0000072741us-gaap:~~OperatingSegmentsMemberes:WaterDistributionSegmentMemberes:CommercialMember2022-01-012022-09-30~~IntersegmentEliminationMember2022-07-012022-09-30



	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, ~~2022~~2023
	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 registrant's classes of common stock, as of the latest practicable date.


Company - Class of Stock	Outstanding as of October 31, ~~2022~~2023

Eversource Energy Common Shares, $5.00 par value	~~348,307,416~~349,326,209	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 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
HEEC			Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric
Eversource Service			Eversource Energy Service Company
North East Offshore			North East Offshore, LLC, an offshore wind business 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, 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
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 ~~2021~~2022 Form 10-K			The Eversource Energy and Subsidiaries ~~2021~~2022 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
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
LPG			Liquefied petroleum gas
LRS			Supplier of last resort service
MG			Million gallons
MGP			Manufactured Gas Plant
MMBtu			~~One million~~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
PPAM			Pole Plant Adjustment Mechanism
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
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	4240
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries	58

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	6665

ITEM 4.	Controls and Procedures	6665

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	6766

ITEM 1A.	Risk Factors	6766

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6766

ITEM 3.	Defaults Upon Senior Securities	66

ITEM 4.	Mine Safety Disclosures	66

ITEM 5.	Other Information	66

ITEM 6.	Exhibits	6867

SIGNATURES		7068

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	(Thousands of Dollars)	As of September 30, 2022		As of December 31, 2021		(Thousands of Dollars)	As of September 30, 2023		As of December 31, 2022

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	45,716	$	66,773	Cash	$	78,813	$	47,597
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)		1,453,785		1,226,069
Cash Equivalents						Cash Equivalents	—		327,006
Receivables, Net (net of allowance for uncollectible accounts of $542,746 and $486,297 as of September 30, 2023 and December 31, 2022, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $542,746 and $486,297 as of September 30, 2023 and December 31, 2022, respectively)	1,430,183		1,517,138
Unbilled Revenues	Unbilled Revenues	181,176		210,879		Unbilled Revenues	171,934		238,968
Fuel, Materials, Supplies and REC Inventory		322,216		267,547
Materials, Supplies, Natural Gas and REC Inventory						Materials, Supplies, Natural Gas and REC Inventory	445,810		374,395
Regulatory Assets	Regulatory Assets	1,143,646		1,129,093		Regulatory Assets	1,507,888		1,335,491

Prepayments and Other Current Assets	Prepayments and Other Current Assets	333,115		369,759		Prepayments and Other Current Assets	374,471		382,603
Total Current Assets	Total Current Assets	3,919,654		3,270,120		Total Current Assets	4,009,099		4,223,198
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	35,029,497		33,377,650		Property, Plant and Equipment, Net	38,518,294		36,112,820
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	4,558,776		4,586,709		Regulatory Assets	4,348,700		4,242,794
Goodwill	Goodwill	4,477,756		4,477,269		Goodwill	4,530,121		4,522,632
Investments in Unconsolidated Affiliates	Investments in Unconsolidated Affiliates	2,053,404		1,436,293		Investments in Unconsolidated Affiliates	2,723,931		2,176,080
Prepaid Pension and PBOP	Prepaid Pension and PBOP	561,012		271,987		Prepaid Pension and PBOP	1,238,512		1,045,524
Marketable Securities	Marketable Securities	377,183		460,347		Marketable Securities	327,381		366,508
Other Long-Term Assets	Other Long-Term Assets	622,143		611,769		Other Long-Term Assets	597,305		541,344
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	12,650,274		11,844,374		Total Deferred Debits and Other Assets	13,765,950		12,894,882
Total Assets	Total Assets	$	51,599,425	$	48,492,144	Total Assets	$	56,293,343	$	53,230,900

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable	Notes Payable	$	401,500	$	1,505,450	Notes Payable	$	1,529,800	$	1,442,200
Long-Term Debt – Current Portion	Long-Term Debt – Current Portion	1,610,468		1,193,097		Long-Term Debt – Current Portion	2,071,862		1,320,129
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	1,459,606		1,672,230		Accounts Payable	1,642,181		2,113,905

Regulatory Liabilities	Regulatory Liabilities	988,714		602,432		Regulatory Liabilities	724,413		890,786
Other Current Liabilities	Other Current Liabilities	983,663		830,620		Other Current Liabilities	1,108,178		989,053
Total Current Liabilities	Total Current Liabilities	5,487,161		5,847,039		Total Current Liabilities	7,119,644		6,799,283
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	4,830,158		4,597,120		Accumulated Deferred Income Taxes	5,238,623		5,067,902
Regulatory Liabilities	Regulatory Liabilities	3,901,106		3,866,251		Regulatory Liabilities	4,021,830		3,930,305
Derivative Liabilities	Derivative Liabilities	164,253		235,387		Derivative Liabilities	85,322		143,929
Asset Retirement Obligations	Asset Retirement Obligations	505,937		500,111		Asset Retirement Obligations	504,671		502,713
Accrued Pension, SERP and PBOP	Accrued Pension, SERP and PBOP	159,217		242,463		Accrued Pension, SERP and PBOP	118,462		135,473
Other Long-Term Liabilities	Other Long-Term Liabilities	874,391		971,080		Other Long-Term Liabilities	908,731		888,081
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	10,435,062		10,412,412		Total Deferred Credits and Other Liabilities	10,877,639		10,668,403
Long-Term Debt	Long-Term Debt	19,831,967		17,023,577		Long-Term Debt	22,087,267		19,723,994
Rate Reduction Bonds	Rate Reduction Bonds	410,492		453,702		Rate Reduction Bonds	367,282		410,492
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	1,799,920		1,789,092		Common Shares	1,799,920		1,799,920
Capital Surplus, Paid In	Capital Surplus, Paid In	8,327,477		8,098,514		Capital Surplus, Paid In	8,443,820		8,401,731
Retained Earnings	Retained Earnings	5,429,076		5,005,391		Retained Earnings	5,666,861		5,527,153
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss	(41,006)		(42,275)		Accumulated Other Comprehensive Loss	(24,022)		(39,421)
Treasury Stock	Treasury Stock	(236,294)		(250,878)		Treasury Stock	(200,638)		(216,225)
Common Shareholders' Equity	Common Shareholders' Equity	15,279,173		14,599,844		Common Shareholders' Equity	15,685,941		15,473,158
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)					Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	51,599,425	$	48,492,144	Total Liabilities and Capitalization	$	56,293,343	$	53,230,900

