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	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
	FORM	10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended	September 30, ~~2020~~2021
	or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________

Registrant; State of Incorporation; Address; Telephone Number;

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

EVERSOURCE ENERGY

(a Massachusetts voluntary association)

300 Cadwell Drive, Springfield, Massachusetts 01104

Telephone: (800) 286-5000

Commission File Number: ~~1-5324~~001-05324

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

THE CONNECTICUT LIGHT AND POWER COMPANY

(a Connecticut corporation)

107 Selden Street, Berlin, Connecticut 06037-1616

Telephone: (800) 286-5000

Commission File Number: ~~0-00404~~000-00404

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

NSTAR ELECTRIC COMPANY

(a Massachusetts corporation)

800 Boylston Street, Boston, Massachusetts 02199

Telephone: (800) 286-5000

Commission File Number: ~~1-02301~~001-02301

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

(a New Hampshire corporation)

Energy Park

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

Telephone: (800) 286-5000

Commission File Number: ~~1-6392~~001-06392

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, $5.00 par value per share

New York Stock Exchange

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



			Yes			No
			☒			☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files).



			Yes			No
			☒			☐

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

Eversource Energy

Large accelerated filer

☒

Accelerated

filer

☐

Non-accelerated

filer

☐

Smaller reporting company

☐

Emerging growth company

☐

The Connecticut Light and Power Company

Large accelerated filer

☐

Accelerated

filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

NSTAR Electric Company

Large accelerated filer

☐

Accelerated

filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Public Service Company of New Hampshire

Large accelerated filer

☐

Accelerated

filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

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

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


			Yes		No

Eversource Energy			~~Yes~~☐		No☒

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

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

date.



Company - Class of Stock	Outstanding as of October 31, ~~2020~~2021

Eversource Energy Common Shares, $5.00 par value	~~342,824,425~~343,805,812	shares
The Connecticut Light and Power Company Common Stock, $10.00 par value	6,035,205	shares
NSTAR Electric Company Common Stock, $1.00 par value	200	shares
Public Service Company of New Hampshire Common Stock, $1.00 par value	301	shares

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

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

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

GLOSSARY OF TERMS

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



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


EDIT			Excess Deferred Income Taxes
EPS			Earnings Per Share
ERISA			Employee Retirement Income Security Act of 1974


ESOP
~~ESOP~~	Employee Stock Ownership Plan
Eversource ~~2019~~2020 Form 10-K		The Eversource Energy and Subsidiaries ~~2019~~2020 combined Annual Report on Form 10-K as filed with the SEC
Fitch		Fitch Ratings
FMCC		Federally Mandated Congestion Charge
~~FTR~~GAAP		~~Financial Transmission Rights~~
~~GAAP~~	Accounting principles generally accepted in the United States of America
GSC		Generation Service Charge
~~GSRP~~GWh		~~Greater Springfield Reliability Project~~Gigawatt-Hours
~~GWh~~IPP		~~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)
~~LBR~~LNG		~~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~~NETOs		~~New England East-West Solution~~
~~NETOs~~	New England Transmission Owners (including Eversource, National Grid and Avangrid)
OCI		Other Comprehensive Income/(Loss)
PAM		Pension and PBOP Rate Adjustment Mechanism
PBOP		Postretirement Benefits Other Than Pension
PBOP Plan		Postretirement Benefits Other Than Pension Plan
Pension Plan		Single uniform noncontributory defined benefit retirement plan
PPA		Power purchase agreement
RECs		Renewable Energy Certificates
Regulatory ROE		The average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment
ROE		Return on Equity
RRBs		Rate Reduction Bonds or Rate Reduction Certificates
RSUs		Restricted share units
S&P		Standard & Poor's Financial Services LLC
SBC		Systems Benefits Charge
SCRC		Stranded Cost Recovery Charge
SERP		Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SS		Standard service
~~TCAM~~UI		~~Transmission Cost Adjustment Mechanism~~
~~TSA~~	~~Transmission Service Agreement~~
UI	The United Illuminating Company
VIE		Variable Interest Entity

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

TABLE OF CONTENTS



				Page
PART I – FINANCIAL INFORMATION

ITEM 1.			Financial Statements (Unaudited)

			Eversource Energy and Subsidiaries (Unaudited)
			Condensed Consolidated Balance Sheets	1
			Condensed Consolidated Statements of Income	2
			Condensed Consolidated Statements of Comprehensive Income	2
			Condensed Consolidated Statements of Common Shareholders' Equity	3
			Condensed Consolidated Statements of Cash Flows	5

			The Connecticut Light and Power Company (Unaudited)
			Condensed Balance Sheets	6
			Condensed Statements of Income	7
			Condensed Statements of Comprehensive Income	7
			Condensed Statements of Common Stockholder's Equity	8
			Condensed Statements of Cash Flows	9

			NSTAR Electric Company and Subsidiary (Unaudited)
			Condensed Consolidated Balance Sheets	10
			Condensed Consolidated Statements of Income	11
			Condensed Consolidated Statements of Comprehensive Income	11
			Condensed Consolidated Statements of Common Stockholder's Equity	12
			Condensed Consolidated Statements of Cash Flows	13

			Public Service Company of New Hampshire and Subsidiaries (Unaudited)
			Condensed Consolidated Balance Sheets	14
			Condensed Consolidated Statements of Income	15
			Condensed Consolidated Statements of Comprehensive Income	15
			Condensed Consolidated Statements of Common Stockholder's Equity	16
			Condensed Consolidated Statements of Cash Flows	17

			Combined Notes to Condensed Financial Statements (Unaudited)	18

ITEM 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations
			Eversource Energy and Subsidiaries	42
			The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary,, and Public Service Company of New Hampshire and ~~Subsidiar~~Subsidiaries	61

ITEM 3.~~ies~~			62

~~ITEM 3.~~	Quantitative and Qualitative Disclosures About Market Risk	69

ITEM 4.			Controls and Procedures	69

PART II – OTHER INFORMATION

ITEM 1.			Legal Proceedings	70

ITEM 1A.			Risk Factors	~~Risk Factors~~	70

ITEM 2.			Unregistered Sales of Equity Securities and Use of Proceeds	71

ITEM 6.			Exhibits	72

SIGNATURES				74

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of September 30, 2021		As of December 31, 2020

ASSETS
Current Assets:
Cash	$	88,204	$	106,599
Receivables, Net (net of allowance for uncollectible accounts of $441,723 and $358,851 as of September 30, 2021 and December 31, 2020, respectively)	1,288,758		1,195,925
Unbilled Revenues	176,325		233,025
Fuel, Materials, Supplies and REC Inventory	217,286		265,599
Regulatory Assets	1,016,304		1,076,556
Prepayments	177,869		105,620
Other Current Assets	108,807		146,819
Total Current Assets	3,073,553		3,130,143
Property, Plant and Equipment, Net	32,467,069		30,882,523
Deferred Debits and Other Assets:
Regulatory Assets	5,458,928		5,493,330
Goodwill	4,453,618		4,445,988
Investments in Unconsolidated Affiliates	1,356,313		1,107,143
Marketable Securities	466,628		456,617
Other Long-Term Assets	737,946		583,854
Total Deferred Debits and Other Assets	12,473,433		12,086,932
Total Assets	$	48,014,055	$	46,099,598

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	711,000	$	1,249,325
Long-Term Debt – Current Portion	798,880		1,053,186
Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	1,289,225		1,370,647

Regulatory Liabilities	612,931		389,430
Other Current Liabilities	802,831		809,214
Total Current Liabilities	4,258,077		4,915,012
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	4,341,105		4,095,339
Regulatory Liabilities	3,907,582		3,850,781
Derivative Liabilities	256,569		294,535
Asset Retirement Obligations	505,005		499,713
Accrued Pension, SERP and PBOP	1,330,037		1,653,788
Other Long-Term Liabilities	974,497		948,506
Total Deferred Credits and Other Liabilities	11,314,795		11,342,662
Long-Term Debt	17,420,300		15,125,876
Rate Reduction Bonds	453,702		496,912
Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570		155,570
Common Shareholders' Equity:
Common Shares	1,789,092		1,789,092
Capital Surplus, Paid In	8,050,872		8,015,663
Retained Earnings	4,906,151		4,613,201
Accumulated Other Comprehensive Loss	(71,865)		(76,411)
Treasury Stock	(262,639)		(277,979)
Common Shareholders' Equity	14,411,611		14,063,566
Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	$	48,014,055	$	46,099,598

(Thousands of Dollars) As of September 30, 2020
As of December 31, 2019

ASSETS

Current Assets:

Cash and Cash Equivalents $ 729,993

$ 15,432
Receivables, Net (net of allowance for uncollectible accounts of $294,972 and $224,821 as of September 30, 2020 and December 31, 2019, respectively) 1,113,495

989,383
Unbilled Revenues 155,961

181,006
Fuel, Materials, Supplies and REC Inventory 214,300
235,471
Regulatory Assets 762,883

651,112
Prepayments and Other Current Assets 243,781

342,135
Total Current Assets 3,220,413

2,414,539
Property, Plant and Equipment, Net 29,092,981

27,585,470
Deferred Debits and Other Assets:

Regulatory Assets 4,883,165

4,863,639
Goodwill 4,403,666

4,427,266
Investments in Unconsolidated Affiliates 903,177
871,633
Marketable Securities 438,839

449,130
Other Long-Term Assets 565,104

512,238
Total Deferred Debits and Other Assets 11,193,951

11,123,906
Total Assets $ 43,507,345

$ 41,123,915

LIABILITIES AND CAPITALIZATION

Current Liabilities:

Notes Payable $ 60,500

$ 889,084
Long-Term Debt – Current Portion 1,078,186

327,411
Rate Reduction Bonds – Current Portion 43,210
43,210
Accounts Payable 1,222,058

1,147,872
Regulatory Liabilities 464,673

361,152
Other Current Liabilities 765,443

836,834
Total Current Liabilities 3,634,070

3,605,563
Deferred Credits and Other Liabilities:

Accumulated Deferred Income Taxes 3,960,672

3,755,777
Regulatory Liabilities 3,711,488

3,658,042
Derivative Liabilities 312,933

338,710
Asset Retirement Obligations 499,859
488,511
Accrued Pension, SERP and PBOP 1,163,229

1,370,245
Other Long-Term Liabilities 856,285

810,553
Total Deferred Credits and Other Liabilities 10,504,466

10,421,838
Long-Term Debt 14,736,310

13,770,828
Rate Reduction Bonds 496,912
540,122
Noncontrolling Interest – Preferred Stock of Subsidiaries 155,570

155,570
Common Shareholders' Equity:

Common Shares 1,789,092

1,729,292
Capital Surplus, Paid In 7,996,976

7,087,768
Retained Earnings 4,535,860

4,177,048
Accumulated Other Comprehensive Loss (60,397 )
(65,059 )
Treasury Stock (281,514 )
(299,055 )
Common Shareholders' Equity 13,980,017

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

Total Liabilities and Capitalization $ 43,507,345

$ 41,123,915

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

~~EVERSOURCE ENERGY AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF INCOME~~

~~(Unaudited)~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information) 2020 2019 2020 2019

Operating Revenues $ 2,343,642
$ 2,175,797
$ 6,670,497
$ 6,476,084

Operating Expenses:
Purchased Power, Fuel and Transmission 806,254
730,255
2,312,957
2,326,041
Operations and Maintenance 332,031
331,054
1,006,148
994,660
Depreciation 244,453
222,599
721,179
656,632
Amortization 57,515
73,854
130,687
183,760
Energy Efficiency Programs 145,047
136,832
408,794
382,785
Taxes Other Than Income Taxes 197,112
171,965
556,726
537,636
Impairment of Northern Pass Transmission 0
0
0
239,644
Total Operating Expenses 1,782,412
1,666,559
5,136,491
5,321,158
Operating Income 561,230
509,238
1,534,006
1,154,926
Interest Expense 134,066
135,216
403,067
399,654
Other Income, Net 29,218
26,968
83,565
103,818
Income Before Income Tax Expense 456,382
400,990
1,214,504
859,090
Income Tax Expense 108,242
80,226
275,621
194,435
Net Income 348,140
320,764
938,883
664,655
Net Income Attributable to Noncontrolling Interests 1,880
1,880
5,639
5,639
Net Income Attributable to Common Shareholders $ 346,260
$ 318,884
$ 933,244
$ 659,016

Basic Earnings Per Common Share $ 1.01
$ 0.98
$ 2.77
$ 2.06

Diluted Earnings Per Common Share $ 1.01
$ 0.98
$ 2.76
$ 2.05

Weighted Average Common Shares Outstanding:
Basic 343,076,614
324,037,169
337,375,172
320,442,253
Diluted 343,773,602
326,008,342
338,424,100
321,570,926

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

~~CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~

~~(Unaudited)~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019 2020 2019

Net Income $ 348,140
$ 320,764
$ 938,883
$ 664,655
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments 602
367
1,218
945
Changes in Unrealized (Losses)/Gains on
   Marketable Securities
(134 ) 169
295
1,268
Changes in Funded Status of Pension, SERP and
   PBOP Benefit Plans
1,693
1,088
3,149
5,770
Other Comprehensive Income, Net of Tax 2,161
1,624
4,662
7,983
Comprehensive Income Attributable to
   Noncontrolling Interests
(1,880 ) (1,880 ) (5,639 ) (5,639 )
Comprehensive Income Attributable to Common
   Shareholders
$ 348,421
$ 320,508
$ 937,906
$ 666,999

~~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 Nine Months Ended September 30, 2020
Common Shares
Capital
Surplus,
Paid In
Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information) Shares Amount
Balance as of January 1, 2020 329,880,645
$ 1,729,292
$ 7,087,768
$ 4,177,048
$ (65,059 ) $ (299,055 ) $ 12,629,994
Net Income

336,633
336,633
Dividends on Common Shares - $0.5675 Per Share

(187,462 ) (187,462 )
Dividends on Preferred Stock

(1,880 ) (1,880 )
Issuance of Common Shares - $5 par value 5,960,000
29,800
402,300
432,100
Long-Term Incentive Plan Activity

(15,295 )
(15,295 )
Issuance of Treasury Shares 570,542
17,230
10,516
27,746
Capital Stock Expense (12,314 ) (12,314 )
Adoption of New Accounting Standard (See Note 1B) (1,514 ) (1,514 )
Other Comprehensive Income

1,948
1,948
Balance as of March 31, 2020 336,411,187
1,759,092
7,479,689
4,322,825
(63,111 ) (288,539 ) 13,209,956
Net Income

254,112
254,112
Dividends on Common Shares - $0.5675 Per Share

(190,964 ) (190,964 )
Dividends on Preferred Stock

(1,880 ) (1,880 )
Issuance of Common Shares - $5 par value 6,000,000
30,000
487,560
517,560
Long-Term Incentive Plan Activity

7,694
7,694
Issuance of Treasury Shares 216,675

12,524
4,024
16,548
Capital Stock Expense (8,321 ) (8,321 )
Other Comprehensive Income

553
553
Balance as of June 30, 2020 342,627,862
1,789,092
7,979,146
4,384,093
(62,558 ) (284,515 ) 13,805,258
Net Income

348,140
348,140
Dividends on Common Shares - $0.5675 Per Share

(194,493 ) (194,493 )
Dividends on Preferred Stock

(1,880 ) (1,880 )
Long-Term Incentive Plan Activity

6,921
6,921
Issuance of Treasury Shares 169,611

10,909
3,001
13,910
Other Comprehensive Income

2,161
2,161
Balance as of September 30, 2020 342,797,473
$ 1,789,092
$ 7,996,976
$ 4,535,860
$ (60,397 ) $ (281,514 ) $ 13,980,017

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ~~COMMON SHAREHOLDERS' EQUITY~~INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information)	2021		2020		2021		2020

Operating Revenues	$	2,432,794	$	2,343,642	$	7,381,172	$	6,670,497

Operating Expenses:
Purchased Power, Fuel and Transmission	880,639		806,254		2,529,217		2,312,957
Operations and Maintenance	389,065		332,031		1,265,754		1,006,148
Depreciation	276,846		244,453		822,197		721,179
Amortization	45,236		57,515		158,860		130,687
Energy Efficiency Programs	143,796		145,047		460,814		408,794
Taxes Other Than Income Taxes	213,881		197,112		623,827		556,726
Total Operating Expenses	1,949,463		1,782,412		5,860,669		5,136,491
Operating Income	483,331		561,230		1,520,503		1,534,006
Interest Expense	147,962		134,066		431,162		403,067
Other Income, Net	43,768		29,218		124,588		83,565
Income Before Income Tax Expense	379,137		456,382		1,213,929		1,214,504
Income Tax Expense	94,091		108,242		294,461		275,621
Net Income	285,046		348,140		919,468		938,883
Net Income Attributable to Noncontrolling Interests	1,880		1,880		5,639		5,639
Net Income Attributable to Common Shareholders	$	283,166	$	346,260	$	913,829	$	933,244

Basic Earnings Per Common Share	$	0.82	$	1.01	$	2.66	$	2.77

Diluted Earnings Per Common Share	$	0.82	$	1.01	$	2.65	$	2.76

Weighted Average Common Shares Outstanding:
Basic	344,023,846		343,076,614		343,848,905		337,375,172
Diluted	344,669,782		343,773,602		344,480,056		338,424,100

For the Nine Months Ended September 30, 2019
Common Shares
Capital
Surplus,
Paid In
Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information) Shares Amount
Balance as of January 1, 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
Net Income

33,334
33,334
Dividends on Common Shares - $0.535 Per Share

(169,857 ) (169,857 )
Dividends on Preferred Stock

(1,880 ) (1,880 )
Issuance of Common Shares - $5 par value 5,980,000
29,900
403,650
433,550
Long-Term Incentive Plan Activity

6,470
6,470
Issuance of Treasury Shares 246,969
13,448
4,579
18,027
Capital Stock Expense (6,648 ) (6,648 )
Other Comprehensive Income

4,163
4,163
Balance as of June 30, 2019 323,574,439
1,699,292
6,659,009
3,954,492
(53,641 ) (304,559 ) 11,954,593
Net Income

320,764
320,764
Dividends on Common Shares - $0.535 Per Share

(173,156 ) (173,156 )
Dividends on Preferred Stock

(1,880 ) (1,880 )
Long-Term Incentive Plan Activity

6,697
6,697
Issuance of Treasury Shares 158,984
10,183
2,789
12,972
Other Comprehensive Income

1,624
1,624
Balance as of September 30, 2019 323,733,423
$ 1,699,292
$ 6,675,889
$ 4,100,220
$ (52,017 ) $ (301,770 ) $ 12,121,614

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

~~EVERSOURCE ENERGY AND SUBSIDIARIES~~

CONDENSED CONSOLIDATED STATEMENTS OF ~~CASH FLOWS~~COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020		2021		2020

Net Income	$	285,046	$	348,140	$	919,468	$	938,883
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	115		602		967		1,218
Changes in Unrealized (Losses)/Gains on Marketable Securities	(106)		(134)		(569)		295
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	2,468		1,693		4,148		3,149
Other Comprehensive Income, Net of Tax	2,477		2,161		4,546		4,662
Comprehensive Income Attributable to Noncontrolling Interests	(1,880)		(1,880)		(5,639)		(5,639)
Comprehensive Income Attributable to Common Shareholders	$	285,643	$	348,421	$	918,375	$	937,906

For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019

Operating Activities:

Net Income $ 938,883

$ 664,655
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

Depreciation 721,179

656,632
Deferred Income Taxes 156,795

73,487
Uncollectible Expense 31,101
46,417
Pension, SERP and PBOP Expense, Net 9,153

18,507
Pension and PBOP Contributions (107,985 )
(120,373 )
Regulatory (Under)/Over Recoveries, Net (29,287 )
80,688
Amortization 130,687

183,760
Proceeds from DOE Spent Nuclear Fuel Litigation 0
68,840
Impairment of Northern Pass Transmission 0
239,644
Other (69,216 )
(185,625 )
Changes in Current Assets and Liabilities:

Receivables and Unbilled Revenues, Net (193,895 )
(57,011 )
Fuel, Materials, Supplies and REC Inventory 21,102

34,030
Taxes Receivable/Accrued, Net 89,759

53,687
Accounts Payable (121,034 )
(157,355 )
Other Current Assets and Liabilities, Net (81,033 )
(105,133 )
Net Cash Flows Provided by Operating Activities 1,496,209

1,494,850

Investing Activities:

Investments in Property, Plant and Equipment (2,101,564 )
(2,129,037 )
Proceeds from Sales of Marketable Securities 386,712

458,322
Purchases of Marketable Securities (391,368 )
(405,095 )
Proceeds from the Sale of Hingham Water System 110,536
0
Investments in Unconsolidated Affiliates, Net (31,677 ) (374,913 )
Other Investing Activities 17,647

(1,126 )
Net Cash Flows Used in Investing Activities (2,009,714 )
(2,451,849 )

Financing Activities:

Issuance of Common Shares, Net of Issuance Costs 929,025
426,902
Cash Dividends on Common Shares (555,655 )
(495,571 )
Cash Dividends on Preferred Stock (5,639 )
(5,639 )
Decrease in Notes Payable (1,174,870 )
(197,500 )
Repayment of Rate Reduction Bonds (43,210 ) (52,332 )
Issuance of Long-Term Debt 2,360,000

1,475,000
Retirement of Long-Term Debt (302,236 )
(250,855 )
Other Financing Activities 18,030

(450 )
Net Cash Flows Provided by Financing Activities 1,225,445

899,555
Net Increase/(Decrease) in Cash and Restricted Cash 711,940

(57,444 )
Cash, Cash Equivalents and Restricted Cash - Beginning of Period 117,063

