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	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
	FORM	10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended	September 30, ~~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: 001-05324

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

THE CONNECTICUT LIGHT AND POWER COMPANY

(a Connecticut corporation)

107 Selden Street, Berlin, Connecticut 06037-1616

Telephone: (800) 286-5000

Commission File Number: 000-00404

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

NSTAR ELECTRIC COMPANY

(a Massachusetts corporation)

800 Boylston Street, Boston, Massachusetts 02199

Telephone: (800) 286-5000

Commission File Number: 001-02301

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

(a New Hampshire corporation)

Energy Park

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

Telephone: (800) 286-5000

Commission File Number: 001-06392

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

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

Title of each 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 October 31, ~~2021~~2022

Eversource Energy Common Shares, $5.00 par value	~~343,805,812~~348,307,416	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~~			~~Bay State Wind LLC, an offshore wind business being developed jointly by Eversource and Denmark-based Ørsted~~
North East Offshore			North East Offshore, LLC, an offshore wind business ~~holding company~~ being developed jointly by Eversource and Denmark-based Ørsted
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	5

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

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

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

	Combined Notes to Condensed Financial Statements (Unaudited)	18

ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	42
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries	6158

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	6966

ITEM 4.	Controls and Procedures	6966

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	7067

ITEM 1A.	Risk Factors	7067

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7167

ITEM 6.	Exhibits	7268

SIGNATURES		7470

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	(Thousands of Dollars)	As of September 30, 2021		As of December 31, 2020		(Thousands of Dollars)	As of September 30, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	88,204	$	106,599	Cash	$	45,716	$	66,773
Receivables, Net (net of allowance for uncollectible accounts of $441,723 and $358,851 as of September 30, 2021 and December 31, 2020, respectively)		1,288,758		1,195,925
Cash Equivalents (Note 6)						Cash Equivalents (Note 6)	440,000		—
Receivables, Net (net of allowance for uncollectible accounts of $457,645 and $417,406 as of September 30, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $457,645 and $417,406 as of September 30, 2022 and December 31, 2021, respectively)	1,453,785		1,226,069
Unbilled Revenues	Unbilled Revenues	176,325		233,025		Unbilled Revenues	181,176		210,879
Fuel, Materials, Supplies and REC Inventory	Fuel, Materials, Supplies and REC Inventory	217,286		265,599		Fuel, Materials, Supplies and REC Inventory	322,216		267,547
Regulatory Assets	Regulatory Assets	1,016,304		1,076,556		Regulatory Assets	1,143,646		1,129,093
Prepayments		177,869		105,620
Other Current Assets		108,807		146,819

Prepayments and Other Current Assets						Prepayments and Other Current Assets	333,115		369,759
Total Current Assets	Total Current Assets	3,073,553		3,130,143		Total Current Assets	3,919,654		3,270,120
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	32,467,069		30,882,523		Property, Plant and Equipment, Net	35,029,497		33,377,650
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	5,458,928		5,493,330		Regulatory Assets	4,558,776		4,586,709
Goodwill	Goodwill	4,453,618		4,445,988		Goodwill	4,477,756		4,477,269
Investments in Unconsolidated Affiliates	Investments in Unconsolidated Affiliates	1,356,313		1,107,143		Investments in Unconsolidated Affiliates	2,053,404		1,436,293
Prepaid Pension and PBOP						Prepaid Pension and PBOP	561,012		271,987
Marketable Securities	Marketable Securities	466,628		456,617		Marketable Securities	377,183		460,347
Other Long-Term Assets	Other Long-Term Assets	737,946		583,854		Other Long-Term Assets	622,143		611,769
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	12,473,433		12,086,932		Total Deferred Debits and Other Assets	12,650,274		11,844,374
Total Assets	Total Assets	$	48,014,055	$	46,099,598	Total Assets	$	51,599,425	$	48,492,144

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable	Notes Payable	$	711,000	$	1,249,325	Notes Payable	$	401,500	$	1,505,450
Long-Term Debt – Current Portion	Long-Term Debt – Current Portion	798,880		1,053,186		Long-Term Debt – Current Portion	1,610,468		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	1,289,225		1,370,647		Accounts Payable	1,459,606		1,672,230

Regulatory Liabilities	Regulatory Liabilities	612,931		389,430		Regulatory Liabilities	988,714		602,432
Other Current Liabilities	Other Current Liabilities	802,831		809,214		Other Current Liabilities	983,663		830,620
Total Current Liabilities	Total Current Liabilities	4,258,077		4,915,012		Total Current Liabilities	5,487,161		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	4,341,105		4,095,339		Accumulated Deferred Income Taxes	4,830,158		4,597,120
Regulatory Liabilities	Regulatory Liabilities	3,907,582		3,850,781		Regulatory Liabilities	3,901,106		3,866,251
Derivative Liabilities	Derivative Liabilities	256,569		294,535		Derivative Liabilities	164,253		235,387
Asset Retirement Obligations	Asset Retirement Obligations	505,005		499,713		Asset Retirement Obligations	505,937		500,111
Accrued Pension, SERP and PBOP	Accrued Pension, SERP and PBOP	1,330,037		1,653,788		Accrued Pension, SERP and PBOP	159,217		242,463
Other Long-Term Liabilities	Other Long-Term Liabilities	974,497		948,506		Other Long-Term Liabilities	874,391		971,080
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	11,314,795		11,342,662		Total Deferred Credits and Other Liabilities	10,435,062		10,412,412
Long-Term Debt	Long-Term Debt	17,420,300		15,125,876		Long-Term Debt	19,831,967		17,023,577
Rate Reduction Bonds	Rate Reduction Bonds	453,702		496,912		Rate Reduction Bonds	410,492		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	1,799,920		1,789,092
Capital Surplus, Paid In	Capital Surplus, Paid In	8,050,872		8,015,663		Capital Surplus, Paid In	8,327,477		8,098,514
Retained Earnings	Retained Earnings	4,906,151		4,613,201		Retained Earnings	5,429,076		5,005,391
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss	(71,865)		(76,411)		Accumulated Other Comprehensive Loss	(41,006)		(42,275)
Treasury Stock	Treasury Stock	(262,639)		(277,979)		Treasury Stock	(236,294)		(250,878)
Common Shareholders' Equity	Common Shareholders' Equity	14,411,611		14,063,566		Common Shareholders' Equity	15,279,173		14,599,844
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	48,014,055	$	46,099,598	Total Liabilities and Capitalization	$	51,599,425	$	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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information)	(Thousands of Dollars, Except Share Information)	2021		2020		2021		2020		(Thousands of Dollars, Except Share Information)	2022		2021		2022		2021

Operating Revenues	Operating Revenues	$	2,432,794	$	2,343,642	$	7,381,172	$	6,670,497	Operating Revenues	$	3,215,645	$	2,432,794	$	9,259,596	$	7,381,172

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power, Fuel and Transmission	Purchased Power, Fuel and Transmission	880,639		806,254		2,529,217		2,312,957		Purchased Power, Fuel and Transmission	1,388,041		880,639		3,718,278		2,529,217
Operations and Maintenance	Operations and Maintenance	389,065		332,031		1,265,754		1,006,148		Operations and Maintenance	454,289		389,065		1,378,897		1,265,754
Depreciation	Depreciation	276,846		244,453		822,197		721,179		Depreciation	302,143		276,846		885,711		822,197
Amortization	Amortization	45,236		57,515		158,860		130,687		Amortization	111,287		45,236		418,644		158,860
Energy Efficiency Programs	Energy Efficiency Programs	143,796		145,047		460,814		408,794		Energy Efficiency Programs	162,545		143,796		498,708		460,814
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	213,881		197,112		623,827		556,726		Taxes Other Than Income Taxes	240,047		213,881		683,441		623,827
Total Operating Expenses	Total Operating Expenses	1,949,463		1,782,412		5,860,669		5,136,491		Total Operating Expenses	2,658,352		1,949,463		7,583,679		5,860,669
Operating Income	Operating Income	483,331		561,230		1,520,503		1,534,006		Operating Income	557,293		483,331		1,675,917		1,520,503
Interest Expense	Interest Expense	147,962		134,066		431,162		403,067		Interest Expense	178,174		147,962		491,509		431,162
Other Income, Net	Other Income, Net	43,768		29,218		124,588		83,565		Other Income, Net	89,831		43,768		255,253		124,588
Income Before Income Tax Expense	Income Before Income Tax Expense	379,137		456,382		1,213,929		1,214,504		Income Before Income Tax Expense	468,950		379,137		1,439,661		1,213,929
Income Tax Expense	Income Tax Expense	94,091		108,242		294,461		275,621		Income Tax Expense	117,661		94,091		349,305		294,461
Net Income	Net Income	285,046		348,140		919,468		938,883		Net Income	351,289		285,046		1,090,356		919,468
Net Income Attributable to Noncontrolling Interests	Net Income Attributable to Noncontrolling Interests	1,880		1,880		5,639		5,639		Net Income Attributable to Noncontrolling Interests	1,880		1,880		5,639		5,639
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	$	283,166	$	346,260	$	913,829	$	933,244	Net Income Attributable to Common Shareholders	$	349,409	$	283,166	$	1,084,717	$	913,829

Basic Earnings Per Common Share	Basic Earnings Per Common Share	$	0.82	$	1.01	$	2.66	$	2.77	Basic Earnings Per Common Share	$	1.01	$	0.82	$	3.13	$	2.66

Diluted Earnings Per Common Share	Diluted Earnings Per Common Share	$	0.82	$	1.01	$	2.65	$	2.76	Diluted Earnings Per Common Share	$	1.00	$	0.82	$	3.13	$	2.65

Weighted Average Common Shares Outstanding:	Weighted Average Common Shares Outstanding:									Weighted Average Common Shares Outstanding:
Basic	Basic	344,023,846		343,076,614		343,848,905		337,375,172		Basic	347,297,411		344,023,846		346,115,823		343,848,905
Diluted	Diluted	344,669,782		343,773,602		344,480,056		338,424,100		Diluted	347,762,693		344,669,782		346,573,101		344,480,056

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Net Income	Net Income	$	285,046	$	348,140	$	919,468	$	938,883	Net Income	$	351,289	$	285,046	$	1,090,356	$	919,468
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	115		602		967		1,218		Qualified Cash Flow Hedging Instruments	5		115		15		967
Changes in Unrealized (Losses)/Gains on Marketable Securities		(106)		(134)		(569)		295
Changes in Unrealized Losses on Marketable Securities										Changes in Unrealized Losses on Marketable Securities	(667)		(106)		(1,990)		(569)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	2,468		1,693		4,148		3,149		Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	2,520		2,468		3,244		4,148
Other Comprehensive Income, Net of Tax	Other Comprehensive Income, Net of Tax	2,477		2,161		4,546		4,662		Other Comprehensive Income, Net of Tax	1,858		2,477		1,269		4,546
Comprehensive Income Attributable to Noncontrolling Interests	Comprehensive Income Attributable to Noncontrolling Interests	(1,880)		(1,880)		(5,639)		(5,639)		Comprehensive Income Attributable to Noncontrolling Interests	(1,880)		(1,880)		(5,639)		(5,639)
Comprehensive Income Attributable to Common Shareholders	Comprehensive Income Attributable to Common Shareholders	$	285,643	$	348,421	$	918,375	$	937,906	Comprehensive Income Attributable to Common Shareholders	$	351,267	$	285,643	$	1,085,986	$	918,375

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)


		For the Nine Months Ended September 30, 2021														For the Nine Months Ended September 30, 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
Net Income	Net Income						266,400						266,400		Net Income						293,742						293,742
Dividends on Common Shares - $0.6025 Per Share							(206,893)						(206,893)
Dividends on Common Shares - $0.6375 Per Share															Dividends on Common Shares - $0.6375 Per Share						(219,877)						(219,877)
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															Issuance of Common Shares - $5 par value	1,392,804	6,964		121,142								128,106
Long-Term Incentive Plan Activity	Long-Term Incentive Plan Activity				6,162								6,162		Long-Term Incentive Plan Activity				9,070								9,070
Issuance of Treasury Shares	Issuance of Treasury Shares	166,805			10,679						3,120		13,799		Issuance of Treasury Shares	167,953			11,340						3,141		14,481

Other Comprehensive Income									881				881
Balance as of June 30, 2021		343,601,103	1,789,092		8,032,959		4,830,058		(74,342)		(265,878)		14,311,889
Capital Stock Expense															Capital Stock Expense				(1,824)								(1,824)
Other Comprehensive Loss															Other Comprehensive Loss								(1,293)				(1,293)
Balance as of June 30, 2022															Balance as of June 30, 2022	346,411,029	1,796,056		8,242,346		5,301,054		(42,864)		(239,377)		15,057,215
Net Income	Net Income						285,046						285,046		Net Income						351,289						351,289
Dividends on Common Shares - $0.6025 Per Share							(207,073)						(207,073)
Dividends on Common Shares - $0.6375 Per Share															Dividends on Common Shares - $0.6375 Per Share						(221,387)						(221,387)
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															Issuance of Common Shares - $5 par value	772,867	3,864		67,935								71,799
Long-Term Incentive Plan Activity	Long-Term Incentive Plan Activity				6,478								6,478		Long-Term Incentive Plan Activity				7,407								7,407
Issuance of Treasury Shares	Issuance of Treasury Shares	173,221			11,435						3,239		14,674		Issuance of Treasury Shares	164,853			10,762						3,083		13,845
Capital Stock Expense															Capital Stock Expense				(973)								(973)
Other Comprehensive Income	Other Comprehensive Income								2,477				2,477		Other Comprehensive Income								1,858				1,858
Balance as of September 30, 2021		343,774,324	$	1,789,092	$	8,050,872	$	4,906,151	$	(71,865)	$	(262,639)	$	14,411,611
Balance as of September 30, 2022															Balance as of September 30, 2022	347,348,749	$	1,799,920	$	8,327,477	$	5,429,076	$	(41,006)	$	(236,294)	$	15,279,173

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)

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


	For the Nine Months Ended September 30, 2021
	Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount
Balance as of January 1, 2021	342,954,023	$	1,789,092	$	8,015,663	$	4,613,201	$	(76,411)	$	(277,979)	$	14,063,566
Net Income						368,023						368,023
Dividends on Common Shares - $0.6025 Per Share						(206,913)						(206,913)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				(15,727)								(15,727)
Issuance of Treasury Shares	480,275			16,182						8,981		25,163
Other Comprehensive Income								1,188				1,188
Balance as of March 31, 2021	343,434,298	1,789,092		8,016,118		4,772,431		(75,223)		(268,998)		14,233,420
Net Income						266,400						266,400
Dividends on Common Shares - $0.6025 Per Share						(206,893)						(206,893)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				6,162								6,162

Issuance of Treasury Shares	166,805			10,679						3,120		13,799

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

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	919,468	$	938,883	Net Income	$	1,090,356	$	919,468
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	822,197		721,179		Depreciation	885,711		822,197
Deferred Income Taxes	Deferred Income Taxes	191,346		156,795		Deferred Income Taxes	170,752		191,346
Uncollectible Expense	Uncollectible Expense	39,690		31,101		Uncollectible Expense	40,753		39,690
Pension, SERP and PBOP (Income)/Expense, Net		(10,882)		9,153
Pension, SERP and PBOP Income, Net						Pension, SERP and PBOP Income, Net	(120,416)		(10,882)
Pension and PBOP Contributions	Pension and PBOP Contributions	(140,000)		(107,985)		Pension and PBOP Contributions	(80,000)		(140,000)
Regulatory Over/(Under) Recoveries, Net		87,455		(29,287)
Charges at CL&P related to PURA Settlement Agreement and Storm Performance Penalty		103,583		—
Regulatory (Under)/Over Recoveries, Net						Regulatory (Under)/Over Recoveries, Net	(32,193)		87,455
(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	(72,041)		103,583
Amortization	Amortization	158,860		130,687		Amortization	418,644		158,860

Cost of Removal Expenditures						Cost of Removal Expenditures	(284,706)		(138,730)
Other	Other	(229,878)		(69,216)		Other	(113,148)		(91,148)
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	(158,205)		(193,895)		Receivables and Unbilled Revenues, Net	(294,383)		(158,205)
Fuel, Materials, Supplies and REC Inventory		48,312		21,102

Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	44,003		89,759		Taxes Receivable/Accrued, Net	160,260		44,003
Accounts Payable	Accounts Payable	(258,509)		(121,034)		Accounts Payable	11,821		(258,509)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(97,167)		(81,033)		Other Current Assets and Liabilities, Net	(92,506)		(48,855)
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	1,520,273		1,496,209		Net Cash Flows Provided by Operating Activities	1,688,904		1,520,273

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(2,211,136)		(2,101,564)		Investments in Property, Plant and Equipment	(2,352,743)		(2,211,136)
Proceeds from Sales of Marketable Securities	Proceeds from Sales of Marketable Securities	334,619		386,712		Proceeds from Sales of Marketable Securities	340,660		334,619
Purchases of Marketable Securities	Purchases of Marketable Securities	(313,961)		(391,368)		Purchases of Marketable Securities	(313,714)		(313,961)
Proceeds from the Sale of Hingham Water System		—		110,536
Investments in Unconsolidated Affiliates, Net		(245,245)		(31,677)
Investments in Unconsolidated Affiliates						Investments in Unconsolidated Affiliates	(617,588)		(245,245)
Other Investing Activities	Other Investing Activities	17,436		17,647		Other Investing Activities	15,245		17,436
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(2,418,287)		(2,009,714)		Net Cash Flows Used in Investing Activities	(2,928,140)		(2,418,287)

Financing Activities:	Financing Activities:					Financing Activities:
Issuance of Common Shares, Net of Issuance Costs	Issuance of Common Shares, Net of Issuance Costs	—		929,025		Issuance of Common Shares, Net of Issuance Costs	197,108		—
Cash Dividends on Common Shares	Cash Dividends on Common Shares	(603,611)		(555,655)		Cash Dividends on Common Shares	(643,634)		(603,611)
Cash Dividends on Preferred Stock	Cash Dividends on Preferred Stock	(5,639)		(5,639)		Cash Dividends on Preferred Stock	(5,639)		(5,639)
Decrease in Notes Payable	Decrease in Notes Payable	(458,325)		(1,174,870)		Decrease in Notes Payable	(1,103,950)		(458,325)
Repayment of Rate Reduction Bonds	Repayment of Rate Reduction Bonds	(43,210)		(43,210)		Repayment of Rate Reduction Bonds	(43,210)		(43,210)
Issuance of Long-Term Debt	Issuance of Long-Term Debt	3,150,000		2,360,000		Issuance of Long-Term Debt	4,045,000		3,150,000
Retirement of Long-Term Debt	Retirement of Long-Term Debt	(1,142,500)		(302,236)		Retirement of Long-Term Debt	(775,000)		(1,142,500)
Other Financing Activities	Other Financing Activities	(45,522)		18,030		Other Financing Activities	(50,191)		(45,522)
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	851,193		1,225,445		Net Cash Flows Provided by Financing Activities	1,620,484		851,193
Net (Decrease)/Increase in Cash and Restricted Cash		(46,821)		711,940
Cash and Restricted Cash - Beginning of Period		264,950		117,063
Cash and Restricted Cash - End of Period		$	218,129	$	829,003
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash						Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash	381,248		(46,821)
Cash, Cash Equivalents and Restricted Cash - Beginning of Period						Cash, Cash Equivalents and Restricted Cash - Beginning of Period	221,008		264,950
Cash, Cash Equivalents and Restricted Cash - End of Period						Cash, Cash Equivalents and Restricted Cash - End of Period	$	602,256	$	218,129

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 September 30, 2021		As of December 31, 2020		(Thousands of Dollars)	As of September 30, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	62,791	$	90,801	Cash	$	14,289	$	55,804
Receivables, Net (net of allowance for uncollectible accounts of $195,463 and $157,447 as of September 30, 2021 and December 31, 2020, respectively)		549,144		459,214
Receivables, Net (net of allowance for uncollectible accounts of $198,599 and $181,319 as of September 30, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $198,599 and $181,319 as of September 30, 2022 and December 31, 2021, respectively)	645,489		447,774
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	38,544		17,486		Accounts Receivable from Affiliated Companies	76,512		43,944
Unbilled Revenues	Unbilled Revenues	52,589		57,407		Unbilled Revenues	49,511		56,787
Materials and Supplies	Materials and Supplies	54,894		57,924		Materials and Supplies	81,631		60,264
Regulatory Assets	Regulatory Assets	325,268		345,622		Regulatory Assets	305,556		371,609
Prepaid Property Taxes	Prepaid Property Taxes	76,829		25,779		Prepaid Property Taxes	79,067		24,261
Prepayments and Other Current Assets	Prepayments and Other Current Assets	47,402		58,171		Prepayments and Other Current Assets	37,667		95,996
Total Current Assets	Total Current Assets	1,207,461		1,112,404		Total Current Assets	1,289,722		1,156,439
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	10,598,836		10,234,556		Property, Plant and Equipment, Net	11,226,672		10,803,543
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	1,981,805		1,866,152		Regulatory Assets	1,632,875		1,713,161
Other Long-Term Assets	Other Long-Term Assets	267,312		242,862		Other Long-Term Assets	310,267		276,513
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	2,249,117		2,109,014		Total Deferred Debits and Other Assets	1,943,142		1,989,674
Total Assets	Total Assets	$	14,055,414	$	13,455,974	Total Assets	$	14,459,536	$	13,949,656

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	$	26,000	$	—
Long-Term Debt – Current Portion						Long-Term Debt – Current Portion	400,000		—
Accounts Payable	Accounts Payable	$	473,287	$	451,240	Accounts Payable	439,249		533,454
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	98,298		51,118		Accounts Payable to Affiliated Companies	95,708		132,578
Obligations to Third Party Suppliers		53,183		49,967

Regulatory Liabilities	Regulatory Liabilities	311,269		137,166		Regulatory Liabilities	434,465		266,489

Derivative Liabilities	Derivative Liabilities	72,249		68,767		Derivative Liabilities	78,564		73,528
Other Current Liabilities	Other Current Liabilities	168,547		102,060		Other Current Liabilities	209,253		141,955
Total Current Liabilities	Total Current Liabilities	1,176,833		860,318		Total Current Liabilities	1,683,239		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	1,495,407		1,408,343		Accumulated Deferred Income Taxes	1,562,256		1,562,102
Regulatory Liabilities	Regulatory Liabilities	1,213,469		1,204,942		Regulatory Liabilities	1,243,581		1,193,259
Derivative Liabilities	Derivative Liabilities	256,569		294,535		Derivative Liabilities	164,253		235,387
Accrued Pension, SERP and PBOP		313,206		478,325

Other Long-Term Liabilities	Other Long-Term Liabilities	154,249		133,690		Other Long-Term Liabilities	175,733		179,824
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	3,432,900		3,519,835		Total Deferred Credits and Other Liabilities	3,145,823		3,170,572
Long-Term Debt	Long-Term Debt	4,215,096		3,914,835		Long-Term Debt	3,816,229		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	3,210,765		3,010,765
Retained Earnings	Retained Earnings	2,243,004		2,173,367		Retained Earnings	2,426,765		2,228,133
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income	264		302		Accumulated Other Comprehensive Income	163		251
Common Stockholder's Equity	Common Stockholder's Equity	5,114,385		5,044,786		Common Stockholder's Equity	5,698,045		5,299,501
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	14,055,414	$	13,455,974	Total Liabilities and Capitalization	$	14,459,536	$	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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Operating Revenues	Operating Revenues	$	919,643	$	994,270	$	2,736,513	$	2,711,394	Operating Revenues	$	1,369,101	$	919,643	$	3,690,614	$	2,736,513

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	392,301		399,117		1,073,712		1,089,232		Purchased Power and Transmission	641,052		392,301		1,585,515		1,073,712
Operations and Maintenance	Operations and Maintenance	137,816		147,487		465,630		417,717		Operations and Maintenance	189,864		137,816		515,928		465,630
Depreciation	Depreciation	85,304		80,583		253,132		238,735		Depreciation	89,468		85,304		264,966		253,132
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	28,921		36,365		76,637		37,215		Amortization of Regulatory Assets, Net	105,825		28,921		318,347		76,637
Energy Efficiency Programs	Energy Efficiency Programs	35,714		41,829		100,810		109,655		Energy Efficiency Programs	37,934		35,714		103,111		100,810
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	99,901		97,715		275,178		260,571		Taxes Other Than Income Taxes	104,298		99,901		290,449		275,178
Total Operating Expenses	Total Operating Expenses	779,957		803,096		2,245,099		2,153,125		Total Operating Expenses	1,168,441		779,957		3,078,316		2,245,099
Operating Income	Operating Income	139,686		191,174		491,414		558,269		Operating Income	200,660		139,686		612,298		491,414
Interest Expense	Interest Expense	42,778		38,369		124,371		114,972		Interest Expense	42,391		42,778		125,152		124,371
Other Income, Net	Other Income, Net	6,903		5,917		21,690		16,273		Other Income, Net	21,927		6,903		61,290		21,690
Income Before Income Tax Expense	Income Before Income Tax Expense	103,811		158,722		388,733		459,570		Income Before Income Tax Expense	180,196		103,811		548,436		388,733
Income Tax Expense	Income Tax Expense	33,658		38,625		104,626		103,464		Income Tax Expense	36,909		33,658		126,334		104,626
Net Income	Net Income	$	70,153	$	120,097	$	284,107	$	356,106	Net Income	$	143,287	$	70,153	$	422,102	$	284,107

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

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Net Income	Net Income	$	70,153	$	120,097	$	284,107	$	356,106	Net Income	$	143,287	$	70,153	$	422,102	$	284,107
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)		(20)		(20)		Qualified Cash Flow Hedging Instruments	(7)		(7)		(20)		(20)
Changes in Unrealized (Losses)/Gains on Marketable Securities		(2)		(4)		(18)		11
Changes in Unrealized Losses on Marketable Securities										Changes in Unrealized Losses on Marketable Securities	(23)		(2)		(68)		(18)
Other Comprehensive Loss, Net of Tax	Other Comprehensive Loss, Net of Tax	(9)		(11)		(38)		(9)		Other Comprehensive Loss, Net of Tax	(30)		(9)		(88)		(38)
Comprehensive Income	Comprehensive Income	$	70,144	$	120,086	$	284,069	$	356,097	Comprehensive Income	$	143,257	$	70,144	$	422,014	$	284,069

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


		For the Nine Months Ended September 30, 2021																			For the Nine Months Ended September 30, 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
Net Income	Net Income								115,556								115,556			Net Income									125,838						125,838
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)
Other Comprehensive Income													3				3
Balance as of June 30, 2021		6,035,205	60,352		2,810,765				2,244,341				273				5,115,731
Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						100,000									100,000
Other Comprehensive Loss																				Other Comprehensive Loss												(23)			(23)
Balance as of June 30, 2022																				Balance as of June 30, 2022	6,035,205			60,352		3,210,765			2,357,968			193			5,629,278
Net Income	Net Income								70,153								70,153			Net Income									143,287						143,287
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)
Other Comprehensive Loss	Other Comprehensive Loss												(9)				(9)			Other Comprehensive Loss												(30)			(30)
Balance as of September 30, 2021		6,035,205	$	60,352	$	2,810,765			$	2,243,004			$	264			$	5,114,385
Balance as of September 30, 2022																				Balance as of September 30, 2022	6,035,205			$	60,352	$	3,210,765		$	2,426,765		$	163		$	5,698,045


		For the Nine Months Ended September 30, 2020																			For the Nine Months Ended September 30, 2021
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive Income				Total Common Stockholder's Equity				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, 2020		6,035,205	$	60,352			$	2,535,765							$	1,791,392			$	316		$	4,387,825
Balance as of January 1, 2021																				Balance as of January 1, 2021	6,035,205			$	60,352		$	2,810,765		$	2,173,367		$	302		$	5,044,786
Net Income	Net Income								118,738								118,738			Net Income									98,398						98,398
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								(69,500)								(69,500)			Dividends on Common Stock									(70,100)						(70,100)
Adoption of Accounting Standards Update 2016-13									(900)								(900)
Other Comprehensive Loss	Other Comprehensive Loss												(1)				(1)			Other Comprehensive Loss												(32)			(32)
Balance as of March 31, 2020		6,035,205	60,352		2,535,765				1,838,340				315				4,434,772
Balance as of March 31, 2021																				Balance as of March 31, 2021	6,035,205			60,352		2,810,765			2,200,275			270			5,071,662
Net Income	Net Income								117,271								117,271			Net Income									115,556						115,556
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)
Other Comprehensive Income	Other Comprehensive Income												3				3			Other Comprehensive Income												3			3
Balance as of June 30, 2020		6,035,205	60,352		2,535,765				1,954,221				318				4,550,656
Balance as of June 30, 2021																				Balance as of June 30, 2021	6,035,205			60,352		2,810,765			2,244,341			273			5,115,731
Net Income	Net Income								120,097								120,097			Net Income									70,153						70,153
Dividends on Preferred Stock	Dividends on Preferred Stock								(1,390)								(1,390)			Dividends on Preferred Stock									(1,390)						(1,390)
Capital Contributions from Eversource Parent					125,000												125,000
Dividends on Common Stock																				Dividends on Common Stock									(70,100)						(70,100)
Other Comprehensive Loss	Other Comprehensive Loss												(11)				(11)			Other Comprehensive Loss												(9)			(9)
Balance as of September 30, 2020		6,035,205	$	60,352	$	2,660,765			$	2,072,928			$	307			$	4,794,352
Balance as of September 30, 2021																				Balance as of September 30, 2021	6,035,205			$	60,352	$	2,810,765		$	2,243,004		$	264		$	5,114,385

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

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	284,107	$	356,106	Net Income	$	422,102	$	284,107
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	253,132		238,735		Depreciation	264,966		253,132
Deferred Income Taxes	Deferred Income Taxes	77,147		92,590		Deferred Income Taxes	(18,780)		77,147
Uncollectible Expense	Uncollectible Expense	10,183		10,013		Uncollectible Expense	10,816		10,183
Pension, SERP, and PBOP Expense, Net		4,478		8,629
Pension, SERP, and PBOP (Income)/Expense, Net						Pension, SERP, and PBOP (Income)/Expense, Net	(21,751)		4,478
Pension Contributions	Pension Contributions	(78,913)		(23,200)		Pension Contributions	—		(78,913)
Regulatory Underrecoveries, Net		(19,404)		(32,051)
Charges related to PURA Settlement Agreement and Storm Performance Penalty		103,583		—
Regulatory Under Recoveries, Net						Regulatory Under Recoveries, Net	(47,620)		(19,404)
(Customer Credits)/Reserve related to PURA Settlement Agreement and Storm Performance Penalty						(Customer Credits)/Reserve related to PURA Settlement Agreement and Storm Performance Penalty	(72,041)		103,583
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	76,637		37,215		Amortization of Regulatory Assets, Net	318,347		76,637
Cost of Removal Expenditures						Cost of Removal Expenditures	(54,145)		(54,264)
Other	Other	(74,179)		(63,525)		Other	(19,310)		(19,915)
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	(165,423)		(153,464)		Receivables and Unbilled Revenues, Net	(271,658)		(165,423)
Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	45,762		(1,515)		Taxes Receivable/Accrued, Net	106,737		45,762
Accounts Payable	Accounts Payable	(54,226)		(1,976)		Accounts Payable	273		(54,226)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(12,315)		(68,316)		Other Current Assets and Liabilities, Net	(63,682)		(12,315)
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	450,569		399,241		Net Cash Flows Provided by Operating Activities	554,254		450,569

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(563,234)		(609,690)		Investments in Property, Plant and Equipment	(608,966)		(563,234)
Other Investing Activities	Other Investing Activities	251		496		Other Investing Activities	513		251
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(562,983)		(609,194)		Net Cash Flows Used in Investing Activities	(608,453)		(562,983)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(210,300)		(69,500)		Cash Dividends on Common Stock	(219,300)		(210,300)
Cash Dividends on Preferred Stock	Cash Dividends on Preferred Stock	(4,169)		(4,169)		Cash Dividends on Preferred Stock	(4,169)		(4,169)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent	—		125,000		Capital Contributions from Eversource Parent	200,000		—
Issuance of Long-Term Debt	Issuance of Long-Term Debt	425,000		—		Issuance of Long-Term Debt	—		425,000

Retirement of Long-Term Debt	Retirement of Long-Term Debt	(120,500)		—		Retirement of Long-Term Debt	—		(120,500)
Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	—		172,100		Increase in Notes Payable to Eversource Parent	26,000		—
Other Financing Activities	Other Financing Activities	(5,664)		(1,214)		Other Financing Activities	—		(5,664)
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	84,367		222,217		Net Cash Flows Provided by Financing Activities	2,531		84,367
Net (Decrease)/Increase in Cash and Restricted Cash		(28,047)		12,264
Net Decrease in Cash and Restricted Cash						Net Decrease in Cash and Restricted Cash	(51,668)		(28,047)
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	$	71,762	$	17,235	Cash and Restricted Cash - End of Period	$	23,120	$	71,762

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 September 30, 2021		As of December 31, 2020		(Thousands of Dollars)	As of September 30, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	3,538	$	102	Cash	$	13,581	$	745
Receivables, Net (net of allowance for uncollectible accounts of $105,020 and $91,583 as of September 30, 2021 and December 31, 2020, respectively)		489,503		403,045
Cash Equivalents (Note 6)						Cash Equivalents (Note 6)	440,000		—
Receivables, Net (net of allowance for uncollectible accounts of $99,533 and $97,005 as of September 30, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $99,533 and $97,005 as of September 30, 2022 and December 31, 2021, respectively)	477,700		405,674
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	27,417		30,095		Accounts Receivable from Affiliated Companies	51,600		67,420
Unbilled Revenues	Unbilled Revenues	47,844		38,342		Unbilled Revenues	46,312		37,497
Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	83,667		133,894		Materials, Supplies and REC Inventory	90,456		116,712
Taxes Receivable	Taxes Receivable	—		65,051		Taxes Receivable	—		80,617
Regulatory Assets	Regulatory Assets	388,408		399,882		Regulatory Assets	387,333		443,956
Prepayments and Other Current Assets	Prepayments and Other Current Assets	22,490		21,833		Prepayments and Other Current Assets	25,898		22,397
Total Current Assets	Total Current Assets	1,062,867		1,092,244		Total Current Assets	1,532,880		1,175,018
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	10,611,728		10,123,062		Property, Plant and Equipment, Net	11,365,172		10,876,614
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	1,247,715		1,304,019		Regulatory Assets	1,257,884		1,135,231
Prepaid PBOP		224,244		204,138
Prepaid Pension and PBOP						Prepaid Pension and PBOP	519,059		441,426
Other Long-Term Assets	Other Long-Term Assets	185,555		162,836		Other Long-Term Assets	186,936		171,657
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	1,657,514		1,670,993		Total Deferred Debits and Other Assets	1,963,879		1,748,314
Total Assets	Total Assets	$	13,332,109	$	12,886,299	Total Assets	$	14,861,931	$	13,799,946

