350 ~~million that~~million. As of March 31, 2019, 23 projects have been placed in service, and four projects are in active construction and are expected to be placed in service through 2019. As of March 31, ~~2018, 18 projects have been placed in service, and six projects are in active construction. As of March 31, 2018,~~2019, CL&P had spent and capitalized ~~$216.0~~$240.0 million in costs associated with GHCC.

Seacoast Reliability Project: On April 12, 2016, PSNH filed a siting application with the NHSEC for the Seacoast Reliability Project, a 13-mile, 115kV transmission line within several New Hampshire communities, which proposes to use a combination of overhead, underground and underwater line ~~design~~designs to help meet the growing demand for electricity in the Seacoast region. ~~In June 2016,~~On December 10, 2018, the NHSEC ~~accepted the application as complete. On February 28, 2018, the New Hampshire Department of Environmental Services issued a final decision and recommended~~indicated its unanimous approval of the ~~application to the NHSEC. As a result,~~project, and subsequently issued its written decision on January 31, 2019. On April 11, 2019, the NHSEC issued its written decision ~~is expected~~denying motions for rehearing submitted by three entities that intervened in ~~late 2018 or early 2019.~~the proceeding. This project is scheduled to be completed by the end of 2019. We estimate the investment in this project to be approximately $84 million, of which PSNH had spent and capitalized ~~$25.5~~$32.2 million in costs through March 31, ~~2018.~~2019.

Distribution Business:

A summary of distribution capital expenditures is as follows:


	For the Three Months Ended March 31,														For the Three Months Ended March 31,
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		Total Electric		Natural Gas		Water		Total		CL&P		NSTAR Electric		PSNH		Total Electric		Natural Gas		Water		Total
2019
Basic Business															$	33.3	$	66.8	$	8.1	$	108.2	$	11.2	$	2.1	$	121.5
Aging Infrastructure															45.2		43.0		25.4		113.6		53.2		13.0		179.8
Load Growth and Other															14.3		17.4		3.9		35.6		10.0		0.4		46.0
Total Distribution															92.8		127.2		37.4		257.4		74.4		15.5		347.3
Solar															—		2.3		—		2.3		—		—		2.3
Total															$	92.8	$	129.5	$	37.4	$	259.7	$	74.4	$	15.5	$	349.6
2018
Basic Business	$	49.8	$	38.7	$	17.6	$	106.1	$	10.0	$	2.2	$	118.3	$	49.8	$	38.7	$	17.6	$	106.1	$	10.0	$	2.2	$	118.3
Aging Infrastructure	22.7		20.1		19.9		62.7		28.7		9.2		100.6		22.7		20.1		19.9		62.7		28.7		9.2		100.6
Load Growth and Other	13.3		2.7		3.6		19.6		4.7		0.4		24.7		13.3		2.7		3.6		19.6		4.7		0.4		24.7
Total Distribution	85.8		61.5		41.1		188.4		43.4		11.8		243.6		85.8		61.5		41.1		188.4		43.4		11.8		243.6
Generation	—		21.0		0.4		21.4		—		—		21.4
Solar and Generation															—		21.0		0.4		21.4		—		—		21.4
Total	$	85.8	$	82.5	$	41.5	$	209.8	$	43.4	$	11.8	$	265.0	$	85.8	$	82.5	$	41.5	$	209.8	$	43.4	$	11.8	$	265.0

2017
Basic Business	$	42.9	$	35.3	$	17.8	$	96.0	$	15.8	N/A		$	111.8
Aging Infrastructure	40.6		18.9		19.4		78.9		29.0		N/A		107.9
Load Growth and Other	9.5		13.5		4.3		27.3		6.0		N/A		33.3
Total Distribution	93.0		67.7		41.5		202.2		50.8		N/A		253.0
Generation	—		0.6		2.3		2.9		—		N/A		2.9
Total	$	93.0	$	68.3	$	43.8	$	205.1	$	50.8	N/A		$	255.9

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

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

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

Offshore Wind Business: Our offshore wind business includes ownership interests in key offshore wind assets in the Northeast, including contracts for the Revolution Wind and South Fork Wind projects. Our offshore wind projects are being developed in partnership with Ørsted.

This business also participates in opportunities for future solicitations for offshore wind in the Northeast U.S.

On February 8, 2019, Eversource and Ørsted entered into a 50-50 partnership for key offshore wind assets in the Northeast. Eversource's initial payment and contribution under the terms of the partnership agreements totaled approximately $225 million for a 50 percent interest in North East Offshore LLC, which holds the Revolution Wind and South Fork Wind power projects, as well as a 257-square-mile tract off the coasts of Massachusetts and Rhode Island.

This transaction augments our existing 50-50 partnership with Ørsted for Bay State Wind. Bay State Wind is located on a separate 300-square-mile ocean tract adjacent to the North East Offshore area. Together, the Bay State Wind and the North East Offshore lease sites jointly-owned by Eversource and Ørsted could eventually host at least 4,000 MW of offshore wind generation.

Eversource and Ørsted have jointly participated, or expect to participate, in the following opportunities for future solicitations for offshore wind based on each state's clean energy requirements:

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

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

Revolution Wind and South Fork Wind: Revolution Wind is a 700 MW offshore wind power project, located approximately 15 miles south of the Rhode Island coast, that will deliver power to Rhode Island (400 MW) and Connecticut (300 MW). The Revolution Wind project was selected under Connecticut and Rhode Island RFPs based on each state's clean energy requirements. In Connecticut, 20-year power purchase agreements for a total of 200 MW were executed and have been approved by the PURA. In Rhode Island, a 20-year power purchase agreement for 400 MW was executed and is awaiting regulatory approval. The remaining 100 MW was awarded in the Connecticut RFP, and a power purchase agreement is currently under negotiation with the electric distribution companies.

South Fork Wind is a 130 MW offshore wind power project, located approximately 35 miles east of Long Island, that will interconnect into eastern Long Island where it will deliver power to the Long Island Power Authority households. The South Fork Wind project was selected by the Long Island Power Authority, and a 20-year power purchase agreement for 90 MW was executed. Subsequently, the Long Island Power Authority agreed to expand the original power purchase agreement to 130 MW through an amendment to the original agreement. Negotiations are currently underway to finalize this amendment.

South Fork Wind is expected to be commissioned by the end of 2022, and Revolution Wind is expected to be commissioned in 2023. The completion dates are subject to permitting, engineering, siting and finalizing power purchase agreements, where applicable.

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

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

FERC Regulatory Matters

FERC ROE Complaints: Four separate complaints have been 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 ~~maximum ROE for transmission~~ incentive ~~("incentive cap")~~cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the "Court").

All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of March 31, ~~2018.~~2019. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, ~~2018.~~2019.

InOn October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the ~~fourth~~issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. The parties to these proceedings were directed to submit briefs on this new proposed framework and how they would apply the proposed framework in each of the four complaint proceedings. Initial briefs were filed ~~April 29, 2016,~~by the NETOs, Complainants ~~challenged~~and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the ~~NETOs'~~overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.

The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those preliminary calculations indicated that for the first complaint period, for the NETOs that FERC concludes are of average financial risk, (1) a preliminary range of presumptively just and reasonable base ROEs is 9.60 percent to 10.99 percent; (2) the pre-existing base ROE of ~~10.57~~11.14 percent is therefore unjust and unreasonable; (3) the preliminary just and reasonable base ROE is 10.41 percent; and (4) the preliminary incentive cap on total ROE is 13.08 percent.

If the results of ~~11.74~~these illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent ~~asserting~~base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods.

Although the order provided illustrative calculations, FERC stated that these ~~ROEs were unjust~~calculations are merely preliminary. The FERC’s preliminary calculations are not binding and ~~unreasonable. Hearings~~do not represent what we believe to be the most likely outcome of a final FERC order, as changes to the methodology by FERC are possible as a result of the parties’ arguments and calculations in the briefing process. Until FERC issues a final decision on the fourth complaint were held in December 2017 before the FERC Administrative Law Judge ("ALJ"). On March 27, 2018, the FERC ALJ issued an initial decision in that complaint, finding that the current base ROEeach of ~~10.57 percent, which has an incentive cap ROE of 11.74 percent,~~these four complaints, there is ~~not unjust~~significant uncertainty, and ~~not unreasonable.~~

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

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

FERC Notices of Inquiry: On March 21, 2019, FERC issued two Notices of Inquiry ("NOI") that may affect Eversource transmission ROEs and incentives. One NOI seeks comments from all stakeholders on FERC's policies for evaluating ROEs for electric public utilities, and interstate natural gas and oil pipelines. The other NOI seeks comments on FERC's policies for implementing electric transmission incentives. Initial comments on both NOIs are due in June 2019 with reply comments due in July 2019. At this time, Eversource cannot predict how these NOIs will affect its ROEs or incentives.

Regulatory Developments and Rate Matters

Electric, Natural Gas and Water Utility Base Distribution Rates:

The regulated companies’ distribution rates are set by their respective state regulatory commissions, and their tariffs include mechanisms for periodically adjusting their rates for the recovery of specific incurred costs. Other than as described below, for the first quarter of ~~2018,~~2019, changes made to the regulated companies’ rates did not have a material impact on their earnings, financial position, or cash flows. For further information, see "Financial Condition and Business Analysis – Regulatory Developments and Rate Matters" included in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource ~~2017~~2018 Form 10-K.