209,324
Cash, Cash Equivalents and Restricted Cash - End of Period $ 829,003

$ 151,880

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 Nine Months Ended September 30, 2021
	Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount
Balance as of January 1, 2021	342,954,023	$	1,789,092	$	8,015,663	$	4,613,201	$	(76,411)	$	(277,979)	$	14,063,566
Net Income						368,023						368,023
Dividends on Common Shares - $0.6025 Per Share						(206,913)						(206,913)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				(15,727)								(15,727)
Issuance of Treasury Shares	480,275			16,182						8,981		25,163

Other Comprehensive Income								1,188				1,188
Balance as of March 31, 2021	343,434,298	1,789,092		8,016,118		4,772,431		(75,223)		(268,998)		14,233,420
Net Income						266,400						266,400
Dividends on Common Shares - $0.6025 Per Share						(206,893)						(206,893)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				6,162								6,162
Issuance of Treasury Shares	166,805			10,679						3,120		13,799

Other Comprehensive Income								881				881
Balance as of June 30, 2021	343,601,103	1,789,092		8,032,959		4,830,058		(74,342)		(265,878)		14,311,889
Net Income						285,046						285,046
Dividends on Common Shares - $0.6025 Per Share						(207,073)						(207,073)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				6,478								6,478
Issuance of Treasury Shares	173,221			11,435						3,239		14,674
Other Comprehensive Income								2,477				2,477
Balance as of September 30, 2021	343,774,324	$	1,789,092	$	8,050,872	$	4,906,151	$	(71,865)	$	(262,639)	$	14,411,611

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)


	For the Nine Months Ended September 30, 2020
	Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount
Balance as of January 1, 2020	329,880,645	$	1,729,292	$	7,087,768	$	4,177,048	$	(65,059)	$	(299,055)	$	12,629,994
Net Income						336,633						336,633
Dividends on Common Shares - $0.5675 Per Share						(187,462)						(187,462)
Dividends on Preferred Stock						(1,880)						(1,880)
Issuance of Common Shares - $5 par value	5,960,000	29,800		402,300								432,100
Long-Term Incentive Plan Activity				(15,295)								(15,295)
Issuance of Treasury Shares	570,542			17,230						10,516		27,746
Capital Stock Expense				(12,314)								(12,314)
Adoption of Accounting Standards Update 2016-13						(1,514)						(1,514)
Other Comprehensive Income								1,948				1,948
Balance as of March 31, 2020	336,411,187	1,759,092		7,479,689		4,322,825		(63,111)		(288,539)		13,209,956
Net Income						254,112						254,112
Dividends on Common Shares - $0.5675 Per Share						(190,964)						(190,964)
Dividends on Preferred Stock						(1,880)						(1,880)
Issuance of Common Shares - $5 par value	6,000,000	30,000		487,560								517,560
Long-Term Incentive Plan Activity				7,694								7,694
Issuance of Treasury Shares	216,675			12,524						4,024		16,548
Capital Stock Expense				(8,321)								(8,321)
Other Comprehensive Income								553				553
Balance as of June 30, 2020	342,627,862	1,789,092		7,979,146		4,384,093		(62,558)		(284,515)		13,805,258
Net Income						348,140						348,140
Dividends on Common Shares - $0.5675 Per Share						(194,493)						(194,493)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				6,921								6,921
Issuance of Treasury Shares	169,611			10,909						3,001		13,910
Other Comprehensive Income								2,161				2,161
Balance as of September 30, 2020	342,797,473	$	1,789,092	$	7,996,976	$	4,535,860	$	(60,397)	$	(281,514)	$	13,980,017

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020

Operating Activities:
Net Income	$	919,468	$	938,883
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	822,197		721,179
Deferred Income Taxes	191,346		156,795
Uncollectible Expense	39,690		31,101
Pension, SERP and PBOP (Income)/Expense, Net	(10,882)		9,153
Pension and PBOP Contributions	(140,000)		(107,985)
Regulatory Over/(Under) Recoveries, Net	87,455		(29,287)
Charges at CL&P related to PURA Settlement Agreement and Storm Performance Penalty	103,583		—
Amortization	158,860		130,687


Other	(229,878)		(69,216)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(158,205)		(193,895)
Fuel, Materials, Supplies and REC Inventory	48,312		21,102
Taxes Receivable/Accrued, Net	44,003		89,759
Accounts Payable	(258,509)		(121,034)
Other Current Assets and Liabilities, Net	(97,167)		(81,033)
Net Cash Flows Provided by Operating Activities	1,520,273		1,496,209

Investing Activities:
Investments in Property, Plant and Equipment	(2,211,136)		(2,101,564)
Proceeds from Sales of Marketable Securities	334,619		386,712
Purchases of Marketable Securities	(313,961)		(391,368)
Proceeds from the Sale of Hingham Water System	—		110,536
Investments in Unconsolidated Affiliates, Net	(245,245)		(31,677)
Other Investing Activities	17,436		17,647
Net Cash Flows Used in Investing Activities	(2,418,287)		(2,009,714)

Financing Activities:
Issuance of Common Shares, Net of Issuance Costs	—		929,025
Cash Dividends on Common Shares	(603,611)		(555,655)
Cash Dividends on Preferred Stock	(5,639)		(5,639)
Decrease in Notes Payable	(458,325)		(1,174,870)
Repayment of Rate Reduction Bonds	(43,210)		(43,210)
Issuance of Long-Term Debt	3,150,000		2,360,000
Retirement of Long-Term Debt	(1,142,500)		(302,236)
Other Financing Activities	(45,522)		18,030
Net Cash Flows Provided by Financing Activities	851,193		1,225,445
Net (Decrease)/Increase in Cash and Restricted Cash	(46,821)		711,940
Cash and Restricted Cash - Beginning of Period	264,950		117,063
Cash and Restricted Cash - End of Period	$	218,129	$	829,003

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of September 30, 2021		As of December 31, 2020

ASSETS
Current Assets:
Cash	$	62,791	$	90,801
Receivables, Net (net of allowance for uncollectible accounts of $195,463 and $157,447 as of September 30, 2021 and December 31, 2020, respectively)	549,144		459,214
Accounts Receivable from Affiliated Companies	38,544		17,486
Unbilled Revenues	52,589		57,407
Materials and Supplies	54,894		57,924
Regulatory Assets	325,268		345,622
Prepaid Property Taxes	76,829		25,779
Prepayments and Other Current Assets	47,402		58,171
Total Current Assets	1,207,461		1,112,404
Property, Plant and Equipment, Net	10,598,836		10,234,556
Deferred Debits and Other Assets:
Regulatory Assets	1,981,805		1,866,152
Other Long-Term Assets	267,312		242,862
Total Deferred Debits and Other Assets	2,249,117		2,109,014
Total Assets	$	14,055,414	$	13,455,974

LIABILITIES AND CAPITALIZATION
Current Liabilities:


Accounts Payable	$	473,287	$	451,240
Accounts Payable to Affiliated Companies	98,298		51,118
Obligations to Third Party Suppliers	53,183		49,967
Regulatory Liabilities	311,269		137,166

Derivative Liabilities	72,249		68,767
Other Current Liabilities	168,547		102,060
Total Current Liabilities	1,176,833		860,318
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,495,407		1,408,343
Regulatory Liabilities	1,213,469		1,204,942
Derivative Liabilities	256,569		294,535
Accrued Pension, SERP and PBOP	313,206		478,325
Other Long-Term Liabilities	154,249		133,690
Total Deferred Credits and Other Liabilities	3,432,900		3,519,835
Long-Term Debt	4,215,096		3,914,835
Preferred Stock Not Subject to Mandatory Redemption	116,200		116,200
Common Stockholder's Equity:
Common Stock	60,352		60,352
Capital Surplus, Paid In	2,810,765		2,810,765
Retained Earnings	2,243,004		2,173,367
Accumulated Other Comprehensive Income	264		302
Common Stockholder's Equity	5,114,385		5,044,786
Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	$	14,055,414	$	13,455,974

(Thousands of Dollars) As of September 30, 2020 As of December 31, 2019

ASSETS
Current Assets:
Cash $ 8,173
$ 0
Receivables, Net (net of allowance for uncollectible accounts of $150,758 and $97,348 as of September 30, 2020 and December 31, 2019, respectively) 473,830
400,927
Accounts Receivable from Affiliated Companies 43,950
24,577
Unbilled Revenues 50,111
56,465
Materials and Supplies 57,744
50,700
Regulatory Assets 273,792
178,607
Prepaid Property Taxes 73,511
22,799
Prepayments and Other Current Assets 63,097
50,385
Total Current Assets 1,044,208
784,460
Property, Plant and Equipment, Net 10,065,346
9,625,765
Deferred Debits and Other Assets:
Regulatory Assets 1,732,739
1,557,261
Other Long-Term Assets 241,663
217,705
Total Deferred Debits and Other Assets 1,974,402
1,774,966
Total Assets $ 13,083,956
$ 12,185,191

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent $ 235,900
$ 63,800
Accounts Payable 554,489
374,698
Accounts Payable to Affiliated Companies 107,212
97,793
Obligations to Third Party Suppliers 52,883
56,952
Regulatory Liabilities 164,946
82,763
Derivative Liabilities 69,218
67,804
Other Current Liabilities 131,939
132,339
Total Current Liabilities 1,316,587
876,149
Deferred Credits and Other Liabilities:

Accumulated Deferred Income Taxes 1,350,403
1,244,551
Regulatory Liabilities 1,196,255
1,164,991
Derivative Liabilities 312,933
338,594
Accrued Pension, SERP and PBOP 325,173
391,159
Other Long-Term Liabilities 153,938
147,586
Total Deferred Credits and Other Liabilities 3,338,702
3,286,881
Long-Term Debt 3,518,115
3,518,136
Preferred Stock Not Subject to Mandatory Redemption 116,200
116,200
Common Stockholder's Equity:
Common Stock 60,352
60,352
Capital Surplus, Paid In 2,660,765
2,535,765
Retained Earnings 2,072,928
1,791,392
Accumulated Other Comprehensive Income 307
316
Common Stockholder's Equity 4,794,352
4,387,825
Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization $ 13,083,956
$ 12,185,191

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2020		2019		2020		2019		(Thousands of Dollars)	2021		2020		2021		2020

Operating Revenues	$	994,270	$	853,943	$	2,711,394	$	2,444,034	Operating Revenues	$	919,643	$	994,270	$	2,736,513	$	2,711,394

Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	399,117		299,017		1,089,232		865,389		Purchased Power and Transmission	392,301		399,117		1,073,712		1,089,232
Operations and Maintenance	147,487		135,077		417,717		399,065		Operations and Maintenance	137,816		147,487		465,630		417,717
Depreciation	80,583		76,250		238,735		224,095		Depreciation	85,304		80,583		253,132		238,735
Amortization of Regulatory Assets, Net	36,365		30,406		37,215		78,453		Amortization of Regulatory Assets, Net	28,921		36,365		76,637		37,215
Energy Efficiency Programs	41,829		40,129		109,655		86,897		Energy Efficiency Programs	35,714		41,829		100,810		109,655
Taxes Other Than Income Taxes	97,715		82,781		260,571		261,244		Taxes Other Than Income Taxes	99,901		97,715		275,178		260,571
Total Operating Expenses	803,096		663,660		2,153,125		1,915,143		Total Operating Expenses	779,957		803,096		2,245,099		2,153,125
Operating Income	191,174		190,283		558,269		528,891		Operating Income	139,686		191,174		491,414		558,269
Interest Expense	38,369		39,520		114,972		112,274		Interest Expense	42,778		38,369		124,371		114,972
Other Income, Net	5,917		4,831		16,273		11,564		Other Income, Net	6,903		5,917		21,690		16,273
Income Before Income Tax Expense	158,722		155,594		459,570		428,181		Income Before Income Tax Expense	103,811		158,722		388,733		459,570
Income Tax Expense	38,625		43,907		103,464		101,219		Income Tax Expense	33,658		38,625		104,626		103,464
Net Income	$	120,097	$	111,687	$	356,106	$	326,962	Net Income	$	70,153	$	120,097	$	284,107	$	356,106

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

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020		2021		2020

Net Income	$	70,153	$	120,097	$	284,107	$	356,106
Other Comprehensive Loss, Net of Tax:
Qualified Cash Flow Hedging Instruments	(7)		(7)		(20)		(20)
Changes in Unrealized (Losses)/Gains on Marketable Securities	(2)		(4)		(18)		11
Other Comprehensive Loss, Net of Tax	(9)		(11)		(38)		(9)
Comprehensive Income	$	70,144	$	120,086	$	284,069	$	356,097

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019 2020 2019

Net Income $ 120,097
$ 111,687
$ 356,106
$ 326,962
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments (7 ) (7 ) (20 ) (20 )
Changes in Unrealized (Losses)/Gains on
Marketable Securities
(4 ) 6
11
44
Other Comprehensive (Loss)/Income, Net of Tax (11 ) (1 ) (9 ) 24
Comprehensive Income $ 120,086
$ 111,686
$ 356,097
$ 326,986

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 Nine Months Ended September 30, 2021
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2021	6,035,205	$	60,352	$	2,810,765	$	2,173,367	$	302	$	5,044,786
Net Income						98,398				98,398
Dividends on Preferred Stock						(1,390)				(1,390)
Dividends on Common Stock						(70,100)				(70,100)

Other Comprehensive Loss								(32)		(32)
Balance as of March 31, 2021	6,035,205	60,352		2,810,765		2,200,275		270		5,071,662
Net Income						115,556				115,556
Dividends on Preferred Stock						(1,390)				(1,390)
Dividends on Common Stock						(70,100)				(70,100)
Other Comprehensive Income								3		3
Balance as of June 30, 2021	6,035,205	60,352		2,810,765		2,244,341		273		5,115,731
Net Income						70,153				70,153
Dividends on Preferred Stock						(1,390)				(1,390)
Dividends on Common Stock						(70,100)				(70,100)
Other Comprehensive Loss								(9)		(9)
Balance as of September 30, 2021	6,035,205	$	60,352	$	2,810,765	$	2,243,004	$	264	$	5,114,385

For the Nine Months Ended September 30, 2020
Common Stock
Capital
Surplus,
Paid In

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2020 6,035,205
$ 60,352
$ 2,535,765
$ 1,791,392
$ 316
$ 4,387,825
Net Income

118,738
118,738
Dividends on Preferred Stock

(1,390 ) (1,390 )
Dividends on Common Stock

(69,500 ) (69,500 )
Adoption of New Accounting Standard (See Note 1B) (900 ) (900 )
Other Comprehensive Loss

(1 ) (1 )
Balance as of March 31, 2020 6,035,205
60,352
2,535,765
1,838,340
315
4,434,772
Net Income

117,271
117,271
Dividends on Preferred Stock

(1,390 ) (1,390 )
Other Comprehensive Income

3
3
Balance as of June 30, 2020 6,035,205
60,352
2,535,765
1,954,221
318
4,550,656
Net Income

120,097
120,097
Dividends on Preferred Stock

(1,390 ) (1,390 )
Capital Contributions from Eversource Parent 125,000
125,000
Other Comprehensive Loss

(11 ) (11 )
Balance as of September 30, 2020 6,035,205
$ 60,352
$ 2,660,765
$ 2,072,928
$ 307
$ 4,794,352


	For the Nine Months Ended September 30, 2020
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2020	6,035,205	$	60,352	$	2,535,765	$	1,791,392	$	316	$	4,387,825
Net Income						118,738				118,738
Dividends on Preferred Stock						(1,390)				(1,390)
Dividends on Common Stock						(69,500)				(69,500)
Adoption of Accounting Standards Update 2016-13						(900)				(900)
Other Comprehensive Loss								(1)		(1)
Balance as of March 31, 2020	6,035,205	60,352		2,535,765		1,838,340		315		4,434,772
Net Income						117,271				117,271
Dividends on Preferred Stock						(1,390)				(1,390)
Other Comprehensive Income								3		3
Balance as of June 30, 2020	6,035,205	60,352		2,535,765		1,954,221		318		4,550,656
Net Income						120,097				120,097
Dividends on Preferred Stock						(1,390)				(1,390)
Capital Contributions from Eversource Parent				125,000						125,000
Other Comprehensive Loss								(11)		(11)
Balance as of September 30, 2020	6,035,205	$	60,352	$	2,660,765	$	2,072,928	$	307	$	4,794,352

For the Nine Months Ended September 30, 2019
Common Stock
Capital
Surplus,
Paid In

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 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
Net Income

104,804
104,804
Dividends on Preferred Stock

(1,390 ) (1,390 )
Dividends on Common Stock (176,400 ) (176,400 )
Other

1
1
Other Comprehensive Income

8
8
Balance as of June 30, 2019 6,035,205
60,352

2,410,765

1,664,995

326

4,136,438
Net Income

111,687
111,687
Dividends on Preferred Stock

(1,390 ) (1,390 )
Dividends on Common Stock (66,400 ) (66,400 )
Other Comprehensive Loss

(1 ) (1 )
Balance as of September 30, 2019 6,035,205
$ 60,352
$ 2,410,765
$ 1,708,892
$ 325
$ 4,180,334

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 Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020

Operating Activities:
Net Income	$	284,107	$	356,106
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	253,132		238,735
Deferred Income Taxes	77,147		92,590
Uncollectible Expense	10,183		10,013
Pension, SERP, and PBOP Expense, Net	4,478		8,629
Pension Contributions	(78,913)		(23,200)
Regulatory Underrecoveries, Net	(19,404)		(32,051)
Charges related to PURA Settlement Agreement and Storm Performance Penalty	103,583		—
Amortization of Regulatory Assets, Net	76,637		37,215
Other	(74,179)		(63,525)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(165,423)		(153,464)
Taxes Receivable/Accrued, Net	45,762		(1,515)
Accounts Payable	(54,226)		(1,976)
Other Current Assets and Liabilities, Net	(12,315)		(68,316)
Net Cash Flows Provided by Operating Activities	450,569		399,241

Investing Activities:
Investments in Property, Plant and Equipment	(563,234)		(609,690)
Other Investing Activities	251		496
Net Cash Flows Used in Investing Activities	(562,983)		(609,194)

Financing Activities:
Cash Dividends on Common Stock	(210,300)		(69,500)
Cash Dividends on Preferred Stock	(4,169)		(4,169)
Capital Contributions from Eversource Parent	—		125,000
Issuance of Long-Term Debt	425,000		—
Retirement of Long-Term Debt	(120,500)		—
Increase in Notes Payable to Eversource Parent	—		172,100
Other Financing Activities	(5,664)		(1,214)
Net Cash Flows Provided by Financing Activities	84,367		222,217
Net (Decrease)/Increase in Cash and Restricted Cash	(28,047)		12,264
Cash and Restricted Cash - Beginning of Period	99,809		4,971
Cash and Restricted Cash - End of Period	$	71,762	$	17,235

For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019

Operating Activities:
Net Income $ 356,106
$ 326,962
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 238,735
224,095
Deferred Income Taxes 92,590
19,999
Uncollectible Expense 10,013
12,084
Pension, SERP, and PBOP Expense, Net 8,629
9,843
Pension Contributions (23,200 ) (24,000 )
Regulatory (Under)/Over Recoveries, Net (32,051 ) 32,435
Amortization of Regulatory Assets, Net 37,215
78,453
Other (63,525 ) (66,737 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (153,464 ) (70,996 )
Taxes Receivable/Accrued, Net (1,515 ) 32,708
Accounts Payable (1,976 ) 8,604
Other Current Assets and Liabilities, Net (68,316 ) (51,937 )
Net Cash Flows Provided by Operating Activities 399,241
531,513

Investing Activities:
Investments in Property, Plant and Equipment (609,690 ) (699,288 )
Other Investing Activities 496
645
Net Cash Flows Used in Investing Activities (609,194 ) (698,643 )

Financing Activities:
Cash Dividends on Common Stock (69,500 ) (341,800 )
Cash Dividends on Preferred Stock (4,169 ) (4,169 )
Capital Contributions from Eversource Parent 125,000
0
Issuance of Long-Term Debt 0
500,000
Retirement of Long-Term Debt 0
(250,000 )
Increase in Notes Payable to Eversource Parent 172,100
173,100
Other Financing Activities (1,214 ) 12,667
Net Cash Flows Provided by Financing Activities 222,217
89,798
Net Increase/(Decrease) in Cash and Restricted Cash 12,264
(77,332 )
Cash and Restricted Cash - Beginning of Period 4,971
91,613
Cash and Restricted Cash - End of Period $ 17,235
$ 14,281

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 September 30, 2021		As of December 31, 2020

ASSETS
Current Assets:
Cash	$	3,538	$	102
Receivables, Net (net of allowance for uncollectible accounts of $105,020 and $91,583 as of September 30, 2021 and December 31, 2020, respectively)	489,503		403,045
Accounts Receivable from Affiliated Companies	27,417		30,095
Unbilled Revenues	47,844		38,342
Materials, Supplies and REC Inventory	83,667		133,894
Taxes Receivable	—		65,051
Regulatory Assets	388,408		399,882
Prepayments and Other Current Assets	22,490		21,833
Total Current Assets	1,062,867		1,092,244
Property, Plant and Equipment, Net	10,611,728		10,123,062
Deferred Debits and Other Assets:
Regulatory Assets	1,247,715		1,304,019
Prepaid PBOP	224,244		204,138
Other Long-Term Assets	185,555		162,836
Total Deferred Debits and Other Assets	1,657,514		1,670,993
Total Assets	$	13,332,109	$	12,886,299