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable	Notes Payable	$	138,000	$	195,000	Notes Payable	$	—	$	162,500
Notes Payable to Eversource Parent	Notes Payable to Eversource Parent	24,600		21,300		Notes Payable to Eversource Parent	2,800		—
Long-Term Debt – Current Portion	Long-Term Debt – Current Portion	—		250,000		Long-Term Debt – Current Portion	400,000		400,000
Accounts Payable	Accounts Payable	338,369		383,558		Accounts Payable	399,669		490,915
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	78,974		95,703		Accounts Payable to Affiliated Companies	97,940		129,575
Obligations to Third Party Suppliers	Obligations to Third Party Suppliers	137,211		98,572		Obligations to Third Party Suppliers	168,845		116,273
Renewable Portfolio Standards Compliance Obligations	Renewable Portfolio Standards Compliance Obligations	72,124		127,536		Renewable Portfolio Standards Compliance Obligations	83,616		100,200
Regulatory Liabilities	Regulatory Liabilities	205,771		164,761		Regulatory Liabilities	368,044		228,248
Other Current Liabilities	Other Current Liabilities	118,747		72,118		Other Current Liabilities	132,919		84,303
Total Current Liabilities	Total Current Liabilities	1,113,796		1,408,548		Total Current Liabilities	1,653,833		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	1,494,976		1,459,906		Accumulated Deferred Income Taxes	1,647,513		1,579,508
Regulatory Liabilities	Regulatory Liabilities	1,561,572		1,550,390		Regulatory Liabilities	1,595,754		1,559,072
Accrued Pension and SERP		110,752		172,571

Other Long-Term Liabilities	Other Long-Term Liabilities	344,088		337,245		Other Long-Term Liabilities	291,093		347,934
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	3,511,388		3,520,112		Total Deferred Credits and Other Liabilities	3,534,360		3,486,514
Long-Term Debt	Long-Term Debt	3,984,724		3,393,221		Long-Term Debt	4,424,765		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	—		—		Common Stock	—		—
Capital Surplus, Paid In	Capital Surplus, Paid In	2,053,942		1,993,942		Capital Surplus, Paid In	2,303,942		2,253,942
Retained Earnings	Retained Earnings	2,624,784		2,527,167		Retained Earnings	2,901,666		2,718,576
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income	475		309		Accumulated Other Comprehensive Income	365		501
Common Stockholder's Equity	Common Stockholder's Equity	4,679,201		4,521,418		Common Stockholder's Equity	5,205,973		4,973,019
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	13,332,109	$	12,886,299	Total Liabilities and Capitalization	$	14,861,931	$	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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Operating Revenues	Operating Revenues	$	918,698	$	875,371	$	2,343,116	$	2,270,174	Operating Revenues	$	1,105,452	$	918,698	$	2,752,278	$	2,343,116

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	294,052		267,375		711,667		702,117		Purchased Power and Transmission	421,217		294,052		971,754		711,667
Operations and Maintenance	Operations and Maintenance	142,074		131,143		421,649		369,293		Operations and Maintenance	161,770		142,074		475,727		421,649
Depreciation	Depreciation	84,820		80,366		251,530		238,232		Depreciation	91,194		84,820		269,928		251,530
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	8,073		22,527		23,963		69,139		Amortization of Regulatory Assets, Net	15,940		8,073		65,307		23,963
Energy Efficiency Programs	Energy Efficiency Programs	86,699		85,244		226,071		210,666		Energy Efficiency Programs	105,708		86,699		255,230		226,071
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	54,723		54,680		163,501		153,985		Taxes Other Than Income Taxes	65,085		54,723		185,748		163,501
Total Operating Expenses	Total Operating Expenses	670,441		641,335		1,798,381		1,743,432		Total Operating Expenses	860,914		670,441		2,223,694		1,798,381
Operating Income	Operating Income	248,257		234,036		544,735		526,742		Operating Income	244,538		248,257		528,584		544,735
Interest Expense	Interest Expense	37,329		31,029		106,829		95,000		Interest Expense	41,829		37,329		119,035		106,829
Other Income, Net	Other Income, Net	20,215		12,802		58,941		38,152		Other Income, Net	37,895		20,215		101,385		58,941
Income Before Income Tax Expense	Income Before Income Tax Expense	231,143		215,809		496,847		469,894		Income Before Income Tax Expense	240,604		231,143		510,934		496,847
Income Tax Expense	Income Tax Expense	53,692		50,081		114,560		106,309		Income Tax Expense	52,520		53,692		110,674		114,560
Net Income	Net Income	$	177,451	$	165,728	$	382,287	$	363,585	Net Income	$	188,084	$	177,451	$	400,260	$	382,287

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Net Income	Net Income	$	177,451	$	165,728	$	382,287	$	363,585	Net Income	$	188,084	$	177,451	$	400,260	$	382,287
Other Comprehensive (Loss)/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	(40)		(43)		(122)		(129)		Changes in Funded Status of SERP Benefit Plan	(61)		(40)		(132)		(122)
Qualified Cash Flow Hedging Instruments	Qualified Cash Flow Hedging Instruments	5		109		293		327		Qualified Cash Flow Hedging Instruments	5		5		15		293
Changes in Unrealized (Losses)/Gains on Marketable Securities		(1)		(1)		(5)		2
Changes in Unrealized Losses on Marketable Securities										Changes in Unrealized Losses on Marketable Securities	(6)		(1)		(19)		(5)
Other Comprehensive (Loss)/Income, Net of Tax	Other Comprehensive (Loss)/Income, Net of Tax	(36)		65		166		200		Other Comprehensive (Loss)/Income, Net of Tax	(62)		(36)		(136)		166
Comprehensive Income	Comprehensive Income	$	177,415	$	165,793	$	382,453	$	363,785	Comprehensive Income	$	188,022	$	177,415	$	400,124	$	382,453

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


		For the Nine Months Ended September 30, 2021																			For the Nine Months Ended September 30, 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	$	—			$	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	—		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
Net Income	Net Income								110,912								110,912			Net Income									119,437						119,437
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Dividends on Common Stock	Dividends on Common Stock								(76,800)								(76,800)			Dividends on Common Stock									(71,900)						(71,900)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent				60,000												60,000			Capital Contributions from Eversource Parent						50,000									50,000
Other Comprehensive Income													141				141
Balance as of June 30, 2021		200	—		2,053,942				2,447,823				511				4,502,276
Other Comprehensive Loss																				Other Comprehensive Loss												(27)			(27)
Balance as of June 30, 2022																				Balance as of June 30, 2022	200			—		2,303,942			2,785,972			427			5,090,341
Net Income	Net Income								177,451								177,451			Net Income									188,084						188,084
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Dividends on Common Stock																				Dividends on Common Stock									(71,900)						(71,900)

Other Comprehensive Loss	Other Comprehensive Loss												(36)				(36)			Other Comprehensive Loss												(62)			(62)
Balance as of September 30, 2021		200	$	—	$	2,053,942			$	2,624,784			$	475			$	4,679,201
Balance as of September 30, 2022																				Balance as of September 30, 2022	200			$	—	$	2,303,942		$	2,901,666		$	365		$	5,205,973


		For the Nine Months Ended September 30, 2020																			For the Nine Months Ended September 30, 2021
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive Income				Total Common Stockholder's Equity				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, 2020		200	$	—			$	1,813,442							$	2,346,287			$	155		$	4,159,884
Balance as of January 1, 2021																				Balance as of January 1, 2021	200			$	—		$	1,993,942		$	2,527,167		$	309		$	4,521,418
Net Income	Net Income								100,390								100,390			Net Income									93,924						93,924
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Dividends on Common Stock	Dividends on Common Stock								(196,500)								(196,500)			Dividends on Common Stock									(206,400)						(206,400)
Adoption of Accounting Standards Update 2016-13									(161)								(161)
Other Comprehensive Income	Other Comprehensive Income												67				67			Other Comprehensive Income												61			61
Balance as of March 31, 2020		200	—		1,813,442				2,249,526				222				4,063,190
Balance as of March 31, 2021																				Balance as of March 31, 2021	200			—		1,993,942			2,414,201			370			4,408,513
Net Income	Net Income								97,468								97,468			Net Income									110,912						110,912
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Dividends on Common Stock																				Dividends on Common Stock									(76,800)						(76,800)
Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						60,000									60,000
Other Comprehensive Income	Other Comprehensive Income												68				68			Other Comprehensive Income												141			141
Balance as of June 30, 2020		200	—		1,813,442				2,346,504				290				4,160,236
Balance as of June 30, 2021																				Balance as of June 30, 2021	200			—		2,053,942			2,447,823			511			4,502,276
Net Income	Net Income								165,728								165,728			Net Income									177,451						177,451
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Other Comprehensive Income													65				65
Balance as of September 30, 2020		200	$	—	$	1,813,442			$	2,511,742			$	355			$	4,325,539
Other Comprehensive Loss																				Other Comprehensive Loss												(36)			(36)
Balance as of September 30, 2021																				Balance as of September 30, 2021	200			$	—	$	2,053,942		$	2,624,784		$	475		$	4,679,201

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	382,287	$	363,585	Net Income	$	400,260	$	382,287
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	251,530		238,232		Depreciation	269,928		251,530
Deferred Income Taxes	Deferred Income Taxes	12,905		13,436		Deferred Income Taxes	34,025		12,905
Uncollectible Expense	Uncollectible Expense	12,477		11,321		Uncollectible Expense	12,159		12,477
Pension, SERP and PBOP Income, Net	Pension, SERP and PBOP Income, Net	(19,627)		(13,714)		Pension, SERP and PBOP Income, Net	(41,790)		(19,627)
Pension Contributions	Pension Contributions	(10,000)		(650)		Pension Contributions	(15,000)		(10,000)
Regulatory Over/(Under) Recoveries, Net		86,111		(20,047)
Regulatory (Under)/Over Recoveries, Net						Regulatory (Under)/Over Recoveries, Net	(36,203)		86,111
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	23,963		69,139		Amortization of Regulatory Assets, Net	65,307		23,963
Cost of Removal Expenditures						Cost of Removal Expenditures	(33,467)		(36,521)
Payment of Withheld Property Taxes						Payment of Withheld Property Taxes	(76,084)		—
Other	Other	(71,005)		(25,508)		Other	(8,961)		(34,484)
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	(110,336)		(104,528)		Receivables and Unbilled Revenues, Net	(67,950)		(110,336)
Materials, Supplies and REC Inventory		50,227		27,709

Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	109,561		55,405		Taxes Receivable/Accrued, Net	122,467		109,561
Accounts Payable	Accounts Payable	(85,431)		(57,300)		Accounts Payable	(55,676)		(85,431)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(15,322)		(54,481)		Other Current Assets and Liabilities, Net	65,609		34,905
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	617,340		502,599		Net Cash Flows Provided by Operating Activities	634,624		617,340

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(675,245)		(655,039)		Investments in Property, Plant and Equipment	(691,940)		(675,245)
Other Investing Activities	Other Investing Activities	70		138		Other Investing Activities	143		70
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(675,175)		(654,901)		Net Cash Flows Used in Investing Activities	(691,797)		(675,175)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(283,200)		(196,500)		Cash Dividends on Common Stock	(215,700)		(283,200)
Cash Dividends on Preferred Stock	Cash Dividends on Preferred Stock	(1,470)		(1,470)		Cash Dividends on Preferred Stock	(1,470)		(1,470)
Issuance of Long-Term Debt	Issuance of Long-Term Debt	600,000		400,000		Issuance of Long-Term Debt	850,000		600,000
Retirement of Long-Term Debt	Retirement of Long-Term Debt	(250,000)		(95,000)		Retirement of Long-Term Debt	—		(250,000)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent	60,000		—		Capital Contributions from Eversource Parent	50,000		60,000
Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	3,300		6,300		Increase in Notes Payable to Eversource Parent	2,800		3,300
(Decrease)/Increase in Notes Payable		(57,000)		50,000
Decrease in Notes Payable						Decrease in Notes Payable	(162,500)		(57,000)
Other Financing Activities	Other Financing Activities	(10,367)		(4,931)		Other Financing Activities	(13,191)		(10,367)
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	61,263		158,399		Net Cash Flows Provided by Financing Activities	509,939		61,263
Net Increase in Cash and Restricted Cash		3,428		6,097
Cash and Restricted Cash - Beginning of Period		17,410		6,312
Cash and Restricted Cash - End of Period		$	20,838	$	12,409
Net Increase in Cash, Cash Equivalents and Restricted Cash						Net Increase in Cash, Cash Equivalents and Restricted Cash	452,766		3,428
Cash, Cash Equivalents and Restricted Cash - Beginning of Period						Cash, Cash Equivalents and Restricted Cash - Beginning of Period	18,179		17,410
Cash, Cash Equivalents and Restricted Cash - End of Period						Cash, Cash Equivalents and Restricted Cash - End of Period	$	470,945	$	20,838

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 September 30, 2021		As of December 31, 2020		(Thousands of Dollars)	As of September 30, 2022		As of December 31, 2021

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	3,869	$	141	Cash	$	2,171	$	15
Receivables, Net (net of allowance for uncollectible accounts of $16,996 and $17,157 as of September 30, 2021 and December 31, 2020, respectively)		136,481		119,899
Receivables, Net (net of allowance for uncollectible accounts of $28,820 and $24,331 as of September 30, 2022 and December 31, 2021, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $28,820 and $24,331 as of September 30, 2022 and December 31, 2021, respectively)	180,790		124,232
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	13,866		10,925		Accounts Receivable from Affiliated Companies	14,418		17,156
Unbilled Revenues	Unbilled Revenues	46,854		46,041		Unbilled Revenues	59,715		53,937

Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	24,789		26,829		Materials, Supplies and REC Inventory	38,041		25,930
Regulatory Assets	Regulatory Assets	97,948		115,852		Regulatory Assets	110,111		107,169
Special Deposits	Special Deposits	18,605		36,767		Special Deposits	18,721		31,390
Prepaid Property Taxes		5,987		26,257

Prepayments and Other Current Assets	Prepayments and Other Current Assets	2,851		10,788		Prepayments and Other Current Assets	3,789		22,109
Total Current Assets	Total Current Assets	351,250		393,499		Total Current Assets	427,756		381,938
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	3,529,050		3,374,270		Property, Plant and Equipment, Net	3,917,559		3,656,462
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	829,848		873,203		Regulatory Assets	618,720		679,182
Other Long-Term Assets	Other Long-Term Assets	22,684		23,733		Other Long-Term Assets	25,651		23,202
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	852,532		896,936		Total Deferred Debits and Other Assets	644,371		702,384
Total Assets	Total Assets	$	4,732,832	$	4,664,705	Total Assets	$	4,989,686	$	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	$	66,500	$	46,300	Notes Payable to Eversource Parent	$	139,700	$	110,600
Long-Term Debt – Current Portion		—		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	108,243		132,635		Accounts Payable	162,643		166,452
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	25,055		43,397		Accounts Payable to Affiliated Companies	27,032		43,485
Regulatory Liabilities	Regulatory Liabilities	96,817		58,756		Regulatory Liabilities	185,092		120,176

Other Current Liabilities	Other Current Liabilities	61,883		58,487		Other Current Liabilities	69,801		63,005
Total Current Liabilities	Total Current Liabilities	401,708		664,785		Total Current Liabilities	627,478		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	535,656		537,627		Accumulated Deferred Income Taxes	534,875		537,978
Regulatory Liabilities	Regulatory Liabilities	389,426		383,183		Regulatory Liabilities	381,294		381,366
Accrued Pension, SERP and PBOP		162,115		184,715

Other Long-Term Liabilities	Other Long-Term Liabilities	35,564		37,874		Other Long-Term Liabilities	42,453		64,264
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	1,122,761		1,143,399		Total Deferred Credits and Other Liabilities	958,622		983,608
Long-Term Debt	Long-Term Debt	1,163,630		817,070		Long-Term Debt	1,164,427		1,163,833
Rate Reduction Bonds	Rate Reduction Bonds	453,702		496,912		Rate Reduction Bonds	410,492		453,702
Common Stockholder's Equity:	Common Stockholder's Equity:					Common Stockholder's Equity:
Common Stock	Common Stock	—		—		Common Stock	—		—
Capital Surplus, Paid In	Capital Surplus, Paid In	1,088,134		928,134		Capital Surplus, Paid In	1,268,134		1,088,134
Retained Earnings	Retained Earnings	502,870		615,018		Retained Earnings	560,627		504,556
Accumulated Other Comprehensive Income/(Loss)		27		(613)
Accumulated Other Comprehensive (Loss)/Income						Accumulated Other Comprehensive (Loss)/Income	(94)		23
Common Stockholder's Equity	Common Stockholder's Equity	1,591,031		1,542,539		Common Stockholder's Equity	1,828,667		1,592,713
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)	0		0		Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	4,732,832	$	4,664,705	Total Liabilities and Capitalization	$	4,989,686	$	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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Operating Revenues	Operating Revenues	$	314,893	$	283,669	$	887,177	$	815,261	Operating Revenues	$	430,642	$	314,893	$	1,077,124	$	887,177

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	107,353		96,612		279,475		273,311		Purchased Power and Transmission	215,360		107,353		452,007		279,475
Operations and Maintenance	Operations and Maintenance	57,041		50,657		168,242		151,802		Operations and Maintenance	67,811		57,041		194,114		168,242
Depreciation	Depreciation	30,169		25,410		89,462		74,494		Depreciation	32,187		30,169		94,997		89,462
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	17,922		7,360		62,744		39,034		Amortization of Regulatory Assets, Net	7,398		17,922		43,449		62,744
Energy Efficiency Programs	Energy Efficiency Programs	10,762		11,081		30,475		29,231		Energy Efficiency Programs	11,142		10,762		28,678		30,475
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	24,038		18,174		69,639		58,331		Taxes Other Than Income Taxes	25,331		24,038		73,377		69,639
Total Operating Expenses	Total Operating Expenses	247,285		209,294		700,037		626,203		Total Operating Expenses	359,229		247,285		886,622		700,037
Operating Income	Operating Income	67,608		74,375		187,140		189,058		Operating Income	71,413		67,608		190,502		187,140
Interest Expense	Interest Expense	14,321		14,942		42,774		44,029		Interest Expense	15,030		14,321		43,432		42,774
Other Income, Net	Other Income, Net	3,171		4,065		11,598		10,882		Other Income, Net	8,073		3,171		23,365		11,598
Income Before Income Tax Expense	Income Before Income Tax Expense	56,458		63,498		155,964		155,911		Income Before Income Tax Expense	64,456		56,458		170,435		155,964
Income Tax Expense	Income Tax Expense	12,315		16,347		32,512		37,527		Income Tax Expense	13,009		12,315		36,364		32,512
Net Income	Net Income	$	44,143	$	47,151	$	123,452	$	118,384	Net Income	$	51,447	$	44,143	$	134,071	$	123,452

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		2021		2020		(Thousands of Dollars)	2022		2021		2022		2021

Net Income	Net Income	$	44,143	$	47,151	$	123,452	$	118,384	Net Income	$	51,447	$	44,143	$	134,071	$	123,452
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	109		268		673		806		Qualified Cash Flow Hedging Instruments	—		109		—		673
Changes in Unrealized (Losses)/Gains on Marketable Securities		(6)		(8)		(33)		17
Other Comprehensive Income, Net of Tax		103		260		640		823
Changes in Unrealized Losses on Marketable Securities										Changes in Unrealized Losses on Marketable Securities	(39)		(6)		(117)		(33)
Other Comprehensive (Loss)/Income, Net of Tax										Other Comprehensive (Loss)/Income, Net of Tax	(39)		103		(117)		640
Comprehensive Income	Comprehensive Income	$	44,246	$	47,411	$	124,092	$	119,207	Comprehensive Income	$	51,408	$	44,246	$	133,954	$	124,092

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)


		For the Nine Months Ended September 30, 2021																			For the Nine Months Ended September 30, 2022
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive (Loss)/Income				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	$	—			$	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	—		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
Net Income	Net Income								34,633								34,633			Net Income									37,038						37,038
Dividends on Common Stock	Dividends on Common Stock								(185,200)								(185,200)			Dividends on Common Stock									(26,000)						(26,000)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent				160,000												160,000			Capital Contributions from Eversource Parent						180,000									180,000
Other Comprehensive Income													282				282
Balance as of June 30, 2021		301	—		1,088,134				483,927				(76)				1,571,985
Other Comprehensive Loss																				Other Comprehensive Loss												(30)			(30)
Balance as of June 30, 2022																				Balance as of June 30, 2022	301			—		1,268,134			535,180			(55)			1,803,259
Net Income	Net Income								44,143								44,143			Net Income									51,447						51,447
Dividends on Common Stock	Dividends on Common Stock								(25,200)								(25,200)			Dividends on Common Stock									(26,000)						(26,000)
Other Comprehensive Income													103				103
Balance as of September 30, 2021		301	$	—	$	1,088,134			$	502,870			$	27			$	1,591,031
Other Comprehensive Loss																				Other Comprehensive Loss												(39)			(39)
Balance as of September 30, 2022																				Balance as of September 30, 2022	301			$	—	$	1,268,134		$	560,627		$	(94)		$	1,828,667


		For the Nine Months Ended September 30, 2020																			For the Nine Months Ended September 30, 2021
		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 (Loss)/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, 2020		301	$	—			$	903,134							$	490,306			$	(1,707)		$	1,391,733
Balance as of January 1, 2021																				Balance as of January 1, 2021	301			$	—		$	928,134		$	615,018		$	(613)		$	1,542,539
Net Income	Net Income								39,601								39,601			Net Income									44,676						44,676
Dividends on Common Stock	Dividends on Common Stock								(22,300)								(22,300)			Dividends on Common Stock									(25,200)						(25,200)
Adoption of Accounting Standards Update 2016-13									(300)								(300)
Other Comprehensive Income	Other Comprehensive Income												278				278			Other Comprehensive Income												255			255
Balance as of March 31, 2020		301	—		903,134				507,307				(1,429)				1,409,012
Balance as of March 31, 2021																				Balance as of March 31, 2021	301			—		928,134			634,494			(358)			1,562,270
Net Income	Net Income								31,632								31,632			Net Income									34,633						34,633
Dividends on Common Stock																				Dividends on Common Stock									(185,200)						(185,200)
Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						160,000									160,000
Other Comprehensive Income	Other Comprehensive Income												285				285			Other Comprehensive Income												282			282
Balance as of June 30, 2020		301	—		903,134				538,939				(1,144)				1,440,929
Balance as of June 30, 2021																				Balance as of June 30, 2021	301			—		1,088,134			483,927			(76)			1,571,985
Net Income	Net Income								47,151								47,151			Net Income									44,143						44,143
Dividends on Common Stock																				Dividends on Common Stock									(25,200)						(25,200)
Other Comprehensive Income	Other Comprehensive Income												260				260			Other Comprehensive Income												103			103
Balance as of September 30, 2020		301	$	—	$	903,134			$	586,090			$	(884)			$	1,488,340
Balance as of September 30, 2021																				Balance as of September 30, 2021	301			$	—	$	1,088,134		$	502,870		$	27		$	1,591,031

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2021		2020		(Thousands of Dollars)	2022		2021

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	123,452	$	118,384	Net Income	$	134,071	$	123,452
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	89,462		74,494		Depreciation	94,997		89,462
Deferred Income Taxes	Deferred Income Taxes	(13,385)		13,959		Deferred Income Taxes	(12,212)		(13,385)
Uncollectible Expense	Uncollectible Expense	4,381		2,058		Uncollectible Expense	8,060		4,381
Regulatory Over/(Under) Recoveries, Net		29,029		(22,203)
Pension, SERP and PBOP Income, Net						Pension, SERP and PBOP Income, Net	(12,269)		(2,664)
Regulatory Over Recoveries, Net						Regulatory Over Recoveries, Net	63,423		29,029
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	62,744		39,034		Amortization of Regulatory Assets, Net	43,449		62,744
Pension, SERP and PBOP Income, Net		(2,664)		(894)
Pension Contributions		—		(19,500)

Cost of Removal Expenditures						Cost of Removal Expenditures	(25,682)		(19,988)
Other	Other	(22,738)		(7,545)		Other	10,317		(2,750)
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	(25,607)		(24,562)		Receivables and Unbilled Revenues, Net	(66,751)		(25,607)
Materials, Supplies and REC Inventory		2,040		(301)

Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	22,286		1,313		Taxes Receivable/Accrued, Net	20,986		22,286
Accounts Payable	Accounts Payable	(42,654)		(29,388)		Accounts Payable	(3,969)		(42,654)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	10,826		4,363		Other Current Assets and Liabilities, Net	(7,681)		12,866
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	237,172		149,212		Net Cash Flows Provided by Operating Activities	246,739		237,172

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(217,414)		(248,899)		Investments in Property, Plant and Equipment	(346,318)		(217,414)
Other Investing Activities	Other Investing Activities	431		1,969		Other Investing Activities	879		431
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(216,983)		(246,930)		Net Cash Flows Used in Investing Activities	(345,439)		(216,983)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(235,600)		(22,300)		Cash Dividends on Common Stock	(78,000)		(235,600)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent	160,000		—		Capital Contributions from Eversource Parent	180,000		160,000
Issuance of Long-Term Debt	Issuance of Long-Term Debt	350,000		150,000		Issuance of Long-Term Debt	—		350,000
Retirement of Long-Term Debt	Retirement of Long-Term Debt	(282,000)		—		Retirement of Long-Term Debt	—		(282,000)
Repayment of Rate Reduction Bonds	Repayment of Rate Reduction Bonds	(43,210)		(43,210)		Repayment of Rate Reduction Bonds	(43,210)		(43,210)
Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	20,200		2,100		Increase in Notes Payable to Eversource Parent	29,100		20,200
Other Financing Activities	Other Financing Activities	(2,961)		(2,965)		Other Financing Activities	(70)		(2,961)
Net Cash Flows (Used in)/Provided by Financing Activities		(33,571)		83,625
Net Cash Flows Provided by/(Used in) Financing Activities						Net Cash Flows Provided by/(Used in) Financing Activities	87,820		(33,571)
Net Decrease in Cash and Restricted Cash	Net Decrease in Cash and Restricted Cash	(13,382)		(14,093)		Net Decrease in Cash and Restricted Cash	(10,880)		(13,382)
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	$	26,173	$	22,595	Cash and Restricted Cash - End of Period	$	24,246	$	26,173

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)~~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 9twelve 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 September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 and the cash flows for the nine months ended September 30, ~~2021~~2022 and ~~2020.~~2021. The results of operations and comprehensive income for the three and nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 and the cash flows for the nine months ended September 30, ~~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 has adversely affected customers, workers and the U.S. economy. We provide a critical service to our customers and have taken extensive measures to maintain its safety and reliability. We continue to address the impacts of the COVID-19 pandemic and how the related developments affect Eversource. We are in the re-entry phase of our pandemic response plan, in which the majority of our employees under remote work arrangements have transitioned back to the workplace. We have not experienced significant impacts directly related to the pandemic that have materially affected our current operations, our workforce, or results of operations. The extent of the impact to us in the future will vary, and depend on the duration, scope and severity of the pandemic and the resulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome of future proceedings before our state regulatory commissions to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses.

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

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

B. ~~Accounting Standards~~

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

C. Allowance for Uncollectible Accounts

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

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

The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including ~~the application of~~an 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 September 30, 2022 adequately reflected the collection risk and net realizable value for its receivables.

As of September 30, ~~2021, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic~~2022 and the related economic downturn. This evaluation included an analysis of collection and customer payment trends, economic conditions, delinquency statistics, aging-based quantitative assessments, the impact on residential customer bills because of energy usage and change in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, and COVID-19 developments, including any potential federal governmental pandemic relief programs and the expansion of unemployment benefit initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment.

This evaluation has shown that our operating companies have experienced an increase in aged receivables and lower cash collections from customers because of the length of the moratorium on disconnections in Connecticut and Massachusetts, and the economic slowdown resulting from the COVID-19 pandemic. In Connecticut, the moratorium on disconnections of commercial and non-hardship residential customers ended in June 2021 and September 2021, respectively, but is still in place for hardship residential customers. In Massachusetts, the moratorium on disconnections of commercial customers and residential customers ended in September 2020 and July 2021, respectively. Disconnection activities have resumed after these moratoria have expired, which has resulted in recent improved collection experience and more customers applying for, and receiving, hardship status. On July 7,December 31, 2021, the NHPUC issued an order to New Hampshire utilities that concluded that recovery of incremental bad debt or waived late fees related to the COVID-19 pandemic would be addressed in a future rate case to the extent those costs are relevant at that time. As a result of the order, in the first nine months of 2021, PSNH removed its $0.6 million deferral of net incremental COVID-19 costs. In New Hampshire, the moratorium on disconnections of non-hardship residential and commercial customers ended in late 2020 and for hardship residential customers ended in May 2021 and PSNH has resumed disconnection activities, which has resulted in improved collection of outstanding customer receivable balances.

