

	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	March 31, ~~2021~~2022
	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	☐	☒
The Connecticut Light and Power Company	☐	☒
NSTAR Electric Company	☐	☒
Public Service Company of New Hampshire	☐	☒

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


Company - Class of Stock	Outstanding as of April 30, ~~2021~~2022

Eversource Energy Common Shares, $5.00 par value	~~343,466,162~~344,878,136	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~~Instruction 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, 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			Aquarion Company and its subsidiaries
~~NPT~~			~~Northern Pass Transmission LLC~~
~~Northern Pass~~			~~The 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~~North East Offshore			~~Bay State Wind~~North East Offshore, 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, NSTAR Gas and EGMA, ~~NPT, Aquarion,~~Aquarion’s water distribution businesses, and the solar power facilities of NSTAR Electric
Regulators and Government Agencies:
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
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
CfD			Contract for Differences
~~CTA~~			~~Competitive Transition Assessment~~
CWIP			Construction Work in Progress
EDC			Electric distribution company


EDIT			Excess Deferred Income Taxes
EPS			Earnings Per Share
ERISA			Employee Retirement Income Security Act of 1974
ESOP			Employee Stock Ownership Plan
Eversource ~~2020~~2021 Form 10-K			The Eversource Energy and Subsidiaries ~~2020~~2021 combined Annual Report on Form 10-K as filed with the SEC
Fitch			Fitch Ratings, Inc.


FMCC			Federally Mandated Congestion Charge
GAAP			Accounting principles generally accepted in the United States of America
~~GSC~~			~~Generation Service Charge~~
GWh			Gigawatt-Hours
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)
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
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
UI			The United Illuminating Company
VIE			Variable Interest Entity

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

TABLE OF CONTENTS


		Page
PART I – FINANCIAL INFORMATION

ITEM 1.	Financial Statements (Unaudited)

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

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

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

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

	Combined Notes to Condensed Financial Statements (Unaudited)	17

ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	36
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries	5150

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	55

ITEM 4.	Controls and Procedures	55

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	56

ITEM 1A.	Risk Factors	56

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56

ITEM 6.	Exhibits	57

SIGNATURES		58

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	(Thousands of Dollars)	As of March 31, 2021		As of December 31, 2020		(Thousands of Dollars)	As of March 31, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	34,112	$	106,599	Cash	$	46,175	$	66,773
Receivables, Net (net of allowance for uncollectible accounts of $391,663 and $358,851 as of March 31, 2021 and December 31, 2020, respectively		1,290,200		1,195,925
Receivables, Net (net of allowance for uncollectible accounts of $432,174 and $417,406 as of March 31, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $432,174 and $417,406 as of March 31, 2022 and December 31, 2021, respectively)	1,468,558		1,226,069
Unbilled Revenues	Unbilled Revenues	194,673		233,025		Unbilled Revenues	192,913		210,879
Fuel, Materials, Supplies and REC Inventory	Fuel, Materials, Supplies and REC Inventory	308,093		265,599		Fuel, Materials, Supplies and REC Inventory	287,042		267,547
Regulatory Assets	Regulatory Assets	1,081,074		1,076,556		Regulatory Assets	1,128,088		1,129,093

Prepayments and Other Current Assets	Prepayments and Other Current Assets	238,727		252,439		Prepayments and Other Current Assets	350,907		369,759
Total Current Assets	Total Current Assets	3,146,879		3,130,143		Total Current Assets	3,473,683		3,270,120
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	31,265,819		30,882,523		Property, Plant and Equipment, Net	33,852,596		33,377,650
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	5,431,459		5,493,330		Regulatory Assets	4,573,309		4,586,709
Goodwill	Goodwill	4,453,055		4,445,988		Goodwill	4,477,118		4,477,269
Investments in Unconsolidated Affiliates	Investments in Unconsolidated Affiliates	1,139,636		1,107,143		Investments in Unconsolidated Affiliates	1,545,433		1,436,293
Marketable Securities	Marketable Securities	447,320		456,617		Marketable Securities	423,216		460,347
Other Long-Term Assets	Other Long-Term Assets	634,047		583,854		Other Long-Term Assets	943,797		883,756
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	12,105,517		12,086,932		Total Deferred Debits and Other Assets	11,962,873		11,844,374
Total Assets	Total Assets	$	46,518,215	$	46,099,598	Total Assets	$	49,289,152	$	48,492,144

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable	Notes Payable	$	1,872,444	$	1,249,325	Notes Payable	$	1,668,800	$	1,505,450
Long-Term Debt – Current Portion	Long-Term Debt – Current Portion	1,211,191		1,053,186		Long-Term Debt – Current Portion	817,114		1,193,097
Rate Reduction Bonds – Current Portion	Rate Reduction Bonds – Current Portion	43,210		43,210		Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	Accounts Payable	1,060,867		1,370,647		Accounts Payable	1,494,360		1,672,230

Regulatory Liabilities	Regulatory Liabilities	520,833		389,430		Regulatory Liabilities	652,358		602,432
Other Current Liabilities	Other Current Liabilities	830,399		809,214		Other Current Liabilities	925,467		830,620
Total Current Liabilities	Total Current Liabilities	5,538,944		4,915,012		Total Current Liabilities	5,601,309		5,847,039
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	4,157,932		4,095,339		Accumulated Deferred Income Taxes	4,683,105		4,597,120
Regulatory Liabilities	Regulatory Liabilities	3,863,031		3,850,781		Regulatory Liabilities	3,894,768		3,866,251
Derivative Liabilities	Derivative Liabilities	293,560		294,535		Derivative Liabilities	209,548		235,387
Asset Retirement Obligations	Asset Retirement Obligations	500,276		499,713		Asset Retirement Obligations	500,685		500,111
Accrued Pension, SERP and PBOP	Accrued Pension, SERP and PBOP	1,565,753		1,653,788		Accrued Pension, SERP and PBOP	200,614		242,463
Other Long-Term Liabilities	Other Long-Term Liabilities	951,750		948,506		Other Long-Term Liabilities	862,304		971,080
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	11,332,302		11,342,662		Total Deferred Credits and Other Liabilities	10,351,024		10,412,412
Long-Term Debt	Long-Term Debt	14,782,672		15,125,876		Long-Term Debt	17,912,462		17,023,577
Rate Reduction Bonds	Rate Reduction Bonds	475,307		496,912		Rate Reduction Bonds	432,097		453,702
Noncontrolling Interest – Preferred Stock of Subsidiaries	Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570		155,570		Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570		155,570
Common Shareholders' Equity:	Common Shareholders' Equity:					Common Shareholders' Equity:
Common Shares	Common Shares	1,789,092		1,789,092		Common Shares	1,789,092		1,789,092
Capital Surplus, Paid In	Capital Surplus, Paid In	8,016,118		8,015,663		Capital Surplus, Paid In	8,102,618		8,098,514
Retained Earnings	Retained Earnings	4,772,431		4,613,201		Retained Earnings	5,229,069		5,005,391
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss	(75,223)		(76,411)		Accumulated Other Comprehensive Loss	(41,571)		(42,275)
Treasury Stock	Treasury Stock	(268,998)		(277,979)		Treasury Stock	(242,518)		(250,878)
Common Shareholders' Equity	Common Shareholders' Equity	14,233,420		14,063,566		Common Shareholders' Equity	14,836,690		14,599,844
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	46,518,215	$	46,099,598	Total Liabilities and Capitalization	$	49,289,152	$	48,492,144

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information)	(Thousands of Dollars, Except Share Information)		2021		2020		(Thousands of Dollars, Except Share Information)		2022		2021

Operating Revenues	Operating Revenues		$	2,825,840	$	2,373,726	Operating Revenues		$	3,471,310	$	2,825,840

Operating Expenses:	Operating Expenses:						Operating Expenses:
Purchased Power, Fuel and Transmission	Purchased Power, Fuel and Transmission		998,491		876,570		Purchased Power, Fuel and Transmission		1,389,696		998,491
Operations and Maintenance	Operations and Maintenance		465,542		342,062		Operations and Maintenance		472,433		465,542
Depreciation	Depreciation		270,704		236,211		Depreciation		289,330		270,704
Amortization	Amortization		108,013		49,776		Amortization		236,948		108,013
Energy Efficiency Programs	Energy Efficiency Programs		188,063		148,393		Energy Efficiency Programs		199,484		188,063
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes		209,459		181,594		Taxes Other Than Income Taxes		220,364		209,459
Total Operating Expenses	Total Operating Expenses		2,240,272		1,834,606		Total Operating Expenses		2,808,255		2,240,272
Operating Income	Operating Income		585,568		539,120		Operating Income		663,055		585,568
Interest Expense	Interest Expense		137,766		134,715		Interest Expense		153,245		137,766
Other Income, Net	Other Income, Net		34,201		24,104		Other Income, Net		71,561		34,201
Income Before Income Tax Expense	Income Before Income Tax Expense		482,003		428,509		Income Before Income Tax Expense		581,371		482,003
Income Tax Expense	Income Tax Expense		113,980		91,876		Income Tax Expense		136,045		113,980
Net Income	Net Income		368,023		336,633		Net Income		445,326		368,023
Net Income Attributable to Noncontrolling Interests	Net Income Attributable to Noncontrolling Interests		1,880		1,880		Net Income Attributable to Noncontrolling Interests		1,880		1,880
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders		$	366,143	$	334,753	Net Income Attributable to Common Shareholders		$	443,446	$	366,143

Basic Earnings Per Common Share	Basic Earnings Per Common Share		$	1.07	$	1.01	Basic Earnings Per Common Share		$	1.28	$	1.07

Diluted Earnings Per Common Share	Diluted Earnings Per Common Share		$	1.06	$	1.01	Diluted Earnings Per Common Share		$	1.28	$	1.06

Weighted Average Common Shares Outstanding:	Weighted Average Common Shares Outstanding:						Weighted Average Common Shares Outstanding:
Basic	Basic		343,678,243		331,102,237		Basic		345,156,346		343,678,243
Diluted	Diluted		344,334,689		332,937,153		Diluted		345,661,133		344,334,689

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Net Income	Net Income		$	368,023	$	336,633	Net Income		$	445,326	$	368,023
Other Comprehensive Income, Net of Tax:	Other Comprehensive Income, Net of Tax:						Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	Qualified Cash Flow Hedging Instruments		407		229		Qualified Cash Flow Hedging Instruments		5		407
Changes in Unrealized (Losses)/Gains on Marketable Securities			(736)		160
Changes in Unrealized Losses on Marketable Securities							Changes in Unrealized Losses on Marketable Securities		(817)		(736)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	Changes in Funded Status of Pension, SERP and PBOP Benefit Plans		1,517		1,559		Changes in Funded Status of Pension, SERP and PBOP Benefit Plans		1,516		1,517
Other Comprehensive Income, Net of Tax	Other Comprehensive Income, Net of Tax		1,188		1,948		Other Comprehensive Income, Net of Tax		704		1,188
Comprehensive Income Attributable to Noncontrolling Interests	Comprehensive Income Attributable to Noncontrolling Interests		(1,880)		(1,880)		Comprehensive Income Attributable to Noncontrolling Interests		(1,880)		(1,880)
Comprehensive Income Attributable to Common Shareholders	Comprehensive Income Attributable to Common Shareholders		$	367,331	$	336,701	Comprehensive Income Attributable to Common Shareholders		$	444,150	$	367,331

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)


		For the Three Months Ended March 31, 2021														For the Three Months Ended March 31, 2022
		Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity			Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	(Thousands of Dollars, Except Share Information)	Shares	Amount												(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
Balance as of January 1, 2022															Balance as of January 1, 2022	344,403,196	$	1,789,092	$	8,098,514	$	5,005,391	$	(42,275)	$	(250,878)	$	14,599,844
Net Income	Net Income						368,023						368,023		Net Income						445,326						445,326
Dividends on Common Shares - $0.6025 Per Share							(206,913)						(206,913)
Dividends on Common Shares - $0.6375 Per Share															Dividends on Common Shares - $0.6375 Per Share						(219,768)						(219,768)
Dividends on Preferred Stock	Dividends on Preferred Stock						(1,880)						(1,880)		Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity	Long-Term Incentive Plan Activity				(15,727)								(15,727)		Long-Term Incentive Plan Activity				(16,538)								(16,538)
Issuance of Treasury Shares	Issuance of Treasury Shares	480,275			16,182						8,981		25,163		Issuance of Treasury Shares	447,076			20,642						8,360		29,002

Other Comprehensive Income	Other Comprehensive Income								1,188				1,188		Other Comprehensive Income								704				704
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
Balance as of March 31, 2022															Balance as of March 31, 2022	344,850,272	$	1,789,092	$	8,102,618	$	5,229,069	$	(41,571)	$	(242,518)	$	14,836,690


		For the Three Months Ended March 31, 2020														For the Three Months Ended March 31, 2021
		Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity			Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	(Thousands of Dollars, Except Share Information)	Shares	Amount												(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
Balance as of January 1, 2021															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	Net Income						336,633						336,633		Net Income						368,023						368,023
Dividends on Common Shares - $0.5675 Per Share							(187,462)						(187,462)
Dividends on Common Shares - $0.6025 Per Share															Dividends on Common Shares - $0.6025 Per Share						(206,913)						(206,913)
Dividends on Preferred Stock	Dividends on Preferred Stock						(1,880)						(1,880)		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	Long-Term Incentive Plan Activity				(15,295)								(15,295)		Long-Term Incentive Plan Activity				(15,727)								(15,727)
Issuance of Treasury Shares	Issuance of Treasury Shares	570,542			17,230						10,516		27,746		Issuance of Treasury Shares	480,275			16,182						8,981		25,163
Capital Stock Expense					(12,314)								(12,314)
Adoption of Accounting Standards Update 2016-13							(1,514)						(1,514)
Other Comprehensive Income	Other Comprehensive Income								1,948				1,948		Other Comprehensive Income								1,188				1,188
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
Balance as of March 31, 2021															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

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	368,023	$	336,633	Net Income	$	445,326	$	368,023
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:					Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	Depreciation	270,704		236,211		Depreciation	289,330		270,704
Deferred Income Taxes	Deferred Income Taxes	41,917		44,201		Deferred Income Taxes	67,557		41,917
Uncollectible Expense	Uncollectible Expense	16,295		11,353		Uncollectible Expense	17,135		16,295
Pension, SERP and PBOP (Income)/Expense, Net		(2,341)		1,953
Pension, SERP and PBOP Income, Net						Pension, SERP and PBOP Income, Net	(40,642)		(2,341)
Pension and PBOP Contributions	Pension and PBOP Contributions	(31,100)		(723)		Pension and PBOP Contributions	(26,100)		(31,100)
Regulatory Over/(Under) Recoveries, Net		58,024		(22,288)
Regulatory (Under)/Over Recoveries, Net						Regulatory (Under)/Over Recoveries, Net	(107,767)		28,024
(Customer Credits)/Reserve at CL&P related to PURA Settlement Agreement and Storm Performance Penalty						(Customer Credits)/Reserve at CL&P related to PURA Settlement Agreement and Storm Performance Penalty	(58,412)		30,000
Amortization	Amortization	108,013		49,776		Amortization	236,948		108,013

Cost of Removal Expenditures						Cost of Removal Expenditures	(61,660)		(39,333)
Other	Other	(91,246)		(33,317)		Other	(21,409)		(51,913)
Changes in Current Assets and Liabilities:	Changes in Current Assets and Liabilities:					Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	Receivables and Unbilled Revenues, Net	(124,344)		(55,290)		Receivables and Unbilled Revenues, Net	(291,723)		(124,344)
Fuel, Materials, Supplies and REC Inventory	Fuel, Materials, Supplies and REC Inventory	(42,494)		(51,027)		Fuel, Materials, Supplies and REC Inventory	(19,495)		(42,494)
Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	64,076		92,140		Taxes Receivable/Accrued, Net	56,519		64,076
Accounts Payable	Accounts Payable	(181,725)		(127,366)		Accounts Payable	(68,909)		(181,725)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(42,386)		(61,950)		Other Current Assets and Liabilities, Net	(44,758)		(42,386)
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	411,416		420,306		Net Cash Flows Provided by Operating Activities	371,940		411,416

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(688,983)		(725,520)		Investments in Property, Plant and Equipment	(764,594)		(688,983)
Proceeds from Sales of Marketable Securities	Proceeds from Sales of Marketable Securities	79,818		58,627		Proceeds from Sales of Marketable Securities	90,409		79,818
Purchases of Marketable Securities	Purchases of Marketable Securities	(68,360)		(50,723)		Purchases of Marketable Securities	(76,182)		(68,360)

Investments in Unconsolidated Affiliates, Net	Investments in Unconsolidated Affiliates, Net	(34,127)		(6,113)		Investments in Unconsolidated Affiliates, Net	(113,856)		(34,127)
Other Investing Activities	Other Investing Activities	7,135		6,119		Other Investing Activities	5,976		7,135
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(704,517)		(717,610)		Net Cash Flows Used in Investing Activities	(858,247)		(704,517)

Financing Activities:	Financing Activities:					Financing Activities:
Issuance of Common Shares, Net of Issuance Costs		0		419,786
Cash Dividends on Common Shares	Cash Dividends on Common Shares	(201,013)		(181,608)		Cash Dividends on Common Shares	(213,890)		(201,013)
Cash Dividends on Preferred Stock	Cash Dividends on Preferred Stock	(1,880)		(1,880)		Cash Dividends on Preferred Stock	(1,880)		(1,880)
Increase/(Decrease) in Notes Payable		669,919		(408,950)
Increase in Notes Payable						Increase in Notes Payable	163,350		669,919
Repayment of Rate Reduction Bonds	Repayment of Rate Reduction Bonds	(21,605)		(21,605)		Repayment of Rate Reduction Bonds	(21,605)		(21,605)
Issuance of Long-Term Debt	Issuance of Long-Term Debt	350,000		750,000		Issuance of Long-Term Debt	1,300,000		350,000
Retirement of Long-Term Debt	Retirement of Long-Term Debt	(572,000)		(220,253)		Retirement of Long-Term Debt	(770,000)		(572,000)
Other Financing Activities	Other Financing Activities	(19,666)		(21,560)		Other Financing Activities	(26,087)		(19,666)
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	203,755		313,930		Net Cash Flows Provided by Financing Activities	429,888		203,755
Net (Decrease)/Increase in Cash and Restricted Cash		(89,346)		16,626
Net Decrease in Cash and Restricted Cash						Net Decrease in Cash and Restricted Cash	(56,419)		(89,346)
Cash and Restricted Cash - Beginning of Period	Cash and Restricted Cash - Beginning of Period	264,950		117,063		Cash and Restricted Cash - Beginning of Period	221,008		264,950
Cash and Restricted Cash - End of Period	Cash and Restricted Cash - End of Period	$	175,604	$	133,689	Cash and Restricted Cash - End of Period	$	164,589	$	175,604

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)	(Thousands of Dollars)	As of March 31, 2021		As of December 31, 2020		(Thousands of Dollars)	As of March 31, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	9,256	$	90,801	Cash	$	21,628	$	55,804
Receivables, Net (net of allowance for uncollectible accounts of $175,105 and $157,447 as of March 31, 2021 and December 31, 2020, respectively)		483,711		459,214
Receivables, Net (net of allowance for uncollectible accounts of $180,524 and $181,319 as of March 31, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $180,524 and $181,319 as of March 31, 2022 and December 31, 2021, respectively)	567,718		447,774
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	40,721		17,486		Accounts Receivable from Affiliated Companies	46,852		43,944
Unbilled Revenues	Unbilled Revenues	50,522		57,407		Unbilled Revenues	50,515		56,787
Materials and Supplies	Materials and Supplies	57,301		57,924		Materials and Supplies	65,196		60,264
Regulatory Assets	Regulatory Assets	386,140		345,622		Regulatory Assets	382,112		371,609

Prepayments and Other Current Assets	Prepayments and Other Current Assets	88,153		83,950		Prepayments and Other Current Assets	95,710		120,257
Total Current Assets	Total Current Assets	1,115,804		1,112,404		Total Current Assets	1,229,731		1,156,439
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	10,344,782		10,234,556		Property, Plant and Equipment, Net	10,941,005		10,803,543
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	1,863,935		1,866,152		Regulatory Assets	1,681,057		1,713,161
Other Long-Term Assets	Other Long-Term Assets	258,126		242,862		Other Long-Term Assets	287,028		276,513
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	2,122,061		2,109,014		Total Deferred Debits and Other Assets	1,968,085		1,989,674
Total Assets	Total Assets	$	13,582,647	$	13,455,974	Total Assets	$	14,138,821	$	13,949,656

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable to Eversource Parent		$	32,100	$	0

Long-Term Debt – Current Portion						Long-Term Debt – Current Portion	$	400,000	$	—
Accounts Payable	Accounts Payable	369,838		451,240		Accounts Payable	514,385		533,454
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	121,868		51,118		Accounts Payable to Affiliated Companies	126,363		132,578
Obligations to Third Party Suppliers		48,762		49,967

Regulatory Liabilities	Regulatory Liabilities	202,362		137,166		Regulatory Liabilities	251,555		266,489
Accrued Interest		49,637		37,645

Derivative Liabilities	Derivative Liabilities	69,738		68,767		Derivative Liabilities	74,428		73,528
Other Current Liabilities	Other Current Liabilities	63,690		64,415		Other Current Liabilities	174,210		141,955
Total Current Liabilities	Total Current Liabilities	957,995		860,318		Total Current Liabilities	1,540,941		1,148,004
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	1,438,413		1,408,343		Accumulated Deferred Income Taxes	1,588,370		1,562,102
Regulatory Liabilities	Regulatory Liabilities	1,203,616		1,204,942		Regulatory Liabilities	1,208,297		1,193,259
Derivative Liabilities	Derivative Liabilities	293,560		294,535		Derivative Liabilities	209,548		235,387
Accrued Pension, SERP and PBOP		449,944		478,325

Other Long-Term Liabilities	Other Long-Term Liabilities	136,508		133,690		Other Long-Term Liabilities	181,850		179,824
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	3,522,041		3,519,835		Total Deferred Credits and Other Liabilities	3,188,065		3,170,572
Long-Term Debt	Long-Term Debt	3,914,749		3,914,835		Long-Term Debt	3,815,662		4,215,379
Preferred Stock Not Subject to Mandatory Redemption	Preferred Stock Not Subject to Mandatory Redemption	116,200		116,200		Preferred Stock Not Subject to Mandatory Redemption	116,200		116,200
Common Stockholder's Equity:	Common Stockholder's Equity:					Common Stockholder's Equity:
Common Stock	Common Stock	60,352		60,352		Common Stock	60,352		60,352
Capital Surplus, Paid In	Capital Surplus, Paid In	2,810,765		2,810,765		Capital Surplus, Paid In	3,110,765		3,010,765
Retained Earnings	Retained Earnings	2,200,275		2,173,367		Retained Earnings	2,306,620		2,228,133
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income	270		302		Accumulated Other Comprehensive Income	216		251
Common Stockholder's Equity	Common Stockholder's Equity	5,071,662		5,044,786		Common Stockholder's Equity	5,477,953		5,299,501
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	13,582,647	$	13,455,974	Total Liabilities and Capitalization	$	14,138,821	$	13,949,656

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Operating Revenues	Operating Revenues		$	987,274	$	899,703	Operating Revenues		$	1,285,831	$	987,274

Operating Expenses:	Operating Expenses:						Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission		373,274		374,717		Purchased Power and Transmission		523,463		373,274
Operations and Maintenance	Operations and Maintenance		175,420		135,597		Operations and Maintenance		157,061		175,420
Depreciation	Depreciation		83,405		78,435		Depreciation		87,265		83,405
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net		62,775		6,548		Amortization of Regulatory Assets, Net		169,749		62,775
Energy Efficiency Programs	Energy Efficiency Programs		35,573		35,479		Energy Efficiency Programs		35,397		35,573
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes		91,392		82,987		Taxes Other Than Income Taxes		90,373		91,392
Total Operating Expenses	Total Operating Expenses		821,839		713,763		Total Operating Expenses		1,063,308		821,839
Operating Income	Operating Income		165,435		185,940		Operating Income		222,523		165,435
Interest Expense	Interest Expense		38,979		37,883		Interest Expense		40,586		38,979
Other Income, Net	Other Income, Net		4,908		1,898		Other Income, Net		19,564		4,908
Income Before Income Tax Expense	Income Before Income Tax Expense		131,364		149,955		Income Before Income Tax Expense		201,501		131,364
Income Tax Expense	Income Tax Expense		32,966		31,217		Income Tax Expense		48,524		32,966
Net Income	Net Income		$	98,398	$	118,738	Net Income		$	152,977	$	98,398

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

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Net Income	Net Income		$	98,398	$	118,738	Net Income		$	152,977	$	98,398
Other Comprehensive Loss, Net of Tax:	Other Comprehensive Loss, Net of Tax:						Other Comprehensive Loss, Net of Tax:
Qualified Cash Flow Hedging Instruments	Qualified Cash Flow Hedging Instruments		(7)		(7)		Qualified Cash Flow Hedging Instruments		(7)		(7)
Changes in Unrealized (Losses)/Gains on Marketable Securities			(25)		6
Changes in Unrealized Losses on Marketable Securities							Changes in Unrealized Losses on Marketable Securities		(28)		(25)
Other Comprehensive Loss, Net of Tax	Other Comprehensive Loss, Net of Tax		(32)		(1)		Other Comprehensive Loss, Net of Tax		(35)		(32)
Comprehensive Income	Comprehensive Income		$	98,366	$	118,737	Comprehensive Income		$	152,942	$	98,366

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


		For the Three Months Ended March 31, 2021																			For the Three Months Ended March 31, 2022
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive Income				Total Common Stockholder's Equity				Common Stock					Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Income			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	(Thousands of Dollars, Except Stock Information)	Stock	Amount								(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
Balance as of January 1, 2022																				Balance as of January 1, 2022	6,035,205			$	60,352		$	3,010,765		$	2,228,133		$	251		$	5,299,501
Net Income	Net Income								98,398								98,398			Net Income									152,977						152,977
Dividends on Preferred Stock	Dividends on Preferred Stock								(1,390)								(1,390)			Dividends on Preferred Stock									(1,390)						(1,390)
Dividends on Common Stock	Dividends on Common Stock								(70,100)								(70,100)			Dividends on Common Stock									(73,100)						(73,100)
Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						100,000									100,000

Other Comprehensive Loss	Other Comprehensive Loss												(32)				(32)			Other Comprehensive Loss												(35)			(35)
Balance as of March 31, 2021		6,035,205	$	60,352	$	2,810,765			$	2,200,275			$	270			$	5,071,662
Balance as of March 31, 2022																				Balance as of March 31, 2022	6,035,205			$	60,352	$	3,110,765		$	2,306,620		$	216		$	5,477,953

For the Three Months Ended March 31, 2020
Common Stock Capital
Surplus,
Paid In Retained
Earnings Accumulated
Other
Comprehensive
Income Total
Common
Stockholder's
Equity
(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


	For the Three Months Ended March 31, 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

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	98,398	$	118,738	Net Income	$	152,977	$	98,398
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:					Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	Depreciation	83,405		78,435		Depreciation	87,265		83,405
Deferred Income Taxes	Deferred Income Taxes	25,354		19,910		Deferred Income Taxes	19,627		25,354
Uncollectible Expense	Uncollectible Expense	3,797		3,230		Uncollectible Expense	3,776		3,797
Pension, SERP, and PBOP Expense, Net		3,088		3,315
Pension, SERP, and PBOP (Income)/Expense, Net						Pension, SERP, and PBOP (Income)/Expense, Net	(7,330)		3,088
Pension Contributions	Pension Contributions	(18,940)		0		Pension Contributions	—		(18,940)
Regulatory Underrecoveries, Net	Regulatory Underrecoveries, Net	(29,971)		(34,198)		Regulatory Underrecoveries, Net	(162,474)		(59,971)
(Customer Credits)/Reserve related to PURA Settlement Agreement and Storm Performance Penalty						(Customer Credits)/Reserve related to PURA Settlement Agreement and Storm Performance Penalty	(58,412)		30,000
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	62,775		6,548		Amortization of Regulatory Assets, Net	169,749		62,775
Cost of Removal Expenditures						Cost of Removal Expenditures	(16,684)		(17,293)
Other	Other	(30,070)		(27,239)		Other	(9,357)		(12,777)
Changes in Current Assets and Liabilities:	Changes in Current Assets and Liabilities:					Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	Receivables and Unbilled Revenues, Net	(66,930)		(27,969)		Receivables and Unbilled Revenues, Net	(125,429)		(66,930)
Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	29,596		40,505		Taxes Receivable/Accrued, Net	67,708		29,596
Accounts Payable	Accounts Payable	17,124		(27,298)		Accounts Payable	38,010		17,124
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(21,433)		(21,801)		Other Current Assets and Liabilities, Net	(24,143)		(21,433)
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	156,193		132,176		Net Cash Flows Provided by Operating Activities	135,283		156,193

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(197,954)		(212,374)		Investments in Property, Plant and Equipment	(205,343)		(197,954)
Other Investing Activities	Other Investing Activities	80		74		Other Investing Activities	346		80
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(197,874)		(212,300)		Net Cash Flows Used in Investing Activities	(204,997)		(197,874)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(70,100)		(69,500)		Cash Dividends on Common Stock	(73,100)		(70,100)
Cash Dividends on Preferred Stock	Cash Dividends on Preferred Stock	(1,390)		(1,390)		Cash Dividends on Preferred Stock	(1,390)		(1,390)

Capital Contributions from Eversource Parent						Capital Contributions from Eversource Parent	100,000		—

Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	32,100		155,200		Increase in Notes Payable to Eversource Parent	—		32,100
Other Financing Activities	Other Financing Activities	(450)		(390)		Other Financing Activities	—		(450)
Net Cash Flows (Used in)/Provided by Financing Activities		(39,840)		83,920
Net (Decrease)/Increase in Cash and Restricted Cash		(81,521)		3,796
Net Cash Flows Provided by/(Used in) Financing Activities						Net Cash Flows Provided by/(Used in) Financing Activities	25,510		(39,840)
Net Decrease in Cash and Restricted Cash						Net Decrease in Cash and Restricted Cash	(44,204)		(81,521)
Cash and Restricted Cash - Beginning of Period	Cash and Restricted Cash - Beginning of Period	99,809		4,971		Cash and Restricted Cash - Beginning of Period	74,788		99,809
Cash and Restricted Cash - End of Period	Cash and Restricted Cash - End of Period	$	18,288	$	8,767	Cash and Restricted Cash - End of Period	$	30,584	$	18,288

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)	(Thousands of Dollars)	As of March 31, 2021		As of December 31, 2020		(Thousands of Dollars)	As of March 31, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	57	$	102	Cash	$	721	$	745
Receivables, Net (net of allowance for uncollectible accounts of $89,299 and $91,583 as of March 31, 2021 and December 31, 2020, respectively)		409,403		403,045
Receivables, Net (net of allowance for uncollectible accounts of $94,775 and $97,005 as of March 31, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $94,775 and $97,005 as of March 31, 2022 and December 31, 2021, respectively)	417,048		405,674
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	39,582		30,095		Accounts Receivable from Affiliated Companies	45,121		67,420
Unbilled Revenues	Unbilled Revenues	34,265		38,342		Unbilled Revenues	36,618		37,497
Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	186,892		133,894		Materials, Supplies and REC Inventory	148,084		116,712
Taxes Receivable	Taxes Receivable	6,045		65,051		Taxes Receivable	35,318		80,617
Regulatory Assets	Regulatory Assets	430,361		399,882		Regulatory Assets	433,653		443,956
Prepayments and Other Current Assets	Prepayments and Other Current Assets	23,907		21,833		Prepayments and Other Current Assets	25,465		22,397
Total Current Assets	Total Current Assets	1,130,512		1,092,244		Total Current Assets	1,142,028		1,175,018
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	10,252,264		10,123,062		Property, Plant and Equipment, Net	11,008,899		10,876,614
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	1,273,997		1,304,019		Regulatory Assets	1,239,773		1,135,231
Prepaid PBOP		211,715		204,138
Prepaid Pension and PBOP						Prepaid Pension and PBOP	475,602		441,426
Other Long-Term Assets	Other Long-Term Assets	161,451		162,836		Other Long-Term Assets	171,421		171,657
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	1,647,163		1,670,993		Total Deferred Debits and Other Assets	1,886,796		1,748,314
Total Assets	Total Assets	$	13,029,939	$	12,886,299	Total Assets	$	14,037,723	$	13,799,946

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable	Notes Payable	$	443,500	$	195,000	Notes Payable	$	275,000	$	162,500
Notes Payable to Eversource Parent	Notes Payable to Eversource Parent	22,500		21,300		Notes Payable to Eversource Parent	4,000		—
Long-Term Debt – Current Portion	Long-Term Debt – Current Portion	250,000		250,000		Long-Term Debt – Current Portion	400,000		400,000
Accounts Payable	Accounts Payable	275,923		383,558		Accounts Payable	437,896		490,915
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	120,697		95,703		Accounts Payable to Affiliated Companies	139,762		129,575
Obligations to Third Party Suppliers	Obligations to Third Party Suppliers	120,632		98,572		Obligations to Third Party Suppliers	127,342		116,273
Renewable Portfolio Standards Compliance Obligations	Renewable Portfolio Standards Compliance Obligations	156,607		127,536		Renewable Portfolio Standards Compliance Obligations	129,759		100,200
Regulatory Liabilities	Regulatory Liabilities	190,546		164,761		Regulatory Liabilities	279,299		228,248
Other Current Liabilities	Other Current Liabilities	74,789		72,118		Other Current Liabilities	157,567		84,303
Total Current Liabilities	Total Current Liabilities	1,655,194		1,408,548		Total Current Liabilities	1,950,625		1,712,014
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	1,477,998		1,459,906		Accumulated Deferred Income Taxes	1,617,909		1,579,508
Regulatory Liabilities	Regulatory Liabilities	1,556,422		1,550,390		Regulatory Liabilities	1,570,969		1,559,072
Accrued Pension and SERP		156,342		172,571

Other Long-Term Liabilities	Other Long-Term Liabilities	338,672		337,245		Other Long-Term Liabilities	275,573		347,934
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	3,529,434		3,520,112		Total Deferred Credits and Other Liabilities	3,464,451		3,486,514
Long-Term Debt	Long-Term Debt	3,393,798		3,393,221		Long-Term Debt	3,586,326		3,585,399
Preferred Stock Not Subject to Mandatory Redemption	Preferred Stock Not Subject to Mandatory Redemption	43,000		43,000		Preferred Stock Not Subject to Mandatory Redemption	43,000		43,000
Common Stockholder's Equity:	Common Stockholder's Equity:					Common Stockholder's Equity:
Common Stock	Common Stock	0		0		Common Stock	—		—
Capital Surplus, Paid In	Capital Surplus, Paid In	1,993,942		1,993,942		Capital Surplus, Paid In	2,253,942		2,253,942
Retained Earnings	Retained Earnings	2,414,201		2,527,167		Retained Earnings	2,738,925		2,718,576
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income	370		309		Accumulated Other Comprehensive Income	454		501
Common Stockholder's Equity	Common Stockholder's Equity	4,408,513		4,521,418		Common Stockholder's Equity	4,993,321		4,973,019
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	13,029,939	$	12,886,299	Total Liabilities and Capitalization	$	14,037,723	$	13,799,946

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Operating Revenues	Operating Revenues		$	737,043	$	733,833	Operating Revenues		$	863,176	$	737,043

Operating Expenses:	Operating Expenses:						Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission		226,478		242,439		Purchased Power and Transmission		313,748		226,478
Operations and Maintenance	Operations and Maintenance		143,219		122,318		Operations and Maintenance		164,862		143,219
Depreciation	Depreciation		82,793		78,345		Depreciation		89,033		82,793
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net		18,418		27,008		Amortization of Regulatory Assets, Net		29,345		18,418
Energy Efficiency Programs	Energy Efficiency Programs		75,099		68,667		Energy Efficiency Programs		80,232		75,099
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes		54,652		48,722		Taxes Other Than Income Taxes		59,774		54,652
Total Operating Expenses	Total Operating Expenses		600,659		587,499		Total Operating Expenses		736,994		600,659
Operating Income	Operating Income		136,384		146,334		Operating Income		126,182		136,384
Interest Expense	Interest Expense		32,306		31,017		Interest Expense		38,222		32,306
Other Income, Net	Other Income, Net		16,812		12,238		Other Income, Net		29,231		16,812
Income Before Income Tax Expense	Income Before Income Tax Expense		120,890		127,555		Income Before Income Tax Expense		117,191		120,890
Income Tax Expense	Income Tax Expense		26,966		27,165		Income Tax Expense		24,452		26,966
Net Income	Net Income		$	93,924	$	100,390	Net Income		$	92,739	$	93,924

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Net Income	Net Income		$	93,924	$	100,390	Net Income		$	92,739	$	93,924
Other Comprehensive Income, Net of Tax:
Other Comprehensive (Loss)/Income, Net of Tax:							Other Comprehensive (Loss)/Income, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	Changes in Funded Status of SERP Benefit Plan		(41)		(43)		Changes in Funded Status of SERP Benefit Plan		(44)		(41)
Qualified Cash Flow Hedging Instruments	Qualified Cash Flow Hedging Instruments		109		109		Qualified Cash Flow Hedging Instruments		5		109
Changes in Unrealized (Losses)/Gains on Marketable Securities			(7)		1
Other Comprehensive Income, Net of Tax			61		67
Changes in Unrealized Losses on Marketable Securities							Changes in Unrealized Losses on Marketable Securities		(8)		(7)
Other Comprehensive (Loss)/Income, Net of Tax							Other Comprehensive (Loss)/Income, Net of Tax		(47)		61
Comprehensive Income	Comprehensive Income		$	93,985	$	100,457	Comprehensive Income		$	92,692	$	93,985

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


		For the Three Months Ended March 31, 2021																			For the Three Months Ended March 31, 2022
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive Income				Total Common Stockholder's Equity				Common Stock					Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Income			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	(Thousands of Dollars, Except Stock Information)	Stock	Amount								(Thousands of Dollars, Except Stock Information)	Stock								Amount
Balance as of January 1, 2021		200	$	0			$	1,993,942							$	2,527,167			$	309		$	4,521,418
Balance as of January 1, 2022																				Balance as of January 1, 2022	200			$	—		$	2,253,942		$	2,718,576		$	501		$	4,973,019
Net Income	Net Income								93,924								93,924			Net Income									92,739						92,739
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Dividends on Common Stock	Dividends on Common Stock								(206,400)								(206,400)			Dividends on Common Stock									(71,900)						(71,900)

Other Comprehensive Income													61				61
Balance as of March 31, 2021		200	$	0	$	1,993,942			$	2,414,201			$	370			$	4,408,513
Other Comprehensive Loss																				Other Comprehensive Loss												(47)			(47)
Balance as of March 31, 2022																				Balance as of March 31, 2022	200			$	—	$	2,253,942		$	2,738,925		$	454		$	4,993,321

For the Three Months Ended March 31, 2020
Common Stock Capital
Surplus,
Paid In Retained
Earnings Accumulated
Other
Comprehensive
Income Total
Common
Stockholder's
Equity
(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 Accounting Standards Update 2016-13 (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


	For the Three Months Ended March 31, 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

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	93,924	$	100,390	Net Income	$	92,739	$	93,924
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:					Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	Depreciation	82,793		78,345		Depreciation	89,033		82,793
Deferred Income Taxes	Deferred Income Taxes	10,309		9,775		Deferred Income Taxes	26,857		10,309
Uncollectible Expense	Uncollectible Expense	3,868		3,704		Uncollectible Expense	4,662		3,868
Pension, SERP and PBOP Income, Net	Pension, SERP and PBOP Income, Net	(6,335)		(4,754)		Pension, SERP and PBOP Income, Net	(13,742)		(6,335)

Pension Contributions						Pension Contributions	(5,000)		—
Regulatory Underrecoveries, Net	Regulatory Underrecoveries, Net	(3,405)		(17,434)		Regulatory Underrecoveries, Net	(10,813)		(3,405)
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	18,418		27,008		Amortization of Regulatory Assets, Net	29,345		18,418
Cost of Removal Expenditures						Cost of Removal Expenditures	(12,852)		(10,224)
Other	Other	(23,586)		(1,643)		Other	(5,531)		(13,362)
Changes in Current Assets and Liabilities:	Changes in Current Assets and Liabilities:					Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	Receivables and Unbilled Revenues, Net	(14,587)		(64,951)		Receivables and Unbilled Revenues, Net	2,051		(14,587)
Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	(52,998)		(54,450)		Materials, Supplies and REC Inventory	(31,372)		(52,998)
Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	58,353		32,135		Taxes Receivable/Accrued, Net	45,299		58,353
Accounts Payable	Accounts Payable	(45,604)		(53,462)		Accounts Payable	(55,743)		(45,604)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	51,445		7,033		Other Current Assets and Liabilities, Net	34,931		51,445
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	172,595		61,696		Net Cash Flows Provided by Operating Activities	189,864		172,595

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(215,483)		(247,549)		Investments in Property, Plant and Equipment	(234,120)		(215,483)
Other Investing Activities	Other Investing Activities	22		21		Other Investing Activities	96		22
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(215,461)		(247,528)		Net Cash Flows Used in Investing Activities	(234,024)		(215,461)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(206,400)		(196,500)		Cash Dividends on Common Stock	(71,900)		(206,400)
Cash Dividends on Preferred Stock	Cash Dividends on Preferred Stock	(490)		(490)		Cash Dividends on Preferred Stock	(490)		(490)
Issuance of Long-Term Debt		0		400,000
Retirement of Long-Term Debt		0		(95,000)

Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	1,200		8,100		Increase in Notes Payable to Eversource Parent	4,000		1,200
Increase in Notes Payable	Increase in Notes Payable	248,500		77,500		Increase in Notes Payable	112,500		248,500
Other Financing Activities	Other Financing Activities	19		(4,961)		Other Financing Activities	15		19
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	42,829		188,649		Net Cash Flows Provided by Financing Activities	44,125		42,829
Net (Decrease)/Increase in Cash and Restricted Cash		(37)		2,817
Net Decrease in Cash and Restricted Cash						Net Decrease in Cash and Restricted Cash	(35)		(37)
Cash and Restricted Cash - Beginning of Period	Cash and Restricted Cash - Beginning of Period	17,410		6,312		Cash and Restricted Cash - Beginning of Period	18,179		17,410
Cash and Restricted Cash - End of Period	Cash and Restricted Cash - End of Period	$	17,373	$	9,129	Cash and Restricted Cash - End of Period	$	18,144	$	17,373

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)	(Thousands of Dollars)	As of March 31, 2021		As of December 31, 2020		(Thousands of Dollars)	As of March 31, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	1,988	$	141	Cash	$	3,827	$	15
Receivables, Net (net of allowance for uncollectible accounts of $17,324 and $17,157 as of March 31, 2021 and December 31, 2020, respectively)		115,592		119,899
Receivables, Net (net of allowance for uncollectible accounts of $26,164 and $24,331 as of March 31, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $26,164 and $24,331 as of March 31, 2022 and December 31, 2021, respectively)	148,542		124,232
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	13,113		10,925		Accounts Receivable from Affiliated Companies	17,271		17,156
Unbilled Revenues	Unbilled Revenues	43,152		46,041		Unbilled Revenues	51,490		53,937

Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	29,125		26,829		Materials, Supplies and REC Inventory	31,963		25,930
Regulatory Assets	Regulatory Assets	107,322		115,852		Regulatory Assets	124,701		107,169
Special Deposits	Special Deposits	22,196		36,767		Special Deposits	16,557		31,390
Prepaid Property Taxes		6,403		26,257

Prepayments and Other Current Assets	Prepayments and Other Current Assets	3,113		10,788		Prepayments and Other Current Assets	8,387		22,109
Total Current Assets	Total Current Assets	342,004		393,499		Total Current Assets	402,738		381,938
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	3,412,781		3,374,270		Property, Plant and Equipment, Net	3,722,618		3,656,462
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	869,904		873,203		Regulatory Assets	654,507		679,182
Other Long-Term Assets	Other Long-Term Assets	24,412		23,733		Other Long-Term Assets	22,513		23,202
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	894,316		896,936		Total Deferred Debits and Other Assets	677,020		702,384
Total Assets	Total Assets	$	4,649,101	$	4,664,705	Total Assets	$	4,802,376	$	4,740,784

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable to Eversource Parent	Notes Payable to Eversource Parent	$	196,800	$	46,300	Notes Payable to Eversource Parent	$	196,400	$	110,600
Long-Term Debt – Current Portion		160,000		282,000

Rate Reduction Bonds – Current Portion	Rate Reduction Bonds – Current Portion	43,210		43,210		Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	Accounts Payable	101,274		132,635		Accounts Payable	157,876		166,452
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	44,206		43,397		Accounts Payable to Affiliated Companies	41,508		43,485
Regulatory Liabilities	Regulatory Liabilities	48,023		58,756		Regulatory Liabilities	106,393		120,176

Other Current Liabilities	Other Current Liabilities	53,908		58,487		Other Current Liabilities	64,356		63,005
Total Current Liabilities	Total Current Liabilities	647,421		664,785		Total Current Liabilities	609,743		546,928
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	544,495		537,627		Accumulated Deferred Income Taxes	545,593		537,978
Regulatory Liabilities	Regulatory Liabilities	386,455		383,183		Regulatory Liabilities	388,838		381,366
Accrued Pension, SERP and PBOP		177,733		184,715

Other Long-Term Liabilities	Other Long-Term Liabilities	38,071		37,874		Other Long-Term Liabilities	49,844		64,264
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	1,146,754		1,143,399		Total Deferred Credits and Other Liabilities	984,275		983,608
Long-Term Debt	Long-Term Debt	817,349		817,070		Long-Term Debt	1,164,010		1,163,833
Rate Reduction Bonds	Rate Reduction Bonds	475,307		496,912		Rate Reduction Bonds	432,097		453,702
Common Stockholder's Equity:	Common Stockholder's Equity:					Common Stockholder's Equity:
Common Stock	Common Stock	0		0		Common Stock	—		—
Capital Surplus, Paid In	Capital Surplus, Paid In	928,134		928,134		Capital Surplus, Paid In	1,088,134		1,088,134
Retained Earnings	Retained Earnings	634,494		615,018		Retained Earnings	524,142		504,556
Accumulated Other Comprehensive Loss		(358)		(613)
Accumulated Other Comprehensive (Loss)/Income						Accumulated Other Comprehensive (Loss)/Income	(25)		23
Common Stockholder's Equity	Common Stockholder's Equity	1,562,270		1,542,539		Common Stockholder's Equity	1,612,251		1,592,713
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)	0		0
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	4,649,101	$	4,664,705	Total Liabilities and Capitalization	$	4,802,376	$	4,740,784

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Operating Revenues	Operating Revenues		$	293,435	$	276,368	Operating Revenues		$	339,427	$	293,435

Operating Expenses:	Operating Expenses:						Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission		91,609		94,138		Purchased Power and Transmission		125,844		91,609
Operations and Maintenance	Operations and Maintenance		54,664		47,128		Operations and Maintenance		59,573		54,664
Depreciation	Depreciation		29,468		24,334		Depreciation		31,253		29,468
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net		18,547		20,110		Amortization of Regulatory Assets, Net		26,834		18,547
Energy Efficiency Programs	Energy Efficiency Programs		10,348		9,364		Energy Efficiency Programs		8,718		10,348
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes		22,149		19,701		Taxes Other Than Income Taxes		22,785		22,149
Total Operating Expenses	Total Operating Expenses		226,785		214,775		Total Operating Expenses		275,007		226,785
Operating Income	Operating Income		66,650		61,593		Operating Income		64,420		66,650
Interest Expense	Interest Expense		14,630		14,479		Interest Expense		13,645		14,630
Other Income, Net	Other Income, Net		4,166		3,190		Other Income, Net		7,509		4,166
Income Before Income Tax Expense	Income Before Income Tax Expense		56,186		50,304		Income Before Income Tax Expense		58,284		56,186
Income Tax Expense	Income Tax Expense		11,510		10,703		Income Tax Expense		12,698		11,510
Net Income	Net Income		$	44,676	$	39,601	Net Income		$	45,586	$	44,676

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)		2021		2020		(Thousands of Dollars)		2022		2021

Net Income	Net Income		$	44,676	$	39,601	Net Income		$	45,586	$	44,676
Other Comprehensive Income, Net of Tax:
Other Comprehensive (Loss)/Income, Net of Tax:							Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	Qualified Cash Flow Hedging Instruments		298		269		Qualified Cash Flow Hedging Instruments		—		298
Changes in Unrealized (Losses)/Gains on Marketable Securities			(43)		9
Other Comprehensive Income, Net of Tax			255		278
Changes in Unrealized Losses on Marketable Securities							Changes in Unrealized Losses on Marketable Securities		(48)		(43)
Other Comprehensive (Loss)/Income, Net of Tax							Other Comprehensive (Loss)/Income, Net of Tax		(48)		255
Comprehensive Income	Comprehensive Income		$	44,931	$	39,879	Comprehensive Income		$	45,538	$	44,931

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


		For the Three Months Ended March 31, 2021																			For the Three Months Ended March 31, 2022
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive Loss				Total Common Stockholder's Equity				Common Stock					Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	(Thousands of Dollars, Except Stock Information)	Stock	Amount								(Thousands of Dollars, Except Stock Information)	Stock								Amount
Balance as of January 1, 2021		301	$	0			$	928,134							$	615,018			$	(613)		$	1,542,539
Balance as of January 1, 2022																				Balance as of January 1, 2022	301			$	—		$	1,088,134		$	504,556		$	23		$	1,592,713
Net Income	Net Income								44,676								44,676			Net Income									45,586						45,586
Dividends on Common Stock	Dividends on Common Stock								(25,200)								(25,200)			Dividends on Common Stock									(26,000)						(26,000)

Other Comprehensive Income													255				255
Balance as of March 31, 2021		301	$	0	$	928,134			$	634,494			$	(358)			$	1,562,270
Other Comprehensive Loss																				Other Comprehensive Loss												(48)			(48)
Balance as of March 31, 2022																				Balance as of March 31, 2022	301			$	—	$	1,088,134		$	524,142		$	(25)		$	1,612,251

For the Three Months Ended March 31, 2020
Common Stock Capital
Surplus,
Paid In Retained
Earnings Accumulated
Other
Comprehensive
Loss Total
Common
Stockholder's
Equity
(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 Accounting Standards Update 2016-13 (300) (300)
Other Comprehensive Income 278 278
Balance as of March 31, 2020 301 $ 0 $ 903,134 $ 507,307 $ (1,429) $ 1,409,012


	For the Three Months Ended March 31, 2021
	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, 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

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	44,676	$	39,601	Net Income	$	45,586	$	44,676
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:					Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	Depreciation	29,468		24,334		Depreciation	31,253		29,468
Deferred Income Taxes	Deferred Income Taxes	(378)		4,167		Deferred Income Taxes	7,480		(378)
Uncollectible Expense	Uncollectible Expense	1,221		666		Uncollectible Expense	2,496		1,221
Regulatory Underrecoveries, Net	Regulatory Underrecoveries, Net	(14,645)		(22,977)		Regulatory Underrecoveries, Net	(32,186)		(14,645)
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	18,547		20,110		Amortization of Regulatory Assets, Net	26,834		18,547
Pension, SERP and PBOP Income, Net						Pension, SERP and PBOP Income, Net	(3,997)		(935)

Cost of Removal Expenditures						Cost of Removal Expenditures	(7,131)		(5,154)
Other	Other	(6,654)		(3,885)		Other	(4,631)		(565)
Changes in Current Assets and Liabilities:	Changes in Current Assets and Liabilities:					Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	Receivables and Unbilled Revenues, Net	3,223		2,843		Receivables and Unbilled Revenues, Net	(25,972)		3,223
Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	(2,296)		(3,526)		Materials, Supplies and REC Inventory	(6,033)		(2,296)
Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	9,867		6,110		Taxes Receivable/Accrued, Net	8,067		9,867
Accounts Payable	Accounts Payable	(21,025)		(18,064)		Accounts Payable	9,389		(21,025)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	12,897		9,118		Other Current Assets and Liabilities, Net	6,928		12,897
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	74,901		58,497		Net Cash Flows Provided by Operating Activities	58,083		74,901

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(68,278)		(88,694)		Investments in Property, Plant and Equipment	(107,916)		(68,278)
Other Investing Activities	Other Investing Activities	137		126		Other Investing Activities	593		137
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(68,141)		(88,568)		Net Cash Flows Used in Investing Activities	(107,323)		(68,141)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(25,200)		(22,300)		Cash Dividends on Common Stock	(26,000)		(25,200)

Retirement of Long-Term Debt						Retirement of Long-Term Debt	—		(122,000)
Repayment of Rate Reduction Bonds	Repayment of Rate Reduction Bonds	(21,605)		(21,605)		Repayment of Rate Reduction Bonds	(21,605)		(21,605)
Retirement of Long-Term Debt		(122,000)		0
Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	150,500		57,700		Increase in Notes Payable to Eversource Parent	85,800		150,500
Other Financing Activities	Other Financing Activities	(22)		(22)		Other Financing Activities	(23)		(22)
Net Cash Flows (Used in)/Provided by Financing Activities		(18,327)		13,773
Net Cash Flows Provided by/(Used in) Financing Activities						Net Cash Flows Provided by/(Used in) Financing Activities	38,172		(18,327)
Net Decrease in Cash and Restricted Cash	Net Decrease in Cash and Restricted Cash	(11,567)		(16,298)		Net Decrease in Cash and Restricted Cash	(11,068)		(11,567)
Cash and Restricted Cash - Beginning of Period	Cash and Restricted Cash - Beginning of Period	39,555		36,688		Cash and Restricted Cash - Beginning of Period	35,126		39,555
Cash and Restricted Cash - End of Period	Cash and Restricted Cash - End of Period	$	27,988	$	20,390	Cash and Restricted Cash - End of Period	$	24,058	$	27,988

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~~4.4 million electric, natural gas and water customers through 910 regulated utilities in Connecticut, Massachusetts and New Hampshire.

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

The combined notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying financial statements should be read in conjunction with the Combined Notes to Financial Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource ~~2020~~2021 Form 10-K, which was filed with the SEC on February 17, ~~2021.~~2022. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, and the results of operations, comprehensive income, common shareholders' equity and cash flows for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021. The results of operations, comprehensive income and cash flows for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 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 the operations of 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 continues to adversely affect customers, workers and the U.S. economy. We continue to operate under our pandemic response plan, which requires remote work arrangements for nearly half of our workforce and other mitigating requirements for those that are required onsite in our electric, natural gas and water operations, construction and management functions. We continue to address the impacts of the COVID-19 pandemic and how the related developments affect Eversource. We have not experienced significant impacts directly related to the pandemic that have materially affected our current operations, our workforce, or results of operations. The extent of the impact to us in the future will vary, and depend on the duration, scope and severity of the pandemic and the resulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome of future proceedings before our state regulatory commissions to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses.

Based on the status of our COVID-19 regulatory dockets, communications with our state regulatory commissions, and policies and practices in each of our jurisdictions, we believe each of our state regulatory commissions will allow us to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses, while balancing the impact on our customers’ bills 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 March 31, 2021 in light of the COVID-19 pandemic and Note 2, "Regulatory Accounting," for the amount of net incremental COVID-19 costs deferred on our balance sheet.

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

~~B. Accounting Standards~~

~~Accounting Standards Recently Adopted:~~ On ~~January 1, 2021, the Company adopted Accounting Standards Update (ASU) 2019-12,~~ ~~Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the general principles~~May 4, 2022, Eversource announced that it had initiated a strategic review of ~~current income tax guidance in ASC 740 and simplifies and improves consistency in application~~its offshore wind investment portfolio. As part of that ~~income tax guidance through clarifications~~review, Eversource will explore strategic alternatives that could result in a potential sale of all, or part, of its 50 percent interest in its offshore wind partnership with Ørsted. Eversource expects to complete this review during 2022. Eversource’s offshore wind business includes a 50 percent ownership interest in North East Offshore, which holds PPAs and ~~amendments to ASC 740. The ASU did~~contracts for the Revolution Wind, South Fork Wind and Sunrise Wind projects, as well as undeveloped offshore lease area. As of March 31, 2022 and December 31, 2021, Eversource's total equity investment balance in its offshore wind business was $1.33 billion and $1.21 billion, respectively. Eversource’s initiation of the strategic review of its offshore wind investment does not ~~have a material~~ impact on the March 31, 2022 financial statements, and at this time, Eversource cannot predict the ultimate outcome or estimate the potential impact of ~~Eversource, CL&P, NSTAR Electric and PSNH.~~such review.

B. Allowance for Uncollectible Accounts

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

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

The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including ~~the application of~~an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category. Factors in determining credit loss include historical collection, write-off experience, analysis of delinquency statistics, and management's assessment of collectability from customers, including current conditions, customer payment trends, the impact on customer bills because of energy usage trends and changes in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, reasonable forecasts, and expectations of future collectability and collection efforts. Management continuously assesses the collectability of receivables and adjusts estimates based on actual experience and future expectations based on economic ~~indicators,~~conditions, 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. Management concluded that the reserve balance as of March 31, 2022 adequately reflected the collection risk and net realizable value for its receivables.

As of March 31, 2022 and December 31, 2021, ~~management evaluated~~ the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the related economic downturn. This evaluation included an analysis of collection and customer payment trends, economic conditions, delinquency statistics, aging-based quantitative assessments, the impact on residential customer bills because of energy usage and change in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, and COVID-19 developments, including any potential federal governmental pandemic relief programs and the expansion of unemployment benefit initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment. This evaluation has shown that our operating companies have experienced an increase in aged receivables and lower cash collections from customers because of the moratorium on disconnections and the economic slowdown resulting from the COVID-19 pandemic. Based upon the evaluation performed, in the first quarter of 2021, management increased the allowance for uncollectible accounts for amountstotal amount incurred as a result of COVID-19 ~~by $15.5~~included in the allowance for uncollectible accounts was $58.5 million ~~for~~and $55.3 million at Eversource, ~~($5.6~~$20.4 million ~~for~~and $23.9 million at CL&P, ~~$3.7~~and $9.0 million ~~for~~and $9.0 million at NSTAR Electric, respectively. At our Connecticut and ~~$6.2 million at our natural gas businesses). These~~Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. ~~As of March 31, 2021, the total amount incurred~~No COVID-19 related uncollectible amounts were deferred at PSNH as a result of a July 2021 NHPUC order. Based on the status of our COVID-19 ~~included~~regulatory dockets, and policies and practices in the ~~allowance for~~jurisdictions in which we operate, we believe our state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental uncollectible ~~accounts was $47.0 million at Eversource ($8.4 million at CL&P, $14.7 million at NSTAR Electric, $2.3 million at PSNH, and $21.6 million at our natural gas businesses).~~

Management concluded that the reserve balance as of March 31, 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 accountscustomer receivable ~~collections, delinquency statistics, and analysis of aging-based quantitative assessments.~~costs associated with COVID-19.