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	138,000	$	195,000
Notes Payable to Eversource Parent	24,600		21,300
Long-Term Debt – Current Portion	—		250,000
Accounts Payable	338,369		383,558
Accounts Payable to Affiliated Companies	78,974		95,703
Obligations to Third Party Suppliers	137,211		98,572
Renewable Portfolio Standards Compliance Obligations	72,124		127,536
Regulatory Liabilities	205,771		164,761
Other Current Liabilities	118,747		72,118
Total Current Liabilities	1,113,796		1,408,548
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,494,976		1,459,906
Regulatory Liabilities	1,561,572		1,550,390
Accrued Pension and SERP	110,752		172,571
Other Long-Term Liabilities	344,088		337,245
Total Deferred Credits and Other Liabilities	3,511,388		3,520,112
Long-Term Debt	3,984,724		3,393,221
Preferred Stock Not Subject to Mandatory Redemption	43,000		43,000
Common Stockholder's Equity:
Common Stock	—		—
Capital Surplus, Paid In	2,053,942		1,993,942
Retained Earnings	2,624,784		2,527,167
Accumulated Other Comprehensive Income	475		309
Common Stockholder's Equity	4,679,201		4,521,418
Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	$	13,332,109	$	12,886,299

(Thousands of Dollars) As of September 30, 2020 As of December 31, 2019

ASSETS

Current Assets:
Cash $ 87
$ 52
Receivables, Net (net of allowance for uncollectible accounts of $76,760 and $75,406 as of September 30, 2020 and December 31, 2019, respectively) 439,504
346,785
Accounts Receivable from Affiliated Companies 30,599
29,914
Unbilled Revenues 44,936
37,482
Materials, Supplies and REC Inventory 96,351
124,060
Regulatory Assets 278,604
285,591
Prepayments and Other Current Assets 17,613
31,150
Total Current Assets 907,694
855,034
Property, Plant and Equipment, Net 9,943,408
9,472,770
Deferred Debits and Other Assets:
Regulatory Assets 1,194,092
1,250,029
Prepaid PBOP 192,579
166,058
Other Long-Term Assets 148,282
144,368
Total Deferred Debits and Other Assets 1,534,953
1,560,455
Total Assets $ 12,386,055
$ 11,888,259

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable $ 60,500
$ 10,500
Notes Payable to Eversource Parent 36,600
30,300
Long-Term Debt – Current Portion 250,000
95,000
Accounts Payable 304,025
363,691
Accounts Payable to Affiliated Companies 84,942
96,307
Obligations to Third Party Suppliers 115,194
108,827
Renewable Portfolio Standards Compliance Obligations 92,000
150,429
Regulatory Liabilities 210,744
209,180
Other Current Liabilities 104,725
71,333
Total Current Liabilities 1,258,730
1,135,567
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 1,394,072
1,357,265
Regulatory Liabilities 1,534,760
1,516,585
Accrued Pension and SERP 84,088
108,243
Other Long-Term Liabilities 353,030
320,629
Total Deferred Credits and Other Liabilities 3,365,950
3,302,722
Long-Term Debt 3,392,836
3,247,086
Preferred Stock Not Subject to Mandatory Redemption 43,000
43,000
Common Stockholder's Equity:
Common Stock 0
0
Capital Surplus, Paid In 1,813,442
1,813,442
Retained Earnings 2,511,742
2,346,287
Accumulated Other Comprehensive Income 355
155
Common Stockholder's Equity 4,325,539
4,159,884
Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization $ 12,386,055

$ 11,888,259

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020		2021		2020

Operating Revenues	$	918,698	$	875,371	$	2,343,116	$	2,270,174

Operating Expenses:
Purchased Power and Transmission	294,052		267,375		711,667		702,117
Operations and Maintenance	142,074		131,143		421,649		369,293
Depreciation	84,820		80,366		251,530		238,232
Amortization of Regulatory Assets, Net	8,073		22,527		23,963		69,139
Energy Efficiency Programs	86,699		85,244		226,071		210,666
Taxes Other Than Income Taxes	54,723		54,680		163,501		153,985
Total Operating Expenses	670,441		641,335		1,798,381		1,743,432
Operating Income	248,257		234,036		544,735		526,742
Interest Expense	37,329		31,029		106,829		95,000
Other Income, Net	20,215		12,802		58,941		38,152
Income Before Income Tax Expense	231,143		215,809		496,847		469,894
Income Tax Expense	53,692		50,081		114,560		106,309
Net Income	$	177,451	$	165,728	$	382,287	$	363,585

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019 2020 2019

Operating Revenues $ 875,371
$ 878,669
$ 2,270,174
$ 2,358,174

Operating Expenses:

Purchased Power and Transmission 267,375
300,726
702,117
859,227
Operations and Maintenance 131,143
120,917
369,293
342,804
Depreciation 80,366
74,664
238,232
220,303
Amortization of Regulatory Assets, Net 22,527
27,296
69,139
73,064
Energy Efficiency Programs 85,244
84,409
210,666
227,042
Taxes Other Than Income Taxes 54,680
51,266
153,985
144,314
Total Operating Expenses 641,335
659,278
1,743,432
1,866,754
Operating Income 234,036
219,391
526,742
491,420
Interest Expense 31,029
29,322
95,000
85,442
Other Income, Net 12,802
10,735
38,152
32,479
Income Before Income Tax Expense 215,809
200,804
469,894
438,457
Income Tax Expense 50,081
45,864
106,309
99,769
Net Income $ 165,728
$ 154,940
$ 363,585
$ 338,688

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020		2021		2020

Net Income	$	177,451	$	165,728	$	382,287	$	363,585
Other Comprehensive (Loss)/Income, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	(40)		(43)		(122)		(129)
Qualified Cash Flow Hedging Instruments	5		109		293		327
Changes in Unrealized (Losses)/Gains on Marketable Securities	(1)		(1)		(5)		2
Other Comprehensive (Loss)/Income, Net of Tax	(36)		65		166		200
Comprehensive Income	$	177,415	$	165,793	$	382,453	$	363,785

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019 2020 2019

Net Income $ 165,728
$ 154,940
$ 363,585
$ 338,688
Other Comprehensive Income, Net of Tax:
  Changes in Funded Status of SERP Benefit Plan (43 ) 1
(129 ) 3
  Qualified Cash Flow Hedging Instruments 109
109
327
328
  Changes in Unrealized (Losses)/Gains on
    Marketable Securities
(1 ) 2
2
12
Other Comprehensive Income, Net of Tax 65
112
200
343
Comprehensive Income $ 165,793
$ 155,052
$ 363,785
$ 339,031

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 Nine Months Ended September 30, 2021
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2021	200	$	—	$	1,993,942	$	2,527,167	$	309	$	4,521,418
Net Income						93,924				93,924
Dividends on Preferred Stock						(490)				(490)
Dividends on Common Stock						(206,400)				(206,400)

Other Comprehensive Income								61		61
Balance as of March 31, 2021	200	—		1,993,942		2,414,201		370		4,408,513
Net Income						110,912				110,912
Dividends on Preferred Stock						(490)				(490)
Dividends on Common Stock						(76,800)				(76,800)
Capital Contributions from Eversource Parent				60,000						60,000
Other Comprehensive Income								141		141
Balance as of June 30, 2021	200	—		2,053,942		2,447,823		511		4,502,276
Net Income						177,451				177,451
Dividends on Preferred Stock						(490)				(490)
Other Comprehensive Loss								(36)		(36)
Balance as of September 30, 2021	200	$	—	$	2,053,942	$	2,624,784	$	475	$	4,679,201

For the Nine Months Ended September 30, 2020
Common Stock
Capital
Surplus,
Paid In

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2020 200
$ 0
$ 1,813,442
$ 2,346,287
$ 155
$ 4,159,884
Net Income

100,390
100,390
Dividends on Preferred Stock

(490 ) (490 )
Dividends on Common Stock

(196,500 ) (196,500 )
Adoption of New Accounting Standard (See Note 1B) (161 ) (161 )
Other Comprehensive Income

67
67
Balance as of March 31, 2020 200

0

1,813,442

2,249,526

222

4,063,190
Net Income

97,468

97,468
Dividends on Preferred Stock

(490 )
(490 )
Other Comprehensive Income

68
68
Balance as of June 30, 2020 200
0
1,813,442
2,346,504
290
4,160,236
Net Income

165,728

165,728
Dividends on Preferred Stock

(490 )
(490 )
Other Comprehensive Income

65
65
Balance as of September 30, 2020 200
$ 0
$ 1,813,442
$ 2,511,742
$ 355
$ 4,325,539


	For the Nine Months Ended September 30, 2020
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2020	200	$	—	$	1,813,442	$	2,346,287	$	155	$	4,159,884
Net Income						100,390				100,390
Dividends on Preferred Stock						(490)				(490)
Dividends on Common Stock						(196,500)				(196,500)
Adoption of Accounting Standards Update 2016-13						(161)				(161)
Other Comprehensive Income								67		67
Balance as of March 31, 2020	200	—		1,813,442		2,249,526		222		4,063,190
Net Income						97,468				97,468
Dividends on Preferred Stock						(490)				(490)
Other Comprehensive Income								68		68
Balance as of June 30, 2020	200	—		1,813,442		2,346,504		290		4,160,236
Net Income						165,728				165,728
Dividends on Preferred Stock						(490)				(490)
Other Comprehensive Income								65		65
Balance as of September 30, 2020	200	$	—	$	1,813,442	$	2,511,742	$	355	$	4,325,539

For the Nine Months Ended September 30, 2019
Common Stock
Capital
Surplus,
Paid In

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2019 200
$ 0
$ 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
0
1,653,442
2,131,015
(1,261 ) 3,783,196
Net Income

89,734

89,734
Dividends on Preferred Stock

(490 )
(490 )
Dividends on Common Stock

(121,200 )
(121,200 )
Other Comprehensive Income

114
114
Balance as of June 30, 2019 200
0

1,653,442

2,099,059

(1,147 )
3,751,354
Net Income

154,940

154,940
Dividends on Preferred Stock

(490 )
(490 )
Capital Contributions from Eversource Parent

10,000

10,000
Other Comprehensive Income

112
112
Balance as of September 30, 2019 200
$ 0
$ 1,663,442
$ 2,253,509
$ (1,035 ) $ 3,915,916

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 Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020

Operating Activities:
Net Income	$	382,287	$	363,585
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	251,530		238,232
Deferred Income Taxes	12,905		13,436
Uncollectible Expense	12,477		11,321
Pension, SERP and PBOP Income, Net	(19,627)		(13,714)
Pension Contributions	(10,000)		(650)
Regulatory Over/(Under) Recoveries, Net	86,111		(20,047)
Amortization of Regulatory Assets, Net	23,963		69,139
Other	(71,005)		(25,508)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(110,336)		(104,528)
Materials, Supplies and REC Inventory	50,227		27,709
Taxes Receivable/Accrued, Net	109,561		55,405
Accounts Payable	(85,431)		(57,300)
Other Current Assets and Liabilities, Net	(15,322)		(54,481)
Net Cash Flows Provided by Operating Activities	617,340		502,599

Investing Activities:
Investments in Property, Plant and Equipment	(675,245)		(655,039)
Other Investing Activities	70		138
Net Cash Flows Used in Investing Activities	(675,175)		(654,901)

Financing Activities:
Cash Dividends on Common Stock	(283,200)		(196,500)
Cash Dividends on Preferred Stock	(1,470)		(1,470)
Issuance of Long-Term Debt	600,000		400,000
Retirement of Long-Term Debt	(250,000)		(95,000)
Capital Contributions from Eversource Parent	60,000		—
Increase in Notes Payable to Eversource Parent	3,300		6,300
(Decrease)/Increase in Notes Payable	(57,000)		50,000
Other Financing Activities	(10,367)		(4,931)
Net Cash Flows Provided by Financing Activities	61,263		158,399
Net Increase in Cash and Restricted Cash	3,428		6,097
Cash and Restricted Cash - Beginning of Period	17,410		6,312
Cash and Restricted Cash - End of Period	$	20,838	$	12,409

For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019

Operating Activities:

Net Income $ 363,585
$ 338,688
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

Depreciation 238,232
220,303
Deferred Income Taxes 13,436
11,080
Uncollectible Expense 11,321
18,598
Pension, SERP and PBOP Income, Net (13,714 ) (9,779 )
Pension and PBOP Contributions (650 ) (4,910 )
Regulatory (Under)/Over Recoveries, Net (20,047 ) 46,543
Amortization of Regulatory Assets, Net 69,139
73,064
Other (25,508 ) (50,685 )
Changes in Current Assets and Liabilities:

Receivables and Unbilled Revenues, Net (104,528 ) (68,167 )
Materials, Supplies and REC Inventory 27,709
24,033
Taxes Receivable/Accrued, Net 55,405
66,917
Accounts Payable (57,300 ) (47,256 )
Other Current Assets and Liabilities, Net (54,481 ) (31,495 )
Net Cash Flows Provided by Operating Activities 502,599
586,934

Investing Activities:

Investments in Property, Plant and Equipment (655,039 ) (636,214 )
Other Investing Activities 138
67
Net Cash Flows Used in Investing Activities (654,901 ) (636,147 )

Financing Activities:

Cash Dividends on Common Stock (196,500 ) (181,800 )
Cash Dividends on Preferred Stock (1,470 ) (1,470 )
Issuance of Long-Term Debt 400,000
400,000
Retirement of Long-Term Debt (95,000 ) 0
Capital Contributions from Eversource Parent 0
30,000
Increase in Notes Payable to Eversource Parent 6,300
48,700
Increase/(Decrease) in Notes Payable 50,000
(250,500 )
Other Financing Activities (4,931 ) (3,868 )
Net Cash Flows Provided by Financing Activities 158,399
41,062
Net Increase/(Decrease) in Cash and Restricted Cash 6,097
(8,151 )
Cash and Restricted Cash - Beginning of Period 6,312
14,659
Cash and Restricted Cash - End of Period $ 12,409
$ 6,508

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of September 30, 2021		As of December 31, 2020

ASSETS
Current Assets:
Cash	$	3,869	$	141
Receivables, Net (net of allowance for uncollectible accounts of $16,996 and $17,157 as of September 30, 2021 and December 31, 2020, respectively)	136,481		119,899
Accounts Receivable from Affiliated Companies	13,866		10,925
Unbilled Revenues	46,854		46,041

Materials, Supplies and REC Inventory	24,789		26,829
Regulatory Assets	97,948		115,852
Special Deposits	18,605		36,767
Prepaid Property Taxes	5,987		26,257
Prepayments and Other Current Assets	2,851		10,788
Total Current Assets	351,250		393,499
Property, Plant and Equipment, Net	3,529,050		3,374,270
Deferred Debits and Other Assets:
Regulatory Assets	829,848		873,203
Other Long-Term Assets	22,684		23,733
Total Deferred Debits and Other Assets	852,532		896,936
Total Assets	$	4,732,832	$	4,664,705

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	66,500	$	46,300
Long-Term Debt – Current Portion	—		282,000
Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	108,243		132,635
Accounts Payable to Affiliated Companies	25,055		43,397
Regulatory Liabilities	96,817		58,756

Other Current Liabilities	61,883		58,487
Total Current Liabilities	401,708		664,785
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	535,656		537,627
Regulatory Liabilities	389,426		383,183
Accrued Pension, SERP and PBOP	162,115		184,715
Other Long-Term Liabilities	35,564		37,874
Total Deferred Credits and Other Liabilities	1,122,761		1,143,399
Long-Term Debt	1,163,630		817,070
Rate Reduction Bonds	453,702		496,912
Common Stockholder's Equity:
Common Stock	—		—
Capital Surplus, Paid In	1,088,134		928,134
Retained Earnings	502,870		615,018
Accumulated Other Comprehensive Income/(Loss)	27		(613)
Common Stockholder's Equity	1,591,031		1,542,539
Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	$	4,732,832	$	4,664,705

(Thousands of Dollars) As of September 30, 2020 As of December 31, 2019

ASSETS
Current Assets:
Cash $ 767
$ 413
Receivables, Net (net of allowance for uncollectible accounts of $13,972 and $10,497 as of September 30, 2020 and December 31, 2019, respectively) 121,125
99,934
Accounts Receivable from Affiliated Companies 11,280
6,763
Unbilled Revenues 40,003
48,146
Materials, Supplies and REC Inventory 25,258
24,957
Regulatory Assets 103,570
84,053
Special Deposits 19,088
32,513
Prepayments and Other Current Assets 12,819
19,431
Total Current Assets 333,910
316,210
Property, Plant and Equipment, Net 3,319,483
3,129,506
Deferred Debits and Other Assets:
Regulatory Assets 808,784
861,672
Other Long-Term Assets 37,128
43,270
Total Deferred Debits and Other Assets 845,912
904,942
Total Assets $ 4,499,305
$ 4,350,658

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent $ 29,100
$ 27,000
Long-Term Debt – Current Portion 282,000
0
Rate Reduction Bonds – Current Portion 43,210
43,210
Accounts Payable 110,150
127,081
Accounts Payable to Affiliated Companies 25,728
37,946
Regulatory Liabilities 61,457
65,766
Accrued Interest 14,690
19,138
Other Current Liabilities 36,182
32,736
Total Current Liabilities 602,517
352,877
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 525,422
506,212
Regulatory Liabilities 406,211
413,381
Accrued Pension, SERP and PBOP 123,609
157,638
Other Long-Term Liabilities 39,320
37,075
Total Deferred Credits and Other Liabilities 1,094,562
1,114,306
Long-Term Debt 816,974
951,620
Rate Reduction Bonds 496,912
540,122
Common Stockholder's Equity:
Common Stock 0
0
Capital Surplus, Paid In 903,134
903,134
Retained Earnings 586,090
490,306
Accumulated Other Comprehensive Loss (884 ) (1,707 )
Common Stockholder's Equity 1,488,340
1,391,733
Commitments and Contingencies (Note 9)

Total Liabilities and Capitalization $ 4,499,305
$ 4,350,658

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020		2021		2020

Operating Revenues	$	314,893	$	283,669	$	887,177	$	815,261

Operating Expenses:
Purchased Power and Transmission	107,353		96,612		279,475		273,311
Operations and Maintenance	57,041		50,657		168,242		151,802
Depreciation	30,169		25,410		89,462		74,494
Amortization of Regulatory Assets, Net	17,922		7,360		62,744		39,034
Energy Efficiency Programs	10,762		11,081		30,475		29,231
Taxes Other Than Income Taxes	24,038		18,174		69,639		58,331
Total Operating Expenses	247,285		209,294		700,037		626,203
Operating Income	67,608		74,375		187,140		189,058
Interest Expense	14,321		14,942		42,774		44,029
Other Income, Net	3,171		4,065		11,598		10,882
Income Before Income Tax Expense	56,458		63,498		155,964		155,911
Income Tax Expense	12,315		16,347		32,512		37,527
Net Income	$	44,143	$	47,151	$	123,452	$	118,384

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019 2020 2019

Operating Revenues $ 283,669
$ 280,431
$ 815,261
$ 797,766

Operating Expenses:
Purchased Power and Transmission 96,612
101,381
273,311
300,680
Operations and Maintenance 50,657
50,838
151,802
156,197
Depreciation 25,410
23,539
74,494
69,720
Amortization of Regulatory Assets, Net 7,360
20,421
39,034
39,944
Energy Efficiency Programs 11,081
7,300
29,231
20,229
Taxes Other Than Income Taxes 18,174
12,487
58,331
50,523
Total Operating Expenses 209,294
215,966
626,203
637,293
Operating Income 74,375
64,465
189,058
160,473
Interest Expense 14,942
16,378
44,029
44,654
Other Income, Net 4,065
4,634
10,882
14,640
Income Before Income Tax Expense 63,498
52,721
155,911
130,459
Income Tax Expense 16,347
11,842
37,527
29,947
Net Income $ 47,151
$ 40,879
$ 118,384
$ 100,512

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020		2021		2020

Net Income	$	44,143	$	47,151	$	123,452	$	118,384
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	109		268		673		806
Changes in Unrealized (Losses)/Gains on Marketable Securities	(6)		(8)		(33)		17
Other Comprehensive Income, Net of Tax	103		260		640		823
Comprehensive Income	$	44,246	$	47,411	$	124,092	$	119,207

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019 2020 2019

Net Income $ 47,151
$ 40,879
$ 118,384
$ 100,512
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments 268
268
806
806
Changes in Unrealized (Losses)/Gains on
Marketable Securities
(8 ) 10
17
75
Other Comprehensive Income, Net of Tax 260
278
823
881
Comprehensive Income $ 47,411
$ 41,157
$ 119,207
$ 101,393

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


	For the Nine Months Ended September 30, 2021
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive (Loss)/Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2021	301	$	—	$	928,134	$	615,018	$	(613)	$	1,542,539
Net Income						44,676				44,676
Dividends on Common Stock						(25,200)				(25,200)

Other Comprehensive Income								255		255
Balance as of March 31, 2021	301	—		928,134		634,494		(358)		1,562,270
Net Income						34,633				34,633
Dividends on Common Stock						(185,200)				(185,200)
Capital Contributions from Eversource Parent				160,000						160,000
Other Comprehensive Income								282		282
Balance as of June 30, 2021	301	—		1,088,134		483,927		(76)		1,571,985
Net Income						44,143				44,143
Dividends on Common Stock						(25,200)				(25,200)
Other Comprehensive Income								103		103
Balance as of September 30, 2021	301	$	—	$	1,088,134	$	502,870	$	27	$	1,591,031

For the Nine Months Ended September 30, 2020
Common Stock
Capital
Surplus,
Paid In

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2020 301
$ 0
$ 903,134
$ 490,306
$ (1,707 ) $ 1,391,733
Net Income

39,601
39,601
Dividends on Common Stock

(22,300 ) (22,300 )
Adoption of New Accounting Standard (See Note 1B) (300 ) (300 )
Other Comprehensive Income

278
278
Balance as of March 31, 2020 301

0

903,134

507,307

(1,429 )
1,409,012
Net Income

31,632
31,632
Other Comprehensive Income

285
285
Balance as of June 30, 2020 301
0

903,134

538,939

(1,144 )
1,440,929
Net Income

47,151
47,151
Other Comprehensive Income

260
260
Balance as of September 30, 2020 301
$ 0
$ 903,134
$ 586,090
$ (884 ) $ 1,488,340