~~Based upon the evaluation performed, in the first nine months of 2021, management increased the allowance for uncollectible accounts for amounts~~total amount incurred as a result of COVID-19 ~~by $25.8 million for Eversource (increase of $16.3 million for CL&P and $12.5 million at our natural gas businesses, and decrease of $1.8 million at NSTAR Electric). In~~included in the ~~third quarter of 2021, the COVID-19 related~~ allowance for uncollectible accounts ~~decreased by $6.5~~was $55.5 million and $55.3 million at Eversource, ~~(increased $4.0~~$19.7 million and $23.9 million at CL&P, and ~~decreased $8.3~~$4.1 million and $9.0 million at NSTAR Electric, respectively. At our Connecticut and ~~$2.2 million at our natural gas businesses). The~~Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs ~~at our Connecticut and Massachusetts utilities~~ or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. ~~As of September 30, 2021, the total amount incurred~~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, policies and practices in the ~~allowance for~~jurisdictions in which we operate, we believe the state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental uncollectible ~~accounts was $57.0 million at Eversource ($20.1 million at CL&P, $8.5 million at NSTAR Electric, and $27.4 million at our natural gas businesses).~~

Management concluded that the reserve balance as of September 30, 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 September 30th is as follows:


		Eversource						CL&P						NSTAR Electric						PSNH			Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	(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		(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 2021
Three Months Ended 2022																						Three Months Ended 2022
Beginning Balance	Beginning Balance	$	210.7	$	215.1	$	425.8	$	145.6	$	43.2	$	188.8	$	35.9	$	62.1	$	98.0	$	17.2	Beginning Balance	$	242.7	$	215.1	$	457.8	$	152.1	$	40.6	$	192.7	$	45.0	$	55.5	$	100.5	$	27.3
Uncollectible Expense	Uncollectible Expense	—		12.0		12.0		—		3.6		3.6		—		5.1		5.1		1.2		Uncollectible Expense	—		10.7		10.7		—		4.1		4.1		—		3.5		3.5		3.5
Uncollectible Costs Deferred (1)	Uncollectible Costs Deferred (1)	22.8		1.7		24.5		4.5		5.7		10.2		11.8		(3.5)		8.3		1.2		Uncollectible Costs Deferred (1)	15.6		9.4		25.0		11.3		2.0		13.3		2.8		4.0		6.8		0.1
Write-Offs	Write-Offs	(3.9)		(20.5)		(24.4)		(3.5)		(5.4)		(8.9)		(0.1)		(7.4)		(7.5)		(2.8)		Write-Offs	(6.5)		(33.2)		(39.7)		(5.0)		(7.7)		(12.7)		(0.3)		(12.3)		(12.6)		(2.3)
Recoveries Collected	Recoveries Collected	0.3		3.5		3.8		0.2		1.6		1.8		—		1.1		1.1		0.2		Recoveries Collected	0.3		3.5		3.8		0.2		1.0		1.2		—		1.3		1.3		0.2
Ending Balance	Ending Balance	$	229.9	$	211.8	$	441.7	$	146.8	$	48.7	$	195.5	$	47.6	$	57.4	$	105.0	$	17.0	Ending Balance	$	252.1	$	205.5	$	457.6	$	158.6	$	40.0	$	198.6	$	47.5	$	52.0	$	99.5	$	28.8

Nine Months Ended 2021
Nine Months Ended 2022																						Nine Months Ended 2022
Beginning Balance	Beginning Balance	$	194.8	$	164.1	$	358.9	$	129.1	$	28.3	$	157.4	$	39.7	$	51.9	$	91.6	$	17.2	Beginning Balance	$	226.1	$	191.3	$	417.4	$	144.6	$	36.7	$	181.3	$	43.3	$	53.7	$	97.0	$	24.3
Uncollectible Expense	Uncollectible Expense	—		39.7		39.7		—		10.2		10.2		—		12.5		12.5		4.4		Uncollectible Expense	—		40.8		40.8		—		10.8		10.8		—		12.2		12.2		8.1
Uncollectible Costs Deferred (1)	Uncollectible Costs Deferred (1)	44.8		53.3		98.1		25.7		21.4		47.1		8.3		11.8		20.1		2.0		Uncollectible Costs Deferred (1)	38.0		36.7		74.7		22.3		2.0		24.3		4.9		11.8		16.7		1.2
Write-Offs	Write-Offs	(10.6)		(55.2)		(65.8)		(8.7)		(14.8)		(23.5)		(0.4)		(22.6)		(23.0)		(7.3)		Write-Offs	(13.5)		(76.3)		(89.8)		(9.4)		(14.4)		(23.8)		(0.7)		(30.6)		(31.3)		(5.4)
Recoveries Collected	Recoveries Collected	0.9		9.9		10.8		0.7		3.6		4.3		—		3.8		3.8		0.7		Recoveries Collected	1.5		13.0		14.5		1.1		4.9		6.0		—		4.9		4.9		0.6
Ending Balance	Ending Balance	$	229.9	$	211.8	$	441.7	$	146.8	$	48.7	$	195.5	$	47.6	$	57.4	$	105.0	$	17.0	Ending Balance	$	252.1	$	205.5	$	457.6	$	158.6	$	40.0	$	198.6	$	47.5	$	52.0	$	99.5	$	28.8

Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other Receivables Total Allowance Hardship Accounts Retail (Non-Hardship),
Wholesale and Other Receivables Total Allowance Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other Receivables Total Allowance Total Allowance
Three Months Ended 2020
Beginning Balance $ 175.5 $ 94.5 $ 270.0 $ 116.3 $ 20.4 $ 136.7 $ 34.6 $ 34.1 $ 68.7 $ 11.8
Uncollectible Expense — 10.5 10.5 — 3.8 3.8 — 4.5 4.5 0.8
Uncollectible Costs Deferred (1)
10.1 20.4 30.5 11.2 4.9 16.1 (1.3) 10.4 9.1 3.2
Write-Offs (7.3) (11.8) (19.1) (2.6) (4.6) (7.2) (0.2) (6.3) (6.5) (2.0)
Recoveries Collected 0.4 2.7 3.1 0.3 1.1 1.4 — 1.0 1.0 0.2
Ending Balance $ 178.7 $ 116.3 $ 295.0 $ 125.2 $ 25.6 $ 150.8 $ 33.1 $ 43.7 $ 76.8 $ 14.0
Nine Months Ended 2020
Beginning Balance $ 143.3 $ 81.5 $ 224.8 $ 80.1 $ 17.2 $ 97.3 $ 43.9 $ 31.5 $ 75.4 $ 10.5
ASU 2016-13 Implementation
Impact on January 1, 2020 21.6 2.2 23.8 21.3 0.9 22.2 (1.6) 0.3 (1.3) 0.3
Uncollectible Expense — 31.1 31.1 — 10.0 10.0 — 11.3 11.3 2.1
Uncollectible Costs Deferred (1)
24.9 41.5 66.4 32.7 8.3 41.0 (8.4) 17.3 8.9 5.6
Write-Offs (12.3) (49.3) (61.6) (10.0) (14.0) (24.0) (0.8) (20.5) (21.3) (5.0)
Recoveries Collected 1.2 9.3 10.5 1.1 3.2 4.3 — 3.8 3.8 0.5
Ending Balance $ 178.7 $ 116.3 $ 295.0 $ 125.2 $ 25.6 $ 150.8 $ 33.1 $ 43.7 $ 76.8 $ 14.0


	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 2021
Beginning Balance	$	210.7	$	215.1	$	425.8	$	145.6	$	43.2	$	188.8	$	35.9	$	62.1	$	98.0	$	17.2
Uncollectible Expense	—		12.0		12.0		—		3.6		3.6		—		5.1		5.1		1.2
Uncollectible Costs Deferred (1)	22.8		1.7		24.5		4.5		5.7		10.2		11.8		(3.5)		8.3		1.2
Write-Offs	(3.9)		(20.5)		(24.4)		(3.5)		(5.4)		(8.9)		(0.1)		(7.4)		(7.5)		(2.8)
Recoveries Collected	0.3		3.5		3.8		0.2		1.6		1.8		—		1.1		1.1		0.2
Ending Balance	$	229.9	$	211.8	$	441.7	$	146.8	$	48.7	$	195.5	$	47.6	$	57.4	$	105.0	$	17.0

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

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

D. Other Income, Net

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


		For the Three Months Ended																	For the Three Months Ended
		September 30, 2021								September 30, 2020									September 30, 2022								September 30, 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
Pension, SERP and PBOP Non-Service Income Components		$	21.7	$	4.2	$	10.1	$	2.5	$	11.0	$	0.9	$	7.2	$	1.8
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion																		Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion	$	55.3	$	16.2	$	21.6	$	6.8	$	21.7	$	4.2	$	10.1	$	2.5
AFUDC Equity	AFUDC Equity	10.3		1.7		6.2		0.3		10.3		3.5		5.5		0.9		AFUDC Equity	12.6		3.7		6.5		0.7		10.3		1.7		6.2		0.3
Equity in Earnings of Unconsolidated Affiliates ~~(1)~~	Equity in Earnings of Unconsolidated Affiliates ~~(1)~~	4.9		—		0.1		—		3.9		—		0.1		—		Equity in Earnings of Unconsolidated Affiliates ~~(1)~~	3.8		—		0.1		—		4.9		—		0.1		—
Investment (Loss)/Income		(0.6)		(0.3)		(0.2)		(0.1)		1.0		1.3		(0.2)		0.2
Investment Income/(Loss)																		Investment Income/(Loss)	1.3		0.2		0.4		0.2		(0.6)		(0.3)		(0.2)		(0.1)
Interest Income	Interest Income	7.3		1.3		3.9		0.4		1.5		0.2		0.1		1.2		Interest Income	14.1		1.8		9.2		0.4		7.3		1.3		3.9		0.4
Gain on Sale of Property	Gain on Sale of Property	—		—		—		—		1.5		—		—		—		Gain on Sale of Property	2.5		—		—		—		—		—		—		—
Other	Other	0.2		—		0.1		0.1		—		—		0.1		—		Other	0.2		—		0.1		—		0.2		—		0.1		0.1
Total Other Income, Net	Total Other Income, Net	$	43.8	$	6.9	$	20.2	$	3.2	$	29.2	$	5.9	$	12.8	$	4.1	Total Other Income, Net	$	89.8	$	21.9	$	37.9	$	8.1	$	43.8	$	6.9	$	20.2	$	3.2

		For the Nine Months Ended																	For the Nine Months Ended
		September 30, 2021								September 30, 2020									September 30, 2022								September 30, 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
Pension, SERP and PBOP Non-Service Income Components		$	63.9	$	11.2	$	30.3	$	7.9	$	34.3	$	3.0	$	22.2	$	5.2
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion																		Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion	$	164.5	$	48.3	$	64.0	$	20.1	$	63.9	$	11.2	$	30.3	$	7.9
AFUDC Equity	AFUDC Equity	28.7		5.1		18.6		1.2		31.8		11.4		15.8		3.5		AFUDC Equity	33.7		9.3		17.5		1.7		28.7		5.1		18.6		1.2
Equity in Earnings of Unconsolidated Affiliates (1)	Equity in Earnings of Unconsolidated Affiliates (1)	13.3		—		0.3		—		13.8		—		0.4		—		Equity in Earnings of Unconsolidated Affiliates (1)	20.8		—		0.2		—		13.3		—		0.3		—
Investment Income/(Loss)	Investment Income/(Loss)	0.7		1.2		0.6		0.3		(1.5)		—		(1.5)		0.1		Investment Income/(Loss)	2.4		(0.9)		0.6		0.5		0.7		1.2		0.6		0.3
Interest Income	Interest Income	17.2		4.1		8.8		2.0		3.3		1.8		0.7		2.0		Interest Income	30.3		4.6		18.8		1.1		17.2		4.1		8.8		2.0
Gain on Sale of Property	Gain on Sale of Property	0.1		—		—		0.1		1.8		—		0.3		—		Gain on Sale of Property	2.7		—		—		—		0.1		—		—		0.1
Other	Other	0.7		0.1		0.3		0.1		0.1		0.1		0.3		0.1		Other	0.9		—		0.3		—		0.7		0.1		0.3		0.1
Total Other Income, Net	Total Other Income, Net	$	124.6	$	21.7	$	58.9	$	11.6	$	83.6	$	16.3	$	38.2	$	10.9	Total Other Income, Net	$	255.3	$	61.3	$	101.4	$	23.4	$	124.6	$	21.7	$	58.9	$	11.6

~~(1)~~(1) Equity in earnings of unconsolidated affiliates includes $12.2 million and $2.1 million of pre-tax unrealized gains associated with an investment in a renewable energy fund for the nine months ended September 30, ~~2021. For~~2022 and 2021, respectively.

E. Investments in Unconsolidated Affiliates

Investments in entities that are not consolidated are included in long-term assets on the ~~nine months ended September 30, 2020,~~balance sheets and earnings impacts from these equity investments are included in ~~earnings~~Other Income, Net on the statements of ~~unconsolidated affiliates~~income. Eversource's investments included ~~$2.4 million~~the following:


(Millions of Dollars)	Ownership Interest		As of September 30, 2022		As of December 31, 2021
Offshore Wind Business - North East Offshore	50	%	$	1,823.5	$	1,213.6
Natural Gas Pipeline - Algonquin Gas Transmission, LLC	15	%	119.6		121.9
Renewable Energy Investment Fund	90	%	84.5		76.5
Other	various		25.8		24.3
Total Investments in Unconsolidated Affiliates			$	2,053.4	$	1,436.3

Offshore Wind Business: Eversource’s offshore wind business includes a 50 percent ownership interest in North East Offshore, which holds PPAs and contracts for the Revolution Wind, South Fork Wind and Sunrise Wind projects, as well as an undeveloped offshore lease area. The offshore wind investment includes capital expenditures for the three offshore wind projects, as well as capitalized costs related to future development, acquisition costs of offshore lease areas, and capitalized interest. Cash flows used in investing activities presented in Investments in Unconsolidated Affiliates on the statements of cash flows primarily ~~realized gains associated with this~~relates to capital contributions in the offshore wind investment.

On May 4, 2022, Eversource announced that it had initiated a strategic review of its offshore wind investment portfolio. As part of that review, Eversource is exploring 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. In late July, Eversource started preliminary and targeted outreach to potential buyers. Eversource continues to work with potential buyers through this ongoing process and expects to complete this review during 2022. Eversource’s strategic review of its offshore wind investment does not impact the September 30, 2022 financial statements.

F. Other Taxes

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


		For the Three Months Ended				For the Nine Months Ended					For the Three Months Ended				For the Nine Months Ended
(Millions of Dollars)	(Millions of Dollars)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020		(Millions of Dollars)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Eversource	Eversource	$	49.4	$	48.4	$	137.9	$	129.1	Eversource	$	52.9	$	49.4	$	146.0	$	137.9
CL&P	CL&P	46.1		45.6		120.7		114.2		CL&P	49.2		46.1		126.0		120.7

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

G. Supplemental Cash Flow Information

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


(Millions of Dollars)	(Millions of Dollars)	As of September 30, 2021		As of September 30, 2020		(Millions of Dollars)	As of September 30, 2022		As of September 30, 2021
Eversource	Eversource	$	359.6	$	357.4	Eversource	$	394.1	$	359.6
CL&P	CL&P	75.3		97.8		CL&P	96.7		75.3
NSTAR Electric	NSTAR Electric	94.2		92.6		NSTAR Electric	94.5		94.2
PSNH	PSNH	32.8		50.0		PSNH	49.7		32.8

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


		As of September 30, 2021								As of December 31, 2020									As of September 30, 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		$	88.2	$	62.8	$	3.5	$	3.9	$	106.6	$	90.8	$	0.1	$	0.1
Cash and Cash Equivalents as reported on the Balance Sheets																		Cash and Cash Equivalents as reported on the Balance Sheets	$	485.7	$	14.3	$	453.6	$	2.2	$	66.8	$	55.8	$	0.7	$	—
Restricted cash included in:	Restricted cash included in:																	Restricted cash included in:
Special Deposits	Special Deposits	55.5		8.7		17.2		18.6		73.6		8.7		17.2		36.8		Special Deposits	76.5		8.7		17.3		18.7		78.2		18.7		17.4		31.4
Marketable Securities	Marketable Securities	29.7		0.3		0.1		0.5		41.2		0.3		0.1		0.6		Marketable Securities	20.8		0.1		—		0.1		31.3		0.3		0.1		0.5
Other Long-Term Assets	Other Long-Term Assets	44.7		—		—		3.2		43.6		—		—		2.1		Other Long-Term Assets	19.3		—		—		3.2		44.7		—		—		3.2
Cash and Restricted Cash as reported on the Statements of Cash Flows		$	218.1	$	71.8	$	20.8	$	26.2	$	265.0	$	99.8	$	17.4	$	39.6
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows																		Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows	$	602.3	$	23.1	$	470.9	$	24.2	$	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 September 30, 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 September 30, 2021 As of December 31, 2020
(Millions of Dollars) Eversource CL&P NSTAR
Electric PSNH Eversource CL&P NSTAR
Electric PSNH
Benefit Costs $ 2,566.1 $ 540.2 $ 638.4 $ 249.7 $ 2,794.2 $ 632.3 $ 690.0 $ 267.6
Income Taxes, Net 756.4 458.1 113.8 18.7 747.1 458.9 110.4 15.2
Securitized Stranded Costs 489.7 — — 489.7 522.1 — — 522.1
Storm Restoration Costs, Net 944.2 674.2 198.1 71.9 765.6 515.1 186.4 64.1
Regulatory Tracker Mechanisms 883.0 304.6 320.0 76.8 850.5 246.6 332.2 95.3
Derivative Liabilities 265.3 265.3 — — 296.3 293.1 — —
Goodwill-related 302.0 — 259.3 — 314.7 — 270.2 —
Asset Retirement Obligations 121.6 33.7 57.8 4.0 118.4 32.1 58.6 3.9
Other Regulatory Assets 146.9 31.0 48.7 16.9 161.0 33.7 56.1 20.9
Total Regulatory Assets 6,475.2 2,307.1 1,636.1 927.7 6,569.9 2,211.8 1,703.9 989.1
Less: Current Portion 1,016.3 325.3 388.4 97.9 1,076.6 345.6 399.9 115.9
Total Long-Term Regulatory Assets $ 5,458.9 $ 1,981.8 $ 1,247.7 $ 829.8 $ 5,493.3 $ 1,866.2 $ 1,304.0 $ 873.2

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


	As of September 30, 2022								As of December 31, 2021
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Benefit Costs	$	1,408.9	$	263.3	$	389.0	$	114.6	$	1,481.0	$	272.4	$	395.5	$	118.9
Storm Costs, Net	1,243.9		722.5		459.9		61.5		1,102.7		695.6		341.3		65.8
Regulatory Tracking Mechanisms	941.2		214.4		339.0		70.4		1,050.5		333.6		376.6		85.4
Income Taxes, Net	808.5		480.0		114.5		17.4		790.7		470.5		112.6		17.5
Securitized Stranded Costs	446.5		—		—		446.5		478.9		—		—		478.9
Goodwill-related	285.2		—		244.8		—		297.8		—		255.7		—
Derivative Liabilities	195.9		195.9		—		—		249.2		249.2		—		—
Asset Retirement Obligations	124.3		35.3		66.0		4.3		115.0		33.6		59.8		4.1
Other Regulatory Assets	248.0		27.1		32.0		14.1		150.0		29.9		37.7		15.8
Total Regulatory Assets	5,702.4		1,938.5		1,645.2		728.8		5,715.8		2,084.8		1,579.2		786.4
Less: Current Portion	1,143.6		305.6		387.3		110.1		1,129.1		371.6		444.0		107.2
Total Long-Term Regulatory Assets	$	4,558.8	$	1,632.9	$	1,257.9	$	618.7	$	4,586.7	$	1,713.2	$	1,135.2	$	679.2

Regulatory Costs in Long-Term Assets: Eversource's regulated companies had ~~$260.6~~$288.9 million (including ~~$111.2~~$121.0 million for CL&P, ~~$85.1~~$94.6 million for NSTAR Electric and ~~$3.2~~$2.8 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 September 30, ~~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 September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, these regulatory costs included ~~net~~ incremental COVID-19 related ~~costs~~non-tracked uncollectible expense deferred of ~~$41.3~~$34.6 million and ~~$24.0~~$33.0 million at Eversource, ~~respectively, of which, $34.5~~$16.5 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 $2.2 million and $6.1 million at NSTAR Electric, totaled $15.9 million and $10.9 million, respectively, as of September 30, 2021, and $4.7 million and $11.9 million, respectively, as of December 31, 2020, and primarily related to deferred non-tracked uncollectible expense.respectively.

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


		As of September 30, 2021								As of December 31, 2020									As of September 30, 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	$	2,737.1	$	1,001.5	$	1,025.6	$	363.9	$	2,778.6	$	1,010.7	$	1,044.0	$	371.5	EDIT due to Tax Cuts and Jobs Act of 2017	$	2,629.0	$	986.1	$	952.6	$	350.0	$	2,685.2	$	996.1	$	984.5	$	359.2
Cost of Removal	Cost of Removal	676.7		117.0		384.1		19.0		624.8		98.4		363.6		12.9		Cost of Removal	654.5		122.4		418.3		19.3		649.6		100.1		381.0		17.2
Regulatory Tracking Mechanisms																		Regulatory Tracking Mechanisms	957.4		455.7		326.2		165.1		448.4		182.0		185.1		107.0
Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP																		Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP	240.3		28.9		127.5		25.3		148.3		12.0		90.7		14.9
Benefit Costs	Benefit Costs	65.9		—		56.5		—		83.6		—		72.5		—		Benefit Costs	110.9		—		88.1		—		133.5		—		107.4		—
Regulatory Tracker Mechanisms		484.5		208.9		180.6		87.5		366.5		148.9		139.7		47.8
AFUDC - Transmission	AFUDC - Transmission	79.6		43.6		36.0		—		76.8		44.6		32.2		—		AFUDC - Transmission	93.1		46.4		46.7		—		81.0		43.2		37.8		—
CL&P Settlement Agreement and Storm Performance Penalty	CL&P Settlement Agreement and Storm Performance Penalty	103.4		103.4		—		—		—		—		—		—		CL&P Settlement Agreement and Storm Performance Penalty	—		—		—		—		81.3		81.3		—		—
Other Regulatory Liabilities	Other Regulatory Liabilities	373.3		50.4		84.6		15.8		309.9		39.5		63.2		9.8		Other Regulatory Liabilities	204.6		38.6		4.4		6.7		241.4		45.1		0.8		3.3
Total Regulatory Liabilities	Total Regulatory Liabilities	4,520.5		1,524.8		1,767.4		486.2		4,240.2		1,342.1		1,715.2		442.0		Total Regulatory Liabilities	4,889.8		1,678.1		1,963.8		566.4		4,468.7		1,459.8		1,787.3		501.6
Less: Current Portion	Less: Current Portion	612.9		311.3		205.8		96.8		389.4		137.2		164.8		58.8		Less: Current Portion	988.7		434.5		368.0		185.1		602.4		266.5		228.2		120.2
Total Long-Term Regulatory Liabilities	Total Long-Term Regulatory Liabilities	$	3,907.6	$	1,213.5	$	1,561.6	$	389.4	$	3,850.8	$	1,204.9	$	1,550.4	$	383.2	Total Long-Term Regulatory Liabilities	$	3,901.1	$	1,243.6	$	1,595.8	$	381.3	$	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 $234 million at CL&P and $251 million at Eversource as of September 30, 2021. The estimated cost of restoration may continue to change as additional cost information becomes available and final post-storm costs are deferred or capitalized. Although PURA found that CL&P’s performance in its preparation for and response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While it is possible that some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. Eversource and CL&P continue to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm cost review by PURA to have a material impact on the financial position or results of operations of Eversource or CL&P.

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

3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

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


Eversource	Eversource	As of September 30, 2021		As of December 31, 2020		Eversource	As of September 30, 2022		As of December 31, 2021
(Millions of Dollars)	(Millions of Dollars)					(Millions of Dollars)
Distribution - Electric	Distribution - Electric	$	17,257.3	$	16,703.2	Distribution - Electric	$	18,132.2	$	17,679.1
Distribution - Natural Gas	Distribution - Natural Gas	6,334.9		6,111.2		Distribution - Natural Gas	7,020.1		6,694.8
Transmission - Electric	Transmission - Electric	12,396.2		11,954.0		Transmission - Electric	13,371.2		12,882.4
Distribution - Water	Distribution - Water	1,771.1		1,743.1		Distribution - Water	1,971.1		1,900.9
Solar	Solar	200.4		201.5		Solar	200.9		200.9
Utility	Utility	37,959.9		36,713.0		Utility	40,695.5		39,358.1
Other (1)	Other (1)	1,430.5		1,269.0		Other (1)	1,663.4		1,469.5
Property, Plant and Equipment, Gross	Property, Plant and Equipment, Gross	39,390.4		37,982.0		Property, Plant and Equipment, Gross	42,358.9		40,827.6
Less: Accumulated Depreciation	Less: Accumulated Depreciation					Less: Accumulated Depreciation
Utility	Utility	(8,830.2)		(8,476.3)		Utility	(9,070.0)		(8,885.2)
Other	Other	(550.0)		(477.6)		Other	(672.9)		(580.1)
Total Accumulated Depreciation	Total Accumulated Depreciation	(9,380.2)		(8,953.9)		Total Accumulated Depreciation	(9,742.9)		(9,465.3)
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	30,010.2		29,028.1		Property, Plant and Equipment, Net	32,616.0		31,362.3
Construction Work in Progress	Construction Work in Progress	2,456.9		1,854.4		Construction Work in Progress	2,413.5		2,015.4
Total Property, Plant and Equipment, Net	Total Property, Plant and Equipment, Net	$	32,467.1	$	30,882.5	Total Property, Plant and Equipment, Net	$	35,029.5	$	33,377.7


		As of September 30, 2021						As of December 31, 2020							As of September 30, 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	$	7,028.9	$	7,798.8	$	2,469.9	$	6,820.7	$	7,544.4	$	2,378.4	Distribution - Electric	$	7,297.2	$	8,329.1	$	2,546.2	$	7,117.6	$	8,105.5	$	2,496.2
Transmission - Electric	Transmission - Electric	5,707.9		4,884.0		1,805.9		5,512.0		4,701.3		1,742.4		Transmission - Electric	6,022.8		5,243.3		2,106.8		5,859.0		5,090.5		1,934.6
Solar	Solar	—		200.4		—		—		201.5		—		Solar	—		200.9		—		—		200.9		—
Property, Plant and Equipment, Gross	Property, Plant and Equipment, Gross	12,736.8		12,883.2		4,275.8		12,332.7		12,447.2		4,120.8		Property, Plant and Equipment, Gross	13,320.0		13,773.3		4,653.0		12,976.6		13,396.9		4,430.8
Less: Accumulated Depreciation	Less: Accumulated Depreciation	(2,574.6)		(3,220.7)		(895.4)		(2,475.4)		(3,074.1)		(848.9)		Less: Accumulated Depreciation	(2,571.5)		(3,322.3)		(908.2)		(2,572.1)		(3,227.3)		(908.4)
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	10,162.2		9,662.5		3,380.4		9,857.3		9,373.1		3,271.9		Property, Plant and Equipment, Net	10,748.5		10,451.0		3,744.8		10,404.5		10,169.6		3,522.4
Construction Work in Progress	Construction Work in Progress	436.6		949.2		148.7		377.3		750.0		102.4		Construction Work in Progress	478.2		914.2		172.8		399.0		707.0		134.1
Total Property, Plant and Equipment, Net	Total Property, Plant and Equipment, Net	$	10,598.8	$	10,611.7	$	3,529.1	$	10,234.6	$	10,123.1	$	3,374.3	Total Property, Plant and Equipment, Net	$	11,226.7	$	11,365.2	$	3,917.6	$	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 September 30, 2021 As of December 31, 2020
(Millions of Dollars) Fair Value Hierarchy Commodity Supply and Price Risk
Management
Netting (1)
Net Amount
Recorded as a Derivative Commodity Supply and Price Risk
Management
Netting (1)
Net Amount
Recorded as
a Derivative
Current Derivative Assets:
CL&P Level 3 $ 14.4 $ (0.4) $ 14.0 $ 13.7 $ (0.4) $ 13.3
Long-Term Derivative Assets:
CL&P Level 3 51.1 (1.6) 49.5 58.7 (1.8) 56.9
Current Derivative Liabilities:
CL&P Level 3 (72.2) — (72.2) (68.8) — (68.8)
Other Level 2 — — — (3.3) 0.1 (3.2)
Long-Term Derivative Liabilities:
CL&P Level 3 (256.6) — (256.6) (294.5) — (294.5)


		As of September 30, 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	$	15.7	$	(0.5)	$	15.2	$	14.7	$	(1.0)	$	13.7
Long-Term Derivative Assets	Level 3	32.8		(1.0)		31.8		46.9		(0.9)		46.0
Current Derivative Liabilities	Level 3	(78.6)		—		(78.6)		(73.5)		—		(73.5)
Long-Term Derivative Liabilities	Level 3	(164.3)		—		(164.3)		(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.

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management: As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined capacities of these contracts as of both September 30, ~~2021~~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 December 31, 2020, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of 8.9 million MMBtu of natural gas. These contracts were classified as Level 2 in the fair value hierarchy. NSTAR Gas terminated its financial contracts swap program in April 2021.

For the three months ended September 30, ~~2021~~2022 and ~~2020,~~2021, there were gains of ~~$0.7~~$2.4 million and ~~losses of $2.6~~$0.7 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts. For the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, there were gains of $11.2 million and losses of $9.5 million, ~~and $20.6 million,~~ respectively.

Fair Value Measurements of Derivative Instruments

The fair value of derivative contracts classified as Level 3 utilizes 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 September 30, 2021 As of December 31, 2020
CL&P Range
Weighted Average (1)
Period Covered Range
Weighted Average (1)
Period Covered
Capacity Prices $2.61 $ 2.61 per kW-Month 2025 - 2026 $ 4.30 — $5.30 $ 4.63 per kW-Month 2024 - 2026
Forward Reserve Prices $ 0.50 — $1.15 $ 0.82 per kW-Month 2022 - 2024 $ 0.54 — $0.90 $ 0.72 per kW-Month 2021 - 2024

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


	As of September 30, 2022								As of December 31, 2021
CL&P	Range				Average			Period Covered	Range				Average			Period Covered
Forward Reserve Prices	$	0.44	—	$0.50	$	0.47	per kW-Month	2023 - 2024	$	0.50	—	$1.15	$	0.82	per kW-Month	2022 - 2024

Exit price premiums of ~~5.5~~3.4 percent through ~~9.8~~7.7 percent, or a weighted average of ~~8.7~~6.6 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. Beginning in the first quarter of 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.

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 September 30,				For the Nine Months Ended September 30,				CL&P	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Millions of Dollars)	(Millions of Dollars)	2021		2020		2021		2020		(Millions of Dollars)	2022		2021		2022		2021
Derivatives, Net:	Derivatives, Net:									Derivatives, Net:
Fair Value as of Beginning of Period	Fair Value as of Beginning of Period	$	(279.7)	$	(322.0)	$	(293.1)	$	(329.2)	Fair Value as of Beginning of Period	$	(213.3)	$	(279.7)	$	(249.2)	$	(293.1)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets	Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets	0.7		(4.7)		(10.9)		(22.3)		Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets	2.4		0.7		11.2		(10.9)
Settlements	Settlements	13.7		14.9		38.7		39.7		Settlements	15.0		13.7		42.1		38.7
Fair Value as of End of Period	Fair Value as of End of Period	$	(265.3)	$	(311.8)	$	(265.3)	$	(311.8)	Fair Value as of End of Period	$	(195.9)	$	(265.3)	$	(195.9)	$	(265.3)

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 the 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 September 30, ~~2021~~2022 and December 31, ~~2020~~2021 was ~~$39.2~~$23.3 million and ~~$40.9~~$40.2 million, respectively. For the three months ended September 30, ~~2021~~2022 and ~~2020,~~2021, there were unrealized losses of ~~$0.5~~$1.5 million and ~~unrealized gains of $1.6~~$0.5 million, respectively, recorded in Other Income, Net related to these equity securities. For the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, there were unrealized losses of $10.6 million and unrealized gains of $2.5 million ~~and unrealized losses of $1.0 million,~~recorded in Other Income, Net related to these equity 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 ~~$214.9~~$170.1 million and ~~$205.1~~$214.0 million as of September 30, ~~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 September 30, 2021 As of December 31, 2020
Eversource
(Millions of Dollars)
Amortized Cost Pre-Tax
Unrealized Gains Pre-Tax
Unrealized
Losses Fair Value Amortized Cost Pre-Tax
Unrealized Gains Pre-Tax
Unrealized
Losses Fair Value
Debt Securities $ 217.5 $ 8.0 $ (0.2) $ 225.3 $ 213.1 $ 11.2 $ (0.1) $ 224.2

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


	As of September 30, 2022								As of December 31, 2021
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	$	205.4	$	0.2	$	(15.5)	$	190.1	$	214.5	$	5.1	$	(0.2)	$	219.4

Unrealized gains and losses on available-for-sale debt securities held in Eversource's non-qualified executive benefit trust are recorded in Accumulated Other Comprehensive Income, excluding amounts related to credit losses or losses on securities intended to be sold, which are recorded in Other Income, Net. There have been no ~~significant unrealized losses and no~~ credit losses for the three and nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, and no allowance for credit losses as of September 30, ~~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.

26Eversource's debt securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of $170.3 million and $189.9 million as of September 30, 2022 and December 31, 2021, respectively. Unrealized gains and losses for available-for-sale debt securities included in the CYAPC and YAEC spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to long-term liabilities on the balance sheets, with no impact on the statements of income. Pre-tax unrealized gains and losses as of September 30, 2022 and December 31, 2021 primarily relate to the debt securities included in CYAPC's and YAEC's spent nuclear fuel trusts.

As of September 30, ~~2021,~~2022, the contractual maturities of available-for-sale debt securities were as follows:


Eversource (Millions of Dollars)	Eversource (Millions of Dollars)	Amortized Cost		Fair Value		Eversource (Millions of Dollars)	Amortized Cost		Fair Value
Less than one year (1)	Less than one year (1)	$	30.9	$	30.9	Less than one year (1)	$	22.4	$	22.4
One to five years	One to five years	65.5		67.1		One to five years	56.0		54.6
Six to ten years	Six to ten years	41.8		43.9		Six to ten years	40.8		36.7
Greater than ten years	Greater than ten years	79.3		83.4		Greater than ten years	86.2		76.4
Total Debt Securities	Total Debt Securities	$	217.5	$	225.3	Total Debt Securities	$	205.4	$	190.1

(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 September 30, 2021		As of December 31, 2020		Eversource (Millions of Dollars)	As of September 30, 2022		As of December 31, 2021
Level 1:	Level 1:					Level 1:
Mutual Funds and Equities	Mutual Funds and Equities	$	254.1	$	246.0	Mutual Funds and Equities	$	193.4	$	254.2
Money Market Funds	Money Market Funds	29.7		41.2		Money Market Funds	20.8		31.3
Total Level 1	Total Level 1	$	283.8	$	287.2	Total Level 1	$	214.2	$	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)	$	98.9	$	72.9	U.S. Government Issued Debt Securities (Agency and Treasury)	$	77.4	$	81.3
Corporate Debt Securities	Corporate Debt Securities	63.4		63.8		Corporate Debt Securities	54.8		65.3
Asset-Backed Debt Securities	Asset-Backed Debt Securities	13.4		11.9		Asset-Backed Debt Securities	9.5		12.6
Municipal Bonds	Municipal Bonds	6.1		24.0		Municipal Bonds	13.0		12.3
Other Fixed Income Securities	Other Fixed Income Securities	13.8		10.4		Other Fixed Income Securities	14.6		16.6
Total Level 2	Total Level 2	$	195.6	$	183.0	Total Level 2	$	169.3	$	188.1
Total Marketable Securities	Total Marketable Securities	$	479.4	$	470.2	Total Marketable Securities	$	383.5	$	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 $2.00 billion revolving credit facility, which terminates on October 15, ~~2026.~~2027. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility, which terminates on October 15, ~~2026. The~~2027. This 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
		September 30, 2021		December 31, 2020			September 30, 2021	December 31, 2020			September 30, 2021				December 31, 2020			September 30, 2022				December 31, 2021				September 30, 2022				December 31, 2021				September 30, 2022				December 31, 2021
(Millions of Dollars)	(Millions of Dollars)									(Millions of Dollars)
Eversource Parent Commercial Paper Program	Eversource Parent Commercial Paper Program	$	653.0		$	1,054.3		$	1,347.0				$	945.7						0.18	%			0.25	%	Eversource Parent Commercial Paper Program		$	401.5			$	1,343.0			$	1,598.5			$	657.0	3.34	%	0.31	%
NSTAR Electric Commercial Paper Program	NSTAR Electric Commercial Paper Program	138.0		195.0			512.0	455.0			0.10	%			0.16	%	NSTAR Electric Commercial Paper Program		—				162.5				650.0				487.5				—		%		0.14		%

There were no borrowings outstanding on the revolving credit facilities as of September 30, ~~2021~~2022 or December 31, ~~2020.~~2021.

CL&P and PSNH have uncommitted line of credit agreements totaling $450 million and $300 million, respectively, which will expire on May 12, ~~2022.~~2023. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, ~~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 NSTAR Gas long-term debt issuances in October 2021, $80.0 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of September 30, 2021.

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

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of September 30, 2022, there were intercompany loans from Eversource parent to CL&P of $26.0 million, to PSNH of $139.7 million, and to a subsidiary of NSTAR Electric of $2.8 million. As of December 31, 2021, there were intercompany loans from Eversource parent to PSNH of $66.5 million, and to a subsidiary of NSTAR Electric of $24.6 million. As of December 31, 2020, there were intercompany loans from Eversource parent to PSNH of $46.3 million, and to a subsidiary of NSTAR Electric of $21.3$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.

Sources and Uses of Cash: 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.

Availability under Long-Term Debt Issuance Authorizations:On ~~March 31, 2021,~~June 14, 2022, the DPU approved NSTAR ~~Electric's~~Gas’ request for authorization to issue up to ~~$1.60 billion in long-term debt through December 31, 2023. On September 10, 2021, the DPU approved EGMA’s request for authorization to issue up to $725~~$325 million in long-term debt through December 31, ~~2023. The remaining Eversource operating companies, including CL&P and PSNH, have utilized the long-term debt authorizations in place with the respective regulatory commissions.~~2024.