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)	2022		2021		2022		2021		(Thousands of Dollars, Except Share Information)	2023		2022		2023		2022

Operating Revenues	Operating Revenues	$	3,215,645	$	2,432,794	$	9,259,596	$	7,381,172	Operating Revenues	$	2,791,482	$	3,215,645	$	9,216,467	$	9,259,596

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power, Fuel and Transmission		1,388,041		880,639		3,718,278		2,529,217
Purchased Power, Purchased Natural Gas and Transmission										Purchased Power, Purchased Natural Gas and Transmission	1,168,599		1,388,041		4,232,912		3,718,278
Operations and Maintenance	Operations and Maintenance	454,289		389,065		1,378,897		1,265,754		Operations and Maintenance	500,711		454,289		1,382,563		1,378,897
Depreciation	Depreciation	302,143		276,846		885,711		822,197		Depreciation	329,528		302,143		962,477		885,711
Amortization	Amortization	111,287		45,236		418,644		158,860		Amortization	(143,979)		111,287		(438,460)		418,644
Energy Efficiency Programs	Energy Efficiency Programs	162,545		143,796		498,708		460,814		Energy Efficiency Programs	162,425		162,545		531,199		498,708
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	240,047		213,881		683,441		623,827		Taxes Other Than Income Taxes	243,645		240,047		704,989		683,441
Total Operating Expenses	Total Operating Expenses	2,658,352		1,949,463		7,583,679		5,860,669		Total Operating Expenses	2,260,929		2,658,352		7,375,680		7,583,679
Operating Income	Operating Income	557,293		483,331		1,675,917		1,520,503		Operating Income	530,553		557,293		1,840,787		1,675,917
Interest Expense	Interest Expense	178,174		147,962		491,509		431,162		Interest Expense	222,283		178,174		624,140		491,509
Impairment of Offshore Wind Investment										Impairment of Offshore Wind Investment	—		—		401,000		—
Other Income, Net	Other Income, Net	89,831		43,768		255,253		124,588		Other Income, Net	79,123		89,831		262,980		255,253
Income Before Income Tax Expense	Income Before Income Tax Expense	468,950		379,137		1,439,661		1,213,929		Income Before Income Tax Expense	387,393		468,950		1,078,627		1,439,661
Income Tax Expense	Income Tax Expense	117,661		94,091		349,305		294,461		Income Tax Expense	45,850		117,661		226,743		349,305
Net Income	Net Income	351,289		285,046		1,090,356		919,468		Net Income	341,543		351,289		851,884		1,090,356
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	$	349,409	$	283,166	$	1,084,717	$	913,829	Net Income Attributable to Common Shareholders	$	339,663	$	349,409	$	846,245	$	1,084,717

Basic Earnings Per Common Share	Basic Earnings Per Common Share	$	1.01	$	0.82	$	3.13	$	2.66	Basic Earnings Per Common Share	$	0.97	$	1.01	$	2.42	$	3.13

Diluted Earnings Per Common Share	Diluted Earnings Per Common Share	$	1.00	$	0.82	$	3.13	$	2.65	Diluted Earnings Per Common Share	$	0.97	$	1.00	$	2.42	$	3.13

Weighted Average Common Shares Outstanding:	Weighted Average Common Shares Outstanding:									Weighted Average Common Shares Outstanding:
Basic	Basic	347,297,411		344,023,846		346,115,823		343,848,905		Basic	349,704,155		347,297,411		349,461,219		346,115,823
Diluted	Diluted	347,762,693		344,669,782		346,573,101		344,480,056		Diluted	349,851,969		347,762,693		349,731,320		346,573,101

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Net Income	Net Income	$	351,289	$	285,046	$	1,090,356	$	919,468	Net Income	$	341,543	$	351,289	$	851,884	$	1,090,356
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	5		115		15		967		Qualified Cash Flow Hedging Instruments	5		5		15		15
Changes in Unrealized Losses on Marketable Securities		(667)		(106)		(1,990)		(569)
Changes in Unrealized (Losses)/Gains on Marketable Securities										Changes in Unrealized (Losses)/Gains on Marketable Securities	—		(667)		1,254		(1,990)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	2,520		2,468		3,244		4,148		Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	8,076		2,520		14,130		3,244
Other Comprehensive Income, Net of Tax	Other Comprehensive Income, Net of Tax	1,858		2,477		1,269		4,546		Other Comprehensive Income, Net of Tax	8,081		1,858		15,399		1,269
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	$	351,267	$	285,643	$	1,085,986	$	918,375	Comprehensive Income Attributable to Common Shareholders	$	347,744	$	351,267	$	861,644	$	1,085,986

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, 2022														For the Nine Months Ended September 30, 2023
		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, 2022		344,403,196	$	1,789,092	$	8,098,514	$	5,005,391	$	(42,275)	$	(250,878)	$	14,599,844
Balance as of January 1, 2023															Balance as of January 1, 2023	348,443,855	$	1,799,920	$	8,401,731	$	5,527,153	$	(39,421)	$	(216,225)	$	15,473,158
Net Income	Net Income						445,326						445,326		Net Income						493,039						493,039
Dividends on Common Shares - $0.6375 Per Share							(219,768)						(219,768)
Dividends on Common Shares - $0.675 Per Share															Dividends on Common Shares - $0.675 Per Share						(235,354)						(235,354)
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				(16,538)								(16,538)		Long-Term Incentive Plan Activity				(13,141)								(13,141)
Issuance of Treasury Shares	Issuance of Treasury Shares	447,076			20,642						8,360		29,002		Issuance of Treasury Shares	364,227			23,495						6,824		30,319

Other Comprehensive Income	Other Comprehensive Income								704				704		Other Comprehensive Income								3,230				3,230
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
Balance as of March 31, 2023															Balance as of March 31, 2023	348,808,082	1,799,920		8,412,085		5,782,958		(36,191)		(209,401)		15,749,371
Net Income	Net Income						293,742						293,742		Net Income						17,302						17,302
Dividends on Common Shares - $0.6375 Per Share							(219,877)						(219,877)
Dividends on Common Shares - $0.675 Per Share															Dividends on Common Shares - $0.675 Per Share						(235,491)						(235,491)
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		1,392,804	6,964		121,142								128,106