	For the Nine Months Ended September 30, 2020
	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2020	301	$	—	$	903,134	$	490,306	$	(1,707)	$	1,391,733
Net Income						39,601				39,601
Dividends on Common Stock						(22,300)				(22,300)
Adoption of Accounting Standards Update 2016-13						(300)				(300)
Other Comprehensive Income								278		278
Balance as of March 31, 2020	301	—		903,134		507,307		(1,429)		1,409,012
Net Income						31,632				31,632
Other Comprehensive Income								285		285
Balance as of June 30, 2020	301	—		903,134		538,939		(1,144)		1,440,929
Net Income						47,151				47,151
Other Comprehensive Income								260		260
Balance as of September 30, 2020	301	$	—	$	903,134	$	586,090	$	(884)	$	1,488,340

For the Nine Months Ended September 30, 2019
Common Stock
Capital
Surplus,
Paid In

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2019 301
$ 0
$ 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

0

678,134

641,039

(2,544 )
1,316,629
Net Income

26,852
26,852
Dividends on Common Stock
(214,000 ) (214,000 )
Other Comprehensive Income

296
296
Balance as of June 30, 2019 301
0

678,134

453,891

(2,248 )
1,129,777
Net Income

40,879
40,879
Dividends on Common Stock

(19,000 )

(19,000 )
Other Comprehensive Income 278
278
Balance as of September 30, 2019 301
$ 0
$ 678,134
$ 475,770
$ (1,970 ) $ 1,151,934

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 Nine Months Ended September 30,
(Thousands of Dollars)	2021		2020

Operating Activities:
Net Income	$	123,452	$	118,384
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	89,462		74,494
Deferred Income Taxes	(13,385)		13,959
Uncollectible Expense	4,381		2,058
Regulatory Over/(Under) Recoveries, Net	29,029		(22,203)
Amortization of Regulatory Assets, Net	62,744		39,034
Pension, SERP and PBOP Income, Net	(2,664)		(894)
Pension Contributions	—		(19,500)
Other	(22,738)		(7,545)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(25,607)		(24,562)
Materials, Supplies and REC Inventory	2,040		(301)
Taxes Receivable/Accrued, Net	22,286		1,313
Accounts Payable	(42,654)		(29,388)
Other Current Assets and Liabilities, Net	10,826		4,363
Net Cash Flows Provided by Operating Activities	237,172		149,212

Investing Activities:
Investments in Property, Plant and Equipment	(217,414)		(248,899)
Other Investing Activities	431		1,969
Net Cash Flows Used in Investing Activities	(216,983)		(246,930)

Financing Activities:
Cash Dividends on Common Stock	(235,600)		(22,300)
Capital Contributions from Eversource Parent	160,000		—
Issuance of Long-Term Debt	350,000		150,000
Retirement of Long-Term Debt	(282,000)		—
Repayment of Rate Reduction Bonds	(43,210)		(43,210)
Increase in Notes Payable to Eversource Parent	20,200		2,100
Other Financing Activities	(2,961)		(2,965)
Net Cash Flows (Used in)/Provided by Financing Activities	(33,571)		83,625
Net Decrease in Cash and Restricted Cash	(13,382)		(14,093)
Cash and Restricted Cash - Beginning of Period	39,555		36,688
Cash and Restricted Cash - End of Period	$	26,173	$	22,595

For the Nine Months Ended September 30,
(Thousands of Dollars) 2020 2019

Operating Activities:
Net Income $ 118,384
$ 100,512
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 74,494
69,720
Deferred Income Taxes 13,959
12,960
Uncollectible Expense 2,058
4,977
Regulatory Underrecoveries, Net (22,203 ) (13,347 )
Amortization of Regulatory Assets, Net 39,034
39,944
Pension, SERP and PBOP (Income)/Expense, Net (894 ) 683
Pension Contributions (19,500 ) (15,400 )
Other (7,545 ) (23,865 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (24,562 ) (13,498 )
Materials, Supplies and REC Inventory (301 ) 13,545
Taxes Receivable/Accrued, Net 1,313
31,909
Accounts Payable (29,388 ) (12,100 )
Other Current Assets and Liabilities, Net 4,363
6,754
Net Cash Flows Provided by Operating Activities 149,212
202,794

Investing Activities:
Investments in Property, Plant and Equipment (248,899 ) (209,031 )
Other Investing Activities 1,969
904
Net Cash Flows Used in Investing Activities (246,930 ) (208,127 )

Financing Activities:
Cash Dividends on Common Stock (22,300 ) (252,000 )
Issuance of Long-Term Debt 150,000
300,000
Repayment of Rate Reduction Bonds (43,210 ) (52,332 )
Increase/(Decrease) in Notes Payable to Eversource Parent 2,100
(14,900 )
Other Financing Activities (2,965 ) (4,146 )
Net Cash Flows Provided by/(Used in) Financing Activities 83,625
(23,378 )
Net Decrease in Cash and Restricted Cash (14,093 ) (28,711 )
Cash and Restricted Cash - Beginning of Period 36,688
52,723
Cash and Restricted Cash - End of Period $ 22,595
$ 24,012

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

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

COMBINED NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)

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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and Eversource Gas Company of Massachusetts (EGMA) (natural gas utilities) and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 4.3 million electric, natural gas and water customers through 9 regulated utilities in Connecticut, Massachusetts and New Hampshire.

On October 9, 2020, Eversource completed the acquisition of certain assets that comprised NiSource’s local natural gas distribution business in Massachusetts, which was previously doing business as Columbia Gas of Massachusetts (CMA). The natural gas distribution assets acquired from CMA were assigned to Eversource Gas Company of Massachusetts, an indirect wholly-owned subsidiary of Eversource formed in 2020. The LNG assets acquired from CMA were assigned to Hopkinton LNG Corp. The cash purchase price was $1.1 billion plus a target working capital amount, which is subject to adjustment to reflect actual working capital as of the closing date. See Note 17, "Acquisition of Assets of Columbia Gas of Massachusetts," for further information.

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 ~~2019~~2020 Form 10-K, which was filed with the SEC on February ~~27, 2020.~~17, 2021. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020 and the cash flows for the nine months ended September 30, ~~2020~~2021 and ~~2019.~~2020. The results of operations and comprehensive income for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 and the cash flows for the nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 are not necessarily indicative of the results expected for a full year.

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

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

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

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

COVID-19 has adversely affected customers, workers and the ~~economy~~U.S. economy. We provide a critical service to our customers and ~~caused volatility in~~have taken extensive measures to maintain its safety and reliability. We continue to address the ~~financial markets. Due to the inherent uncertainty~~impacts of the ~~unprecedented~~COVID-19 pandemic and ~~evolving situation, we continue to closely monitor~~ how ~~COVID-19~~the related developments affect Eversource. ~~As of~~We are in the ~~date~~re-entry phase of our ~~filing and based on available information, we~~pandemic response plan, in which the majority of our employees under remote work arrangements have transitioned back to the workplace. We have not experienced significant impacts directly related to the pandemic that have ~~adversely~~materially affected our current operations, ~~financial position,~~our workforce, or results of ~~operations, and cash flows.~~operations. The extent of the impact to us in the future will vary, and depend ~~in large part~~ on the duration, scope and severity of the pandemic ~~and the timing and extent of COVID-19 relief legislation,~~ and the resulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome of ~~planned~~future proceedings before our state regulatory commissions to recover our incremental costs associated with ~~COVID-19.~~COVID-19, which include uncollectible customer receivable expenses.

~~We believe that we have in place, or are developing, successful mechanisms~~Based on the status of our COVID-19 regulatory dockets, communications with our state regulatory commissions, ~~that allow, or~~and policies and practices in the jurisdictions in which we operate, we believe our state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses, while balancing the impact on our customers’ bills and our operating cash flows. See Note 1C, "Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts," for discussion of our evaluation of the allowance for doubtful accounts as of September 30, ~~2020~~2021 in light of the COVID-19 ~~pandemic.~~pandemic and Note 2, "Regulatory Accounting," for the amount of net incremental COVID-19 costs deferred on our balance sheets.

An extended economic slowdown has resulted in lower demand for electricity, natural gas and/or water by our commercial and industrial customers. However, fluctuations in retail sales volumes for CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas, Eversource Gas Company of Massachusetts, and our Connecticut water distribution business do not materially impact earnings due to their respective state regulatory commission-approved distribution revenue decoupling mechanisms.

As of September 30, 2020, we did not identify indicators or triggering events for impairments to our goodwill, long-lived assets, available-for-sale debt securities, or equity method investment carrying values.

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

B. Accounting Standards

Accounting Standards ~~Issued but Not Yet Effective:~~Recently Adopted: ~~In December 2019,~~On January 1, 2021, the ~~FASB issued~~Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the general principles of current income tax guidance in ASC 740 and simplifies and improves consistency in application of that income tax guidance through clarifications of and amendments to ASC 740. The ~~guidance is effective in the first quarter of 2021. The~~ ASU isdid not ~~expected to~~ have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric and PSNH.

~~Accounting Standards Recently Adopted:~~ ~~On January 1, 2020, the Company adopted ASU 2016-13,~~ ~~Financial Instruments - Credit Losses (Topic 326),~~ which provides a model for recognizing credit losses on financial instruments based on an estimate of current expected losses, requiring immediate recognition of credit losses expected over the life of a financial instrument. The Company determined the impacts of this standard on the allowance for credit losses on its financial instruments, primarily accounts receivable. As of January 1, 2020, the Company recorded increases to the allowance for uncollectible accounts for late fees and other receivable amounts of $1.6 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively. The impact to retained earnings, net of tax, was $1.5 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively.

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

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

~~On January 1, 2020, the Company adopted ASU 2018-15,~~ ~~Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.~~ The ASU aligned the requirements for capitalizing costs incurred to implement a cloud computing arrangement with existing internal-use software guidance. The prospective implementation of this standard did not have any impact on the financial statements of Eversource, CL&P, NSTAR Electric or PSNH for the period ending September 30, 2020.

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

C. Allowance for Uncollectible Accounts

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

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

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

As of September 30, ~~2020~~,2021, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the related economic downturn. This evaluation included an analysis of collection and customer payment trends, ~~in 2020,~~ economic conditions, delinquency statistics, aging-based quantitative assessments, the impact on residential customer bills because of energy usage and change in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, and ~~the impacts of~~COVID-19 developments, including any potential federal governmental pandemic relief programs ~~for our customers~~ and the expansion of unemployment benefit initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment.

This evaluation has shown that our operating companies have experienced an increase in aged receivables and ~~some~~ lower cash collections from customers because of the length of the moratorium on disconnections in Connecticut and Massachusetts, and the economic slowdown resulting from the COVID-19 pandemic. In Connecticut, the moratorium on disconnections of commercial and non-hardship residential customers ended in June 2021 and September 2021, respectively, but is still in place for hardship residential customers. In Massachusetts, the moratorium on disconnections of commercial customers and residential customers ended in September 2020 and July 2021, respectively. Disconnection activities have resumed after these moratoria have expired, which has resulted in recent improved collection experience and more customers applying for, and receiving, hardship status. On July 7, 2021, the NHPUC issued an order to New Hampshire utilities that concluded that recovery of incremental bad debt or waived late fees related to the COVID-19 pandemic would be addressed in a future rate case to the extent those costs are relevant at that time. As a result of the order, in the first nine months of 2021, PSNH removed its $0.6 million deferral of net incremental COVID-19 costs. In New Hampshire, the moratorium on disconnections of non-hardship residential and commercial customers ended in late 2020 and for hardship residential customers ended in May 2021 and PSNH has resumed disconnection activities, which has resulted in improved collection of outstanding customer receivable balances.

Based upon the evaluation performed, ~~for~~in the ~~three and~~first nine months ~~ended September 30, 2020,~~of 2021, management increased the allowance for uncollectible ~~costs~~accounts for amounts incurred as a result of COVID-19 by ~~$11.3 million and $16.5~~$25.8 million for Eversource ~~respectively ($2.8~~(increase of $16.3 million for CL&P and $12.5 million at our natural gas businesses, and decrease of $1.8 million at NSTAR Electric). In the third quarter of 2021, the COVID-19 related allowance for ~~both periods, $5.1~~uncollectible accounts decreased by $6.5 million ~~for~~at Eversource (increased $4.0 million at CL&P, and decreased $8.3 million at NSTAR Electric ~~for both periods,~~ and ~~$1.5~~$2.2 million ~~for PSNH for both periods)~~at our natural gas businesses). ~~These~~The COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs at our Connecticut and Massachusetts utilities or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. As of September 30, 2021, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $57.0 million at Eversource ($20.1 million at CL&P, $8.5 million at NSTAR Electric, and $27.4 million at our natural gas businesses).

Management concluded that the reserve balance as of September 30, ~~2020~~2021 adequately reflected the collection risk and net realizable value for Eversource’s receivables. Management will continue to evaluate the adequacy of the uncollectible allowance in future reporting periods based on an ongoing assessment of accounts receivable collections, delinquency statistics, and analysis of aging-based quantitative assessments.

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

The total allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The activity in the allowance for uncollectible accounts by portfolio segment as of September 30this as follows:


	Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other Receivables		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale and Other Receivables		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other Receivables		Total Allowance		Total Allowance
Three Months Ended 2021
Beginning Balance	$	210.7	$	215.1	$	425.8	$	145.6	$	43.2	$	188.8	$	35.9	$	62.1	$	98.0	$	17.2
Uncollectible Expense	—		12.0		12.0		—		3.6		3.6		—		5.1		5.1		1.2
Uncollectible Costs Deferred (1)	22.8		1.7		24.5		4.5		5.7		10.2		11.8		(3.5)		8.3		1.2
Write-Offs	(3.9)		(20.5)		(24.4)		(3.5)		(5.4)		(8.9)		(0.1)		(7.4)		(7.5)		(2.8)
Recoveries Collected	0.3		3.5		3.8		0.2		1.6		1.8		—		1.1		1.1		0.2
Ending Balance	$	229.9	$	211.8	$	441.7	$	146.8	$	48.7	$	195.5	$	47.6	$	57.4	$	105.0	$	17.0

Nine Months Ended 2021
Beginning Balance	$	194.8	$	164.1	$	358.9	$	129.1	$	28.3	$	157.4	$	39.7	$	51.9	$	91.6	$	17.2
Uncollectible Expense	—		39.7		39.7		—		10.2		10.2		—		12.5		12.5		4.4
Uncollectible Costs Deferred (1)	44.8		53.3		98.1		25.7		21.4		47.1		8.3		11.8		20.1		2.0
Write-Offs	(10.6)		(55.2)		(65.8)		(8.7)		(14.8)		(23.5)		(0.4)		(22.6)		(23.0)		(7.3)
Recoveries Collected	0.9		9.9		10.8		0.7		3.6		4.3		—		3.8		3.8		0.7
Ending Balance	$	229.9	$	211.8	$	441.7	$	146.8	$	48.7	$	195.5	$	47.6	$	57.4	$	105.0	$	17.0

Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Hardship Accounts
Retail (Non-Hardship),
Wholesale, and Other Receivables
Total Allowance Hardship Accounts
Retail (Non-Hardship),
Wholesale and Other Receivables
Total Allowance Hardship Accounts
Retail (Non-Hardship),
Wholesale, and Other Receivables
Total Allowance Total Allowance
Three Months Ended
Beginning Balance $ 175.5
$ 94.5
$ 270.0
$ 116.3
$ 20.4
$ 136.7
$ 34.6
$ 34.1
$ 68.7
$ 11.8
Uncollectible Expense ⁽¹⁾
0
10.5
10.5
0
3.8
3.8
0
4.5
4.5
0.8
Uncollectible Costs Deferred ⁽²⁾
10.1
20.4
30.5
11.2
4.9
16.1
(1.3 ) 10.4
9.1
3.2
Write-Offs (7.3 ) (11.8 ) (19.1 ) (2.6 ) (4.6 ) (7.2 ) (0.2 ) (6.3 ) (6.5 ) (2.0 )
Recoveries Collected 0.4
2.7
3.1
0.3
1.1
1.4
0
1.0
1.0
0.2
Ending Balance $ 178.7
$ 116.3
$ 295.0
$ 125.2
$ 25.6
$ 150.8
$ 33.1
$ 43.7
$ 76.8
$ 14.0

Nine Months Ended
Beginning Balance $ 143.3
$ 81.5
$ 224.8
$ 80.1
$ 17.2
$ 97.3
$ 43.9
$ 31.5
$ 75.4
$ 10.5
ASU 2016-13 Implementation Impact on January 1, 2020 21.6
2.2
23.8
21.3
0.9
22.2
(1.6 ) 0.3
(1.3 ) 0.3
Uncollectible Expense ⁽¹⁾
0
31.1
31.1
0
10.0
10.0
0
11.3
11.3
2.1
Uncollectible Costs Deferred ⁽²⁾
24.9
41.5
66.4
32.7
8.3
41.0
(8.4 ) 17.3
8.9
5.6
Write-Offs (12.3 ) (49.3 ) (61.6 ) (10.0 ) (14.0 ) (24.0 ) (0.8 ) (20.5 ) (21.3 ) (5.0 )
Recoveries Collected 1.2
9.3
10.5
1.1
3.2
4.3
0
3.8
3.8
0.5
Ending Balance $ 178.7
$ 116.3
$ 295.0
$ 125.2
$ 25.6
$ 150.8
$ 33.1
$ 43.7
$ 76.8
$ 14.0


	Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other Receivables		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale and Other Receivables		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other Receivables		Total Allowance		Total Allowance
Three Months Ended 2020
Beginning Balance	$	175.5	$	94.5	$	270.0	$	116.3	$	20.4	$	136.7	$	34.6	$	34.1	$	68.7	$	11.8
Uncollectible Expense	—		10.5		10.5		—		3.8		3.8		—		4.5		4.5		0.8
Uncollectible Costs Deferred (1)	10.1		20.4		30.5		11.2		4.9		16.1		(1.3)		10.4		9.1		3.2
Write-Offs	(7.3)		(11.8)		(19.1)		(2.6)		(4.6)		(7.2)		(0.2)		(6.3)		(6.5)		(2.0)
Recoveries Collected	0.4		2.7		3.1		0.3		1.1		1.4		—		1.0		1.0		0.2
Ending Balance	$	178.7	$	116.3	$	295.0	$	125.2	$	25.6	$	150.8	$	33.1	$	43.7	$	76.8	$	14.0

Nine Months Ended 2020
Beginning Balance	$	143.3	$	81.5	$	224.8	$	80.1	$	17.2	$	97.3	$	43.9	$	31.5	$	75.4	$	10.5
ASU 2016-13 Implementation Impact on January 1, 2020	21.6		2.2		23.8		21.3		0.9		22.2		(1.6)		0.3		(1.3)		0.3
Uncollectible Expense	—		31.1		31.1		—		10.0		10.0		—		11.3		11.3		2.1
Uncollectible Costs Deferred (1)	24.9		41.5		66.4		32.7		8.3		41.0		(8.4)		17.3		8.9		5.6
Write-Offs	(12.3)		(49.3)		(61.6)		(10.0)		(14.0)		(24.0)		(0.8)		(20.5)		(21.3)		(5.0)
Recoveries Collected	1.2		9.3		10.5		1.1		3.2		4.3		—		3.8		3.8		0.5
Ending Balance	$	178.7	$	116.3	$	295.0	$	125.2	$	25.6	$	150.8	$	33.1	$	43.7	$	76.8	$	14.0

⁽¹⁾Uncollectible expense associated with customer and other accounts receivable is included in Operations and Maintenance expense on the statements of income. For the three and nine months ended September 30, 2019, uncollectible expense included in Operations and Maintenance Expense was $14.9 million and $46.4 million for Eversource, $4.5 million and $12.1 million for CL&P, $7.0 million and $18.6 million for NSTAR Electric and $1.8 million and $5.0 million for PSNH, respectively.

⁽²⁾(1) ~~The current period provision for~~These expected credit losses isare deferred as a regulatory ~~cost~~costs on the balance sheets, as ~~this amount is~~these amounts are ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to ~~COVID-19.~~COVID-19 and uncollectible energy supply costs.

D. Fair Value Measurements

Fair value measurement guidance is applied to derivative contracts that are not elected or designated as "normal purchases" or "normal sales" (normal) and to the marketable securities held in trusts. Fair value measurement guidance is also applied to valuations of the investments used to calculate the funded status of pension and PBOP plans, the nonrecurring fair value measurements of nonfinancial assets such as goodwill, long-lived assets, equity method investments, and AROs, and in the ~~estimated~~valuation of the acquisition of CMA's assets in 2020. The fair value measurement guidance was also applied in estimating the fair value of preferred stock, long-term debt and RRBs.