U.S. Federal Corporate Income Taxes:

On December 22, 2017, the Tax Cuts and Jobs Act became law, which amended existing federal tax rules ~~and included numerous provisions that impacted corporations. In particular, this act reduced~~to reduce the U.S. federal corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. For our regulated companies, the most significant changes ~~will be~~are (1) the benefit of incurring a lower federal income tax expense ~~which we expect to be passed back to customers,~~ and (2) the ~~provisional regulated~~reduction in ADIT liabilities (now excess ADIT ~~liabilities that we expect will benefit our customers in future periods,~~or EDIT), which ~~were~~are estimated to be approximately $2.9 billion and ~~recognized as~~included in regulatory liabilities as of March 31, ~~2018.~~

~~We are currently working with our state~~2019. The refund of these EDIT regulatory ~~commissions, who have opened investigations~~liabilities to ~~examine~~customers will generally be made over the ~~impact~~same period as the remaining useful lives of ~~this act on customer rates. As part~~the underlying assets that gave rise to the ADIT liabilities. The refund of ~~this regulatory process, each~~EDIT has begun at several of our ~~utility~~distribution companies ~~is quantifying, or has quantified, the refund amount being deferred in current rates and the excess ADIT,~~ and is ~~working on proposals with estimated timing to~~reflected in rates. The refund ~~these amounts~~ to customers ~~which will be, or have already been, submitted~~results in ~~filings to~~lower Revenues on the ~~state regulatory commissions. On March 15, 2018, the FERC issued a notice requesting comments from FERC-regulated utilities on whether~~statements of income, and ~~how the FERC should address changes in ADIT~~lower current tax expense as a result of ~~this act. Effective January 1, 2018, the transmission formula rates were updated to reflect~~ the lower ~~income tax expense that resulted from~~revenue and the ~~act's~~amortization of the EDIT regulatory liabilities, both of which are recognized as a reduction to Income Tax Expense on the ~~U.S. corporate federal income~~statements of income. The refund of EDIT results in a lower effective tax rate ~~which impacts only the revenue we currently bill customers, not the excess ADIT.~~

~~We will continue to evaluate the impacts of the Tax Cuts~~ and ~~Jobs Act~~no impact on our statement of financial position, results of operations, and cash flows. The impacts will vary depending on the ultimate amount and timing of when certain income tax benefits will benefit our customers, and will vary by jurisdiction.

~~Major Storms:~~

A storm must meet certain criteria to qualify as a major storm with the criteria specific to each state jurisdiction and utility company. Once a storm qualifies as a major storm, all qualifying expenses incurred during storm restoration efforts are deferred and recovered from customers. In March 2018, several significant storms caused extensive damage to our electric distribution systems and significant customer outages across all three states, resulting in deferred storm restoration costs of approximately $156 million ($52 million for CL&P, $100 million for NSTAR Electric, and $4 million for PSNH). Management believes the storm restoration costs were prudent and meet the criteria for specific cost recovery in Connecticut, Massachusetts and New Hampshire, and that recovery from customers is probable through the applicable regulatory recovery process.net income.

Connecticut:

CL&P ~~Rate Case Settlement:~~Storm Filing: ~~On April 18, 2018, PURA~~CL&P's approved ~~the distribution~~ rate case settlement agreement that was reached by CL&P, the Prosecutorial Unit of PURA, and the OCC on December 15, 2017, as amended on March 23, 2018. The distribution rate case settlement agreement included, among other things, rate increases of $64.3 million, $31.1 million, and $29.2 million, effective May 1,in 2018 2019, and 2020, respectively, an authorized regulatory ROE of 9.25 percent, 53 percent common equity in CL&P's capital structure, and a new capital tracker for capital expenditures and for capital additions for system resiliency and grid modernization. In addition, the rates charged to customers were adjusted to reflect the impacts of a lower federal income tax rate from the Tax Cuts and Jobs Act. Amounts related to the excess ADIT liabilities will be addressed in a separate proceeding. The settlement agreement also incorporated $18.6 million of rate base recovery for catastrophic storms occurring after December 31, 2016, subject to a future storm filing. On November 16, 2018, CL&P filed for recovery of $153 million of storm costs incurred from October 2017 through May 2018, with recovery over six years to begin May 1, 2019. Through the course of the proceeding, CL&P updated its request to $145.5 million to reflect final invoicing and capitalization amounts. On April 17, 2019, PURA authorized recovery of $141.0 million as part of storm cost recovery and the remainder to be recorded to capital or other balance sheet accounts.

Clean Energy ~~RFP:~~RFP: On ~~January 31,~~December 28, 2018, ~~pursuant to Section 8 of~~under Public Act ~~13-303,~~17-3, "An Act Concerning Connecticut's Clean Energy Goals," as amended by Section 10 of Public Act 17-144, "An Act Promoting the Use of Fuel Cells for Electric Distribution System Benefits and Reliability and Amending Various Energy-Related Programs and Requirements,Zero Carbon Procurement," DEEP ~~issued~~selected the ~~Connecticut Clean Energy RFP, seeking bids~~Millstone Nuclear Power Station generation facility, along with smaller generation facilities, in DEEP’s zero-carbon request for proposal. CL&P and UI were directed by DEEP to enter into ten-year contracts to purchase a combined total of approximately 9 million MWh annually from ~~developers~~the Millstone generation facility. On March 15, 2019, CL&P and UI each signed a ten-year contract with the owner of ~~qualified offshore wind, fuel cell and anaerobic digestion Class I resources. The maximum authorized procurement for qualified clean energy and RECs is 899,250 MWh per year,~~Millstone Nuclear Power Station in order to purchase a combined amount of which no more than 825,000 MWh per year may be provided by offshore wind, which in aggregate is the equivalent to the output of an approximate 200 MW facility. Energy deliveries under any resulting agreement must begin no earlier than July 1, 2019 and no later than December 31, 2025. The Connecticut EDC's, including CL&P, will be partapproximately 50 percent of the ~~evaluation team responsible~~facility's output (approximately 40 percent by CL&P). The Millstone Nuclear Power Station has a 2,112 MW nameplate capacity. The parties filed the contract with PURA on March 29, 2019 for ~~conducting an evaluation~~review and ~~ranking bids received.~~approval. A decision from PURA is expected in the third quarter of 2019.

On April 2, 2018, Eversource and Ørsted submitted a proposal to the DEEP to deliver approximately 200 MW of energy and RECs from Constitution Wind, an offshore wind project to be developed in the Bay State Wind lease area. Constitution Wind is incremental to the Bay State Wind project proposed in Massachusetts. SelectionThe significant output of the ~~winning proposals~~generation facility, the contract period, and the pricing will result in a significant multi-billion dollar commitment. We plan to sell the energy purchased under this contract into the market and use the proceeds from these energy sales to offset the contract costs. As the net costs under this contract will be ~~announced~~recovered from customers in ~~June 2018 with~~future rates, the contract ~~execution in~~will not have an impact on the ~~summer~~net income of ~~2018.~~CL&P.

Massachusetts:

~~NSTAR Electric Distribution Rate Case Decision:~~Hingham Condemnation: On ~~November 30, 2017,~~April 22, 2019, the ~~DPU issued~~town of Hingham, Massachusetts voted to acquire the water system and treatment plant that supply the towns of Hingham, Hull and north Cohasset with water. The acquisition price is currently estimated to be more than $100 million, subject to adjustment based on actual capital investments as legally required and other future closing adjustments. Aquarion will continue to operate the water system during the transition period until the sale occurs. The Company is evaluating the impact of the sale on its ~~decision~~financial statements, which will be recorded when the sale transaction occurs. No loss is expected. The transaction is expected to close by the end of 2019. As of March 31, 2019, these water distribution assets were included within Property, Plant and Equipment, Net on the balance sheet and were also reflected in the NSTAR Electric distribution rate case, which approved an annual distribution rate increase of $37 million, with rates effective February 1, 2018. On January 3, 2018, NSTAR Electric filed a motion to reflect a revenue requirement reduction of $56 million (due to the decrease in the federal corporate income tax rate, as part of the Tax CutsWater Distribution segment and Jobs Act), resulting in an annual net decrease in rates of $19 million. NSTAR Electric’s new rates took effect on February 1, 2018, following approval of NSTAR Electric’s compliance filing on February 2, 2018. The DPU also approved, in part, NSTAR Electric's request for recalculation, resulting in an increase in the approved revenue requirement of $3.5 million, effective March 1, 2018. reporting unit.

In addition to its decision regarding rates, the DPU approved an authorized regulatory ROE of 10 percent, the establishment of a revenue decoupling rate mechanism for the portion of the NSTAR Electric business that did not previously have a decoupling mechanism, and the implementation of an inflation-based adjustment mechanism with a five-year stay-out until January 1, 2023. Among other items, the DPU approved the recovery of previously expensed merger-related costs over a 10-year period and the recovery of previously deferred storm costs with carrying charges at the prime rate, but disallowed certain property tax costs.

~~Massachusetts RFPs:~~ On March 31, 2017, pursuant to a comprehensive energy law enacted in 2016, "An Act to Promote Energy Diversity," the Massachusetts EDCs, including NSTAR Electric, and the DOER issued a joint RFP for 9.45 terawatt hours of clean energy per year, such as hydropower, land-based wind or solar. The RFP sought proposals for long-term contracts of 15 to 20 years to provide the state's EDCs with clean energy generation with a submission due date on July 27, 2017.