Long-Term Incentive Plan Activity	Long-Term Incentive Plan Activity				9,070								9,070		Long-Term Incentive Plan Activity				5,155								5,155
Issuance of Treasury Shares	Issuance of Treasury Shares	167,953			11,340						3,141		14,481		Issuance of Treasury Shares	213,854			11,546						4,007		15,553
Capital Stock Expense					(1,824)								(1,824)
Other Comprehensive Loss									(1,293)				(1,293)
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

Other Comprehensive Income															Other Comprehensive Income								4,088				4,088
Balance as of June 30, 2023															Balance as of June 30, 2023	349,021,936	1,799,920		8,428,786		5,562,889		(32,103)		(205,394)		15,554,098
Net Income	Net Income						351,289						351,289		Net Income						341,543						341,543
Dividends on Common Shares - $0.6375 Per Share							(221,387)						(221,387)
Dividends on Common Shares - $0.675 Per Share															Dividends on Common Shares - $0.675 Per Share						(235,691)						(235,691)
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		772,867	3,864		67,935								71,799

Long-Term Incentive Plan Activity	Long-Term Incentive Plan Activity				7,407								7,407		Long-Term Incentive Plan Activity				3,075								3,075
Issuance of Treasury Shares	Issuance of Treasury Shares	164,853			10,762						3,083		13,845		Issuance of Treasury Shares	253,839			11,959						4,756		16,715
Capital Stock Expense					(973)								(973)

Other Comprehensive Income	Other Comprehensive Income								1,858				1,858		Other Comprehensive Income								8,081				8,081
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
Balance as of September 30, 2023															Balance as of September 30, 2023	349,275,775	$	1,799,920	$	8,443,820	$	5,666,861	$	(24,022)	$	(200,638)	$	15,685,941

The accompanying notes are an integral part of these unaudited condensed consolidated financial ~~statements.~~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)
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)
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				6,478								6,478		Long-Term Incentive Plan Activity				9,070								9,070
Issuance of Treasury Shares	Issuance of Treasury Shares	173,221			11,435						3,239		14,674		Issuance of Treasury Shares	167,953			11,340						3,141		14,481
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						351,289						351,289
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)
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				7,407								7,407
Issuance of Treasury Shares															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 CASH FLOWS

(Unaudited)


		For the Nine Months Ended September 30,					For the Nine Months Ended September 30,
(Thousands of Dollars)	(Thousands of Dollars)	2022		2021		(Thousands of Dollars)	2023		2022

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	1,090,356	$	919,468	Net Income	$	851,884	$	1,090,356
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	885,711		822,197		Depreciation	962,477		885,711
Deferred Income Taxes	Deferred Income Taxes	170,752		191,346		Deferred Income Taxes	78,276		170,752
Uncollectible Expense	Uncollectible Expense	40,753		39,690		Uncollectible Expense	40,945		40,753
Pension, SERP and PBOP Income, Net	Pension, SERP and PBOP Income, Net	(120,416)		(10,882)		Pension, SERP and PBOP Income, Net	(64,311)		(120,416)
Pension and PBOP Contributions		(80,000)		(140,000)
Regulatory (Under)/Over Recoveries, Net		(32,193)		87,455
(Customer Credits)/Reserve at CL&P related to PURA Settlement Agreement and Storm Performance Penalty		(72,041)		103,583
Pension Contributions						Pension Contributions	(5,000)		(80,000)
Regulatory Under Recoveries, Net						Regulatory Under Recoveries, Net	(4,148)		(32,193)
Amortization	Amortization	418,644		158,860		Amortization	(438,460)		418,644

Cost of Removal Expenditures	Cost of Removal Expenditures	(284,706)		(138,730)		Cost of Removal Expenditures	(237,368)		(284,706)
Customer Credits Distributed in 2022 at CL&P related to PURA Settlement Agreement and Storm Performance Penalty						Customer Credits Distributed in 2022 at CL&P related to PURA Settlement Agreement and Storm Performance Penalty	—		(72,041)
Payment in 2022 of Withheld Property Taxes						Payment in 2022 of Withheld Property Taxes	—		(78,446)
Impairment of Offshore Wind Investment						Impairment of Offshore Wind Investment	401,000		—
Other	Other	(113,148)		(91,148)		Other	(114,111)		(34,702)
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	(294,383)		(158,205)		Receivables and Unbilled Revenues, Net	6,738		(294,383)

Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	160,260		44,003		Taxes Receivable/Accrued, Net	177,618		160,260
Accounts Payable	Accounts Payable	11,821		(258,509)		Accounts Payable	(385,741)		11,821
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(92,506)		(48,855)		Other Current Assets and Liabilities, Net	(100,646)		(92,506)
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	1,688,904		1,520,273		Net Cash Flows Provided by Operating Activities	1,169,153		1,688,904

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(2,352,743)		(2,211,136)		Investments in Property, Plant and Equipment	(3,125,617)		(2,352,743)
Proceeds from Sales of Marketable Securities	Proceeds from Sales of Marketable Securities	340,660		334,619		Proceeds from Sales of Marketable Securities	341,871		340,660
Purchases of Marketable Securities	Purchases of Marketable Securities	(313,714)		(313,961)		Purchases of Marketable Securities	(287,814)		(313,714)
Investments in Unconsolidated Affiliates	Investments in Unconsolidated Affiliates	(617,588)		(245,245)		Investments in Unconsolidated Affiliates	(887,365)		(617,588)
Other Investing Activities	Other Investing Activities	15,245		17,436		Other Investing Activities	(57)		15,245
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(2,928,140)		(2,418,287)		Net Cash Flows Used in Investing Activities	(3,958,982)		(2,928,140)

Financing Activities:	Financing Activities:					Financing Activities:
Issuance of Common Shares, Net of Issuance Costs	Issuance of Common Shares, Net of Issuance Costs	197,108		—		Issuance of Common Shares, Net of Issuance Costs	—		197,108
Cash Dividends on Common Shares	Cash Dividends on Common Shares	(643,634)		(603,611)		Cash Dividends on Common Shares	(688,878)		(643,634)
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		(1,103,950)		(458,325)
Increase/(Decrease) in Notes Payable						Increase/(Decrease) in Notes Payable	87,600		(1,103,950)
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	4,045,000		3,150,000		Issuance of Long-Term Debt	4,340,300		4,045,000
Retirement of Long-Term Debt	Retirement of Long-Term Debt	(775,000)		(1,142,500)		Retirement of Long-Term Debt	(1,203,000)		(775,000)
Other Financing Activities	Other Financing Activities	(50,191)		(45,522)		Other Financing Activities	(38,189)		(50,191)
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	1,620,484		851,193		Net Cash Flows Provided by Financing Activities	2,448,984		1,620,484
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash		381,248		(46,821)
Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash						Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash	(340,845)		381,248
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 - Beginning of Period	521,752		221,008
Cash, Cash Equivalents and Restricted Cash - End of Period		$	602,256	$	218,129
Cash and Restricted Cash - End of Period						Cash and Restricted Cash - End of Period	$	180,907	$	602,256