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
CL&P:
2.05% Series A First Mortgage Bonds $ 425.0 June 2021 July 2031 Repaid short-term debt, paid capital expenditures and working capital
4.38% Series A PCRB (120.5) September 2021 September 2028 Paid on par call date in advance of maturity
NSTAR Electric:
3.10% 2021 Debentures 300.0 May 2021 June 2051
Refinanced investments in eligible green
expenditures, which were previously financed in 2019 and 2020
3.50% Series F Senior Notes (250.0) June 2021 September 2021 Paid on par call date in advance of maturity date
1.95% 2021 Debentures 300.0 August 2021 August 2031 Repaid short-term debt, paid capital expenditures and working capital
PSNH:
4.05% Series Q First Mortgage Bonds (122.0) March 2021 June 2021 Paid on par call date in advance of maturity date
3.20% Series R First Mortgage Bonds (160.0) June 2021 September 2021 Paid on par call date in advance of maturity date
2.20% Series V First Mortgage Bonds 350.0 June 2021 June 2031 Repaid short-term debt, including short-term debt used to redeem Series R First Mortgage Bonds, paid capital expenditures and working capital
Other:
Eversource Parent 2.50% Series I Senior Notes (450.0) February 2021 March 2021 Paid on par call date in advance of maturity date
Eversource Parent 2.55% Series S Senior Notes 350.0 March 2021 March 2031 Repaid short-term debt, including short-term debt used to redeem Series I Senior Notes
Eversource Parent 1.40% Series U Senior Notes 300.0 August 2021 August 2026 Repaid short-term debt
Eversource Parent Variable Rate Series T Senior Notes (1)
350.0 August 2021 August 2023 Repaid short-term debt
Aquarion Water Company of Connecticut 3.31%
Senior Notes
100.0 April 2021 April 2051 Repaid 5.50% Notes, repaid short-term debt, paid capital expenditures and working capital
Aquarion Water Company of Connecticut 5.50% Notes (40.0) April 2021 April 2021 Paid at maturity
Yankee Gas 1.38% Series S First Mortgage Bonds 90.0 August 2021 August 2026 (2)
Yankee Gas 2.88% Series T First Mortgage Bonds 35.0 August 2021 August 2051 (2)
EGMA 2.11% Series A First Mortgage Bonds 310.0 September 2021 October 2031 (2)
EGMA 2.92% Series B First Mortgage Bonds 240.0 September 2021 October 2051 (2)
NSTAR Gas 2.25% Series T First Mortgage Bonds 40.0 October 2021 November 2031 (2)
NSTAR Gas 3.03% Series U First Mortgage Bonds 40.0 October 2021 November 2051 (2)

(Millions of Dollars)

Issuance/(Repayment)

Issue Date or Repayment Date

Maturity Date

Use of Proceeds for Issuance/
Repayment Information

NSTAR Electric 4.55% 2022 Debentures

450.0

May 2022

June 2052

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

NSTAR Electric 4.95% 2022 Debentures

400.0

September 2022

September 2052

Refinanced investments in eligible green expenditures, which were previously financed using short-term debt from October 1, 2020 through June 30, 2022

NSTAR Electric 2.375% 2012 Debentures

(400.0)

October 2022

Paid at maturity

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 3.375% Series W Senior Notes

650.0

February 2022

March 2032

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

Eversource Parent 4.20% Series X Senior Notes

900.0

June 2022

June 2024

Repaid short-term debt and paid working capital

Eversource Parent 4.60% Series Y Senior Notes

600.0

June 2022

July 2027

Repaid short-term debt and paid working capital

Eversource Parent 2.75% Series K Senior Notes

(750.0)

March 2022

Paid at maturity

Yankee Gas 8.48% Series B First Mortgage Bonds

(20.0)

March 2022

Paid at maturity

Yankee Gas 4.31% Series U First Mortgage Bonds

100.0

September 2022

September 2032

Repaid short-term debt, paid capital expenditures and for general corporate purposes

EGMA 4.70% Series C First Mortgage Bonds

100.0

June 2022

June 2052

Repaid short-term debt, paid capital expenditures and for general corporate purposes

NSTAR Gas 4.40% Series V First Mortgage Bonds

125.0

July 2022

August 2032

Repaid short-term debt, paid capital expenditures and for general corporate purposes

Aquarion Water Company of New Hampshire 4.45% General Mortgage Bonds

(5.0)

July 2022

Paid at maturity

Aquarion Water Company of Connecticut 4.69% Senior Notes

70.0

August 2022

September 2052

Repaid short-term debt

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

~~(2)~~ ~~The use~~Eversource and NSTAR Electric balance sheets as of September 30, 2022 comprise a money market fund that primarily included proceeds received from ~~these various issuances refinanced existing indebtedness, funded capital expenditures and were for general corporate purposes. The EGMA indebtedness~~an NSTAR Electric $400 million long-term debt issuance on September 15, 2022 that was ~~refinanced included $309.4~~used to pay $400 million of long-term ~~debt.~~debt that matured on October 15, 2022.

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)
PSNH Balance Sheets:	PSNH Balance Sheets:	As of September 30, 2021		As of December 31, 2020		PSNH Balance Sheets:	As of September 30, 2022		As of December 31, 2021
Restricted Cash - Current Portion (included in Current Assets)	Restricted Cash - Current Portion (included in Current Assets)	$	18.3	$	36.8	Restricted Cash - Current Portion (included in Current Assets)	$	18.0	$	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)	489.7		522.1		Securitized Stranded Cost (included in Regulatory Assets)	446.5		478.9
Other Regulatory Liabilities (included in Regulatory Liabilities)	Other Regulatory Liabilities (included in Regulatory Liabilities)	8.0		9.1		Other Regulatory Liabilities (included in Regulatory Liabilities)	7.9		5.4
Accrued Interest (included in Other Current Liabilities)	Accrued Interest (included in Other Current Liabilities)	3.0		8.0		Accrued Interest (included in Other Current Liabilities)	2.8		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	453.7		496.9		Rate Reduction Bonds - Long-Term Portion	410.5		453.7

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


(Millions of Dollars) PSNH Income Statements:	For the Three Months Ended				For the Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	$	10.8	$	10.8	$	32.4	$	32.4
Interest Expense on RRB Principal (included in Interest Expense)	4.2		4.5		12.9		13.9

8. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION

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

The components of net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory ~~assets~~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 intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.


																			Pension and SERP								PBOP
																			For the Three Months Ended September 30, 2022								For the Three Months Ended September 30, 2022
(Millions of Dollars)																		(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost																		Service Cost	$	17.5	$	4.7	$	3.4	$	1.7	$	2.9	$	0.5	$	0.5	$	0.3
Interest Cost																		Interest Cost	38.6		7.8		8.2		4.2		5.0		0.9		1.3		0.5
Expected Return on Plan Assets																		Expected Return on Plan Assets	(130.7)		(26.5)		(32.1)		(14.0)		(22.5)		(2.8)		(10.6)		(1.7)
Actuarial Losses, net																		Actuarial Losses, net	28.4		4.0		8.1		1.9		—		—		—		—
Prior Service Cost/(Credit)																		Prior Service Cost/(Credit)	0.4		—		0.1		—		(5.4)		0.3		(4.2)		0.1
Total Net Periodic Benefit Plan Income																		Total Net Periodic Benefit Plan Income	$	(45.8)	$	(10.0)	$	(12.3)	$	(6.2)	$	(20.0)	$	(1.1)	$	(13.0)	$	(0.8)
Intercompany Income Allocations																		Intercompany Income Allocations	N/A		$	(4.0)	$	(3.2)	$	(1.0)	N/A		$	(0.9)	$	(0.9)	$	(0.3)

																			Pension and SERP								PBOP
																			For the Nine Months Ended September 30, 2022								For the Nine Months Ended September 30, 2022
(Millions of Dollars)																		(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost																		Service Cost	$	52.7	$	13.9	$	10.4	$	5.2	$	8.7	$	1.5	$	1.5	$	0.8
Interest Cost																		Interest Cost	115.8		23.4		24.5		12.6		15.1		2.7		3.9		1.6
Expected Return on Plan Assets																		Expected Return on Plan Assets	(393.1)		(79.6)		(96.2)		(42.1)		(67.5)		(8.4)		(31.8)		(5.0)
Actuarial Losses, net																		Actuarial Losses, net	87.5		12.2		24.7		6.0		—		—		—		—
Prior Service Cost/(Credit)																		Prior Service Cost/(Credit)	1.1		—		0.3		—		(16.2)		0.8		(12.7)		0.3
Total Net Periodic Benefit Plan Income																		Total Net Periodic Benefit Plan Income	$	(136.0)	$	(30.1)	$	(36.3)	$	(18.3)	$	(59.9)	$	(3.4)	$	(39.1)	$	(2.3)
Intercompany Income Allocations																		Intercompany Income Allocations	N/A		$	(11.9)	$	(9.3)	$	(2.7)	N/A		$	(2.7)	$	(2.7)	$	(0.9)

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

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

3029


		Pension and SERP								PBOP									Pension and SERP								PBOP
		For the Three Months Ended September 30, 2020								For the Three Months Ended September 30, 2020									For the Nine Months Ended September 30, 2021								For the Nine Months Ended September 30, 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
Service Cost	Service Cost	$	18.7	$	5.4	$	3.8	$	2.0	$	2.4	$	0.4	$	0.5	$	0.2	Service Cost	$	64.3	$	17.4	$	11.9	$	6.6	$	10.1	$	1.7	$	1.8	$	0.9
Interest Cost	Interest Cost	44.4		9.3		9.7		4.8		6.1		1.1		1.7		0.7		Interest Cost	97.5		20.7		20.1		10.9		12.9		2.4		3.3		1.3
Expected Return on Plan Assets	Expected Return on Plan Assets	(99.2)		(19.8)		(25.7)		(11.1)		(18.3)		(2.5)		(8.5)		(1.4)		Expected Return on Plan Assets	(328.0)		(65.0)		(81.1)		(35.6)		(59.3)		(7.7)		(27.7)		(4.6)
Actuarial Loss	Actuarial Loss	50.7		9.7		14.0		3.8		2.2		0.3		0.6		0.2		Actuarial Loss	183.1		34.6		46.1		15.4		5.9		1.2		1.6		0.4
Prior Service Cost/(Credit)	Prior Service Cost/(Credit)	0.2		—		—		—		(5.3)		0.3		(4.2)		0.1		Prior Service Cost/(Credit)	1.1		—		0.3		—		(15.9)		0.8		(12.7)		0.3
Total Net Periodic Benefit Plan Expense/(Income)	Total Net Periodic Benefit Plan Expense/(Income)	$	14.8	$	4.6	$	1.8	$	(0.5)	$	(12.9)	$	(0.4)	$	(9.9)	$	(0.2)	Total Net Periodic Benefit Plan Expense/(Income)	$	18.0	$	7.7	$	(2.7)	$	(2.7)	$	(46.3)	$	(1.6)	$	(33.7)	$	(1.7)
Intercompany Expense/(Income) Allocations	Intercompany Expense/(Income) Allocations	N/A		$	2.4	$	2.3	$	0.8	N/A		$	(0.3)	$	(0.4)	$	(0.1)	Intercompany Expense/(Income) Allocations	N/A		$	5.8	$	6.4	$	1.9	N/A		$	(1.3)	$	(1.5)	$	(0.5)

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

Eversource Contributions: ~~Eversource currently expects to make contributions~~Based on the current status of ~~$180 million to~~ the Pension Plans ~~in 2021,~~and federal pension funding requirements, there is no minimum funding requirement for our Pension Plans for 2022. Eversource has contributed $80 million to its Pension and PBOP Plans for the nine months ended September 30, 2022 and does not expect to make additional pension contributions for the remainder of ~~which $99 million and $30 million will be contributed by CL&P and NSTAR Electric, respectively.~~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 September 30, 2021 As of December 31, 2020
Number of Sites Reserve
(in millions) Number of Sites Reserve
(in millions)
Eversource 62 $ 111.9 63 $ 102.4
CL&P 14 12.5 15 12.3
NSTAR Electric 12 3.7 12 4.7
PSNH 9 6.4 9 7.1

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


	As of September 30, 2022			As of December 31, 2021
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	62	$	121.1	61	$	115.4
CL&P	14	14.1		14	13.9
NSTAR Electric	11	3.5		11	3.3
PSNH	9	6.2		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 ~~$102.4~~$110.6 million and ~~$92.2~~$105.6 million as of September 30, ~~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	$	27.1	$	103.9	$	230.5	$	341.2	$	348.1	$	6,564.2	$	7,615.0	Renewable Energy	$	27.1	$	78.3	$	269.4	$	315.8	$	322.1	$	5,812.2	$	6,824.9

The table ~~has been updated to include~~includes long-term commitments of NSTAR Electric pertaining to the Vineyard Wind LLC contract awarded under the Massachusetts Clean Energy ~~83D contract, for which construction~~83C procurement solicitation. NSTAR Electric, along with other Massachusetts distribution companies, entered into 20-year contracts to purchase electricity generated by this 800 megawatt offshore wind project. Construction on the Vineyard Wind project commenced in ~~2021.~~2022. Estimated energy costs under this contract are expected to begin when the facilities are in ~~2023~~service in 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 $5.7~~were $4.3 million and $7.3 million as of September 30, ~~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:~~parties, and primarily relates to its offshore wind business:


As of September 30, 2021
As of September 30, 2022						As of September 30, 2022
Company (Obligor)	Company (Obligor)	Description	Maximum Exposure (in millions)		Expiration Dates	Company (Obligor)	Description	Maximum Exposure (in millions)		Expiration Dates
North East Offshore LLC	North East Offshore LLC	Construction-related purchase agreements with third-party contractors (1)	$	1,093.5	(1)	North East Offshore LLC	Construction-related purchase agreements with third-party contractors (1)	$	759.6	(1)
Sunrise Wind LLC						Sunrise Wind LLC	Construction-related purchase agreements with third-party contractors (2)	288.1		2025 - 2026
Revolution Wind, LLC						Revolution Wind, LLC	Construction-related purchase agreements with third-party contractors (3)	419.0		2024 - 2027
South Fork Wind, LLC						South Fork Wind, LLC	Construction-related purchase agreements with third-party contractors (4)	142.7		2023 - 2026
Eversource Investment LLC	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)	94.8		(5)
South Fork Wind, LLC						South Fork Wind, LLC	Power Purchase Agreement Security (6)	7.1		(6)
Sunrise Wind LLC	Sunrise Wind LLC	OREC capacity production (3)	2.2		(3)	Sunrise Wind LLC	OREC capacity production (7)	2.2		(7)
Sunrise Wind LLC		Construction-related purchase agreements with third-party contractors (4)	386.4		—
Bay State Wind LLC						Bay State Wind LLC	Real estate purchase	2.5		2023
South Fork Wind, LLC	South Fork Wind, LLC	Transmission interconnection	1.2		—	South Fork Wind, LLC	Transmission interconnection	1.2		—
South Fork Wind, LLC		Construction-related purchase agreements with third-party contractors (5)	40.6		2023
Bay State Wind LLC		Real estate purchase	2.5		2022
Eversource Investment LLC						Eversource Investment LLC	Letters of Credit (8)	4.3		—
Various	Various	Surety bonds (6)	67.5		2021 - 2023	Various	Surety bonds (9)	35.7		2022 - 2023
Rocky River Realty Company and Eversource Service		Lease payments for real estate	4.0		2024
Eversource Service						Eversource Service	Lease payments for real estate	0.6		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,~~contractors, 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~~

(2) Eversource parent issued guarantees on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guarantee ~~expires~~Sunrise Wind LLC's performance of certain obligations, in an aggregate amount not to exceed $461.9 million, in connection with construction-related purchase agreements. Eversource parent’s obligations under the guarantees expire upon the earlier of (i) dates ranging from March 2025 and April 2026 and (ii) full performance of the guaranteed obligations.

~~(2)~~(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 $542.1 million, in connection with construction-related purchase agreements. Eversource parent’s obligations under the guarantees expire upon the earlier of (i) dates ranging from May 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 $206.6 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 ~~aggregate~~ amount not to exceed $910 million. The guaranteed obligations include payment of EI's funding obligations during the construction phase of NEO’s underlying offshore wind projects and indemnification obligations associated with third party credit support for its investment in NEO. Eversource parent’s obligations under the Funding Guarantee expire upon the full performance of the guaranteed obligations.

~~(3)~~(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 ~~aggregate~~ amount not to exceed $15.4 million, under the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement (the Agreement). The Agreement was executed ~~on October 23, 2019,~~ by and between the New York State Energy Research and Development Authority (NYSERDA) and Sunrise Wind LLC. The guarantee expires upon the full performance of the guaranteed obligations.

~~(4)~~(8) Eversource parent issued a guaranty on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guarantee Sunrise Wind LLC's performance of certain obligations, in an aggregate amount not to exceed $420.6 million, in connection with a construction-related purchase agreement. Eversource parent’s obligations under the guarantee expire upon the earlier of (i) April 14, 2026 and (ii) full performance of the guaranteed obligations.

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

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

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

D. Spent Nuclear Fuel Obligations - Yankee Companies

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

Spent Nuclear Fuel Litigation:

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

DOE Phase V Damages - On March 25, 2021, each of the Yankee Companies filed a fifth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies ~~are calculating and will be~~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 separate complaints were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive (incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.

The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, ~~the~~ FERC issued Opinion No. 531-A and 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 September 30, ~~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 September 30, ~~2021~~2022 and December 31, ~~2020.~~2021.

3332

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

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

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

On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the ~~NETOs’~~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 were appealed to the Court. On August 9, 2022, the Court issued its decision vacating MISO ROE FERC Opinions 569, 569-A and 569-B and remanded to FERC to reopen the proceedings. The Court found that FERC’s development of the new return methodology was arbitrary and capricious due to FERC’s failure to offer a reasonable explanation for its decision to reintroduce the risk-premium financial model in its new methodology for calculating a just and reasonable return. At this time, Eversource cannot predict how and when FERC will address the Court’s findings on the remand of the MISO FERC opinions or any potential associated impact on the NETOs’ four pending ROE complaint cases.

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

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

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~~

NSTAR Electric and HEEC continue to finalize the resolution of certain long-term environmental restoration efforts, as required under the current ~~permit from~~permit. Upon completion of these restoration efforts and subsequent resolution with the United States Army Corps of Engineers, ~~are~~such litigation is expected to be ~~resolved, and subsequently, such litigation then~~ dismissed with prejudice.

G. CL&P Regulatory Matters

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

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

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

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

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

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

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

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

10. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

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

Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Carrying
Amount Fair
Value Carrying
Amount Fair
Value Carrying
Amount Fair
Value Carrying
Amount Fair
Value
As of September 30, 2021:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6 $ 165.5 $ 116.2 $ 121.4 $ 43.0 $ 44.1 $ — $ —
Long-Term Debt 18,219.2 19,810.9 4,215.1 4,865.2 3,984.7 4,494.3 1,163.6 1,228.9
Rate Reduction Bonds 496.9 555.8 — — — — 496.9 555.8
As of December 31, 2020:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6 $ 169.1 $ 116.2 $ 123.4 $ 43.0 $ 45.7 $ — $ —
Long-Term Debt 16,179.1 18,420.1 3,914.8 4,800.9 3,643.2 4,294.0 1,099.1 1,207.0
Rate Reduction Bonds 540.1 603.4 — — — — 540.1 603.4


	Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of September 30, 2022:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	146.0	$	116.2	$	107.4	$	43.0	$	38.6	$	—	$	—
Long-Term Debt	21,442.4		19,010.3		4,216.2		3,774.9		4,824.8		4,415.1		1,164.4		960.1
Rate Reduction Bonds	453.7		429.5		—		—		—		—		453.7		429.5

As of December 31, 2021:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	166.3	$	116.2	$	122.3	$	43.0	$	44.0	$	—	$	—
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	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 Nine Months Ended September 30, 2021								For the Nine Months Ended September 30, 2020									For the Nine Months Ended September 30, 2022								For the Nine Months Ended September 30, 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 Beginning of Period	Balance as of Beginning of Period	$	(1.4)	$	1.1	$	(76.1)	$	(76.4)	$	(3.0)	$	0.7	$	(62.8)	$	(65.1)	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	—		(0.6)		(2.4)		(3.0)		—		0.3		(1.6)		(1.3)		OCI Before Reclassifications	—		(2.0)		(2.5)		(4.5)		—		(0.6)		(2.4)		(3.0)
Amounts Reclassified from AOCI	Amounts Reclassified from AOCI	1.0		—		6.5		7.5		1.2		—		4.8		6.0		Amounts Reclassified from AOCI	—		—		5.8		5.8		1.0		—		6.5		7.5
Net OCI	Net OCI	1.0		(0.6)		4.1		4.5		1.2		0.3		3.2		4.7		Net OCI	—		(2.0)		3.3		1.3		1.0		(0.6)		4.1		4.5
Balance as of End of Period	Balance as of End of Period	$	(0.4)	$	0.5	$	(72.0)	$	(71.9)	$	(1.8)	$	1.0	$	(59.6)	$	(60.4)	Balance as of End of Period	$	(0.4)	$	(1.6)	$	(39.0)	$	(41.0)	$	(0.4)	$	0.5	$	(72.0)	$	(71.9)

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 September 30, 2021 and December 31, 2020		Issued as of									Authorized as of September 30, 2022 and December 31, 2021		Issued as of
		Par Value			September 30, 2021		December 31, 2020		Par Value							September 30, 2022		December 31, 2021
Eversource	Eversource	$	5		380,000,000		357,818,402			357,818,402		Eversource	$	5		380,000,000		359,984,073		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

Common Share Issuances and 2022 Equity Distribution Agreement: On May 11, 2022, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an “at-the-market” (ATM) equity offering program. Eversource may issue and sell its common shares through its sales agents during the term of this agreement. Shares may be offered in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise. Sales may be made at either market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. In the first nine months of 2022, Eversource issued 2,165,671 common shares, which resulted in proceeds of $197.1 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.

Treasury Shares: As of September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, there were ~~14,044,078~~12,635,324 and ~~14,864,379~~13,415,206 Eversource common shares held as treasury shares, respectively. As of September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, there were 347,348,749 and 344,403,196 Eversource common shares outstanding, we~~re 343,774,324 and~~ ~~342,954,023,~~ respectively.

Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan. Eversource also issued treasury shares for its December 2021 and October 2022 water business acquisitions. 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.

Acquisition of Torrington Water Company: On October 3, 2022, Aquarion acquired The Torrington Water Company (TWC) following the receipt of all required approvals. The acquisition was structured as a stock-for-stock exchange, and Eversource issued 925,264 treasury shares at closing for a purchase price of approximately $72 million. TWC provided regulated water service to approximately 10,100 customers in Connecticut.

13. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended September 30, ~~2021~~2022 and ~~2020~~2021 and $5.6 million for each of the nine months ended September 30, ~~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 September 30, ~~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. ~~There~~For the three and nine months ended September 30, 2022 and 2021, there were no antidilutive share awards excluded from the computation of diluted EPS for the three and nine months ended September 30, 2021 and the three months ended September 30, 2020. For the nine months ended September 30, 2020, there were 52,747 antidilutive share awards excluded from the EPS computation, as their impact would have been antidilutive. Antidilutive shares pertained to a purchase option extended to underwriters in connection with Eversource’s common share issuance on June 15, 2020.

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				For the Nine Months Ended				Eversource (Millions of Dollars, except share information)	For the Three Months Ended				For the Nine Months Ended
		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020			September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	$	283.2	$	346.3	$	913.8	$	933.2	Net Income Attributable to Common Shareholders	$	349.4	$	283.2	$	1,084.7	$	913.8
Weighted Average Common Shares Outstanding:	Weighted Average Common Shares Outstanding:									Weighted Average Common Shares Outstanding:
Basic	Basic	344,023,846		343,076,614		343,848,905		337,375,172		Basic	347,297,411		344,023,846		346,115,823		343,848,905
Dilutive Effect of:
Share-Based Compensation Awards and Other		645,936		696,988		631,151		686,403
Equity Forward Sale Agreement		—		—		—		362,525
Total Dilutive Effect		645,936		696,988		631,151		1,048,928
Dilutive Effect										Dilutive Effect	465,282		645,936		457,278		631,151
Diluted	Diluted	344,669,782		343,773,602		344,480,056		338,424,100		Diluted	347,762,693		344,669,782		346,573,101		344,480,056
Basic EPS	Basic EPS	$	0.82	$	1.01	$	2.66	$	2.77	Basic EPS	$	1.01	$	0.82	$	3.13	$	2.66
Diluted EPS	Diluted EPS	$	0.82	$	1.01	$	2.65	$	2.76	Diluted EPS	$	1.00	$	0.82	$	3.13	$	2.65

15. REVENUES

The following tables present operating revenues disaggregated by revenue source:
For the Three Months Ended September 30, 2021
Eversource
(Millions of Dollars)
Electric
Distribution Natural Gas
Distribution Electric
Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,146.8 $ 81.7 $ — $ 39.1 $ — $ — $ 1,267.6
Commercial 748.8 59.0 — 17.2 — (1.4) 823.6
Industrial 96.2 28.6 — 1.1 — (4.8) 121.1
Total Retail Tariff Sales Revenues 1,991.8 169.3 — 57.4 — (6.2) 2,212.3
Wholesale Transmission Revenues — — 527.2 — 23.0 (408.5) 141.7
Wholesale Market Sales Revenues 133.8 12.2 — 1.1 — — 147.1
Other Revenues from Contracts with Customers 29.6 1.2 3.5 1.8 303.1 (301.4) 37.8
Reserve for Revenues Subject to Refund (1)
(93.4) — — (0.9) — — (94.3)
Total Revenues from Contracts with Customers 2,061.8 182.7 530.7 59.4 326.1 (716.1) 2,444.6
Alternative Revenue Programs (7.9) 2.7 (112.6) 2.3 — 102.0 (13.5)
Other Revenues (2)
1.3 0.1 0.2 0.1 — — 1.7
Total Operating Revenues $ 2,055.2 $ 185.5 $ 418.3 $ 61.8 $ 326.1 $ (614.1) $ 2,432.8
For the Nine Months Ended September 30, 2021
Eversource
(Millions of Dollars)
Electric
Distribution Natural Gas
Distribution Electric
Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 3,094.9 $ 722.8 $ — $ 102.8 $ — $ — $ 3,920.5
Commercial 1,902.9 356.4 — 47.0 — (4.1) 2,302.2
Industrial 261.1 119.5 — 3.3 — (12.8) 371.1
Total Retail Tariff Sales Revenues 5,258.9 1,198.7 — 153.1 — (16.9) 6,593.8
Wholesale Transmission Revenues — — 1,338.4 — 62.5 (1,075.4) 325.5
Wholesale Market Sales Revenues 380.1 54.1 — 3.0 — — 437.2
Other Revenues from Contracts with Customers 68.4 3.6 10.2 5.5 936.6 (929.6) 94.7
Reserve for Revenues Subject to Refund (1)
(93.4) — — (2.2) — — (95.6)
Total Revenues from Contracts with Customers 5,614.0 1,256.4 1,348.6 159.4 999.1 (2,021.9) 7,355.6
Alternative Revenue Programs 14.9 21.3 (119.2) 1.3 — 103.0 21.3
Other Revenues (2)
3.2 0.1 0.7 0.3 — — 4.3
Total Operating Revenues $ 5,632.1 $ 1,277.8 $ 1,230.1 $ 161.0 $ 999.1 $ (1,918.9) $ 7,381.2


	For the Three Months Ended September 30, 2022
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	1,492.9	$	94.7	$	—	$	45.7	$	—	$	—	$	1,633.3
Commercial	890.5		76.7		—		18.5		—		(1.7)		984.0
Industrial	105.6		33.6		—		1.3		—		(5.2)		135.3
Total Retail Tariff Sales Revenues	2,489.0		205.0		—		65.5		—		(6.9)		2,752.6
Wholesale Transmission Revenues	—		—		520.3		—		29.9		(416.3)		133.9
Wholesale Market Sales Revenues	317.1		22.7		—		1.1		—		—		340.9
Other Revenues from Contracts with Customers	17.3		0.6		3.4		2.1		313.6		(311.9)		25.1
Amortization of/(Reserve for) Revenues Subject to Refund (1)	7.0		—		—		(0.1)		—		—		6.9
Total Revenues from Contracts with Customers	2,830.4		228.3		523.7		68.6		343.5		(735.1)		3,259.4
Alternative Revenue Programs	(37.7)		(2.8)		(55.1)		(3.6)		—		52.6		(46.6)
Other Revenues (2)	2.4		0.1		0.2		0.1		—		—		2.8
Total Operating Revenues	$	2,795.1	$	225.6	$	468.8	$	65.1	$	343.5	$	(682.5)	$	3,215.6

	For the Nine Months Ended September 30, 2022
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	3,683.9	$	870.0	$	—	$	109.1	$	—	$	—	$	4,663.0
Commercial	2,216.0		456.9		—		49.9		—		(4.2)		2,718.6
Industrial	284.1		145.2		—		3.5		—		(14.8)		418.0
Total Retail Tariff Sales Revenues	6,184.0		1,472.1		—		162.5		—		(19.0)		7,799.6
Wholesale Transmission Revenues	—		—		1,301.0		—		79.4		(1,047.3)		333.1
Wholesale Market Sales Revenues	895.2		89.3		—		2.8		—		—		987.3
Other Revenues from Contracts with Customers	53.4		2.8		10.5		6.2		983.3		(974.9)		81.3
Amortization of/(Reserve for) Revenues Subject to Refund (1)	71.9		—		0.7		(0.9)		—		—		71.7
Total Revenues from Contracts with Customers	7,204.5		1,564.2		1,312.2		170.6		1,062.7		(2,041.2)		9,273.0
Alternative Revenue Programs	(26.2)		4.3		48.9		(2.8)		—		(46.9)		(22.7)
Other Revenues (2)	7.5		0.9		0.5		0.4		—		—		9.3
Total Operating Revenues	$	7,185.8	$	1,569.4	$	1,361.6	$	168.2	$	1,062.7	$	(2,088.1)	$	9,259.6

For the Three Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution Natural Gas
Distribution Electric
Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,183.9 $ 45.5 $ — $ 45.8 $ — $ — $ 1,275.2
Commercial 682.7 41.1 — 17.1 — (1.4) 739.5
Industrial 91.0 17.5 — 1.3 — (3.6) 106.2
Total Retail Tariff Sales Revenues 1,957.6 104.1 — 64.2 — (5.0) 2,120.9
Wholesale Transmission Revenues — — 458.2 — 19.0 (365.6) 111.6
Wholesale Market Sales Revenues 79.6 8.7 — 1.1 — — 89.4
Other Revenues from Contracts with Customers 20.7 1.3 3.2 0.7 303.3 (299.0) 30.2
Total Revenues from Contracts with Customers 2,057.9 114.1 461.4 66.0 322.3 (669.6) 2,352.1
Alternative Revenue Programs 1.7 (4.0) (72.3) (2.0) — 67.0 (9.6)
Other Revenues (2)
0.7 0.1 0.2 0.1 — — 1.1
Total Operating Revenues $ 2,060.3 $ 110.2 $ 389.3 $ 64.1 $ 322.3 $ (602.6) $ 2,343.6
For the Nine Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution Natural Gas
Distribution Electric
Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 3,063.7 $ 399.6 $ — $ 113.2 $ — $ — $ 3,576.5
Commercial 1,815.7 243.5 — 47.7 — (3.7) 2,103.2
Industrial 248.4 67.0 — 3.6 — (10.1) 308.9
Total Retail Tariff Sales Revenues 5,127.8 710.1 — 164.5 — (13.8) 5,988.6
Wholesale Transmission Revenues — — 1,177.9 — 55.6 (981.4) 252.1
Wholesale Market Sales Revenues 231.1 31.9 — 2.9 — — 265.9
Other Revenues from Contracts with Customers 63.3 4.1 9.9 2.8 845.1 (838.0) 87.2
Total Revenues from Contracts with Customers 5,422.2 746.1 1,187.8 170.2 900.7 (1,833.2) 6,593.8
Alternative Revenue Programs 54.8 22.9 (52.7) (4.1) — 48.9 69.8
Other Revenues (2)
4.9 1.0 0.5 0.5 — — 6.9
Total Operating Revenues $ 5,481.9 $ 770.0 $ 1,135.6 $ 166.6 $ 900.7 $ (1,784.3) $ 6,670.5
For the Three Months Ended September 30, 2021 For the Three Months Ended September 30, 2020
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 572.0 $ 401.9 $ 172.9 $ 608.7 $ 415.4 $ 159.8
Commercial 249.4 411.3 88.5 244.7 358.3 80.1
Industrial 35.0 35.9 25.3 38.0 30.6 22.4
Total Retail Tariff Sales Revenues 856.4 849.1 286.7 891.4 804.3 262.3
Wholesale Transmission Revenues 268.2 171.0 88.0 233.3 153.1 71.8
Wholesale Market Sales Revenues 100.3 21.3 12.2 60.0 12.1 7.5
Other Revenues from Contracts with Customers 12.1 14.3 7.3 8.1 10.5 3.7
(Reserve for)/Amortization of Revenues
Subject to Refund (1)
(93.4) — — — — 2.3
Total Revenues from Contracts with Customers 1,143.6 1,055.7 394.2 1,192.8 980.0 347.6
Alternative Revenue Programs (82.0) (14.4) (24.1) (65.0) 8.2 (13.8)
Other Revenues (2)
0.2 0.7 0.6 0.2 0.7 —
Eliminations (142.2) (123.3) (55.8) (133.7) (113.5) (50.1)
Total Operating Revenues $ 919.6 $ 918.7 $ 314.9 $ 994.3 $ 875.4 $ 283.7