On January 25, 2018, the Northern Pass project was selected from the 46 proposals submitted as a winning bidder. On February 1, 2018, the NHSEC voted to deny Northern Pass' siting application and on March 30, 2018, the NHSEC released its written decision confirming this denial. On March 28, 2018, the Massachusetts EDCs, in coordination with the DOER and an independent evaluator, notified Northern Pass that the EDCs had terminated its conditional selection and all contract negotiations. See "Business Development and Capital Expenditures - Northern Pass" in this ~~Management's Discussion and Analysis of Financial Condition and Results of Operations, for more information.~~

On June 29, 2017, pursuant to the Act to Promote Energy Diversity, the Massachusetts EDCs, including NSTAR Electric, and the DOER issued a joint RFP for long-term contracts for offshore wind energy projects, seeking bids for a minimum of 400 MW of offshore wind capacity. The RFP stated that bids of up to 800 MW would be considered, provided they demonstrate significant net economic benefits to customers. On December 20, 2017, Bay State Wind submitted two proposals in response to the Massachusetts clean energy RFP to the EDCs. One proposal was for 400 MW and the other was for 800 MW. On April 17, 2018, in response to a request to update pricing as a result of the Tax Cuts and Jobs Act, Bay State Wind submitted a revised pricing proposal, reflecting those impacts. The selection of the winning proposals for further negotiation of power purchase agreements with the EDCs will be announced on May 23, 2018.

New Hampshire:

~~Generation Divestiture~~Distribution Rates:~~: In June 2015, Eversource and~~On April 26, 2019, PSNH ~~entered into~~filed an application with the ~~2015 Public Service Company of New Hampshire Restructuring and Rate Stabilization Agreement, under the terms of which PSNH agreed to divest its generation assets, subject to~~ NHPUC ~~approval. The NHPUC approval~~ for ~~this agreement, as well as NHPUC~~ approval of ~~the final divestiture plan and auction process, were received in the second half~~a temporary annual base distribution rate increase of ~~2016. In October 2017,~~approximately $33 million, effective July 1, 2019. Also on April 26, 2019, PSNH ~~entered into two Purchase and Sale Agreements ("Agreements") to sell its thermal and hydroelectric generation assets to private investors at purchase prices~~filed a notice of ~~$175 million and $83 million, respectively, subject to adjustments as set forth in the Agreements. The NHPUC approved the Agreements in late November 2017.~~

~~On January 10, 2018, PSNH completed the sale of its thermal generation assets, pursuant to the Agreement dated October 11, 2017. In accordance~~intent with the ~~Purchase and Sale Agreement,~~NHPUC to request an increase in permanent base distribution rates of $70 million, effective July 1, 2020, which is inclusive of the ~~original purchase price of $175~~$33 million ~~was adjusted to reflect working capital adjustments, closing date adjustments and proration of taxes and fees prior to closing, totaling $40.9 million, resulting in net proceeds of $134.1 million.~~temporary rate increase request. PSNH expects to ~~complete~~file an application with the ~~sale of its hydroelectric generation facilities~~NHPUC for the permanent increase in base distribution rates in the second quarter of ~~2018 at a sale price of $83 million, subject to adjustment.~~

Full recovery of the costs of PSNH's generation assets and transaction-related expenses is expected to occur through a combination of cash flows during the remaining operating period, sales proceeds, and recovery of stranded costs primarily via the issuance of bonds that will be secured by a non-bypassable charge billed to PSNH's customers. On May 1, 2018, PSNH priced approximately $636 million of securitized rate reduction bonds in multiple tranches with a weighted average interest rate of 3.66 percent. These rate reduction bonds are expected to be issued on May 8, 2018. The proceeds, net of issuance costs, are expected to be approximately $629 million.

~~Legislative and Policy Matters~~2019.

~~New Hampshire~~2013 through 2016 Storm Costs:: On ~~January 11, 2018,~~March 26, 2019, the ~~New Hampshire Supreme Court issued a decision that affirmed~~NHPUC approved the ~~lower court's October~~recovery of $38.1 million, plus carrying charges, of storm costs incurred from December 2013 through April 2016 ~~decision that~~and the ~~Town~~transfer of ~~Bow, New Hampshire had over-assessed~~funding from PSNH’s major storm reserve to recover those costs. The costs of these storms (excluding the ~~value~~equity return component of the ~~property owned by~~carrying charges) were deferred as regulatory assets, and the funding reserve collected from customers was accrued as a regulatory liability. As a result of the duration of time between incurring storm costs in December 2013 through April 2016 and final approval from the NHPUC in 2019, PSNH recognized $5.2 million (pre-tax) for the ~~2012 and 2013 property tax years. The result~~equity return component of ~~this decision was that approximately $7.4 million~~the carrying charges within Other Income, Net on the statement of income in ~~property taxes and interest was payable to PSNH. Of this amount, $6.9 million~~the first quarter of 2019, which has been ~~refunded to PSNH as of March 31, 2018 and the remainder will be received~~collected from customers. Also included in the ~~second half of 2018.~~March 26, 2019 NHPUC approval is a prospective requirement for PSNH to annually net its storm funding reserve collected from customers against deferred storm costs.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and, at times, difficult, subjective or complex judgments. Changes in these estimates, assumptions and judgments, in and of themselves, could materially impact our financial position, results of operations or cash flows. Our management communicates to and discusses with the Audit Committee of our Board of Trustees significant matters relating to critical accounting policies. Our critical accounting policies that we believed were the most critical in nature were reported in the Eversource ~~2017~~2018 Form 10-K. There have been no material changes with regard to these critical accounting policies.

Other Matters

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

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

Arrangements," for discussion of material changes ~~with regard~~ to ~~the~~ contractual ~~obligations and commercial commitments previously disclosed in the Eversource 2017 Form 10-K.~~obligations.

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

RESULTS OF OPERATIONS – EVERSOURCE ENERGY AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for Eversource for the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 included in this combined Quarterly Report on Form 10-Q:


	For the Three Months Ended March 31,							For the Three Months Ended March 31,
(Millions of Dollars)	2018		2017		Increase/ (Decrease)			2019		2018		Increase/ (Decrease)
Operating Revenues	$	2,288.0	$	2,105.1	$	182.9		$	2,415.8	$	2,288.0	$	127.8
Operating Expenses:
Purchased Power, Fuel and Transmission	946.8		753.6		193.2			974.9		946.8		28.1
Operations and Maintenance	332.5		338.3		(5.8		)	335.6		332.5		3.1
Depreciation	204.3		186.8		17.5			214.9		204.3		10.6
Amortization	45.2		24.0		21.2			71.0		45.2		25.8
Energy Efficiency Programs	134.2		146.2		(12.0		)	140.1		134.2		5.9
Taxes Other Than Income Taxes	182.5		155.2		27.3			184.6		182.5		2.1
Total Operating Expenses	1,845.5		1,604.1		241.4			1,921.1		1,845.5		75.6
Operating Income	442.5		501.0		(58.5		)	494.7		442.5		52.2
Interest Expense	121.1		103.4		17.7			131.7		121.1		10.6
Other Income, Net	33.8		21.6		12.2			31.0		33.8		(2.8		)
Income Before Income Tax Expense	355.2		419.2		(64.0		)	394.0		355.2		38.8
Income Tax Expense	83.8		157.8		(74.0		)	83.4		83.8		(0.4		)
Net Income	271.4		261.4		10.0			310.6		271.4		39.2
Net Income Attributable to Noncontrolling Interests	1.9		1.9		—			1.9		1.9		—
Net Income Attributable to Common Shareholders	$	269.5	$	259.5	$	10.0		$	308.7	$	269.5	$	39.2

Operating Revenues

Operating Revenues by segment increased/(decreased) for the three months ended March 31, 2018, as compared to the same period in 2017, as follows (the variance in electric distribution revenues reflects intercompany transmission billings in both periods):

(Millions of Dollars) Increase/(Decrease)
Electric Distribution $ 110.5
Natural Gas Distribution 21.3
Electric Transmission (11.9 )
Water Distribution 44.6
Other (5.4 )
Eliminations 23.8
Total Operating Revenues $ 182.9

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


	For the Three Months Ended March 31, 2018 Compared to 2017																					For the Three Months Ended March 31, 2019 Compared to 2018
	Electric					Firm Natural Gas								Water								Electric							Firm Natural Gas						Water
	Sales Volumes (GWh)		Percentage Increase/ (Decrease)			Sales Volumes (MMcf)					Percentage Increase			Sales Volumes (MG)						Percentage Increase/ (Decrease)		Sales Volumes (GWh)					Percentage Decrease		Sales Volumes (MMcf)				Percentage Increase		Sales Volumes (MG)			Percentage Increase/ (Decrease)
	2018	2017 (1)			2018			2017			Percentage Increase		2018			2017 (2)			2019				2018 ⁽¹⁾			2019			2018 ⁽²⁾			2019	Percentage Increase		2018			Percentage Increase/ (Decrease)
Traditional	3,847	3,700	Percentage Increase/ (Decrease)	4.0	%		20,473			18,905		8.3	%		467			432		Percentage Increase/ (Decrease)		8.1	%	1,968		1,972	Percentage Decrease		(0.2	)%	—		—		—	%	451	467		(3.4	)%
Decoupled and Special Contracts(3)	9,374	9,472	(1.0	)%		22,706			22,241		2.1	%		4,357			4,441			(1.9	)%	11,183			11,249		(0.6	)%	45,376		43,179		5.1	%	4,378		4,357	0.5	%
Total Sales Volumes	13,221	13,172	0.4	%		43,179			41,146		4.9	%		4,824			4,873			(1.0	)%	13,151			13,221		(0.5	)%	45,376		43,179		5.1	%	4,829		4,824	0.1	%

⁽¹⁾

~~In 2017 and in the month of January 2018, NSTAR Electric operated under two different rate structures (traditional and decoupled) based on its service territory.~~ Effective February 1, 2018, NSTAR Electric operated entirely under a decoupled rate structure. The ~~2017~~2018 sales volumes for NSTAR Electric have been recast to present January ~~2017 as traditional and February through March 2017~~2018 as decoupled to conform to the ~~2018 presentation for comparative purposes.~~current year presentation.