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

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

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

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

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

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

E. Other Income, Net

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


																								For the Three Months Ended
																								September 30, 2021								September 30, 2020
(Millions of Dollars)																							(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components																							Pension, SERP and PBOP Non-Service Income Components	$	21.7	$	4.2	$	10.1	$	2.5	$	11.0	$	0.9	$	7.2	$	1.8
AFUDC Equity																							AFUDC Equity	10.3		1.7		6.2		0.3		10.3		3.5		5.5		0.9
Equity in Earnings of Unconsolidated Affiliates (1)																							Equity in Earnings of Unconsolidated Affiliates (1)	4.9		—		0.1		—		3.9		—		0.1		—
Investment (Loss)/Income																							Investment (Loss)/Income	(0.6)		(0.3)		(0.2)		(0.1)		1.0		1.3		(0.2)		0.2
Interest Income																							Interest Income	7.3		1.3		3.9		0.4		1.5		0.2		0.1		1.2
Gain on Sale of Property																							Gain on Sale of Property	—		—		—		—		1.5		—		—		—
Other																							Other	0.2		—		0.1		0.1		—		—		0.1		—
Total Other Income, Net																							Total Other Income, Net	$	43.8	$	6.9	$	20.2	$	3.2	$	29.2	$	5.9	$	12.8	$	4.1

	For the Three Months Ended																							For the Nine Months Ended
	September 30, 2020										September 30, 2019													September 30, 2021								September 30, 2020
(Millions of Dollars)	Eversource			CL&P		NSTAR Electric			PSNH		Eversource			CL&P			NSTAR Electric			PSNH			(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components	$	11.0		$	0.9	$	7.2		$	1.8	$	10.1		$	1.7		$	5.6		$	1.4		Pension, SERP and PBOP Non-Service Income Components	$	63.9	$	11.2	$	30.3	$	7.9	$	34.3	$	3.0	$	22.2	$	5.2
AFUDC Equity	10.3			3.5		5.5			0.9		10.5			3.6			5.6			1.0			AFUDC Equity	28.7		5.1		18.6		1.2		31.8		11.4		15.8		3.5
Equity in Earnings of Unconsolidated Affiliates ⁽¹⁾	3.9			0		0.1			0		6.1			0			0.2			0			Equity in Earnings of Unconsolidated Affiliates (1)	13.3		—		0.3		—		13.8		—		0.4		—
Investment Income/(Loss)	1.0			1.3		(0.2		)	0.2		(2.8		)	(0.8		)	(0.9		)	(0.3		)	Investment Income/(Loss)	0.7		1.2		0.6		0.3		(1.5)		—		(1.5)		0.1
Interest Income	1.5			0.2		0.1			1.2		2.9			0.3			0.1			2.5			Interest Income	17.2		4.1		8.8		2.0		3.3		1.8		0.7		2.0
Gain on Sale of Property	1.5			0		0			0		0			0			0			0			Gain on Sale of Property	0.1		—		—		0.1		1.8		—		0.3		—
Other	0			0		0.1			0		0.2			0			0.1			0			Other	0.7		0.1		0.3		0.1		0.1		0.1		0.3		0.1
Total Other Income, Net	$	29.2		$	5.9	$	12.8		$	4.1	$	27.0		$	4.8		$	10.7		$	4.6		Total Other Income, Net	$	124.6	$	21.7	$	58.9	$	11.6	$	83.6	$	16.3	$	38.2	$	10.9

	For the Nine Months Ended
	September 30, 2020										September 30, 2019
(Millions of Dollars)	Eversource			CL&P		NSTAR Electric			PSNH		Eversource			CL&P			NSTAR Electric			PSNH
Pension, SERP and PBOP Non-Service Income Components	$	34.3		$	3.0	$	22.2		$	5.2	$	23.2		$	0.1		$	18.0		$	3.5
AFUDC Equity	31.8			11.4		15.8			3.5		34.5			9.4			14.7			2.1
Equity in Earnings of Unconsolidated Affiliates ⁽¹⁾	13.8			0		0.4			0		37.0			0.2			0.6			0
Investment (Loss)/Income	(1.5		)	0		(1.5		)	0.1		(2.3		)	0.9			(1.5		)	0
Interest Income	3.3			1.8		0.7			2.0		10.8			1.1			0.5			9.0
Gain on Sale of Property	1.8			0		0.3			0		0.2			0			0			0
Other	0.1			0.1		0.3			0.1		0.4			(0.1		)	0.2			0
Total Other Income, Net	$	83.6		$	16.3	$	38.2		$	10.9	$	103.8		$	11.6		$	32.5		$	14.6

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

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


	For the Three Months Ended				For the Nine Months Ended
(Millions of Dollars)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Eversource	$	49.4	$	48.4	$	137.9	$	129.1
CL&P	46.1		45.6		120.7		114.2

For the Three Months Ended For the Nine Months Ended
(Millions of Dollars) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
Eversource $ 48.4
$ 42.6
$ 129.1
$ 124.0
CL&P 45.6
39.8
114.2
107.8

Separate from above was an amount recorded as Taxes Other Than Income Taxes at CL&P related to the remittance to the State of Connecticut of energy efficiency funds collected from customers of $21.4 million for the nine months ended September 30, 2019. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. This amount was recorded separately, with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the Eversource and CL&P statements of income.

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

G. Supplemental Cash Flow Information

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


(Millions of Dollars)	As of September 30, 2021		As of September 30, 2020
Eversource	$	359.6	$	357.4
CL&P	75.3		97.8
NSTAR Electric	94.2		92.6
PSNH	32.8		50.0

(Millions of Dollars) As of September 30, 2020 As of September 30, 2019
Eversource $ 357.4
$ 317.8
CL&P 97.8
107.6
NSTAR Electric 92.6
79.0
PSNH 50.0
35.8

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 September 30, 2021								As of December 31, 2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash as reported on the Balance Sheets	$	88.2	$	62.8	$	3.5	$	3.9	$	106.6	$	90.8	$	0.1	$	0.1
Restricted cash included in:
Special Deposits	55.5		8.7		17.2		18.6		73.6		8.7		17.2		36.8
Marketable Securities	29.7		0.3		0.1		0.5		41.2		0.3		0.1		0.6
Other Long-Term Assets	44.7		—		—		3.2		43.6		—		—		2.1
Cash and Restricted Cash as reported on the Statements of Cash Flows	$	218.1	$	71.8	$	20.8	$	26.2	$	265.0	$	99.8	$	17.4	$	39.6

As of September 30, 2020 As of December 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Cash and Cash Equivalents as reported on the Balance Sheets $ 730.0
$ 8.2
$ 0.1
$ 0.8
$ 15.4
$ 0
$ 0.1
$ 0.4
Restricted cash included in:
Special Deposits 51.3
8.6
12.2
19.1
52.5
4.6
6.2
32.5
Marketable Securities 45.6
0.4
0.1
0.6
46.0
0.4
0
0.6
Other Long-Term Assets 2.1
0
0
2.1
3.2
0
0
3.2
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows $ 829.0
$ 17.2
$ 12.4
$ 22.6
$ 117.1
$ 5.0
$ 6.3
$ 36.7

Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, and CYAPC and YAEC cash balances. Special Deposits are included in Current Assets on the balance sheets. Restricted cash included in Marketable Securities represents money market funds held in trusts to fund certain non-qualified executive benefits and restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations. Restricted cash included in Other Long-Term Assets includes $41.5 million related to an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley, and an additional energy efficiency program established under the terms of the EGMA settlement agreement.

2. REGULATORY ACCOUNTING

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

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

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

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


	As of September 30, 2021								As of December 31, 2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Benefit Costs	$	2,566.1	$	540.2	$	638.4	$	249.7	$	2,794.2	$	632.3	$	690.0	$	267.6
Income Taxes, Net	756.4		458.1		113.8		18.7		747.1		458.9		110.4		15.2
Securitized Stranded Costs	489.7		—		—		489.7		522.1		—		—		522.1
Storm Restoration Costs, Net	944.2		674.2		198.1		71.9		765.6		515.1		186.4		64.1
Regulatory Tracker Mechanisms	883.0		304.6		320.0		76.8		850.5		246.6		332.2		95.3
Derivative Liabilities	265.3		265.3		—		—		296.3		293.1		—		—
Goodwill-related	302.0		—		259.3		—		314.7		—		270.2		—
Asset Retirement Obligations	121.6		33.7		57.8		4.0		118.4		32.1		58.6		3.9
Other Regulatory Assets	146.9		31.0		48.7		16.9		161.0		33.7		56.1		20.9
Total Regulatory Assets	6,475.2		2,307.1		1,636.1		927.7		6,569.9		2,211.8		1,703.9		989.1
Less: Current Portion	1,016.3		325.3		388.4		97.9		1,076.6		345.6		399.9		115.9
Total Long-Term Regulatory Assets	$	5,458.9	$	1,981.8	$	1,247.7	$	829.8	$	5,493.3	$	1,866.2	$	1,304.0	$	873.2

As of September 30, 2020 As of December 31, 2019
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
Benefit Costs $ 2,256.1
$ 483.3
$ 601.4
$ 205.7
$ 2,382.9
$ 539.0
$ 629.8
$ 218.2
Income Taxes, Net 731.2
459.8
110.0
13.7
725.8
458.8
108.0
12.8
Securitized Stranded Costs 532.9
0
0
532.9
565.3
0
0
565.3
Storm Restoration Costs, Net 739.6
510.7
171.4
57.5
540.6
274.6
200.6
65.4
Regulatory Tracker Mechanisms 531.8
174.4
203.0
82.3
411.5
78.3
207.1
65.8
Derivative Liabilities 311.8
311.8
0
0
334.5
329.2
0
0
Goodwill-related 318.9
0
273.8
0
331.5
0
284.6
0
Asset Retirement Obligations 105.8
32.3
56.2
3.8
97.2
30.8
50.3
3.6
Other Regulatory Assets 118.0
34.2
56.9
16.5
125.4
25.2
55.2
14.7
Total Regulatory Assets 5,646.1
2,006.5

1,472.7

912.4

5,514.7
1,735.9

1,535.6

945.8
Less: Current Portion 762.9
273.8
278.6
103.6
651.1
178.6
285.6
84.1
Total Long-Term Regulatory Assets $ 4,883.2
$ 1,732.7

$ 1,194.1

$ 808.8

$ 4,863.6
$ 1,557.3

$ 1,250.0

$ 861.7

CL&P Deferred Storm ~~Event:~~Costs: ~~On August 4,~~In 2021 and 2020, multiple tropical and severe storms caused extensive damage to CL&P’s electric distribution systems and customer outages, along with significant pre-staging costs. These storms resulted in deferred pre-staging and storm restoration costs of $195 million for 2021 storms and $344 million for 2020 storms, including the catastrophic impact of Tropical Storm Isaias ~~caused catastrophic damage to our electric distribution system, which resulted~~ in significant amounts and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. PURA has opened an investigation into CL&P's response to Tropical Storm Isaias. PURA will also investigate the prudence of costs incurred by CL&P to restore service as part of its response. CL&P is fully participating in PURA’s investigations andAugust 2020, among others. Management believes ~~that~~all these storm ~~restoration~~ costs were prudently incurred and meet the criteria for specific cost recovery. ~~As a result, management does not expect the storm costs to have a material impact on the results of operations of Eversource or CL&P.~~

Based on current estimates, the storm resulted in deferred storm restoration costs of approximately $257 million at CL&P and $276 million at Eversource as of September 30, 2020. The estimated cost of restoration will change as additional cost information becomes available and final storm costs are deferred or capitalized. The majority of incremental storm costs relate to third-party vendors that are external field crews needed to restore power and address municipal priorities. CL&P’s current estimate of total storm costs includes its projection of the cost of such vendors, but that estimate will change as CL&P receives and examines all storm related invoices. On October 12, 2020, CL&P filed a motion requesting an extension of time to submit a final and complete report on storm costs to PURA by July 1, 2021. On October 23, 2020, PURA denied this request, and on November 2, 2020, CL&P filed a request for reconsideration of PURA’s ruling.

~~CL&P Rate Suspension~~: On July 31, 2020, PURA temporarily suspended its June 26, 2020 approval of certain delivery rate components effective July 1, 2020, and ordered CL&P to restore rates to those in effect as of June 30, 2020 in order to allow PURA time to reexamine the rates to ensure that CL&P is not over-collecting revenues in the short-term. Rates were adjusted effective August 1, 2020. PURA indicated that this was due to the convergence of a number of recent events, including the COVID-19 crisis and its corresponding effect on customer energy usage, as well as the warmer than normal weather in July. The impact of the temporary suspension of rates is deferred on our balance sheet and results in an increase to our regulatory assets, with no impact on the statement of income, and an expected delay in the collection of our costs. This deferral is reflected within Regulatory Tracker Mechanisms in the table above.

Regulatory Costs in Long-Term Assets: Eversource's regulated companies had ~~$183.9~~$260.6 million (including ~~$84.2~~$111.2 million for CL&P, ~~$55.0~~$85.1 million for NSTAR Electric and ~~$15.3~~$3.2 million for PSNH) and ~~$146.0~~$196.9 million (including ~~$51.8~~$84.1 million for CL&P, ~~$55.7~~$69.8 million for NSTAR Electric and ~~$18.0~~$4.3 million for PSNH) of additional regulatory costs as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, that were included in long-term assets on the balance sheets. These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency. However, based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates.

As of September 30, 2021 and December 31, 2020, these regulatory costs included net incremental COVID-19 related costs deferred byof $41.3 million and $24.0 million at Eversource, ~~totaled $15.1 million,~~respectively, of which, ~~$11.4~~$34.5 million ~~was~~and $15.8 million, respectively, related to non-tracked uncollectible expense and the remainder related to facilities and fleet cleaning, sanitizing costs and supplies for personal protective equipment. Net incremental COVID-19 related costs deferred at CL&P and NSTAR Electric totaled $15.9 million and $10.9 million, respectively, as of September 30, 2021, and $4.7 million and $11.9 million, respectively, as of December 31, 2020, and primarily related to deferred non-tracked uncollectible expense.

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


	As of September 30, 2021								As of December 31, 2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
EDIT due to Tax Cuts and Jobs Act of 2017	$	2,737.1	$	1,001.5	$	1,025.6	$	363.9	$	2,778.6	$	1,010.7	$	1,044.0	$	371.5
Cost of Removal	676.7		117.0		384.1		19.0		624.8		98.4		363.6		12.9
Benefit Costs	65.9		—		56.5		—		83.6		—		72.5		—
Regulatory Tracker Mechanisms	484.5		208.9		180.6		87.5		366.5		148.9		139.7		47.8
AFUDC - Transmission	79.6		43.6		36.0		—		76.8		44.6		32.2		—
CL&P Settlement Agreement and Storm Performance Penalty	103.4		103.4		—		—		—		—		—		—
Other Regulatory Liabilities	373.3		50.4		84.6		15.8		309.9		39.5		63.2		9.8
Total Regulatory Liabilities	4,520.5		1,524.8		1,767.4		486.2		4,240.2		1,342.1		1,715.2		442.0
Less: Current Portion	612.9		311.3		205.8		96.8		389.4		137.2		164.8		58.8
Total Long-Term Regulatory Liabilities	$	3,907.6	$	1,213.5	$	1,561.6	$	389.4	$	3,850.8	$	1,204.9	$	1,550.4	$	383.2

As of September 30, 2020 As of December 31, 2019
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
EDIT due to Tax Cuts and Jobs Act $ 2,805.3
$ 1,013.9
$ 1,050.1
$ 388.7
$ 2,844.6
$ 1,022.8
$ 1,071.2
$ 392.8
Cost of Removal 610.4
93.0
354.8
12.9
559.8
64.6
330.6
16.3
Benefit Costs 79.5
0
68.7
0
84.5
0
72.2
0
Regulatory Tracker Mechanisms 445.7
171.1
181.9
56.2
325.1
94.8
165.6
57.0
AFUDC - Transmission 77.1
45.0
32.1
0
73.2
46.0
27.2
0
Other Regulatory Liabilities 158.2
38.2
57.9
9.9
132.0
19.6
59.0
13.1
Total Regulatory Liabilities 4,176.2
1,361.2

1,745.5

467.7

4,019.2
1,247.8

1,725.8

479.2
Less: Current Portion 464.7
164.9
210.7
61.5
361.2
82.8
209.2
65.8
Total Long-Term Regulatory Liabilities $ 3,711.5
$ 1,196.3

$ 1,534.8

$ 406.2

$ 3,658.0
$ 1,165.0

$ 1,516.6

$ 413.4

Recent Regulatory Developments:

CL&P Tropical Storm Isaias Costs: On August 4, 2020, Tropical Storm Isaias caused catastrophic damage to our electric distribution system, which resulted in significant numbers and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. PURA will investigate the prudence of costs incurred by CL&P to restore service in response to Tropical Storm Isaias. That investigation is expected to occur either in a separate proceeding not yet initiated or as part of CL&P’s next rate review proceeding. Tropical Storm Isaias resulted in deferred storm restoration costs of approximately $234 million at CL&P and $251 million at Eversource as of September 30, 2021. The estimated cost of restoration may continue to change as additional cost information becomes available and final post-storm costs are deferred or capitalized. Although PURA found that CL&P’s performance in its preparation for and response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While it is possible that some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. Eversource and CL&P continue to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm cost review by PURA to have a material impact on the financial position or results of operations of Eversource or CL&P.

CL&P Tropical Storm Isaias Response Investigation: On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain storm performance standards and was imprudent in certain instances. The $28.4 million performance penalty assessed by PURA was recorded within current regulatory liabilities on CL&P’s balance sheet. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.

3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

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


Eversource	As of September 30, 2021		As of December 31, 2020
(Millions of Dollars)
Distribution - Electric	$	17,257.3	$	16,703.2
Distribution - Natural Gas	6,334.9		6,111.2
Transmission - Electric	12,396.2		11,954.0
Distribution - Water	1,771.1		1,743.1
Solar	200.4		201.5
Utility	37,959.9		36,713.0
Other (1)	1,430.5		1,269.0
Property, Plant and Equipment, Gross	39,390.4		37,982.0
Less: Accumulated Depreciation
Utility	(8,830.2)		(8,476.3)
Other	(550.0)		(477.6)
Total Accumulated Depreciation	(9,380.2)		(8,953.9)
Property, Plant and Equipment, Net	30,010.2		29,028.1
Construction Work in Progress	2,456.9		1,854.4
Total Property, Plant and Equipment, Net	$	32,467.1	$	30,882.5

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

As of September 30, 2020 As of December 31, 2019
(Millions of Dollars) CL&P
NSTAR
Electric
PSNH CL&P
NSTAR
Electric
PSNH
Distribution - Electric $ 6,728.7
$ 7,414.0
$ 2,332.9
$ 6,485.5
$ 7,163.7
$ 2,271.1
Transmission - Electric 5,299.0
4,608.9
1,689.0
5,043.0
4,411.9
1,498.7
Solar 0
201.2
0
0
200.2
0
Property, Plant and Equipment, Gross 12,027.7
12,224.1
4,021.9
11,528.5
11,775.8
3,769.8
Less: Accumulated Depreciation (2,453.1 ) (3,022.7 ) (832.8 ) (2,385.7 ) (2,895.3 ) (799.9 )
Property, Plant and Equipment, Net 9,574.6
9,201.4
3,189.1
9,142.8
8,880.5
2,969.9
Construction Work in Progress 490.7
742.0
130.4
483.0
592.3
159.6
Total Property, Plant and Equipment, Net $ 10,065.3
$ 9,943.4
$ 3,319.5
$ 9,625.8
$ 9,472.8
$ 3,129.5


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

~~Sale of Water System:~~ On July 31, 2020, Eversource sold its water system and treatment plant that supplies water to the towns of Hingham, Hull and North Cohasset to the town of Hingham, Massachusetts. Net property, plant and equipment of $63.9 million and goodwill of $23.6 million were included in determining the gain on sale. Proceeds from the sale were $110.5 million, with a pre-tax gain of $16.0 million (after-tax gain of $3.5 million) recognized within Operations and Maintenance Expense on the statement of income in the third quarter of 2020. The assets and liabilities associated with the sale of the business were previously reflected in the Water Distribution segment and reporting unit.

4. DERIVATIVE INSTRUMENTS

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

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

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

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


		As of September 30, 2021						As of December 31, 2020
(Millions of Dollars)	Fair Value Hierarchy	Commodity Supply and Price Risk Management		Netting (1)		Net Amount Recorded as a Derivative		Commodity Supply and Price Risk Management		Netting (1)		Net Amount Recorded as a Derivative
Current Derivative Assets:
CL&P	Level 3	$	14.4	$	(0.4)	$	14.0	$	13.7	$	(0.4)	$	13.3
Long-Term Derivative Assets:
CL&P	Level 3	51.1		(1.6)		49.5		58.7		(1.8)		56.9
Current Derivative Liabilities:
CL&P	Level 3	(72.2)		—		(72.2)		(68.8)		—		(68.8)
Other	Level 2	—		—		—		(3.3)		0.1		(3.2)
Long-Term Derivative Liabilities:
CL&P	Level 3	(256.6)		—		(256.6)		(294.5)		—		(294.5)

As of September 30, 2020 As of December 31, 2019
(Millions of Dollars) Fair Value Hierarchy
Commodity Supply and Price Risk
Management

Netting ⁽¹⁾

Net Amount
Recorded as a Derivative
Commodity Supply and Price Risk
Management
Netting ⁽¹⁾

Net Amount
Recorded as
a Derivative
Current Derivative Assets:
CL&P Level 3 $ 13.5
$ (0.4 ) $ 13.1
$ 12.2
$ (0.4 ) $ 11.8
Other Level 2 3.4
(0.7 ) 2.7
0
0
0
Long-Term Derivative Assets:
CL&P Level 3 59.1
(1.9 ) 57.2
67.5
(2.1 ) 65.4
Current Derivative Liabilities:
CL&P Level 3 (69.2 ) 0
(69.2 ) (67.8 ) 0
(67.8 )
Other Level 2 0
0
0
(5.2 ) 0
(5.2 )
Long-Term Derivative Liabilities:
CL&P Level 3 (312.9 ) 0
(312.9 ) (338.6 ) 0
(338.6 )
Other Level 2 0
0
0
(0.1 ) 0
(0.1 )


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

~~For further information~~ on the ~~fair value~~balance sheets. These amounts are subject to master netting agreements or similar agreements for which the right of ~~derivative contracts, see Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," to the financial statements.~~offset exists.