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

The total allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The activity in the allowance for uncollectible accounts by portfolio segment as of March 31stis 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 $ 194.8 $ 164.1 $ 358.9 $ 129.1 $ 28.3 $ 157.4 $ 39.7 $ 51.9 $ 91.6 $ 17.2
Uncollectible Expense 0 16.3 16.3 0 3.8 3.8 0 3.9 3.9 1.2
Uncollectible Costs
Deferred (1)
5.4 27.1 32.5 11.9 7.5 19.4 (8.5) 8.4 (0.1) 1.2
Write-Offs (3.3) (16.7) (20.0) (2.9) (4.0) (6.9) (0.1) (7.5) (7.6) (2.5)
Recoveries Collected 0.4 3.6 4.0 0.3 1.1 1.4 0 1.5 1.5 0.2
Ending Balance $ 197.3 $ 194.4 $ 391.7 $ 138.4 $ 36.7 $ 175.1 $ 31.1 $ 58.2 $ 89.3 $ 17.3


	Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Total Allowance








Three Months Ended 2022
Beginning Balance	$	226.1	$	191.3	$	417.4	$	144.6	$	36.7	$	181.3	$	43.3	$	53.7	$	97.0	$	24.3
Uncollectible Expense	—		17.1		17.1		—		3.8		3.8		—		4.7		4.7		2.5
Uncollectible Costs Deferred (1)	0.9		14.8		15.7		(4.0)		(2.1)		(6.1)		(3.3)		5.4		2.1		1.0
Write-Offs	(2.3)		(22.0)		(24.3)		(1.1)		(0.5)		(1.6)		(0.3)		(10.6)		(10.9)		(1.8)
Recoveries Collected	0.8		5.5		6.3		0.6		2.5		3.1		—		1.9		1.9		0.2
Ending Balance	$	225.5	$	206.7	$	432.2	$	140.1	$	40.4	$	180.5	$	39.7	$	55.1	$	94.8	$	26.2












Three Months Ended 2021
Beginning Balance	$	194.8	$	164.1	$	358.9	$	129.1	$	28.3	$	157.4	$	39.7	$	51.9	$	91.6	$	17.2
Uncollectible Expense	—		16.3		16.3		—		3.8		3.8		—		3.9		3.9		1.2
Uncollectible Costs Deferred (1)	5.4		27.1		32.5		11.9		7.5		19.4		(8.5)		8.4		(0.1)		1.2
Write-Offs	(3.3)		(16.7)		(20.0)		(2.9)		(4.0)		(6.9)		(0.1)		(7.5)		(7.6)		(2.5)
Recoveries Collected	0.4		3.6		4.0		0.3		1.1		1.4		—		1.5		1.5		0.2
Ending Balance	$	197.3	$	194.4	$	391.7	$	138.4	$	36.7	$	175.1	$	31.1	$	58.2	$	89.3	$	17.3

Three Months Ended 2020
Beginning Balance $ 143.3 $ 81.5 $ 224.8 $ 80.1 $ 17.2 $ 97.3 $ 43.9 $ 31.5 $ 75.4 $ 10.5
ASU 2016-13
   Implementation Impact
   on January 1, 2020 21.6 2.2 23.8 21.3 0.9 22.2 (1.6) 0.3 (1.3) 0.3
Uncollectible Expense 0 11.4 11.4 0 3.2 3.2 0 3.7 3.7 0.7
Uncollectible Costs
   Deferred (1)
11.8 8.5 20.3 12.9 1.8 14.7 (3.4) 3.4 0 1.3
Write-Offs (4.7) (16.8) (21.5) (3.8) (3.5) (7.3) (0.4) (8.0) (8.4) (1.7)
Recoveries Collected 0.2 3.1 3.3 0.2 0.6 0.8 0 1.7 1.7 0.1
Ending Balance $ 172.2 $ 89.9 $ 262.1 $ 110.7 $ 20.2 $ 130.9 $ 38.5 $ 32.6 $ 71.1 $ 11.2

(1) ~~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 uncollectible energy supply costs and COVID-19.

D.C. Fair Value Measurements

Fair value measurement guidance is applied to derivative contracts that are not elected or designated as "normal purchases" or "normal sales" (normal) and to the marketable securities held in trusts. Fair value measurement guidance is also applied to valuations of the investments used to calculate the funded status of pension and PBOP plans, the nonrecurring fair value measurements of nonfinancial assets such as goodwill, long-lived assets, equity method investments, ~~and~~ AROs, and in the valuation of ~~the acquisition of CMA's assets in 2020.~~acquisitions. 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,~~" and Note 17, "Acquisition of Assets of Columbia Gas of Massachusetts,~~" to the financial statements.

E.D. Other Income, Net

The components of Other Income, Net on the statements of income were as follows:
For the Three Months Ended
March 31, 2021 March 31, 2020
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Pension, SERP and PBOP Non-Service
Income Components $ 20.1 $ 2.7 $ 10.1 $ 2.7 $ 12.7 $ 1.1 $ 7.9 $ 1.9
AFUDC Equity 9.2 1.7 6.2 0.6 10.6 3.9 5.0 1.5
Equity in Earnings of Unconsolidated Affiliates 3.7 0 0.1 0 4.0 0 0.1 0
Investment (Loss)/Income (0.6) 0.4 0.2 0.1 (4.3) (3.4) (1.3) (0.5)
Interest Income 1.5 0.1 0.1 0.7 0.7 0.3 0.1 0.3
Other 0.3 0 0.1 0.1 0.4 0 0.4 0
Total Other Income, Net $ 34.2 $ 4.9 $ 16.8 $ 4.2 $ 24.1 $ 1.9 $ 12.2 $ 3.2














	For the Three Months Ended
	March 31, 2022								March 31, 2021
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components	$	54.3	$	15.9	$	21.0	$	6.6	$	20.1	$	2.7	$	10.1	$	2.7
AFUDC Equity	9.9		2.8		4.9		0.4		9.2		1.7		6.2		0.6
Equity in Earnings of Unconsolidated Affiliates	0.4		—		—		—		3.7		—		0.1		—
Investment (Loss)/Income	(0.2)		(0.4)		(0.3)		0.2		(0.6)		0.4		0.2		0.1
Interest Income	6.7		1.3		3.5		0.3		1.5		0.1		0.1		0.7

Other	0.5		—		0.1		—		0.3		—		0.1		0.1
Total Other Income, Net	$	71.6	$	19.6	$	29.2	$	7.5	$	34.2	$	4.9	$	16.8	$	4.2

F.E. Other Taxes

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


		For the Three Months Ended				For the Three Months Ended
(Millions of Dollars)	(Millions of Dollars)	March 31, 2021		March 31, 2020			(Millions of Dollars)	March 31, 2022		March 31, 2021
Eversource	Eversource	$	48.6	$	43.1		Eversource	$	48.6	$	48.6
CL&P	CL&P	39.2		35.5			CL&P	37.8		39.2

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

F. Supplemental Cash Flow Information

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


(Millions of Dollars)	(Millions of Dollars)	As of March 31, 2021		As of March 31, 2020		(Millions of Dollars)	As of March 31, 2022		As of March 31, 2021
Eversource	Eversource	$	262.9	$	273.7	Eversource	$	385.6	$	262.9
CL&P	CL&P	70.9		85.0		CL&P	102.1		70.9
NSTAR Electric	NSTAR Electric	68.2		70.2		NSTAR Electric	85.8		68.2
PSNH	PSNH	23.5		37.9		PSNH	49.5		23.5

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


		As of March 31, 2021								As of December 31, 2020									As of March 31, 2022								As of December 31, 2021
(Millions of Dollars)	(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
Cash as reported on the Balance Sheets	Cash as reported on the Balance Sheets	$	34.1	$	9.3	$	0.1	$	2.0	$	106.6	$	90.8	$	0.1	$	0.1	Cash as reported on the Balance Sheets	$	46.2	$	21.6	$	0.7	$	3.8	$	66.8	$	55.8	$	0.7	$	—
Restricted cash included in:	Restricted cash included in:																	Restricted cash included in:
Special Deposits	Special Deposits	58.4		8.6		17.2		22.2		73.6		8.7		17.2		36.8		Special Deposits	73.3		8.7		17.3		16.6		78.2		18.7		17.4		31.4
Marketable Securities	Marketable Securities	38.4		0.4		0.1		0.6		41.2		0.3		0.1		0.6		Marketable Securities	26.0		0.3		0.1		0.5		31.3		0.3		0.1		0.5
Other Long-Term Assets	Other Long-Term Assets	44.7		0		0		3.2		43.6		0		0		2.1		Other Long-Term Assets	19.1		—		—		3.2		44.7		—		—		3.2
Cash and Restricted Cash as reported on the Statements of Cash Flows	Cash and Restricted Cash as reported on the Statements of Cash Flows	$	175.6	$	18.3	$	17.4	$	28.0	$	265.0	$	99.8	$	17.4	$	39.6	Cash and Restricted Cash as reported on the Statements of Cash Flows	$	164.6	$	30.6	$	18.1	$	24.1	$	221.0	$	74.8	$	18.2	$	35.1

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. The December 31, 2021 balance also included a $10 million customer assistance fund to provide bill payment assistance to certain existing non-hardship and hardship customers carrying arrearages at CL&P established under the terms of the PURA-approved October 2021 settlement agreement. Those customers were provided with $10 million of bill forgiveness in the first quarter of 2022, which represented a non-cash transaction. 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~~also 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 2020 settlement agreement. As of March 31, 2022, $20.0 million of this restricted cash was recorded as short-term in Special Deposits and $15.9 million was recorded in Other Long-Term Assets. As of December 31, 2021, this restricted cash totaled $41.5 million and was recorded in Other Long-Term Assets on the balance sheet.

2. REGULATORY ACCOUNTING

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

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

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

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


		As of March 31, 2021								As of December 31, 2020									As of March 31, 2022								As of December 31, 2021
(Millions of Dollars)	(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
Benefit Costs	Benefit Costs	$	2,733.6	$	618.5	$	674.2	$	262.3	$	2,794.2	$	632.3	$	690.0	$	267.6	Benefit Costs	$	1,452.5	$	268.0	$	386.9	$	116.5	$	1,481.0	$	272.4	$	395.5	$	118.9
Storm Costs, Net																		Storm Costs, Net	1,249.3		735.7		449.4		64.2		1,102.7		695.6		341.3		65.8
Regulatory Tracking Mechanisms																		Regulatory Tracking Mechanisms	937.7		295.2		375.0		97.0		1,050.5		333.6		376.6		85.4
Income Taxes, Net	Income Taxes, Net	751.7		459.1		111.4		17.4		747.1		458.9		110.4		15.2		Income Taxes, Net	791.2		471.8		112.8		14.5		790.7		470.5		112.6		17.5
Securitized Stranded Costs	Securitized Stranded Costs	511.3		0		0		511.3		522.1		0		0		522.1		Securitized Stranded Costs	468.1		—		—		468.1		478.9		—		—		478.9
Storm Restoration Costs, Net		789.5		529.8		184.3		75.4		765.6		515.1		186.4		64.1
Regulatory Tracker Mechanisms		856.1		284.3		360.5		87.5		850.5		246.6		332.2		95.3
Goodwill-related																		Goodwill-related	293.6		—		252.1		—		297.8		—		255.7		—
Derivative Liabilities	Derivative Liabilities	293.4		293.1		0		0		296.3		293.1		0		0		Derivative Liabilities	229.4		229.4		—		—		249.2		249.2		—		—
Goodwill-related		310.5		0		266.5		0		314.7		0		270.2		0
Asset Retirement Obligations	Asset Retirement Obligations	114.9		32.6		53.8		3.9		118.4		32.1		58.6		3.9		Asset Retirement Obligations	117.5		34.2		61.9		4.2		115.0		33.6		59.8		4.1
Other Regulatory Assets	Other Regulatory Assets	151.6		32.6		53.7		19.4		161.0		33.7		56.1		20.9		Other Regulatory Assets	162.1		28.9		35.4		14.7		150.0		29.9		37.7		15.8
Total Regulatory Assets	Total Regulatory Assets	6,512.6		2,250.0		1,704.4		977.2		6,569.9		2,211.8		1,703.9		989.1		Total Regulatory Assets	5,701.4		2,063.2		1,673.5		779.2		5,715.8		2,084.8		1,579.2		786.4
Less: Current Portion	Less: Current Portion	1,081.1		386.1		430.4		107.3		1,076.6		345.6		399.9		115.9		Less: Current Portion	1,128.1		382.1		433.7		124.7		1,129.1		371.6		444.0		107.2
Total Long-Term Regulatory Assets	Total Long-Term Regulatory Assets	$	5,431.5	$	1,863.9	$	1,274.0	$	869.9	$	5,493.3	$	1,866.2	$	1,304.0	$	873.2	Total Long-Term Regulatory Assets	$	4,573.3	$	1,681.1	$	1,239.8	$	654.5	$	4,586.7	$	1,713.2	$	1,135.2	$	679.2

Regulatory Costs in Long-Term Assets: Eversource's regulated companies had ~~$215.5~~$262.5 million (including ~~$98.0~~$113.4 million for CL&P, ~~$66.5~~$84.2 million for NSTAR Electric and ~~$3.7~~$3.4 million for PSNH) and ~~$196.9~~$252.5 million (including ~~$84.1~~$114.9 million for CL&P, ~~$69.8~~$85.0 million for NSTAR Electric and ~~$4.3~~$3.4 million for PSNH) of additional regulatory costs as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, that were included in long-term assets on the balance sheets. These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency. However, based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates.

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, these regulatory costs included ~~net~~ incremental COVID-19 related ~~costs~~non-tracked uncollectible expense deferred of ~~$33.8~~$35.0 million and ~~$24.0~~$33.0 million at Eversource, ~~respectively, of which $27.3~~$15.3 million and ~~$15.8~~$18.0 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 $6.1 million and $6.1 million at NSTAR Electric, and PSNH totaled $8.8 million, $13.6 million and $0.6 million, respectively, as of March 31, 2021, and $4.7 million, $11.9 million and $1.1 million, respectively, as of December 31, 2020, and primarily related to non-tracked uncollectible expense deferred.respectively.

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


		As of March 31, 2021								As of December 31, 2020									As of March 31, 2022								As of December 31, 2021
(Millions of Dollars)	(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
EDIT due to Tax Cuts and Jobs Act of 2017	EDIT due to Tax Cuts and Jobs Act of 2017	$	2,762.3	$	1,008.1	$	1,037.3	$	366.5	$	2,778.6	$	1,010.7	$	1,044.0	$	371.5	EDIT due to Tax Cuts and Jobs Act of 2017	$	2,665.7	$	992.7	$	973.3	$	356.1	$	2,685.2	$	996.1	$	984.5	$	359.2
Cost of Removal	Cost of Removal	644.2		105.1		372.1		16.4		624.8		98.4		363.6		12.9		Cost of Removal	667.2		108.6		388.2		19.1		649.6		100.1		381.0		17.2
Regulatory Tracking Mechanisms																		Regulatory Tracking Mechanisms	571.8		226.7		237.2		94.9		448.4		182.0		185.1		107.0
Benefit Costs	Benefit Costs	79.1		0		68.7		0		83.6		0		72.5		0		Benefit Costs	128.3		—		103.1		—		133.5		—		107.4		—
Regulatory Tracker Mechanisms		467.0		175.2		165.2		40.4		366.5		148.9		139.7		47.8
AFUDC - Transmission	AFUDC - Transmission	77.8		44.3		33.5		0		76.8		44.6		32.2		0		AFUDC - Transmission	85.1		44.0		41.1		—		81.0		43.2		37.8		—
CL&P Settlement Agreement and Storm Performance Penalty																		CL&P Settlement Agreement and Storm Performance Penalty	12.9		12.9		—		—		81.3		81.3		—		—
Other Regulatory Liabilities	Other Regulatory Liabilities	353.4		73.3		70.1		11.2		309.9		39.5		63.2		9.8		Other Regulatory Liabilities	416.2		75.0		107.4		25.1		389.7		57.1		91.5		18.2
Total Regulatory Liabilities	Total Regulatory Liabilities	4,383.8		1,406.0		1,746.9		434.5		4,240.2		1,342.1		1,715.2		442.0		Total Regulatory Liabilities	4,547.2		1,459.9		1,850.3		495.2		4,468.7		1,459.8		1,787.3		501.6
Less: Current Portion	Less: Current Portion	520.8		202.4		190.5		48.0		389.4		137.2		164.8		58.8		Less: Current Portion	652.4		251.6		279.3		106.4		602.4		266.5		228.2		120.2
Total Long-Term Regulatory Liabilities	Total Long-Term Regulatory Liabilities	$	3,863.0	$	1,203.6	$	1,556.4	$	386.5	$	3,850.8	$	1,204.9	$	1,550.4	$	383.2	Total Long-Term Regulatory Liabilities	$	3,894.8	$	1,208.3	$	1,571.0	$	388.8	$	3,866.3	$	1,193.3	$	1,559.1	$	381.4

~~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 $231 million at CL&P and $249 million at Eversource as of March 31, 2021. The estimated cost of restoration will change as additional cost information becomes available and final storm costs are deferred or capitalized. Although PURA found that CL&P’s performance in its preparation for and response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. CL&P continues to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm costs to have a material impact on the financial position or results of operations of Eversource or CL&P.

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

3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

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


Eversource	Eversource	As of March 31, 2021		As of December 31, 2020		Eversource	As of March 31, 2022		As of December 31, 2021
(Millions of Dollars)	(Millions of Dollars)					(Millions of Dollars)
Distribution - Electric	Distribution - Electric	$	16,941.8	$	16,703.2	Distribution - Electric	$	17,809.0	$	17,679.1
Distribution - Natural Gas	Distribution - Natural Gas	6,158.4		6,111.2		Distribution - Natural Gas	6,713.7		6,694.8
Transmission - Electric	Transmission - Electric	12,099.4		11,954.0		Transmission - Electric	13,011.0		12,882.4
Distribution - Water	Distribution - Water	1,749.0		1,743.1		Distribution - Water	1,924.9		1,900.9
Solar	Solar	200.4		201.5		Solar	200.9		200.9
Utility	Utility	37,149.0		36,713.0		Utility	39,659.5		39,358.1
Other (1)	Other (1)	1,365.2		1,269.0		Other (1)	1,509.6		1,469.5
Property, Plant and Equipment, Gross	Property, Plant and Equipment, Gross	38,514.2		37,982.0		Property, Plant and Equipment, Gross	41,169.1		40,827.6
Less: Accumulated Depreciation	Less: Accumulated Depreciation					Less: Accumulated Depreciation
Utility	Utility	(8,628.0)		(8,476.3)		Utility	(8,976.2)		(8,885.2)
Other	Other	(499.0)		(477.6)		Other	(609.8)		(580.1)
Total Accumulated Depreciation	Total Accumulated Depreciation	(9,127.0)		(8,953.9)		Total Accumulated Depreciation	(9,586.0)		(9,465.3)
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	29,387.2		29,028.1		Property, Plant and Equipment, Net	31,583.1		31,362.3
Construction Work in Progress	Construction Work in Progress	1,878.6		1,854.4		Construction Work in Progress	2,269.5		2,015.4
Total Property, Plant and Equipment, Net	Total Property, Plant and Equipment, Net	$	31,265.8	$	30,882.5	Total Property, Plant and Equipment, Net	$	33,852.6	$	33,377.7


		As of March 31, 2021						As of December 31, 2020							As of March 31, 2022						As of December 31, 2021
(Millions of Dollars)	(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Distribution - Electric	Distribution - Electric	$	6,919.2	$	7,640.4	$	2,422.5	$	6,820.7	$	7,544.4	$	2,378.4	Distribution - Electric	$	7,188.9	$	8,151.1	$	2,509.3	$	7,117.6	$	8,105.5	$	2,496.2
Transmission - Electric	Transmission - Electric	5,561.0		4,782.9		1,757.2		5,512.0		4,701.3		1,742.4		Transmission - Electric	5,912.5		5,137.1		1,963.1		5,859.0		5,090.5		1,934.6
Solar	Solar	0		200.4		0		0		201.5		0		Solar	—		200.9		—		—		200.9		—
Property, Plant and Equipment, Gross	Property, Plant and Equipment, Gross	12,480.2		12,623.7		4,179.7		12,332.7		12,447.2		4,120.8		Property, Plant and Equipment, Gross	13,101.4		13,489.1		4,472.4		12,976.6		13,396.9		4,430.8
Less: Accumulated Depreciation	Less: Accumulated Depreciation	(2,523.8)		(3,130.9)		(862.7)		(2,475.4)		(3,074.1)		(848.9)		Less: Accumulated Depreciation	(2,592.6)		(3,271.8)		(912.8)		(2,572.1)		(3,227.3)		(908.4)
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	9,956.4		9,492.8		3,317.0		9,857.3		9,373.1		3,271.9		Property, Plant and Equipment, Net	10,508.8		10,217.3		3,559.6		10,404.5		10,169.6		3,522.4
Construction Work in Progress	Construction Work in Progress	388.4		759.5		95.8		377.3		750.0		102.4		Construction Work in Progress	432.2		791.6		163.0		399.0		707.0		134.1
Total Property, Plant and Equipment, Net	Total Property, Plant and Equipment, Net	$	10,344.8	$	10,252.3	$	3,412.8	$	10,234.6	$	10,123.1	$	3,374.3	Total Property, Plant and Equipment, Net	$	10,941.0	$	11,008.9	$	3,722.6	$	10,803.5	$	10,876.6	$	3,656.5

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

4. DERIVATIVE INSTRUMENTS

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

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

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

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

As of March 31, 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 $ 13.9 $ (0.4) $ 13.5 $ 13.7 $ (0.4) $ 13.3
Long-Term Derivative Assets:
CL&P Level 3 58.5 (1.8) 56.7 58.7 (1.8) 56.9
Current Derivative Liabilities:
CL&P Level 3 (69.7) 0 (69.7) (68.8) 0 (68.8)
Other Level 2 (0.3) 0 (0.3) (3.3) 0.1 (3.2)
Long-Term Derivative Liabilities:
CL&P Level 3 (293.6) 0 (293.6) (294.5) 0 (294.5)


		As of March 31, 2022						As of December 31, 2021
CL&P (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	Level 3	$	14.8	$	(0.4)	$	14.4	$	14.7	$	(1.0)	$	13.7
Long-Term Derivative Assets	Level 3	41.4		(1.3)		40.1		46.9		(0.9)		46.0
Current Derivative Liabilities	Level 3	(74.4)		—		(74.4)		(73.5)		—		(73.5)
Long-Term Derivative Liabilities	Level 3	(209.5)		—		(209.5)		(235.4)		—		(235.4)

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

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

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management: As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined capacities of these contracts as of both March 31, ~~2021~~2022 and December 31, ~~2020~~2021 were 675 MW. The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets.

As of March 31, 2021 and December 31, 2020, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of 1.2 million and 8.9 million MMBtu of natural gas, respectively.

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, there were gains of $6.2 million and losses of $11.1 ~~million and $18.0~~ million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts.

Fair Value Measurements of Derivative Instruments

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

The fair value of derivative contracts classified as Level 3 utilizes both significant observable and 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. Significant observable inputs for valuations of these contracts include energy-related product prices in future years for which quoted prices in an active market exist. 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. Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy-related products, and accounting requirements.

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:~~derivative contracts classified as Level 3:

As of March 31, 2021 As of December 31, 2020
CL&P Range
Weighted Average (1)
Period Covered Range
Weighted Average (1)
Period Covered
Capacity Prices $2.59 $ 2.59 per kW-Month 2025 - 2026 $ 4.30 — $5.30 $ 4.63 per kW-Month 2024 - 2026
Forward Reserve Prices $ 0.54 — $0.90 $ 0.72 per kW-Month 2021 - 2024 $ 0.54 — $0.90 $ 0.72 per kW-Month 2021 - 2024

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


	As of March 31, 2022								As of December 31, 2021
CL&P	Range				Average			Period Covered	Range				Average			Period Covered
Forward Reserve Prices	$	0.50	—	$1.15	$	0.82	per kW-Month	2022 - 2024	$	0.50	—	$1.15	$	0.82	per kW-Month	2022 - 2024

Exit price premiums of ~~6.6~~4.5 percent through ~~10.9~~8.8 percent, or a weighted average of ~~9.8~~7.7 percent, are also Level 3 significant unobservable inputs 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.

As of December 31, 2021, Level 3 unobservable inputs also utilized in the valuation of CL&P’s capacity-related contracts included capacity prices of $2.61 per kW-Month over the period 2025 through 2026. As of March 31, 2022, these capacity price inputs are now observable.

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

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


CL&P	CL&P	For the Three Months Ended March 31,				CL&P	For the Three Months Ended March 31,
(Millions of Dollars)	(Millions of Dollars)	2021		2020		(Millions of Dollars)		2022		2021
Derivatives, Net:	Derivatives, Net:					Derivatives, Net:
Fair Value as of Beginning of Period	Fair Value as of Beginning of Period	$	(293.1)	$	(329.2)	Fair Value as of Beginning of Period		$	(249.2)	$	(293.1)
Net Realized/Unrealized Losses Included in Regulatory Assets		(12.5)		(16.4)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets						Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets		6.2		(12.5)
Settlements	Settlements	12.5		11.8		Settlements		13.6		12.5
Fair Value as of End of Period	Fair Value as of End of Period	$	(293.1)	$	(333.8)	Fair Value as of End of Period		$	(229.4)	$	(293.1)

5. MARKETABLE SECURITIES

Eversource holds marketable securities that are primarily used to fund certain non-qualified executive benefits. The trusts that hold these marketable securities are not subject to regulatory oversight by state or federal agencies. Eversource’s marketable securities also include CYAPC and YAEC ~~maintain~~ legally restricted trusts that each ~~of which holds marketable~~hold equity and available-for-sale debt securities to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities. Equity and available-for-sale debt marketable securities are recorded at fair value, with the current portion recorded in Prepayments and Other Current Assets and the long-term portion recorded in Marketable Securities on the balance sheets.

Equity Securities: Unrealized gains and losses on equity securities held in Eversource's non-qualified executive benefit trust are recorded in Other Income, Net on the statements of income. The fair value of these equity securities as of March 31, ~~2021~~2022 and December 31, ~~2020~~2021 was ~~$39.2~~$31.5 million and ~~$40.9~~$40.2 million, respectively. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, there were unrealized losses of $4.4 million and unrealized gains of $1.1 million ~~and unrealized losses of $9.1 million, respectively,~~ recorded in Other Income, Net related to these equity ~~securities.~~securities, 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 ~~$203.3~~$195.5 million and ~~$205.1~~$214.0 million as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, 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~~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.~~securities:


		As of March 31, 2021								As of December 31, 2020									As of March 31, 2022								As of December 31, 2021
Eversource (Millions of Dollars)	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		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	Debt Securities	$	214.3	$	5.4	$	(0.4)	$	219.3	$	213.1	$	11.2	$	(0.1)	$	224.2	Debt Securities	$	211.4	$	0.5	$	(3.6)	$	208.3	$	214.5	$	5.1	$	(0.2)	$	219.4

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of ~~$186.9~~$183.4 million and ~~$192.5~~$189.9 million as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, 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 months ended March 31, ~~2021~~2022 and ~~2020,~~2021, and no allowance for credit losses as of March 31, ~~2021.~~2022. Factors considered in determining whether a credit loss exists include adverse conditions specifically affecting the issuer, the payment history, ratings and rating changes of the security, and the severity of the impairment. For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated. Debt securities included in Eversource's non-qualified benefit trust portfolio are investment-grade bonds with a lower default risk based on their credit quality.

As of March 31, ~~2021,~~2022, 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)
$ 40.4 $ 40.4
One to five years 60.6 62.3
Six to ten years 52.4 53.3
Greater than ten years 60.9 63.3
Total Debt Securities $ 214.3 $ 219.3


Eversource (Millions of Dollars)	Amortized Cost		Fair Value
Less than one year (1)	$	27.0	$	27.0
One to five years	61.9		61.6
Six to ten years	36.3		35.5
Greater than ten years	86.2		84.2
Total Debt Securities	$	211.4	$	208.3

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

Realized Gains and Losses: Realized gains and losses are recorded in Other Income, Net for Eversource's benefit trust and are offset in ~~Other Long-Term Liabilities~~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)	Eversource (Millions of Dollars)	As of March 31, 2021		As of December 31, 2020		Eversource (Millions of Dollars)	As of March 31, 2022		As of December 31, 2021
Level 1:	Level 1:					Level 1:
Mutual Funds and Equities	Mutual Funds and Equities	$	242.5	$	246.0	Mutual Funds and Equities	$	227.0	$	254.2
Money Market Funds	Money Market Funds	38.4		41.2		Money Market Funds	26.0		31.3
Total Level 1	Total Level 1	$	280.9	$	287.2	Total Level 1	$	253.0	$	285.5
Level 2:	Level 2:					Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	U.S. Government Issued Debt Securities (Agency and Treasury)	$	93.9	$	72.9	U.S. Government Issued Debt Securities (Agency and Treasury)	$	80.0	$	81.3
Corporate Debt Securities	Corporate Debt Securities	58.5		63.8		Corporate Debt Securities	62.5		65.3
Asset-Backed Debt Securities	Asset-Backed Debt Securities	10.9		11.9		Asset-Backed Debt Securities	11.6		12.6
Municipal Bonds	Municipal Bonds	6.8		24.0		Municipal Bonds	11.7		12.3
Other Fixed Income Securities	Other Fixed Income Securities	10.8		10.4		Other Fixed Income Securities	16.5		16.6
Total Level 2	Total Level 2	$	180.9	$	183.0	Total Level 2	$	182.3	$	188.1
Total Marketable Securities	Total Marketable Securities	$	461.8	$	470.2	Total Marketable Securities	$	435.3	$	473.6

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

6. SHORT-TERM AND LONG-TERM DEBT

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year ~~$1.45~~$2.00 billion revolving credit facility, which terminates on ~~December 6, 2024. Eversource parent and EGMA have a short-term $550 million~~October 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							Borrowings Outstanding as of								Available Borrowing Capacity as of								Weighted-Average Interest Rate as of
		March 31, 2021		December 31, 2020			March 31, 2021	December 31, 2020			March 31, 2021				December 31, 2020			March 31, 2022				December 31, 2021				March 31, 2022				December 31, 2021				March 31, 2022				December 31, 2021
(Millions of Dollars)	(Millions of Dollars)									(Millions of Dollars)
Eversource Parent Commercial Paper Program	Eversource Parent Commercial Paper Program	$	1,475.7		$	1,054.3		$	524.3				$	945.7						0.23	%			0.25	%	Eversource Parent Commercial Paper Program		$	1,393.8			$	1,343.0			$	606.2			$	657.0	0.93	%	0.31	%
NSTAR Electric Commercial Paper Program	NSTAR Electric Commercial Paper Program	443.5		195.0			206.5	455.0			0.13	%			0.16	%	NSTAR Electric Commercial Paper Program		275.0				162.5				375.0				487.5				0.43		%		0.14		%

There were 0no borrowings outstanding on the revolving credit facilities as of March 31, ~~2021~~2022 or December 31, ~~2020.~~2021.