⁽²⁾	~~Eversource acquired its water distribution business on December 4, 2017. Prior year~~Effective November 15, 2018, Yankee Gas operated under a decoupled rate structure. The 2018 sales volumes for Yankee Gas have been ~~presented for comparative purposes.~~recast to present 2018 as decoupled to conform to the current year presentation.


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

Fluctuations in retail electric sales volumes at PSNH ~~and our Connecticut natural gas company~~ impact earnings ("Traditional" in the table above). For CL&P, NSTAR Electric, ~~(effective February 1, 2018, as a result of the DPU-approved rate case decision),~~Yankee Gas, and ~~our Massachusetts natural gas company,~~NSTAR Gas, fluctuations in retail sales volumes do not impact earnings due to their respective regulatory commission-approved distribution

revenue decoupling mechanisms ("Decoupled" in the table above). These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized. Fluctuations in water sales volumes largely do not impact earnings as our Connecticut water distribution business is also decoupled.

Operating Revenues: Operating Revenues ~~which primarily consist of base distribution revenues and tracked revenues further described below,~~by segment increased ~~$182.9 million~~ for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017.~~ 2018, as follows:

~~Base Electric and Natural Gas Distribution Revenues:~~



(Millions of Dollars)	Three Months Ended
Electric Distribution	$	79.3
Natural Gas Distribution	44.0
Electric Transmission	35.5
Water Distribution	0.9
Other	27.2
Eliminations	(59.1		)
Total Operating Revenues	$	127.8

Electric Distribution Revenues:

Base electric distribution revenues ~~decreased $9.6~~increased $18.3 million due primarily to the impact of ~~NSTAR Electric's~~CL&P's base distribution rate ~~decrease~~increase as a result of the ~~DPU-approved~~PURA-approved rate case ~~decision~~settlement that became effective ~~February~~May 1, 2018 (a portion of which did not impact earnings). This was partially offset by an increase in sales volumes primarily driven by the colder weather in January 2018, as compared to the same period in 2017, at our Traditional electric companies. Effective February 1, 2018, NSTAR Electric operated entirely under a decoupled rate structure.

Electric distribution revenues also decreased $19.3 million due to the reserve established to reflect the difference between the 35 percent federal corporate income tax rate included in rates charged to customers and the 21 percent federal corporate income tax rate, effective January 1, 2018 as a result of the Tax Cuts and Jobs Act. Effective February 1, 2018 for NSTAR Electric and May 1, 2018 for CL&P, rates charged to customers have been adjusted to reflect the new federal corporate income tax rate.

Base natural gas distribution revenues remained relatively unchanged for the three months ended March 31, 2018, as compared to the same period in 2017. An increase of $4.4 million related to sales volumes and demand revenues driven by colder January weather in Connecticut in 2018, as well as growth in new customer base, was offset by a $4.5 million decrease due to the reserve established to reflect the impact of the reduction in federal corporate income tax rates, effective January 1, 2018.

~~Tracked Electric and Natural Gas Distribution Revenues:~~Tracked revenues consist of certain costs that are recovered from customers in retail rates through regulatory commission-approved cost tracking mechanisms and therefore, have no impact on earnings. Costs recovered through cost tracking mechanisms include energy supply procurement and other energy-related costs, ~~for our electric and natural gas customers,~~ retail transmission charges, energy efficiency program costs, ~~net metering for distributed generation and~~ restructuring and stranded cost recovery ~~revenues.~~revenues (including securitized RRB charges), and additionally for NSTAR Electric, pension and PBOP benefits and net metering for distributed generation. In addition, ~~certain~~ tracked revenues include certain incentives earned and carrying charges that are billed in rates to customers.

Tracked retail electric distribution revenues increased as a result of an increase in electric energy supply costs ($~~109.0~~56.1 million), ~~driven~~an increase in stranded cost recovery revenues ($23.5 million), and an increase in other distribution tracking mechanisms ($18.3 million), partially offset by ~~increased average retail prices and higher sales volumes. In addition, there was an increase~~a decrease in retail electric transmission charges ($~~24.0~~31.8 million). Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties, which decreased $7.0 million.

Natural Gas Distribution Revenues:

Base natural gas distribution revenues increased $20.2 million due primarily to the decoupled rate structure at Yankee Gas beginning November 15, 2018, which is seasonally structured and provides higher revenues in the winter heating months.

Tracked natural gas distribution revenues increased as a result of an increase in natural gas supply costs ($~~16.1~~21.2 million) and an increase in ~~energy efficiency program revenues~~wholesale sales of natural gas to third party suppliers ($3.9 million).

~~Water:~~ ~~Water operating revenues totaled $44.6 million for the three months ended March 31, 2018 as a result of the acquisition of Aquarion on December 4, 2017.~~

Electric Transmission Revenues: ~~The electric~~Electric transmission ~~segment~~ revenues ~~decreased $11.9~~increased $35.5 million due ~~to the recovery of lower revenues~~ primarily ~~related to the lower federal corporate income tax rate, which was reflected in transmission rates charged to customers effective January 1, 2018, partially offset by an increase related~~ to ongoing investments in our transmission infrastructure.

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

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

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

Purchased Power, Fuel and Transmission expense includes costs associated with purchasing electricity and natural gas ~~and water,~~ on behalf of our customers. These electric and natural gas supply costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power, Fuel and Transmission expense ~~increased~~increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:


(Millions of Dollars)	Increase		Three Months Ended
Electric Distribution	$	130.4	$	60.4
Natural Gas Distribution	12.2		25.6
Transmission	28.6		(27.4		)
Water Distribution	0.3
Eliminations	21.7		(30.5		)
Total Purchased Power, Fuel and Transmission	$	193.2	$	28.1

~~The variance in electric distribution reflects intercompany transmission charges in both periods.~~ The increase in purchased power expense at the electric distribution business for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, was driven primarily by higher prices associated with the procurement of energy supply as well as higher volumes at PSNH. As a result of the sale of PSNH's thermal generation assets on January 10, 2018, PSNH purchased power in place of its self-generation output in the first quarter of 2018.supply. The increase in natural gas supply costs at our natural gas distribution business was due primarily to higher average ~~prices and~~ sales volumes.

The ~~increase~~decrease in transmission costs for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, was primarily the result of ~~an increase in costs billed by ISO-NE that support regional grid investment, and an increase~~a decrease in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to ~~customers.~~customers, and a decrease in costs billed by ISO-NE that support regional grid investments. This was partially offset by ~~a decrease~~an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network.

Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense ~~decreased~~increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:


(Millions of Dollars)	Increase/(Decrease)			Three Months Ended
Base Electric Distribution (Non-Tracked Costs):
Storm restoration costs	$	5.6
Shared corporate costs (including computer software depreciation at Eversource Service)	4.5
Operations-related expenses, including vegetation management, snow removal, vehicles and outside services	(3.5		)
Employee-related expenses, including labor and benefits				$	(12.4	)
Operations-related expenses, including vegetation management, vehicles, and outside services (excluding storm restoration costs)				10.2
Other non-tracked operations and maintenance	0.9			0.3
Total Base Electric Distribution (Non-Tracked Costs)	7.5			(1.9		)
Base Natural Gas Distribution (Non-Tracked Costs)	5.3			3.0
Water Distribution (Addition of Aquarion operations and maintenance expenses due to acquisition on December 4, 2017)	19.3
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution) - Decrease primarily due to lower transmission expenses and lower PSNH generation operations expenses due to the January 10, 2018 sale of thermal generation assets	(31.4		)
Water Distribution				0.8
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution) - Increase due primarily to higher electric transmission expenses, partially offset by the absence in 2019 of PSNH generation operations expenses due to the 2018 sales of thermal and hydroelectric generation assets				9.3
Other and eliminations:
Eversource Parent and Other Companies - other operations and maintenance	(0.8		)	20.6
Eliminations	(5.7		)	(28.7		)
Total Operations and Maintenance	$	(5.8	)	$	3.1

Depreciation expense increased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to higher utility plant in service balances ~~partially offset by~~and new depreciation rates effective with the CL&P distribution rate case settlement agreement. Partially offsetting these increases was lower depreciation expense at PSNH as a result of the sale of the thermal and hydroelectric generation assets ~~on January 10,~~in 2018.