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, 2022		As of December 31, 2021		(Thousands of Dollars)	As of September 30, 2023		As of December 31, 2022

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	14,289	$	55,804	Cash	$	9,798	$	11,312
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
Receivables, Net (net of allowance for uncollectible accounts of $276,337 and $225,320 as of September 30, 2023 and December 31, 2022, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $276,337 and $225,320 as of September 30, 2023 and December 31, 2022, respectively)	629,064		612,052
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	76,512		43,944		Accounts Receivable from Affiliated Companies	54,765		46,439
Unbilled Revenues	Unbilled Revenues	49,511		56,787		Unbilled Revenues	51,527		59,363
Materials and Supplies		81,631		60,264
Materials, Supplies and REC Inventory						Materials, Supplies and REC Inventory	145,774		88,157
Taxes Receivable						Taxes Receivable	26		65,785
Regulatory Assets	Regulatory Assets	305,556		371,609		Regulatory Assets	383,672		314,089
Prepaid Property Taxes	Prepaid Property Taxes	79,067		24,261		Prepaid Property Taxes	79,848		25,281
Prepayments and Other Current Assets	Prepayments and Other Current Assets	37,667		95,996		Prepayments and Other Current Assets	36,216		37,243
Total Current Assets	Total Current Assets	1,289,722		1,156,439		Total Current Assets	1,390,690		1,259,721
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	11,226,672		10,803,543		Property, Plant and Equipment, Net	12,035,967		11,467,024
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	1,632,875		1,713,161		Regulatory Assets	1,598,934		1,593,693
Prepaid Pension						Prepaid Pension	180,485		147,914
Other Long-Term Assets	Other Long-Term Assets	310,267		276,513		Other Long-Term Assets	303,561		290,444
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	1,943,142		1,989,674		Total Deferred Debits and Other Assets	2,082,980		2,032,051
Total Assets	Total Assets	$	14,459,536	$	13,949,656	Total Assets	$	15,509,637	$	14,758,796

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	$	—	Notes Payable to Eversource Parent	$	213,400	$	—
Long-Term Debt – Current Portion		400,000		—

Accounts Payable	Accounts Payable	439,249		533,454		Accounts Payable	555,676		710,500
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	95,708		132,578		Accounts Payable to Affiliated Companies	119,235		136,277
Obligations to Third Party Suppliers						Obligations to Third Party Suppliers	79,211		40,704
Regulatory Liabilities						Regulatory Liabilities	155,901		336,048

Regulatory Liabilities		434,465		266,489

Derivative Liabilities	Derivative Liabilities	78,564		73,528		Derivative Liabilities	84,179		81,588
Other Current Liabilities	Other Current Liabilities	209,253		141,955		Other Current Liabilities	182,278		123,171
Total Current Liabilities	Total Current Liabilities	1,683,239		1,148,004		Total Current Liabilities	1,389,880		1,428,288
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	1,562,256		1,562,102		Accumulated Deferred Income Taxes	1,778,431		1,640,034
Regulatory Liabilities	Regulatory Liabilities	1,243,581		1,193,259		Regulatory Liabilities	1,308,284		1,263,396
Derivative Liabilities	Derivative Liabilities	164,253		235,387		Derivative Liabilities	85,322		143,929

Other Long-Term Liabilities	Other Long-Term Liabilities	175,733		179,824		Other Long-Term Liabilities	167,651		166,081
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	3,145,823		3,170,572		Total Deferred Credits and Other Liabilities	3,339,688		3,213,440
Long-Term Debt	Long-Term Debt	3,816,229		4,215,379		Long-Term Debt	4,606,833		4,216,488
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	3,210,765		3,010,765		Capital Surplus, Paid In	3,384,265		3,260,765
Retained Earnings	Retained Earnings	2,426,765		2,228,133		Retained Earnings	2,612,228		2,463,094
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income	163		251		Accumulated Other Comprehensive Income	191		169
Common Stockholder's Equity	Common Stockholder's Equity	5,698,045		5,299,501		Common Stockholder's Equity	6,057,036		5,784,380
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)					Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	14,459,536	$	13,949,656	Total Liabilities and Capitalization	$	15,509,637	$	14,758,796

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Operating Revenues	Operating Revenues	$	1,369,101	$	919,643	$	3,690,614	$	2,736,513	Operating Revenues	$	1,190,096	$	1,369,101	$	3,563,150	$	3,690,614

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	641,052		392,301		1,585,515		1,073,712		Purchased Power and Transmission	659,971		641,052		2,136,947		1,585,515
Operations and Maintenance	Operations and Maintenance	189,864		137,816		515,928		465,630		Operations and Maintenance	198,773		189,864		525,655		515,928
Depreciation	Depreciation	89,468		85,304		264,966		253,132		Depreciation	95,218		89,468		281,107		264,966
Amortization of Regulatory Assets, Net		105,825		28,921		318,347		76,637
Amortization of Regulatory (Liabilities)/Assets, Net										Amortization of Regulatory (Liabilities)/Assets, Net	(113,165)		105,825		(425,402)		318,347
Energy Efficiency Programs	Energy Efficiency Programs	37,934		35,714		103,111		100,810		Energy Efficiency Programs	39,903		37,934		100,687		103,111
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	104,298		99,901		290,449		275,178		Taxes Other Than Income Taxes	107,037		104,298		303,222		290,449
Total Operating Expenses	Total Operating Expenses	1,168,441		779,957		3,078,316		2,245,099		Total Operating Expenses	987,737		1,168,441		2,922,216		3,078,316
Operating Income	Operating Income	200,660		139,686		612,298		491,414		Operating Income	202,359		200,660		640,934		612,298
Interest Expense	Interest Expense	42,391		42,778		125,152		124,371		Interest Expense	52,439		42,391		145,410		125,152
Other Income, Net	Other Income, Net	21,927		6,903		61,290		21,690		Other Income, Net	18,311		21,927		46,610		61,290
Income Before Income Tax Expense	Income Before Income Tax Expense	180,196		103,811		548,436		388,733		Income Before Income Tax Expense	168,231		180,196		542,134		548,436
Income Tax Expense	Income Tax Expense	36,909		33,658		126,334		104,626		Income Tax Expense	48,843		36,909		141,030		126,334
Net Income	Net Income	$	143,287	$	70,153	$	422,102	$	284,107	Net Income	$	119,388	$	143,287	$	401,104	$	422,102