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


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


		For the Nine Months Ended September 30, 2021						For the Nine Months Ended September 30, 2020							For the Three Months Ended September 30, 2022						For the Three Months Ended September 30, 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
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	$	1,558.6	$	1,069.0	$	467.3	$	1,567.9	$	1,057.9	$	437.9	Residential	$	739.1	$	507.6	$	246.2	$	572.0	$	401.9	$	172.9
Commercial	Commercial	679.3		975.7		249.2		670.4		921.3		225.3		Commercial	311.2		469.6		110.4		249.4		411.3		88.5
Industrial	Industrial	100.2		89.5		71.4		105.3		82.1		61.0		Industrial	41.9		39.3		24.4		35.0		35.9		25.3
Total Retail Tariff Sales Revenues	Total Retail Tariff Sales Revenues	2,338.1		2,134.2		787.9		2,343.6		2,061.3		724.2		Total Retail Tariff Sales Revenues	1,092.2		1,016.5		381.0		856.4		849.1		286.7
Wholesale Transmission Revenues	Wholesale Transmission Revenues	652.8		478.2		207.4		576.5		430.3		171.1		Wholesale Transmission Revenues	250.3		183.8		86.2		268.2		171.0		88.0
Wholesale Market Sales Revenues	Wholesale Market Sales Revenues	278.1		64.7		37.3		163.9		39.8		27.4		Wholesale Market Sales Revenues	232.9		57.5		26.7		100.3		21.3		12.2
Other Revenues from Contracts with Customers	Other Revenues from Contracts with Customers	28.8		36.8		14.9		25.1		32.4		10.9		Other Revenues from Contracts with Customers	7.5		10.7		3.1		12.1		14.3		7.3
(Reserve for)/Amortization of Revenues Subject to Refund (1)		(93.4)		—		—		—		—		6.9
Amortization of/(Reserve for) Revenues Subject to Refund (1)														Amortization of/(Reserve for) Revenues Subject to Refund (1)	7.0		—		—		(93.4)		—		—
Total Revenues from Contracts with Customers	Total Revenues from Contracts with Customers	3,204.4		2,713.9		1,047.5		3,109.1		2,563.8		940.5		Total Revenues from Contracts with Customers	1,589.9		1,268.5		497.0		1,143.6		1,055.7		394.2
Alternative Revenue Programs	Alternative Revenue Programs	(74.2)		(11.3)		(18.8)		(27.8)		31.1		(1.2)		Alternative Revenue Programs	(65.1)		(20.5)		(7.2)		(82.0)		(14.4)		(24.1)
Other Revenues (2)	Other Revenues (2)	0.3		2.5		1.1		2.0		2.8		0.6		Other Revenues (2)	0.2		1.8		0.6		0.2		0.7		0.6
Eliminations	Eliminations	(394.0)		(362.0)		(142.6)		(371.9)		(327.5)		(124.6)		Eliminations	(155.9)		(144.3)		(59.8)		(142.2)		(123.3)		(55.8)
Total Operating Revenues	Total Operating Revenues	$	2,736.5	$	2,343.1	$	887.2	$	2,711.4	$	2,270.2	$	815.3	Total Operating Revenues	$	1,369.1	$	1,105.5	$	430.6	$	919.6	$	918.7	$	314.9

															For the Nine Months Ended September 30, 2022						For the Nine Months Ended September 30, 2021
(Millions of Dollars)														(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Revenues from Contracts with Customers														Revenues from Contracts with Customers
Retail Tariff Sales														Retail Tariff Sales
Residential														Residential	$	1,864.4	$	1,239.0	$	580.5	$	1,558.6	$	1,069.0	$	467.3
Commercial														Commercial	808.7		1,128.8		280.5		679.3		975.7		249.2
Industrial														Industrial	111.4		104.0		68.7		100.2		89.5		71.4
Total Retail Tariff Sales Revenues														Total Retail Tariff Sales Revenues	2,784.5		2,471.8		929.7		2,338.1		2,134.2		787.9
Wholesale Transmission Revenues														Wholesale Transmission Revenues	575.2		512.7		213.1		652.8		478.2		207.4
Wholesale Market Sales Revenues														Wholesale Market Sales Revenues	656.3		163.1		75.8		278.1		64.7		37.3
Other Revenues from Contracts with Customers														Other Revenues from Contracts with Customers	22.8		34.1		8.8		28.8		36.8		14.9
Amortization of/(Reserve for) Revenues Subject to Refund (1)														Amortization of/(Reserve for) Revenues Subject to Refund (1)	72.6		—		—		(93.4)		—		—
Total Revenues from Contracts with Customers														Total Revenues from Contracts with Customers	4,111.4		3,181.7		1,227.4		3,204.4		2,713.9		1,047.5
Alternative Revenue Programs														Alternative Revenue Programs	28.3		(14.4)		8.8		(74.2)		(11.3)		(18.8)
Other Revenues (2)														Other Revenues (2)	0.5		5.4		2.1		0.3		2.5		1.1
Eliminations														Eliminations	(449.6)		(420.4)		(161.2)		(394.0)		(362.0)		(142.6)
Total Operating Revenues														Total Operating Revenues	$	3,690.6	$	2,752.3	$	1,077.1	$	2,736.5	$	2,343.1	$	887.2

(1) ~~The~~Amortization of Revenues Subject to Refund within the Electric Distribution segment 2021 revenue subject to refund amount relates to an October 1, 2021 CL&P settlement agreement with the DEEP, OCC, AG and the Connecticut Industrial Energy Consumers, which resolved certain issues that arose in pending regulatory proceedings initiated by the PURA. In the third quarter of 2021, CL&P recorded a reduction to Operating Revenues of $65 million on the income statement for a reserve for customer credits associated with the provisions of the settlement agreement. Additionally, CL&P recorded a $28.4 million reserve in the first quarter of 2021 for a civil penalty for non-compliance with storm performance standards to be credited to customers. The penalty was reclassified from Operations and Maintenance expense to a reduction of Operating Revenues in the third quarter and first nine months of 2022 primarily represents the reversal of a 2021 ~~in connection with the finalization~~reserve at CL&P established to provide bill credits to customers as a result of the settlement ~~agreement. In total, the~~agreement on October 1, 2021 and a storm performance penalty assessed by PURA. The reserve ~~for revenues subject~~was reversed as customer credits were distributed to ~~refund totaled $93.4 million and was recorded~~CL&P’s customers in retail electric rates. Total customer credits as a ~~current regulatory liability on CL&P’s balance sheet~~result of the 2021 settlement and ascivil penalty were $93.4 million. The settlement amount of $65 million was refunded over a ~~reduction~~two-month billing period from December 1, 2021 to ~~Operating Revenues on~~January 31, 2022 and the ~~nine months ended~~civil penalty of $28.4 million was refunded over a one year billing period, which began September ~~30, 2021 income statement. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.~~1, 2021.

(2) Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. Other Revenues also include lease revenues under lessor accounting guidance of ~~$1.1~~$1.0 million (including $0.2 million at CL&P and ~~$0.7~~$0.6 million at NSTAR Electric) and $1.1 million (including $0.2 million at CL&P and $0.7 million at NSTAR Electric) for the three months ended September 30, 2022 and 2021, respectively, and ~~2020, respectively,~~$3.1 million (including $0.6 million at CL&P and $1.9 million at NSTAR Electric) and $3.8 million (including $0.6 million at CL&P and $2.5 million at NSTAR Electric) ~~and $3.2 million (including $0.6 million at CL&P and $2.1 million at NSTAR Electric)~~ for the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, 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 1one 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 September 30, 2021															For the Three Months Ended September 30, 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	$	2,055.2	$	185.5	$	418.3	$	61.8	$	326.1	$	(614.1)	$	2,432.8	Operating Revenues	$	2,795.1	$	225.6	$	468.8	$	65.1	$	343.5	$	(682.5)	$	3,215.6
Depreciation and Amortization	Depreciation and Amortization	(179.8)		(28.5)		(75.4)		(11.5)		(28.0)		1.1		(322.1)		Depreciation and Amortization	(256.9)		(25.1)		(85.1)		(12.7)		(35.4)		1.8		(413.4)
Other Operating Expenses	Other Operating Expenses	(1,640.5)		(176.9)		(122.4)		(26.1)		(275.2)		613.7		(1,627.4)		Other Operating Expenses	(2,261.5)		(226.3)		(143.7)		(28.8)		(265.7)		681.1		(2,244.9)
Operating Income/(Loss)	Operating Income/(Loss)	$	234.9	$	(19.9)	$	220.5	$	24.2	$	22.9	$	0.7	$	483.3	Operating Income/(Loss)	$	276.7	$	(25.8)	$	240.0	$	23.6	$	42.4	$	0.4	$	557.3
Interest Expense	Interest Expense	$	(61.0)	$	(15.7)	$	(33.5)	$	(8.0)	$	(42.5)	$	12.7	$	(148.0)	Interest Expense	$	(64.5)	$	(18.8)	$	(36.6)	$	(8.7)	$	(69.6)	$	20.0	$	(178.2)
Other Income, Net	Other Income, Net	25.4		6.7		5.0		1.2		325.9		(320.4)		43.8		Other Income, Net	59.6		11.1		10.1		2.1		429.9		(423.0)		89.8
Net Income/(Loss) Attributable to Common Shareholders	Net Income/(Loss) Attributable to Common Shareholders	150.4		(22.0)		139.4		17.5		304.9		(307.0)		283.2		Net Income/(Loss) Attributable to Common Shareholders	225.1		(24.6)		155.8		16.7		379.0		(402.6)		349.4

		For the Nine Months Ended September 30, 2021															For the Nine Months Ended September 30, 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	$	5,632.1	$	1,277.8	$	1,230.1	$	161.0	$	999.1	$	(1,918.9)	$	7,381.2	Operating Revenues	$	7,185.8	$	1,569.4	$	1,361.6	$	168.2	$	1,062.7	$	(2,088.1)	$	9,259.6
Depreciation and Amortization	Depreciation and Amortization	(534.1)		(108.7)		(223.4)		(34.3)		(83.7)		3.1		(981.1)		Depreciation and Amortization	(806.7)		(116.2)		(250.3)		(37.5)		(98.8)		5.1		(1,304.4)
Other Operating Expenses	Other Operating Expenses	(4,531.3)		(970.6)		(359.6)		(76.7)		(860.3)		1,918.9		(4,879.6)		Other Operating Expenses	(5,743.2)		(1,244.3)		(414.3)		(82.9)		(876.5)		2,081.9		(6,279.3)
Operating Income	Operating Income	$	566.7	$	198.5	$	647.1	$	50.0	$	55.1	$	3.1	$	1,520.5	Operating Income	$	635.9	$	208.9	$	697.0	$	47.8	$	87.4	$	(1.1)	$	1,675.9
Interest Expense	Interest Expense	$	(175.4)	$	(44.2)	$	(98.7)	$	(24.0)	$	(125.9)	$	37.0	$	(431.2)	Interest Expense	$	(184.2)	$	(51.2)	$	(107.3)	$	(25.2)	$	(169.9)	$	46.3	$	(491.5)
Other Income, Net	Other Income, Net	76.0		15.2		17.3		3.1		1,059.2		(1,046.2)		124.6		Other Income, Net	160.1		31.9		28.3		6.4		1,280.1		(1,251.5)		255.3
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	365.4		129.6		412.4		30.0		982.5		(1,006.1)		913.8		Net Income Attributable to Common Shareholders	495.0		147.2		455.8		29.4		1,163.6		(1,206.3)		1,084.7
Cash Flows Used for Investments in Plant	Cash Flows Used for Investments in Plant	764.9		506.4		691.0		91.2		157.6		—		2,211.1		Cash Flows Used for Investments in Plant	823.9		424.5		823.3		103.4		177.6		—		2,352.7

For the Three Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution (1)
Electric
Transmission Water Distribution
Other (1)
Eliminations (1)
Total
Operating Revenues $ 2,060.3 $ 110.2 $ 389.3 $ 64.1 $ 322.3 $ (602.6) $ 2,343.6
Depreciation and Amortization (182.0) (14.8) (70.6) (10.8) (24.1) 0.3 (302.0)
Other Operating Expenses (1,577.0) (104.2) (120.6) (10.2) (271.5) 603.1 (1,480.4)
Operating Income/(Loss) $ 301.3 $ (8.8) $ 198.1 $ 43.1 $ 26.7 $ 0.8 $ 561.2
Interest Expense $ (53.3) $ (10.1) $ (31.1) $ (8.0) $ (38.7) $ 7.1 $ (134.1)
Other Income, Net 16.0 0.7 6.9 1.6 401.0 (397.0) 29.2
Net Income/(Loss) Attributable to Common
Shareholders 205.5 (15.4) 125.6 23.1 396.6 (389.1) 346.3
For the Nine Months Ended September 30, 2020
Eversource
(Millions of Dollars)
Electric
Distribution
Natural Gas
Distribution (1)
Electric
Transmission Water Distribution
Other (1)
Eliminations (1)
Total
Operating Revenues $ 5,481.9 $ 770.0 $ 1,135.6 $ 166.6 $ 900.7 $ (1,784.3) $ 6,670.5
Depreciation and Amortization (490.0) (55.1) (206.8) (33.1) (68.1) 1.2 (851.9)
Other Operating Expenses (4,309.9) (592.0) (338.5) (60.7) (771.4) 1,787.9 (4,284.6)
Operating Income $ 682.0 $ 122.9 $ 590.3 $ 72.8 $ 61.2 $ 4.8 $ 1,534.0
Interest Expense $ (160.7) $ (32.1) $ (93.8) $ (25.1) $ (119.0) $ 27.6 $ (403.1)
Other Income, Net 44.9 2.5 22.7 1.7 1,087.9 (1,076.1) 83.6
Net Income Attributable to Common Shareholders 450.6 73.3 381.8 35.6 1,035.6 (1,043.7) 933.2
Cash Flows Used for Investments in Plant 781.2 322.8 732.4 84.0 181.2 — 2,101.6

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


	For the Three Months Ended September 30, 2021
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	$	2,055.2	$	185.5	$	418.3	$	61.8	$	326.1	$	(614.1)	$	2,432.8
Depreciation and Amortization	(179.8)		(28.5)		(75.4)		(11.5)		(28.0)		1.1		(322.1)
Other Operating Expenses	(1,640.5)		(176.9)		(122.4)		(26.1)		(275.2)		613.7		(1,627.4)
Operating Income/(Loss)	$	234.9	$	(19.9)	$	220.5	$	24.2	$	22.9	$	0.7	$	483.3
Interest Expense	$	(61.0)	$	(15.7)	$	(33.5)	$	(8.0)	$	(42.5)	$	12.7	$	(148.0)
Other Income, Net	25.4		6.7		5.0		1.2		325.9		(320.4)		43.8
Net Income/(Loss) Attributable to Common Shareholders	150.4		(22.0)		139.4		17.5		304.9		(307.0)		283.2

	For the Nine Months Ended September 30, 2021
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	$	5,632.1	$	1,277.8	$	1,230.1	$	161.0	$	999.1	$	(1,918.9)	$	7,381.2
Depreciation and Amortization	(534.1)		(108.7)		(223.4)		(34.3)		(83.7)		3.1		(981.1)
Other Operating Expenses	(4,531.3)		(970.6)		(359.6)		(76.7)		(860.3)		1,918.9		(4,879.6)
Operating Income	$	566.7	$	198.5	$	647.1	$	50.0	$	55.1	$	3.1	$	1,520.5
Interest Expense	$	(175.4)	$	(44.2)	$	(98.7)	$	(24.0)	$	(125.9)	$	37.0	$	(431.2)
Other Income, Net	76.0		15.2		17.3		3.1		1,059.2		(1,046.2)		124.6
Net Income Attributable to Common Shareholders	365.4		129.6		412.4		30.0		982.5		(1,006.1)		913.8
Cash Flows Used for Investments in Plant	764.9		506.4		691.0		91.2		157.6		—		2,211.1

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 September 30, 2021 $ 25,604.2 $ 6,865.6 $ 12,123.5 $ 2,444.9 $ 21,624.5 $ (20,648.6) $ 48,014.1
As of December 31, 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 in 2021 to reduce the fair values of certain regulatory and plant assets and certain liabilities acquired, resulting in a corresponding increase to Goodwill, based on new information received during the measurement period.

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


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


Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
As of September 30, 2022	$	26,992.6	$	7,692.6	$	13,225.3	$	2,627.9	$	24,865.4	$	(23,804.4)	$	51,599.4
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, the combined Quarterly ~~Report~~Reports on Form 10-Q for the quarters ended March 31, ~~2021~~2022 and June 30, ~~2021,~~2022, 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 that is not recognized under GAAP (non-GAAP) ~~that~~and is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. Our earnings discussion also includes non-GAAP financial measures referencing our 2022 and 2021 earnings and EPS excluding certain transaction and transition costs, and our 2021 earnings and EPS excluding charges at CL&P related to aan 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 ~~PURA and our 2021 and 2020 earnings and EPS excluding certain acquisition and transition costs.~~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 transaction and transition costs, the CL&P October 2021 settlement agreement, and the 2021 storm performance penalty imposed on CL&P by the PURA, ~~and acquisition and transition costs~~ are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.

We make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify our forward-looking statements through the use of words or phrases such as "estimate," "expect," "anticipate," "intend," "plan," "project," "believe," "forecast," "should," "could," and other similar expressions. Forward-looking statements 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 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)~~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 $349.4 million, or $1.00 per share, in the third quarter of 2022, and $1.08 billion, or $3.13 per share, in the first nine months of 2022, compared with $283.2 million, or $0.82 per share, in the third quarter of 2021, and $913.8 million, or $2.65 per share, in the first nine months of ~~2021, compared with $346.3~~2021.

•Our results include after-tax transaction and transition costs recorded at Eversource parent of $2.2 million, or ~~$1.01~~$0.01 per share, in the third quarter of ~~2020,~~2022, and ~~$933.2~~$13.0 million, or ~~$2.76~~$0.04 per share, in the first nine months of ~~2020.~~

•2022, compared with $4.3 million, or $0.01 per share, in the third quarter of 2021, and $17.3 million, or $0.05 per share, in the first nine months of 2021. Our third quarter and first nine months of 2021 results include ~~after-tax costs~~a charge resulting from a PURA-approved CL&P settlement agreement ~~on October 1, 2021 recorded within the electric distribution segment. Our~~and our first nine months of 2021 results also include ~~an after-tax~~a charge at CL&P ~~recorded within the electric distribution segment for~~resulting from a PURA assessment as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. ~~Our third quarter~~These after-tax charges at CL&P were recorded within the electric distribution segment and ~~first nine months of 2021 and 2020 results also include after-tax transition and acquisition costs recorded at Eversource parent. In total, these after-tax costs were $67.5~~totaled $63.2 million, or ~~$0.20~~$0.19 per share, in the third quarter of 2021, and ~~$103.1~~$85.8 million, or ~~$0.30~~$0.25 per share, in the first nine months of 2021. ~~Our 2020 results include after-tax transition and acquisition~~Excluding these costs, ~~recorded at Eversource parent of $5.3~~our non-GAAP earnings were $351.6 million, or ~~$0.01~~$1.01 per share, in the third quarter of ~~2020,~~2022, and ~~$12.8 million,~~$1.10 billion, or ~~$0.04~~$3.17 per share, in the first nine months of ~~2020. Excluding those costs, our non-GAAP earnings were~~2022, compared with $350.7 million, or $1.02 per share, in the third quarter of 2021, and $1.02 billion, or $2.95 per share, in the first nine months of ~~2021, compared with $351.6 million, or $1.02 per share, in the third quarter of 2020, and $946.0 million, or $2.80 per share, in the first nine months of 2020.~~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 estimate tothat we will earn within ~~the 2021~~a 2022 non-GAAP earnings guidance range of between ~~$3.81~~$4.04 per share and ~~$3.93~~$4.14 per share, which excludes the ~~charges associated with the CL&P settlement agreement~~impact of transaction and ~~the penalty for CL&P’s Tropical Storm Isaias response assessed by PURA, as well as~~ transition ~~costs related to our October 2020 purchase of the assets of CMA and acquisition~~ costs.

Liquidity:

•Cash flows provided by operating activities totaled $1.69 billion in the first nine months of 2022, compared with $1.52 billion in the first nine months of ~~2021, compared with $1.50~~2021. Investments in property, plant and equipment totaled $2.35 billion in the first nine months of ~~2020. Investments in property, plant and equipment totaled~~2022, compared with $2.21 billion in the first nine months of ~~2021, compared with $2.10 billion in the first nine months of 2020.~~ 2021.

•Cash and Cash Equivalents totaled ~~$88.2~~$485.7 million as of September 30, ~~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 ~~$1.86~~$2.25 billion as of September 30, ~~2021.~~2022.

•In the first nine months of ~~2021,~~2022, we issued ~~$3.15~~$4.05 billion of new long-term debt ~~consisting~~and we repaid $775 million of $1.00 billion at Eversource parent, $425 million at CL&P, $600 million at NSTAR Electric, $350 million at PSNH, $125 million at Yankee Gas, $550 million at EGMA, and $100 million at Aquarion Water Company of Connecticut. long-term debt.

•In the first nine months of ~~2021,~~2022, we ~~repaid $1.14 billion~~issued 2,165,671 common shares, which resulted in proceeds of ~~long-term debt, consisting~~$197.1 million, net of ~~$450 million at Eversource parent, $120.5 million at CL&P, $250 million at NSTAR Electric, $282 million at PSNH, and $40 million at Aquarion Water Company of Connecticut.~~issuance costs.

•On September ~~1, 2021,~~16, 2022, our Board of Trustees approved a common share dividend payment of ~~$0.6025~~$0.6375 per share, paid on September 30, ~~2021~~2022 to shareholders of record as of September ~~16, 2021.~~26, 2022.

~~Regulatory and Strategic Items:~~

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

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

Earnings Overview

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


		For the Three Months Ended September 30,								For the Nine Months Ended September 30,									For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2021				2020				2021				2020					2022				2021				2022				2021
(Millions of Dollars, Except Per Share Amounts)	(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share		(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share
Net Income Attributable to Common Shareholders (GAAP)	Net Income Attributable to Common Shareholders (GAAP)	$	283.2	$	0.82	$	346.3	$	1.01	$	913.8	$	2.65	$	933.2	$	2.76	Net Income Attributable to Common Shareholders (GAAP)	$	349.4	$	1.00	$	283.2	$	0.82	$	1,084.7	$	3.13	$	913.8	$	2.65

Regulated Companies (non-GAAP) (1)		$	348.5	$	1.01	$	338.8	$	0.99	$	1,023.2	$	2.97	$	941.3	$	2.79
Eversource Parent and Other Companies (non-GAAP) (1)		2.2		0.01		12.8		0.03		(6.3)		(0.02)		4.7		0.01
Regulated Companies (Non-GAAP)																		Regulated Companies (Non-GAAP)	$	373.0	$	1.07	$	348.5	$	1.01	$	1,127.4	$	3.26	$	1,023.2	$	2.97
Eversource Parent and Other Companies (Non-GAAP)																		Eversource Parent and Other Companies (Non-GAAP)	(21.4)		(0.06)		2.2		0.01		(29.7)		(0.09)		(6.3)		(0.02)
Non-GAAP Earnings	Non-GAAP Earnings	$	350.7	$	1.02	$	351.6	$	1.02	$	1,016.9	$	2.95	$	946.0	$	2.80	Non-GAAP Earnings	$	351.6	$	1.01	$	350.7	$	1.02	$	1,097.7	$	3.17	$	1,016.9	$	2.95
CL&P Settlement Impacts (after-tax) ~~(2)~~(1)	CL&P Settlement Impacts (after-tax) ~~(2)~~(1)	(63.2)		(0.19)		—		—		(85.8)		(0.25)		—		—		CL&P Settlement Impacts (after-tax) ~~(2)~~(1)	—		—		(63.2)		(0.19)		—		—		(85.8)		(0.25)
Transition and Acquisition Costs (after-tax) (3)		(4.3)		(0.01)		(5.3)		(0.01)		(17.3)		(0.05)		(12.8)		(0.04)
Transaction and Transition Costs (after-tax) (2)																		Transaction and Transition Costs (after-tax) (2)	(2.2)		(0.01)		(4.3)		(0.01)		(13.0)		(0.04)		(17.3)		(0.05)
Net Income Attributable to Common Shareholders (GAAP)	Net Income Attributable to Common Shareholders (GAAP)	$	283.2	$	0.82	$	346.3	$	1.01	$	913.8	$	2.65	$	933.2	$	2.76	Net Income Attributable to Common Shareholders (GAAP)	$	349.4	$	1.00	$	283.2	$	0.82	$	1,084.7	$	3.13	$	913.8	$	2.65

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

~~(2)~~The 2021 after-tax costs are associated with the October 1, 2021 CL&P settlement agreement approved by PURA on October 1,27, 2021, which included a pre-tax $65 million charge to earnings for customer credits provided to customers over a two-month billing period from December 1, 2021 to January 31, 2022 and a $10 million charge to earnings to establish a fund ~~various customer~~that provided bill payment assistance ~~initiatives~~to certain existing non-hardship and hardship customers carrying arrearages. These charges were recorded in the third quarter of 2021. The nine months ended 2021 after-tax costs also include ~~charges~~a charge recorded at CL&P as a result of ~~the~~PURA’s April 28, 2021 and July 14, 2021 ~~PURA~~ decisions, which included a $28.4 million ~~civil~~ penalty for ~~non-compliance with~~ storm performance ~~standards currently being~~results provided as credits to customer bills over a one-year period that began September 1, 2021 and a $0.2 million fine to the State of Connecticut’s general fund. As a result of the October 1, 2021 settlement agreement, CL&P agreed to withdraw its pending appeals related to the storm performance penalty imposed in PURA’s April 28, 2021 and July 14, 2021 decisions. Management views these collective charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance.

~~(3)~~(2) The ~~2020 acquisition costs are associated with our purchase of the assets of CMA on October 9, 2020. The 2021~~after-tax costs are for the transition of systems as a result of our purchase of the assets of Columbia Gas of Massachusetts (CMA) on October 9, 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 and the strategic review of our offshore wind investment portfolio.

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


		For the Three Months Ended September 30,								For the Nine Months Ended September 30,									For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2021				2020				2021				2020					2022				2021				2022				2021
(Millions of Dollars, Except Per Share Amounts)	(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share		(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share
Net Income - Regulated Companies (GAAP)	Net Income - Regulated Companies (GAAP)	$	285.3	$	0.82	$	338.8	$	0.99	$	937.4	$	2.72	$	941.3	$	2.79	Net Income - Regulated Companies (GAAP)	$	373.0	$	1.07	$	285.3	$	0.82	$	1,127.4	$	3.26	$	937.4	$	2.72

Electric Distribution (non-GAAP)		$	213.6	$	0.62	$	205.5	$	0.60	$	451.2	$	1.31	$	450.6	$	1.33
Electric Distribution, excluding CL&P Settlement Impacts (Non-GAAP)																		Electric Distribution, excluding CL&P Settlement Impacts (Non-GAAP)	$	225.1	$	0.65	$	213.6	$	0.62	$	495.0	$	1.43	$	451.2	$	1.31
Electric Transmission	Electric Transmission	139.4		0.40		125.6		0.36		412.4		1.20		381.8		1.13		Electric Transmission	155.8		0.44		139.4		0.40		455.8		1.32		412.4		1.20
Natural Gas Distribution ~~(1)~~	Natural Gas Distribution ~~(1)~~	(22.0)		(0.06)		(15.4)		(0.04)		129.6		0.37		73.3		0.22		Natural Gas Distribution ~~(1)~~	(24.6)		(0.07)		(22.0)		(0.06)		147.2		0.42		129.6		0.37
Water Distribution	Water Distribution	17.5		0.05		23.1		0.07		30.0		0.09		35.6		0.11		Water Distribution	16.7		0.05		17.5		0.05		29.4		0.09		30.0		0.09
Net Income - Regulated Companies (Non-GAAP)	Net Income - Regulated Companies (Non-GAAP)	$	348.5	$	1.01	$	338.8	$	0.99	$	1,023.2	$	2.97	$	941.3	$	2.79	Net Income - Regulated Companies (Non-GAAP)	$	373.0	$	1.07	$	348.5	$	1.01	$	1,127.4	$	3.26	$	1,023.2	$	2.97
CL&P Settlement Impacts (after-tax)	CL&P Settlement Impacts (after-tax)	(63.2)		(0.19)		—		—		(85.8)		(0.25)		—		—		CL&P Settlement Impacts (after-tax)	—		—		(63.2)		(0.19)		—		—		(85.8)		(0.25)
Net Income - Regulated Companies (GAAP)	Net Income - Regulated Companies (GAAP)	$	285.3	$	0.82	$	338.8	$	0.99	$	937.4	$	2.72	$	941.3	$	2.79	Net Income - Regulated Companies (GAAP)	$	373.0	$	1.07	$	285.3	$	0.82	$	1,127.4	$	3.26	$	937.4	$	2.72

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

Our electric distribution segment earnings ~~decreased $55.1~~increased $74.7 million in the third quarter of ~~2021,~~2022, as compared to the third quarter of ~~2020,~~2021, due primarily to the absence in 2022 of CL&P’s ~~settlement agreement on~~ October 1, 2021 ~~which included~~settlement agreement that resulted in a $75 million pre-tax ~~$65 million~~ charge to earnings ~~for customer credits and a $10 million charge to earnings to fund various customer assistance initiatives~~ recorded in ~~the third quarter of~~ 2021. The after-tax impact of the CL&P settlement agreement was $63.2 million, or $0.19 per share. Excluding ~~those charges,~~that 2021 charge, electric distribution segment earnings increased ~~$8.1~~$11.5 million due primarily to a base distribution rate ~~increases~~increase at NSTAR Electric effective January 1, ~~2021 and at PSNH effective January 1, 2021 and August 1, 2021, and~~2022, higher earnings from CL&P's capital ~~tracker~~tracking mechanism due to increased electric system ~~improvements. The~~improvements, a lower effective tax rate resulting from the income tax return to provision adjustment and a decrease in permanent and flow-through income tax items, and lower pension plan expense in Connecticut and New Hampshire. Those earnings ~~increase was~~increases were partially offset by higher operations and maintenance expense driven primarily by higher ~~depreciation expense,~~insurance reserves and higher ~~interest~~shared corporate costs resulting from the implementation of new information technology systems, higher property and other tax expense, and higher ~~property tax~~depreciation expense.

Our electric distribution segment earnings ~~decreased $85.2~~increased $129.6 million in the first nine months of ~~2021,~~2022, as compared to the first nine months of ~~2020,~~2021, due primarily to the absence in 2022 of CL&P’s ~~settlement agreement on~~ October 1, 2021 ~~resulting~~settlement agreement that resulted in a ~~total~~ $75 million pre-tax charge to earnings and a $28.6 million pre-tax charge to earnings at CL&P for ~~an assessment~~a storm performance penalty imposed by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020 recorded in ~~the first quarter of~~ 2021. The after-tax impact of the CL&P settlement agreement and CL&P storm performance ~~assessment~~penalty imposed by the PURA was $85.8 million, or $0.25 per share. ~~For further information, see "Regulatory Developments and Rate Matters - Connecticut" included in this~~ ~~Management’s Discussion and Analysis~~. Excluding those 2021 charges, electric distribution segment earnings increased ~~$0.6~~$43.8 million due primarily to a base distribution rate ~~increases~~increase at NSTAR Electric effective January 1, ~~2021, at PSNH effective January 1, 2021 and August 1, 2021, and at CL&P effective May 1, 2020, and~~2022, higher earnings from CL&P's capital ~~tracker~~tracking mechanism due to increased electric system ~~improvements.~~improvements, lower pension plan expense in Connecticut and New Hampshire, a lower effective tax rate resulting from the income tax return to provision adjustment in the third quarter and a decrease in permanent and flow-through income tax items, and an increase in interest income primarily on regulatory deferrals. Those earnings increases were partially offset by higher operations and maintenance expense driven primarily by higher ~~employee-related expenses~~insurance reserves and higher ~~storm restoration~~shared corporate costs resulting from the implementation of new information technology systems, higher depreciation expense, higher property and other tax expense, and higher interest expense.

Our electric transmission segment earnings increased ~~$13.8~~$16.4 million and ~~$30.6~~$43.4 million in the third quarter and ~~the~~ first nine months of ~~2021,~~2022, respectively, as compared to the third quarter and ~~the~~ first nine months of ~~2020,~~2021, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. ~~The earnings increase for the nine-month period was partially offset by a lower benefit from the annual billing and cost reconciliation filing with FERC.~~

Our natural gas distribution segment earnings had an increased loss of ~~$6.6~~$2.6 million in the third quarter of ~~2021,~~2022, as compared to the third quarter of ~~2020,~~2021, due primarily to ~~a loss from the addition of Eversource Gas Company of Massachusetts (EGMA)~~higher operations ~~of $8.4 million due to the seasonality of the natural gas business. The increased loss was~~and maintenance expense, higher property tax expense, and higher depreciation expense, partially offset by ~~the~~higher earnings from capital tracking mechanisms due to continued investments in natural gas infrastructure, higher revenues from base distribution rate ~~increase~~increases at EGMA and NSTAR Gas effective November 1, 2021, and lower pension plan expense at Yankee ~~Gas effective January 1, 2021 (with changes to customer rates beginning March 1, 2021).~~Gas.

Our natural gas distribution segment earnings increased ~~$56.3~~$17.6 million in the first nine months of ~~2021,~~2022, as compared to the first nine months of ~~2020,~~2021, due primarily ~~to the addition of EGMA earnings of $33.2 million. Additionally, the earnings increase was due~~ to base distribution rate increases at EGMA and NSTAR Gas effective November 1, ~~2020 and at Yankee Gas effective January 1,~~ 2021, ~~(with changes to customer rates beginning March 1, 2021), and~~ higher earnings from capital ~~tracker~~tracking mechanisms due to continued investments in natural gas ~~infrastructure. The~~infrastructure, and lower pension plan expense at Yankee Gas. Those earnings ~~increase was~~increases were partially offset by ~~higher depreciation expense,~~ higher operations and maintenance expense, ~~and~~ higher property tax expense, higher depreciation expense, and higher interest 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 were recognized by the end of the first quarter of 2022.

Our water distribution segment earnings decreased ~~$5.6~~$0.8 million and $0.6 million in ~~both~~ the third quarter and ~~the~~ first nine months of ~~2021,~~2022, respectively, as compared to the third quarter and ~~the~~ first nine months of 2020. The earnings decrease in both periods was due primarily to the absence in 2021 of a third quarter 2020 after-tax gain of $3.5 million and lower revenues as a result of the sale of the water system and treatment plant in Hingham, Massachusetts.2021.