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management: As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined capacities of these contracts as of both September 30, ~~2020~~2021 and December 31, ~~2019~~2020 were ~~676~~675 MW. The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets. ~~In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.~~

As of ~~September 30, 2020 and~~ December 31, ~~2019,~~2020, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of ~~11.4 million and 9.6~~8.9 million MMBtu of natural ~~gas, respectively.~~gas. These contracts were classified as Level 2 in the fair value hierarchy. NSTAR Gas terminated its financial contracts swap program in April 2021.

For the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, there were gains of $0.7 million and losses of $2.6 ~~million and $9.2~~ million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts. For the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, there were losses of ~~$20.6~~$9.5 million and ~~$19.5~~$20.6 million, respectively.

Fair Value Measurements of Derivative Instruments

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

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

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

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


	As of September 30, 2021								As of December 31, 2020
CL&P	Range				Weighted Average (1)			Period Covered	Range				Weighted Average (1)			Period Covered
Capacity Prices	$2.61				$	2.61	per kW-Month	2025 - 2026	$	4.30	—	$5.30	$	4.63	per kW-Month	2024 - 2026
Forward Reserve Prices	$	0.50	—	$1.15	$	0.82	per kW-Month	2022 - 2024	$	0.54	—	$0.90	$	0.72	per kW-Month	2021 - 2024

As of September 30, 2020 As of December 31, 2019
CL&P Range
Weighted Average ⁽¹⁾
Period Covered Range Period Covered
Capacity Prices $ 4.30
— $5.12 $ 4.57
per kW-Month 2024 - 2026 $ 3.01
— $7.34 per kW-Month 2023 - 2026
Forward Reserve Prices 0.54
— 0.90 0.72
per kW-Month 2021 - 2024 0.80
— 1.90 per kW-Month 2020 - 2024

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

Exit price premiums of 15.5 percent through 129.8 percent, or a weighted average of ~~10.9~~8.7 percent, are also applied to these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts. The risk premium was weighted by the relative fair value of the net derivative instruments.

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

~~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.

Net Realized/Unrealized Losses Included

in Regulatory Assets

5. MARKETABLE SECURITIES

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

Equity Securities: Unrealized gains and losses on equity securities held in Eversource's non-qualified executive benefit trust are recorded in Other Income, Net on the statements of income. The fair value of these equity securities as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 was ~~$36.8~~$39.2 million and ~~$45.7~~$40.9 million, respectively. For the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, there were unrealized losses of $0.5 million and unrealized gains of $1.6 ~~million and $2.4~~ million, respectively, recorded in Other Income, Net related to these equity securities. For the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, there were unrealized gains of $2.5 million and unrealized losses of $1.0 million, ~~and unrealized gains of $5.7 million,~~ respectively.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of ~~$189.5~~$214.9 million and ~~$182.8~~$205.1 million as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. Unrealized gains and losses for these spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.

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


	As of September 30, 2021								As of December 31, 2020
Eversource (Millions of Dollars)	Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value
Debt Securities	$	217.5	$	8.0	$	(0.2)	$	225.3	$	213.1	$	11.2	$	(0.1)	$	224.2

As of September 30, 2020 As of December 31, 2019
Eversource
(Millions of Dollars)
Amortized Cost
Pre-Tax
Unrealized Gains

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

Pre-Tax
Unrealized
Losses
Fair Value
Debt Securities $ 216.1
$ 11.1
$ (0.2 ) $ 227.0
$ 228.4
$ 5.8
$ (0.1 ) $ 234.1

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of ~~$194.0~~$195.2 million and ~~$198.1~~$192.5 million as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

Unrealized gains and losses on available-for-sale debt securities held in Eversource's non-qualified benefit trust are recorded in Accumulated Other Comprehensive Income, excluding amounts related to credit losses or losses on securities intended to be sold, which are recorded in Other Income, Net. There have been no significant unrealized losses and no credit losses for the three and nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, and no allowance for credit losses as of September 30, ~~2020.~~2021. Factors considered in determining whether a credit loss exists include adverse conditions specifically affecting the issuer, the payment history, ratings and rating changes of the security, and the severity of the impairment. For ~~asset-~~

~~backed~~asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated. Debt securities included in Eversource's non-qualified benefit trust portfolio are investment-grade bonds with a lower default risk based on their credit quality.

As of September 30, ~~2020,~~2021, the contractual maturities of available-for-sale debt securities were as follows:


Eversource (Millions of Dollars)	Amortized Cost		Fair Value
Less than one year (1)	$	30.9	$	30.9
One to five years	65.5		67.1
Six to ten years	41.8		43.9
Greater than ten years	79.3		83.4
Total Debt Securities	$	217.5	$	225.3

Eversource
(Millions of Dollars)
Amortized Cost Fair Value
Less than one year⁽¹⁾
$ 51.1
$ 51.1
One to five years 45.2
47.4
Six to ten years 43.9
47.0
Greater than ten years 75.9
81.5
Total Debt Securities $ 216.1
$ 227.0

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

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

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


Eversource (Millions of Dollars)	As of September 30, 2021		As of December 31, 2020
Level 1:
Mutual Funds and Equities	$	254.1	$	246.0
Money Market Funds	29.7		41.2
Total Level 1	$	283.8	$	287.2
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	98.9	$	72.9
Corporate Debt Securities	63.4		63.8
Asset-Backed Debt Securities	13.4		11.9
Municipal Bonds	6.1		24.0
Other Fixed Income Securities	13.8		10.4
Total Level 2	$	195.6	$	183.0
Total Marketable Securities	$	479.4	$	470.2

Eversource
(Millions of Dollars)
As of September 30, 2020 As of December 31, 2019
Level 1:
Mutual Funds and Equities $ 226.3
$ 228.5
Money Market Funds 45.6
46.0
Total Level 1 $ 271.9
$ 274.5
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury) $ 64.7
$ 96.8
Corporate Debt Securities 64.9
44.0
Asset-Backed Debt Securities 12.0
12.9
Municipal Bonds 30.4
26.7
Other Fixed Income Securities 9.4
7.7
Total Level 2 $ 181.4
$ 188.1
Total Marketable Securities $ 453.3
$ 462.6

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

6. SHORT-TERM AND LONG-TERM DEBT

Short-Term Debt - Commercial Paper Programs and Credit Agreements: ~~As of September 30, 2020,~~ Eversource parent ~~had~~has a ~~$1.45~~$2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. ~~On November 2, 2020, Eversource parent’s commercial paper program was increased to $2.00 billion.~~ Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year ~~$1.45~~$2.00 billion revolving credit facility, which terminates on ~~December 6, 2024. On~~ October ~~21, 2020, Eversource parent and Eversource Gas Company of Massachusetts entered into a short-term $550 million~~15, 2026. This revolving credit facility ~~which terminates on October 20, 2021. These revolving credit facilities serve~~serves to backstop Eversource parent's $2.00 billion commercial paper program.

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility, which terminates on ~~December 6, 2024.~~October 15, 2026. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.

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


	Borrowings Outstanding as of				Available Borrowing Capacity as of				Weighted-Average Interest Rate as of
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
(Millions of Dollars)
Eversource Parent Commercial Paper Program	$	653.0	$	1,054.3	$	1,347.0	$	945.7	0.18	%	0.25	%
NSTAR Electric Commercial Paper Program	138.0		195.0		512.0		455.0		0.10	%	0.16	%

Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 0
$ 1,224.9
$ 1,450.0
$ 225.1
0 % 1.98 %
NSTAR Electric Commercial Paper Program 60.5
10.5
589.5
639.5
0.10 % 1.63 %

There were 0no borrowings outstanding on the revolving credit facilities as of September 30, ~~2020~~2021 or December 31, ~~2019.~~2020.

~~On May 15, 2020,~~

CL&P and PSNH ~~entered into~~have uncommitted line of credit agreements totaling $450 million and $300 million, respectively, which will expire byon May ~~14, 2021. The CL&P agreements total $450 million and the PSNH agreements total $300 million.~~12, 2022. There are 0no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, ~~2020.~~2021.

Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time. As a result of the NSTAR Gas long-term debt issuances in October 2021, $80.0 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of September 30, 2021.

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

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of September 30, 2021, there were intercompany loans from Eversource parent to PSNH of $66.5 million, and to a subsidiary of NSTAR Electric of $24.6 million. As of December 31, 2020, there were intercompany loans from Eversource parent to ~~CL&P of $235.9 million, to~~ PSNH of ~~$29.1~~$46.3 million, and to a subsidiary of NSTAR Electric of ~~$36.6 million. As of December 31, 2019, there were intercompany loans from Eversource parent to CL&P of $63.8 million, to PSNH of $27.0 million, and to a subsidiary of NSTAR Electric of $30.3~~$21.3 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.

Availability under Long-Term Debt Issuance ~~Authorization:~~ Authorizations:On ~~January 27, 2020,~~March 31, 2021, the DPU approved NSTAR ~~Gas'~~Electric's request for authorization to issue up to ~~$270~~$1.60 billion in long-term debt through December 31, 2023. On September 10, 2021, the DPU approved EGMA’s request for authorization to issue up to $725 million in long-term debt through December 31, ~~2021. On July 31, 2020,~~2023. The remaining Eversource operating companies, including CL&P and PSNH, have utilized the ~~NHPUC approved PSNH's request for authorization to issue up to $200 million in~~ long-term debt ~~through December 31, 2020.~~authorizations in place with the respective regulatory commissions.

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

(Millions of Dollars)

Issuance/(Repayment)

Issue Date or Repayment Date

Maturity Date

Use of Proceeds for Issuance/
Repayment Information

CL&P:

2.05% Series A First Mortgage Bonds

425.0

June 2021

July 2031

Repaid short-term debt, paid capital expenditures and working capital

4.38% Series A PCRB

(120.5)

September 2021

September 2028

Paid on par call date in advance of maturity

NSTAR Electric:

3.10% 2021 Debentures

300.0

May 2021

June 2051

Refinanced investments in eligible green

expenditures, which were previously financed in 2019 and 2020

3.50% Series F Senior Notes

(250.0)

June 2021

September 2021

Paid on par call date in advance of maturity date

1.95% 2021 Debentures

300.0

August 2021

August 2031

Repaid short-term debt, paid capital expenditures and working capital

PSNH:

4.05% Series Q First Mortgage Bonds

(122.0)

March 2021

June 2021

Paid on par call date in advance of maturity date

3.20% Series R First Mortgage Bonds

(160.0)

June 2021

September 2021

Paid on par call date in advance of maturity date

2.20% Series V First Mortgage Bonds

350.0

June 2021

June 2031

Repaid short-term debt, including short-term debt used to redeem Series R First Mortgage Bonds, paid capital expenditures and working capital

Other:

Eversource Parent 2.50% Series I Senior Notes

(450.0)

February 2021

March 2021

Paid on par call date in advance of maturity date

Eversource Parent 2.55% Series S Senior Notes

350.0

March 2021

March 2031

Repaid short-term debt, including short-term debt used to redeem Series I Senior Notes

Eversource Parent 1.40% Series U Senior Notes

300.0

August 2021

August 2026

Repaid short-term debt

Eversource Parent Variable Rate Series T Senior Notes (1)

350.0

August 2021

August 2023

Repaid short-term debt

Aquarion Water Company of Connecticut 3.31%

Senior Notes

100.0

April 2021

April 2051

Repaid 5.50% Notes, repaid short-term debt, paid capital expenditures and working capital

Aquarion Water Company of Connecticut 5.50% Notes

(40.0)

April 2021

Paid at maturity

Yankee Gas 1.38% Series S First Mortgage Bonds

90.0

August 2021

August 2026

(2)

Yankee Gas 2.88% Series T First Mortgage Bonds

35.0

August 2021

August 2051

(2)

EGMA 2.11% Series A First Mortgage Bonds

310.0

September 2021

October 2031

(2)

EGMA 2.92% Series B First Mortgage Bonds

240.0

September 2021

October 2051

(2)

NSTAR Gas 2.25% Series T First Mortgage Bonds

40.0

October 2021

November 2031

(2)

NSTAR Gas 3.03% Series U First Mortgage Bonds

40.0

October 2021

November 2051

(2)

(Millions of Dollars) Issuance/(Repayment) Issue Date or Repayment Date Maturity Date Use of Proceeds for Issuance/
Repayment Information
NSTAR Electric:
3.95% 2020 Debentures $ 400.0
March 2020 April 2030 Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes (95.0 ) March 2020 March 2020 Paid at maturity
PSNH:
2.40% Series U First Mortgage Bonds 150.0
August 2020 September 2050 Refinanced short-term borrowings, funded capital expenditures and working capital
Other:
Eversource Parent 3.45% Series P Senior Notes 350.0
January 2020 January 2050 Paid short-term borrowings
Eversource Parent 3.45% Series P Senior Notes ⁽¹⁾
300.0
August 2020 January 2050
⁽²⁾
Eversource Parent 0.80% Series Q Senior Notes 300.0
August 2020 August 2025
⁽²⁾
Eversource Parent 1.65% Series R Senior Notes 600.0
August 2020 August 2030
⁽²⁾
NSTAR Gas 4.46% Series N First Mortgage Bonds (125.0 ) January 2020 January 2020 Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds 75.0
May 2020 May 2025 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds 115.0
May 2020 May 2050 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
Yankee Gas 4.87% Series K First Mortgage Bonds (50.0 ) April 2020 April 2020 Paid at maturity
Yankee Gas 2.90% Series R First Mortgage Bonds 70.0
September 2020 September 2050 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
Aquarion Water Company of Massachusetts, Inc. and Aquarion Water Capital of Massachusetts, Inc. various term loans and general mortgage bonds (32.2 ) July 2020 Various Redeemed long-term debt in conjunction with the sale of assets to the Town of Hingham, Massachusetts

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

~~These senior notes are part of the same series issued by Eversource parent in~~ ~~January 2020. The aggregate outstanding principal amount of these senior notes is now $650 million.~~

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

7. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

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

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

The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:

(Millions of Dollars)
Income Statement:
For the Three Months Ended For the Nine Months Ended
September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net) $ 10.8
$ 10.8
$ 32.4
$ 32.2
Interest Expense on RRB Principal (included in Interest Expense) 4.9
5.2
14.9
15.9


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

8. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION

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

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

Pension and SERP PBOP
For the Three Months Ended September 30, 2020 For the Three Months Ended September 30, 2020
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Service Cost $ 18.7
$ 5.4
$ 3.8
$ 2.0
$ 2.4
$ 0.4
$ 0.5
$ 0.2
Interest Cost 44.4
9.3
9.7
4.8
6.1
1.1
1.7
0.7
Expected Return on Plan Assets (99.2 ) (19.8 ) (25.7 ) (11.1 ) (18.3 ) (2.5 ) (8.5 ) (1.4 )
Actuarial Loss 50.7
9.7
14.0
3.8
2.2
0.3
0.6
0.2
Prior Service Cost/(Credit) 0.2
0
0
0
(5.3 ) 0.3
(4.2 ) 0.1
Total Net Periodic Benefit Expense/(Income) $ 14.8
$ 4.6
$ 1.8
$ (0.5 ) $ (12.9 ) $ (0.4 ) $ (9.9 ) $ (0.2 )
Intercompany Allocations N/A
$ 2.4
$ 2.3
$ 0.8
N/A
$ (0.3 ) $ (0.4 ) $ (0.1 )

Pension and SERP PBOP
For the Nine Months Ended September 30, 2020 For the Nine Months Ended September 30, 2020
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Service Cost $ 57.0
$ 16.5
$ 11.4
$ 6.2
$ 7.3
$ 1.3
$ 1.6
$ 0.6
Interest Cost 133.0
28.1
29.0
14.5
18.3
3.3
5.0
2.1
Expected Return on Plan Assets (298.8 ) (59.6 ) (77.2 ) (33.5 ) (55.1 ) (7.4 ) (25.5 ) (4.2 )
Actuarial Loss 150.7
29.4
41.3
11.8
6.3
0.9
1.8
0.6
Prior Service Cost/(Credit) 0.8
0
0.2
0
(15.9 ) 0.8
(12.7 ) 0.3
Total Net Periodic Benefit Expense/(Income) $ 42.7
$ 14.4
$ 4.7
$ (1.0 ) $ (39.1 ) $ (1.1 ) $ (29.8 ) $ (0.6 )
Intercompany Allocations N/A
$ 6.7
$ 6.5
$ 2.2
N/A
$ (0.9 ) $ (1.0 ) $ (0.4 )

Pension and SERP PBOP
For the Three Months Ended September 30, 2019 For the Three Months Ended September 30, 2019
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
Service Cost $ 16.2
$ 4.4
$ 3.6
$ 1.5
$ 2.0
$ 0.3
$ 0.4
$ 0.2
Interest Cost 54.8
11.4
12.3
6.0
8.1
1.6
2.4
0.8
Expected Return on Plan Assets (91.6 ) (18.1 ) (24.2 ) (10.1 ) (16.7 ) (2.2 ) (7.5 ) (1.3 )
Actuarial Loss 35.6
6.3
11.8
2.3
2.1
0.3
0.8
0.1
Prior Service Cost/(Credit) 0.3
0
0
0
(5.8 ) 0.2
(4.2 ) 0.1
Total Net Periodic Benefit Expense/(Income) $ 15.3
$ 4.0
$ 3.5
$ (0.3 ) $ (10.3 ) $ 0.2
$ (8.1 ) $ (0.1 )
Intercompany Allocations N/A
$ 2.0
$ 1.9
$ 0.5
N/A
$ (0.2 ) $ (0.3 ) $ (0.1 )

Pension and SERP PBOP
For the Nine Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019
(Millions of Dollars) Eversource CL&P
NSTAR
Electric
PSNH Eversource CL&P
NSTAR
Electric
PSNH
Service Cost $ 51.6
$ 13.6
$ 11.0
$ 5.6
$ 5.9
$ 1.1
$ 1.3
$ 0.5
Interest Cost 163.8
34.4
36.6
18.2
24.5
4.7
7.1
2.5
Expected Return on Plan Assets (275.4 ) (55.1 ) (72.9 ) (30.6 ) (50.1 ) (6.9 ) (22.6 ) (4.0 )
Actuarial Loss 107.9
20.6
33.1
8.2
6.2
1.0
2.5
0.3
Prior Service Cost/(Credit) 0.9
0
0.2
0
(17.6 ) 0.8
(12.7 ) 0.3
Total Net Periodic Benefit Expense/(Income) $ 48.8
$ 13.5
$ 8.0
$ 1.4
$ (31.1 ) $ 0.7
$ (24.4 ) $ (0.4 )
Intercompany Allocations N/A
$ 6.5
$ 6.1
$ 1.8
N/A
$ (0.6 ) $ (0.9 ) $ (0.3 )


	Pension and SERP								PBOP
	For the Three Months Ended September 30, 2021								For the Three Months Ended September 30, 2021
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	21.5	$	5.6	$	4.0	$	2.2	$	3.3	$	0.5	$	0.6	$	0.3
Interest Cost	32.5		6.7		6.7		3.7		4.3		0.8		1.1		0.4
Expected Return on Plan Assets	(109.5)		(21.7)		(27.1)		(11.9)		(19.8)		(2.5)		(9.2)		(1.6)
Actuarial Loss	60.7		10.8		15.3		5.3		2.0		0.4		0.5		0.1
Prior Service Cost/(Credit)	0.3		—		0.1		—		(5.3)		0.3		(4.3)		0.1
Total Net Periodic Benefit Plan Expense/(Income)	$	5.5	$	1.4	$	(1.0)	$	(0.7)	$	(15.5)	$	(0.5)	$	(11.3)	$	(0.7)
Intercompany Expense/(Income) Allocations	N/A		$	2.2	$	2.4	$	0.7	N/A		$	(0.4)	$	(0.5)	$	(0.2)

	Pension and SERP								PBOP
	For the Nine Months Ended September 30, 2021								For the Nine Months Ended September 30, 2021
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	64.3	$	17.4	$	11.9	$	6.6	$	10.1	$	1.7	$	1.8	$	0.9
Interest Cost	97.5		20.7		20.1		10.9		12.9		2.4		3.3		1.3
Expected Return on Plan Assets	(328.0)		(65.0)		(81.1)		(35.6)		(59.3)		(7.7)		(27.7)		(4.6)
Actuarial Loss	183.1		34.6		46.1		15.4		5.9		1.2		1.6		0.4
Prior Service Cost/(Credit)	1.1		—		0.3		—		(15.9)		0.8		(12.7)		0.3
Total Net Periodic Benefit Plan Expense/(Income)	$	18.0	$	7.7	$	(2.7)	$	(2.7)	$	(46.3)	$	(1.6)	$	(33.7)	$	(1.7)
Intercompany Expense/(Income) Allocations	N/A		$	5.8	$	6.4	$	1.9	N/A		$	(1.3)	$	(1.5)	$	(0.5)


	Pension and SERP								PBOP
	For the Three Months Ended September 30, 2020								For the Three Months Ended September 30, 2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	18.7	$	5.4	$	3.8	$	2.0	$	2.4	$	0.4	$	0.5	$	0.2
Interest Cost	44.4		9.3		9.7		4.8		6.1		1.1		1.7		0.7
Expected Return on Plan Assets	(99.2)		(19.8)		(25.7)		(11.1)		(18.3)		(2.5)		(8.5)		(1.4)
Actuarial Loss	50.7		9.7		14.0		3.8		2.2		0.3		0.6		0.2
Prior Service Cost/(Credit)	0.2		—		—		—		(5.3)		0.3		(4.2)		0.1
Total Net Periodic Benefit Plan Expense/(Income)	$	14.8	$	4.6	$	1.8	$	(0.5)	$	(12.9)	$	(0.4)	$	(9.9)	$	(0.2)
Intercompany Expense/(Income) Allocations	N/A		$	2.4	$	2.3	$	0.8	N/A		$	(0.3)	$	(0.4)	$	(0.1)

	Pension and SERP								PBOP
	For the Nine Months Ended September 30, 2020								For the Nine Months Ended September 30, 2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	57.0	$	16.5	$	11.4	$	6.2	$	7.3	$	1.3	$	1.6	$	0.6
Interest Cost	133.0		28.1		29.0		14.5		18.3		3.3		5.0		2.1
Expected Return on Plan Assets	(298.8)		(59.6)		(77.2)		(33.5)		(55.1)		(7.4)		(25.5)		(4.2)
Actuarial Loss	150.7		29.4		41.3		11.8		6.3		0.9		1.8		0.6
Prior Service Cost/(Credit)	0.8		—		0.2		—		(15.9)		0.8		(12.7)		0.3
Total Net Periodic Benefit Plan Expense/(Income)	$	42.7	$	14.4	$	4.7	$	(1.0)	$	(39.1)	$	(1.1)	$	(29.8)	$	(0.6)
Intercompany Expense/(Income) Allocations	N/A		$	6.7	$	6.5	$	2.2	N/A		$	(0.9)	$	(1.0)	$	(0.4)

Eversource Contributions: Eversource currently expects to make contributions of $180 million to the Pension Plans in 2021, of which $99 million and $30 million will be contributed by CL&P and NSTAR Electric, respectively.