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Net Income	Net Income	$	143,287	$	70,153	$	422,102	$	284,107	Net Income	$	119,388	$	143,287	$	401,104	$	422,102
Other Comprehensive Loss, 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	(7)		(7)		(20)		(20)		Qualified Cash Flow Hedging Instruments	(7)		(7)		(21)		(20)
Changes in Unrealized Losses on Marketable Securities		(23)		(2)		(68)		(18)
Other Comprehensive Loss, Net of Tax		(30)		(9)		(88)		(38)
Changes in Unrealized (Losses)/Gains on Marketable Securities										Changes in Unrealized (Losses)/Gains on Marketable Securities	—		(23)		43		(68)
Other Comprehensive (Loss)/Income, Net of Tax										Other Comprehensive (Loss)/Income, Net of Tax	(7)		(30)		22		(88)
Comprehensive Income	Comprehensive Income	$	143,257	$	70,144	$	422,014	$	284,069	Comprehensive Income	$	119,381	$	143,257	$	401,126	$	422,014

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, 2022																			For the Nine Months Ended September 30, 2023
		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, 2022		6,035,205	$	60,352			$	3,010,765							$	2,228,133			$	251		$	5,299,501
Balance as of January 1, 2023																				Balance as of January 1, 2023	6,035,205			$	60,352		$	3,260,765		$	2,463,094		$	169		$	5,784,380
Net Income	Net Income								152,977								152,977			Net Income									148,416						148,416
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								(73,100)								(73,100)			Dividends on Common Stock									(82,600)						(82,600)
Capital Contributions from Eversource Parent					100,000												100,000

Other Comprehensive Income																				Other Comprehensive Income												36			36
Balance as of March 31, 2023																				Balance as of March 31, 2023	6,035,205			60,352		3,260,765			2,527,520			205			5,848,842
Net Income																				Net Income									133,300						133,300
Dividends on Preferred Stock																				Dividends on Preferred Stock									(1,390)						(1,390)
Dividends on Common Stock																				Dividends on Common Stock									(82,600)						(82,600)

Other Comprehensive Loss	Other Comprehensive Loss												(35)				(35)			Other Comprehensive Loss												(7)			(7)
Balance as of March 31, 2022		6,035,205	60,352		3,110,765				2,306,620				216				5,477,953
Balance as of June 30, 2023																				Balance as of June 30, 2023	6,035,205			60,352		3,260,765			2,576,830			198			5,898,145
Net Income	Net Income								125,838								125,838			Net Income									119,388						119,388
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								(73,100)								(73,100)			Dividends on Common Stock									(82,600)						(82,600)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent				100,000												100,000			Capital Contributions from Eversource Parent						123,500									123,500
Other Comprehensive Loss	Other Comprehensive Loss												(23)				(23)			Other Comprehensive Loss												(7)			(7)
Balance as of June 30, 2022		6,035,205	60,352		3,210,765				2,357,968				193				5,629,278
Net Income									143,287								143,287
Dividends on Preferred Stock									(1,390)								(1,390)
Dividends on Common Stock									(73,100)								(73,100)
Other Comprehensive Loss													(30)				(30)
Balance as of September 30, 2022		6,035,205	$	60,352	$	3,210,765			$	2,426,765			$	163			$	5,698,045
Balance as of September 30, 2023																				Balance as of September 30, 2023	6,035,205			$	60,352	$	3,384,265		$	2,612,228		$	191		$	6,057,036


		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

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)	2022		2021		(Thousands of Dollars)	2023		2022

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	422,102	$	284,107	Net Income	$	401,104	$	422,102
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	264,966		253,132		Depreciation	281,107		264,966
Deferred Income Taxes	Deferred Income Taxes	(18,780)		77,147		Deferred Income Taxes	115,450		(18,780)
Uncollectible Expense	Uncollectible Expense	10,816		10,183		Uncollectible Expense	7,106		10,816
Pension, SERP, and PBOP (Income)/Expense, Net		(21,751)		4,478
Pension Contributions		—		(78,913)
Regulatory Under Recoveries, Net		(47,620)		(19,404)
(Customer Credits)/Reserve related to PURA Settlement Agreement and Storm Performance Penalty		(72,041)		103,583
Amortization of Regulatory Assets, Net		318,347		76,637
Pension, SERP, and PBOP Income, Net						Pension, SERP, and PBOP Income, Net	(13,699)		(21,751)

Regulatory Over/(Under) Recoveries, Net						Regulatory Over/(Under) Recoveries, Net	198,519		(47,620)
Customer Credits Distributed in 2022 related to PURA Settlement Agreement and Storm Performance Penalty						Customer Credits Distributed in 2022 related to PURA Settlement Agreement and Storm Performance Penalty	—		(72,041)
Amortization of Regulatory (Liabilities)/Assets, Net						Amortization of Regulatory (Liabilities)/Assets, Net	(425,402)		318,347
Cost of Removal Expenditures	Cost of Removal Expenditures	(54,145)		(54,264)		Cost of Removal Expenditures	(56,168)		(54,145)
Other	Other	(19,310)		(19,915)		Other	(21,415)		(19,310)
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	(271,658)		(165,423)		Receivables and Unbilled Revenues, Net	(113,592)		(271,658)
Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	106,737		45,762		Taxes Receivable/Accrued, Net	107,774		106,737
Accounts Payable	Accounts Payable	273		(54,226)		Accounts Payable	(112,946)		273
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(63,682)		(12,315)		Other Current Assets and Liabilities, Net	(47,800)		(63,682)
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	554,254		450,569		Net Cash Flows Provided by Operating Activities	320,038		554,254