Eversource Parent and Other Companies: Eversource parent and other ~~companies had~~companies’ losses increased ~~losses of $9.6~~$21.5 million and ~~$15.5~~$19.1 million in the third quarter and the first nine months of ~~2021,~~2022, respectively, as compared to the third quarter and ~~the~~ first nine months of ~~2020,~~2021. Higher losses in both periods were due primarily to higher interest expense and a higher effective tax ~~rate.~~rate driven by the income tax return to provision adjustment in the third quarter, partially offset by higher return at Eversource Service as a result of increased investments in property, plant and equipment, and after-tax decreases of $2.1 million and $4.3 million in transition costs associated with EGMA integration and transaction costs in the third quarter and first nine months of 2022, respectively, as compared to the same periods in 2021. The ~~increased loss for the~~ nine-month period ~~was~~ also ~~due~~benefited from higher unrealized gains associated with our equity method investment in a renewable energy fund.

Pension Plan: Pension plan assets and obligation are presented on a net basis and remeasured annually using a December 31st measurement date. Our future pension expense amount is dependent on plan asset returns and market performance, discount rates, and other actuarial assumptions. An underperformance of our pension plan investment returns relative to the expected returns would increase our net pension liability at December 31st, resulting in unamortized actuarial losses to be recognized in future years’ pension plan expense and a reduced expected return on assets component of pension expense. An increase in the discount rate used to determine our pension obligation would decrease our net pension liability at December 31st, resulting in unamortized actuarial gains to be recognized in future years’ pension plan expense. An increase in the discount rate at December 31st would also result in an increase in the ~~transition~~interest cost component and ~~integration~~a decrease in the service cost component of the subsequent year’s pension plan expense. Unamortized actuarial gains or losses arising at the December 31st measurement date are primarily from differences in actual investment performance compared to expected performance, as well as changes in the discount rate and other actuarial assumptions. These actuarial gains or losses are amortized as a component of pension plan expense over the estimated average future employee service period, which is seven years for the pension plan.

The change in total pension plan expense arising from this annual remeasurement does not fully impact earnings. Our Massachusetts utilities recover qualified pension expenses related to their distribution operations through a rate reconciling mechanism that fully tracks the change in net pension expenses each year, therefore the change in their pension expense does not impact earnings. Our electric transmission companies' rates provide for an annual true-up of estimated to actual costs, which include pension expenses, therefore the change in their pension expense does not impact earnings. Additionally, the portion of ~~EGMA~~our pension expense that relates to company labor devoted to capital projects is capitalized on the balance sheet instead of ~~$4.5 million.~~being charged to expense.

Impact of COVID-19

~~COVID-19 has adversely~~ affected customers, workers and the U.S. economy. We provide a critical service to our customers and have taken extensive measures to maintain its safety and reliability. We continue to address the impacts of the COVID-19 pandemic and how the related developments affect Eversource. We are in the re-entry phase of our pandemic response plan, in which the majority of our employees under remote work arrangements have transitioned back to the workplace. We have not experienced significant impacts directly related to the pandemic that have materially affected our current operations, our workforce, or results of operations. The extent of the impact to us in the future will vary, and depend on the duration, scope and severity of the pandemic and the resulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome of future proceedings before our state regulatory commissions to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses.

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

As of September 30, ~~2021,~~2022, our allowance for uncollectible customer receivable balance of ~~$441.7~~$457.6 million, of which ~~$229.9~~$252.1 million relates to hardship accounts that are specifically recovered in rates charged to customers, adequately reflected the collection risk and net realizable value for our receivables. ~~We continue to evaluate the adequacy~~As of ~~the uncollectible allowance based on an ongoing assessment of accounts receivable collections~~September 30, 2022 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.

~~Based upon the evaluation performed, in the first nine months of 2021, management increased the allowance for uncollectible accounts for amounts~~total amount incurred as a result of COVID-19 ~~by $25.8 million for Eversource (increase of $16.3 million for CL&P and $12.5 million at our natural gas businesses, and decrease of $1.8 million at NSTAR Electric). In~~included in the ~~third quarter of 2021, the COVID-19 related~~ allowance for uncollectible accounts ~~decreased by $6.5~~was $55.5 million and $55.3 million at Eversource, ~~(increased $4.0~~$19.7 million and $23.9 million at CL&P, and ~~decreased $8.3~~$4.1 million and $9.0 million at NSTAR Electric, respectively. At our Connecticut and ~~$2.2 million at our natural gas businesses). The~~Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs ~~at our Connecticut and Massachusetts utilities~~ or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. ~~As of September 30, 2021, the total amount incurred~~No COVID-19 related uncollectible amounts were deferred at PSNH as a result of COVID-19 included in the allowance for uncollectible accounts was $57.0 million at Eversource ($20.1 million at CL&P, $8.5 million at NSTAR Electric, and $27.4 million at our natural gas businesses).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 the jurisdictions in which we operate, we believe ~~our~~the 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.~~

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

~~In the first nine months of 2021, net incremental costs incurred as a result of COVID~~-19 totaled $21.2 million, and related to uncollectible expense that impacts earnings, facilities and fleet cleaning, sanitizing costs and supplies for personal protective equipment, net of cost savings and benefits under the CARES Act. In the first nine months of 2021, we deferred ~~$17.3 million~~ ~~of these net incremental COVID-19 costs on the balance sheet. Net incremental COVID-19 expenses that reduced pre-tax earnings totaled $3.9 million on the statement of income in the first nine months of 2021~~.COVID-19.

As of September 30, 2022 and December 31, 2021, a total of ~~$41.3~~$34.6 million and $33.0 million, respectively, of ~~net deferred~~ incremental COVID-19 related non-tracked uncollectible costs were recorded on the balance ~~sheet, of which $34.5 million of that deferral related to uncollectible expense that impacts earnings and $6.8 million related to cleaning and supplies for personal protective equipment.~~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 and Cash Equivalents totaled ~~$88.2~~$485.7 million as of September 30, ~~2021,~~2022, compared with ~~$106.6~~$66.8 million as of December 31, ~~2020.~~2021. The increase in Cash and Cash Equivalents was due to the NSTAR Electric $400 million long-term debt issuance on September 15, 2022 that was used to pay $400 million of long-term debt that matured on October 15, 2022.

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
		September 30, 2021		December 31, 2020			September 30, 2021	December 31, 2020			September 30, 2021				December 31, 2020			September 30, 2022				December 31, 2021				September 30, 2022				December 31, 2021				September 30, 2022				December 31, 2021
(Millions of Dollars)	(Millions of Dollars)									(Millions of Dollars)
Eversource Parent Commercial Paper Program	Eversource Parent Commercial Paper Program	$	653.0		$	1,054.3		$	1,347.0				$	945.7						0.18	%			0.25	%	Eversource Parent Commercial Paper Program		$	401.5			$	1,343.0			$	1,598.5			$	657.0	3.34	%	0.31	%
NSTAR Electric Commercial Paper Program	NSTAR Electric Commercial Paper Program	138.0		195.0			512.0	455.0			0.10	%			0.16	%	NSTAR Electric Commercial Paper Program		—				162.5				650.0				487.5				—		%		0.14		%

There were no borrowings outstanding on the revolving credit facilities as of September 30, ~~2021~~2022 or December 31, ~~2020.~~2021.

Availability under Long-Term Debt Issuance Authorizations: On ~~March 31, 2021,~~June 14, 2022, the DPU approved NSTAR ~~Electric's~~Gas’ request for authorization to issue up to ~~$1.60 billion in long-term debt through December 31, 2023. On September 10, 2021, the DPU approved EGMA’s request for authorization to issue up to $725~~$325 million in long-term debt through December 31, ~~2023. The remaining Eversource operating companies, including CL&P and PSNH, have utilized the long-term debt authorizations in place with the respective regulatory commissions.~~2024.

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

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

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

(Millions of Dollars)

Issuance/(Repayment)

Issue Date or Repayment Date

Maturity Date

Use of Proceeds for Issuance/
Repayment Information

NSTAR Electric 4.55% 2022 Debentures

450.0

May 2022

June 2052

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

NSTAR Electric 4.95% 2022 Debentures

400.0

September 2022

September 2052

Refinanced investments in eligible green expenditures, which were previously financed using short-term debt from October 1, 2020 through June 30, 2022

NSTAR Electric 2.375% 2012 Debentures

(400.0)

October 2022

Paid at maturity

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 3.375% Series W Senior Notes

650.0

February 2022

March 2032

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

Eversource Parent 4.20% Series X Senior Notes

900.0

June 2022

June 2024

Repaid short-term debt and paid working capital

Eversource Parent 4.60% Series Y Senior Notes

600.0

June 2022

July 2027

Repaid short-term debt and paid working capital

Eversource Parent 2.75% Series K Senior Notes

(750.0)

March 2022

Paid at maturity

Yankee Gas 8.48% Series B First Mortgage Bonds

(20.0)

March 2022

Paid at maturity

Yankee Gas 4.31% Series U First Mortgage Bonds

100.0

September 2022

September 2032

Repaid short-term debt, paid capital expenditures and for general corporate purposes

EGMA 4.70% Series C First Mortgage Bonds

100.0

June 2022

June 2052

Repaid short-term debt, paid capital expenditures and for general corporate purposes

NSTAR Gas 4.40% Series V First Mortgage Bonds

125.0

July 2022

August 2032

Repaid short-term debt, paid capital expenditures and for general corporate purposes

Aquarion Water Company of New Hampshire 4.45% General Mortgage Bonds

(5.0)

July 2022

Paid at maturity

Aquarion Water Company of Connecticut 4.69% Senior Notes

70.0

August 2022

September 2052

Repaid short-term debt

Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $43.2 million of RRB principal payments and $17.6 million of interest payments in the first nine months of 2022, and paid $43.2 million of RRB principal payments and $18.9 million of interest payments in the first nine months of ~~2021,~~2021.

Common Share Issuances and ~~paid $43.2~~2022 Equity Distribution Agreement: On May 11, 2022, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an “at-the-market” (ATM) equity offering program. Eversource may issue and sell its common shares through its sales agents during the term of this agreement. Shares may be offered in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise. Sales may be made at either market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. In the first nine months of 2022, Eversource issued 2,165,671 common shares, which resulted in proceeds of $197.1 million, net of ~~RRB principal payments~~issuance costs.Eversource used the net proceeds received for general corporate purposes.

Cash Flows: Cash flows from operating activities primarily result from the transmission and ~~$20.2 million~~distribution of ~~interest payments~~electricity, and the distribution of natural gas and water. Cash flows provided by operating activities totaled $1.69 billion in the first nine months of ~~2020.~~

~~Cash Flows:~~ ~~Cash flows provided by operating activities totaled~~2022, compared with $1.52 billion in the first nine months of ~~2021, compared~~2021. Changes in Eversource’s cash flows from operations were generally consistent with ~~$1.50 billion~~changes in its results of operations, as adjusted by changes in working capital in the ~~first nine months~~normal course of ~~2020.~~business and as further discussed. Operating cash flows were favorably impacted by ~~improvements~~an increase in regulatory over-recoveries (excluding storm payments) driven by the timing of collections for the non-bypassable FMCC at CL&P and other regulatory tracking mechanisms, ~~the addition of cash flows of EGMA, the timing of cash collections on our accounts receivable, and the timing of other working capital items. These favorable impacts were partially offset by~~ the timing of cash payments made on our accounts payable, ~~cash payments~~a decrease of $60.0 million in pension contributions made in 2022, as compared to 2021, ~~for storm restoration costs of approximately $52~~and a $51.7 million ~~related to Tropical Storm Isaias at CL&P, a $39.5 million increase~~decrease in income tax payments made in ~~2021,~~2022, as compared to ~~2020,~~2021. The impact of regulatory collections are included in both Regulatory Over/Under Recoveries and Amortization on the statements of cash flows. These favorable impacts were partially offset by an increase of $163.7 million in cash payments for storm costs at CL&P and NSTAR Electric, a ~~$32.0~~$146.0 million ~~increase in Pension and PBOP contributions made in 2021, as compared to 2020, and an~~ increase in cost of removal ~~expenditures.~~expenditures, the timing of cash collections on our accounts receivable, a $76.1 million payment in the second quarter of 2022 related to withheld property taxes at NSTAR Electric, and $72.0 million of customer credits distributed to CL&P’s customers in the first nine months of 2022 as a result of the October 2021 settlement agreement and the 2021 storm performance penalty for CL&P’s response to Tropical Storm Isaias.

On September ~~1, 2021,~~16, 2022, our Board of Trustees approved a common share dividend payment of ~~$0.6025~~$0.6375 per share, paid on September 30, ~~2021~~2022 to shareholders of record as of September ~~16, 2021.~~26, 2022. In the first nine months of 2022, we paid cash dividends of $643.6 million and issued non-cash dividends of $17.4 million in the form of treasury shares, totaling dividends of $661.0 million. In the first nine months of 2021, we paid cash dividends of $603.6 million and issued non-cash dividends of $17.3 million in the form of treasury shares, totaling dividends of $620.9 million. ~~In the first nine months of 2020, we paid cash dividends of $555.7 million and issued non-cash dividends of $17.2 million in the form of treasury shares, totaling dividends of $572.9 million.~~

In the first nine months of ~~2021,~~2022, CL&P, NSTAR Electric and PSNH paid ~~$210.3~~$219.3 million, ~~$283.2~~$215.7 million, and ~~$235.6~~$78.0 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 nine months of ~~2021,~~2022, investments for Eversource, CL&P, NSTAR Electric, and PSNH were ~~$2.21~~$2.35 billion, ~~$563.2~~$609.0 million, ~~$675.2~~$691.9 million, and ~~$217.4~~$346.3 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 September ~~21, 2021, Fitch~~9, 2022, Moody’s changed ~~CL&P’s~~NSTAR Electric’s outlook from stable to negative. ~~On October 29, 2021, S&P changed CL&P’s outlook from negative to stable.~~

Business Development and Capital Expenditures

Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP income/expense (all of which are non-cash factors), totaled $2.52 billion in the first nine months of 2022, compared to $2.29 billion in the first nine months of ~~2021, compared to $2.19 billion in the first nine months of 2020.~~2021. These amounts included $~~161.2~~177.3 million and ~~$178.3~~$161.2 million in the first nine months of ~~2021~~2022 and ~~2020,~~2021, 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 ~~$22.6~~$116.5 million in the first nine months of ~~2021,~~2022, as compared to the first nine months of ~~2020.~~2021. A summary of electric transmission capital expenditures by company is as follows:


		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
(Millions of Dollars)	(Millions of Dollars)	2021		2020		(Millions of Dollars)	2022		2021
CL&P	CL&P	$	242.4	$	296.4	CL&P	$	284.4	$	242.4
NSTAR Electric	NSTAR Electric	316.1		253.6		NSTAR Electric	283.0		316.1
PSNH	PSNH	123.7		154.8		PSNH	231.3		123.7
Total Electric Transmission Segment	Total Electric Transmission Segment	$	682.2	$	704.8	Total Electric Transmission Segment	$	798.7	$	682.2

~~Eastern~~Our transmission projects are designed to improve the reliability of the electric grid, meet customer demand for power and increases in electrification of municipal infrastructure, strengthen the electric grid's resilience against extreme weather and other safety and security threats, and enable integration of increasing amounts of clean power generation from renewable sources, such as solar, battery storage, and offshore wind. In Connecticut, Massachusetts and New Hampshire, ~~Transmission Projects:~~ ~~These~~our transmission projects ~~consist~~include transmission line upgrades, the installation of ~~a portfolio of~~new transmission interconnection facilities, transmission substations and 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 upgrades are in Eversource's service territory (two in New Hampshire and 26 in Massachusetts). The two New Hampshire upgrades, including the Merrimack Valley Reliability Project, have been placed in service, and 23 Massachusetts upgrades have been placed in service. On December 17, 2019, the Massachusetts Siting Board issued a favorable decision on the Sudbury-Hudson Reliability Project, the last project requiring such approval. On January 17, 2020, the Town of Sudbury and Protect Sudbury, a community group, appealed the decision to the Massachusetts Supreme Judicial Court. On June 25, 2021, the Massachusetts Supreme Judicial Court rejected the Town’s appeal, affirming all aspects of the Siting Board’s final decision. On March 11, 2021, Protect Sudbury filed a petition with the Surface Transportation Board, a federal agency, claiming the Massachusetts Bay Transportation Authority (MBTA) did not have the right to lease a portion of its inactive railroad corridor, a claim previously rejected by the Massachusetts Land Court. MBTA filed its response on April 30, 2021 and a decision is anticipated by the end of the year. Additionally, Eversource must reach agreement on a Memorandum of Agreement (MOA) with the Army Corps of Engineers and consulting parties, including the Massachusetts Historical Commission and the Narragansett tribe, to establish measures to be performed by the Company to mitigate project impacts. The Army Corps of Engineers initiated the MOA consultation process with the consulting parties in late September. Although there is no mandated timeframe for resolution, the Company anticipates achieving resolution by the end of 2021. The two remainingthese upgrades, the Mystic-Woburn and the Wakefield-Woburn reliability projects, are under construction and are expected to be placed in service by the ~~second~~fourth quarter of 2023. Construction on the last remaining upgrade, the Sudbury-Hudson Reliability Project, is expected to commence in the fourth quarter of 2022. We ~~estimate our portion~~spent $38.1 million during the first nine months of ~~the investment will be~~2022 and we expect to make additional capital expenditures of approximately ~~$750~~$145 million ~~of which, $564 million has been spent and capitalized through September 30, 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. OfWe spent $11.1 million during the ~~twelve upgrades in Eversource’s service territory, four require siting approvals from the Massachusetts regulatory agencies,~~first nine months of ~~which, one has received approval~~2022 and ~~is under construction, two have completed hearings and are awaiting orders and one, a joint project with National Grid, has yet~~we expect to ~~be filed. Of the remaining eight projects, two projects are under construction, and six projects have been placed in-service. We estimate our portion~~make additional capital expenditures of ~~the investment will be~~ approximately ~~$190~~$120 million ~~of which, $42 million has been spent and capitalized through September 30, 2021.~~on these transmission upgrades.

~~All~~On June 17, 2022, FERC approved a transmission support agreement between NSTAR Electric and Park City Wind LLC (PCW). The agreement commits NSTAR Electric to construct certain transmission facilities required to interconnect PCW’s future 800 MW offshore wind generation facility to NSTAR Electric’s transmission system. Of the total estimated $196 million project, ~~costs~~NSTAR Electric will finance an estimated $152 million and earn a return on those specific investments over a ten-year period once the facility is in operation based on the authorized return that is in effect at the applicable time for regional transmission service under the ISO-NE Open Access Transmission Tariff. The interconnection transmission facilities are ~~anticipated~~currently expected to be ~~fully recoverable through transmission rates.~~in-service in 2026.

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


		For the Nine Months Ended September 30,															For the Nine Months Ended September 30,
(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	$	186.6	$	118.3	$	40.2	$	345.1	$	135.6	$	9.5	$	490.2
Aging Infrastructure																Aging Infrastructure	150.7		159.7		47.1		357.5		378.8		87.4		823.7
Load Growth and Other																Load Growth and Other	39.9		121.8		20.5		182.2		43.2		0.7		226.1
Total Distribution																Total Distribution	377.2		399.8		107.8		884.8		557.6		97.6		1,540.0
Solar																Solar	—		0.2		—		0.2		—		—		0.2
Total																Total	$	377.2	$	400.0	$	107.8	$	885.0	$	557.6	$	97.6	$	1,540.2
2021	2021															2021
Basic Business	Basic Business	$	160.2	$	111.7	$	39.5	$	311.4	$	140.8	$	11.0	$	463.2	Basic Business	$	160.2	$	111.7	$	39.5	$	311.4	$	140.8	$	11.0	$	463.2
Aging Infrastructure	Aging Infrastructure	110.5		162.7		44.3		317.5		358.3		77.7		753.5		Aging Infrastructure	110.5		162.7		44.3		317.5		358.3		77.7		753.5
Load Growth and Other	Load Growth and Other	51.2		108.5		15.2		174.9		59.0		0.5		234.4		Load Growth and Other	51.2		108.5		15.2		174.9		59.0		0.5		234.4
Total Distribution	Total Distribution	321.9		382.9		99.0		803.8		558.1		89.2		1,451.1		Total Distribution	321.9		382.9		99.0		803.8		558.1		89.2		1,451.1
Solar	Solar	—		(0.7)		—		(0.7)		—		—		(0.7)		Solar	—		(0.7)		—		(0.7)		—		—		(0.7)
Total	Total	$	321.9	$	382.2	$	99.0	$	803.1	$	558.1	$	89.2	$	1,450.4	Total	$	321.9	$	382.2	$	99.0	$	803.1	$	558.1	$	89.2	$	1,450.4
2020
Basic Business		$	149.4	$	146.5	$	38.9	$	334.8	$	59.7	$	7.6	$	402.1
Aging Infrastructure		133.2		178.8		58.7		370.7		268.0		82.5		721.2
Load Growth and Other		55.3		69.2		14.6		139.1		39.2		0.6		178.9
Total Distribution		337.9		394.5		112.2		844.6		366.9		90.7		1,302.2
Solar		—		1.1		—		1.1		—		—		1.1
Total		$	337.9	$	395.6	$	112.2	$	845.7	$	366.9	$	90.7	$	1,303.3

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,~~October 3, 2022, Aquarion ~~and New England Service~~acquired The Torrington Water Company ~~(NESC) entered into a definitive agreement pursuant to which Aquarion would acquire~~(TWC) following the receipt of all ~~outstanding shares of NESC. NESC provides regulated water service to approximately 10,000 customers in Connecticut, Massachusetts, and New Hampshire.~~required approvals. The acquisition ~~will be~~was structured as a stock-for-stock exchange, and Eversource ~~will issue approximately 463,000 common~~issued 925,264 treasury shares at ~~closing. The transaction requires approval from the PURA, DPU, NHPUC and other regulators and is expected~~closing for a purchase price of approximately $72 million. TWC provided regulated water service to ~~close by the end of 2021. On August 3, 2021, NESC shareholders voted to approve the pending acquisition. On October 27, 2021, PURA approved the transaction.~~approximately 10,100 customers in Connecticut.

Offshore Wind Business: 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 an 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 September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, Eversource's total equity investment balance in its offshore wind business was ~~$1.13~~$1.82 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.

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 are exploring 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. In late July, we started preliminary and targeted outreach to potential buyers. We continue to work with potential buyers through this ongoing process and 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.

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

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

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

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)

$160.33

2 percent average price escalation

Approved

South Fork Wind

New York (LIPA)

$86.25

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 (1)

$110.37 (2)

Fixed price contract; no price escalation

Approved

Sunrise Wind

New York (NYSERDA)

924

$110.37 (1)

Fixed price contract; no price escalation

Approved

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

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

~~Our offshore wind~~Revolution Wind and Sunrise 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~~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 and in August 2021, BOEM released its Final EIS, which assessed~~assesses the environmental, social, and economic impacts of constructing the project and recommends measures to minimize impacts. The Final EIS will inform BOEM in deciding whether to approve the project or to approve with ~~modifications. Identified impacts~~modifications and BOEM will then issue its Record of Decision. BOEM issues its final approval of the 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 COP submitted by Revolution Wind. For Revolution Wind, a final EIS is expected in the ~~Final~~second quarter of 2023, the Record of Decision in the third quarter of 2023, and final approval is expected in the fourth quarter of 2023. On September 2, 2022, BOEM released its Draft EIS ~~included negligible~~for the Revolution Wind project, which analyzes the potential environmental impacts of the project and the alternatives to ~~major adverse impacts to certain physical, biological or cultural resources from~~the project ~~construction and operations. The Final EIS also analyzed four alternatives~~ to be evaluated as part of the process. Each of the identified alternative configurations had a similar level of environmental impacts, and if an alternative configuration was selected, the ~~South Fork~~Revolution Wind project would still meet the contractual output under its PPA. ~~The~~On August 31, 2021, Sunrise Wind received BOEM’s NOI to prepare an EIS for the review of the COP. For Sunrise Wind, a final EIS and Record of Decision ~~(ROD)~~are expected in the third quarter of 2023, and final approval is expected in ~~November 2021 and will identify~~ the ~~recommended alternative. The final decision is expected in January 2022.~~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. For Revolution Wind, a final EIS is expected in the first quarter of 2023, the Record of Decision in the second quarter of 2023, and a final decision is expected in the third quarter of 2023. On August 31, 2021, Sunrise Wind received BOEM’s NOI to prepare an EIS for the review of the COP submitted by Sunrise Wind. For Sunrise Wind, a final EIS and Record of Decision is expected in the third quarter of 2023, and a final decision is expected in the fourth quarter of 2023.

State and Local Siting and Permitting Process: ~~South F~~ork 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. Among other things, the Joint Proposal included proposed mitigations to certain environmental, community and construction impacts associated with constructing the project. South Fork Wind was 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. In April 2021, South Fork Wind filed its Environmental Management and Construction Plan (EM&CP) with the New York Public Service Commission, which details the plans on how the project will be constructed in accordance with the conditions of the approved Joint Proposal. Comments from reviewing agencies and parties have been received and South Fork Wind has responded to and addressed those comments in the plan which was re-submitted in September 2021.~~A final approval of the EM&CP is expected by the fourth quarter 2021.~~

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,~~July 8, 2022, the Rhode Island Energy Facilities Siting Board issued a ~~Preliminary~~Final Decision and Order ~~on scheduling with Advisory Opinions for local~~approving the Revolution Wind project and ~~state agencies. All advisory opinions were received in August, in accordance with the expedited schedule,~~granting a license to construct and ~~evidentiary hearings began in October 2021.~~operate. 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. On September 23, 2022, Sunrise Wind filed the Joint Proposal to the New York State Public Service Commission. Among other things, the Joint Proposal includes proposed mitigation for certain environmental, community and construction impacts associated with constructing the project. The Joint Proposal was signed by the New York Departments of Public Service, Environmental Conservation, Transportation and State as well as the Office of Agriculture and Markets and the Long Island Commercial Fisheries Association.

5150

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. 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 activities are expected to begin in the fourth quarter of 2022 with construction of the sea-to-shore conduit system. Other marine construction activities, including the project’s monopile foundations, 11-megawatt wind turbines, cable installation, and offshore substation, are 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 be able to overcome these challenges.

Projected In-Service Dates: ~~Based on BOEM’s permit schedule outlining when BOEM will complete its review of the South Fork Wind COP, we~~We expect the South Fork Wind project to be in-service by the end of 2023. For Revolution Wind and Sunrise Wind, based on the BOEM permit schedule included in each respective NOI outlining when BOEM will complete its review of the COP, we currently expect in-service dates in 2025 for both projects.

Projected Investments: For Revolution Wind and Sunrise Wind, 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. Construction of South Fork Wind is underway. Construction-related purchase agreements with third-party contractors and materials contracts have largely been secured. Subject to advancing our final project designs and federal, state and local permitting processes and construction schedules, we 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 three projects are completed and are ~~continuing to analyze~~in-service by the ~~overall project schedules.~~end of 2025, as planned. These projected investments could be impacted by the strategic review of our offshore wind investment 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 September 30, ~~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 September 30, ~~2021~~2022 and December 31, ~~2020.~~2021.

this time, Eversource cannot predict how and when FERC will address the Court’s findings on the remand of the MISO FERC opinions or any potential associated impact on the NETOs’ four pending ROE complaint cases.

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~~2022 rate base, a change of 10 basis points to the base ROE would impact Eversource’s 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~~FERC’s proposal. On July 26, 2021, the NETOs filed Supplemental NOPR reply comments 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 ~~2020 actual data)~~2022 estimated rate base) on ~~Eversource’s~~Eversource's after-tax earnings is approximately ~~$15~~$18 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 nine months 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 ~~Deferred Storm Costs:~~ In 2021 and 2020, multiple tropical and severe storms caused extensive damage to CL&P’s electric distribution systems and customer outages, along with significant pre-staging costs. These storms resulted in deferred pre-staging and storm restoration costs of $195 million for 2021 storms and $344 million for 2020 storms, including the catastrophic impact of Tropical Storm Isaias in August 2020, among others. Management believes all these storm costs were prudently incurred and meet the criteria for specific cost recovery.

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

On May 6, 2021, as part of the penalty proceeding, PURA issued a notice of violation that included an assessment of $30 million, consisting of a $28.4 million civil penalty for non-compliance with storm performance standards to be provided as credits on customer bills and a $1.6 million fine for violations of accident reporting requirements to be paid to the State of Connecticut’s general fund. On July 14, 2021, PURA issued a final decision in this penalty proceeding that included an assessment of $28.6 million, maintaining the $28.4 million performance penalty and reducing the $1.6 million fine for accident reporting to $0.2 million. The $28.4 million performance penalty is currently being credited to customers on electric bills beginning on September 1, 2021 over a one-year period. The $28.4 million is the maximum statutory penalty amount under applicable Connecticut law in effect at the time of Tropical Storm Isaias, which is 2.5 percent of CL&P’s annual distribution revenues. The liability for the performance penalty was recorded as a current regulatory liability on CL&P’s balance sheet and as a reduction to Operating Revenues on the nine months ended September 30, 2021 income statement. The after-tax earnings impact of this charge was $0.07 per share.

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

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

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

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

~~CL&P Rate Adjustment Mechanisms (RAM)~~Advanced Metering Infrastructure 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 submitted to ~~restore rates to those in effect as of June 30, 2020 in order to allow~~ PURA ~~time to reexamine the rates. Rates were adjusted effective~~its proposed $512 million Advanced Metering Infrastructure investment and implementation plan. On August ~~1, 2020. On December 2, 2020,~~17, 2021, PURA issued a ~~final decision~~Notice of Request for Amended EDC Advanced Metering Infrastructure Proposal. CL&P submitted an Amended Proposal in response to this request on November 8, 2021 with an updated schedule for the years 2022 through 2028, which ~~it adjusted~~included additional information as required by the ~~timing~~PURA. As required, the plan includes a full deployment of advanced metering functionality and a composite business case in support of the annual rate adjustments for the Transmission Adjustment Clause (TAC) charge, the Non-Bypassable Federally Mandated Congestion Charge (NBFMCC), the Electric System Improvements Tracker (ESI), Competitive Transition Assessment (CTA), System Benefits Charge (SBC)Advanced Metering Infrastructure plan. The procedural schedule includes briefs that were filed on April 29, 2022, written comments that were filed July 20, 2022, and ~~Revenue Decoupling Mechanism (RDM) so that these rates take effect~~a technical session on May 1st of each year. 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, but ordered that these rate changes 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 over what the period of recovery would be at a later time.September 14, 2022.

Aquarion Water Company of Connecticut Distribution Rate Case:On ~~September~~August 29, 2022, Aquarion Water Company of Connecticut (AWC-CT) filed an application with PURA to amend its existing rate schedules to address an operating revenue deficiency. AWC-CT’s rate application requested approval of rate increases of $27.5 million, an additional $13.6 million, and an additional $8.8 million, effective March 15, ~~2021, PURA issued its~~2023, 2024, and 2025, respectively. A final decision in the 2020 RAM reconciliation filing, which required no adjustment to the GSC, BFMCC, NBFMCC and SBC rates, changed the TAC and RDM rates effective October 1, 2021, and maintained the CTA, ESI and base distribution rates in effect as of June 1, 2021. As part of this decision,from PURA also approved two separate amortization periods, effective October 1, 2021, allowing for the collection of cumulative under-recoveries totaling $193 million as of December 31, 2020 associated with the NBFMCC and TAC rates over a 31-month period and the RDM rate over a 15-month period. PURA also required CL&P to apply the prime rate, retroactive to January 1, 2020, when calculating carrying charges for the under- or over-recoveries included in the rate components, which impacted the NBFMCC, SBC, CTA, and TAC rates.

is expected March 15, 2023.

5452

~~CL&P Impact of Third Quarter 2021 Rate Changes:~~ On September 1, 2021, CL&P adjusted its rates for the $28.4 million penalty imposed by PURA for non-compliance with performance standards that is being provided as credits on customer bills over a one-year period. On October 1, 2021, CL&P implemented new TAC and RDM delivery rates. In total, CL&P implemented an overall net rate increase of $0.00174 per kWh for residential Rate 1 customers for these rate component charges, net of the rate decrease for the storm penalty credit. For residential customers with 700 kWh monthly usage, the impact of the September 1 and October 1, 2021 rate changes equated to a net increase of $1.22 on monthly customer bills.

Massachusetts:

NSTAR ~~Gas and EGMA Mitigation Filings:~~Electric Distribution Rate Case: On ~~October 6, 2021,~~January 14, 2022, NSTAR ~~Gas and EGMA made filings~~Electric filed an application with the DPU ~~regarding~~for approval of an $89 million increase in base distribution rates, with new rates anticipated to be effective January 1, 2023. On September 27, 2022, NSTAR Electric updated its requested increase to approximately $93 million. As part of this filing, NSTAR Electric is requesting a renewal of the ~~deferral of certain costs~~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 1, 2022.

NSTAR Electric Grid Modernization and Advanced Metering Infrastructure Filing: On July 1, 2021, NSTAR Electric submitted for DPU approval its four-year $198.8 million Grid Modernization Plan for the ~~purpose~~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 ~~mitigating November 1,~~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. On October 7, 2022, the DPU issued an order approving the continuing investments from the initial 2018 to 2021 ~~bill impacts associated~~plan that were included in the 2022 to 2025 Grid Modernization Plan. The DPU established a preauthorized total budget cap of $162.6 million over the four-year plan period, with targeted cost recovery through NSTAR Electric’s annual grid modernization factor filings. NSTAR Electric expects DPU guidance for the new ~~delivery rates~~grid modernization investments and the Advanced Metering Infrastructure implementation plan in the fourth quarter of 2022. For Advanced Metering Infrastructure investments, additional guidance on the cost recovery mechanism is expected as a result of increases in natural gas supply costs, thereby providing rate relief to customers. These adjustments to rates do not impact the recovery of costs, only the timing of when the costs are collected in rates. For NSTAR Gas and EGMA, these adjustments included delaying portionspart of the NSTAR Electric base distribution rate ~~changes, the decoupling revenue requirement, and the recovery of certain prior period under-collections until November~~case by December 1, 2022. These adjustments delay recovery of $16.7 million for NSTAR Gas and $19.7 million for EGMA for a one-year period. These adjustments will result in the under-recovery of costs beginning November 1, 2021, with no impact on the statement of income.