~~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 March 31, ~~2021.~~2022.

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 Aquarion Water Company of Connecticut long-term debt issuance in April 2021, $40.0 million of the current portion of long-term debt and $46.8 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of March 31, 2021.

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

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, ~~2021, there were intercompany loans from Eversource parent to CL&P of $32.1 million, to PSNH of $196.8 million, and to a subsidiary of NSTAR Electric of $22.5 million. As of December 31, 2020,~~2022, there were intercompany loans from Eversource parent to PSNH of ~~$46.3~~$196.4 million and to a subsidiary of NSTAR Electric of ~~$21.3~~$4.0 million. As of December��31, 2021, there were intercompany loans from Eversource parent to PSNH of $110.6 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.

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

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

(Millions of Dollars)

Issuance/(Repayment)

Issue Date or Repayment Date

Maturity Date

Use of Proceeds for Issuance/
Repayment Information

~~PSNH:~~

~~4.05%~~Eversource Parent 2.90% Series ~~Q First Mortgage Bonds~~V Senior Notes

~~(122.0)~~650.0

February 2022

March 2027

Repaid Series K Senior Notes at maturity and short-term debt

Eversource Parent 3.38% Series W Senior Notes

650.0

February 2022

March 2032

Repaid Series K Senior Notes at maturity and short-term debt

Eversource Parent 2.75% Series K Senior Notes

(750.0)

March ~~2021~~

~~June 2021~~

~~Paid on par call date in advance of maturity date~~

~~Other:~~

~~Eversource Parent 2.50% Series I Senior Notes~~

~~(450.0)~~

~~February 2021~~2022

March ~~2021~~2022

Paid ~~on par call date in advance of~~at maturity ~~date~~

~~Eversource Parent 2.55%~~Yankee Gas 8.48% Series ~~S Senior Notes~~B First Mortgage Bonds

~~350.0~~ (20.0)

March ~~2021~~2022

March ~~2031~~

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

~~Aquarion Water Company of Connecticut 3.31% Senior~~

~~Notes~~

~~100.0~~

~~April 2021~~

~~April 2051~~

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

~~Aquarion Water Company of Connecticut 5.50% Notes~~

~~(40.0)~~

~~April 2021~~

~~April 2021~~2022

Paid at maturity

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

7. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

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

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

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


(Millions of Dollars)	(Millions of Dollars)					(Millions of Dollars)
Balance Sheet:		As of March 31, 2021		As of December 31, 2020
PSNH Balance Sheets:						PSNH Balance Sheets:	As of March 31, 2022		As of December 31, 2021
Restricted Cash - Current Portion (included in Current Assets)	Restricted Cash - Current Portion (included in Current Assets)	$	21.9	$	36.8	Restricted Cash - Current Portion (included in Current Assets)	$	16.3	$	31.1
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	3.2		2.1		Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	3.2		3.2
Securitized Stranded Cost (included in Regulatory Assets)	Securitized Stranded Cost (included in Regulatory Assets)	511.3		522.1		Securitized Stranded Cost (included in Regulatory Assets)	468.1		478.9
Other Regulatory Liabilities (included in Regulatory Liabilities)	Other Regulatory Liabilities (included in Regulatory Liabilities)	11.5		9.1		Other Regulatory Liabilities (included in Regulatory Liabilities)	6.0		5.4
Accrued Interest (included in Other Current Liabilities)	Accrued Interest (included in Other Current Liabilities)	3.1		8.0		Accrued Interest (included in Other Current Liabilities)	2.9		7.5
Rate Reduction Bonds - Current Portion	Rate Reduction Bonds - Current Portion	43.2		43.2		Rate Reduction Bonds - Current Portion	43.2		43.2
Rate Reduction Bonds - Long-Term Portion	Rate Reduction Bonds - Long-Term Portion	475.3		496.9		Rate Reduction Bonds - Long-Term Portion	432.1		453.7


(Millions of Dollars) Income Statement:		For the Three Months Ended
		March 31, 2021		March 31, 2020
(Millions of Dollars) PSNH Income Statements:						(Millions of Dollars) PSNH Income Statements:	For the Three Months Ended
								March 31, 2022		March 31, 2021
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	$	10.8	$	10.8	Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)		$	10.8	$	10.8
Interest Expense on RRB Principal (included in Interest Expense)	Interest Expense on RRB Principal (included in Interest Expense)	4.7		5.0		Interest Expense on RRB Principal (included in Interest Expense)		4.4		4.7

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~~assets/(liabilities) for future recovery or refund, 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~~expense/(income) 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									Pension and SERP								PBOP
		For the Three Months Ended March 31, 2021								For the Three Months Ended March 31, 2021									For the Three Months Ended March 31, 2022								For the Three Months Ended March 31, 2022
(Millions of Dollars)	(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
Service Cost	Service Cost	$	21.3	$	6.3	$	4.0	$	2.2	$	3.5	$	0.6	$	0.6	$	0.3	Service Cost	$	17.7	$	4.5	$	3.6	$	1.8	$	2.8	$	0.5	$	0.5	$	0.2
Interest Cost	Interest Cost	32.6		7.3		6.7		3.6		4.4		0.8		1.1		0.5		Interest Cost	38.6		7.8		8.1		4.2		5.0		0.9		1.3		0.5
Expected Return on Plan Assets	Expected Return on Plan Assets	(108.9)		(21.6)		(26.9)		(11.9)		(19.7)		(2.6)		(9.3)		(1.5)		Expected Return on Plan Assets	(131.7)		(26.6)		(32.0)		(14.1)		(22.4)		(2.8)		(10.6)		(1.6)
Actuarial Loss		61.6		13.0		15.5		4.9		2.6		0.4		0.6		0.3
Actuarial Losses, net																		Actuarial Losses, net	30.7		4.2		8.5		2.2		—		—		—		—
Prior Service Cost/(Credit)	Prior Service Cost/(Credit)	0.3		0		0.1		0		(5.3)		0.2		(4.2)		0.1		Prior Service Cost/(Credit)	0.4		—		0.1		—		(5.4)		0.2		(4.3)		0.1
Total Net Periodic Benefit Expense/(Income)		$	6.9	$	5.0	$	(0.6)	$	(1.2)	$	(14.5)	$	(0.6)	$	(11.2)	$	(0.3)
Intercompany Allocations		N/A		$	1.3	$	1.5	$	0.5	N/A		$	(0.3)	$	(0.4)	$	(0.1)
Total Net Periodic Benefit Plan Income																		Total Net Periodic Benefit Plan Income	$	(44.3)	$	(10.1)	$	(11.7)	$	(5.9)	$	(20.0)	$	(1.2)	$	(13.1)	$	(0.8)
Intercompany Income Allocations																		Intercompany Income Allocations	N/A		$	(3.8)	$	(2.9)	$	(0.8)	N/A		$	(0.9)	$	(0.9)	$	(0.3)

Pension and SERP PBOP
For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2020
(Millions of Dollars) Eversource CL&P NSTAR
Electric PSNH Eversource CL&P NSTAR
Electric PSNH
Service Cost $ 19.6 $ 5.7 $ 3.8 $ 2.2 $ 2.6 $ 0.5 $ 0.6 $ 0.2
Interest Cost 44.3 9.5 9.6 4.9 6.1 1.2 1.7 0.6
Expected Return on Plan Assets (100.3) (20.0) (25.8) (11.3) (18.1) (2.4) (8.5) (1.4)
Actuarial Loss 49.3 10.0 13.3 4.1 2.1 0.4 0.7 0.1
Prior Service Cost/(Credit) 0.3 0 0.1 0 (5.4) 0.2 (4.2) 0.1
Total Net Periodic Benefit Expense/(Income) $ 13.2 $ 5.2 $ 1.0 $ (0.1) $ (12.7) $ (0.1) $ (9.7) $ (0.4)
Intercompany Allocations N/A $ 1.9 $ 1.9 $ 0.6 N/A $ (0.4) $ (0.4) $ (0.2)


	Pension and SERP								PBOP
	For the Three Months Ended March 31, 2021								For the Three Months Ended March 31, 2021
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	21.3	$	6.3	$	4.0	$	2.2	$	3.5	$	0.6	$	0.6	$	0.3
Interest Cost	32.6		7.3		6.7		3.6		4.4		0.8		1.1		0.5
Expected Return on Plan Assets	(108.9)		(21.6)		(26.9)		(11.9)		(19.7)		(2.6)		(9.3)		(1.5)
Actuarial Loss	61.6		13.0		15.5		4.9		2.6		0.4		0.6		0.3
Prior Service Cost/(Credit)	0.3		—		0.1		—		(5.3)		0.2		(4.2)		0.1
Total Net Periodic Benefit Plan Expense/(Income)	$	6.9	$	5.0	$	(0.6)	$	(1.2)	$	(14.5)	$	(0.6)	$	(11.2)	$	(0.3)
Intercompany Expense/(Income) Allocations	N/A		$	1.3	$	1.5	$	0.5	N/A		$	(0.3)	$	(0.4)	$	(0.1)

Eversource Contributions: Based on the current status of the Pension Plans and federal pension funding requirements, there is no minimum funding requirement for our Pension Plans for 2022. Eversource currently expects to make contributions ~~of $180~~between $100 million to ~~the Pension Plans~~$175 million in ~~2021,~~2022, most of which ~~$99 million and $30 million~~ will be contributed by ~~CL&P~~Eversource Service, however the planned contribution is discretionary and ~~NSTAR Electric, respectively.~~subject to change. Eversource currently estimates contributing $2.4 million to the PBOP Plans in 2022.

9. COMMITMENTS AND CONTINGENCIES

A. Environmental Matters

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

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


		As of March 31, 2021			As of December 31, 2020				As of March 31, 2022			As of December 31, 2021
		Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)			Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	Eversource	62	$	100.0	63	$	102.4	Eversource	61	$	117.8	61	$	115.4
CL&P	CL&P	14	11.1		15	12.3		CL&P	14	14.3		14	13.9
NSTAR Electric	NSTAR Electric	12	4.2		12	4.7		NSTAR Electric	11	3.2		11	3.3
PSNH	PSNH	9	7.0		9	7.1		PSNH	9	6.4		9	6.3

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 ~~$91.5~~$108.3 million and ~~$92.2~~$105.6 million as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, and related primarily to the natural gas business segment.

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

B. Long-Term Contractual Arrangements

The following is an update to the current status of long-term contractual arrangements set forth in Note 13B of the Eversource ~~2020~~2021 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	NSTAR Electric															NSTAR Electric
(Millions of Dollars)	(Millions of Dollars)	2021		2022		2023		2024		2025		Thereafter		Total		(Millions of Dollars)	2022		2023		2024		2025		2026		Thereafter		Total
Renewable Energy	Renewable Energy	$	72.7	$	100.0	$	227.4	$	338.3	$	345.2	$	6,516.1	$	7,599.7	Renewable Energy	$	75.6	$	78.3	$	269.4	$	315.8	$	322.1	$	5,812.2	$	6,873.4

The table has been updated to include long-term commitments of NSTAR Electric pertaining to the Vineyard Wind LLC contract awarded under the Massachusetts Clean Energy ~~83D contract,~~83C procurement solicitation. NSTAR Electric, along with other Massachusetts distribution companies, entered into 20-year contracts for ~~which construction has~~this 800 megawatt offshore wind project. Construction on the Vineyard Wind project commenced in ~~2021.~~2022. Estimated costs under this contract are expected to begin in ~~2023~~2024 and range between ~~$150~~$240 million and ~~$415~~$375 million per year ~~under a~~under NSTAR Electric’s 20-year contract, totaling approximately ~~$6.7~~$6.0 billion.

C. Guarantees and Indemnifications

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

Guarantees issued on behalf of unconsolidated entities, including equity method offshore wind investments, for which Eversource parent is the guarantor, are recorded at fair value as a liability on the balance sheet at the inception of the guarantee. Eversource regularly reviews performance risk under these guarantee arrangements, and in the event it becomes probable that Eversource parent will be required to perform under the guarantee, the amount of probable payment will be recorded. The fair value of guarantees issued on behalf of unconsolidated entities are recorded within Other Long-Term Liabilities on the balance sheet, and ~~was $0.5~~were $7.0 million and $7.3 million as of March 31, ~~2021.~~

2022 and December 31, 2021, respectively.

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external ~~parties as of March 31, 2021:~~parties:

As of March 31, 2022

Company (Obligor)

Description

Maximum Exposure
(in millions)

Expiration Dates

Company (Obligor)

Description

Maximum Exposure
(in millions)

Expiration Dates

North East Offshore LLC

Construction-related purchase agreements with third-party contractors (1)

29.3

(1)

North East Offshore LLC

Construction-related purchase agreements with third-party contractors (1)

936.3

(1)

Sunrise Wind LLC

Construction-related purchase agreements with third-party contractors (2)

330.6

2026

Revolution Wind, LLC

Construction-related purchase agreements with third-party contractors (3)

254.7

2024 - 2027

South Fork Wind, LLC

Construction-related purchase agreements with third-party contractors (4)

165.3

2023 - 2026

Eversource Investment LLC

Funding and indemnification obligations of North East Offshore LLC (2)

(2)

Eversource Investment LLC

Funding and indemnification obligations of North East Offshore LLC (5)

107.8

(5)

South Fork Wind, LLC

Power Purchase Agreement Security (6)

7.1

(6)

Sunrise Wind LLC

OREC capacity production (3)

2.2

(3)

Sunrise Wind LLC

OREC capacity production (7)

2.2

(7)

Bay State Wind LLC

Real estate purchase

2.5

2022

South Fork Wind, LLC

Transmission interconnection

1.7

—

South Fork Wind, LLC

Transmission interconnection

1.2

—

Bay State Wind LLC

Real estate purchase

2.5

2021

Eversource Investment LLC

Letters of Credit (8)

4.3

—

Various

Surety bonds (4)

57.3

2021 - 2023

Various

Surety bonds (9)

35.0

2022 - 2023

Rocky River Realty Company and
Eversource Service

Lease payments for real estate

4.8

2024

Eversource Service

Lease payments for real estate

0.7

2024

(1) Eversource parent issued guarantees on behalf of its 50 percent-owned affiliate, North East Offshore LLC (NEO), under which Eversource parent agreed to guarantee 50 percent of NEO’s performance of obligations under certain purchase agreements with third-party contactors, in an aggregate amount not to exceed $1.3 billion with an expiration date in 2025. Eversource parent also issued a separate guarantee to Ørsted on behalf of NEO, under which Eversource parent agreed to guarantee 50 percent of NEO’s payment obligations under certain offshore wind project construction-related agreements with Ørsted in an aggregate amount not to exceed $62.5 ~~million.~~million and expiring upon full performance of the guaranteed obligation. Any amounts paid under this guarantee to Ørsted will count toward, but not increase, the maximum amount of the Funding Guarantee described in Note 2,5, below. The guarantee expires upon the full performance of the guaranteed obligations.

(2) 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 2026 and (ii) full performance of the guaranteed obligations.

(3) Eversource parent issued guarantees on behalf of its 50 percent-owned affiliate, Revolution Wind, LLC, whereby Eversource parent will guarantee Revolution Wind, LLC's performance of certain obligations, in an aggregate amount not to exceed $268.5 million, in connection with construction-related purchase agreements. Eversource parent’s obligations under the guarantees expire upon the earlier of (i) dates ranging from November 2024 and November 2027 and (ii) full performance of the guaranteed obligations.

(4) Eversource parent issued 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 construction-related purchase agreements. Under these guarantees, Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations, in a total aggregate amount not to exceed $184.0 million. Eversource parent’s obligations under these guarantees expire upon the earlier of (i) dates ranging from June 2023 and August 2026 and (ii) full performance of the guaranteed obligations.

(5) 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~~operating agreement of NEO, in an amount not to exceed $910 million. The guaranteed obligations include payment of EI's funding obligations during the construction phase of NEO’s underlying offshore wind projects and indemnification obligations associated with third party credit support for its investment in NEO. Eversource parent’s obligations under the Funding Guarantee expire upon the full performance of the guaranteed obligations.

~~(3)~~

(6) Eversource parent issued a guarantee 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 an amount not to exceed $7.1 million, under a Power Purchase Agreement between the Long Island Power Authority and South Fork Wind, LLC (the Agreement). The guarantee expires upon the later of (i) the end of the Agreement term and (ii) full performance of the guarantee obligations.

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

~~(4)~~(8) Surety bond expiration dates reflect termination dates, the majority of which will be renewed or extended. Certain surety bonds contain credit ratings triggers that would require Eversource parent to post collateral in the event that the unsecured debt credit ratings of Eversource parent are downgraded.

~~Letter of Credit~~: On September 16, 2020, Eversource parent entered into a guarantee on behalf of EI, which holds Eversource's investments in offshore wind-related equity method investments, under which Eversource parent would guarantee EI's obligations under a letter of credit facility with a financial institution that EI may request in an aggregate amount of up to approximately $25 million. In January 2022, Eversource parent issued two letters of credit on behalf of South Fork Wind, LLC related to future decommissioning obligations of certain onshore transmission assets totaling $4.3 million.

(9) 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.

Second Quarter 2022 Guarantees: In April 2022, Eversource parent issued three additional guarantees, two on behalf of Revolution Wind, LLC and one on behalf of South Fork Wind, LLC, whereby Eversource parent will guarantee performance of construction-related purchase agreements in an aggregate amount not to exceed $160.2 million.

D. Spent Nuclear Fuel Obligations - Yankee Companies

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

Spent Nuclear Fuel Litigation:

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

DOE Phase V Damages - On March 25, 2021, each of the Yankee Companies filed a fifth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies ~~are~~filed claims seeking monetary damages totaling $120.4 million for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2017 to 2020 (DOE Phase V). The DOE Phase V trial is expected to begin in the third quarter of 2023.

E. FERC ROE Complaints

~~Four~~NaN 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~~3 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 both March 31, ~~2021~~2022 and December 31, ~~2020.~~2021. 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 both March 31, ~~2021~~2022 and December 31, ~~2020.~~2021.

On October 16, 2018, FERC issued an order on all ~~four~~4 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’~~NETOs' cases.

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

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.

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,~~remaining restoration efforts completed, at which time such litigation ~~then~~is expected to be dismissed with prejudice.

G. CL&P Regulatory Matters

CL&P Tropical Storm Isaias Response ~~Investigation~~

Investigation:In August 2020, PURA opened a docket to investigate the preparation for and response to Tropical Storm Isaias by Connecticut utilities, including CL&P. On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain ~~applicable~~ storm performance standards and was imprudent in certain instances. Specifically, PURA concluded that CL&P did not satisfy the performance standards for managing its municipal liaison program, timely removing electrical hazards from blocked roads, communicating critical information to its customers, or meeting its obligation to secure adequate external contractor and mutual aid resources in a timely manner. Based on its findings, PURA ordered CL&P to adjust its future rates in a pending or future rate proceeding to reflect a monetary penalty in the form of a downward adjustment of 90 basis points in its allowed rate of return on equity (ROE)~~. The~~, which is currently 9.25 percent. In its decision, ~~also requires CL&P to enhance and submit updated emergency response programs incorporating the changes noted within the decision for PURA’s approval by June 30, 2021.~~ PURA explained that additional monetary penalties and further enforcement orders pursuant to Connecticut statute would be considered in a separate proceeding that was initiated on May 6, 2021.

On May 6, 2021, as part of the penalty proceeding, PURA issued a notice of violation that included an assessment of $30 million, consisting of a $28.4 million civil penalty for non-compliance with 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 ~~directed~~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 ~~be returned~~$0.2 million. The $28.4 million performance penalty is currently being credited to customers on electric bills beginning on ~~August~~September 1, 2021 ~~through July 31, 2022.~~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. ~~Management has accrued~~In the ~~$30 million as the best estimate~~first quarter of 2021, the liability ~~at this time. As~~for the performance penalty of ~~March 31, 2021, the total liability~~$30 million was recorded as a current regulatory liability on CL&P’s balance sheet and as a charge to Operations and Maintenance expense on the income statement. We believe we have meritorious defenses and intend to vigorously defend CL&P’s position, but do not have a better estimate of CL&P’s ultimate liability at this time. Hearings will occur in this proceeding with a final decision currently anticipated on July 14, 2021. CL&P also intends to appeal the April 28, 2021 PURA decision.

The ~~estimated annual~~after-tax earnings impact of this charge was $0.07 per share. The penalty was subsequently reclassified from Operations and Maintenance expense to a ~~90 basis point ROE~~ reduction ~~at CL&P would be a decrease~~ of ~~approximately $31 million~~Operating Revenues in the third quarter of ~~future annual revenues and approximately $21 million~~2021 in connection with the finalization of lower annual earnings. The ROE reduction would impact the income statement prospectively, once new rates are established. We cannot estimate the timing or final impact of any potential ROE change at this time.an October 1, 2021 settlement agreement that was approved by PURA on October 27, 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					Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of March 31, 2021:
As of March 31, 2022:																		As of March 31, 2022:
Preferred Stock Not Subject to Mandatory Redemption	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	168.3	$	116.2	$	123.2	$	43.0	$	45.1	$	0	$	0	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	158.3	$	116.2	$	115.5	$	43.0	$	42.8	$	—	$	—
Long-Term Debt	Long-Term Debt	15,993.9		17,198.2		3,914.7		4,423.9		3,643.8		4,063.7		977.3		1,011.0		Long-Term Debt	18,729.6		18,562.3		4,215.7		4,392.2		3,986.3		4,094.1		1,164.0		1,086.3
Rate Reduction Bonds	Rate Reduction Bonds	518.5		568.0		0		0		0		0		518.5		568.0		Rate Reduction Bonds	475.3		492.8		—		—		—		—		475.3		492.8

As of December 31, 2020:
As of December 31, 2021:																		As of December 31, 2021:
Preferred Stock Not Subject to Mandatory Redemption	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	169.1	$	116.2	$	123.4	$	43.0	$	45.7	$	0	$	0	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	166.3	$	116.2	$	122.3	$	43.0	$	44.0	$	—	$	—
Long-Term Debt	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		Long-Term Debt	18,216.7		19,636.3		4,215.4		4,848.9		3,985.4		4,453.5		1,163.8		1,220.6
Rate Reduction Bonds	Rate Reduction Bonds	540.1		603.4		0		0		0		0		540.1		603.4		Rate Reduction Bonds	496.9		543.3		—		—		—		—		496.9		543.3

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,~~1C, "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 Three Months Ended March 31, 2021								For the Three Months Ended March 31, 2020									For the Three Months Ended March 31, 2022								For the Three Months Ended March 31, 2021
Eversource (Millions of Dollars)	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		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/(Losses) on Marketable Securities		Defined Benefit Plans		Total
Balance as of January 1st		$	(1.4)	$	1.1	$	(76.1)	$	(76.4)	$	(3.0)	$	0.7	$	(62.8)	$	(65.1)
Balance as of Beginning of Period																		Balance as of Beginning of Period	$	(0.4)	$	0.4	$	(42.3)	$	(42.3)	$	(1.4)	$	1.1	$	(76.1)	$	(76.4)

OCI Before Reclassifications	OCI Before Reclassifications	0		(0.7)		0		(0.7)		0		0.2		0		0.2		OCI Before Reclassifications	—		(0.8)		—		(0.8)		—		(0.7)		—		(0.7)
Amounts Reclassified from AOCI	Amounts Reclassified from AOCI	0.4		0		1.5		1.9		0.2		0		1.6		1.8		Amounts Reclassified from AOCI	—		—		1.5		1.5		0.4		—		1.5		1.9
Net OCI	Net OCI	0.4		(0.7)		1.5		1.2		0.2		0.2		1.6		2.0		Net OCI	—		(0.8)		1.5		0.7		0.4		(0.7)		1.5		1.2
Balance as of March 31st		$	(1.0)	$	0.4	$	(74.6)	$	(75.2)	$	(2.8)	$	0.9	$	(61.2)	$	(63.1)
Balance as of End of Period																		Balance as of End of Period	$	(0.4)	$	(0.4)	$	(40.8)	$	(41.6)	$	(1.0)	$	0.4	$	(74.6)	$	(75.2)

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

12. COMMON SHARES

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


		Shares									Shares
				Authorized as of March 31, 2021 and December 31, 2020		Issued as of									Authorized as of March 31, 2022 and December 31, 2021		Issued as of
		Par Value			March 31, 2021		December 31, 2020		Par Value							March 31, 2022		December 31, 2021
Eversource	Eversource	$	5		380,000,000		357,818,402			357,818,402		Eversource	$	5		380,000,000		357,818,402		357,818,402
CL&P	CL&P	$	10	24,500,000		6,035,205		6,035,205		CL&P	$	10			24,500,000		6,035,205		6,035,205
NSTAR Electric	NSTAR Electric	$	1	100,000,000		200		200		NSTAR Electric	$	1			100,000,000		200		200
PSNH	PSNH	$	1	100,000,000		301		301		PSNH	$	1			100,000,000		301		301

Treasury Shares: As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, there were ~~14,384,104~~12,968,130 and ~~14,864,379~~13,415,206 Eversource common shares held as treasury shares, respectively. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, there were 344,850,272 and 344,403,196 Eversource common shares outstanding, we~~re 343,434,298 and~~ ~~342,954,023,~~ respectively.

Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan. Eversource also issued treasury shares for its 2021 water business acquisition. The issuance of treasury shares represents a non-cash transaction, as the treasury shares were used to fulfill Eversource's obligations that require the issuance of common shares.

13. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest – Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of March 31, ~~2021~~2022 and December 31, ~~2020.~~2021. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to Eversource parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

14. EARNINGS PER SHARE

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect of certain share-based compensation awards as if they were converted into outstanding common shares. The dilutive effect of unvested RSU and performance share awards is calculated using the treasury stock method. RSU and performance share awards are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied. Earnings per share dilution in 2020 also included the impact of the 2019 equity forward sale agreement, which was calculated using the treasury stock method until the settlement of the forward sale agreement on March 26, 2020. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, there were 0no antidilutive share awards excluded from the computation of diluted EPS.