Amortization expense includes the deferral of energy supply and energy-related costs included in certain regulatory commission-approved cost tracking mechanisms, and the amortization of certain costs. This deferral adjusts expense to match the corresponding revenues. Amortization increased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the deferral of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and the related rate changes to recover these costs. Energy supply and energy-related costs ~~at the electric, natural gas and water companies~~ are recovered from customers in rates and have no impact on earnings. In addition, the increase includes amortization of PSNH's securitized regulatory asset of $10.6 million related to the 2018 RRB issuance.

Energy Efficiency Programs expense ~~decreased~~increased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to ~~the deferral adjustment of a State of Connecticut policy change requiring~~higher spending for CL~~&P to remit $12.7 million of 2018~~&P's, NSTAR Electric's and PSNH's energy efficiency ~~funds to the State of Connecticut. These costs were collected from CL&P's customers and remitted to the State of Connecticut; as such we have classified this amount as Taxes Other than Income Taxes.~~programs. The costs for the majority of the state energy policy initiatives and expanded energy efficiency programs are recovered from customers in rates and have no impact on earnings.

Taxes Other Than Income Taxes expense increased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to ~~the deferral adjustment~~higher property taxes as a result of higher utility plant in service balances and higher gross earnings taxes (the costs of which are tracked), partially offset by a ~~State~~decrease related to CL&P's future remittance of ~~Connecticut policy change requiring $12.7 million of 2018 CL&P~~ energy efficiency funds ~~to be remitted~~ to the State of Connecticut ~~an increase~~(which totaled $10.7 million in the first three months of 2019, as compared to $12.7 million in the first three months of 2018) and a decrease in NSTAR Electric's property taxes ~~and an increase~~due to a decrease in ~~Connecticut gross earnings taxes. Gross earnings taxes are recovered from customers in rates and have no impact on earnings.~~tax rates.

Interest Expense increased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to interest expense on the 2018 PSNH RRB issuance ($5.4 million), an increase in interest on notes payable ($4.3 million) and an increase in interest on long-term debt ($~~13.1~~4.2 million) as a result of new debt ~~issuances, the addition of Aquarion operations in the first quarter of 2018 ($6.3 million) and~~issuances. Partially offsetting these increases was an increase in ~~interest on notes payable ($1.3 million), partially offset by higher~~ AFUDC related to debt funds ~~($1.9 million)~~ and ~~a decrease in regulatory deferrals, primarily at NSTAR Electric, which decreased~~other capitalized interest ~~expense~~ ($~~1.2~~4.6 million).

Other Income, Net ~~increased~~decreased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to ~~an increase~~a decrease related to pension, SERP and PBOP non-service income components ($~~7.2~~7.8 million), ~~higher AFUDC~~partially offset by the recognition in the first quarter of 2019 of $5.2 million of the equity return component of the carrying charges related to ~~equity funds ($3.0 million) and changes~~storms incurred from December 2013 through April 2016 recorded in ~~the market value related to deferred compensation plans ($2.5 million).~~interest income at PSNH.

Income Tax Expense decreased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to ~~the new federal tax law enacted December 22, 2017, the Tax Cuts and Jobs Act, reducing the federal corporate income tax rate from 35 percent to 21 percent and lower pre-tax earnings~~amortization of EDIT ($~~72.1~~8.1 million), and by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~1.9~~0.4 million), partially offset by higher pre-tax earnings ($8.1 million). The impact of the amortization of the EDIT regulatory liability, including the tax gross up portion, that reduced revenue is $11.2 million, offset by current tax benefit of $3.1 million and amortization of EDIT of $8.1 million for the first quarter ended March 31, 2019, which results in no impact on net income.

RESULTS OF OPERATIONS –

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND ~~SUBSIDIARY~~SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 included in this combined Quarterly Report on Form 10-Q:


	For the Three Months Ended March 31,																					For the Three Months Ended March 31,
	CL&P							NSTAR Electric							PSNH							CL&P							NSTAR Electric							PSNH
(Millions of Dollars)	2018		2017		Increase/ (Decrease)			2018		2017		Increase/ (Decrease)			2018		2017		Increase/ (Decrease)			2019		2018		Increase/ (Decrease)			2019		2018		Increase/ (Decrease)			2019		2018		Increase/ (Decrease)
Operating Revenues	$	785.0	$	732.3	$	52.7		$	770.1	$	733.8	$	36.3		$	267.4	$	253.2	$	14.2		$	849.2	$	785.0	$	64.2		$	797.6	$	770.1	$	27.5		$	276.4	$	267.4	$	9.0
Operating Expenses:
Purchased Power, Fuel and Transmission	301.9		244.9		57.0			332.6		273.9		58.7			109.7		61.8		47.9			319.8		301.9		17.9			330.1		332.6		(2.5		)	113.5		109.7		3.8
Operations and Maintenance	117.3		128.7		(11.4		)	118.7		115.9		2.8			51.4		64.0		(12.6		)	130.6		117.3		13.3			113.0		118.7		(5.7		)	52.6		51.4		1.2
Depreciation	67.5		59.8		7.7			70.5		67.2		3.3			23.5		30.7		(7.2		)	73.3		67.5		5.8			72.6		70.5		2.1			22.9		23.5		(0.6		)
Amortization of Regulatory Assets, Net	28.0		12.8		15.2			6.4		4.5		1.9			5.0		5.4		(0.4		)	35.7		28.0		7.7			22.6		6.4		16.2			13.7		5.0		8.7
Energy Efficiency Programs	22.8		36.6		(13.8		)	74.8		78.0		(3.2		)	5.2		3.8		1.4			26.0		22.8		3.2			76.7		74.8		1.9			6.7		5.2		1.5
Taxes Other Than Income Taxes	90.3		74.0		16.3			48.1		37.7		10.4			16.8		20.9		(4.1		)	92.0		90.3		1.7			44.8		48.1		(3.3		)	17.3		16.8		0.5
Total Operating Expenses	627.8		556.8		71.0			651.1		577.2		73.9			211.6		186.6		25.0			677.4		627.8		49.6			659.8		651.1		8.7			226.7		211.6		15.1
Operating Income	157.2		175.5		(18.3		)	119.0		156.6		(37.6		)	55.8		66.6		(10.8		)	171.8		157.2		14.6			137.8		119.0		18.8			49.7		55.8		(6.1		)
Interest Expense	36.8		35.0		1.8			26.5		28.3		(1.8		)	12.8		12.8		—			35.8		36.8		(1.0		)	27.9		26.5		1.4			14.4		12.8		1.6
Other Income, Net	6.6		3.3		3.3			12.6		8.4		4.2			4.7		2.8		1.9			3.9		6.6		(2.7		)	11.1		12.6		(1.5		)	7.0		4.7		2.3
Income Before Income Tax Expense	127.0		143.8		(16.8		)	105.1		136.7		(31.6		)	47.7		56.6		(8.9		)	139.9		127.0		12.9			121.0		105.1		15.9			42.3		47.7		(5.4		)
Income Tax Expense	28.4		53.6		(25.2		)	28.0		53.3		(25.3		)	12.6		22.3		(9.7		)	29.4		28.4		1.0			27.0		28.0		(1.0		)	9.5		12.6		(3.1		)
Net Income	$	98.6	$	90.2	$	8.4		$	77.1	$	83.4	$	(6.3	)	$	35.1	$	34.3	$	0.8		$	110.5	$	98.6	$	11.9		$	94.0	$	77.1	$	16.9		$	32.8	$	35.1	$	(2.3	)

Operating Revenues

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


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
	Rate Structure	2018	2017	Increase/ (Decrease)		Percent		2019	2018	Decrease		Percentage Decrease
CL&P	Decoupled	5,376	5,330	46		0.9	%	5,350	5,376	(26	)	(0.5	)%
NSTAR Electric	Decoupled	5,874	5,849	25		0.4	%	5,833	5,874	(41	)	(0.7	)%
PNSH	Traditional	1,972	1,992	(20	)	(1.0	)%
PSNH								1,968	1,972	(4	)	(0.2	)%

Fluctuations in retail electric sales volumes at PSNH impact ~~earnings ("Traditional" in the table above).~~earnings. For CL&P and NSTAR Electric, ~~(effective February 1, 2018, as a result of the DPU-approved rate case decision),~~ fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling ~~mechanisms ("Decoupled" in the table above).~~mechanisms.

Operating Revenues: Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased $64.2 million at CL&P, $27.5 million at NSTAR Electric and $9.0 million for PSNH for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017, as follows:~~2018.

(Millions of Dollars) CL&P NSTAR Electric PSNH
Operating Revenues $ 52.7
$ 36.3
$ 14.2

Base Distribution Revenues:

~~NSTAR Electric's~~CL&P's distribution revenues ~~decreased $8.3~~increased $19.6 million due primarily to the impact of its base distribution rate ~~decrease~~increase as a result of the ~~DPU-approved~~PURA-approved rate case ~~decision~~settlement agreement that became effective ~~February~~May 1, 2018 (a portion of which did not impact earnings). ~~This~~

NSTAR Electric's distribution revenues decreased $0.9 million due primarily to the impact of its decoupled rate structure, which was effective February 1, 2018, partially offset by an increase into base distribution rates effective January ~~2018 sales volumes, as compared to January 2017, primarily driven by the colder weather. Effective February~~ 1, ~~2018, NSTAR Electric operated entirely under a decoupled rate structure.~~2019.