9. COMMITMENTS AND CONTINGENCIES

A. Environmental Matters

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

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


	As of September 30, 2021			As of December 31, 2020
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	62	$	111.9	63	$	102.4
CL&P	14	12.5		15	12.3
NSTAR Electric	12	3.7		12	4.7
PSNH	9	6.4		9	7.1

As of September 30, 2020 As of December 31, 2019
Number of Sites
Reserve
(in millions)
Number of Sites
Reserve
(in millions)
Eversource 55
$ 78.8
57
$ 81.0
CL&P 15
11.6
15
11.4
NSTAR Electric 13
4.6
15
8.0
PSNH 9
7.2
9
7.5

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

Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured natural gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability. The reserve balances related to these former MGP sites were ~~$69.5~~$102.4 million and ~~$67.9~~$92.2 million as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, and related primarily to the natural gas business segment.

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

B. Long-Term Contractual Arrangements

The following is an update to the current status of long-term contractual arrangements set forth in Note 13B of the Eversource ~~2019~~2020 Form 10-K.

Renewable Energy: Renewable energy contracts include non-cancelable commitments under contracts of NSTAR Electric for the purchase of energy and RECs from renewable energy facilities.


NSTAR Electric
(Millions of Dollars)	2021		2022		2023		2024		2025		Thereafter		Total
Renewable Energy	$	27.1	$	103.9	$	230.5	$	341.2	$	348.1	$	6,564.2	$	7,615.0

NSTAR Electric
October - December
2020

(Millions of Dollars) 2021 2022 2023 2024 Thereafter Total
Renewable Energy $ 24.3
$ 98.5
$ 100.0
$ 75.4
$ 72.9
$ 594.5
$ 965.6

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

C. Guarantees and Indemnifications

In the normal course of business, Eversource parent provides credit assurances on behalf of its subsidiaries, including CL&P, NSTAR Electric and PSNH, in the form of guarantees. Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications.

Guarantees issued on behalf of unconsolidated entities, including equity method offshore wind investments, for which Eversource parent is the guarantor, are recorded at fair value as a liability on the balance sheet at the inception of the guarantee. Eversource regularly reviews performance risk under these guarantee arrangements, and in the event it becomes probable that Eversource parent will be required to perform under the guarantee, the amount of probable payment will be recorded. The fair value of guarantees issued on behalf of unconsolidated entities are recorded within Other Long-Term Liabilities on the balance sheet, and was $5.7 million as of September 30, 2021.

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external ~~parties as~~parties:


As of September 30, 2021
Company (Obligor)	Description	Maximum Exposure (in millions)		Expiration Dates
North East Offshore LLC	Construction-related purchase agreements with third-party contractors (1)	$	1,093.5	(1)
Eversource Investment LLC	Funding and indemnification obligations of North East Offshore LLC (2)	—		(2)
Sunrise Wind LLC	OREC capacity production (3)	2.2		(3)
Sunrise Wind LLC	Construction-related purchase agreements with third-party contractors (4)	386.4		—
South Fork Wind, LLC	Transmission interconnection	1.2		—
South Fork Wind, LLC	Construction-related purchase agreements with third-party contractors (5)	40.6		2023
Bay State Wind LLC	Real estate purchase	2.5		2022
Various	Surety bonds (6)	67.5		2021 - 2023
Rocky River Realty Company and Eversource Service	Lease payments for real estate	4.0		2024

(1) Eversource parent issued guarantees on behalf of ~~September 30, 2020:~~ its 50 percent-owned affiliate, North East Offshore LLC (NEO), under which Eversource parent agreed to guarantee 50 percent of NEO’s performance of obligations under certain purchase agreements with third-party contactors, in an aggregate amount not to exceed $1.3 billion with an expiration date in 2025. Eversource parent also issued a separate guarantee to Ørsted on behalf of NEO, under which Eversource parent agreed to guarantee 50 percent of NEO’s payment obligations under certain offshore wind project construction-related agreements with Ørsted in an aggregate amount not to exceed $62.5 million. Any amounts paid under this guarantee to Ørsted will count toward, but not increase, the maximum amount of the Funding Guarantee described in Note 2, below. The guarantee expires upon the full performance of the guaranteed obligations.

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

(3) Eversource parent issued a guarantee on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guarantee Sunrise Wind LLC's performance of certain obligations, in an aggregate amount not to exceed $15.4 million, under the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement (the Agreement). The Agreement was executed on October 23, 2019, by and between the New York State Energy Research and Development Authority (NYSERDA) and Sunrise Wind LLC. The guarantee expires upon the full performance of the guaranteed obligations.

Company Description
Maximum Exposure
(in millions)
Expiration Dates
Various
Surety Bonds⁽¹⁾
$ 30.9
2020 - 2023
Rocky River Realty Company and Eversource Service Lease Payments for Real Estate 5.6
2024
Bay State Wind LLC Real Estate Purchase 2.5
2021
Sunrise Wind LLC
OREC Capacity Production ⁽²⁾
2.2
-
(4) Eversource parent issued a guaranty on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guarantee Sunrise Wind LLC's performance of certain obligations, in an aggregate amount not to exceed $420.6 million, in connection with a construction-related purchase agreement. Eversource parent’s obligations under the guarantee expire upon the earlier of (i) April 14, 2026 and (ii) full performance of the guaranteed obligations.

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

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

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

D. Spent Nuclear Fuel Obligations - Yankee Companies

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

Spent Nuclear Fuel Litigation:

The Yankee Companies have filed complaints against the DOE in the Court of Federal Claims seeking monetary damages resulting from the DOE's failure to accept delivery of, and provide for a permanent facility to store, spent nuclear fuel pursuant to the terms of the 1983 spent fuel and high-level waste disposal contracts between the Yankee Companies and the DOE. The court previously awarded the Yankee Companies damages for Phases I, II, III and ~~III~~IV of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through ~~2012,~~2016, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase IVV Damages - On ~~May 22, 2017,~~March 25, 2021, each of the Yankee Companies filed a ~~fourth~~fifth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies ~~sought~~are calculating and will be seeking monetary damages ~~totaling $104.4 million~~ for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from ~~2013~~2017 to ~~2016~~2020 (DOE Phase ~~IV)~~V). On February 21, 2019, the Yankee Companies received a partial summary judgment and partial final judgment in their favor for the undisputed amount of monetary damages of $103.2 million. The court awarded CYAPC, YAEC and MYAPC damages of $40.7 million, $28.1 million and $34.4 million, respectively. The DOE did not appeal the court's judgment and the decision became final on April 23, 2019. On June 12, 2019, each of the Yankee Companies received the damages proceeds. On June 12, 2019, the court accepted an offer of judgment in the amount of $0.5 million to settle the disputed amount of approximately $1 million in Phase IV contested damages. The Yankee Companies received the $0.5 million payment in July 2019.

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

E. FERC ROE Complaints

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

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

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

Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of September 30, ~~2020~~2021 and December 31, ~~2019.~~2020. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of September 30, ~~2020~~2021 and December 31, ~~2019.~~2020.

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

The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

If the results of the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods. These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.

On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the NETOs’ cases.

On May 21, 2020, the FERC issued its order in Opinion No. 569-A on the rehearing of the MISO transmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. Various parties ~~have~~ appealed the MISO transmission owners' opinion. ~~This~~On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order to determine the NETOs' base ROEs in its four pending cases.

Given the significant uncertainty regarding the applicability of the FERC opinions in the MISO transmission owners' two complaint cases to the NETOs' pending four complaint cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time. As well, Eversource cannot reasonably estimate a range of any gain or loss for any of the four complaint proceedings at this time.

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

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

F. Eversource and NSTAR Electric Boston Harbor Civil Action

In 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts against NSTAR Electric, HEEC, and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants"). The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor.

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

G. CL&P Regulatory Matters

CL&P Tropical Storm Isaias Response Investigation: In August 2020, PURA opened a docket to investigate the preparation for and response to Tropical Storm Isaias by Connecticut utilities, including CL&P. On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain storm performance standards and was imprudent in certain instances. Specifically, PURA concluded that CL&P did not satisfy the performance standards for managing its municipal liaison program, timely removing electrical hazards from blocked roads, communicating critical information to its customers, or meeting its obligation to secure adequate external contractor and mutual aid resources in a timely manner. Based on its findings, PURA ordered CL&P to adjust its future rates in a pending or future rate proceeding to reflect a monetary penalty in the form of a downward adjustment of 90 basis points in its allowed rate of return on equity (ROE), which is currently 9.25 percent. In its decision, PURA explained that additional monetary penalties and further enforcement orders pursuant to Connecticut statute would be considered in a separate proceeding that was initiated on May 6, 2021.

On May 6, 2021, as part of the penalty proceeding, PURA issued a notice of violation that included an assessment of $30 million, consisting of a $28.4 million civil penalty for non-compliance with storm performance standards to be provided as credits on customer bills and a $1.6 million fine for violations of accident reporting requirements to be paid to the State of Connecticut’s general fund. On July 14, 2021, PURA issued a final decision in this penalty proceeding that included an assessment of $28.6 million, maintaining the $28.4 million performance penalty and reducing the $1.6 million fine for accident reporting to $0.2 million. The $28.4 million performance penalty is currently being credited to customers on electric bills beginning on September 1, 2021 over a one-year period. The $28.4 million is the maximum statutory penalty amount under applicable Connecticut law in effect at the time of Tropical Storm Isaias, which is 2.5 percent of CL&P’s annual distribution revenues. The

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

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

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

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

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

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

10. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

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


	Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of September 30, 2021:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	165.5	$	116.2	$	121.4	$	43.0	$	44.1	$	—	$	—
Long-Term Debt	18,219.2		19,810.9		4,215.1		4,865.2		3,984.7		4,494.3		1,163.6		1,228.9
Rate Reduction Bonds	496.9		555.8		—		—		—		—		496.9		555.8

As of December 31, 2020:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	169.1	$	116.2	$	123.4	$	43.0	$	45.7	$	—	$	—
Long-Term Debt	16,179.1		18,420.1		3,914.8		4,800.9		3,643.2		4,294.0		1,099.1		1,207.0
Rate Reduction Bonds	540.1		603.4		—		—		—		—		540.1		603.4

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

Fair
Value

Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value
As of September 30, 2020:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6
$ 166.6
$ 116.2
$ 122.0
$ 43.0
$ 44.6
$ 0
$ 0
Long-Term Debt 15,814.5
17,943.7
3,518.1
4,336.7
3,642.8
4,285.4
1,099.0
1,192.1
Rate Reduction Bonds 540.1
603.0
0
0
0
0
540.1
603.0

As of December 31, 2019:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6
$ 162.0
$ 116.2
$ 117.8
$ 43.0
$ 44.2
$ 0
$ 0
Long-Term Debt 14,098.2
15,170.2
3,518.1
4,058.0
3,342.1
3,659.9
951.6
1,005.7
Rate Reduction Bonds 583.3
625.9
0
0
0
0
583.3
625.9

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

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

11. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

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


	For the Nine Months Ended September 30, 2021								For the Nine Months Ended September 30, 2020
Eversource (Millions of Dollars)	Qualified Cash Flow Hedging Instruments		Unrealized Gains/(Losses) on Marketable Securities		Defined Benefit Plans		Total		Qualified Cash Flow Hedging Instruments		Unrealized Gains on Marketable Securities		Defined Benefit Plans		Total
Balance as of Beginning of Period	$	(1.4)	$	1.1	$	(76.1)	$	(76.4)	$	(3.0)	$	0.7	$	(62.8)	$	(65.1)

OCI Before Reclassifications	—		(0.6)		(2.4)		(3.0)		—		0.3		(1.6)		(1.3)
Amounts Reclassified from AOCI	1.0		—		6.5		7.5		1.2		—		4.8		6.0
Net OCI	1.0		(0.6)		4.1		4.5		1.2		0.3		3.2		4.7
Balance as of End of Period	$	(0.4)	$	0.5	$	(72.0)	$	(71.9)	$	(1.8)	$	1.0	$	(59.6)	$	(60.4)

For the Nine Months Ended September 30, 2020 For the Nine Months Ended September 30, 2019
Eversource
(Millions of Dollars)
Qualified
Cash Flow
Hedging
Instruments

Unrealized
Gains on Marketable
Securities

Defined
Benefit Plans
Total
Qualified
Cash Flow
Hedging
Instruments

Unrealized
Gains/(Losses)
on Marketable
Securities

Defined
Benefit Plans
Total
Balance as of January 1st $ (3.0 ) $ 0.7
$ (62.8 ) $ (65.1 ) $ (4.4 ) $ (0.5 ) $ (55.1 ) $ (60.0 )

OCI Before Reclassifications 0
0.3
(1.6 ) (1.3 ) 0
1.3
2.6
3.9
Amounts Reclassified from AOCI 1.2
0
4.8
6.0
0.9
0
3.2
4.1
Net OCI 1.2
0.3
3.2
4.7
0.9
1.3
5.8
8.0
Balance as of September 30th $ (1.8 ) $ 1.0
$ (59.6 ) $ (60.4 ) $ (3.5 ) $ 0.8
$ (49.3 ) $ (52.0 )

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

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


	Shares
			Authorized as of September 30, 2021 and December 31, 2020	Issued as of
	Par Value			September 30, 2021	December 31, 2020
Eversource	$	5	380,000,000	357,818,402	357,818,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	200	200
PSNH	$	1	100,000,000	301	301

Shares
Authorized as of September 30, 2020 and December 31, 2019 Issued as of
Par Value September 30, 2020 December 31, 2019
Eversource $ 5
380,000,000
357,818,402
345,858,402
CL&P $ 10
24,500,000
6,035,205
6,035,205
NSTAR Electric $ 1
100,000,000
200
200
PSNH $ 1
100,000,000
301
301

~~Common Share Issuances and 2019 Forward Sale Agreement:~~ On June 15, 2020, Eversource completed an equity offering of 6,000,000 common shares at a price per share of $86.26. Eversource used the net proceeds of this offering to fund a portion of the purchase of the assets of CMA that closed on October 9, 2020. The issuance of these common shares resulted in proceeds of $509.2 million, net of issuance costs.

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

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

The March and June 2020 common share issuances of 5,960,000 and 6,000,000, respectively, resulted in total proceeds of $929.0 million, net of issuance costs, and were reflected in shareholders' equity and as financing activities on the statement of cash flows.

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

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

Treasury Shares: As of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, there were ~~15,020,929~~ 14,044,078 and ~~15,977,757~~14,864,379 Eversource common shares held as treasury shares, respectively. As of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, Eversource common shares outstanding ~~were 342,797,473~~were 343,774,324 and ~~329,880,645,~~342,954,023, respectively.

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

13. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended September 30, ~~2020~~2021 and ~~2019~~2020 and $5.6 million for each of the nine months ended September 30, ~~2020~~2021 and ~~2019.~~2020. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest – Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of September 30, ~~2020~~2021 and December 31, ~~2019.~~2020. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to Eversource parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

14. EARNINGS PER SHARE

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

~~As described in Note 12, "Common Shares," earnings per~~ There were no antidilutive share ~~dilution, if any, related to~~awards excluded from the ~~forward sale agreement is determined under the treasury stock method until settlement~~computation of ~~the forward sale agreement. Under this method, the number of Eversource common shares used in calculating~~ diluted EPS ~~is deemed to be increased by~~for the ~~excess, if any, of~~three and nine months ended September 30, 2021 and the number of shares that would be issued upon physical settlement of the forward sale agreement less the number of shares that would be purchased by Eversource in the market (based on the average market price during the same reporting period) using the proceeds receivable upon settlement (based on the adjusted forward sale price at the end of that reporting period). Share dilution occurs when the average market price of Eversource's common shares is higher than the adjusted forward sale price.

three months ended September 30, 2020. For the nine months ended September 30, 2020, there were 52,747 antidilutive share awards excluded from the EPS computation, as their impact would have been ~~antidilutive~~.antidilutive. Antidilutive shares pertained to a purchase option extended to underwriters in connection with ~~Eversource's~~Eversource’s common share issuance on June 15, 2020. See Note 12, "Common Shares," for further information. There were 0 antidilutive share awards excluded from the computation for the three months ended September 30, 2020 and 2019 or the nine months ended September 30, 2019.

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 Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net Income Attributable to Common Shareholders	$	283.2	$	346.3	$	913.8	$	933.2
Weighted Average Common Shares Outstanding:
Basic	344,023,846		343,076,614		343,848,905		337,375,172
Dilutive Effect of:
Share-Based Compensation Awards and Other	645,936		696,988		631,151		686,403
Equity Forward Sale Agreement	—		—		—		362,525
Total Dilutive Effect	645,936		696,988		631,151		1,048,928
Diluted	344,669,782		343,773,602		344,480,056		338,424,100
Basic EPS	$	0.82	$	1.01	$	2.66	$	2.77
Diluted EPS	$	0.82	$	1.01	$	2.65	$	2.76

Eversource
(Millions of Dollars, except share information)
For the Three Months Ended For the Nine Months Ended
September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
Net Income Attributable to Common Shareholders $ 346.3
$ 318.9
$ 933.2
$ 659.0
Weighted Average Common Shares Outstanding:
Basic 343,076,614
324,037,169
337,375,172
320,442,253
Dilutive Effect of:
Share-Based Compensation Awards and Other 696,988
737,972
686,403
691,636
Equity Forward Sale Agreement 0
1,233,201
362,525
437,037
Total Dilutive Effect 696,988
1,971,173
1,048,928
1,128,673
Diluted 343,773,602
326,008,342
338,424,100
321,570,926
Basic EPS $ 1.01
$ 0.98
$ 2.77
$ 2.06
Diluted EPS $ 1.01
$ 0.98
$ 2.76
$ 2.05

The following tables present operating revenues disaggregated by revenue source:


	For the Three Months Ended September 30, 2021
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	1,146.8	$	81.7	$	—	$	39.1	$	—	$	—	$	1,267.6
Commercial	748.8		59.0		—		17.2		—		(1.4)		823.6
Industrial	96.2		28.6		—		1.1		—		(4.8)		121.1
Total Retail Tariff Sales Revenues	1,991.8		169.3		—		57.4		—		(6.2)		2,212.3
Wholesale Transmission Revenues	—		—		527.2		—		23.0		(408.5)		141.7
Wholesale Market Sales Revenues	133.8		12.2		—		1.1		—		—		147.1
Other Revenues from Contracts with Customers	29.6		1.2		3.5		1.8		303.1		(301.4)		37.8
Reserve for Revenues Subject to Refund (1)	(93.4)		—		—		(0.9)		—		—		(94.3)
Total Revenues from Contracts with Customers	2,061.8		182.7		530.7		59.4		326.1		(716.1)		2,444.6
Alternative Revenue Programs	(7.9)		2.7		(112.6)		2.3		—		102.0		(13.5)
Other Revenues (2)	1.3		0.1		0.2		0.1		—		—		1.7
Total Operating Revenues	$	2,055.2	$	185.5	$	418.3	$	61.8	$	326.1	$	(614.1)	$	2,432.8

	For the Nine Months Ended September 30, 2021
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	3,094.9	$	722.8	$	—	$	102.8	$	—	$	—	$	3,920.5
Commercial	1,902.9		356.4		—		47.0		—		(4.1)		2,302.2
Industrial	261.1		119.5		—		3.3		—		(12.8)		371.1
Total Retail Tariff Sales Revenues	5,258.9		1,198.7		—		153.1		—		(16.9)		6,593.8
Wholesale Transmission Revenues	—		—		1,338.4		—		62.5		(1,075.4)		325.5
Wholesale Market Sales Revenues	380.1		54.1		—		3.0		—		—		437.2
Other Revenues from Contracts with Customers	68.4		3.6		10.2		5.5		936.6		(929.6)		94.7
Reserve for Revenues Subject to Refund (1)	(93.4)		—		—		(2.2)		—		—		(95.6)
Total Revenues from Contracts with Customers	5,614.0		1,256.4		1,348.6		159.4		999.1		(2,021.9)		7,355.6
Alternative Revenue Programs	14.9		21.3		(119.2)		1.3		—		103.0		21.3
Other Revenues (2)	3.2		0.1		0.7		0.3		—		—		4.3
Total Operating Revenues	$	5,632.1	$	1,277.8	$	1,230.1	$	161.0	$	999.1	$	(1,918.9)	$	7,381.2

For the Three Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution Natural Gas
Distribution Electric
Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,183.9
$ 45.5
$ 0
$ 45.8
$ 0
$ 0
$ 1,275.2
Commercial 682.7
41.1
0
17.1
0
(1.4 ) 739.5
Industrial 91.0
17.5
0
1.3
0
(3.6 ) 106.2
Total Retail Tariff Sales Revenues 1,957.6