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


Eversource (Millions of Dollars, except share information)	Eversource (Millions of Dollars, except share information)	For the Three Months Ended			Eversource (Millions of Dollars, except share information)				For the Three Months Ended
			March 31, 2021			March 31, 2020		Eversource (Millions of Dollars, except share information)		March 31, 2022		March 31, 2021
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders		$	366.1		$	334.8			$	443.4	$	366.1
Weighted Average Common Shares Outstanding:	Weighted Average Common Shares Outstanding:							Weighted Average Common Shares Outstanding:
Basic	Basic		343,678,243			331,102,237		Basic		345,156,346		343,678,243
Dilutive Effect of:
Share-Based Compensation Awards and Other			656,446			747,233
Equity Forward Sale Agreement			0			1,087,683
Total Dilutive Effect			656,446			1,834,916
Dilutive Effect								Dilutive Effect		504,787		656,446
Diluted	Diluted		344,334,689			332,937,153		Diluted		345,661,133		344,334,689
Basic EPS	Basic EPS		$	1.07		$	1.01	Basic EPS		$	1.28	$	1.07
Diluted EPS	Diluted EPS		$	1.06		$	1.01	Diluted EPS		$	1.28	$	1.06

15. REVENUES

The following tables present operating revenues disaggregated by revenue source:


		For the Three Months Ended March 31, 2021															For the Three Months Ended March 31, 2022
Eversource (Millions of Dollars)	Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total		Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers	Revenues from Contracts with Customers															Revenues from Contracts with Customers
Retail Tariff Sales	Retail Tariff Sales															Retail Tariff Sales
Residential	Residential	$	1,066.0	$	466.3	$	0	$	27.7	$	0	$	0	$	1,560.0	Residential	$	1,186.2	$	556.8	$	—	$	28.2	$	—	$	—	$	1,771.2
Commercial	Commercial	559.9		207.6		0		13.8		0		(1.4)		779.9		Commercial	661.3		257.6		—		14.6		—		(1.1)		932.4
Industrial	Industrial	83.0		55.9		0		1.0		0		(3.5)		136.4		Industrial	89.6		68.1		—		1.1		—		(4.5)		154.3
Total Retail Tariff Sales Revenues	Total Retail Tariff Sales Revenues	1,708.9		729.8		0		42.5		0		(4.9)		2,476.3		Total Retail Tariff Sales Revenues	1,937.1		882.5		—		43.9		—		(5.6)		2,857.9
Wholesale Transmission Revenues	Wholesale Transmission Revenues	0		0		394.3		0		19.2		(321.0)		92.5		Wholesale Transmission Revenues	—		—		446.2		—		24.4		(364.7)		105.9
Wholesale Market Sales Revenues	Wholesale Market Sales Revenues	149.1		26.4		0		0.8		0		0		176.3		Wholesale Market Sales Revenues	365.5		33.5		—		0.8		—		—		399.8
Other Revenues from Contracts with Customers	Other Revenues from Contracts with Customers	18.2		1.3		3.4		1.2		323.8		(321.3)		26.6		Other Revenues from Contracts with Customers	17.7		1.0		3.8		1.9		359.1		(353.1)		30.4

Amortization of/(Reserve for) Revenues Subject to Refund (1)																Amortization of/(Reserve for) Revenues Subject to Refund (1)	58.4		—		—		(0.4)		—		—		58.0
Total Revenues from Contracts with Customers	Total Revenues from Contracts with Customers	1,876.2		757.5		397.7		44.5		343.0		(647.2)		2,771.7		Total Revenues from Contracts with Customers	2,378.7		917.0		450.0		46.2		383.5		(723.4)		3,452.0
Alternative Revenue Programs	Alternative Revenue Programs	23.0		22.8		2.7		1.8		0		2.2		52.5		Alternative Revenue Programs	4.8		10.2		(15.0)		2.2		—		13.6		15.8
Other Revenues (1)		1.1		0.2		0.2		0.1		0		0		1.6
Other Revenues (2)																Other Revenues (2)	2.8		0.4		0.2		0.1		—		—		3.5
Total Operating Revenues	Total Operating Revenues	$	1,900.3	$	780.5	$	400.6	$	46.4	$	343.0	$	(645.0)	$	2,825.8	Total Operating Revenues	$	2,386.3	$	927.6	$	435.2	$	48.5	$	383.5	$	(709.8)	$	3,471.3


		For the Three Months Ended March 31, 2020															For the Three Months Ended March 31, 2021
Eversource (Millions of Dollars)	Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total		Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers	Revenues from Contracts with Customers															Revenues from Contracts with Customers
Retail Tariff Sales	Retail Tariff Sales															Retail Tariff Sales
Residential	Residential	$	963.8	$	238.0	$	0	$	27.8	$	0	$	0	$	1,229.6	Residential	$	1,066.0	$	466.3	$	—	$	27.7	$	—	$	—	$	1,560.0
Commercial	Commercial	607.0		134.6		0		14.8		0		(1.0)		755.4		Commercial	559.9		207.6		—		13.8		—		(1.4)		779.9
Industrial	Industrial	79.8		28.3		0		1.1		0		(3.2)		106.0		Industrial	83.0		55.9		—		1.0		—		(3.5)		136.4
Total Retail Tariff Sales Revenues	Total Retail Tariff Sales Revenues	1,650.6		400.9		0		43.7		0		(4.2)		2,091.0		Total Retail Tariff Sales Revenues	1,708.9		729.8		—		42.5		—		(4.9)		2,476.3
Wholesale Transmission Revenues	Wholesale Transmission Revenues	0		0		336.3		0		17.3		(283.6)		70.0		Wholesale Transmission Revenues	—		—		394.3		—		19.2		(321.0)		92.5
Wholesale Market Sales Revenues	Wholesale Market Sales Revenues	91.0		13.2		0		0.8		0		0		105.0		Wholesale Market Sales Revenues	149.1		26.4		—		0.8		—		—		176.3
Other Revenues from Contracts with Customers	Other Revenues from Contracts with Customers	21.4		1.4		3.4		1.1		277.3		(276.2)		28.4		Other Revenues from Contracts with Customers	18.2		1.3		3.4		1.2		323.8		(321.3)		26.6

Total Revenues from Contracts with Customers	Total Revenues from Contracts with Customers	1,763.0		415.5		339.7		45.6		294.6		(564.0)		2,294.4		Total Revenues from Contracts with Customers	1,876.2		757.5		397.7		44.5		343.0		(647.2)		2,771.7
Alternative Revenue Programs	Alternative Revenue Programs	38.8		32.2		29.8		1.1		0		(27.4)		74.5		Alternative Revenue Programs	23.0		22.8		2.7		1.8		—		2.2		52.5
Other Revenues ~~(1)~~(2)	Other Revenues ~~(1)~~(2)	3.5		0.9		0.2		0.2		0		0		4.8		Other Revenues ~~(1)~~(2)	1.1		0.2		0.2		0.1		—		—		1.6
Total Operating Revenues	Total Operating Revenues	$	1,805.3	$	448.6	$	369.7	$	46.9	$	294.6	$	(591.4)	$	2,373.7	Total Operating Revenues	$	1,900.3	$	780.5	$	400.6	$	46.4	$	343.0	$	(645.0)	$	2,825.8





















	For the Three Months Ended March 31, 2022						For the Three Months Ended March 31, 2021
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	599.1	$	404.6	$	182.5	$	545.8	$	362.4	$	157.8
Commercial	242.2		331.3		88.4		214.2		268.3		77.8
Industrial	33.5		34.1		22.0		36.7		24.6		21.7
Total Retail Tariff Sales Revenues	874.8		770.0		292.9		796.7		655.3		257.3
Wholesale Transmission Revenues	209.1		165.2		71.9		189.0		147.1		58.2
Wholesale Market Sales Revenues	279.9		57.9		27.7		109.7		24.4		15.0
Other Revenues from Contracts with Customers	7.9		11.6		2.6		7.3		11.7		3.2
Amortization of Revenues Subject to Refund (1)	58.4		—		—		—		—		—
Total Revenues from Contracts with Customers	1,430.1		1,004.7		395.1		1,102.7		838.5		333.7
Alternative Revenue Programs	1.3		(8.2)		(3.3)		8.9		13.8		3.0
Other Revenues (2)	0.1		2.0		0.9		0.2		1.1		—
Eliminations	(145.7)		(135.3)		(53.3)		(124.5)		(116.4)		(43.3)
Total Operating Revenues	$	1,285.8	$	863.2	$	339.4	$	987.3	$	737.0	$	293.4

For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 545.8 $ 362.4 $ 157.8 $ 489.9 $ 331.0 $ 142.9
Commercial 214.2 268.3 77.8 226.4 301.9 79.1
Industrial 36.7 24.6 21.7 34.0 26.8 19.0
Total Retail Tariff Sales Revenues 796.7 655.3 257.3 750.3 659.7 241.0
Wholesale Transmission Revenues 189.0 147.1 58.2 151.8 134.8 49.7
Wholesale Market Sales Revenues 109.7 24.4 15.0 64.7 14.4 11.9
Other Revenues from Contracts with Customers 7.3 11.7 3.2 8.8 10.7 6.0
Total Revenues from Contracts with Customers 1,102.7 838.5 333.7 975.6 819.6 308.6
Alternative Revenue Programs 8.9 13.8 3.0 44.6 19.3 4.7
Other Revenues (1)
0.2 1.1 0 1.7 1.4 0.6
Eliminations (124.5) (116.4) (43.3) (122.2) (106.5) (37.5)
Total Operating Revenues $ 987.3 $ 737.0 $ 293.4 $ 899.7 $ 733.8 $ 276.4
(1) Amortization of Revenues Subject to Refund within the Electric Distribution segment in the first quarter of 2022 represents customer credits being distributed to CL&P’s customers on retail electric bills as a result of the October 2021 CL&P settlement agreement and the 2021 civil penalty for non-compliance with storm performance standards. Total customer credits as a result of the 2021 settlement and civil penalty were $93.4 million. The settlement amount of $65 million was refunded over a two-month billing period from December 1, 2021 to January 31, 2022 and the civil penalty of $28.4 million is being refunded over a one year billing period, which began September 1, 2021.

~~(1)~~(2) Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. Other Revenues also include lease revenues under lessor accounting guidance of $1.0 million (including $0.2 million at CL&P and $0.6 million at NSTAR Electric) and $1.6 million (including $0.2 million at CL&P and $1.1 million at NSTAR Electric) ~~and $1.1 million (including $0.2 million at CL&P and $0.7 million at NSTAR Electric)~~ for the three months ended March 31, 2022 and 2021, ~~and 2020,~~ respectively.

16. SEGMENT INFORMATION

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

The remainder of Eversource's operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of CYAPC and YAEC, 4) the results of other unregulated subsidiaries, which are not part of its core business, and 5) Eversource parent's equity ownership interests that are not consolidated, which primarily include the offshore wind business, a natural gas pipeline owned by Enbridge, Inc., and a renewable energy investment fund.

In the ordinary course of business, Yankee Gas, NSTAR Gas and EGMA purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $77.7 million annually and are classified as Purchased Power, Fuel and Transmission on the Eversource statements of income.

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

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

Eversource's segment information is as follows:


		For the Three Months Ended March 31, 2021															For the Three Months Ended March 31, 2022
Eversource (Millions of Dollars)	Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total		Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	Operating Revenues	$	1,900.3	$	780.5	$	400.6	$	46.4	$	343.0	$	(645.0)	$	2,825.8	Operating Revenues	$	2,386.3	$	927.6	$	435.2	$	48.5	$	383.5	$	(709.8)	$	3,471.3
Depreciation and Amortization	Depreciation and Amortization	(221.9)		(45.7)		(73.5)		(11.3)		(27.3)		1.0		(378.7)		Depreciation and Amortization	(351.6)		(51.9)		(81.9)		(12.3)		(30.2)		1.6		(526.3)
Other Operating Expenses	Other Operating Expenses	(1,530.5)		(535.8)		(115.4)		(25.1)		(299.5)		644.8		(1,861.5)		Other Operating Expenses	(1,845.6)		(657.3)		(129.3)		(27.1)		(331.4)		708.8		(2,281.9)
Operating Income	Operating Income	$	147.9	$	199.0	$	211.7	$	10.0	$	16.2	$	0.8	$	585.6	Operating Income	$	189.1	$	218.4	$	224.0	$	9.1	$	21.9	$	0.6	$	663.1
Interest Expense	Interest Expense	$	(53.3)	$	(13.9)	$	(32.7)	$	(7.9)	$	(41.6)	$	11.6	$	(137.8)	Interest Expense	$	(59.4)	$	(15.8)	$	(33.2)	$	(8.2)	$	(46.8)	$	10.1	$	(153.3)
Other Income, Net	Other Income, Net	20.7		3.9		5.5		1.0		424.1		(421.0)		34.2		Other Income, Net	47.6		10.1		8.9		2.2		495.9		(493.1)		71.6
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	93.2		147.6		135.4		3.6		394.9		(408.6)		366.1		Net Income Attributable to Common Shareholders	140.9		164.0		148.5		3.7		468.7		(482.4)		443.4
Cash Flows Used for Investments in Plant	Cash Flows Used for Investments in Plant	256.6		131.8		225.2		27.6		47.8		0		689.0		Cash Flows Used for Investments in Plant	280.5		127.3		266.9		27.8		62.1		—		764.6












	For the Three Months Ended March 31, 2021
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	$	1,900.3	$	780.5	$	400.6	$	46.4	$	343.0	$	(645.0)	$	2,825.8
Depreciation and Amortization	(221.9)		(45.7)		(73.5)		(11.3)		(27.3)		1.0		(378.7)
Other Operating Expenses	(1,530.5)		(535.8)		(115.4)		(25.1)		(299.5)		644.8		(1,861.5)
Operating Income	$	147.9	$	199.0	$	211.7	$	10.0	$	16.2	$	0.8	$	585.6
Interest Expense	$	(53.3)	$	(13.9)	$	(32.7)	$	(7.9)	$	(41.6)	$	11.6	$	(137.8)
Other Income, Net	20.7		3.9		5.5		1.0		424.1		(421.0)		34.2
Net Income Attributable to Common Shareholders	93.2		147.6		135.4		3.6		394.9		(408.6)		366.1
Cash Flows Used for Investments in Plant	256.6		131.8		225.2		27.6		47.8		—		689.0

For the Three Months Ended March 31, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution (1)
Electric
Transmission Water Distribution
Other (1)
Eliminations (1)
Total
Operating Revenues $ 1,805.3 $ 448.6 $ 369.7 $ 46.9 $ 294.6 $ (591.4) $ 2,373.7
Depreciation and Amortization (167.3) (19.1) (67.5) (11.4) (21.3) 0.6 (286.0)
Other Operating Expenses (1,439.6) (311.6) (106.8) (25.0) (257.0) 591.4 (1,548.6)
Operating Income $ 198.4 $ 117.9 $ 195.4 $ 10.5 $ 16.3 $ 0.6 $ 539.1
Interest Expense $ (53.1) $ (11.4) $ (30.6) $ (8.7) $ (42.7) $ 11.8 $ (134.7)
Other Income, Net 12.5 1.4 5.2 0.1 383.7 (378.8) 24.1
Net Income Attributable to Common Shareholders 130.1 85.9 126.8 2.1 356.3 (366.4) 334.8
Cash Flows Used for Investments in Plant 315.8 99.1 232.8 18.5 59.3 0 725.5

~~(1)~~ On October 9, 2020, Eversource completed the CMA asset acquisition, with Yankee Energy System, Inc. (Yankee parent) as the acquiring entity. Yankee parent is the parent company of Yankee Gas, NSTAR Gas, EGMA and Hopkinton LNG Corp. As a result of the acquisition, in the fourth quarter of 2020, our chief operating decision maker assessed the performance of the Natural Gas Distribution segment including Yankee parent. Previously, Yankee parent was presented within Other and its equity in earnings were eliminated in consolidation. Prior comparative periods were revised to conform to the current period segment presentation.

The following table summarizes Eversource's segmented total assets:

Eversource
(Millions of Dollars)
Electric
Distribution Natural Gas
Distribution Electric
Transmission Water Distribution Other Eliminations Total
As of March 31, 2021 $ 25,033.9 $ 6,576.5 $ 11,713.1 $ 2,391.0 $ 21,468.2 $ (20,664.5) $ 46,518.2
As of December 31, 2020 24,981.9 6,450.5 11,695.0 2,375.2 22,089.4 (21,492.4) 46,099.6

~~17. ACQUISITION OF ASSETS OF COLUMBIA GAS OF MASSACHUSETTS~~

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

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

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


~~(Millions of Dollars)~~
~~Current Assets~~	$	~~138~~
~~Restricted Cash~~	57
~~PP&E~~	~~1,193~~
~~Goodwill~~	49
~~Other Noncurrent Assets, excluding Goodwill~~	~~130~~
~~Other Current Liabilities~~	~~(81)~~
~~Other Noncurrent Liabilities~~	~~(317)~~
~~Cash Purchase Price~~	$	~~1,169~~


Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
As of March 31, 2022	$	25,883.2	$	7,329.7	$	12,757.8	$	2,572.1	$	23,394.3	$	(22,647.9)	$	49,289.2
As of December 31, 2021	25,411.2		7,215.9		12,377.8		2,551.1		22,674.7		(21,738.6)		48,492.1

EVERSOURCE ENERGY AND SUBSIDIARIES

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

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, as well as the Eversource ~~2020~~2021 combined Annual Report on Form 10-K. References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."

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

The only common equity securities that are publicly traded are common shares of Eversource. The earnings and EPS of each business discussed below do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in our assets and liabilities as a whole. EPS by business is a financial measure not recognized under GAAP (non-GAAP) that is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. Our earnings discussion also includes a non-GAAP financial ~~measure~~measures referencing our ~~2021 and 2020~~2022 earnings and EPS excluding certain acquisition and transition costs and ~~transition costs.~~our 2021 earnings and EPS excluding charges at CL&P related to an October 2021 settlement agreement that included credits to customers and funding of various customer assistance initiatives and a 2021 storm performance penalty imposed on CL&P by the PURA.

We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our ~~2021~~2022 and ~~2020~~2021 results without including these items. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the impacts of acquisition and transition costs, the CL&P October 2021 settlement agreement, and the 2021 storm performance penalty imposed on CL&P by the PURA are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.

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

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

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

• the negative impacts of the novel coronavirus (COVID-19) pandemic, including any new or emerging variants, on our customers, vendors, employees, regulators, and operations,

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

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

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

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

• substandard performance of third-party suppliers and service providers,

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

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

• contamination of, or disruption in, our water supplies,

• changes in levels or timing of capital expenditures,

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

• changes in accounting standards and financial reporting regulations,

• actions of rating agencies, and

• other presently unknown or unforeseen factors.

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

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

~~looking~~forward-looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's ~~2020~~2021 combined Annual Report on Form 10-K. This combined Quarterly Report on Form 10-Q and Eversource's ~~2020~~2021 combined Annual Report on Form 10-K also describe material contingencies and critical accounting policies in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Combined Notes to Financial Statements. We encourage you to review these items.

Financial Condition and Business Analysis

Executive Summary

Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and Eversource Gas Company of Massachusetts (EGMA) (natural gas utilities) and Aquarion (water utilities). Eversource is organized into the electric distribution, electric transmission, natural gas distribution, and water distribution reportable segments.

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

Earnings Overview and Future Outlook:

•We earned $443.4 million, or $1.28 per share, in the first quarter of 2022, compared with $366.1 million, or $1.06 per share, in the first quarter of 2021, compared with $334.8 million, or $1.01 per share, in the first quarter of 2020. Our results include after-tax transition and acquisition costs of $6.2 million, or $0.02 per share, in the first quarter of 2021, compared with $3.5 million, or $0.01 per share, in the first quarter of 2020. Excluding those transition and acquisition costs, we earned $372.3 million, or $1.08 per share, in the first quarter of 2021, compared with $338.3 million, or $1.02 per share, in the first quarter of 2020.2021.

•Our ~~electric distribution segment earned $93.2~~first quarter of 2022 results include after-tax acquisition and transition costs of $5.3 million, or ~~$0.27~~$0.02 per share, ~~in the~~recorded at Eversource parent. Our first quarter of 2021 ~~compared with $130.1 million, or $0.39 per share, in the first quarter of 2020. First quarter of 2021 electric distribution segment earnings~~results include an after-tax charge at CL&P of $24.1 million, or $0.07 per share, ~~at CL&P primarily for customer bill credits assessed by~~recorded within the electric distribution segment resulting from a PURA assessment as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. Our ~~electric transmission segment earned $135.4~~first quarter of 2021 results also include after-tax acquisition and transition costs of $6.2 million, or ~~$0.39~~$0.02 per share, recorded at Eversource parent. Excluding those costs, our non-GAAP earnings were $448.7 million, or $1.30 per share, in the first quarter of ~~2021,~~2022, compared with ~~$126.8~~$396.4 million, or ~~$0.38~~$1.15 per share, in the first quarter of 2020. Our natural gas distribution segment earned $147.6 million, or $0.43 per share, in the first quarter of 2021, compared with $85.9 million, or $0.26 per share, in the first quarter of 2020. Our water distribution segment earned $3.6 million, or $0.01 per share, in the first quarter of 2021, compared with $2.1 million, or $0.01 per share, in the first quarter of 2020.

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

•We reaffirmed our projection of our long-term EPS growth rate through ~~2025~~2026 from our regulated utility businesses in the upper half of the 5 to 7 percent range. We ~~now~~ estimate to earn ~~toward~~within the ~~lower end of the 2021~~2022 non-GAAP earnings guidance range of between ~~$3.81~~$4.00 per share and ~~$3.93~~$4.17 per share, which excludes the impact of acquisition and transition costs related to our October 2020 purchase of the assets of CMA. That 2021 non-GAAP earnings estimate includes the $0.07 per share charge for the penalty proceeding for CL&P’s Tropical Storm Isaias response that the PURA commenced on May 6, 2021.costs.

Liquidity:

•Cash flows provided by operating activities totaled $371.9 million in the first quarter of 2022, compared with $411.4 million in the first quarter of ~~2021, compared with $420.3 million in the first quarter of 2020.~~2021. Investments in property, plant and equipment totaled $764.6 million in the first quarter of 2022, compared with $689.0 million in the first quarter of ~~2021, compared with $725.5 million in the first quarter of 2020.~~ 2021.

•Cash totaled ~~$34.1~~$46.2 million as of March 31, ~~2021,~~2022, compared with ~~$106.6~~$66.8 million as of December 31, ~~2020.~~2021. Our available borrowing capacity under our commercial paper programs totaled ~~$730.8~~$981.2 million as of March 31, ~~2021.~~

•2022. In the first quarter of ~~2021,~~2022, we issued ~~$350 million~~$1.30 billion of new long-term debt ~~at Eversource parent~~ and we repaid ~~$572~~$770 million of long-term ~~debt, consisting of $450 million at Eversource parent and $122 million at PSNH.~~debt.

•On May ~~5, 2021,~~4, 2022, our Board of Trustees approved a common share dividend payment of ~~$0.6025~~$0.6375 per share, payable on June 30, ~~2021~~2022 to shareholders of record as of May ~~20, 2021.~~19, 2022. On February 2, 2022, our Board of Trustees approved a common share dividend payment of $0.6375 per share, paid on March 31, 2022 to shareholders of record as of March 3, 2022.

~~Business Development and Regulatory~~Strategic Items:

•On ~~April 30, 2021,~~May 4, 2022, we announced that we have initiated a strategic review of our offshore wind investment portfolio. As part of that review, we will explore strategic alternatives that could result in a potential sale of all, or part, of our 50 percent interest in our offshore wind partnership with Ørsted. We expect to complete this review during 2022. If the recommended path forward following the strategic review is a sale of all, or part, of our interest in the partnership, we expect potential proceeds from such transaction would likely be used to support our regulated investments in strengthening, modernizing and decarbonizing our regulated energy and water delivery systems. As the strategic review proceeds, we remain committed to continue providing oversight of the siting and construction of onshore elements of our South Fork Wind, Revolution Wind ~~received BOEM’s Notice of Intent to prepare an Environmental Impact Statement for the review of the Construction Operations Plan application submitted by Revolution Wind.~~and Sunrise Wind offshore wind projects.

•On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain applicable storm performance standards and was imprudent in certain instances. Based on its findings, PURA ordered CL&P to adjust its future rates, in a pending or future rate proceeding, to reflect a monetary penalty in the form of a downward adjustment of 90 basis points in its allowed rate of return on equity (ROE). On May 6, 2021, as part of a separate penalty proceeding, PURA issued a notice of violation to CL&P that included an assessment of $30 million, consisting of $28.4 million to be provided as credits on customer bills and a $1.6 million fine to be paid to the State of Connecticut’s general fund. The $30 million assessment was accrued in the first quarter of 2021 and resulted in an after-tax charge of $0.07 per share. We believe we have meritorious defenses and intend to vigorously defend CL&P’s position, but do not have a better estimate of CL&P’s ultimate liability at this time.

•South Fork Wind received all required approvals to start construction and the project entered the construction phase in early 2022. Site preparation and onshore activities for the project’s underground onshore transmission line and construction of the onshore interconnection facility located in East Hampton, New York are underway.

Earnings Overview

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


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
			2021	2020										2022	2021
(Millions of Dollars, Except Per Share Amounts)	(Millions of Dollars, Except Per Share Amounts)			Amount		Per Share			Amount		Per Share		(Millions of Dollars, Except Per Share Amounts)			Amount		Per Share		Amount		Per Share
Net Income Attributable to Common Shareholders (GAAP)	Net Income Attributable to Common Shareholders (GAAP)			$	366.1	$	1.06		$	334.8	$	1.01	Net Income Attributable to Common Shareholders (GAAP)			$	443.4	$	1.28	$	366.1	$	1.06

Regulated Companies (1)				$	379.8	$	1.10		$	344.9	$	1.04
Eversource Parent and Other Companies (non-GAAP) (1)				(7.5)		(0.02)			(6.6)		(0.02)
Regulated Companies (Non-GAAP)													Regulated Companies (Non-GAAP)			$	457.1	$	1.32	$	403.9	$	1.17
Eversource Parent and Other Companies (Non-GAAP)													Eversource Parent and Other Companies (Non-GAAP)			(8.4)		(0.02)		(7.5)		(0.02)
Non-GAAP Earnings	Non-GAAP Earnings			$	372.3	$	1.08		$	338.3	$	1.02	Non-GAAP Earnings			$	448.7	$	1.30	$	396.4	$	1.15
Transition and Acquisition Costs (after-tax) (2)				(6.2)		(0.02)			(3.5)		(0.01)
CL&P Storm Performance Penalty (after-tax) (1)													CL&P Storm Performance Penalty (after-tax) (1)			—		—		(24.1)		(0.07)
Acquisition and Transition Costs (after-tax) (2)													Acquisition and Transition Costs (after-tax) (2)			(5.3)		(0.02)		(6.2)		(0.02)
Net Income Attributable to Common Shareholders (GAAP)	Net Income Attributable to Common Shareholders (GAAP)			$	366.1	$	1.06		$	334.8	$	1.01	Net Income Attributable to Common Shareholders (GAAP)			$	443.4	$	1.28	$	366.1	$	1.06

(1) The ~~2020 amounts were revised~~2021 after-tax cost relates to a charge recorded at CL&P as a result of the April 28, 2021 PURA decision and May 6, 2021 PURA notice of violation, which included a $28.4 million penalty for storm performance results and is currently being provided as credits to customer bills and a $1.6 million fine to the State of Connecticut’s general fund. The $1.6 million fine was subsequently reduced to $0.2 million in PURA’s July 14, 2021 decision. As a result of the October 1, 2021 CL&P settlement agreement, CL&P agreed to withdraw its pending appeals related to the storm performance penalty imposed in PURA’s April 28, 2021 and July 14, 2021 decisions. Management views the CL&P storm performance penalty and the subsequent October 1, 2021 settlement agreement impacts collectively, and as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. As a result, beginning in the third quarter of 2021, the storm performance penalty was presented as a non-GAAP adjustment to net income. The first quarter of 2021 non-GAAP reconciliation has been recast to conform to ~~the current period segment~~this presentation.

(2)The ~~2020 acquisition~~after-tax costs are ~~associated with~~for the continuing transition of systems as a result of our purchase of the assets of CMA on October 9, ~~2020. The 2021 costs are for the transition of systems as a result of~~2020 and integrating the CMA ~~acquisition and~~assets onto Eversource’s systems. The after-tax costs also include costs associated with our ~~pending~~ water business ~~acquisition.~~acquisitions.

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


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
			2021	2020										2022	2021
(Millions of Dollars, Except Per Share Amounts)	(Millions of Dollars, Except Per Share Amounts)			Amount		Per Share			Amount		Per Share		(Millions of Dollars, Except Per Share Amounts)			Amount		Per Share		Amount		Per Share
Net Income - Regulated Companies				$	379.8	$	1.10		$	344.9	$	1.04
Net Income - Regulated Companies (GAAP)													Net Income - Regulated Companies (GAAP)			$	457.1	$	1.32	$	379.8	$	1.10

Electric Distribution				$	93.2	$	0.27		$	130.1	$	0.39
Electric Distribution, excluding CL&P Storm Performance Penalty (Non-GAAP)													Electric Distribution, excluding CL&P Storm Performance Penalty (Non-GAAP)			$	140.9	$	0.41	$	117.3	$	0.34
Electric Transmission	Electric Transmission			135.4		0.39			126.8		0.38		Electric Transmission			148.5		0.43		135.4		0.39
Natural Gas Distribution ~~(1)~~	Natural Gas Distribution ~~(1)~~			147.6		0.43			85.9		0.26		Natural Gas Distribution ~~(1)~~			164.0		0.47		147.6		0.43
Water Distribution	Water Distribution			3.6		0.01			2.1		0.01		Water Distribution			3.7		0.01		3.6		0.01

Net Income - Regulated Companies				$	379.8	$	1.10		$	344.9	$	1.04
Net Income - Regulated Companies (Non-GAAP)													Net Income - Regulated Companies (Non-GAAP)			$	457.1	$	1.32	$	403.9	$	1.17
CL&P Storm Performance Penalty (after-tax)													CL&P Storm Performance Penalty (after-tax)			—		—		(24.1)		(0.07)
Net Income - Regulated Companies (GAAP)													Net Income - Regulated Companies (GAAP)			$	457.1	$	1.32	$	379.8	$	1.10

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

Our electric distribution segment earnings ~~decreased $36.9~~increased $47.7 million in the first quarter of ~~2021,~~2022, as compared to the first quarter of ~~2020,~~2021, due primarily to ~~an after-tax~~the absence in 2022 of the $30.0 million pre-tax charge ~~of $0.07 per share~~to earnings at CL&P for ~~the accrual of~~ a ~~$30 million estimated assessment~~storm performance penalty imposed by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August ~~2020. For further information, see "Regulatory Developments and Rate Matters - Connecticut" included~~2020 that was recorded in ~~this~~ ~~Management’s Discussion and Analysis~~. Earnings were also unfavorably impacted by higher operations and maintenance expense driven by higher storm restoration costs and higher employee-related expenses due to timing of capital work (primarily meter installations) delayed as a result of increased storms and the2021. The after-tax impact of ~~COVID-19, as well as higher depreciation expense and higher property tax expense. The~~the CL&P storm performance penalty was $24.1 million, or $0.07 per share. Excluding that charge, electric distribution segment earnings ~~decrease was partially offset by~~increased $23.6 million due primarily to base distribution rate increases ~~at CL&P effective May 1, 2020,~~ at NSTAR Electric effective January 1, ~~2021,~~2022 and at PSNH effective ~~January~~August 1, 2021, higher earnings from CL&P's capital ~~tracker~~tracking mechanism due to increased electric system improvements, and lower pension plan expense in Connecticut and New Hampshire. Those earnings increases were partially offset by higher operations and maintenance expense driven primarily by higher storm costs, higher depreciation, higher property tax expense and higher interest expense. Our Massachusetts utilities recover qualified pension and PBOP expenses related to their distribution operations through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year, therefore the change in their pension expense does not impact ~~in 2021 of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement.~~earnings.