PSNH's base distribution revenues decreased ~~$1.3~~$0.4 million ~~for~~due primarily to lower demand revenues in the ~~three months ended March 31, 2018,~~first quarter of 2019, as compared to the same period in ~~2017, primarily as a result of a rate change due to the completion of the full recovery of certain costs in revenues. The majority of this decrease did not impact earnings.~~2018.

Distribution revenues decreased $12.5 million at CL&P, $3.7 million at NSTAR Electric and $3.1 million at PSNH due to the reserve established to reflect the difference between the 35 percent federal corporate income tax rate included in rates charged to customers and the 21 percent federal corporate income tax rate, effective January 1, 2018 as a result of the Tax Cuts and Jobs Act. Effective February 1, 2018 for NSTAR Electric and May 1, 2018 for CL&P, rates charged to customers have been adjusted to reflect the new federal corporate income tax rate.

Tracked Revenues: ~~Fluctuations in the overall level of operating revenues are primarily related to tracked revenues.~~ Tracked revenues consist of certain costs that are recovered from customers in rates through commission-approved cost tracking mechanisms and therefore have no impact on earnings. Costs recovered through cost tracking mechanisms include energy supply procurement and other energy-related costs, retail transmission charges, energy efficiency program costs, ~~net metering for distributed generation and~~ restructuring and stranded cost recovery ~~revenues.~~revenues (including securitized RRB charges), and additionally for NSTAR Electric, pension and PBOP benefits and net metering for distributed generation. In addition, tracked revenues include certain incentives earned and carrying ~~charges.~~charges that are billed in rates to customers. Tracked revenues ~~increased~~also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties. Tracked revenues increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:


(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P			NSTAR Electric			PSNH
Energy supply procurement	$	57.8	$	32.4	$	18.8
Retail Tariff Tracked Revenues
Energy supply procurement ⁽¹⁾							$	36.3		$	27.8		$	(8.0	)
Retail transmission	7.9		14.5		1.6		(9.5		)	(13.9		)	(8.4		)
Stranded cost recovery							(2.9		)	0.8			25.6
Other distribution tracking mechanisms	0.4		4.9		1.5		5.0			11.0			2.3
Wholesale Market Sales Revenue							3.4			(0.5		)	(10.7		)


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

Transmission Revenues: Transmission revenues ~~decreased $6.7 million, $4.1 million and $1.1~~increased $17.3 million at CL&P, $8.8 million at NSTAR Electric, and $9.4 million at PSNH, respectively, due ~~to the recovery of lower revenue requirements~~ primarily ~~related to the lower federal corporate income tax rate, which was reflected in transmission rates charged to customers effective January 1, 2018, partially offset by an increase related~~ to ongoing investments in our transmission infrastructure.

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

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

wholesale transmission business. The impact of eliminations decreased revenues by $7.7 million at CL&P, $5.4 million at NSTAR Electric and $0.7 million at PSNH.

Purchased Power, Fuel and Transmission expense includes costs associated with purchasing electricity on behalf of CL&P, NSTAR Electric and PSNH's customers. ~~For PSNH, these costs also include PSNH's generation of electricity.~~ These energy supply costs are recovered from customers in commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power, Fuel and Transmission expense ~~increased~~increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:


(Millions of Dollars)	CL&P		NSTAR Electric		PSNH			CL&P			NSTAR Electric			PSNH
Purchased Power Costs	$	40.2	$	42.7	$	47.4		$	34.1		$	16.0		$	10.3
Transmission Costs	12.1		14.2		2.3			(8.5		)	(13.2		)	(5.7		)
Eliminations	4.7		1.8		(1.8		)	(7.7		)	(5.3		)	(0.8		)
Total Purchased Power, Fuel and Transmission	$	57.0	$	58.7	$	47.9		$	17.9		$	(2.5	)	$	3.8

Purchased Power Costs: Included in purchased power costs are the costs associated with providing electric generation service supply to all customers who have not migrated to third party suppliers. In order to meet the demand of customers who have not migrated to third party suppliers, PSNH procures power through power supply contracts and spot purchases in the competitive New England wholesale power market and/or produces power through its own generation. The increase in purchased power costs for the three months ended March 31, 2018, as compared to same period in 2017, was due primarily to the following:

The increase at CL&P was due primarily to an increase in the price and volume of ~~standard offer supply associated with the GSC tracking mechanism.~~power procured on behalf of our customers.

The increase at NSTAR Electric was due primarily to ~~higher prices associated with~~an increase in the ~~procurement~~price of ~~energy supply, partially offset by slightly lower sales volumes.~~power procured on behalf of our customers.

The increase at PSNH was due primarily to higher purchased power energy expenses that are recovered as a component of the Energy Service tracking ~~mechanism, and Regional Greenhouse Gas Initiative related-expenses recovered in the SCRC tacking~~ mechanism. ~~As a result of the sale of its thermal generation assets on January 10, 2018, PSNH purchased power in place of its self-generation output in the first quarter of 2018.~~

Transmission Costs: Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from ~~generating plants~~generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric market. ~~The increase in transmission costs for the three months ended March 31, 2018, as compared to the same period in 2017, was due primarily to the following:~~

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

~~The increase at PSNH was primarily the result of an increase in costs billed~~service provided by ~~ISO-NE that support regional grid investment. This was partially offset by a decrease in Local Network Service charges and a decrease in the retail~~Eversource over our local transmission ~~cost deferral.~~network.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:


(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Base Electric Distribution (Non-Tracked Costs):
Employee-related expenses, including labor and benefits										$	(1.8	)	$	(9.8	)	$	(0.8	)
Storm restoration costs	$	1.6		$	5.8		$	(1.8	)	(4.4		)	2.2			1.0
Shared corporate costs (including computer software depreciation at Eversource Service)	1.7			2.2			0.6
Operations-related expenses, including vegetation management, snow removal, vehicles and outside services (excluding storm restoration costs)	(7.3		)	3.4			0.4
Operations-related expenses, including vegetation management, vehicles, and outside services (excluding storm restoration costs)										5.1			—			5.1
Other non-tracked operations and maintenance	(0.1		)	1.0			—			3.4			(1.9		)	—
Total Base Electric Distribution (Non-Tracked Costs)	(4.1		)	12.4			(0.8		)	2.3			(9.5		)	5.3
Tracked Costs:
Decrease of PSNH generation operations expenses due to the January 10, 2018 sale of thermal generation assets	—			—			(7.6		)
Absence in 2019 of PSNH generation operations expenses due to the 2018 sales of thermal and hydroelectric generation assets										—			—			(6.8		)
Transmission expenses	(6.2		)	(3.1		)	(1.3		)	9.7			1.1			2.7
Other tracked operations and maintenance	(1.1		)	(6.5		)	(2.9		)	1.3			2.7			—
Total Tracked Costs	(7.3		)	(9.6		)	(11.8		)	11.0			3.8			(4.1		)
Total Operations and Maintenance	$	(11.4	)	$	2.8		$	(12.6	)	$	13.3		$	(5.7	)	$	1.2

Depreciation ~~expense increased at CL&P and NSTAR Electric~~increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:

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

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

The decrease at PSNH iswas due primarily to ~~lower plant in service balances as a result of~~ the sale of the thermal and hydroelectric generation assets ~~on January 10,~~in 2018.

Amortization of Regulatory Assets, Net expense includes the deferral of energy supply and energy-related costs included in certain regulatory-approved cost tracking mechanisms, and the amortization of certain costs. This deferral adjusts expense to match the corresponding revenues. Amortization of Regulatory Assets, Net increased at CL&P, ~~and~~ NSTAR Electric and PSNH for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the deferral adjustment of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. Energy supply and energy-related costs ~~which are the primary drivers of amortization,~~ are recovered from customers in rates and have no impact on earnings. In addition, the increase at PSNH includes amortization of its securitized regulatory asset of $10.6 million related to the 2018 RRB issuance.

Energy Efficiency Programs expense includes costs for various state energy policy initiatives and expanded energy efficiency programs, ~~and~~ the majority ~~is recovered from customers in rates and has no impact on earnings. Energy Efficiency Programs expensedecreased for the three months ended March 31, 2018, as compared to same period in 2017, due primarily to the following:~~

~~The decrease at CL&P is due primarily to the deferral adjustment~~ of a State of Connecticut policy change requiring CL&P to remit $12.7 million of 2018 energy efficiency funds to the State of Connecticut. These costs were collected from CL&P's customers and remitted to the State of Connecticut; as such we have classified this amount as Taxes Other than Income Taxes.

~~The decrease at NSTAR Electric is due to the deferral adjustment,~~ which reflects the actual cost of energy efficiency programs compared to the estimated amounts billed to customers, and the timing of the recovery of energy efficiency costs. The deferral adjusts costs incurred to match energy efficiency revenue billed to customers.