NSTAR Gas Distribution ~~Rates~~Rates:: As part of an inflation-based mechanism, NSTAR Gas submitted its ~~first~~second annual Performance Based Rate Adjustment filing on September 15, ~~2021. Subsequently, NSTAR Gas filed a mitigation plan~~2022 and on October ~~6, 2021 to defer recovery of~~31, 2022, the ~~base distribution rate change for NSTAR Gas until November 1, 2022 associated with depreciation and property tax expense for the 2019 and 2020 non-GSEP investments. The~~ DPU approved a ~~$13.6~~$21.7 million increase to base distribution rates ~~on October 29, 2021~~ for effect on November 1, 2022. The increase is inclusive of a $4.5 million permanent increase related to exogenous property taxes and a $5.4 million increase related to an October 6, 2021 mitigation plan filing that delayed recovery of a portion of a base distribution rate increase originally scheduled to take effect November 1, 2021. The DPU also approved the recovery of historical exogenous property taxes incurred from November 1, 2020 through October 31, 2022 of $8.2 million over a two-year period through a separate tracking mechanism for effect on November 1, 2022.

EGMA Distribution ~~Rates~~Rates:: As established in ~~the~~an October 7, 2020 EGMA Rate Settlement Agreement approved by the DPU, on September 16, 2022 EGMA filed for its ~~first~~second base distribution rate increase and on ~~September 17, 2021. The~~October 31, 2022, the DPU approved a ~~$13~~$6.7 million increase to base distribution rates ~~on October 28, 2021~~and a $3.3 million increase to the Tax Act Credit Factor for effect on November 1, ~~2021.~~2022. The DPU also approved the recovery of historical exogenous property taxes incurred from November 1, 2020 through October 31, 2022 of $8.6 million over a two-year period through a separate tracking mechanism for effect on November 1, 2022. EGMA will request recovery of incremental property taxes incurred after October 31, 2022 in future exogenous filings.

New Hampshire:

PSNH Distribution Rates: In connection with an October 9, 2020 settlement agreement, PSNH was permitted three step increases to reflect qualifying plant additions in calendar years 2019, 2020 and 2021. The first two step adjustments had effective dates of January 1, 2021 and August 1, 2021, respectively. On October 20, 2022, the NHPUC approved the third step adjustment for 2021 plant in service to recover a revenue requirement of $8.9 million, with rates effective November 1, 2022.

Legislative:

Massachusetts: On August 11, 2022, Governor Baker signed into law climate-related legislation which, among other things, affirms the state’s commitment to contract for 5,600 MW of offshore wind by June 30, 2027, modifies the bidding process to encourage more competition among offshore wind developers, and provides incentives to increase the manufacturing and assembly of offshore wind components in Massachusetts. The law also provides incentives to encourage the sale and leasing of electric vehicles, promotes energy storage and electrification technologies, directs electric companies to develop grid modernization plans to upgrade distribution and transmission facilities, and initiates a pilot program that would allow up to ten communities in the state to restrict fossil fuel use in new buildings. Additionally, for long-term contracts that are approved by the DPU between developers of offshore wind generation and the contracting electric distribution company, the law provides for an annual remuneration for the distribution company equal to 2.25 per cent of the annual payments under the contract to compensate the distribution company for accepting the financial obligation of the long-term contract.

Federal: On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law. This is a broad package of legislation that includes incentives and support for clean energy resource development. Most notable for Eversource, the investment tax credit (ITC) on offshore wind projects increases from 30 percent to 40 percent if certain requirements for labor and domestic content are met. The act also re-establishes the production tax credit for solar and wind energy projects, gives increased credit for projects in certain communities, and sets credits for qualifying clean energy generation and energy storage projects. The tax provisions of the IRA provide additional incentives for offshore wind projects and could reduce retail electricity costs for our customers related to those clean energy investments. The IRA includes other tax provisions focused on implementing a 15 percent minimum tax on adjusted financial statement income and a 1 percent excise tax on corporate share repurchases. The Department of Treasury is expected to issue Treasury Regulations and additional guidance with respect to the application of the newly enacted IRA provisions. We will continue to monitor and evaluate impacts on our consolidated financial statements and we currently do not expect the alternative minimum tax change to have a material impact on our earnings, financial condition or cash flows.

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 and nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 included in this combined Quarterly Report on Form 10-Q:

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Millions of Dollars) 2021 2020 Increase/(Decrease) 2021 2020 Increase/(Decrease)
Operating Revenues $ 2,432.8 $ 2,343.6 $ 89.2 $ 7,381.2 $ 6,670.5 $ 710.7
Operating Expenses:
Purchased Power, Fuel and Transmission 880.6 806.3 74.3 2,529.2 2,313.0 216.2
Operations and Maintenance 389.1 332.0 57.1 1,265.8 1,006.1 259.7
Depreciation 276.8 244.5 32.3 822.2 721.2 101.0
Amortization 45.2 57.5 (12.3) 158.9 130.7 28.2
Energy Efficiency Programs 143.8 145.0 (1.2) 460.8 408.8 52.0
Taxes Other Than Income Taxes 213.9 197.1 16.8 623.8 556.7 67.1
Total Operating Expenses 1,949.4 1,782.4 167.0 5,860.7 5,136.5 724.2
Operating Income 483.4 561.2 (77.8) 1,520.5 1,534.0 (13.5)
Interest Expense 148.0 134.0 14.0 431.2 403.2 28.0
Other Income, Net 43.8 29.2 14.6 124.6 83.6 41.0
Income Before Income Tax Expense 379.2 456.4 (77.2) 1,213.9 1,214.4 (0.5)
Income Tax Expense 94.1 108.2 (14.1) 294.5 275.6 18.9
Net Income 285.1 348.2 (63.1) 919.4 938.8 (19.4)
Net Income Attributable to Noncontrolling Interests 1.9 1.9 — 5.6 5.6 —
Net Income Attributable to Common Shareholders $ 283.2 $ 346.3 $ (63.1) $ 913.8 $ 933.2 $ (19.4)

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


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(Millions of Dollars)	2022		2021		Increase		2022		2021		Increase
Operating Revenues	$	3,215.6	$	2,432.8	$	782.8	$	9,259.6	$	7,381.2	$	1,878.4
Operating Expenses:
Purchased Power, Fuel and Transmission	1,388.0		880.6		507.4		3,718.3		2,529.2		1,189.1
Operations and Maintenance	454.3		389.1		65.2		1,378.9		1,265.8		113.1
Depreciation	302.1		276.8		25.3		885.7		822.2		63.5
Amortization	111.3		45.2		66.1		418.6		158.9		259.7
Energy Efficiency Programs	162.5		143.8		18.7		498.7		460.8		37.9
Taxes Other Than Income Taxes	240.1		213.9		26.2		683.5		623.8		59.7

Total Operating Expenses	2,658.3		1,949.4		708.9		7,583.7		5,860.7		1,723.0
Operating Income	557.3		483.4		73.9		1,675.9		1,520.5		155.4
Interest Expense	178.1		148.0		30.1		491.6		431.2		60.4
Other Income, Net	89.8		43.8		46.0		255.3		124.6		130.7
Income Before Income Tax Expense	469.0		379.2		89.8		1,439.6		1,213.9		225.7
Income Tax Expense	117.7		94.1		23.6		349.3		294.5		54.8
Net Income	351.3		285.1		66.2		1,090.3		919.4		170.9
Net Income Attributable to Noncontrolling Interests	1.9		1.9		—		5.6		5.6		—
Net Income Attributable to Common Shareholders	$	349.4	$	283.2	$	66.2	$	1,084.7	$	913.8	$	170.9

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 (Decrease)/Increase				Sales Volumes (MMcf)				Percentage Increase				Sales Volumes (MG)					Percentage Decrease			Sales Volumes (GWh)								Percentage Increase					Sales Volumes (MMcf)							Percentage (Decrease)/Increase					Sales Volumes (MG)						Percentage Increase
Three Months Ended September 30:	Three Months Ended September 30:	2021	2020			2021			2020					2021			2020		Three Months Ended September 30:	2022					2021					2022							2021					2022							2021
Traditional	Traditional	2,097	2,110			(0.6)	%		—		—			—	%		397		770					(48.4)		%	Traditional	2,140			2,097					2.1		%	—				—					—		%	596			397					50.1	%
Decoupled and Special Contracts ~~(2)~~(1)	Decoupled and Special Contracts ~~(2)~~(1)	12,197	12,281	(0.7)	%			16,545		15,951		3.7	%			6,856		8,102			(15.4)	%	Decoupled and Special Contracts ~~(2)~~(1)	12,545					12,197				2.9		%			15,751			16,545				(4.8)		%			8,379			6,856			22.2		%
Total Sales Volumes	Total Sales Volumes	14,294	14,391	(0.7)	%			16,545		15,951		3.7	%			7,253		8,872			(18.2)	%	Total Sales Volumes	14,685					14,294			2.7		%			15,751			16,545				(4.8)		%			8,975			7,253			23.7		%

Nine Months Ended September 30:	Nine Months Ended September 30:																						Nine Months Ended September 30:
Traditional	Traditional	5,901	5,805	1.7	%			—		—		—	%			967		1,686			(42.6)	%	Traditional	5,927					5,901			0.4		%			—			—				—		%			1,227			967			26.9		%
Decoupled and Special Contracts ~~(2)~~(1)	Decoupled and Special Contracts ~~(2)~~(1)	33,071	32,404	2.1	%			107,337		103,286		3.9	%			16,863		17,658			(4.5)	%	Decoupled and Special Contracts ~~(2)~~(1)	33,358					33,071			0.9		%			109,163			107,337				1.7		%			17,965			16,863			6.5		%
Total Sales Volumes	Total Sales Volumes	38,972	38,209	2.0	%			107,337		103,286		3.9	%			17,830		19,344			(7.8)	%	Total Sales Volumes	39,285					38,972			0.8		%			109,163			107,337				1.7		%			19,192			17,830			7.6		%

(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 for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, as follows:


(Millions of Dollars)	(Millions of Dollars)	Three Months Ended		Nine Months Ended		(Millions of Dollars)	Three Months Ended		Nine Months Ended
Electric Distribution	Electric Distribution	$	(5.1)	$	150.2	Electric Distribution	$	739.9	$	1,553.7
Natural Gas Distribution	Natural Gas Distribution	75.3		507.8		Natural Gas Distribution	40.1		291.6
Electric Transmission	Electric Transmission	29.0		94.5		Electric Transmission	50.5		131.5
Water Distribution	Water Distribution	(2.3)		(5.6)		Water Distribution	3.3		7.2
Other	Other	3.8		98.4		Other	17.4		63.6
Eliminations	Eliminations	(11.5)		(134.6)		Eliminations	(68.4)		(169.2)
Total Operating Revenues	Total Operating Revenues	$	89.2	$	710.7	Total Operating Revenues	$	782.8	$	1,878.4

Electric and Natural Gas (excluding EGMA) Distribution Revenues:

Base Distribution Revenues:

•Base electric distribution revenues increased ~~$3.9~~$9.0 million and ~~$36.3~~$37.4 million for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020, respectively,~~2021, due primarily to the impact of base distribution rate increases at NSTAR Electric effective January 1, ~~2021,~~2022 resulting from its annual Performance Based Rate Adjustment filing and at PSNH effective ~~January 1, 2021 and~~ August 1, 2021 ~~and at CL&P effective May 1,~~to reflect plant additions in calendar year 2020 ~~partially offset by a base distribution rate decrease at CL&P implemented June 1, 2021. The decrease~~included in ~~the CL&P base distribution rate on June 1, 2021 was due primarily to the completion of the recovery of certain storm cost amortization and therefore the base rate decrease did not impact earnings.~~its revenue requirement.

•Base natural gas distribution revenues (excluding EGMA) increased ~~$7.9~~$1.7 million and ~~$48.5~~$15.2 million for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020, respectively,~~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.

Electric distribution revenues at CL&P also ~~decreased $65~~increased $93.4 million for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, due to the absence of a 2021 reserve established to provide bill credits to customers as a result of CL&P’s settlement agreement on October 1, 2021 ~~in which~~and a storm performance penalty assessed by PURA. In the 2021 settlement agreement, CL&P agreed to provide a total of $65 million of customer credits, ~~to be~~which were distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. In the third quarter of 2021, CL&P recorded a current regulatory liability associated with the provisions of the settlement agreement, with a $65 million pre-tax charge as a reduction to Operating Revenues. Additionally, CL&P recorded a $28.4 million reserve in the first quarter of 2021 for a civil penalty for non-compliance with storm performance standards that ~~is currently being~~was provided as credits to ~~customer~~customers on electric bills beginning on September 1, 2021 over a one-year period. The penalty was reclassified from Operations and Maintenance expense to a reduction of Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement. ~~For further information, see "Regulatory Developments and Rate Matters - Connecticut" included in this~~ ~~Management’s Discussion and Analysis~~.

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. Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return 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 and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, due primarily to the following:


		Electric Distribution				Natural Gas Distribution					Electric Distribution				Natural Gas Distribution
(Millions of Dollars)	(Millions of Dollars)	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		(Millions of Dollars)	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended
Retail Tariff Tracked Revenues:	Retail Tariff Tracked Revenues:									Retail Tariff Tracked Revenues:
Energy supply procurement	Energy supply procurement	$	(47.2)	$	(148.0)	$	8.9	$	40.0	Energy supply procurement	$	390.8	$	702.7	$	22.2	$	91.0
Retail transmission	Retail transmission	77.0		156.2		—		—		Retail transmission	65.3		224.0		—		—
Energy Efficiency										Energy Efficiency	27.8		37.9		(0.9)		(6.1)
Stranded costs										Stranded costs	(15.3)		(59.9)		—		—
Other distribution tracking mechanisms	Other distribution tracking mechanisms	(11.4)		36.9		1.5		12.7		Other distribution tracking mechanisms	(2.2)		19.5		5.4		21.2
Wholesale Market Sales Revenue	Wholesale Market Sales Revenue	54.2		149.0		(3.2)		(1.1)		Wholesale Market Sales Revenue	183.3		515.1		7.0		20.7

The ~~decrease~~increase in energy supply procurement within electric distribution for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, was driven primarily by ~~lower~~higher average prices and higher average supply-related sales ~~volumes, partially offset by higher average prices.~~volumes. The ~~decrease~~increase in energy supply procurement within electric distribution for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, was driven primarily by higher average prices, partially offset by lower average supply-related ~~sales volumes and lower average prices.~~volumes. The increase in energy supply procurement within natural gas distribution for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, was driven primarily by higher average ~~prices. The increase for the nine-month period was also attributable to~~prices and higher average supply-related sales 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 electric distribution wholesale market sales revenue for the three and nine months ended September 30, 2022, as compared to the same periods in 2021, was due primarily to higher average electricity market prices received for wholesale sales at CL&P, ~~for both the three~~NSTAR Electric and ~~nine months ended September 30, 2021, as compared to the same periods in 2020.~~PSNH. ISO-NE average market prices received for CL&P’s wholesale sales increased approximately ~~100 percent~~91 and 96116 percent for the three and nine months ended September 30, ~~2021, respectively,~~2022, as compared to the same periods in ~~2020,~~2021, driven primarily by higher natural gas prices in New England. The increase in both periods 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 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 non-bypassable component of the FMCC rate. The increase in electric distribution wholesale market sales revenues in both periods was also driven by higher proceeds from the sale of transmission rights over a one year period 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 ~~$62.8~~$5.5 million and ~~$412.1~~$149.0 million for the three and nine months ended September 30, 2022, as compared to the same periods in 2021. Included in the total operating revenues increase was EGMA’s base natural gas distribution revenues increase of $0.9 million and $23.1 million for the three and nine months ended September 30, 2022, as compared to the same periods in 2021, ~~respectively.~~due primarily to a base distribution rate increase effective November 1, 2021.

Electric Transmission Revenues: Electric transmission revenues increased ~~$29.0~~$50.5 million and ~~$94.5~~$131.5 million for the three and nine months ended September 30, ~~2021, respectively,~~2022, as compared to the same periods in ~~2020,~~2021, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. The increase in electric transmission revenues for the nine months ended September 30, 2021, as compared to the same period in 2020, was partially offset by a lower benefit from the annual billing and cost reconciliation filing with FERC.

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 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 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 and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)	(Millions of Dollars)	Three Months Ended		Nine Months Ended		(Millions of Dollars)	Three Months Ended		Nine Months Ended
Purchased Power Costs	Purchased Power Costs	$	(25.2)	$	(81.5)	Purchased Power Costs	$	446.9	$	832.3
Natural Gas Costs	Natural Gas Costs	47.0		222.1		Natural Gas Costs	34.5		214.8
Transmission Costs	Transmission Costs	79.8		155.5		Transmission Costs	75.9		242.7
Eliminations	Eliminations	(27.3)		(79.9)		Eliminations	(49.9)		(100.7)
Total Purchased Power, Fuel and Transmission	Total Purchased Power, Fuel and Transmission	$	74.3	$	216.2	Total Purchased Power, Fuel and Transmission	$	507.4	$	1,189.1

The ~~decrease~~increase in purchased power expense at the electric distribution business for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, was driven primarily by ~~lower expense related to the procurement of~~higher energy supply procurement costs resulting from ~~lower~~higher average prices and higher average supply-related sales ~~volumes, partially offset by higher average prices.~~volumes. The ~~decrease~~increase in purchased power expense at the electric distribution business for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, was driven primarily by ~~lower expense related to the procurement of~~higher energy supply procurement costs resulting from higher average prices, partially offset by lower average supply-related sales ~~volumes and lower average prices.~~volumes. The ~~lower energy supply expense~~increase in ~~the three and nine-month~~both periods was ~~partially offset by~~also due to higher long-term contractual energy-related costs that are recovered in the ~~NBFMCC~~non-bypassable component of the FMCC mechanism at CL&P and higher net metering costs at NSTAR Electric and CL&P.

The increase in costs at the natural gas distribution segment for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, was due primarily to ~~the addition of EGMA natural gas supply costs as a result of the 2020 CMA asset acquisition of $18.4 million and $140.9 million, respectively, as well as~~ higher average ~~prices. The increase for the nine-month period was also attributable to~~prices and higher average supply-related sales volumes.

The increase in transmission costs for the three ~~and nine~~ months ended September 30, ~~2021,~~2022, as compared to the same ~~periods~~period in ~~2020,~~2021, was primarily the result of an increase ~~in costs~~resulting from the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed ~~by ISO-NE that support regional grid investments~~to customers and an increase in Local Network Service charges, which ~~reflects~~reflect the cost of transmission service provided by Eversource over our local transmission network.

This was partially offset by a decrease in costs billed by ISO-NE that support regional grid investments. The increase in transmission costs for the nine months ended September 30, 2022, as compared to the same period in 2021, was primarily the result of an increase resulting from the retail transmission cost deferral, which was partially offset by a decrease in Local Network Service charges.

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 and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, due primarily to the following:
(Millions of Dollars) Three Months Ended Nine Months Ended
Base Electric Distribution (Non-Tracked Costs):
CL&P assessment by PURA for Tropical Storm Isaias response; reflected as reduction to Operating
  Revenues in the third quarter of 2021 in connection with the finalization of the settlement
    agreement $ (28.4) $ —
CL&P charge to fund various customer assistance initiatives associated with the settlement
   agreement on October 1, 2021 10.0 10.0
Employee-related expenses, including labor and benefits (3.8) 22.9
Funding of CL&P storm reserve as part of June 1, 2021 rate change 6.0 10.0
Storm restoration costs 2.7 20.4
Vegetation Management 9.3 11.6
Operations-related expenses, including vehicles and outside services 1.4 5.6
Shared corporate costs (including computer software depreciation at Eversource Service) 4.9 15.8
Other non-tracked operations and maintenance 0.2 6.2
Total Base Electric Distribution (Non-Tracked Costs) 2.3 102.5
Tracked Costs (Electric Distribution and Electric Transmission) 5.8 22.7
Natural Gas Distribution:
Base (Non-Tracked) Costs, excluding EGMA 2.6 5.8
Tracked Costs, excluding EGMA 1.5 4.8
EGMA Operations and Maintenance 33.6 119.2
Total Natural Gas Distribution 37.7 129.8
Water Distribution:
Absence in 2021 of gain on sale of Hingham water system in July 2020 16.0 16.0
Other 0.1 0.1
Total Water Distribution 16.1 16.1
Parent and Other Companies and eliminations:
Eversource Parent and Other Companies - other operations and maintenance 3.5 81.8
Transition and Acquisition Costs (1.4) 6.2
Eliminations (6.9) (99.4)
Total Operations and Maintenance $ 57.1 $ 259.7


(Millions of Dollars)	Three Months Ended		Nine Months Ended
Base Electric Distribution (Non-Tracked Costs):
Absence in 2022 of CL&P charge for Tropical Storm Isaias response in 2021 that was reflected as reduction to Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement	$	28.4	$	—
General costs (including outside corporate services, insurance, fees and assessments)	14.2		23.6
Shared corporate costs (including computer software depreciation at Eversource Service)	8.7		18.6
Storm costs	5.1		9.6
Operations-related expenses (including vegetation management, outside services and vehicles)	5.6		5.7
Absence in 2022 of CL&P charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021	(10.0)		(10.0)
Other non-tracked operations and maintenance	1.2		5.6
Total Base Electric Distribution (Non-Tracked Costs)	53.2		53.1
Tracked Electric Costs (Electric Distribution and Electric Transmission) - Increases due primarily to higher transmission expenses	29.3		68.6
Natural Gas Distribution:
Base (Non-Tracked Costs) - Increases due primarily to higher employee-related expenses and higher shared corporate costs	4.1		22.2
Tracked Costs	3.4		11.0
Total Natural Gas Distribution	7.5		33.2
Water Distribution	2.2		4.9
Parent and Other Companies and eliminations:
Eversource Parent and Other Companies - other operations and maintenance	(6.2)		22.4
Transaction and Transition Costs	(3.0)		(6.0)
Eliminations	(17.8)		(63.1)
Total Operations and Maintenance	$	65.2	$	113.1

Depreciation ~~expense~~expense increased for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods 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 $12.0 million and $35.5 million, respectively.~~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~~certain costs as those costs are collected in rates.

~~Amortization decreased~~Amortization increased for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same ~~period~~periods in 2020, due primarily to a decrease in storm amortization expense at CL&P related to the completion of the amortization period of certain storm cost deferred assets. The decrease was partially offset by an increase in the deferral adjustment of energy supply, energy-related and other costs. Amortization increased for the nine months ended September 30, 2021, ~~as compared to the same period in 2020,~~ due primarily to the deferral adjustment of energy supply, energy-related and other tracked costs at CL&P (included in the non-bypassable component of the FMCC mechanism) and NSTAR Electric, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. ~~The~~For the nine month period, the increase ~~for the nine-month period~~ was partially offset by a decrease in storm amortization expense at CL&P related to the completion of the amortization period of certain storm ~~cost~~costs deferred assets.

Energy Efficiency Programs expense ~~decreased for~~increased for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same ~~period~~periods in ~~2020,~~2021, due primarily to the deferral adjustment, at CL&P, 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. Energy Efficiency increased for the nine months ended September 30, 2021, as compared to the same period in 2020, due primarily to the addition of EGMA energy efficiency program costs as a result of the 2020 CMA asset acquisition of $45.7 million. The increase in the first nine months of 2021 was also due to the deferral adjustment at NSTAR Electric and PSNH, 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 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~~expense increased for ~~the~~the three and nine months ended September 30, ~~2021,~~2022, as compared to the same periods in ~~2020,~~2021, due primarily to an increase in property taxes as a result of higher utility plant balances ~~the addition of EGMA property taxes as a result of the 2020 CMA asset acquisition of $6.2 million and $24.1 million, respectively,~~ and higher Connecticut gross earnings taxes.

Interest Expense increased for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same ~~period~~periods in ~~2020,~~2021, due primarily to an increase inin interest on long-term debt as a result of new debt issuances ($~~7.8~~36.1 million and $64.6 million, respectively) and higher amortization of debt discounts and premiums, net ($1.5 million and $2.0 million, respectively). Additionally, Interest Expense increased for the nine month period as a result of an increase in interest on short-term notes payable ($3.7 million), and an increase in interest expense on regulatory deferrals ($~~5.1~~2.7 million)~~, and an increase~~. These increases in ~~interest on notes payable ($1.2 million),~~interest expense were partially offset by an increase in capitalized AFUDC related to debt funds and other capitalized interest ($~~0.5 million).~~

~~Interest Expense increased for~~6.2 million and $8.8 million, respectively), lower interest resulting from the ~~nine months ended September 30, 2021, as compared to the same period in 2020, due primarily to an increase in interest on long-term debt as a result~~2022 payment of ~~new debt issuances~~withheld property taxes at NSTAR Electric ($~~23.5 million), an increase in interest expense on regulatory deferrals ($8.0 million)~~1.8 million and $2.9 million, respectively), and ~~higher amortization of debt discounts and premiums, net ($0.8 million), partially offset by~~ a decrease ~~in interest on notes payable ($3.4 million), a decrease in~~in RRB interest expense ($~~1.0 million)~~0.3 million and ~~an increase in AFUDC related to debt funds and other capitalized interest ($0.6 million)~~$1.0 million, respectively).

Other Income, Net increased for the three and nine months ended September 30, ~~2021,~~2022, as compared to the same ~~period~~periods in ~~2020,~~2021, due primarily to an increase related to pension, SERP and PBOP non-service income components ($~~10.7 million)~~33.6 million and $100.6 million, respectively), an increase in interest income primarily from regulatory deferrals ($~~5.8 million)~~6.8 million and $13.1 million, respectively), ~~partially offset by investment losses~~a gain on the sale of property ($2.5 million and $2.6 million, respectively), an increase in ~~2021 compared~~capitalized AFUDC related to equity funds ($2.3 million and $5.0 million, respectively), and higher investment income ~~in 2020~~ driven by market volatility ($~~1.7 million)~~1.9 million and $1.7 million, respectively).

Additionally, Other Income, Net increased for the nine ~~months ended September 30, 2021,~~month period as ~~compared to the same period in 2020, due primarily to an increase related to pension, SERP and PBOP non-service income components ($29.6 million),~~a result of an increase in ~~interest income primarily from regulatory deferrals ($13.9 million) and investment income~~equity in ~~2021 compared to investment losses in 2020 driven by market volatility ($2.2 million), partially offset by lower AFUDC~~earnings related to Eversource's equity ~~funds~~method investments ($~~3.1~~7.5 million), and decreased for the three month period as a result of a decrease in equity in earnings related to Eversource’s equity method investments ($1.1 million).

Income Tax Expense ~~decreased~~increased for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to ~~lower~~higher pre-tax earnings ($~~16.5~~18.9 million), higher ~~share-based payment excess tax benefits~~state taxes ($~~0.1~~0.6 million), and ~~the absence of the sale of Hingham water system~~an increase in return to provision adjustments ($~~12.5~~11.2 million), partially offset by ~~higher state taxes ($4.4 million), a decrease~~an increase in amortization of EDIT ($~~0.9~~3.5 million)~~, an increase~~ and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~5.1 million), and a return to provision adjustment ($4.6~~3.6 million).

Income Tax Expense increased for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to higher pre-tax earnings ($47.4 million), higher state taxes ($~~17.8~~6.6 million), lower share-based payment excess tax benefits ($~~2.6 million), a return to provision adjustment ($4.6~~1.9 million), and an increase in return to provision adjustments ($11.2 million), partially offset by an increase in amortization of EDIT ($10.1 million) and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~7.8~~2.2 million)~~, partially offset by the absence of the sale of Hingham water system ($12.5 million) and an increase in amortization of EDIT ($1.4 million)~~.

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 nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 included in this combined Quarterly Report on Form 10-Q:

For the Nine Months Ended September 30,
CL&P NSTAR Electric PSNH
(Millions of Dollars) 2021 2020 Increase/
(Decrease) 2021 2020 Increase/
(Decrease) 2021 2020 Increase/
(Decrease)
Operating Revenues $ 2,736.5 $ 2,711.4 $ 25.1 $ 2,343.1 $ 2,270.2 $ 72.9 $ 887.2 $ 815.3 $ 71.9
Operating Expenses:
Purchased Power and Transmission 1,073.7 1,089.2 (15.5) 711.7 702.1 9.6 279.5 273.3 6.2
Operations and Maintenance 465.6 417.7 47.9 421.6 369.3 52.3 168.2 151.8 16.4
Depreciation 253.1 238.7 14.4 251.5 238.2 13.3 89.5 74.5 15.0
Amortization of Regulatory Assets, Net 76.6 37.2 39.4 24.0 69.1 (45.1) 62.7 39.0 23.7
Energy Efficiency Programs 100.8 109.7 (8.9) 226.1 210.7 15.4 30.5 29.2 1.3
Taxes Other Than Income Taxes 275.3 260.6 14.7 163.5 154.1 9.4 69.7 58.4 11.3
Total Operating Expenses 2,245.1 2,153.1 92.0 1,798.4 1,743.5 54.9 700.1 626.2 73.9
Operating Income 491.4 558.3 (66.9) 544.7 526.7 18.0 187.1 189.1 (2.0)
Interest Expense 124.4 115.0 9.4 106.7 95.0 11.7 42.7 44.1 (1.4)
Other Income, Net 21.7 16.3 5.4 58.9 38.2 20.7 11.6 10.9 0.7
Income Before Income Tax Expense 388.7 459.6 (70.9) 496.9 469.9 27.0 156.0 155.9 0.1
Income Tax Expense 104.6 103.5 1.1 114.6 106.3 8.3 32.5 37.5 (5.0)
Net Income $ 284.1 $ 356.1 $ (72.0) $ 382.3 $ 363.6 $ 18.7 $ 123.5 $ 118.4 $ 5.1


	For the Nine Months Ended September 30,
	CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	2022		2021		Increase		2022		2021		Increase/ (Decrease)		2022		2021		Increase/ (Decrease)
Operating Revenues	$	3,690.6	$	2,736.5	$	954.1	$	2,752.3	$	2,343.1	$	409.2	$	1,077.1	$	887.2	$	189.9
Operating Expenses:
Purchased Power and Transmission	1,585.5		1,073.7		511.8		971.8		711.7		260.1		452.0		279.5		172.5
Operations and Maintenance	515.9		465.6		50.3		475.7		421.6		54.1		194.1		168.2		25.9
Depreciation	265.0		253.1		11.9		269.9		251.5		18.4		95.0		89.5		5.5
Amortization of Regulatory Assets, Net	318.3		76.6		241.7		65.3		24.0		41.3		43.4		62.7		(19.3)
Energy Efficiency Programs	103.1		100.8		2.3		255.2		226.1		29.1		28.7		30.5		(1.8)
Taxes Other Than Income Taxes	290.5		275.3		15.2		185.8		163.5		22.3		73.4		69.7		3.7
Total Operating Expenses	3,078.3		2,245.1		833.2		2,223.7		1,798.4		425.3		886.6		700.1		186.5
Operating Income	612.3		491.4		120.9		528.6		544.7		(16.1)		190.5		187.1		3.4
Interest Expense	125.2		124.4		0.8		119.0		106.7		12.3		43.4		42.7		0.7
Other Income, Net	61.3		21.7		39.6		101.4		58.9		42.5		23.4		11.6		11.8
Income Before Income Tax Expense	548.4		388.7		159.7		511.0		496.9		14.1		170.5		156.0		14.5
Income Tax Expense	126.3		104.6		21.7		110.7		114.6		(3.9)		36.4		32.5		3.9
Net Income	$	422.1	$	284.1	$	138.0	$	400.3	$	382.3	$	18.0	$	134.1	$	123.5	$	10.6

Operating Revenues

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


		For the Nine Months Ended September 30,						For the Nine Months Ended September 30,
		2021	2020	Increase	Percentage Increase			2022	2021	Percentage Increase
CL&P	CL&P	15,728	15,318	410	2.7	%	CL&P	15,781	15,728	0.3	%
NSTAR Electric	NSTAR Electric	17,343	17,086	257	1.5	%	NSTAR Electric	17,577	17,343	1.3	%
PSNH	PSNH	5,901	5,805	96	1.7	%	PSNH	5,927	5,901	0.4	%

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 ~~$25.1~~$954.1 million at CL&P, ~~$72.9~~$409.2 million at NSTAR Electric, and ~~$71.9~~$189.9 million at PSNH, for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020.~~2021.

Base Distribution Revenues:

•CL&P's distribution revenues decreased $3.5 million due primarily to the base distribution rate decrease implemented June 1, 2021. The decrease in the base distribution rate on June 1, 2021 was due primarily to the completion of the recovery of certain storm cost amortization and therefore the base rate decrease did not impact earnings. Excluding the reduction to revenue resulting from the completion of certain storm cost amortization, base distribution revenues increased ~~due to the impact of a base distribution rate increase effective May 1, 2020.~~$0.4 million.

•NSTAR Electric's distribution revenues increased ~~$17.6~~$31.6 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 ~~$22.2~~$5.4 million due primarily to the impact of its base distribution rate ~~increases~~increase effective ~~January~~August 1, 2021 ~~and August 1, 2021.~~to reflect plant additions in calendar year 2020 included in its revenue requirement.

Electric distribution revenues at CL&P also ~~decreased $65~~increased $93.4 million for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due to the absence of a 2021 reserve established to provide bill credits to customers as a result of CL&P’s settlement agreement on October 1, 2021 ~~in which~~and a storm performance penalty assessed by PURA. In the 2021 settlement agreement, CL&P agreed to provide a total of $65 million of customer credits, ~~to be~~which were distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. In the third quarter of 2021, CL&P recorded a current regulatory liability associated with the provisions of the settlement agreement, with a $65 million pre-tax charge as a reduction to Operating Revenues. Additionally, CL&P recorded a $28.4 million reserve in the first quarter of 2021 for a civil penalty for non-compliance with storm performance standards that ~~is currently being~~was provided as credits to ~~customer~~customers on electric bills beginning on September 1, 2021 over a one-year period. The penalty was reclassified from Operations and Maintenance expense to a reduction of Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement. ~~For further information, see "Regulatory Developments and Rate Matters - Connecticut" included in this~~ ~~Management’s Discussion and Analysis~~.