Our electric transmission segment earnings increased ~~$8.6~~$13.1 million in the first quarter of ~~2021,~~2022, as compared to the first quarter of ~~2020,~~2021, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Our natural gas distribution segment earnings increased ~~$61.7~~$16.4 million in the first quarter of ~~2021,~~2022, as compared to the first quarter of ~~2020,~~2021, due primarily ~~to the addition of Eversource Gas Company of Massachusetts (EGMA) earnings of $47.3 million. Additionally, the earnings increase was due~~ to base distribution rate increases at EGMA and NSTAR Gas effective November 1, ~~2020~~2021, higher earnings from capital tracking mechanisms due to continued investments in natural gas infrastructure, and lower pension plan expense at Yankee ~~Gas effective January 1, 2021 (in customer rates beginning March 1, 2021). The~~Gas. Those earnings ~~increase was~~increases were partially offset by higher operations and maintenance expense, higher ~~depreciation~~property tax expense, higher interest expense, and higher ~~property tax~~depreciation expense. Our natural gas companies' decoupled rate structure is seasonally structured and provides greater earnings in the winter heating months in correlation to higher customer usage. Therefore, the majority of the impact of the EGMA and NSTAR Gas annual base distribution rate increases have been recognized by the end of the first quarter of 2022.

Our water distribution segment earnings increased ~~$1.5~~$0.1 million in the first quarter of ~~2021,~~2022, as compared to the first quarter of ~~2020, due primarily to lower interest expense.~~2021.

Eversource Parent and Other Companies: Eversource parent and other ~~companies' had an increased loss of $3.6 million~~companies’ losses were flat in the first quarter of ~~2021,~~2022, as compared to the first quarter of ~~2020, due primarily to~~2021. Higher interest expense was offset by a higher return at Eversource Service as a result of increased investments in property, plant and equipment and an ~~increase~~after-tax decrease of $0.9 million in ~~the~~ acquisition and ~~related~~ transition costs of ~~the CMA asset acquisition of $2.7 million.~~EGMA recorded at Eversource parent.

Impact of COVID-19

The current and expected future financial impacts of COVID-19 as it relates to our businesses primarily relate to collectability of customer receivables and customer payment plans and ~~increased expenses for cleaning and supplies for personal protective equipment.~~the outcome of future proceedings before our state regulatory commissions to recover our incremental costs associated with COVID-19.

As of March 31, ~~2021,~~2022, our allowance for uncollectible customer receivable balance of ~~$391.7~~$432.2 million, of which ~~$197.3~~$225.5 million relates to hardship accounts that are specifically recovered in rates charged to customers, adequately reflected the collection risk and net realizable value for our receivables. ~~We continue to evaluate~~As of March 31, 2022 and December 31, 2021, the adequacy of the uncollectible allowance based on an ongoing assessment of accounts receivable collections and customer payment trends, economic conditions, delinquency statistics, aging-based quantitative assessments, the impact on residential customer bills because of energy usage and change in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, and COVID-19 developments, including any potential federal governmental pandemic relief programs and the expansion of unemployment benefit initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment. This evaluation has shown that our operating companies have experienced an increase in aged receivables and lower cash collections from customers because of the moratorium on disconnections and the economic slowdown resulting from the COVID-19 pandemic.

~~Based upon the evaluation performed, in the first quarter of 2021, we increased the allowance for uncollectible accounts for amounts~~total amount incurred as a result of COVID-19 ~~by $15.5~~included in the allowance for uncollectible accounts was $58.5 million ~~for~~and $55.3 million at Eversource, ~~($5.6~~$20.4 million ~~for~~and $23.9 million at CL&P, ~~$3.7~~and $9.0 million ~~for~~and $9.0 million at NSTAR Electric, respectively. At our Connecticut and ~~$6.2 million at our natural gas businesses). These~~Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as ~~we believe~~management believes it is probable that these costs will ultimately be recovered from customers in future rates. ~~As of March 31, 2021, the total amount incurred~~No COVID-19 related uncollectible amounts were deferred at PSNH as a result of COVID-19 included in the allowance for uncollectible accounts was $47.0 million at Eversource ($8.4 million at CL&P, $14.7 million at NSTAR Electric, $2.3 million at PSNH, and $21.6 million at our natural gas businesses).a July 2021 NHPUC order. Based on the status of our COVID-19 regulatory dockets, ~~communications with our state regulatory commissions,~~ and policies and practices in ~~each of our~~the jurisdictions in which we operate, we believe ~~each of~~ our state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental uncollectible customer receivable costs associated with ~~COVID-19, which include uncollectible customer receivable expenses, while balancing the impact on our customers’ bills and our operating cash flows.~~COVID-19.

We continue to work closely with our state regulatory commissions and consumer advocates on customer assistance measures, including payment plan options in order to mitigate the impact on customer rates in the future, as well as financial hardship and arrearage management programs for those customers who are unable to pay their utility bills. We developed these long-term solutions for customers in order to help minimize the extent of the impact of COVID-19 on customer receivable balances and customers’ affordability in light of the current financial impact they may experience.

In the first quarter of 2021, net incremental costs incurred as a result of COVID-19 totaled $10.2 million, and related to uncollectible expense that impacts earnings, facilities and fleet cleaning, sanitizing costs and supplies for personal protective equipment, net of cost savings and expected benefits under the CARES Act. In the first quarter of 2021, we deferred $9.8 million of these net incremental COVID-19 costs on the balance sheet. Net incremental COVID-19 expenses that reduced pre-tax earnings totaled $0.4 million on the statement of income. As of March 31, 2022 and December 31, 2021, ~~we deferred $33.8~~a total of $35.0 million and $33.0 million, respectively, of ~~net~~ incremental COVID-19 related non-tracked uncollectible costs were recorded on the balance ~~sheet, of which $27.3 million of that deferral related to uncollectible expense that impacts earnings and $6.5 million related to cleaning and supplies for personal protective equipment.~~sheets.

Liquidity

Sources and Uses of Cash: Eversource’s regulated business is capital intensive and requires considerable capital resources. Eversource’s regulated companies’ capital resources are provided by cash flows generated from operations, short-term borrowings, long-term debt issuances, capital contributions from Eversource parent, and existing cash, and are used to fund their liquidity and capital requirements. Eversource’s regulated companies typically maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements. Short-term borrowings are also used as a bridge to long-term debt financings. The levels of short-term borrowing may vary significantly over the course of the year due to the impact of fluctuations in cash flows from operations, dividends paid, capital contributions received and the timing of long-term debt financings.

Eversource, CL&P, NSTAR Electric and PSNH each uses its available capital resources to fund its respective construction expenditures, meet debt requirements, pay operating costs, including storm-related costs, pay dividends, and fund other corporate obligations, such as pension contributions. Eversource's regulated companies recover their electric, natural gas and water distribution construction expenditures as the related project costs are depreciated over the life of the assets. This impacts the timing of the revenue stream designed to fully recover the total investment plus a return on the equity and debt used to finance the investments. Eversource's regulated companies spend a significant amount of cash on capital improvements and construction projects that have a long-term return on investment and recovery period. In addition, Eversource uses its capital resources to fund investments in its offshore wind business, which are recognized as long-term assets.

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

Cash totaled ~~$34.1~~$46.2 million as of March 31, ~~2021,~~2022, compared with ~~$106.6~~$66.8 million as of December 31, ~~2020.~~2021.

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


		Borrowings Outstanding as of					Available Borrowing Capacity as of				Weighted-Average Interest Rate as of							Borrowings Outstanding as of								Available Borrowing Capacity as of								Weighted-Average Interest Rate as of
		March 31, 2021		December 31, 2020			March 31, 2021	December 31, 2020			March 31, 2021				December 31, 2020			March 31, 2022				December 31, 2021				March 31, 2022				December 31, 2021				March 31, 2022				December 31, 2021
(Millions of Dollars)	(Millions of Dollars)									(Millions of Dollars)
Eversource Parent Commercial Paper Program	Eversource Parent Commercial Paper Program	$	1,475.7		$	1,054.3		$	524.3				$	945.7						0.23	%			0.25	%	Eversource Parent Commercial Paper Program		$	1,393.8			$	1,343.0			$	606.2			$	657.0	0.93	%	0.31	%
NSTAR Electric Commercial Paper Program	NSTAR Electric Commercial Paper Program	443.5		195.0			206.5	455.0			0.13	%			0.16	%	NSTAR Electric Commercial Paper Program		275.0				162.5				375.0				487.5				0.43		%		0.14		%

There were no borrowings outstanding on the revolving credit facilities as of March 31, ~~2021~~2022 or December 31, ~~2020.~~2021.

~~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 no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of March 31, ~~2021.~~2022.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, ~~2021, there were intercompany loans from Eversource parent to CL&P of $32.1 million, to PSNH of $196.8 million, and to a subsidiary of NSTAR Electric of $22.5 million. As of December 31, 2020,~~2022, there were intercompany loans from Eversource parent to PSNH of ~~$46.3~~$196.4 million and to a subsidiary of NSTAR Electric of ~~$21.3~~$4.0 million. As of December 31, 2021, there were intercompany loans from Eversource parent to PSNH of $110.6 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.

~~Long-Term Debt~~ 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

~~PSNH:~~Eversource Parent 2.90% Series V Senior Notes

650.0

February 2022

March 2027

Repaid Series K Senior Notes at maturity and short-term debt

Eversource Parent 3.38% Series W Senior Notes

650.0

February 2022

March 2032

Repaid Series K Senior Notes at maturity and short-term debt

~~4.05%~~Eversource Parent 2.75% Series QK Senior Notes

(750.0)

March 2022

Paid at maturity

Yankee Gas 8.48% Series B First Mortgage Bonds

~~(122.0)~~(20.0)

March ~~2021~~

~~June 2021~~

~~Paid on par call date in advance of maturity date~~

~~Other:~~

~~Eversource Parent 2.50% Series I Senior Notes~~

~~(450.0)~~

~~February 2021~~2022

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~~

Aquarion Water Company of Connecticut 3.31% Senior
Notes

~~100.0~~

~~April 2021~~

~~April 2051~~

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

~~Aquarion Water Company of Connecticut 5.50% Notes~~

~~(40.0)~~

~~April 2021~~

~~April 2021~~2022

Paid at maturity

Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $21.6 million of RRB principal payments and $9.0 million of interest payments in the first quarter of 2022, and paid $21.6 million of RRB principal payments and $9.6 million of interest payments in the first quarter of ~~2021, and paid $21.6 million of RRB principal payments and $10.3 million of interest payments in the first quarter of 2020.~~2021.

Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas and water. Cash flows provided by operating activities totaled $371.9 million in the first quarter of 2022, compared with $411.4 million in the first quarter of ~~2021, compared~~2021. Changes in Eversource’s cash flows from operations were generally consistent with ~~$420.3 million~~changes in its results of operations, as adjusted by changes in working capital in the ~~first quarter~~normal course of ~~2020.~~business and as further discussed. Operating cash flows were unfavorably impacted by the timing of cash collections on our accounts receivable, an increase in regulatory under-recoveries driven by the timing of collections for regulatory tracking mechanisms and an increase in cash payments for storm costs, customer credits being distributed to CL&P’s customers in the first quarter of 2022 as a result of the October 2021 settlement agreement and the 2021 storm performance penalty for its response to Tropical Storm Isaias, a $22.3 million increase in cost of removal expenditures, and an increase in income tax payments of $7.2 million made in 2022, as compared to 2021. These unfavorable impacts were partially offset by the timing of cash payments made on our accounts payable, income tax payments made of $15.8 million in the first quarter of 2021, compared to income tax refunds received of $40.5 million in the same period of 2020, cash payments made in the first quarter of 2021 for storm restoration costs of approximately $44 million related to Tropical Storm Isaias at CL&P, and a $30.3 million increase in Pension and PBOP contributions made in the first quarter of 2021, as compared to 2020. Partially offsetting these unfavorable impacts was the timing of collections for regulatory tracking mechanisms primarily related to the deferred fuel costs at our natural gas distribution business, the addition of EGMA, and the timing of other working capital ~~items.~~items, and a $5.0 million decrease in pension contributions made in 2022, as compared to 2021.

On May ~~5, 2021,~~4, 2022, our Board of Trustees approved a common share dividend payment of ~~$0.6025~~$0.6375 per share, payable on June 30, ~~2021~~2022 to shareholders of record as of May ~~20, 2021.~~19, 2022. On February ~~9, 2021,~~2, 2022, our Board of Trustees approved a common share dividend payment of ~~$0.6025~~$0.6375 per share, ~~which was~~ paid on March 31, ~~2021~~2022 to shareholders of record as of March ~~4, 2021.~~3, 2022. In the first quarter of 2022, we paid cash dividends of $213.9 million and issued non-cash dividends of $5.9 million in the form of treasury shares, totaling dividends of $219.8 million. In the first quarter of 2021, we paid cash dividends of $201.0 million and issued non-cash dividends of $5.9 million in the form of treasury shares, totaling dividends of $206.9 ~~million. In the first quarter of 2020, we paid cash dividends of $181.6 million and issued non-cash dividends of $5.9 million in the form of treasury shares, totaling dividends of $187.5~~ million.

In the first quarter of ~~2021,~~2022, CL&P, NSTAR Electric and PSNH paid ~~$70.1~~$73.1 million, ~~$206.4~~$71.9 million, and ~~$25.2~~$26.0 million, respectively, in common stock dividends to Eversource parent.

Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense. In the first quarter of ~~2021,~~2022, investments for Eversource, CL&P, NSTAR Electric, and PSNH were ~~$689.0~~$764.6 million, ~~$198.0~~$205.3 million, ~~$215.5~~$234.1 million, and ~~$68.3~~$107.9 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.

~~We expect~~Contractual Obligations: Our cash requirements from contractual obligations were reported in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of the ~~future operating~~Eversource 2021 Form 10-K. See Note 9B, "Commitments and Contingencies – Long-Term Contractual Arrangements," to the financial statements for discussion of material changes to our cash ~~flows of Eversource, CL&P, NSTAR Electric~~requirements from contractual obligations. Other than as described in the footnote, there have been no material changes to our cash requirements from contractual obligations and ~~PSNH, along with~~payment schedules previously disclosed in our existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.2021 Form 10-K.

Credit Ratings: On ~~May 6, 2021, S&P~~April 8, 2022, Fitch changed CL&P’s outlook from ~~stable~~negative to ~~negative and affirmed its existing outlook for Eversource parent, NSTAR Electric and PSNH.~~stable.

Business Development and Capital Expenditures

Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP income/expense (all of which are non-cash factors), totaled $685.6 million in the first quarter of 2022, compared to $620.7 million in the first quarter of ~~2021, compared to $655.7~~2021. These amounts included $53.7 million and $47.8 million in the first quarter of ~~2020. These amounts included~~ ~~$47.8 million~~2022 and ~~$55.4 million in the first quarter of~~ 2021, ~~and 2020,~~ respectively, related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company.

Electric Transmission Business: Our consolidated electric transmission business capital expenditures ~~decreased~~increased by ~~$20.6~~$43.3 million in the first quarter of ~~2021,~~2022, as compared to the first quarter of ~~2020.~~2021. A summary of electric transmission capital expenditures by company is as follows:


		For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Millions of Dollars)	(Millions of Dollars)	2021		2020		(Millions of Dollars)	2022		2021
CL&P	CL&P	$	81.3	$	84.8	CL&P	$	93.8	$	81.3
NSTAR Electric	NSTAR Electric	82.0		76.7		NSTAR Electric	83.4		82.0
PSNH	PSNH	23.9		46.3		PSNH	53.3		23.9
Total Electric Transmission Segment	Total Electric Transmission Segment	$	187.2	$	207.8	Total Electric Transmission Segment	$	230.5	$	187.2

~~Eastern~~Our transmission projects are designed to improve the reliability of the electric grid, meet customer demand for power, strengthen the electric grid's resilience against extreme weather and other safety and security threats, and increase access to clean power generation from renewable sources, such as solar and offshore wind. In Connecticut, Massachusetts ~~Transmission Projects:~~ ~~These~~and New Hampshire, our transmission projects ~~consist~~include transmission line upgrades, the installation of ~~a portfolio of~~new transmission lines, and substation enhancements.

Our transmission projects in Massachusetts include electric transmission upgrades in ~~southern New Hampshire, northern Massachusetts and continuing into~~ the greater Boston metropolitan ~~area,~~area. Two of ~~which 28~~these upgrades, ~~are in Eversource's service territory (two in New Hampshire~~the Mystic-Woburn and ~~26 in Massachusetts). The two New Hampshire upgrades, including~~ the Merrimack Valley Reliability Project, have been placed in service, and 23 Massachusetts upgrades have been placed in service. On December 17, 2019, the Massachusetts Siting Board issued a favorable decision on the Sudbury-Hudson Reliability Project, the last project requiring such approval. On January 17, 2020, the Town of Sudbury and Protect Sudbury, a community group, appealed the decision to the Massachusetts Supreme Judicial Court. Oral arguments were held on March 1, 2021. The remaining two upgradesWakefield-Woburn reliability projects, are under construction and are expected to be placed in service by the second quarter of 2023. Construction on the last remaining upgrade, the Sudbury-Hudson Reliability Project, is expected to commence in the second quarter of 2022. We ~~estimate our portion~~spent $9.5 million during the first quarter of ~~the investment will be~~2022 and we expect to make additional capital expenditures of approximately ~~$750~~$160 million ~~of which $534 million has been spent and capitalized through March 31, 2021.~~

~~Southeastern Massachusetts Transmission Projects: These~~on these remaining transmission upgrades. There are also several transmission projects ~~consist of a portfolio of electric transmission and substation upgrades~~underway in southeastern Massachusetts, including Cape Cod, required to reinforce the Southeastern Massachusetts transmission system and bring the system into compliance with applicable national and regional reliability standards. ~~ISO-NE reassessed~~We spent $6.5 million during the ~~need for projects that had yet~~first quarter of 2022 and we expect to ~~be constructed and reconfirmed the need for the majority~~make additional capital expenditures of the originally identified reinforcements in July 2020. Twelve upgrades in Eversource's service territory were reconfirmed, and a single upgrade was deemed to no longer be required. Of the twelve upgrades, four require siting approvals from the Massachusetts regulatory agencies, of which one has received approval, two are before the agencies and one, a joint project with National Grid, has yet to be filed. Three substation projects will be permitted locally, three projects are under construction and two projects have been placed in-service. We estimate our portion of the investment will be approximately ~~$175~~$130 million ~~of which $32 million has been spent and capitalized through March 31, 2021.~~on these transmission upgrades.

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

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


		For the Three Months Ended March 31,															For the Three Months Ended March 31,
(Millions of Dollars)	(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		Total Electric		Natural Gas		Water		Total		(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		Total Electric		Natural Gas		Water		Total
2022																2022
Basic Business																Basic Business	$	59.3	$	27.3	$	13.5	$	100.1	$	54.9	$	1.8	$	156.8
Aging Infrastructure																Aging Infrastructure	34.2		48.6		12.4		95.2		61.2		23.6		180.0
Load Growth and Other																Load Growth and Other	14.0		36.4		5.2		55.6		8.8		0.1		64.5
Total Distribution																Total Distribution	107.5		112.3		31.1		250.9		124.9		25.5		401.3
Solar																Solar	—		0.1		—		0.1		—		—		0.1
Total																Total	$	107.5	$	112.4	$	31.1	$	251.0	$	124.9	$	25.5	$	401.4
2021	2021															2021
Basic Business	Basic Business	$	45.0	$	31.3	$	13.6	$	89.9	$	25.4	$	1.7	$	117.0	Basic Business	$	45.0	$	31.3	$	13.6	$	89.9	$	25.4	$	1.7	$	117.0
Aging Infrastructure	Aging Infrastructure	34.1		46.1		19.5		99.7		77.2		16.7		193.6		Aging Infrastructure	34.1		46.1		19.5		99.7		77.2		16.7		193.6
Load Growth and Other	Load Growth and Other	20.3		35.3		7.7		63.3		12.8		0.1		76.2		Load Growth and Other	20.3		35.3		7.7		63.3		12.8		0.1		76.2
Total Distribution	Total Distribution	99.4		112.7		40.8		252.9		115.4		18.5		386.8		Total Distribution	99.4		112.7		40.8		252.9		115.4		18.5		386.8
Solar	Solar	—		(1.1)		—		(1.1)		—		—		(1.1)		Solar	—		(1.1)		—		(1.1)		—		—		(1.1)
Total	Total	$	99.4	$	111.6	$	40.8	$	251.8	$	115.4	$	18.5	$	385.7	Total	$	99.4	$	111.6	$	40.8	$	251.8	$	115.4	$	18.5	$	385.7
2020
Basic Business		$	43.7	$	59.6	$	9.8	$	113.1	$	20.0	$	1.9	$	135.0
Aging Infrastructure		44.1		54.4		22.5		121.0		67.3		15.8		204.1
Load Growth and Other		15.0		24.0		3.1		42.1		10.8		0.1		53.0
Total Distribution		102.8		138.0		35.4		276.2		98.1		17.8		392.1
Solar		—		0.4		—		0.4		—		—		0.4
Total		$	102.8	$	138.4	$	35.4	$	276.6	$	98.1	$	17.8	$	392.5

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

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

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

Pending Acquisition of ~~New England Service~~Torrington Water Company: On ~~April 8, 2021,~~March 7, 2022, Aquarion and ~~New England Service~~The Torrington Water Company ~~(NESC)~~(TWC) entered into a definitive agreement pursuant to which Aquarion would acquire all outstanding shares of ~~NESC. NESC~~TWC. TWC provides regulated water service to approximately ~~10,000~~10,100 customers in ~~Connecticut, Massachusetts, and New Hampshire.~~Connecticut. The acquisition will be structured as a stock-for-stock exchange and Eversource will issue ~~approximately 463,000~~between 885,000 and 925,000 common shares at closing. The transaction requires approval from the PURA ~~DPU, NHPUC and other regulators~~ and is expected to close by the end of ~~2021.~~2022.

Offshore Wind Business:

Strategic Review of Offshore Wind Investments: On May 4, 2022, we announced that we have initiated a strategic review of our offshore wind investment portfolio. As part of that review, we will explore strategic alternatives that could result in a potential sale of all, or part, of our 50 percent interest in our offshore wind partnership with Ørsted. We expect to complete this review during 2022. If the recommended path forward following the strategic review is a sale of all, or part, of our interest in the partnership, we expect potential proceeds from such transaction would likely be used to support our regulated investments in strengthening, modernizing and decarbonizing our regulated energy and water delivery systems. As the strategic review proceeds, we remain committed to continue providing oversight of the siting and construction of onshore elements of our South Fork Wind, Revolution Wind and Sunrise Wind offshore wind projects.

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

The offshore leases include a 257 square-mile ocean lease off the coasts of Massachusetts and Rhode Island and a separate, adjacent 300-square-mile ocean lease located approximately 25 miles south of the coast of Massachusetts. In aggregate, these ocean lease sites jointly-owned by Eversource and Ørsted could eventually develop at least 4,000 MW of clean, renewable offshore wind energy.

We are preparing our final project designs and advancing the appropriate federal, state and local siting and permitting processes along with our offshore wind partner, Ørsted, all of which is competitively sensitive. We currently expect to make investments in our offshore wind business of approximately $300 million to $500 million during 2021, subject to advancing our final project designs and federal, state and local permitting processes. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Eversource's total equity investment balance in its offshore wind business was ~~$921.0 million~~$1.33 billion and ~~$887.1 million,~~$1.21 billion, respectively. This equity investment includes capital expenditures for the three projects, as well as capitalized costs related to future development, acquisition costs of offshore lease areas, and capitalized interest.

Contracts, Permitting and Construction of Offshore Wind Projects:

The following table provides a summary of the Eversource and Ørsted major projects with announced contracts:

Wind Project State Servicing Size (MW) Term (Years) Price per MWh Pricing Terms Contract Status
Revolution Wind Rhode Island 400 20 $98.43 Fixed price contract; no price escalation Approved
Revolution Wind Connecticut 304 20 (1) Fixed price contracts; no price escalation Approved
South Fork Wind New York (LIPA) 90 20 $160.33 2 percent average price escalation Approved
South Fork Wind New York (LIPA) 42 20 $86.25 2 percent average price escalation Approved
Sunrise Wind New York (NYSERDA)
924 (2)
25
$110.37 (3)
Fixed price contract; no price escalation Approved

Wind Project

State Servicing

Size (MW)

Term (Years)

Price per MWh

Pricing Terms

Contract Status

Revolution Wind

Rhode Island

400

$98.43

Fixed price contract; no price escalation

Approved

Revolution Wind

Connecticut

304

$98.43 - $99.50

Fixed price contracts; no price escalation

Approved

South Fork Wind

New York (LIPA)

$160.33

2 percent average price escalation

Approved

South Fork Wind

New York (LIPA)

$86.25

2 percent average price escalation

Approved

Sunrise Wind

New York (NYSERDA)

924

$110.37 (1)

Fixed price contract; no price escalation

Approved

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

~~(2)~~ ~~The contractual capacity increased from 880 MWs to 924 MWs, as allowed under the original agreement with NYSERDA.~~

~~(3)~~ Index Offshore Wind Renewable Energy Certificate (OREC) strike price.

Our offshore wind projects are subject to receipt of federal, state and local approvals necessary to construct and operate the projects. The federal permitting process is ~~governed~~led by BOEM, and state approvals are required from New York, Rhode Island and Massachusetts. Significant delays in the siting and permitting process resulting from the timeline for obtaining approval from BOEM and the state and local agencies could adversely impact the timing of these projects' in-service dates.

Federal Siting and Permitting Process: The ~~South Fork Wind project has commenced the~~ federal siting and permitting process for each of our offshore wind projects commence with the filing of ~~its~~a Construction and Operations Plan (COP) application with ~~BOEM in 2018.~~ BOEM.The first major milestone in the BOEM review process is an issuance of a Notice of Intent (NOI) to complete an Environmental Impact Statement (EIS)~~, which South Fork Wind received in 2018. In August 2020, we received the~~. BOEM then provides a final review schedule ~~from BOEM regarding South Fork Wind’s~~for the project’s COP approval. ~~In January 2021,~~ BOEM ~~released its Draft~~conducts environmental and technical reviews of the COP. The EIS ~~for the South Fork Wind project, which assessed~~assesses the environmental, social, and economic impacts of constructing the ~~project. Identified impacts were negligible~~project and recommends measures to ~~major adverse impacts~~minimize impacts. The Final EIS will inform BOEM in deciding whether to ~~marine~~approve the project or to approve with modifications and ~~terrestrial archaeological resources and to historic, and non-historic visual resources from project construction and operations. The Draft EIS also analyzed four alternatives to be evaluated as part~~BOEM will then issue its Record of Decision. BOEM issues its final approval of the ~~process. Each~~COP following the Record of Decision.

Revolution Wind and Sunrise Wind filed their COP applications with BOEM in March 2020 and September 2020, respectively. On April 30, 2021, Revolution Wind received BOEM’s NOI to prepare an EIS for the review of the ~~identified alternative configurations had~~COP submitted by Revolution Wind. For Revolution Wind, a ~~similar level~~final EIS is expected in the first quarter of ~~environmental impacts,~~2023, the Record of Decision in the second quarter of 2023, and ~~if an alternative configuration was selected, the South Fork Wind project would still meet the contractual output under its PPA. A Final EIS~~final approval is expected in the third quarter of 2023. On August 31, 2021, ~~and~~Sunrise Wind received BOEM’s NOI to prepare an EIS for the review of the COP. For Sunrise Wind, a final ~~decision~~EIS and Record of Decision are expected in the third quarter of 2023, and final approval is expected in ~~January 2022.~~the fourth quarter of 2023.

~~Based on BOEM’s final review schedule and final United States Army Corps of Engineers approval, we expect to start construction on South Fork in early 2022.~~ South Fork Wind, isRevolution Wind and Sunrise Wind are each designated as a “Covered Project” pursuant to Title 41 of the Fixing America’s Surface Transportation Act (FAST41) and a Major Infrastructure Project under Section 3(e) of Executive Order 13807, which provides greater federal attention on meeting the ~~project’s~~projects’ permitting timelines.

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

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

On September 10, 2020, the Town of East Hampton and the East Hampton Town Trustees announced that they had reached an agreement with South Fork Wind to issue the necessary easements and other real estate rights necessary to construct the South Fork Wind project. The Town approved the easements on January 21, 2021 and Trustees approved the lease on January 25, 2021.

State permitting applications in Rhode Island for Revolution Wind and in New York for Sunrise Wind were filed in December 2020. The Revolution Wind state siting application was deemed complete on January 22, 2021, and the preliminary hearing was completed on March 22, 2021. On April 26, 2021, the Rhode Island Energy Facilities Siting Board issued a Preliminary Decision and Order on scheduling with Advisory Opinions for local and state ~~agencies to be submitted by~~agencies. All advisory opinions were received in August, ~~26, 2021,~~in accordance with the expedited schedule, and evidentiary hearings began in October 2021 and are ongoing. The Sunrise Wind state siting application was deemed complete on July 1, 2021, initiating the formal review process, and Sunrise Wind filed a formal notice of intent to commence settlement negotiations towards a Joint Proposal on August 31, 2021. Settlement negotiations are ongoing.