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(608,966)		(563,234)		Investments in Property, Plant and Equipment	(797,282)		(608,966)
Other Investing Activities	Other Investing Activities	513		251		Other Investing Activities	173		513
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(608,453)		(562,983)		Net Cash Flows Used in Investing Activities	(797,109)		(608,453)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(219,300)		(210,300)		Cash Dividends on Common Stock	(247,800)		(219,300)
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	200,000		—		Capital Contributions from Eversource Parent	123,500		200,000
Issuance of Long-Term Debt	Issuance of Long-Term Debt	—		425,000		Issuance of Long-Term Debt	800,000		—
Retirement of Long-Term Debt						Retirement of Long-Term Debt	(400,000)		—

Retirement of Long-Term Debt		—		(120,500)
Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	26,000		—		Increase in Notes Payable to Eversource Parent	213,400		26,000
Other Financing Activities	Other Financing Activities	—		(5,664)		Other Financing Activities	(9,244)		—
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	2,531		84,367		Net Cash Flows Provided by Financing Activities	475,687		2,531
Net Decrease in Cash and Restricted Cash	Net Decrease in Cash and Restricted Cash	(51,668)		(28,047)		Net Decrease in Cash and Restricted Cash	(1,384)		(51,668)
Cash and Restricted Cash - Beginning of Period	Cash and Restricted Cash - Beginning of Period	74,788		99,809		Cash and Restricted Cash - Beginning of Period	20,327		74,788
Cash and Restricted Cash - End of Period	Cash and Restricted Cash - End of Period	$	23,120	$	71,762	Cash and Restricted Cash - End of Period	$	18,943	$	23,120

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, 2022		As of December 31, 2021		(Thousands of Dollars)	As of September 30, 2023		As of December 31, 2022

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	13,581	$	745	Cash	$	5,991	$	738
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)		477,700		405,674
Cash Equivalents						Cash Equivalents	—		327,006
Receivables, Net (net of allowance for uncollectible accounts of $100,826 and $94,958 as of September 30, 2023 and December 31, 2022, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $100,826 and $94,958 as of September 30, 2023 and December 31, 2022, respectively)	523,997		453,371
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	51,600		67,420		Accounts Receivable from Affiliated Companies	48,986		35,196
Unbilled Revenues	Unbilled Revenues	46,312		37,497		Unbilled Revenues	46,878		39,680
Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	90,456		116,712		Materials, Supplies and REC Inventory	140,470		138,352
Taxes Receivable		—		80,617

Regulatory Assets	Regulatory Assets	387,333		443,956		Regulatory Assets	638,464		492,759
Prepayments and Other Current Assets	Prepayments and Other Current Assets	25,898		22,397		Prepayments and Other Current Assets	73,571		71,276
Total Current Assets	Total Current Assets	1,532,880		1,175,018		Total Current Assets	1,478,357		1,558,378
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	11,365,172		10,876,614		Property, Plant and Equipment, Net	12,409,156		11,626,968
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	1,257,884		1,135,231		Regulatory Assets	1,190,138		1,221,619
Prepaid Pension and PBOP	Prepaid Pension and PBOP	519,059		441,426		Prepaid Pension and PBOP	646,640		576,809
Other Long-Term Assets	Other Long-Term Assets	186,936		171,657		Other Long-Term Assets	119,884		111,846
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	1,963,879		1,748,314		Total Deferred Debits and Other Assets	1,956,662		1,910,274
Total Assets	Total Assets	$	14,861,931	$	13,799,946	Total Assets	$	15,844,175	$	15,095,620

LIABILITIES AND CAPITALIZATION	LIABILITIES AND CAPITALIZATION					LIABILITIES AND CAPITALIZATION
Current Liabilities:	Current Liabilities:					Current Liabilities:
Notes Payable	Notes Payable	$	—	$	162,500	Notes Payable	$	209,500	$	—
Notes Payable to Eversource Parent		2,800		—

Long-Term Debt – Current Portion	Long-Term Debt – Current Portion	400,000		400,000		Long-Term Debt – Current Portion	80,000		80,000
Accounts Payable	Accounts Payable	399,669		490,915		Accounts Payable	497,660		559,676
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	97,940		129,575		Accounts Payable to Affiliated Companies	113,723		108,907
Obligations to Third Party Suppliers	Obligations to Third Party Suppliers	168,845		116,273		Obligations to Third Party Suppliers	166,995		142,628
Renewable Portfolio Standards Compliance Obligations	Renewable Portfolio Standards Compliance Obligations	83,616		100,200		Renewable Portfolio Standards Compliance Obligations	88,938		120,239
Regulatory Liabilities	Regulatory Liabilities	368,044		228,248		Regulatory Liabilities	416,046		373,221
Other Current Liabilities	Other Current Liabilities	132,919		84,303		Other Current Liabilities	98,907		83,925
Total Current Liabilities	Total Current Liabilities	1,653,833		1,712,014		Total Current Liabilities	1,671,769		1,468,596
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	1,647,513		1,579,508		Accumulated Deferred Income Taxes	1,812,533		1,700,875
Regulatory Liabilities	Regulatory Liabilities	1,595,754		1,559,072		Regulatory Liabilities	1,587,567		1,548,081

Other Long-Term Liabilities	Other Long-Term Liabilities	291,093		347,934		Other Long-Term Liabilities	304,228		289,313
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	3,534,360		3,486,514		Total Deferred Credits and Other Liabilities	3,704,328		3,538,269
Long-Term Debt	Long-Term Debt	4,424,765		3,585,399		Long-Term Debt	4,496,484		4,345,085
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	2,303,942		2,253,942		Capital Surplus, Paid In	2,902,542		2,778,942
Retained Earnings	Retained Earnings	2,901,666		2,718,576		Retained Earnings	3,025,841		2,921,444
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income	365		501		Accumulated Other Comprehensive Income	211		284
Common Stockholder's Equity	Common Stockholder's Equity	5,205,973		4,973,019		Common Stockholder's Equity	5,928,594		5,700,670
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)					Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	14,861,931	$	13,799,946	Total Liabilities and Capitalization	$	15,844,175	$	15,095,620

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Operating Revenues	Operating Revenues	$	1,105,452	$	918,698	$	2,752,278	$	2,343,116	Operating Revenues	$	953,531	$	1,105,452	$	2,728,782	$	2,752,278