104.1
0
64.2

0
(5.0 ) 2,120.9
Wholesale Transmission Revenues 0
0
458.2
0
19.0
(365.6 ) 111.6
Wholesale Market Sales Revenues 79.6
8.7
0
1.1
0
0
89.4
Other Revenues from Contracts with Customers 18.4
0.8
3.2
1.8
303.3
(299.0 ) 28.5
Amortization of/(Reserve for) Revenues
Subject to Refund
2.3
0.5
0
(1.1 ) 0
0
1.7
Total Revenues from Contracts with Customers 2,057.9

114.1
461.4
66.0

322.3
(669.6 ) 2,352.1
Alternative Revenue Programs 1.7
(4.0 ) (72.3 ) (2.0 ) 0
67.0
(9.6 )
Other Revenues ⁽¹⁾
0.7
0.1
0.2
0.1
0
0
1.1
Total Operating Revenues $ 2,060.3

$ 110.2
$ 389.3
$ 64.1

$ 322.3
$ (602.6 ) $ 2,343.6

For the Nine Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution

Natural Gas
Distribution

Electric
Transmission
Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 3,063.7
$ 399.6
$ 0
$ 113.2
$ 0
$ 0
$ 3,576.5
Commercial 1,815.7
243.5
0
47.7
0
(3.7 ) 2,103.2
Industrial 248.4
67.0
0
3.6
0
(10.1 ) 308.9
Total Retail Tariff Sales Revenues 5,127.8
710.1
0
164.5
0
(13.8 ) 5,988.6
Wholesale Transmission Revenues 0
0
1,177.9
0
55.6
(981.4 ) 252.1
Wholesale Market Sales Revenues 231.1
31.9
0
2.9
0
0
265.9
Other Revenues from Contracts with Customers 56.4
2.5
9.9
5.6
845.1
(838.0 ) 81.5
Amortization of/(Reserve for) Revenues
Subject to Refund
6.9
1.6
0
(2.8 ) 0
0
5.7
Total Revenues from Contracts with Customers 5,422.2
746.1
1,187.8
170.2
900.7
(1,833.2 ) 6,593.8
Alternative Revenue Programs 54.8
22.9
(52.7 ) (4.1 ) 0
48.9
69.8
Other Revenues ⁽¹⁾
4.9
1.0
0.5
0.5
0
0
6.9
Total Operating Revenues $ 5,481.9
$ 770.0
$ 1,135.6
$ 166.6
$ 900.7
$ (1,784.3 ) $ 6,670.5


	For the Three Months Ended September 30, 2020
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	1,183.9	$	45.5	$	—	$	45.8	$	—	$	—	$	1,275.2
Commercial	682.7		41.1		—		17.1		—		(1.4)		739.5
Industrial	91.0		17.5		—		1.3		—		(3.6)		106.2
Total Retail Tariff Sales Revenues	1,957.6		104.1		—		64.2		—		(5.0)		2,120.9
Wholesale Transmission Revenues	—		—		458.2		—		19.0		(365.6)		111.6
Wholesale Market Sales Revenues	79.6		8.7		—		1.1		—		—		89.4
Other Revenues from Contracts with Customers	20.7		1.3		3.2		0.7		303.3		(299.0)		30.2

Total Revenues from Contracts with Customers	2,057.9		114.1		461.4		66.0		322.3		(669.6)		2,352.1
Alternative Revenue Programs	1.7		(4.0)		(72.3)		(2.0)		—		67.0		(9.6)
Other Revenues (2)	0.7		0.1		0.2		0.1		—		—		1.1
Total Operating Revenues	$	2,060.3	$	110.2	$	389.3	$	64.1	$	322.3	$	(602.6)	$	2,343.6


	For the Nine Months Ended September 30, 2020
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	3,063.7	$	399.6	$	—	$	113.2	$	—	$	—	$	3,576.5
Commercial	1,815.7		243.5		—		47.7		—		(3.7)		2,103.2
Industrial	248.4		67.0		—		3.6		—		(10.1)		308.9
Total Retail Tariff Sales Revenues	5,127.8		710.1		—		164.5		—		(13.8)		5,988.6
Wholesale Transmission Revenues	—		—		1,177.9		—		55.6		(981.4)		252.1
Wholesale Market Sales Revenues	231.1		31.9		—		2.9		—		—		265.9
Other Revenues from Contracts with Customers	63.3		4.1		9.9		2.8		845.1		(838.0)		87.2

Total Revenues from Contracts with Customers	5,422.2		746.1		1,187.8		170.2		900.7		(1,833.2)		6,593.8
Alternative Revenue Programs	54.8		22.9		(52.7)		(4.1)		—		48.9		69.8
Other Revenues (2)	4.9		1.0		0.5		0.5		—		—		6.9
Total Operating Revenues	$	5,481.9	$	770.0	$	1,135.6	$	166.6	$	900.7	$	(1,784.3)	$	6,670.5



	For the Three Months Ended September 30, 2021						For the Three Months Ended September 30, 2020
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	572.0	$	401.9	$	172.9	$	608.7	$	415.4	$	159.8
Commercial	249.4		411.3		88.5		244.7		358.3		80.1
Industrial	35.0		35.9		25.3		38.0		30.6		22.4
Total Retail Tariff Sales Revenues	856.4		849.1		286.7		891.4		804.3		262.3
Wholesale Transmission Revenues	268.2		171.0		88.0		233.3		153.1		71.8
Wholesale Market Sales Revenues	100.3		21.3		12.2		60.0		12.1		7.5
Other Revenues from Contracts with Customers	12.1		14.3		7.3		8.1		10.5		3.7
(Reserve for)/Amortization of Revenues Subject to Refund (1)	(93.4)		—		—		—		—		2.3
Total Revenues from Contracts with Customers	1,143.6		1,055.7		394.2		1,192.8		980.0		347.6
Alternative Revenue Programs	(82.0)		(14.4)		(24.1)		(65.0)		8.2		(13.8)
Other Revenues (2)	0.2		0.7		0.6		0.2		0.7		—
Eliminations	(142.2)		(123.3)		(55.8)		(133.7)		(113.5)		(50.1)
Total Operating Revenues	$	919.6	$	918.7	$	314.9	$	994.3	$	875.4	$	283.7

(Millions of Dollars)

Subject to Refund (1)

Other Revenues ⁽¹⁾

(Millions of Dollars)

Other Revenues ⁽¹⁾

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

For the Three Months Ended September 30, 2020 For the Three Months Ended September 30, 2019
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 608.7
$ 415.4
$ 159.8
$ 513.6
$ 374.4
$ 153.4
Commercial 244.7
358.3
80.1
247.0
406.1
84.1
Industrial 38.0
30.6
22.4
37.4
32.4
20.8
Total Retail Tariff Sales Revenues 891.4
804.3
262.3
798.0
812.9
258.3
Wholesale Transmission Revenues 233.3
153.1
71.8
175.2
132.9
57.4
Wholesale Market Sales Revenues 60.0
12.1
7.5
13.8
14.4
4.9
Other Revenues from Contracts with Customers 8.1
10.5
3.7
9.0
3.1
4.0
Amortization of Revenues Subject to Refund 0
0
2.3
0
0
4.5
Total Revenues from Contracts with Customers 1,192.8
980.0
347.6
996.0
963.3
329.1
Alternative Revenue Programs (65.0 ) 8.2
(13.8 ) (15.2 ) 9.8
(8.8 )
Other Revenues ⁽¹⁾
0.2
0.7
0
4.1
1.8
0.6
Eliminations (133.7 ) (113.5 ) (50.1 ) (131.0 ) (96.2 ) (40.5 )
Total Operating Revenues $ 994.3
$ 875.4
$ 283.7
$ 853.9
$ 878.7
$ 280.4

For the Nine Months Ended September 30, 2020 For the Nine Months Ended September 30, 2019
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,567.9
$ 1,057.9
$ 437.9
$ 1,426.9
$ 1,027.8
$ 425.1
Commercial 670.4
921.3
225.3
708.4
1,058.3
236.8
Industrial 105.3
82.1
61.0
105.8
90.1
58.1
Total Retail Tariff Sales Revenues 2,343.6
2,061.3
724.2
2,241.1
2,176.2
720.0
Wholesale Transmission Revenues 576.5
430.3
171.1
445.9
383.1
142.6
Wholesale Market Sales Revenues 163.9
39.8
27.4
39.6
55.9
28.4
Other Revenues from Contracts with Customers 25.1
32.4
10.9
27.0
13.2
11.8
Amortization of/(Reserve for) Revenues
Subject to Refund 0
0
6.9
0
0
(1.7 )
Total Revenues from Contracts with Customers 3,109.1
2,563.8
940.5
2,753.6
2,628.4
901.1
Alternative Revenue Programs (27.8 ) 31.1
(1.2 ) 45.6
19.1
6.4
Other Revenues ⁽¹⁾
2.0
2.8
0.6
7.9
5.2
1.4
Eliminations (371.9 ) (327.5 ) (124.6 ) (363.1 ) (294.5 ) (111.1 )
Total Operating Revenues $ 2,711.4
$ 2,270.2
$ 815.3
$ 2,444.0
$ 2,358.2
$ 797.8

(2) Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. ⁽¹⁾

CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and the Connecticut water distribution business each have a revenue decoupling mechanism approved by a regulatory commission. The revenue decoupling mechanisms mitigate the impact of lower demand and resulting lost sales revenues by replacing actual customer usage with a fixed annual revenue stream, each of which is reconciled each year as part of our annual decoupling filing in each respective jurisdiction. These revenue decoupling mechanisms qualify as alternative revenue programs in accordance with accounting guidance for rate-regulated operations. The increase in Eversource's electric and natural gas distribution segment revenues from Alternative Revenue Programs for the nine months ended September 30, 2021 and 2020, as compared to the nine months ended September 30, 2019, was primarily the result of a higher decoupling deferral adjustment driven by lower distribution sales volumes in 2020. The decoupling deferral adjustment to revenues is recorded as a regulatory tracker mechanism within Regulatory Assets on the balance sheets.respectively.

16. SEGMENT INFORMATION

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



(Thousands of Dollars)	As of September 30, 2020			As of December 31, 2019

ASSETS
Current Assets:
Cash and Cash Equivalents	$	729,993		$	15,432
Receivables, Net (net of allowance for uncollectible accounts of $294,972 and $224,821 as of September 30, 2020 and December 31, 2019, respectively)	1,113,495			989,383
Unbilled Revenues	155,961			181,006
Fuel, Materials, Supplies and REC Inventory	214,300			235,471
Regulatory Assets	762,883			651,112
Prepayments and Other Current Assets	243,781			342,135
Total Current Assets	3,220,413			2,414,539
Property, Plant and Equipment, Net	29,092,981			27,585,470
Deferred Debits and Other Assets:
Regulatory Assets	4,883,165			4,863,639
Goodwill	4,403,666			4,427,266
Investments in Unconsolidated Affiliates	903,177			871,633
Marketable Securities	438,839			449,130
Other Long-Term Assets	565,104			512,238
Total Deferred Debits and Other Assets	11,193,951			11,123,906
Total Assets	$	43,507,345		$	41,123,915

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	60,500		$	889,084
Long-Term Debt – Current Portion	1,078,186			327,411
Rate Reduction Bonds – Current Portion	43,210			43,210
Accounts Payable	1,222,058			1,147,872
Regulatory Liabilities	464,673			361,152
Other Current Liabilities	765,443			836,834
Total Current Liabilities	3,634,070			3,605,563
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	3,960,672			3,755,777
Regulatory Liabilities	3,711,488			3,658,042
Derivative Liabilities	312,933			338,710
Asset Retirement Obligations	499,859			488,511
Accrued Pension, SERP and PBOP	1,163,229			1,370,245
Other Long-Term Liabilities	856,285			810,553
Total Deferred Credits and Other Liabilities	10,504,466			10,421,838
Long-Term Debt	14,736,310			13,770,828
Rate Reduction Bonds	496,912			540,122
Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570			155,570
Common Shareholders' Equity:
Common Shares	1,789,092			1,729,292
Capital Surplus, Paid In	7,996,976			7,087,768
Retained Earnings	4,535,860			4,177,048
Accumulated Other Comprehensive Loss	(60,397		)	(65,059		)
Treasury Stock	(281,514		)	(299,055		)
Common Shareholders' Equity	13,980,017			12,629,994
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	$	43,507,345		$	41,123,915


⁽¹⁾ 21	Equity in Earnings of Unconsolidated Affiliates includes $2.4 million of primarily realized gains associated with an investment in a renewable energy fund for the nine months ended September 30, 2020. For the nine months ended September 30, 2019, unrealized gains on this investment totaled $20.4 million.



(Millions of Dollars)	As of September 30, 2020		As of September 30, 2019
Eversource	$	357.4	$	317.8
CL&P	97.8		107.6
NSTAR Electric	92.6		79.0
PSNH	50.0		35.8


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


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


⁽²⁾(2) The use of proceeds from these various issuances refinanced existing indebtedness, funded capital expenditures and were for general corporate purposes. The EGMA indebtedness that was refinanced included $309.4 million of long-term debt.	~~The proceeds from these Eversource parent issuances funded a portion of the purchase price for the CMA asset acquisition and refinanced short-term borrowings.~~


(Millions of Dollars)					(Millions of Dollars)
Balance Sheet:	As of September 30, 2020		As of December 31, 2019
PSNH Balance Sheets:					PSNH Balance Sheets:	As of September 30, 2021		As of December 31, 2020
Restricted Cash - Current Portion (included in Current Assets)	$	18.8	$	32.5	Restricted Cash - Current Portion (included in Current Assets)	$	18.3	$	36.8
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	2.1		3.2		Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	3.2		2.1
Securitized Stranded Cost (included in Regulatory Assets)	532.9		565.3		Securitized Stranded Cost (included in Regulatory Assets)	489.7		522.1
Other Regulatory Liabilities (included in Regulatory Liabilities)	7.2		5.6		Other Regulatory Liabilities (included in Regulatory Liabilities)	8.0		9.1
Accrued Interest (included in Other Current Liabilities)	3.2		8.6		Accrued Interest (included in Other Current Liabilities)	3.0		8.0
Rate Reduction Bonds - Current Portion	43.2		43.2		Rate Reduction Bonds - Current Portion	43.2		43.2
Rate Reduction Bonds - Long-Term Portion	496.9		540.1		Rate Reduction Bonds - Long-Term Portion	453.7		496.9



(Millions of Dollars) Income Statement:	For the Three Months Ended				For the Nine Months Ended
(Millions of Dollars) Income Statement:	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	$	10.8	$	10.8	$	32.4	$	32.2
Interest Expense on RRB Principal (included in Interest Expense)	4.9		5.2		14.9		15.9



NSTAR Electric	October - December 2020
(Millions of Dollars)	October - December 2020		2021		2022		2023		2024		Thereafter		Total
Renewable Energy	$	24.3	$	98.5	$	100.0	$	75.4	$	72.9	$	594.5	$	965.6



Company	Description	Maximum Exposure (in millions)		Expiration Dates
Various	Surety Bonds⁽¹⁾	$	30.9	2020 - 2023
Rocky River Realty Company and Eversource Service	Lease Payments for Real Estate	5.6		2024
Bay State Wind LLC	Real Estate Purchase	2.5		2021
Sunrise Wind LLC	OREC Capacity Production ⁽²⁾	2.2		-


⁽¹⁾	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.



	Shares
			Authorized as of September 30, 2020 and December 31, 2019	Issued as of
	Par Value		Authorized as of September 30, 2020 and December 31, 2019	September 30, 2020	December 31, 2019
Eversource	$	5	380,000,000	357,818,402	345,858,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	200	200
PSNH	$	1	100,000,000	301	301


(Millions of Dollars)
Current Assets	$	138
Restricted Cash	57
PP&E	1,184
Goodwill	50
Other Noncurrent Assets, excluding Goodwill	131
Other Current Liabilities	(81)
Other Noncurrent Liabilities	(310)
Cash Purchase Price	$	1,169


⁽¹⁾ (2) The use of proceeds from these various issuances refinanced existing indebtedness, funded capital expenditures and were for general corporate purposes. The EGMA indebtedness that was refinanced included $309.4 million of long-term debt.	~~These senior notes are part of the same series issued by Eversource parent in~~ ~~January 2020. The aggregate outstanding principal amount of these senior notes is now $650 million.~~


⁽²⁾	~~A portion of the proceeds from these Eversource parent issuances were used to acquire the CMA assets, with the remaining used to refinance short-term borrowings.~~



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


⁽¹⁾(1) The contractual capacity increased from 880 MWs to 924 MWs, as allowed under the original agreement with NYSERDA.	~~The pricing for the Revolution Wind contracts in Connecticut has not been publicly disclosed.~~


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


⁽³⁾	The Long Island Power Authority (LIPA) agreed to expand the original 20-year PPA from 90 MW to 130 MW through an amendment to the original agreement. The amendment is awaiting final approval from the New York Comptroller's Office.


	Electric				Firm Natural Gas				Water
	Sales Volumes (GWh)		Percentage (Decrease)/Increase		Sales Volumes (MMcf)		Percentage Increase		Sales Volumes (MG)		Percentage Decrease
Three Months Ended September 30:	2021	2020			2021	2020			2021	2020
Traditional	2,097	2,110	(0.6)	%	—	—	—	%	397	770	(48.4)	%
Decoupled and Special Contracts (1)(2)	12,197	12,281	(0.7)	%	16,545	15,951	3.7	%	6,856	8,102	(15.4)	%
Total Sales Volumes	14,294	14,391	(0.7)	%	16,545	15,951	3.7	%	7,253	8,872	(18.2)	%

Nine Months Ended September 30:
Traditional	5,901	5,805	1.7	%	—	—	—	%	967	1,686	(42.6)	%
Decoupled and Special Contracts (1)(2)	33,071	32,404	2.1	%	107,337	103,286	3.9	%	16,863	17,658	(4.5)	%
Total Sales Volumes	38,972	38,209	2.0	%	107,337	103,286	3.9	%	17,830	19,344	(7.8)	%


⁽¹⁾ (2) Eversource acquired CMA's natural gas distribution assets on October 9, 2020. Prior year sales volumes have been presented for comparative purposes.	Special contracts are unique to Yankee Gas natural gas distribution customers who take service under such an arrangement and generally specify the amount of distribution revenue to be paid to Yankee Gas regardless of the customers' usage.


(Millions of Dollars)	Three Months Ended		Nine Months Ended
Electric Distribution	$	(5.1)	$	150.2
Natural Gas Distribution	75.3		507.8
Electric Transmission	29.0		94.5
Water Distribution	(2.3)		(5.6)
Other	3.8		98.4
Eliminations	(11.5)		(134.6)
Total Operating Revenues	$	89.2	$	710.7



(Millions of Dollars)	Three Months Ended			Nine Months Ended
Base Electric Distribution (Non-Tracked Costs):
Employee-related expenses, including labor and benefits	$	(4.3	)	$	(14.1	)
Storm Restoration Costs	10.1			8.6
Operations-related expenses, including vegetation management, vehicles, and outside services	(4.2		)	1.8
Shared corporate costs (including computer software depreciation at Eversource Service)	7.2			17.9
COVID-19 Costs	1.9			8.6
Other non-tracked operations and maintenance	(1.5		)	(2.3		)
Total Base Electric Distribution (Non-Tracked Costs)	9.2			20.5
Base Natural Gas Distribution (Non-Tracked Costs)	0.3			2.7
Water Distribution:
Gain on sale of Hingham water system	(16.0		)	(16.0		)
Other	0.7			0.6
Total Water Distribution	(15.3		)	(15.4		)
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution)	16.0			23.3
Other and eliminations:
Eversource Parent and Other Companies - other operations and maintenance	(11.7		)	33.4
Acquisition costs related to CMA	7.4			17.6
Eliminations	(5.0		)	(70.7		)
Total Operations and Maintenance	$	0.9		$	11.4


•	~~The~~increase at NSTAR Electric was due to higher interest on long-term debt ($8.9 million), an increase in interest expense on regulatory deferrals ($4.6 million), and a decrease in AFUDC related to debt funds ($1.6 million), partially offset by a decrease in interest on short-term notes payable ($3.3 million).


(Millions of Dollars)
Retail Tariff Tracked Revenues:
Energy supply procurement	$	(14.5)
Retail transmission	13.5
Other distribution tracking mechanisms	(20.4)
Wholesale Market Sales Revenue	40.3



(Millions of Dollars)
Retail Tariff Tracked Revenues
Energy supply procurement	$	(1.5	)
FMCC	51.4
Other distribution tracking mechanisms	22.6
Wholesale Market Sales Revenue	46.2


(Millions of Dollars)
Purchased Power Costs	$	(13.3)
Transmission Costs	14.9
Eliminations	(8.4)
Total Purchased Power and Transmission	$	(6.8)



(Millions of Dollars)
Purchased Power Costs	$	105.6
Transmission Costs	(2.7		)
Eliminations	(2.8		)
Total Purchased Power and Transmission	$	100.1


(Millions of Dollars)
Base Electric Distribution (Non-Tracked Costs):
CL&P assessment by PURA for Tropical Storm Isaias response; reflected as reduction to Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement	$	(28.4)
Charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021	10.0
Funding of CL&P storm reserve as part of June 1, 2021 rate change	6.0
Employee-related expenses, including labor and benefits	(7.2)
Storm Restoration Costs	(2.7)
Vegetation management	3.5
Operations-related expenses, including vehicles and outside services	3.4
Other non-tracked operations and maintenance	0.3
Total Base Electric Distribution (Non-Tracked Costs)	(15.1)
Total Tracked Costs	5.4
Total Operations and Maintenance	$	(9.7)


~~ITEM 3.~~	~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~