Construction Process - South Fork Wind: South Fork Wind received all required approvals to start construction and the project entered the construction phase in early 2022. Site preparation and onshore activities for the project’s underground onshore transmission line and construction of the onshore interconnection facility located in East Hampton, New York are underway. Offshore installation, including the project’s monopile foundations, 11-megawatt wind turbines, and offshore substation, is expected to occur in 2023. Construction-related purchase agreements with third-party contractors and materials contracts have largely been secured. South Fork Wind faces several challenges and appeals of New York State and federal agency approvals, however it believes it is probable it will ~~begin prior~~be able to ~~October 12, 2021.~~overcome these challenges.

Projected In-Service Dates: ~~Based on BOEM’s confirmed permit schedule outlining when BOEM will complete its review of the South Fork Wind COP, we now~~We expect the South Fork Wind project to be in-service by the end of 2023. For Revolution Wind ~~we recently received BOEM’s NOI~~ and ~~for~~ Sunrise Wind, based on the BOEM permit schedule included in each respective NOI outlining when BOEM will complete its review of the COP, we ~~do not have a definitive timeline on when we will receive BOEM’s NOI. Additionally,~~currently expect in-service dates in 2025 for both projects.

Projected Investments: For Revolution Wind and Sunrise Wind, we ~~also do not have a definitive timeline on other~~are preparing our final project designs and advancing the appropriate federal, state, and local siting and permitting ~~milestones,~~processes along with our offshore wind partner, Ørsted. Construction of South Fork Wind is underway. Construction-related purchase agreements with third-party contractors and ~~execution of certain large generator interconnection agreements. At this time,~~materials contracts are approximately 80 percent secured. Subject to advancing our final project designs and federal, state and local permitting processes and construction schedules, we ~~believe that it is unlikely~~currently expect to make investments in our offshore wind business between $0.9 billion and $1.0 billion in 2022 and expect to make investments for our three projects in total between $3.0 billion and $3.6 billion from 2023 through 2026. These estimates assume that the ~~projected~~three projects are completed and are in-service ~~dates of~~by the end of ~~2023 and~~2025, as planned. These projected investments could be impacted by the ~~end~~strategic review of 2024 for Revolution Wind and Sunrise Wind, respectively, will be met. We anticipate concluding on projected in-service dates for Revolution Wind and Sunrise Wind in the second half of 2021, once both BOEM NOIs have been received and analyzed.our offshore wind investment portfolio discussed above.

FERC Regulatory Matters

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

All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of both March 31, ~~2021~~2022 and December 31, ~~2020.~~2021. 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 both March 31, ~~2021~~2022 and December 31, ~~2020.~~2021.

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.

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

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

A change of 10 basis points to the base ROE used to establish the reserves would impact Eversource's after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods. ~~From~~Prospectively from the date of a final FERC order implementing a new base ROE, based off of estimated 2021 rate base, a change of 10 basis points to the base ROE would impact Eversource’s ~~2021~~future annual after-tax earnings by approximately $5 million ~~or $0.01 per share,~~ per year, and will increase slightly over time as we continue to invest in our transmission infrastructure.

FERC Notice of Inquiry on ROE:On March 21, 2019, FERC issued a Notice of Inquiry (NOI) seeking comments from all stakeholders on FERC's policies for evaluating ROEs for electric public utilities, and interstate natural gas and oil pipelines. On June 26, 2019, the NETOs jointly filed comments supporting the methodology established in the FERC’s October 16, 2018 order with minor enhancements going forward. The NETOs jointly filed reply comments in the FERC ROE NOI on July 26, 2019. On May 12, 2020, the NETOs filed supplemental comments in the NOI ROE docket. At this time, Eversource cannot predict how this proceeding will affect its transmission ROEs.

FERC Notice of Inquiry and Proposed Rulemaking on Transmission Incentives:On March 21, 2019, FERC issued an NOI seeking comments on FERC's policies for implementing electric transmission incentives. On June 26, 2019, Eversource filed comments requesting that FERC retain policies that have been effective in encouraging new transmission investment and remain flexible enough to attract investment in new and emerging transmission technologies. Eversource filed reply comments on August 26, 2019. On March 20, 2020, FERC issued a Notice of Proposed Rulemaking (NOPR) on transmission incentives. The NOPR intends to revise FERC’s electric transmission incentive policies to reflect competing uses of transmission due to generation resource mix, technological innovation and shifts in load patterns. FERC proposes to grant transmission incentives based on measurable project economics and reliability benefits to consumers rather than its current project risks and challenges framework. On July 1, 2020, Eversource filed comments generally supporting the NOPR.

On April 15, 2021, FERC issued a Supplemental NOPR that proposes to eliminate the existing 50 basis point return on equity for utilities that have been participating in a regional transmission organization (RTO ROE incentive) for more than three years. On June 25, 2021, the NETOs jointly filed comments strongly opposing the Commission’s proposal. On July 26, 2021, the NETOs filed Supplemental NOPR ~~comments are due May 26, 2021 with~~ reply comments ~~due June 10, 2021.~~responding to various parties advocating for the elimination of the RTO Adder. If the FERC issues a final order eliminating the RTO ROE incentive as proposed in the Supplemental NOPR, the estimated annual impact (using ~~2019 actual data)~~2021 estimated rate base) on ~~Eversource’s~~Eversource's after-tax earnings is approximately ~~$14~~$17 million. The Supplemental NOPR contemplates an effective date 30 days from the final order.

At this time, Eversource cannot predict the ultimate outcome of these proceedings, including possible appellate review, and the resulting impact on its transmission incentives.

Regulatory Developments and Rate Matters

Electric, Natural Gas and Water Utility Base Distribution Rates: The regulated companies’ distribution rates are set by their respective state regulatory commissions, and their tariffs include mechanisms for periodically adjusting their rates for the recovery of specific incurred costs. Other than as described below, for the first quarter of ~~2021,~~2022, changes made to the regulated companies’ rates did not have a material impact on their earnings, financial position, or cash flows. For further information, see "Financial Condition and Business Analysis – Regulatory Developments and Rate Matters" included in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource ~~2020~~2021 Form 10-K.

Connecticut:

CL&P ~~Tropical Storm Isaias Costs:~~Advanced Metering Infrastructure Filing: On ~~August 4,~~July 31, 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 submitted to ~~restore service~~PURA its proposed $512 million Advanced Metering Infrastructure investment and implementation plan. On August 17, 2021, PURA issued a Notice of Request for Amended EDC Advanced Metering Infrastructure Proposal. CL&P submitted an Amended Proposal in response to ~~Tropical Storm Isaias. That investigation is expected to occur either~~this request on November 8, 2021 with an updated schedule for the years 2022 through 2028, which included additional information as required by the PURA. As required, the plan includes a full deployment of advanced metering functionality and a composite business case in ~~a separate proceeding not yet initiated or as part~~support of ~~CL&P’s next rate review proceeding. Tropical Storm Isaias resulted in deferred storm restoration costs of approximately $231 million at CL&P and $249 million at Eversource as of March 31, 2021.~~the Advanced Metering Infrastructure plan. The ~~estimated cost of restoration will change as additional cost information becomes available and final storm costs are deferred or capitalized. Although PURA found~~procedural schedule includes briefs that CL&P’s performance in its preparation for and response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. CL&P continues to believe that these storm restoration costs associated with Tropical Storm Isaias were ~~prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm costs to have a material impact~~filed on ~~the financial position or results of operations of Eversource or CL&P.~~April 29, 2022.

~~CL&P Tropical Storm Isaias Response Investigation:~~Yankee Gas System Expansion Plan Order: In ~~August 2020,~~September 2021, PURA ~~opened~~undertook a ~~docket~~review of Connecticut natural gas companies’ infrastructure system expansion plan (SEP) to ~~investigate~~determine if the ~~preparation for and response~~SEP continues to ~~Tropical Storm Isaias by Connecticut utilities, including CL&P.~~be in the best interest of the state’s comprehensive energy strategy. On April ~~28, 2021,~~27, 2022, PURA issued an order for the immediate winding down of the SEP by (1) ending the enrollment of new customers in the SEP program and permitting only a ~~final decision~~specific group of potential customers who have executed a services agreement with a natural gas company on ~~CL&P’s compliance with its emergency response plan that concluded CL&P failed~~or before a specified date to ~~comply with certain applicable storm performance standards~~qualify for incentives under the current SEP; (2) directing all surplus non-firm margin to be deferred as a regulatory liability 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 informationapplied to ~~its customers, or meeting its obligation to secure adequate external contractor and mutual aid resources~~rate base in a ~~timely manner. Based on its findings, PURA ordered CL&P to adjust its future rates, in a pending or~~ future rate ~~proceeding,~~proceeding; and (3) directing the natural gas companies to ~~reflect a monetary penalty in~~cease all outbound and passive marketing regarding the ~~form of a downward adjustment of 90 basis points in its allowed rate of return on equity (ROE). The decision also requires CL&P to enhance and submit updated emergency response programs incorporating~~SEP. Eversource is currently evaluating the changes noted within the decision for PURA’s approval by June 30, 2021. PURA explained that additional monetary penalties and further enforcement orders pursuant to Connecticut statute would be considered in a separate proceeding that was initiated on May 6, 2021.

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

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

~~CL&P Rate Adjustment Mechanisms (RAM) Filing~~: On July 31, 2020, PURA temporarily suspended its June 26, 2020 approval of certain delivery rate components effective July 1, 2020, and 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. On December 2, 2020, PURA issued a final decision in which it adjusted the timing of the annual rate adjustments for the Transmission Adjustment Clause (TAC) charge, the Non-Bypassable Federally Mandated Congestion Charge (NBFMCC), and the Electric System Improvements Tracker (ESI) so that these rates take effect on May 1st of each year, as opposed to the current process of adjusting rates each January 1 and July 1. The final decision also adjusted the timing of new rates for the Competitive Transition Assessment (CTA), System Benefits Charge (SBC) and Revenue Decoupling Mechanism (RDM) to May 1st of each year, as opposed to the current process of adjusting rates on January 1st (for the CTA and SBC) and July 1st (for the RDM), modified the calculation of carrying charges and changed the basis of recovery to rely on more actual versus forecasted information. On March 1, 2021, consistent with this new timing, CL&P filed for new rates for these rate components for effect on May 1, 2021. Additionally, CL&P proposed delaying and extending recovery of 2020 under-recoveries associated with these rates over 31 months beginning October 1, 2021. On April 28, 2021, PURA issued its interim decision on CL&P’s proposal that accepted the May 1, 2021 rate proposals for the CTA, TAC, ESI and RDM, with certain modifications. One of the modifications was that these rate changes would go into effect on June 1, 2021, as opposed to May 1, 2021. Further, PURA elected to keep in place the current rates for the NBFMCC and SBC until further review of the costs being recovered in those rates could be performed. Finally, PURA indicated it would further review CL&P’s proposal to begin recovery of 2020 under-recoveries associated with these rates on October 1, 2021, and what the period of recovery would be at a later time.cash flows.

Massachusetts:

NSTAR Electric Distribution Rates: As part of an inflation-based mechanism, NSTAR Electric submitted its ~~third~~fourth annual Performance Based

Rate Adjustment filing on ~~September 15, 2020~~November 10, 2021 and on December 22, 2021, the DPU approved a ~~$29.9~~$36.8 million increase to base distribution rates effective January 1, 2022.

NSTAR Electric Distribution Rate Case: On January 14, 2022, NSTAR Electric filed an application with the DPU for approval of an $89 million increase in base distribution rates, with new rates anticipated to be effective January 1, 2023. On April 22, 2022, NSTAR Electric updated its requested increase to $88 million. As part of this filing, NSTAR Electric is requesting a renewal of the performance-based ratemaking plan originally authorized in its last rate case for up to a ten-year term, alignment with state electrification policy, storm fund refinements, and Advanced Metering Infrastructure tariff approval. A final decision from the DPU is expected on December ~~30, 2020~~1, 2022.

NSTAR Electric Grid Modernization and Advanced Metering Infrastructure Filing: On July 1, 2021, NSTAR Electric submitted for ~~effect~~DPU approval its four-year $198.8 million grid modernization plan for the years 2022 through 2025 and proposed $620 million Advanced Metering Infrastructure investment and implementation plan (including program operating costs) for the years 2022 through 2028. As required, the plan includes a ten-year vision, five-year strategic plan, including a full deployment of advanced metering functionality, separate four-year grid-facing and customer-facing short-term investment plans, and a composite business case in support of the Advanced Metering Infrastructure plan. NSTAR Electric expects DPU guidance for all investments by the fourth quarter of 2022. For Advanced Metering Infrastructure investments, additional review of the cost recovery mechanism will be conducted in NSTAR Electric’s base distribution rate case that was filed on January 14, 2022 with a decision expected on December 1, ~~2021.~~2022. Reply briefs are due to be filed by NSTAR Electric on June 27, 2022.

New Hampshire:

~~PSNH Distribution Rates:~~Energy Efficiency Plan: ~~In connection with~~On November 12, 2021, the ~~October 9, 2020 settlement agreement,~~NHPUC issued an order rejecting the proposed 2021 through 2023 energy efficiency plan and significantly reduced funding and operational functions of the program. The order eliminated the recovery of performance incentives and made other key changes to the energy efficiency plan beginning in 2022. PSNH ~~is permitted step increases effective August 1, 2021~~sought a rehearing of the order and ~~August 1, 2022~~was denied, which resulted in PSNH filing a formal appeal to ~~reflect plant additions in~~ the calendar years 2020 and 2021, respectively. On May 3, 2021, PSNH filed the step adjustment for 2020 plant in service to recover a revenue requirement of $11.1 million, subject to reconciliation after completion of an audit, for rates effective August 1, 2021.New Hampshire Supreme Court.

~~Legislative and Policy Matters~~

~~Massachusetts:~~On February 10, 2022, the NHPUC issued an order that restored the 2022 energy efficiency rate to be consistent with the 2021 rate, which PSNH implemented effective March ~~26, 2021, Governor Baker~~1, 2022. On February 24, 2022, state legislation was signed into law that undid the most impactful effects of the November 12, 2021 NHPUC order. The legislation directed that the joint utility energy efficiency plan and programming framework in effect on January 1, 2021 be utilized going forward, including utility performance incentive payments, lost base revenue calculations, and Evaluation, Measurement, and Verification process. Additionally, the legislation established a ~~climate change bill which permits electric or natural gas distribution companies~~process for future plan proposals, including the 2024 through 2026 triennial plan, and includes a mechanism for future rate increases based on the consumer price index. As a result of the new legislation passed specific to ~~assist Massachusetts municipalities in responding~~this order, PSNH withdrew its appeal to the ~~risks of climate change by owning solar facilities equal to up to 10 percent~~New Hampshire Supreme Court. PSNH made the required filing for the remainder of the ~~total installed solar generating capacity in Massachusetts~~2022 through 2023 triennial plan on March 1, 2022, which was approved as of July 31, 2020. Such facilities may be paired with energy storage where feasible to do so. This law will allow each of Eversource’s Massachusetts operating companies to own up to approximately 280 MWs of solar generating facilities in addition tofiled by the ~~70 MWs previously constructed at NSTAR Electric.~~NHPUC on April 29, 2022.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and, at times, difficult, subjective or complex judgments. Changes in these estimates, assumptions and judgments, in and of themselves, could materially impact our financial position, results of operations or cash flows. Our management discusses with the Audit Committee of our Board of Trustees significant matters relating to critical accounting policies. Our critical accounting policies that we believed were the most critical in nature were reported in the Eversource ~~2020~~2021 Form 10-K. There have been no material changes with regard to these critical accounting policies.

Other Matters

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

~~Contractual Obligations and Commercial Commitments: See Note 9B, "Commitments and Contingencies – Long-Term Contractual Arrangements," for discussion of material changes to contractual obligations since the Eversource 2020 Form 10-K.~~

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

RESULTS OF OPERATIONS – EVERSOURCE ENERGY AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for Eversource for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 included in this combined Quarterly Report on Form 10-Q:

For the Three Months Ended March 31,
(Millions of Dollars) 2021 2020 Increase
Operating Revenues $ 2,825.8 $ 2,373.7 $ 452.1
Operating Expenses:
Purchased Power, Fuel and Transmission 998.5 876.5 122.0
Operations and Maintenance 465.5 342.1 123.4
Depreciation 270.7 236.2 34.5
Amortization 108.0 49.8 58.2
Energy Efficiency Programs 188.1 148.4 39.7
Taxes Other Than Income Taxes 209.4 181.5 27.9
Total Operating Expenses 2,240.2 1,834.5 405.7
Operating Income 585.6 539.2 46.4
Interest Expense 137.8 134.7 3.1
Other Income, Net 34.2 24.1 10.1
Income Before Income Tax Expense 482.0 428.6 53.4
Income Tax Expense 114.0 91.9 22.1
Net Income 368.0 336.7 31.3
Net Income Attributable to Noncontrolling Interests 1.9 1.9 —
Net Income Attributable to Common Shareholders $ 366.1 $ 334.8 $ 31.3


	For the Three Months Ended March 31,
(Millions of Dollars)		2022		2021		Increase/ (Decrease)
Operating Revenues		$	3,471.3	$	2,825.8	$	645.5
Operating Expenses:
Purchased Power, Fuel and Transmission		1,389.7		998.5		391.2
Operations and Maintenance		472.4		465.5		6.9
Depreciation		289.3		270.7		18.6
Amortization		236.9		108.0		128.9
Energy Efficiency Programs		199.5		188.1		11.4
Taxes Other Than Income Taxes		220.4		209.4		11.0

Total Operating Expenses		2,808.2		2,240.2		568.0
Operating Income		663.1		585.6		77.5
Interest Expense		153.3		137.8		15.5
Other Income, Net		71.6		34.2		37.4
Income Before Income Tax Expense		581.4		482.0		99.4
Income Tax Expense		136.1		114.0		22.1
Net Income		445.3		368.0		77.3
Net Income Attributable to Noncontrolling Interests		1.9		1.9		—
Net Income Attributable to Common Shareholders		$	443.4	$	366.1	$	77.3

Operating Revenues

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


		Electric						Firm Natural Gas								Water								Electric											Firm Natural Gas									Water
		Sales Volumes (GWh)		Percentage Increase				Sales Volumes (MMcf)				Percentage Increase				Sales Volumes (MG)					Percentage (Decrease)/Increase			Sales Volumes (GWh)								Percentage Increase			Sales Volumes (MMcf)						Percentage Increase			Sales Volumes (MG)					Percentage Increase/(Decrease)
Three Months Ended March 31:	Three Months Ended March 31:	2021	2020			2021			2020					2021			2020		Three Months Ended March 31:	2022					2021					2022					2021				2022					2021

Traditional	Traditional	1,951	1,906			2.4	%		—		—			—	%		258		434					(40.6)		%	Traditional	1,992			1,951			2.1		%	—			—			—		%	324		258			25.6	%
Decoupled and Special Contracts ~~(2)~~(1)	Decoupled and Special Contracts ~~(2)~~(1)	10,732	10,465	2.6	%			66,002		60,563		9.0	%			4,478		4,372			2.4	%	Decoupled and Special Contracts ~~(2)~~(1)	10,973					10,732			2.2	%		68,518			66,002			3.8	%		4,342			4,478		(3.0)	%
Total Sales Volumes	Total Sales Volumes	12,683	12,371	2.5	%			66,002		60,563		9.0	%			4,736		4,806			(1.5)	%	Total Sales Volumes	12,965					12,683			2.2	%		68,518			66,002			3.8	%		4,666			4,736		(1.5)	%

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

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

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

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

Operating Revenues: Operating Revenues by segment ~~increased/(decreased)~~increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, as follows:


(Millions of Dollars)	Three Months Ended
Electric Distribution	$	~~95.0~~486.0
Natural Gas Distribution	~~331.9~~147.1
Electric Transmission	~~30.9~~34.6
Water Distribution	~~(0.5)~~2.1
Other	~~48.4~~40.5
Eliminations	~~(53.6)~~(64.8)
Total Operating Revenues	$	~~452.1~~645.5

Electric and Natural Gas (excluding EGMA) Distribution Revenues:

Base Distribution Revenues:

•Base electric distribution revenues increased ~~$23.2~~$9.7 million for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the impact of base distribution rate increases at ~~CL&P effective May 1, 2020, at~~ NSTAR Electric effective January 1, ~~2021,~~2022 resulting from its annual Performance Based Rate Adjustment filing, and at PSNH effective ~~January~~August 1, ~~2021.~~2021 to reflect plant additions in calendar year 2020 included in its revenue requirement.

•Base natural gas distribution revenues (excluding EGMA) increased ~~$29.0~~$9.7 million for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to a base distribution rate ~~increases~~increase at NSTAR Gas effective November 1, 2020, which includes a shift of recovery into base rates of certain GSEP investments, and at Yankee Gas effective January 1, 2021. Although new rates at Yankee Gas were implemented on March 1, 2021 to customers, the provisions of the base distribution rate increase were effective January 1, 2021.

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

Tracked distribution revenues increased/(decreased) for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


		Three Months Ended					Three Months Ended
(Millions of Dollars)	(Millions of Dollars)	Electric Distribution		Natural Gas Distribution		(Millions of Dollars)		Electric Distribution		Natural Gas Distribution
Retail Tariff Tracked Revenues:	Retail Tariff Tracked Revenues:					Retail Tariff Tracked Revenues:
Energy supply procurement	Energy supply procurement	$	(29.1)	$	29.1	Energy supply procurement		$	165.0	$	42.1
Retail transmission						Retail transmission		97.7		—
Other distribution tracking mechanisms	Other distribution tracking mechanisms	45.4		16.7		Other distribution tracking mechanisms		(3.9)		0.4
Wholesale Market Sales Revenue	Wholesale Market Sales Revenue	58.1		4.3		Wholesale Market Sales Revenue		216.4		2.5

~~The decrease in energy supply procurement within electric distribution was driven primarily by lower average prices.~~ The increase in energy supply procurement within both electric distribution and natural gas distribution for the three months ended March 31, 2022, as compared to the same period in 2021, was driven primarily by ~~both~~higher average prices and higher average supply-related sales ~~volumes and higher average prices.~~volumes.

Fluctuations in retail transmission revenues are driven by the recovery of the costs of our wholesale transmission business, such as those billed by ISO-NE and Local and Regional Network Service charges. For further information, see "Purchased Power, Fuel and Transmission Expense" below.

The increase in ~~the~~ electric distribution wholesale market sales revenue was due primarily to higher average electricity market prices received for wholesale sales at CL&P, NSTAR Electric and PSNH for the three months ended March 31, 2022, as compared to the same period in 2021. ISO-NE average market prices received for CL&P’s wholesale sales increased approximately 117 percent for the three months ended March 31, 2022, as compared to the same period in 2021, driven primarily by higher natural gas prices in New England.The increase was also due tohigher wholesale sales at CL&P resulting from the sale of output generated by the Seabrook PPA beginning in the first quarter of 2021, as compared to the first quarter of 2020. ISO-NE average wholesale market prices increased approximately 125 percent comparatively, primarily driven by increased demand as a result of colder winter temperatures in 2021. 2022. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA that CL&P entered into in 2019, as required by regulation. CL&P sells the energy purchased from Millstone and Seabrook into the wholesale market and uses the proceeds from the energy sales to offset the contract costs. The net sales or net cost amount is refunded to, or recovered from, customers in the FMCC rate.

The increase in electric distribution wholesale market sales revenues was also driven by higher proceeds from a one-year sale of transmission rights, effective June 2021, under CL&P’s, NSTAR Electric’s and PSNH’s Hydro-Quebec transmission support agreements. Proceeds from these sales are credited back to customers.

EGMA Natural Gas Distribution Revenues: ~~The addition of~~ EGMA ~~increased~~ total operating revenues at the natural gas distribution segment increased by ~~$252.5 million.~~$91.6 million for the three months ended March 31, 2022, as compared to the same period in 2021. Included in the total operating revenues increase was EGMA’s base natural gas distribution revenues increase of $20.9 million due primarily to a base distribution rate increase effective November 1, 2021.

Electric Transmission Revenues: Electric transmission revenues increased ~~$30.9~~$34.6 million for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Other Revenues and Eliminations: Other revenues primarily include the revenues of Eversource's service company, most of which are eliminated in consolidation. Eliminations are also primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission ~~business.~~business in rates charged to their customers.

Purchased Power, Fuel and Transmission expense includes costs associated with purchasing electricity and natural gas on behalf of our ~~customers.~~customers and the cost of energy purchase contracts, as required by regulation. These electric and natural gas supply costs and other energy-related costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power, Fuel and Transmission expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)	Three Months Ended
Purchased Power Costs	$	~~(18.3)~~221.0
Natural Gas Costs	~~133.7~~95.9
Transmission Costs	~~16.7~~100.4
Eliminations	~~(10.1)~~(26.1)
Total Purchased Power, Fuel and Transmission	$	~~122.0~~391.2

The ~~decrease~~increase in purchased power expense at the electric distribution business for the three months ended March 31, 2022, as compared to the same period in 2021, was driven primarily by ~~lower average prices associated with~~higher expense related to the procurement of energy supply ~~partially offset by~~resulting from higher average prices and higher average supply-related sales ~~volumes.~~ volumes, higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and higher net metering costs at NSTAR Electric.

The increase in costs at the natural gas distribution segment for the three months ended March 31, 2022, as compared to the same period in 2021, was due primarily to ~~the addition of EGMA natural gas supply costs in the first quarter of 2021 as a result of the 2020 CMA asset acquisition of $95.1 million,~~higher average prices and higher average supply-related sales ~~volumes and higher average prices.~~

volumes. The increase in transmission costs for the three months ended March 31, 2022, as compared to the same period in 2021, was primarily the result of an increase in costs billed by ISO-NE that

support regional grid investments and an increase resulting from the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers. This was partially offset by a decrease in Local Network Service charges, which reflects the cost of transmission service provided by Eversource over our local transmission network. ~~This was partially offset by a decrease in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.~~

Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)	Three Months Ended
Base Electric Distribution (Non-Tracked Costs):
Absence in 2022 of CL&P ~~estimated assessment by PURA~~charge for Tropical Storm Isaias response in 2021	$	~~30.0~~ (30.0)
Employee-related expenses, including labor and benefits	~~14.9~~(6.5)
Funding of CL&P storm reserve as part of June 1, 2021 rate change (offset by lower Amortization expense)	6.0
Storm ~~restoration~~ costs	~~9.4~~
~~Operations-related expenses, including vegetation management, vehicles, and outside services~~	8.0
~~Shared corporate costs (including computer software depreciation at Eversource Service)~~Operations-related expenses, including vehicles, vegetation management and outside services	~~5.3~~ (9.3)
Other non-tracked operations and maintenance	~~1.3~~12.1
Total Base Electric Distribution (Non-Tracked Costs)	~~68.9~~ (19.7)
Tracked Electric Costs (Electric Distribution and Electric Transmission)	~~8.1~~19.4
~~Natural Gas Distribution:~~



~~Base (Non-Tracked) Costs, excluding EGMA~~	~~4.6~~
~~Tracked Costs, excluding EGMA~~	~~1.0~~
~~EGMA Operations and Maintenance~~	~~45.6~~
~~Total~~ Natural Gas Distribution	~~51.2~~11.0
Water Distribution	—1.6
Parent and Other Companies and eliminations:
Eversource Parent and Other Companies - other operations and maintenance	~~38.9~~33.2
~~Transition~~Acquisition and ~~Acquisition~~Transition Costs	~~3.7~~ (1.3)
Eliminations	~~(47.4)~~(37.3)
Total Operations and Maintenance	$	~~123.4~~6.9

Depreciation expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due to higher utility plant in service ~~balances, and due to the addition of EGMA utility plant balances as a result of the 2020 CMA asset acquisition of $11.7 million.~~balances.

Amortization expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates.

Amortization increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the deferral adjustment of energy supply, energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism at CL&P, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The increase was partially offset by a decrease in storm amortization expense at CL&P related to the completion of the amortization period of certain storm costs deferred assets.

Energy Efficiency Programs expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the deferral adjustment, ~~at NSTAR Electric, PSNH and NSTAR Gas,~~ which reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, and the timing of the recovery of energy efficiency costs. ~~The increase was also due to the addition of EGMA energy efficiency program costs as a result of the 2020 CMA asset acquisition of $29.7 million.~~ The costs for the majority of the state energy policy initiatives and expanded energy efficiency programs are recovered from customers in rates and have no impact on earnings.

Taxes Other Than Income Taxes expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to an increase in property taxes as a result of higher utility plant ~~balances and higher Connecticut gross earnings taxes and due to the addition of EGMA property taxes as a result of the 2020 CMA asset acquisition of $7.5 million.~~balances.

Interest Expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to an increase in interest on long-term debt as a result of new debt issuances ($~~9.4~~11.6 million), an increase in interest expense on regulatory deferrals ($4.4 million), and ~~a decrease~~an increase in interest on notes payable ($0.2 million), partially offset by an increase in AFUDC related to debt funds and other capitalized interest ($~~0.6 million), partially offset by a decrease in interest on notes payable ($4.5~~1.0 million) and a decrease in RRB interest expense ~~on regulatory deferrals~~ ($~~2.3~~0.3 million).