~~Taxes Other Than Income Taxes~~ ~~increased/(decreased) for the three months ended March 31, 2018, as compared to same period in 2017, due primarily to the following:~~

The increase at CL&P is due primarily to the deferral adjustment of a State of Connecticut policy change requiring CL&P to remit $12.7 million of 2018 energy efficiency funds to the State of Connecticut, as well as higher property taxes due to higher utility plant balances and an increase in gross earnings taxes. Gross earnings taxes are recovered from customers in rates and have no impact on earnings. Energy Efficiency Programs expense

~~The increase at NSTAR Electric is due primarily to higher property taxes.~~

The decrease at PSNH is due primarily to the absence of property taxes as a result of the sale of thermal generation assets on January 10, 2018 and a 2018 refund of disputed taxes for prior years from the Town of Bow, New Hampshire, partially offset by higher property taxes due to higher utility plant balances.

~~Interest Expense~~ ~~at CL&P~~ increased for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to higher ~~interest on long-term debt as a result of new debt issuances ($1.7 million). Interest expense decreased at~~spending for CL&P's, NSTAR ~~Electricdue primarily to a decrease in regulatory deferrals, which decreased interest expense ($1.5 million).~~Electric's and PSNH's energy efficiency programs.

Taxes Other Than Income ~~Net~~Taxes increased/(decreased) for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to the following:

The increase at CL&P iswas due primarily to ~~an increase~~higher property taxes as a result of higher utility plant balances and higher gross earnings taxes (the costs of which are tracked), partially offset by a decrease related to ~~pension, SERP and PBOP non-service income components ($2.5 million) and higher AFUDC related~~CL&P's future remittance of energy efficiency funds to ~~equity funds ($0.8 million)~~the State of Connecticut (which totaled $10.7 million in the first three months of 2019, as compared to $12.7 million in the first three months of 2018).

The ~~increase~~decrease at NSTAR Electric iswas due primarily to ~~an increase related to pension, SERP and PBOP non-service income components ($3.4 million) and higher AFUDC related to equity funds ($1.5 million).~~

~~The increase at PSNH is due to interest income related to a 2018 refund of disputed~~lower property taxes ~~for prior years.~~

as a result of a decrease in tax rates.

~~Income Tax~~Interest Expense ~~decreased~~increased at PSNH for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to interest on the 2018 RRB issuance ($5.4 million), partially offset by lower interest on long-term debt ($2.1 million) and lower interest on notes payable ($1.0 million).

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

The decrease at CL&P was due primarily to ~~the new federal tax law enacted December 22, 2017, the Tax Cuts~~a decrease related to pension, SERP and ~~Jobs Act, reducing the federal corporate tax rate from 35 percent to 21 percent and lower pre-tax earnings~~PBOP non-service income components ($~~23.7 million), and items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.5~~3.6 million).

The increase at PSNH was due to the recognition in the first quarter of 2019 of $5.2 million of the equity return component of the carrying charges related to storms incurred from December 2013 through April 2016 recorded in interest income, partially offset by a decrease related to pension, SERP and PBOP non-service income components ($1.8 million).

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

The increase at ~~NSTAR Electric~~CL&P was due primarily to ~~the new federal tax law enacted December 22, 2017, the Tax Cuts and Jobs Act, reducing the federal corporate tax rate from 35 percent to 21 percent and lower~~higher pre-tax earnings ($~~25.8~~2.8 million), partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~0.5~~1.8 million).

The decrease at ~~PSNH~~NSTAR Electric was due primarily to ~~the new federal tax law enacted December 22, 2017, the Tax Cuts and Jobs Act, reducing the federal corporate tax rate from 35 percent to 21 percent and lower~~amortization of EDIT ($4.9 million), partially offset by higher pre-tax earnings ($~~9.9~~3.5 million)~~, partially offset~~ and by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~0.2~~0.4 million). The impact of the amortization of the EDIT regulatory liability, including the tax gross up portion, that reduced revenue is $6.8 million, offset by current tax benefit of $1.9 million and amortization of EDIT of $4.9 million for the first quarter ended March 31, 2019, which results in no impact on net income.

The decrease at PSNH was due primarily to lower pre-tax earnings ($1.4 million), amortization of EDIT ($1.3 million), and items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.4 million). The impact of the amortization of the EDIT regulatory liability, including the tax gross up portion, that reduced revenue is $1.8 million, offset by current tax benefit of $0.5 million and amortization of EDIT of $1.3 million for the first quarter ended March 31, 2019, which results in no impact on net income.

EARNINGS SUMMARY

CL&P's earnings increased ~~$8.4~~$11.9 million for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to ~~lower non-tracked operations~~the impact of the CL&P base distribution rate increase effective May 1, 2018 and ~~maintenance expense and~~an increase in transmission earnings driven by a ~~lower effective tax~~higher transmission rate ~~resulting from the Tax Cuts and Jobs Act, which reduced the federal corporate income tax rate effective January 1, 2018.~~base. The earnings increase was partially offset by lower non-service income from our benefit plans, higher depreciation expense and higher property and other tax expense.

NSTAR Electric's earnings ~~decreased $6.3~~increased $16.9 million for the three months ended March 31, ~~2018,~~2019, as compared to the same period in ~~2017,~~2018, due primarily to lower operations and maintenance expense, an increase in transmission earnings driven by a higher ~~non-tracked~~transmission rate base, and lower property and other tax expense.

PSNH's earnings decreased $2.3 million for the three months ended March 31, 2019, as compared to the same period in 2018, due primarily to the absence in 2019 of generation earnings as a result of thermal and hydroelectric generation asset sales in 2018, higher operations and maintenance expense, and higher property and other tax expense. The earnings decrease was partially offset by ~~a lower effective tax rate resulting from~~ the ~~Tax Cuts~~recognition in 2019 of carrying charges on storm costs approved for recovery and ~~Jobs Act and higher sales volumes~~an increase in ~~January 2018 (prior to the decoupled rate structure)~~transmission earnings driven by ~~the colder weather, as compared to the same period in 2017.~~

~~PSNH's earnings increased $0.8 million for the three months ended March 31, 2018, as compared to the same period in 2017, due primarily to~~ a ~~lower effective tax~~higher transmission rate resulting from the Tax Cuts and Jobs Act, and lower property tax expense due to the 2018 refund of disputed property taxes for prior tax years. The earnings increase was partially offset by lower generation earnings due to the sale of thermal generation assets on January 10, 2018.base.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of ~~$64.7~~$198.3 million for the three months ended March 31, ~~2018,~~2019, as compared to ~~$173.4~~$64.7 million in the same period of ~~2017.~~2018. The ~~decrease~~increase in operating cash flows was due primarily to the timing of accounts payable cash payments, the absence in 2019 of cash payments of $82.3 million in pension contributions, and approximately $21 million of storm restoration cost payments made in the first quarter of ~~2018, cash payments made~~2018. Partially offsetting these increases were the timing of collections for ~~storm restoration costs of approximately $21 million,~~regulatory tracking mechanisms and the timing of cash collections ~~and payments related to~~on our ~~working capital items, including~~ accounts receivable and ~~accounts payable. Partially offsetting these decreases were the timing of regulatory recoveries and an increase in distribution rates due to higher rate base.~~other working capital items.

NSTAR Electric had cash flows provided by operating activities of ~~$136.5~~$137.0 million for the three months ended March 31, ~~2018,~~2019, as compared to ~~$157.1~~$136.5 million in the same period of ~~2017.~~2018. The ~~decrease~~increase in operating cash flows was due primarily to ~~the timing~~$46 million of ~~collections on accounts receivables,~~ cash payments made in 2018 for storm restoration costs, ~~of approximately $46 million and~~ income tax ~~payments made~~refunds received in ~~2018~~the first quarter of ~~$8.8~~2019 of $27.8 million, compared to income tax ~~refunds received~~payments of $8.8 million in ~~2017~~the first quarter of ~~$30.2 million. Partially offsetting these decreases were increases in regulatory overrecoveries~~2018, and the timing of cash collections on our accounts receivables. Partially offsetting these increases were the timing of accounts payable cash payments ~~related to our working capital items, including accounts payable.~~and the timing of collections for regulatory tracking mechanisms.

PSNH had cash flows provided by operating activities of ~~$96.2~~$132.6 million for the three months ended March 31, ~~2018,~~2019, as compared to ~~$113.2~~$96.2 million in the same period of ~~2017.~~2018. The ~~decrease~~increase in operating cash flows was due primarily to the timing of ~~collections~~accounts payable cash payments and ~~payments~~income tax refunds of ~~our working capital items, including accounts payable. Partially offsetting these decreases was~~$20.3 million in the first quarter of 2019, as compared to income tax refunds of $4.4 million ~~received~~ in ~~2018, compared to~~ the ~~income tax~~same period in 2018. Partially offsetting these increases were the timing of collections for regulatory tracking mechanisms and collections and payments of ~~$9.0 million made in 2017.~~

~~In the first quarter of 2018, CL&P, NSTAR Electric and PSNH paid $60.0 million, $161.0 million, and $150.0 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~~our other working capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized portions of pension expense. In the first quarter of 2018, investments for CL&P, NSTAR Electric, and PSNH were $202.1 million, $192.0 million, and $72.3 million, respectively.items.