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. Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return 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.

Tracked revenues increased/(decreased) for the nine months ended September 30, ~~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	$	(30.5)	$	(102.8)	$	(14.7)	Energy supply procurement	$	397.3	$	117.0	$	188.4
Retail transmission	Retail transmission	22.6		97.9		35.7		Retail transmission	94.8		135.3		(6.1)
Energy Efficiency								Energy Efficiency	4.8		31.0		2.1
Stranded costs								Stranded costs	(2.7)		(11.7)		(45.5)
Other distribution tracking mechanisms	Other distribution tracking mechanisms	(5.9)		29.2		13.6		Other distribution tracking mechanisms	1.0		19.5		(1.0)
Wholesale Market Sales Revenue	Wholesale Market Sales Revenue	114.2		24.9		9.9		Wholesale Market Sales Revenue	378.2		98.4		38.5

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

The increase in ~~electric distribution~~ wholesale market sales revenue was due primarily to higher average electricity market prices received for wholesale sales at CL&P, ~~for the nine months ended September 30, 2021, as compared to the same period in 2020.~~NSTAR Electric and PSNH. ISO-NE average market prices received for CL&P’s wholesale sales increased approximately 96116 percent for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~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 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 non-bypassable component of the FMCC rate. The increase in wholesale market sales revenues at CL&P, NSTAR Electric and PSNH was also driven by higher proceeds from the sale of transmission rights over a one year period 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 ~~$40.6~~$49.3 million at CL&P, ~~$35.2~~$50.4 million at NSTAR Electric, and ~~$18.7~~$31.8 million at PSNH for the nine months ended September 30, ~~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. ~~The increase was partially offset by a lower benefit from the annual billing and cost reconciliation filing with FERC.~~

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 in rates charged to their customers. The impact of eliminations decreased revenues by ~~$22.1~~$55.6 million at CL&P, ~~$34.5~~$58.4 million at NSTAR Electric and ~~$18.0~~$18.6 million at PSNH for the nine months ended September 30, ~~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 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 nine months ended September 30, ~~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	$	(16.0)	$	(53.1)	$	(12.4)	Purchased Power Costs	$	461.8	$	182.8	$	187.2
Transmission Costs	Transmission Costs	21.6		97.2		36.7		Transmission Costs	103.3		135.6		3.8
Eliminations	Eliminations	(21.1)		(34.5)		(18.1)		Eliminations	(53.3)		(58.3)		(18.5)
Total Purchased Power and Transmission	Total Purchased Power and Transmission	$	(15.5)	$	9.6	$	6.2	Total Purchased Power and Transmission	$	511.8	$	260.1	$	172.5

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 was due primarily to ~~lower expense related to the procurement of~~higher energy supply procurement costs resulting from ~~lower~~higher average prices,~~partially offset by higher~~ ~~average supply-related sales volumes. The lower energy supply expense was~~ partially offset by lower average supply-related volumes. The increase was also due to higher long-term contractual energy-related costs and higher net metering costs that are recovered in the ~~NBFMCC~~non-bypassable component of the FMCC mechanism.

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

•The increase at PSNH was due primarily to higher energy supply procurement costs resulting from higher average prices and ~~lower~~higher average supply-related sales volumes.

•~~The decrease at PSNH was due primarily to lower expense related to the procurement of energy supply resulting from lower average prices, partially offset by higher~~ ~~average supply-related sales volumes~~.

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

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

•The increase in transmission costs at NSTAR Electric and PSNH was due primarily to an increase in costs billed by ISO-NE and an increase in the retail transmission cost deferral, partially offset by a decrease in Local Network Service charges.network.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). Operations and Maintenance expense increased for the nine months ended September 30, ~~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 charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021		$	10.0	$	—	$	—
Funding of CL&P storm reserve as part of June 1, 2021 rate change		10.0		—		—
General costs (including outside corporate services, insurance, fees and assessments)								General costs (including outside corporate services, insurance, fees and assessments)	$	11.1	$	8.4	$	4.1
Shared corporate costs (including computer software depreciation at Eversource Service)								Shared corporate costs (including computer software depreciation at Eversource Service)	6.5		9.8		2.3
Storm costs								Storm costs	6.6		(2.8)		5.8
Operations-related expenses (including vegetation management, outside services and vehicles)								Operations-related expenses (including vegetation management, outside services and vehicles)	5.6		(1.2)		1.3
Employee-related expenses, including labor and benefits	Employee-related expenses, including labor and benefits	(3.5)		12.1		5.7		Employee-related expenses, including labor and benefits	5.3		1.7		2.8
Storm restoration costs		7.7		9.3		3.4
Vegetation Management		1.0		0.6		10.0
Operations-related expenses, including vehicles and outside services		7.8		—		(2.2)
Shared corporate costs (including computer software depreciation at Eversource Service)		4.5		10.0		1.3
Absence in 2022 of CL&P charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021								Absence in 2022 of CL&P charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021	(10.0)		—		—
Other non-tracked operations and maintenance	Other non-tracked operations and maintenance	1.6		2.8		1.8		Other non-tracked operations and maintenance	(0.1)		5.2		(0.7)
Total Base Electric Distribution (Non-Tracked Costs)	Total Base Electric Distribution (Non-Tracked Costs)	39.1		34.8		20.0		Total Base Electric Distribution (Non-Tracked Costs)	25.0		21.1		15.6
Tracked Costs:	Tracked Costs:							Tracked Costs:
Transmission expenses	Transmission expenses	3.0		3.5		3.9		Transmission expenses	17.7		7.2		8.8
Other tracked operations and maintenance	Other tracked operations and maintenance	5.8		14.0		(7.5)		Other tracked operations and maintenance	7.6		25.8		1.5
Total Tracked Costs	Total Tracked Costs	8.8		17.5		(3.6)		Total Tracked Costs	25.3		33.0		10.3
Total Operations and Maintenance	Total Operations and Maintenance	$	47.9	$	52.3	$	16.4	Total Operations and Maintenance	$	50.3	$	54.1	$	25.9

Depreciation increased ~~for~~for the nine months ended September 30, ~~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 for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•~~The~~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 ~~increase~~decrease at PSNH was due to 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.

•The ~~decrease~~increase at CL&P and 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 ~~increases~~decrease at ~~NSTAR Electric and~~ 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 for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

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

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

Interest Expense increased ~~at CL&P and NSTAR Electric and decreased at PSNH~~ for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:

•The increase at CL&P was due to higher interest on long-term debt ($~~4.0~~0.8 million), ~~a decrease~~higher interest expense on regulatory deferrals ($0.8 million), and higher amortization of debt discounts and premiums, net ($0.3 million), partially offset by an increase in capitalized AFUDC related to debt funds ($~~3.4 million), and an increase in interest expense on regulatory deferrals ($2.4~~1.1 million).

•The increase at NSTAR Electric was due to ~~an increase in~~higher interest on long-term debt ($11.8 million), higher interest expense on regulatory deferrals ($~~6.1~~2.3 million), higher amortization of debt discounts and premiums, net ($0.5 million), and a decrease in capitalized AFUDC related to debt funds ($0.2 million), partially offset by lower interest resulting from the 2022 payment of withheld property taxes at NSTAR Electric ($2.9 million).

•The increase at PSNH was due to higher interest expense on regulatory deferrals ($1.8 million), higher interest on short-term notes payable ($1.1 million), and higher interest on long-term debt ($~~5.7~~0.6 million).

•~~The decrease at PSNH was due to~~, partially offset by lower amortization of debt discounts and premiums, net ($1.6 million), a decrease ~~in interest expense on regulatory deferrals ($1.1 million) and a decrease in~~in RRB interest expense ($1.0 million)~~, partially offset by a decrease~~ and an increase in capitalized AFUDC related to debt funds ($~~1.2~~0.3 million).

Other Income, Net increased for the nine months ended September 30, ~~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 an increase related to pension, SERP and PBOP non-service income components ($~~8.2~~37.1 million), an increase in capitalized AFUDC related to equity funds ($4.2 million) and an increase in interest income primarily on regulatory deferrals ($~~2.3~~0.5 million), ~~and an increase~~partially offset by investment losses in 2022 compared to investment income in 2021 driven by market volatility ($~~1.2 million), partially offset by a decrease in AFUDC related to equity funds ($6.3~~2.1 million).

•The increase at NSTAR Electric was due primarily to an increase related to pension, SERP and PBOP non-service income components ($~~8.1~~33.7 million), and an increase in interest income primarily on regulatory deferrals ($~~8.1~~10.0 million), ~~an increase~~partially offset by a decrease in capitalized AFUDC related to equity funds ($~~2.8 million), and investment income in 2021 compared to investment losses in 2020 driven by market volatility ($2.1~~1.1 million).

•The increase at PSNH was due primarily to an increase related to pension, SERP and PBOP non-service income components ($~~2.7~~12.2 million) and an increase in ~~investment income driven by market volatility~~capitalized AFUDC related to equity funds ($~~0.2~~0.5 million), partially offset by a decrease in ~~AFUDC related to equity funds~~interest income primarily on regulatory deferrals ($~~2.3~~0.9 million).

Income Tax Expense increased/decreased for the nine months ended September 30, ~~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 ($33.5 million), higher state taxes ($~~11.0~~0.7 million), and lower share-based payment excess tax benefits ($0.7 million), partially offset by a decrease in return to provision adjustments ($6.3 million), an increase in amortization of EDIT ($1.5 million), and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($5.4 million).

•The decrease at NSTAR Electric was due primarily to an increase in amortization of EDIT ($9.7 million), partially offset by an increase in pre-tax earnings ($2.9 million), higher state taxes ($0.7 million), lower share-based payment excess tax benefits ($~~0.8~~0.6 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~4.2 million), partially offset by lower pre-tax earnings ($14.9~~1.6 million).

•The increase at ~~NSTAR Electric~~PSNH was due primarily to higher pre-tax earnings ($~~5.7~~3.0 million), higher state taxes ($~~1.5~~1.8 million), ~~an increase in items that impact our tax rate as~~ a ~~result of regulatory treatment (flow-through items) and permanent differences ($0.2 million), and lower share-based payment excess tax benefits ($0.9 million).~~

•~~The~~ decrease ~~at PSNH was due primarily to an increase~~ in amortization of EDIT ($~~4.2 million) and lower state taxes ($1.3 million), partially offset by lower share-based payment excess tax benefits ($0.3 million), higher pre-tax earnings ($0.1~~0.4 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~0.1~~1.0 million), partially offset by a decrease in return to provision adjustments ($2.3 million).

EARNINGS SUMMARY

CL&P's earnings ~~decreased $72.0~~increased $138.0 million for the nine months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the ~~settlement agreement on~~absence in 2022 of the October 1, 2021 ~~resulting~~settlement agreement that resulted in a ~~total~~ $75 million pre-tax charge to earnings and a $28.6 million pre-tax charge to earnings for ~~an assessment~~a storm performance penalty imposed by PURA as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020 recorded in ~~the first quarter of~~ 2021. The after-tax impact of the settlement agreement and ~~the~~ storm performance ~~assessment~~penalty imposed by the PURA was $85.8 ~~million, or $0.25 per share.~~million. Earnings were also ~~unfavorably~~favorably impacted by higher operations and maintenance expense, a higher effective tax rate, higher depreciation expense, higher property and other tax expense, and higher interest expense. The earnings decrease was partially offset by higher earnings from its capital ~~tracker~~tracking mechanism due to increased electric system improvements, ~~the base distribution rate increase effective May 1, 2020, and an increase in transmission earnings driven by a higher transmission rate base.~~

~~NSTAR Electric's earnings increased $18.7 million for the nine months ended September 30, 2021, as compared to the same period in 2020, due primarily to~~ an increase in transmission earnings driven by a higher transmission rate base, ~~and the base distribution rate increase effective January 1, 2021. The earnings increase was partially offset by higher operations and maintenance~~lower pension plan expense, ~~driven by higher employee-related expenses~~ and ~~higher storm restoration costs, higher depreciation expense and higher interest expense.~~

PSNH's earnings increased $5.1 million for the nine months ended September 30, 2021, as compared to the same period in 2020, due primarily to the base distribution rate increases effective January 1, 2021 and August 1, 2021, an increase in transmission earnings driven by a higher transmission rate base, a lower effective tax rate resulting from the income tax return to provision adjustment in the third quarter and ~~the impact~~a decrease in ~~2021 of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement.~~permanent and flow-through income tax items. The earnings increase was partially offset by higher operations and maintenance expense, higher depreciation expense, and higher property and other tax expense.

NSTAR Electric's earnings increased $18.0 million for the nine months ended September 30, 2022, as compared to the same period in 2021, due primarily to the base distribution rate increase effective January 1, 2022, an increase in transmission earnings driven by a higher transmission rate base, and an increase in interest income primarily on regulatory deferrals. The earnings increase was partially offset by higher operations and maintenance expense, higher property and other tax expense, higher depreciation expense, and higher interest expense.

PSNH's earnings increased $10.6 million for the nine months ended September 30, 2022, as compared to the same period in 2021, due primarily to an increase in transmission earnings driven by a higher transmission rate base, lower pension plan expense, and the base distribution rate increase effective August 1, 2021. The earnings increase was partially offset by higher operations and maintenance expense, the absence in 2022 of a favorable impact of a new tracker mechanism at PSNH approved as part of the 2020 rate settlement agreement that was recorded in 2021, and higher depreciation expense.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of ~~$450.6~~$554.3 million for the nine months ended September 30, ~~2021,~~2022, as compared to ~~$399.2~~$450.6 million in the same period of ~~2020.~~2021. The increase in operating cash flows was due primarily to an increase in regulatory over-recoveries (excluding storm payments) driven by the timing of collections for the non-bypassable FMCC and other regulatory tracking mechanisms, the ~~timing~~absence in 2022 of ~~other working capital items, and a $10.6~~pension contributions of $78.9 million ~~decrease in income tax payments~~ made in 2021, ~~as compared to 2020. These favorable impacts were partially offset by a $55.7 million increase in pension contributions made in 2021, as compared to 2020,~~and the timing of cash payments made on our accounts ~~payable,~~payable. The impact of regulatory collections are included in both Regulatory Over/Under Recoveries and Amortization of Regulatory Assets on the statements of cash ~~payments made in 2021 for storm restoration costs of approximately $52 million related to Tropical Storm Isaias, and~~flows. These favorable impacts were partially offset by the timing of cash collections on our accounts ~~receivable.~~receivable, $72.0 million of customer credits distributed in the first nine months of 2022 as a result of the October 2021 settlement agreement and the 2021 storm performance penalty for CL&P’s response to Tropical Storm Isaias, an increase of $53.9 million in cash payments for storm costs, a $42.2 million increase in income tax payments made in 2022, as compared to 2021, and the timing of other working capital items.

NSTAR Electric had cash flows provided by operating activities of ~~$617.3~~$634.6 million for the nine months ended September 30, ~~2021,~~2022, as compared to ~~$502.6~~$617.3 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, a $37.0 million increase in income tax refunds received in 2022, as compared to 2021, an increase in regulatory over-recoveries (excluding storm payments) driven by the timing of collections for regulatory tracking mechanisms, ~~income tax refunds received of $7.5 million in 2021, as compared to $39.3 million of income tax~~cash payments made ~~in 2020,~~on our accounts payable, and the timing of other working capital items. The impact of regulatory collections are included in both Regulatory Over/Under Recoveries and Amortization of Regulatory Assets on the statements of cash flows. These favorable impacts were partially offset by ~~the timing~~an increase of $109.8 million in cash payments ~~made on our accounts payable,~~for storm costs, a ~~$9.4~~$76.1 million payment in the second quarter of 2022 related to withheld property taxes, and an increase of $5.0 million in pension contributions made in ~~2021,~~2022, as compared to ~~2020, and the timing of cash collections on our accounts receivable.~~2021.

PSNH had cash flows provided by operating activities of ~~$237.2~~$246.7 million for the nine months ended September 30, ~~2021,~~2022, as compared to ~~$149.2~~$237.2 million in the same period of ~~2020.~~2021. The increase in operating cash flows was due primarily to the timing of cash payments made on our accounts payable and an increase in regulatory over-recoveries driven by the timing of collections for regulatory tracking ~~mechanisms primarily related to transmission costs,~~mechanisms. The impact of regulatory collections are included in both Regulatory Over/Under Recoveries and Amortization of Regulatory Assets on the ~~absence in 2021~~statements of ~~pension contributions of $19.5 million made in 2020, and the timing of other working capital items.~~cash flows. These favorable impacts were partially offset by the timing of cash ~~payments made~~collections on our accounts ~~payable.~~receivable, the timing of other working capital items, an increase of $5.7 million in cost of removal expenditures, and a $4.0 million increase in income tax payments made in 2022, as compared to 2021.

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.

RESULTS OF OPERATIONS – THE CONNECTICUT LIGHT AND POWER COMPANY

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P for the three months ended September 30, ~~2021~~2022 and ~~2020~~2021 included in this combined Quarterly Report on Form 10-Q:

For the Three Months Ended September 30,
(Millions of Dollars) 2021 2020 Increase/(Decrease)
Operating Revenues $ 919.6 $ 994.3 $ (74.7)
Operating Expenses:
Purchased Power and Transmission 392.3 399.1 (6.8)
Operations and Maintenance 137.8 147.5 (9.7)
Depreciation 85.3 80.6 4.7
Amortization of Regulatory Assets, Net 28.9 36.4 (7.5)
Energy Efficiency Programs 35.7 41.8 (6.1)
Taxes Other Than Income Taxes 99.9 97.7 2.2
Total Operating Expenses 779.9 803.1 (23.2)
Operating Income 139.7 191.2 (51.5)
Interest Expense 42.7 38.4 4.3
Other Income, Net 6.9 5.9 1.0
Income Before Income Tax Expense 103.9 158.7 (54.8)
Income Tax Expense 33.7 38.6 (4.9)
Net Income $ 70.2 $ 120.1 $ (49.9)


	For the Three Months Ended September 30,
(Millions of Dollars)	2022		2021		Increase/(Decrease)
Operating Revenues	$	1,369.1	$	919.6	$	449.5
Operating Expenses:
Purchased Power and Transmission	641.1		392.3		248.8
Operations and Maintenance	189.9		137.8		52.1
Depreciation	89.5		85.3		4.2
Amortization of Regulatory Assets, Net	105.8		28.9		76.9
Energy Efficiency Programs	37.9		35.7		2.2
Taxes Other Than Income Taxes	104.2		99.9		4.3
Total Operating Expenses	1,168.4		779.9		388.5
Operating Income	200.7		139.7		61.0
Interest Expense	42.4		42.7		(0.3)
Other Income, Net	21.9		6.9		15.0
Income Before Income Tax Expense	180.2		103.9		76.3
Income Tax Expense	36.9		33.7		3.2
Net Income	$	143.3	$	70.2	$	73.1

Operating Revenues

Sales Volumes: CL&P's retail electric GWh sales volumes were ~~5,776~~5,862 and ~~5,798~~5,776 for the three months ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively, resulting in ~~a decrease~~an increase of ~~0.4~~1.5 percent. Fluctuations in retail electric sales volumes do not impact earnings due to its PURA-approved distribution revenue decoupling mechanism.

Operating Revenues: Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, ~~decreased $74.7~~increased $449.5 million for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020.~~2021.

Base Distribution Revenues: CL&P's base distribution revenues decreased $9.1 million due primarily to the impact of a base distribution rate decrease implemented on June 1, 2021. The decrease in the base distribution rate was due primarily to the completion of the recovery of certain storm cost amortization and therefore the base rate decrease did not impact earnings.were flat.

Electric distribution revenues also ~~decreased $65~~increased $93.4 million for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due to the absence of a 2021 reserve established to provide bill credits to customers as a result of CL&P’s settlement agreement on October 1, 2021 ~~in which~~and a storm performance penalty assessed by PURA. In the 2021 settlement agreement, CL&P agreed to provide a total of $65 million of customer credits, ~~to be~~which were distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. In the third quarter of 2021, CL&P recorded a current regulatory liability associated with the provisions of the settlement agreement, with a $65 million pre-tax charge as a reduction to Operating Revenues. Additionally, CL&P recorded a $28.4 million reserve in the first quarter of 2021 for a civil penalty for non-compliance with storm performance standards that ~~is currently being~~was provided as credits to ~~customer~~customers on electric bills beginning on September 1, 2021 over a one-year period. The penalty was reclassified from Operations and Maintenance expense to a reduction of Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement. ~~For further information, see "Regulatory Developments and Rate Matters - Connecticut" included in this~~ ~~Management’s Discussion and Analysis~~.

Tracked Revenues: Tracked revenues increased/(decreased) for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)
Retail Tariff Tracked Revenues:
Energy supply procurement	$	~~(14.5)~~199.2
Retail transmission	~~13.5~~31.5
Other distribution tracking mechanisms	~~(20.4)~~(5.2)
Wholesale Market Sales Revenue	~~40.3~~132.6

The ~~decrease~~increase in energy supply procurement was driven by ~~lower~~higher average prices ~~partially offset by~~and higher average supply-related sales 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 and Transmission Expense" below.

The increase in electric distribution wholesale market sales revenue was due primarily to higher average electricity market prices received for wholesale ~~sales for the three months ended September 30, 2021, as compared to the same period in 2020.~~sales. ISO-NE average market prices received for CL&P’s wholesale sales increased approximately ~~100~~91 percent for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~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 2022. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and the 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 non-bypassable component of the FMCC rate. The increase in wholesale market sales revenues was also driven by higher proceeds from the sale of transmission rights over a one year period under CL&P’s Hydro-Quebec transmission support agreements. Proceeds from these sales are credited back to customers.

Transmission Revenues: Transmission revenues increased ~~$13.9~~$16.2 million due primarily to a higher transmission rate base as a result of continued investment in our transmission infrastructure.

Eliminations: Eliminations are primarily related to transmission revenues derived from ISO-NE regional transmission charges to the distribution business that recover the costs of the wholesale transmission business. The impact of eliminations decreased revenues by ~~$8.5~~$13.7 million.

Purchased Power and Transmission expense includes costs associated with purchasing electricity on behalf of CL&P's 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 PURA-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power and Transmission expense ~~decreased~~increased for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)
Purchased Power Costs	$	~~(13.3)~~225.8
Transmission Costs	~~14.9~~36.6
Eliminations	~~(8.4)~~(13.6)
Total Purchased Power and Transmission	$	~~(6.8)~~248.8

The ~~decrease~~increase in purchased power costs was due primarily to ~~lower expense related to the procurement of~~higher energy supply procurement costs resulting from ~~lower~~higher average prices ~~partially offset by~~and higher average supply-related ~~sales~~ volumes. The ~~lower energy supply expense~~increase was ~~partially offset by~~also due to higher long-term contractual energy-related costs and higher net metering costs that are recovered in the ~~NBFMCC~~non-bypassable component of the FMCC mechanism.

The increase in transmission costs was due primarily to an increase ~~in costs billed by ISO-NE that support regional grid investments. This was partially offset by a decrease in~~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 costs billed by ISO-NE that support regional grid investments.

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 September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the following:


(Millions of Dollars)
Base Electric Distribution (Non-Tracked Costs):
Absence in 2022 of CL&P ~~assessment by PURA~~charge for Tropical Storm Isaias ~~response;~~response in 2021 that was reflected as reduction to Operating Revenues in the third quarter of 2021 in connection with the finalization of the settlement agreement	$	~~(28.4)~~28.4
~~Charge~~General costs (including outside corporate services, insurance, fees and assessments)	9.6
Storm costs	7.8
Absence in 2022 of CL&P charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021	~~10.0~~
~~Funding of CL&P storm reserve as part of June 1, 2021 rate change~~	~~6.0~~
~~Employee-related expenses, including labor and benefits~~	~~(7.2)~~
~~Storm Restoration Costs~~	~~(2.7)~~
~~Vegetation management~~	~~3.5~~
~~Operations-related expenses, including vehicles and outside services~~	~~3.4~~ (10.0)
Other non-tracked operations and maintenance	~~0.3~~3.1
Total Base Electric Distribution (Non-Tracked Costs)	~~(15.1)~~38.9
Total Tracked Costs - Increase due primarily to higher transmission expenses	~~5.4~~13.2
Total Operations and Maintenance	$	~~(9.7)~~52.1

Depreciation expense increased for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to a higher net plant in service balance.

Amortization of Regulatory Assets, Net expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory-approved cost tracking mechanisms, and the amortization of certain costs as those costs are collected in rates. This deferral adjusts expense to match the corresponding revenues. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization of Regulatory Assets, Net ~~decreased~~increased for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due to ~~a decrease in storm amortization expense related to the completion of the amortization period of certain storm cost deferred assets. The decrease was partially offset by an increase in~~ the deferral adjustment of energy supply, energy-related and ~~energy-related~~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.

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 ~~decreased~~increased for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, 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~~Taxes increased ~~for~~for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to higher property taxes as a result of a higher utility plant balance and higher gross earnings taxes.

~~Interest Expense~~ increased for the three months ended September 30, 2021, as compared to the same period in 2020, due primarily to higher interest on long-term debt ($2.5 million), a decrease in AFUDC related to debt funds ($1.0 million), and an increase in interest expense on regulatory deferrals ($0.7 million).

Other Income, Net increased for the three months ended September 30, ~~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 ($12.0 million), an increase in capitalized AFUDC related to equity funds ($~~3.3~~2.0 million) ~~and~~, an increase in interest income primarily onfrom regulatory deferrals ($~~1.0~~0.5 million), ~~partially offset by a decrease~~and investment income in ~~AFUDC related~~2022 compared to ~~equity funds ($1.9 million) and~~ investment losses in 2021 ~~compared to investment income in 2020~~ driven by market volatility ~~($1.5~~($0.5 million).

Income Tax Expense ~~decreased~~increased for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to ~~lower~~higher pre-tax earnings ($~~11.6~~16.0 million), partially offset by ~~higher~~lower state taxes ($~~4.1~~0.5 million), a decrease in return to provision adjustments ($6.3 million), and ~~an increase~~a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~2.6~~6.0 million).

EARNINGS SUMMARY

CL&P's earnings ~~decreased $49.9~~increased $73.1 million for the three months ended September 30, ~~2021,~~2022, as compared to the same period in ~~2020,~~2021, due primarily to the ~~settlement agreement on~~absence in 2022 of the October 1, 2021 ~~resulting~~settlement agreement that resulted in a ~~total~~ $75 million pre-tax charge to ~~earnings.~~earnings recorded in 2021. The after-tax impact of the settlement agreement was $63.2 ~~million, or $0.19 per share.~~million. Earnings were also ~~unfavorably~~favorably impacted by a higher effective tax rate, higher depreciation expense, and higher interest expense. The earnings decrease was partially offset by higher earnings from its capital tracker mechanism due to increased electric system improvements and an increase in transmission earnings driven by a higher transmission rate ~~base.~~base, higher earnings from its capital tracking mechanism due to increased electric system improvements, a lower effective tax rate resulting from the income tax return to provision adjustment and a decrease in permanent and flow-through income tax items, and lower pension plan expense. The earnings increase was partially offset by higher operations and maintenance expense, higher depreciation expense, and higher property and other tax expense.

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 September 30, ~~2021,~~2022, our regulated companies held collateral (letters of credit or cash) of ~~$108.5~~$75.4 million from counterparties related to our standard service contracts. As of September 30, ~~2021,~~2022, Eversource had ~~$34.6~~$35.4 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 September 30, ~~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 September 30, ~~2021~~2022 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

6966

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. ~~The following risk factor should be read in conjunction~~

~~with the risk factors described in the 2020 Form 10-K.~~

~~Regulatory, Legislative and Compliance Risks:~~

~~The actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity.~~

The rates that our electric, natural gas and water companies charge their customers are determined by their state regulatory commissions and by the FERC. These commissions also regulate the companies' accounting, operations, the issuance of certain securities and certain other matters. The FERC also regulates the transmission of electric energy, the sale of electric energy at wholesale, accounting, issuance of certain securities and certain other matters, including reliability standards through the North American Electric Reliability Corporation (NERC).

Under state and federal law, our electric, natural gas and water companies are entitled to charge rates that are sufficient to allow them an opportunity to recover their prudently incurred operating and capital costs and a reasonable rate of return on invested capital, to attract needed capital and maintain their financial integrity, while also protecting relevant public interests. Our electric, natural gas and water companies ~~are required to engage in regulatory approval proceedings as a part of the process of establishing the terms and rates for their respective services.~~ Each of these companies prepares and submits periodic rate filings with their respective regulatory commissions for review and approval, which allows for various entities to challenge our current or future rates, structures or mechanisms and could alter or limit the rates we are allowed to charge our customers. ~~These proceedings typically involve multiple parties, including governmental bodies and officials, consumer advocacy groups, and various consumers of energy, who have differing concerns. Any change~~ in rates, including changes in allowed rate of return, are subject to regulatory approval proceedings that can be contentious, lengthy, and subject to appeal. This may lead to uncertainty as to the ultimate result of those proceedings. Established rates are also subject to subsequent prudency reviews by state regulators, whereby various portions of rates could be adjusted, subject to refund or disallowed, including cost recovery mechanisms. The ultimate outcome and timing of regulatory rate proceedings could have a significant effect on our ability to recover costs or earn an adequate return. ~~Adverse decisions in our proceedings could adversely affect our financial position, results of operations and cash flows.~~

There can be no assurance that regulators will approve the recovery of all costs incurred by our electric, natural gas and water companies, including costs for construction, operation and maintenance, and storm restoration. The inability to recover a significant amount of operating costs could have an adverse effect on a company’s financial position, results of operations and cash flows.

Changes to rates may occur at times different from when costs are incurred. Additionally, catastrophic events at other utilities could result in our regulators and legislators imposing additional requirements that may lead to additional costs for the companies.

In addition to the risk of disallowance of incurred costs, regulators may also impose downward adjustments in a company’s allowed ROE as well as assess penalties and fines. These actions would have an adverse effect on our financial position, results of operations and cash flows.

The FERC has jurisdiction over our transmission costs recovery and our allowed ROEs. Certain outside parties have filed four complaints against all electric companies under the jurisdiction of ISO-NE alleging that our allowed ROEs are unjust and unreasonable. An adverse decision in any of these four complaints could adversely affect our financial position, results of operations and cash flows.

FERC's policy has encouraged competition for transmission projects, even within existing service territories of electric companies. Implementation of FERC's goals, including within our service territories, may expose us to competition for construction of transmission projects, additional regulatory considerations, and potential delay with respect to future transmission projects, which may adversely affect our results of operations and lower rate base growth.

Changes in tax laws, as well as the potential tax effects of business decisions could negatively impact our business, results of operations (including our expected project returns from our planned offshore wind facilities), financial condition and cash flows.

~~Other than as set forth above, 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)
July 1 - July 31, 2021 — $ — — —
August 1 - August 31, 2021 21 89.05 — —
September 1 - September 30, 2021 2,377 82.19 — —
Total 2,398 $ 82.25 — —


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)
July 1 - July 31, 2022	—	$	—	—	—
August 1 - August 31, 2022	—	—		—	—
September 1 - September 30, 2022	2,430	79.15		—	—
Total	2,430	$	79.15	—	—

7167

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	Fifteenth Supplemental Indenture between Eversource Energy and The Bank of New York Trust Company, N.A., as Trustee, dated as of August 1, 2021, relating to $350 million aggregate principal amount of Floating Rate Senior Notes, Series T, Due 2023 and $300 million aggregate principal amount of Senior Notes, Series U, Due 2026 (Exhibit 4.1, Eversource Energy Current Report on Form 8-K filed on August 13, 2021, 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)
*	4	Form of ~~1.95%~~4.95% Debenture due ~~2031 (Exhibit 4,~~September 15, 2052 (Exhibit 4.1, NSTAR Electric Company Current Report on Form 8-K filed on ~~August 23, 2021,~~September 15, 2022, File No. ~~001-02301)~~001-02301)

	4.1	First Amendment to Second Amended and Restated Credit Agreement, dated October 17, 2022, by and between NSTAR Electric Company and the Banks named therein, pursuant to which Barclays Bank PLC serves as Administrative Agent and Swing Line Lender

	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, PSNH)
	4	First Amendment to Second Amended and Restated Credit Agreement, dated October 17, 2022, by and among Eversource Energy, Aquarion Water Company of Connecticut, NSTAR Gas Company, The Connecticut Light and Power Company, Public Service Company of New Hampshire, Yankee Gas Services Company and Eversource Gas Company of Massachusetts and the Banks named therein, pursuant to which Bank of America, N.A. serves as Administrative Agent and Swing Line Lender

	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~~

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			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 September 30, ~~2021,~~2022, formatted in Inline XBRL

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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

November ~~5, 2021~~4, 2022	By:	/s/ ~~Jay S. Buth~~John M. Moreira
		~~Jay S. Buth~~John M. Moreira
		Executive Vice President, ~~Controller~~Chief Financial Officer and ~~Chief Accounting Officer~~Treasurer
		(Principal Financial Officer)

SIGNATURE


	THE CONNECTICUT LIGHT AND POWER COMPANY

November ~~5, 2021~~4, 2022	By:	/s/ ~~Jay S. Buth~~John M. Moreira
		~~Jay S. Buth~~John M. Moreira
		Executive Vice President, ~~Controller~~Chief Financial Officer and ~~Chief Accounting Officer~~Treasurer
		(Principal Financial Officer)

SIGNATURE


	NSTAR ELECTRIC COMPANY

November ~~5, 2021~~4, 2022	By:	/s/ ~~Jay S. Buth~~John M. Moreira
		~~Jay S. Buth~~John M. Moreira
		Executive Vice President, ~~Controller~~Chief Financial Officer and ~~Chief Accounting Officer~~Treasurer
		(Principal Financial Officer)

SIGNATURE


	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

November ~~5, 2021~~4, 2022	By:	/s/ ~~Jay S. Buth~~John M. Moreira
		~~Jay S. Buth~~John M. Moreira
		Executive Vice President, ~~Controller~~Chief Financial Officer and ~~Chief Accounting Officer~~Treasurer
		(Principal Financial Officer)

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