Other Income, Net increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to an increase

related to pension, SERP and PBOP non-service income components ($~~7.4 million) and lower investment losses driven by market volatility ($3.7~~34.2 million), ~~partially offset by lower~~an increase in interest income primarily from regulatory deferrals ($5.2 million), an increase in AFUDC related to equity funds ($~~1.4~~0.7 million), and a decrease in investment losses ($0.4 million), partially offset by a decrease in equity in earnings related to Eversource's equity method investments ($3.3 million).

Income Tax Expense increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to higher pre-tax earnings ($~~11.2~~20.9 million), higher state taxes ($7.3 million), and lower share-based payment excess tax benefits ($~~2.3~~1.8 million), ~~an increase in~~partially offset by a ~~valuation allowance ($1.7 million), and an increase~~decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($3.8 million), the absence in 2022 of a valuation allowance increase in 2021 ($1.7 million), ~~partially offset by~~and an increase in amortization of EDIT ($~~2.1~~2.4 million).

5049

RESULTS OF OPERATIONS –

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 included in this combined Quarterly Report on Form 10-Q:

For the Three Months Ended March 31,
CL&P NSTAR Electric PSNH
(Millions of Dollars) 2021 2020 Increase/
(Decrease) 2021 2020 Increase/
(Decrease) 2021 2020 Increase/
(Decrease)
Operating Revenues $ 987.3 $ 899.7 $ 87.6 $ 737.0 $ 733.8 $ 3.2 $ 293.4 $ 276.4 $ 17.0
Operating Expenses:
Purchased Power and Transmission 373.3 374.7 (1.4) 226.5 242.4 (15.9) 91.6 94.1 (2.5)
Operations and Maintenance 175.4 135.6 39.8 143.2 122.3 20.9 54.7 47.1 7.6
Depreciation 83.4 78.4 5.0 82.8 78.3 4.5 29.5 24.3 5.2
Amortization of Regulatory Assets, Net 62.8 6.6 56.2 18.4 27.0 (8.6) 18.5 20.1 (1.6)
Energy Efficiency Programs 35.6 35.5 0.1 75.1 68.7 6.4 10.3 9.4 0.9
Taxes Other Than Income Taxes 91.4 83.0 8.4 54.6 48.8 5.8 22.2 19.8 2.4
Total Operating Expenses 821.9 713.8 108.1 600.6 587.5 13.1 226.8 214.8 12.0
Operating Income 165.4 185.9 (20.5) 136.4 146.3 (9.9) 66.6 61.6 5.0
Interest Expense 39.0 37.8 1.2 32.3 30.9 1.4 14.6 14.5 0.1
Other Income, Net 4.9 1.9 3.0 16.8 12.2 4.6 4.2 3.2 1.0
Income Before Income Tax Expense 131.3 150.0 (18.7) 120.9 127.6 (6.7) 56.2 50.3 5.9
Income Tax Expense 32.9 31.3 1.6 27.0 27.2 (0.2) 11.5 10.7 0.8
Net Income $ 98.4 $ 118.7 $ (20.3) $ 93.9 $ 100.4 $ (6.5) $ 44.7 $ 39.6 $ 5.1


	For the Three Months Ended March 31,
	CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	2022		2021		Increase/ (Decrease)		2022		2021		Increase/ (Decrease)		2022		2021		Increase/ (Decrease)
Operating Revenues	$	1,285.8	$	987.3	$	298.5	$	863.2	$	737.0	$	126.2	$	339.4	$	293.4	$	46.0
Operating Expenses:
Purchased Power and Transmission	523.5		373.3		150.2		313.7		226.5		87.2		125.8		91.6		34.2
Operations and Maintenance	157.1		175.4		(18.3)		164.9		143.2		21.7		59.6		54.7		4.9
Depreciation	87.3		83.4		3.9		89.0		82.8		6.2		31.3		29.5		1.8
Amortization of Regulatory Assets, Net	169.7		62.8		106.9		29.3		18.4		10.9		26.8		18.5		8.3
Energy Efficiency Programs	35.4		35.6		(0.2)		80.3		75.1		5.2		8.7		10.3		(1.6)
Taxes Other Than Income Taxes	90.3		91.4		(1.1)		59.8		54.6		5.2		22.8		22.2		0.6
Total Operating Expenses	1,063.3		821.9		241.4		737.0		600.6		136.4		275.0		226.8		48.2
Operating Income	222.5		165.4		57.1		126.2		136.4		(10.2)		64.4		66.6		(2.2)
Interest Expense	40.6		39.0		1.6		38.2		32.3		5.9		13.6		14.6		(1.0)
Other Income, Net	19.6		4.9		14.7		29.2		16.8		12.4		7.5		4.2		3.3
Income Before Income Tax Expense	201.5		131.3		70.2		117.2		120.9		(3.7)		58.3		56.2		2.1
Income Tax Expense	48.5		32.9		15.6		24.5		27.0		(2.5)		12.7		11.5		1.2
Net Income	$	153.0	$	98.4	$	54.6	$	92.7	$	93.9	$	(1.2)	$	45.6	$	44.7	$	0.9

Operating Revenues

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


		For the Three Months Ended March 31,						For the Three Months Ended March 31,
		2021	2020	Increase	Percentage Increase			2022	2021	Increase	Percentage Increase
CL&P	CL&P	5,154	4,941	213	4.3	%	CL&P	5,263	5,154	109	2.1	%
NSTAR Electric	NSTAR Electric	5,578	5,524	54	1.0	%	NSTAR Electric	5,710	5,578	132	2.4	%
PSNH	PSNH	1,951	1,906	45	2.4	%	PSNH	1,992	1,951	41	2.1	%

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

Operating Revenues: Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased ~~$87.6~~$298.5 million at CL&P, ~~$3.2~~$126.2 million at NSTAR Electric, and ~~$17.0~~$46.0 million at PSNH, for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020.~~2021.

Base Distribution Revenues:

•CL&P's distribution revenues increased ~~$8.6 million due to the impact of its base distribution rate increase effective May 1, 2020.~~$0.3 million.

•NSTAR Electric's distribution revenues increased ~~$6.6 million due to the impact of its base distribution rate increase effective January 1, 2021.~~

•~~PSNH's distribution revenues increased $8.0~~$6.2 million due primarily to the impact of its base distribution rate increase effective January 1, ~~2021.~~2022 resulting from its annual Performance Based Rate Adjustment filing.

•PSNH's distribution revenues increased $3.2 million due primarily to the impact of its base distribution rate increase effective August 1, 2021 to reflect plant additions in calendar year 2020 included in its revenue requirement.

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

5150

Tracked revenues increased/(decreased) for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)	(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	CL&P		NSTAR Electric		PSNH
Retail Tariff Tracked Revenues:	Retail Tariff Tracked Revenues:							Retail Tariff Tracked Revenues:
Energy supply procurement	Energy supply procurement	$	2.4	$	(20.0)	$	(11.5)	Energy supply procurement	$	104.8	$	16.3	$	43.9
Retail transmission								Retail transmission	28.7		66.4		2.6
Other distribution tracking mechanisms	Other distribution tracking mechanisms	19.7		8.2		17.5		Other distribution tracking mechanisms	2.5		7.8		(14.2)
Wholesale Market Sales Revenue	Wholesale Market Sales Revenue	45.0		10.0		3.1		Wholesale Market Sales Revenue	170.2		33.5		12.7

The ~~decrease~~increase in energy supply procurement at CL&P and PSNH was driven primarily by higher average prices and higher average supply-related sales volumes. The increase in energy supply procurement at NSTAR Electric was driven primarily by ~~both lower~~higher average prices, ~~and~~partially offset by lower average supply-related sales volumes. ~~The decrease~~Fluctuations in ~~energy supply procurement at PSNH was~~retail transmission revenues are driven ~~primarily~~ by ~~lower average prices, partially offset~~the recovery of the costs of our wholesale transmission business, such as those billed by ~~higher average supply-related sales volumes.~~ISO-NE and Local and Regional Network Service charges. For further information, see "Purchased Power and Transmission Expense" below.

The increase in ~~the electric distribution~~ wholesale market sales revenue ~~at CL&P~~ was due primarily to higher average electricity market prices received for wholesale sales at CL&P, NSTAR Electric and PSNH for the three months ended March 31, 2022, as compared to the same period in 2021. ISO-NE average market prices received for CL&P’s wholesale sales increased approximately 117 percent for the three months ended March 31, 2022, as compared to the same period in 2021, driven primarily by higher natural gas prices in New England.The increase was also due tohigher wholesale sales at CL&P resulting from the sale of output generated by the Seabrook PPA beginning in the first quarter of 2021, as compared to the first quarter of 2020. ISO-NE average wholesale market prices increased approximately 125 percent comparatively, primarily driven by increased demand as a result of colder winter temperatures in 2021. 2022. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA that CL&P entered into in 2019, as required by regulation. CL&P sells the energy purchased from Millstone and Seabrook into the wholesale market and uses the proceeds from the energy sales to offset the contract costs. The net sales or net cost amount is refunded to, or recovered from, customers in the FMCC rate.

The increase in wholesale market sales revenues at CL&P, NSTAR Electric and PSNH was also driven by higher proceeds from a one-year sale of transmission rights, effective June 2021, under CL&P’s, NSTAR Electric’s and PSNH’s Hydro-Quebec transmission support agreements. Proceeds from these sales are credited back to customers.

Transmission Revenues: Transmission revenues increased ~~$14.4~~$13.4 million at CL&P, ~~$9.8~~$13.8 million at NSTAR Electric, and ~~$6.7~~$7.4 million at PSNH for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Eliminations: Eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission ~~business.~~business in rates charged to their customers. The impact of eliminations decreased revenues by ~~$2.3~~$21.2 million at CL&P, ~~$9.9~~$18.9 million at NSTAR Electric and ~~$5.8~~$10.0 million at PSNH for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020.~~2021.

Purchased Power and Transmission expense includes costs associated with purchasing electricity on behalf of CL&P, NSTAR Electric and PSNH's ~~customers.~~customers and the cost of energy purchase contracts, as required by regulation. These energy supply and other energy-related costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power and Transmission expense ~~decreased~~increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)	(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	CL&P		NSTAR Electric		PSNH
Purchased Power Costs	Purchased Power Costs	$	(1.7)	$	(6.3)	$	(10.3)	Purchased Power Costs	$	141.3	$	39.6	$	40.1
Transmission Costs	Transmission Costs	2.8		0.3		13.6		Transmission Costs	29.8		66.5		4.1
Eliminations	Eliminations	(2.5)		(9.9)		(5.8)		Eliminations	(20.9)		(18.9)		(10.0)
Total Purchased Power and Transmission	Total Purchased Power and Transmission	$	(1.4)	$	(15.9)	$	(2.5)	Total Purchased Power and Transmission	$	150.2	$	87.2	$	34.2

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

•The ~~decrease~~increase at CL&P ~~and PSNH~~ was due primarily to ~~lower~~higher expense related to the procurement of energy supply resulting from ~~lower~~higher average prices ~~partially offset by~~and higher average supply-related ~~sales volumes.~~volumes, and higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism.

•The ~~decrease~~increase at NSTAR Electric was due primarily to ~~lower~~ higher net metering costs and higher expense related to the procurement of energy supply resulting from ~~lower~~higher average prices, ~~and~~partially offset by lower average supply-related sales volumes.

•The increase at PSNH was due primarily to higher expense related to the procurement of energy supply resulting from higher average prices and higher average supply-related sales volumes, partially offset by lower stranded costs resulting from higher Regional Greenhouse Gas Initiative (RGGI) proceeds received, which are credited back to customers. The higher RGGI proceeds resulted from an increase in RGGI auction clearing prices for allowances in the three months ended March 31, 2022, as compared to the same period in 2021.

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

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

•~~The increase in transmission costs at NSTAR Electric~~ This was ~~primarily the result of an increase in costs billed by ISO-NE,~~ partially offset by a decrease in Local Network Service charges, which reflect the ~~retail~~cost of transmission ~~cost deferral.~~service provided by Eversource over our local transmission network.

•The increase in transmission costs at PSNH was due primarily ~~the result of~~to an increase in costs billed by ISO-NE that support regional grid investments, partially offset by a decrease resulting from the retail transmission cost deferral and ~~an increase~~a decrease in ~~costs billed by ISO-NE.~~Local Network Service charges.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense (decreased)/increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)	(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	CL&P		NSTAR Electric		PSNH
Base Electric Distribution (Non-Tracked Costs):	Base Electric Distribution (Non-Tracked Costs):							Base Electric Distribution (Non-Tracked Costs):
CL&P estimated assessment by PURA for Tropical Storm Isaias response		$	30.0	$	—	$	—
Employee-related expenses, including labor and benefits		3.2		4.3		(1.3)
Storm restoration costs		2.0		5.8		1.6
Operations-related expenses, including vegetation management, vehicles, and outside services		0.8		3.4		3.8
Shared corporate costs (including computer software depreciation at Eversource Service)		1.6		3.2		0.5
Absence in 2022 of CL&P charge for Tropical Storm Isaias response in 2021								Absence in 2022 of CL&P charge for Tropical Storm Isaias response in 2021	$	(30.0)	$	—	$	—
Funding of CL&P storm reserve as part of June 1, 2021 rate change (offset by lower Amortization expense)								Funding of CL&P storm reserve as part of June 1, 2021 rate change (offset by lower Amortization expense)	6.0		—		—
Storm costs								Storm costs	0.9		4.2		2.9
Operations-related expenses, including employee-related costs, vehicles, vegetation management and outside services								Operations-related expenses, including employee-related costs, vehicles, vegetation management and outside services	(5.1)		(2.7)		0.6
Other non-tracked operations and maintenance	Other non-tracked operations and maintenance	0.2		(0.5)		1.6		Other non-tracked operations and maintenance	3.4		7.8		0.9
Total Base Electric Distribution (Non-Tracked Costs)	Total Base Electric Distribution (Non-Tracked Costs)	37.8		16.2		6.2		Total Base Electric Distribution (Non-Tracked Costs)	(24.8)		9.3		4.4
Tracked Costs:	Tracked Costs:							Tracked Costs:
Transmission expenses	Transmission expenses	1.4		—		1.6		Transmission expenses	3.2		3.7		1.2
Other tracked operations and maintenance	Other tracked operations and maintenance	0.6		4.7		(0.2)		Other tracked operations and maintenance	3.3		8.7		(0.7)
Total Tracked Costs	Total Tracked Costs	2.0		4.7		1.4		Total Tracked Costs	6.5		12.4		0.5
Total Operations and Maintenance	Total Operations and Maintenance	$	39.8	$	20.9	$	7.6	Total Operations and Maintenance	$	(18.3)	$	21.7	$	4.9

Depreciation increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances.

Amortization of Regulatory Assets, Net expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates. Amortization of Regulatory Assets, Net ~~increased/decreased~~increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The increase at CL&P was due primarily to the deferral adjustment of energy supply, energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The increase was partially offset by a decrease in storm amortization expense related to the completion of the amortization period of certain storm cost deferred assets.

•The ~~decrease~~increase at NSTAR Electric was due to the deferral adjustment of energy supply, energy-related costs and other tracked costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.

•The ~~decrease~~increase at PSNH was due to the ~~impact in 2021 of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement, partially offset by the~~ deferral adjustment of energy-related and other tracked costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.

Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense ~~increased~~increased/decreased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The ~~increases~~increase at NSTAR Electric was due to the deferral adjustment, which reflects actual costs of energy efficiency programs compared to the estimated amounts billed to customers, and the timing of the recovery of energy efficiency costs.

•The decrease at PSNH ~~were~~was due to the deferral adjustment, which reflects actual costs of energy efficiency programs compared to the estimated amounts billed to customers, and the timing of the recovery of energy efficiency costs.

Taxes Other Than Income Taxes ~~increased~~increased/decreased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The ~~increase~~decrease at CL&P was related to lower gross earnings taxes partially offset by higher property taxes as a result of a higher utility plant ~~balance and higher gross earnings taxes.~~balance.

•The ~~increases~~increase at NSTAR Electric ~~and PSNH were~~was due to higher property taxes as a result of higher utility plant balances.

Interest Expense ~~increased~~increased/decreased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The increase at CL&P was due to ~~a decrease~~higher interest on long-term debt ($0.9 million) and higher interest expense on regulatory deferrals ($0.9 million), partially offset by an increase in AFUDC related to debt funds ($~~1.2 million) and higher interest on long-term debt ($0.8 million), partially offset by a decrease in interest expense on regulatory deferrals ($0.6~~0.2 million).

•The increase at NSTAR Electric was due to higher interest ~~on long-term debt ($2.9 million), partially offset by a decrease in interest~~ expense on regulatory deferrals ($~~1.0~~3.3 million).

•~~The increase at PSNH was due to~~, higher interest on long-term debt ($1.6 million), and a decrease in AFUDC related to debt funds ($~~0.5~~0.4 million).

•The decrease at PSNH was due to lower amortization of debt discounts and premiums, net ($0.8 million) and ~~higher interest on long-term debt ($0.5 million), partially offset by~~ a decrease in RRB interest expense ~~on regulatory deferrals~~ ($~~0.8~~0.3 million).

Other Income, Net increased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The increase at CL&P was due primarily to ~~investment income in 2021 compared to investment losses in 2020 driven by market volatility ($3.8 million) and~~ an increase related to pension, SERP and PBOP non-service income components ($~~1.6~~13.2 million), ~~partially offset by a decrease~~an increase in interest income primarily on regulatory deferrals ($1.2 million), and an increase in AFUDC related to equity funds ($~~2.2~~1.1 million), partially offset by investment losses in 2022 compared to investment income in 2021 driven by market volatility ($0.8 million).

•The increase at NSTAR Electric was due primarily to an increase related to pension, SERP and PBOP non-service income components ($~~2.2 million), investment income in 2021 compared to investment losses in 2020 driven by market volatility ($1.5~~10.9 million) and an increase in interest income primarily on regulatory deferrals ($3.4 million), partially offset by a decrease in AFUDC related to equity funds ($~~1.2~~1.3 million) and investment losses in 2022 compared to investment income in 2021 driven by market volatility ($0.5 million).

•The increase at PSNH was due primarily to an increase related to pension, SERP and PBOP non-service income components ($~~0.8 million), investment income in 2021 compared to investment losses in 2020 driven by market volatility ($0.6 million) and higher interest income ($0.4~~3.9 million), partially offset by a decrease in interest income primarily on regulatory deferrals ($0.4 million) and a decrease in AFUDC related to equity funds ($~~0.9~~0.2 million).

Income Tax Expense increased/decreased for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The increase at CL&P was due primarily to higher pre-tax earnings ($14.7 million) and higher state taxes ($~~1.8~~3.8 million), partially offset by an increase in amortization of EDIT ($0.5 million), the absence in 2022 of a valuation allowance increase in 2021 ($1.7 million), and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.7 million).

•The decrease at NSTAR Electric was due primarily to a decrease in pre-tax earnings ($0.8 million), lower state taxes ($0.1 million), and an increase in amortization of EDIT ($3.3 million), partially offset by lower share-based payment excess tax benefits ($~~0.8~~0.6 million)~~, an increase in a valuation allowance ($1.7 million),~~ and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~1.2 million), partially offset by lower pre-tax earnings ($3.9 million).~~

•The decrease at NSTAR Electric was due primarily to lower pre-tax earnings ($1.4 million) and lower state taxes ($0.6 million), partially offset by an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.9 million), and lower share-based payment excess tax benefits ($0.91.1 million).

•The increase at PSNH was due primarily to higher pre-tax earnings ($~~1.2~~0.4 million), higher state taxes ($0.6 million), and ~~lower share-based payment excess tax benefits~~a decrease in amortization of EDIT ($~~0.2~~1.4 million), partially offset by ~~lower state taxes ($0.1 million) and~~ a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~0.5~~1.2 million).

EARNINGS SUMMARY

CL&P's earnings ~~decreased $20.3~~increased $54.6 million for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to ~~an after-tax~~the absence in 2022 of the $30.0 million pre-tax charge ~~of $0.07 per share~~to earnings for the ~~accrual of a $30 million estimated assessment~~storm performance penalty imposed by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August ~~2020.~~2020 that was recorded in 2021. The after-tax impact of the storm performance penalty was $24.1 million. Earnings were also ~~unfavorably~~favorably impacted by higher operations and maintenance expense, higher depreciation expense, and higher property tax expense. The earnings decrease was partially offset by the base distribution rate increase effective May 1, 2020, higher earnings from its capital ~~tracker~~tracking mechanism due to increased electric system improvements, ~~and~~ an increase in transmission earnings driven by a higher transmission rate ~~base.~~base and lower pension plan expense. The earnings increase was partially offset by higher operations and maintenance expense, higher depreciation, higher property tax expense and higher interest expense.

NSTAR Electric's earnings decreased ~~$6.5~~$1.2 million for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to higher operations and maintenance expense driven by higher storm ~~restoration~~ costs, higher employee-related expenses due to timing of capital work (primarily related to meter installations) delayed as a result of increased storms and the impact of COVID-19, and higher operations-related expenses. Earnings were also unfavorably impacted by higher property taxdepreciation expense, and higher ~~depreciation~~interest expense. The earnings decrease was partially offset by the base distribution rate increase effective January 1, ~~2021,~~2022 and an increase in transmission earnings driven by a higher transmission rate base.

PSNH's earnings increased ~~$5.1~~$0.9 million for the three months ended March 31, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to an increase in transmission earnings driven by a higher transmission rate base, the base distribution rate increase effective ~~January~~August 1, 2021, and lower pension plan expense. The earnings increase was partially offset by the ~~impact~~absence in ~~2021~~2022 of a favorable impact of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement ~~and an increase~~that was recorded in ~~transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by~~2021, higher operations and maintenance expense driven primarily by higher storm costs, and higher depreciation ~~expense and higher property tax~~ expense.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of ~~$156.2~~$135.3 million for the three months ended March 31, ~~2021,~~2022, as compared to ~~$132.2~~$156.2 million in the same period of ~~2020.~~2021. The ~~increase~~decrease in operating cash flows was due primarily to an increase in regulatory under-recoveries driven by the timing of collections for regulatory tracking mechanisms and ~~the timing~~an increase of $23.9 million in cash payments ~~made on our accounts payable. Partially offsetting these favorable impacts were cash payments made~~for storm costs, customer credits being distributed to CL&P’s customers in the first quarter of 2022 as a result of the October 2021 settlement agreement and the 2021 storm performance penalty for ~~storm restoration costs of approximately $44 million related~~its response to Tropical Storm Isaias, the timing of cash collections on our accounts receivable, and the timing of other working capital items. These unfavorable impacts were partially offset by the timing of cash payments made on our accounts payable, the absence in 2022 of pension contributions of $18.9 million made in ~~the first quarter of~~2021, and a $14.5 million increase in income tax refunds received in 2022, as compared to 2021.

NSTAR Electric had cash flows provided by operating activities of ~~$172.6~~$189.9 million for the three months ended March 31, ~~2021,~~2022, as compared to ~~$61.7~~$172.6 million in the same period of ~~2020.~~2021. The increase in operating cash flows was due primarily to the timing of cash collections on our accounts receivable, ana $12.4 million increase ~~of $46.4 million~~ in income tax refunds received in ~~the first quarter of 2021,~~2022, as compared to 2021, and the ~~same period in 2020,~~timing of other working capital items. These favorable impacts were partially offset by the timing of cash payments made on our accounts payable, the timing of collections for regulatory tracking mechanisms, and ~~the timing~~$5.0 million of ~~other working capital items, including cash payments on our accounts payable.~~pension contributions made in 2022.

PSNH had cash flows provided by operating activities of ~~$74.9~~$58.1 million for the three months ended March 31, ~~2021,~~2022, as compared to ~~$58.5~~$74.9 million in the same period of ~~2020.~~2021. The ~~increase~~decrease in operating cash flows was due primarily to ~~income tax refunds received~~the timing of ~~$8.3 million in the first quarter of 2021, compared to income tax payments of $1.2 million in the same period of 2020,~~cash collections on our accounts receivable, the timing of collections for regulatory tracking mechanisms, ~~and~~ the timing of other working capital ~~items. Partially offsetting these favorable~~items, and a $6.5 million decrease in income tax refunds received in 2022, as compared to 2021. These unfavorable impacts were partially offset by the timing of cash payments made on our accounts payable.

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

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Information

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

Other Risk Management Activities

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

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

Our regulated companies are subject to credit risk from certain long-term or high-volume supply contracts with energy marketing companies. Our regulated companies manage the credit risk with these counterparties in accordance with established credit risk practices and monitor contracting risks, including credit risk. As of March 31, ~~2021,~~2022, our regulated companies held collateral (letters of credit or cash) of ~~$15.0~~$92.7 million from counterparties related to our standard service contracts. As of March 31, ~~2021,~~2022, Eversource had $34.6 million of cash posted with ISO-NE related to energy transactions.

We have provided additional disclosures regarding interest rate risk management and credit risk management in Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," in Eversource's ~~2020~~2021 Form 10-K, which is incorporated herein by reference. There have been no additional risks identified and no material changes with regard to the items previously disclosed in the Eversource ~~2020~~2021 Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Management, on behalf of Eversource, CL&P, NSTAR Electric and PSNH, evaluated the design and operation of the disclosure controls and procedures as of March 31, ~~2021~~2022 to determine whether they are effective in ensuring that the disclosure of required information is made timely and in accordance with the Securities Exchange Act of 1934 and the rules and regulations of the SEC. This evaluation was made under management's supervision and with management's participation, including the principal executive officer and principal financial officer as of the end of the period covered by this Quarterly Report on Form 10-Q. There are inherent limitations of disclosure controls and procedures, including the possibility of human error and the circumventing or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. The principal executive officer and principal financial officer have concluded, based on their review, that the disclosure controls and procedures of Eversource, CL&P, NSTAR Electric and PSNH are effective to ensure that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and regulations and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

There have been no changes in internal controls over financial reporting for Eversource, CL&P, NSTAR Electric and PSNH during the quarter ended March 31, ~~2021~~2022 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are parties to various legal proceedings. We have disclosed certain legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our ~~2020~~2021 Form 10-K. These disclosures are incorporated herein by reference. There have been no material legal proceedings identified and no material changes with regard to the legal proceedings previously disclosed in our ~~2020~~2021 Form 10-K.

ITEM 1A. RISK FACTORS

We are subject to a variety of significant risks in addition to the matters set forth under our forward-looking statements section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Quarterly Report on Form 10-Q. We have identified a number of these risk factors in Part I, Item 1A, "Risk Factors," in our ~~2020~~2021 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. There have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our ~~2020~~2021 Form 10-K.

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

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

Period Total Number of
Shares Purchased Average Price
Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2021 — $ — — —
February 1 - February 28, 2021 — — — —
March 1 - March 31, 2021 2,298 86.37 — —
Total 2,298 $ 86.37 — —


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2022	—	$	—	—	—
February 1 - February 28, 2022	—	—		—	—
March 1 - March 31, 2022	2,244	88.99		—	—
Total	2,244	$	88.99	—	—

ITEM 6. EXHIBITS

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


	Exhibit No.	Description

	Listing of Exhibits (Eversource)
*	4.1	~~Fourteenth~~Sixteenth Supplemental Indenture between Eversource Energy and The Bank of New York Trust Company, N.A., as Trustee, dated as of ~~March~~February 1, ~~2021,~~2022, relating to ~~$350~~(i) $650 million aggregate principal amount of Senior Notes, Series S,V, Due ~~2031~~2027 and (ii) $650 million aggregate principal amount of Senior Notes, Series W, Due 2032 (Exhibit 4.1, Eversource Energy Current Report on Form 8-K filed ~~March 16, 2021,~~February 25, 2022, File No. 001-05324)

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

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

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

	Listing of Exhibits (CL&P)
	31	Certification by the Chairman of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

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

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

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

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

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

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

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

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

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

	101.SCH	Inline XBRL Taxonomy Extension Schema

	101.CAL	Inline XBRL Taxonomy Extension Calculation

	101.DEF	Inline XBRL Taxonomy Extension Definition

	101.LAB	Inline XBRL Taxonomy Extension Labels

	101.PRE	Inline XBRL Taxonomy Extension Presentation

	104	The cover page from the Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2021,~~2022, formatted in Inline XBRL

SIGNATURE

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


	EVERSOURCE ENERGY

May ~~10, 2021~~6, 2022	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE


	THE CONNECTICUT LIGHT AND POWER COMPANY

May ~~10, 2021~~6, 2022	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE


	NSTAR ELECTRIC COMPANY

May ~~10, 2021~~6, 2022	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

SIGNATURE


	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

May ~~10, 2021~~6, 2022	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer












Three Months Ended 2020
Beginning Balance	$	143.3	$	81.5	$	224.8	$	80.1	$	17.2	$	97.3	$	43.9	$	31.5	$	75.4	$	10.5
ASU 2016-13 Implementation Impact on January 1, 2020	21.6		2.2		23.8		21.3		0.9		22.2		(1.6)		0.3		(1.3)		0.3
Uncollectible Expense	0		11.4		11.4		0		3.2		3.2		0		3.7		3.7		0.7
Uncollectible Costs Deferred (1)	11.8		8.5		20.3		12.9		1.8		14.7		(3.4)		3.4		0		1.3
Write-Offs	(4.7)		(16.8)		(21.5)		(3.8)		(3.5)		(7.3)		(0.4)		(8.0)		(8.4)		(1.7)
Recoveries Collected	0.2		3.1		3.3		0.2		0.6		0.8		0		1.7		1.7		0.1
Ending Balance	$	172.2	$	89.9	$	262.1	$	110.7	$	20.2	$	130.9	$	38.5	$	32.6	$	71.1	$	11.2