~~Commercial Paper Programs, Credit Agreements and Notes Payable~~: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt, with intercompany loans to certain subsidiaries, includingFor further information on CL&P and PSNH. Eversource parent, CL&P and PSNH are also parties to a five-year $1.45 billion revolving credit facility. The revolving credit facility terminates on December 8, 2022 and serves to backstop Eversource parent's $1.45 billion commercial paper program. The weighted-average interest rate on the commercial paper borrowings as of March 31, 2018 and December 31, 2017 was 2.31 percent and 1.86 percent, respectively. As of March 31, 2018, there were no intercompany loans from Eversource parent to CL&P and $271.3 million to PSNH. As of December 31, 2017, there were intercompany loans from Eversource parent of $69.5 million to CL&P and $262.9 million to PSNH.

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. The revolving credit facility terminates on December 8, 2022 and serves to backstop&P's, NSTAR Electric's ~~$650 million commercial paper program. As~~and PSNH's liquidity and capital resources, see "Liquidity" and "Business Development and Capital Expenditures" included in this Management's Discussion and Analysis of ~~March 31, 2018~~Financial Condition and December 31, 2017, NSTAR Electric had $367.0 million and $234.0 million, respectively, in short-term borrowings outstanding under its commercial paper program, leaving $283.0 million and $416.0 millionResults of available borrowing capacity as of March 31, 2018 and December 31, 2017, respectively. The weighted-average interest rate on these borrowings as of March 31, 2018 and December 31, 2017 was 1.75 percent and 1.55 percent, respectively.

~~There were no borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, 2018 or December 31, 2017.~~

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


⁽¹⁾	~~Represents a repayment at maturity paid on May 1, 2018.~~


ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Information

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

Other Risk Management Activities

Interest Rate Risk Management: We manage our interest rate risk exposure in accordance with our written policies and ~~procedures by maintaining a mix of fixed and variable rate long-term debt.~~ procedures.

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

Our ~~Regulated~~regulated companies are subject to credit risk from certain long-term or high-volume supply contracts with energy marketing companies. Our ~~Regulated~~regulated companies manage the credit risk with these counterparties in accordance with established credit risk practices and monitor ~~contracting~~contracting risks, including credit risk. As of March 31, ~~2018,~~2019, our ~~Regulated~~regulated companies held collateral ~~(letters~~in the form of letters of credit ~~or cash)~~ of ~~$10~~$5.0 million from counterparties related to our standard service contracts. As of March 31, ~~2018,~~2019, Eversource had ~~$35.6~~$24.8 million of cash ~~posted~~posted with ISO-NE related to energy transactions.

We have provided additional disclosures regarding interest rate risk management and credit risk management in Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," in Eversource's ~~2017~~2018 Form 10-K, which is incorporated herein by reference. There have been no additional risks identified and no material changes with regard to the items previously disclosed in the Eversource ~~2017~~2018 Form 10-K.


ITEM 4.	CONTROLS AND PROCEDURES

Management, on behalf of Eversource, CL&P, NSTAR Electric and PSNH, evaluated the design and operation of the disclosure controls and procedures as of March 31, ~~2018~~2019 to determine whether they are effective in ensuring that the disclosure of required information is made timely and in accordance with the Securities Exchange Act of 1934 and the rules and regulations of the SEC. This evaluation was made under management's supervision and with management's participation, including the principal executive officer and principal financial officer as of the end of the period covered by this Quarterly Report on Form 10-Q. There are inherent limitations of disclosure controls and procedures, including the possibility of human error and the circumventing or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. The principal executive officer and principal financial officer have concluded, based on their review, that the disclosure controls and procedures of Eversource, CL&P, NSTAR Electric and PSNH are effective to ensure that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and regulations and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

There have been no changes in internal controls over financial reporting for Eversource, CL&P, NSTAR Electric and PSNH during the quarter ended March 31, ~~2018~~2019 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

PART II. OTHER INFORMATION


ITEM 1.	LEGAL PROCEEDINGS

We are parties to various legal proceedings. We have disclosed these legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our ~~2017~~2018 Form 10-K. These disclosures are incorporated herein by reference. ~~There~~

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

Other than as set forth above, there have been no additional material legal proceedings identified and no further material changes with regard to the legal proceedings previously disclosed in our ~~2017~~2018 Form 10-K.


ITEM 1A.	RISK FACTORS

We are subject to a variety of significant risks in addition to the matters set forth under our forward-looking statements section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Quarterly Report on Form 10-Q. We have identified a number of these risk factors in Part I, Item 1A, "Risk Factors," in our ~~2017~~2018 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. There have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our ~~2017~~2018 Form 10-K.


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

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

Period
Total Number of
Shares Purchased
Average Price
Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2018 12,413
$ 61.34
—
—
February 1 - February 28, 2018 240,110
57.65
—
—
March 1 - March 31, 2018 65,215
58.49
—
—
Total 317,738
$ 57.97
—
—



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


ITEM 6.	EXHIBITS

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



	Exhibit No.	Description

	Listing of Exhibits (Eversource)

	~~4.1~~	Tenth Supplemental Indenture between Eversource Energy and The Bank of New York Trust Company N.A., as Trustee, dated as of January 1, 2018, relating to $200 million of Senior Notes, Series I, due 2021 and $450 million of Senior Notes, Series M, due 2028 ~~(Exhibit 4.1, Eversource Energy Current Report on Form 8-K filed on January 12, 2018, File No. 001-05324)~~

	12	~~Ratio of Earnings to Fixed Charges~~

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

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

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

	Listing of Exhibits (CL&P)

*	4.1	Supplemental Indenture ~~(2018~~(2019 Series A Bonds) between CL&P and Deutsche Bank Trust Company Americas, as Trustee dated as of March 1, ~~2018~~ 2019 ((Exhibit 4.1, CL&P Current Report on Form 8-K ~~filed~~field on April ~~2, 2018,~~4, 2019, File No. ~~000-00404)~~000-00404)

	12	~~Ratio of Earnings to Fixed Charges~~

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

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

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

	Listing of Exhibits (NSTAR Electric Company)

	12	~~Ratio of Earnings to Fixed Charges~~

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

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

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

	Listing of Exhibits (PSNH)

	12	~~Ratio of Earnings to Fixed Charges~~

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

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



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

	Listing of Exhibits (Eversource, CL&P, NSTAR Electric, PSNH)

	101.INS		XBRL Instance Document

	101.SCH		XBRL Taxonomy Extension Schema

	101.CAL		XBRL Taxonomy Extension Calculation

	101.DEF		XBRL Taxonomy Extension Definition

	101.LAB		XBRL Taxonomy Extension Labels

	101.PRE		XBRL Taxonomy Extension Presentation

SIGNATURE

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



	EVERSOURCE ENERGY

May ~~3, 2018~~7, 2019	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE



	THE CONNECTICUT LIGHT AND POWER COMPANY

May ~~3, 2018~~7, 2019	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE



	NSTAR ELECTRIC COMPANY

May ~~3, 2018~~7, 2019	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE



	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

May ~~3, 2018~~7, 2019	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

5856



(Millions of Dollars)	Issue Date	Issuances/(Repayments)			Maturity Date	Use of Proceeds
CL&P:
4.00% 2018 Series A First Mortgage Bonds	March 2018	$	500.0		2048	Repay long-term debt due to mature in 2018 and repay short-term borrowings
5.65% 2008 Series A First Mortgage Bonds ⁽¹⁾	May 2008	(300.0		)	2018	N/A
PSNH:
6.00% 2008 Series O First Mortgage Bonds ⁽¹⁾	May 2008	(110.0		)	2018	N/A
Eversource Parent:
2.50% Series I Senior Notes ⁽²⁾	January 2018	200.0			2021	Repay long-term debt due to mature in 2018 and repay short-term borrowings
3.30% Series M Senior Notes	January 2018	450.0			2028	Repay long-term debt due to mature in 2018
1.60% Series G Senior Notes ⁽³⁾	January 2015	(150.0		)	2018	N/A
1.45% Series E Senior Notes ⁽¹⁾	May 2013	(300.0		)	2018	N/A



Complaint	15-Month Time Period of Complaint (Beginning as of Complaint Filing Date)	Original Base ROE Authorized by FERC at Time of Complaint Filing Date ⁽¹⁾	Base ROE Subsequently Authorized by FERC for First Complaint Period and also Effective from October 16, 2014 through April 14, 2017 ⁽¹⁾	Reserve (Pre-Tax and Excluding Interest) as of March 31, 2018 (in millions)		FERC ALJ Recommendation of Base ROE on Second, Third and Fourth Complaints
First	10/1/2011 - 12/31/2012	11.14%	10.57%	$—	⁽²⁾	N/A
Second	12/27/2012 - 3/26/2014	11.14%	N/A	39.1	⁽³⁾	9.59%
Third	7/31/2014 - 10/30/2015	11.14%	10.57%	—		10.90%
Fourth	4/29/2016 - 7/28/2017	10.57%	10.57%	—		10.57%



(Millions of Dollars)
Hydroelectric Gross Plant	$	86.6
Accumulated Depreciation	(27.4		)
Net Plant	59.2
Materials and Supplies	0.1
Total Hydroelectric Generation Assets Held for Sale	$	59.3



(Millions of Dollars)
Current Assets	$	41.2
PP&E	1,034.9
Goodwill	907.9
Other Noncurrent Assets, excluding Goodwill	215.5
Current Liabilities	(121.9		)
Noncurrent Liabilities	(421.6		)
Long-Term Debt	(778.3		)
Total Cash Purchase Price	$	877.7