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	421,217		294,052		971,754		711,667		Purchased Power and Transmission	308,999		421,217		936,484		971,754
Operations and Maintenance	Operations and Maintenance	161,770		142,074		475,727		421,649		Operations and Maintenance	174,091		161,770		487,026		475,727
Depreciation	Depreciation	91,194		84,820		269,928		251,530		Depreciation	94,103		91,194		277,396		269,928
Amortization of Regulatory Assets, Net		15,940		8,073		65,307		23,963
Amortization of Regulatory (Liabilities)/Assets, Net										Amortization of Regulatory (Liabilities)/Assets, Net	(6,462)		15,940		14,923		65,307
Energy Efficiency Programs	Energy Efficiency Programs	105,708		86,699		255,230		226,071		Energy Efficiency Programs	95,351		105,708		252,255		255,230
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	65,085		54,723		185,748		163,501		Taxes Other Than Income Taxes	68,449		65,085		188,191		185,748
Total Operating Expenses	Total Operating Expenses	860,914		670,441		2,223,694		1,798,381		Total Operating Expenses	734,531		860,914		2,156,275		2,223,694
Operating Income	Operating Income	244,538		248,257		528,584		544,735		Operating Income	219,000		244,538		572,507		528,584
Interest Expense	Interest Expense	41,829		37,329		119,035		106,829		Interest Expense	48,178		41,829		139,804		119,035
Other Income, Net	Other Income, Net	37,895		20,215		101,385		58,941		Other Income, Net	39,908		37,895		120,690		101,385
Income Before Income Tax Expense	Income Before Income Tax Expense	240,604		231,143		510,934		496,847		Income Before Income Tax Expense	210,730		240,604		553,393		510,934
Income Tax Expense	Income Tax Expense	52,520		53,692		110,674		114,560		Income Tax Expense	46,019		52,520		120,126		110,674
Net Income	Net Income	$	188,084	$	177,451	$	400,260	$	382,287	Net Income	$	164,711	$	188,084	$	433,267	$	400,260

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Net Income	Net Income	$	188,084	$	177,451	$	400,260	$	382,287	Net Income	$	164,711	$	188,084	$	433,267	$	400,260
Other Comprehensive (Loss)/Income, Net of Tax:
Other Comprehensive Loss, Net of Tax:										Other Comprehensive Loss, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	Changes in Funded Status of SERP Benefit Plan	(61)		(40)		(132)		(122)		Changes in Funded Status of SERP Benefit Plan	(35)		(61)		(100)		(132)
Qualified Cash Flow Hedging Instruments	Qualified Cash Flow Hedging Instruments	5		5		15		293		Qualified Cash Flow Hedging Instruments	5		5		15		15
Changes in Unrealized Losses on Marketable Securities		(6)		(1)		(19)		(5)
Other Comprehensive (Loss)/Income, Net of Tax		(62)		(36)		(136)		166
Changes in Unrealized (Losses)/Gains on Marketable Securities										Changes in Unrealized (Losses)/Gains on Marketable Securities	—		(6)		12		(19)
Other Comprehensive Loss, Net of Tax										Other Comprehensive Loss, Net of Tax	(30)		(62)		(73)		(136)
Comprehensive Income	Comprehensive Income	$	188,022	$	177,415	$	400,124	$	382,453	Comprehensive Income	$	164,681	$	188,022	$	433,194	$	400,124

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, 2022																			For the Nine Months Ended September 30, 2023
		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, 2022		200	$	—			$	2,253,942							$	2,718,576			$	501		$	4,973,019
Net Income									92,739								92,739
Dividends on Preferred Stock									(490)								(490)
Dividends on Common Stock									(71,900)								(71,900)

Other Comprehensive Loss													(47)				(47)
Balance as of March 31, 2022		200	—		2,253,942				2,738,925				454				4,993,321
Balance as of January 1, 2023																				Balance as of January 1, 2023	200			$	—		$	2,778,942		$	2,921,444		$	284		$	5,700,670
Net Income	Net Income								119,437								119,437			Net Income									133,813						133,813
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)			Dividends on Common Stock									(327,400)						(327,400)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent				50,000												50,000			Capital Contributions from Eversource Parent						31,300									31,300
Other Comprehensive Loss	Other Comprehensive Loss												(27)				(27)			Other Comprehensive Loss												(16)			(16)
Balance as of June 30, 2022		200	—		2,303,942				2,785,972				427				5,090,341
Balance as of March 31, 2023																				Balance as of March 31, 2023	200			—		2,810,242			2,727,367			268			5,537,877
Net Income	Net Income								188,084								188,084			Net Income									134,743						134,743
Dividends on Preferred Stock	Dividends on Preferred Stock								(490)								(490)			Dividends on Preferred Stock									(490)						(490)
Dividends on Common Stock									(71,900)								(71,900)

Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						81,000									81,000
Other Comprehensive Loss	Other Comprehensive Loss												(62)				(62)			Other Comprehensive Loss												(27)			(27)
Balance as of September 30, 2022		200	$	—	$	2,303,942			$	2,901,666			$	365			$	5,205,973
Balance as of June 30, 2023																				Balance as of June 30, 2023	200			—		2,891,242			2,861,620			241			5,753,103
Net Income																				Net Income									164,711						164,711
Dividends on Preferred Stock																				Dividends on Preferred Stock									(490)						(490)

Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						11,300									11,300
Other Comprehensive Loss																				Other Comprehensive Loss												(30)			(30)
Balance as of September 30, 2023																				Balance as of September 30, 2023	200			$	—	$	2,902,542		$	3,025,841		$	211		$	5,928,594


		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

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)	2022		2021		(Thousands of Dollars)	2023		2022

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	400,260	$	382,287	Net Income	$	433,267	$	400,260
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	269,928		251,530		Depreciation	277,396		269,928
Deferred Income Taxes	Deferred Income Taxes	34,025		12,905		Deferred Income Taxes	72,220		34,025
Uncollectible Expense	Uncollectible Expense	12,159		12,477		Uncollectible Expense	12,988		12,159
Pension, SERP and PBOP Income, Net	Pension, SERP and PBOP Income, Net	(41,790)		(19,627)		Pension, SERP and PBOP Income, Net	(31,007)		(41,790)
Pension Contributions	Pension Contributions	(15,000)		(10,000)		Pension Contributions	—		(15,000)
Regulatory (Under)/Over Recoveries, Net		(36,203)		86,111
Regulatory Under Recoveries, Net						Regulatory Under Recoveries, Net	(103,903)		(36,203)
Amortization of Regulatory Assets, Net	Amortization of Regulatory Assets, Net	65,307		23,963		Amortization of Regulatory Assets, Net	14,923		65,307
Cost of Removal Expenditures	Cost of Removal Expenditures	(33,467)		(36,521)		Cost of Removal Expenditures	(49,379)		(33,467)
Payment of Withheld Property Taxes		(76,084)		—
Payment in 2022 of Withheld Property Taxes						Payment in 2022 of Withheld Property Taxes	—		(76,084)
Other	Other	(8,961)		(34,484)		Other	(11,174)		(8,961)
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	(67,950)		(110,336)		Receivables and Unbilled Revenues, Net	(76,989)		(67,950)

Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	122,467		109,561		Taxes Receivable/Accrued, Net	61,773		122,467
Accounts Payable	Accounts Payable	(55,676)		(85,431)		Accounts Payable	(60,363)		(55,676)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	65,609		34,905		Other Current Assets and Liabilities, Net	(10,752)		65,609
Net Cash Flows Provided by Operating Activities	Net Cash Flows Provided by Operating Activities	634,624		617,340		Net Cash Flows Provided by Operating Activities	529,000		634,624

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(691,940)		(675,245)		Investments in Property, Plant and Equipment	(1,012,357)		(691,940)
Other Investing Activities	Other Investing Activities	143		70		Other Investing Activities	48		143
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(691,797)		(675,175)		Net Cash Flows Used in Investing Activities	(1,012,309)		(691,797)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(215,700)		(283,200)		Cash Dividends on Common Stock	(327,400)		(215,700)
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	850,000		600,000		Issuance of Long-Term Debt	150,000		850,000
Retirement of Long-Term Debt		—		(250,000)

Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent	50,000		60,000		Capital Contributions from Eversource Parent	123,600		50,000
Increase in Notes Payable to Eversource Parent	Increase in Notes Payable to Eversource Parent	2,800		3,300		Increase in Notes Payable to Eversource Parent	—		2,800
Decrease in Notes Payable		(162,500)		(57,000)
Increase/(Decrease) in Notes Payable						Increase/(Decrease) in Notes Payable	209,500		(162,500)
Other Financing Activities	Other Financing Activities	(13,191)		(10,367)		Other Financing Activities	(1,368)		(13,191)
Net Cash Flows Provided by Financing Activities	Net Cash Flows Provided by Financing Activities	509,939		61,263		Net Cash Flows Provided by Financing Activities	152,862		509,939
Net Increase in Cash, Cash Equivalents and Restricted Cash		452,766		3,428
Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash						Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash	(330,447)		452,766
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 - Beginning of Period	345,293		18,179
Cash, Cash Equivalents and Restricted Cash - End of Period		$	470,945	$	20,838
Cash and Restricted Cash - End of Period						Cash and Restricted Cash - End of Period	$	14,846	$	470,945

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, 2022		As of December 31, 2021		(Thousands of Dollars)	As of September 30, 2023		As of December 31, 2022

ASSETS	ASSETS					ASSETS
Current Assets:	Current Assets:					Current Assets:
Cash	Cash	$	2,171	$	15	Cash	$	33,943	$	136
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
Receivables, Net (net of allowance for uncollectible accounts of $12,408 and $29,236 as of September 30, 2023 and December 31, 2022, respectively)						Receivables, Net (net of allowance for uncollectible accounts of $12,408 and $29,236 as of September 30, 2023 and December 31, 2022, respectively)	159,704		173,337
Accounts Receivable from Affiliated Companies	Accounts Receivable from Affiliated Companies	14,418		17,156		Accounts Receivable from Affiliated Companies	17,139		8,193
Unbilled Revenues	Unbilled Revenues	59,715		53,937		Unbilled Revenues	44,540		72,713

Taxes Receivable						Taxes Receivable	24,280		27,978
Materials, Supplies and REC Inventory	Materials, Supplies and REC Inventory	38,041		25,930		Materials, Supplies and REC Inventory	59,555		34,521
Regulatory Assets	Regulatory Assets	110,111		107,169		Regulatory Assets	177,120		102,240
Special Deposits	Special Deposits	18,721		31,390		Special Deposits	18,185		33,140

Prepayments and Other Current Assets	Prepayments and Other Current Assets	3,789		22,109		Prepayments and Other Current Assets	2,900		13,297
Total Current Assets	Total Current Assets	427,756		381,938		Total Current Assets	537,366		465,555
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	3,917,559		3,656,462		Property, Plant and Equipment, Net	4,433,033		4,060,224
Deferred Debits and Other Assets:	Deferred Debits and Other Assets:					Deferred Debits and Other Assets:
Regulatory Assets	Regulatory Assets	618,720		679,182		Regulatory Assets	739,372		593,974
Prepaid Pension						Prepaid Pension	83,111		66,384
Other Long-Term Assets	Other Long-Term Assets	25,651		23,202		Other Long-Term Assets	11,997		16,517
Total Deferred Debits and Other Assets	Total Deferred Debits and Other Assets	644,371		702,384		Total Deferred Debits and Other Assets	834,480		676,875
Total Assets	Total Assets	$	4,989,686	$	4,740,784	Total Assets	$	5,804,879	$	5,202,654

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	$	139,700	$	110,600	Notes Payable to Eversource Parent	$	100	$	173,300

Long-Term Debt – Current Portion						Long-Term Debt – Current Portion	325,000		29,668
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	162,643		166,452		Accounts Payable	193,802		291,556
Accounts Payable to Affiliated Companies	Accounts Payable to Affiliated Companies	27,032		43,485		Accounts Payable to Affiliated Companies	35,920		36,231
Regulatory Liabilities	Regulatory Liabilities	185,092		120,176		Regulatory Liabilities	114,561		161,963

Other Current Liabilities	Other Current Liabilities	69,801		63,005		Other Current Liabilities	83,046		59,616
Total Current Liabilities	Total Current Liabilities	627,478		546,928		Total Current Liabilities	795,639		795,544
Deferred Credits and Other Liabilities:	Deferred Credits and Other Liabilities:					Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	Accumulated Deferred Income Taxes	534,875		537,978		Accumulated Deferred Income Taxes	668,174		562,802
Regulatory Liabilities	Regulatory Liabilities	381,294		381,366		Regulatory Liabilities	391,013		391,628

Other Long-Term Liabilities	Other Long-Term Liabilities	42,453		64,264		Other Long-Term Liabilities	40,931		37,087
Total Deferred Credits and Other Liabilities	Total Deferred Credits and Other Liabilities	958,622		983,608		Total Deferred Credits and Other Liabilities	1,100,118		991,517
Long-Term Debt	Long-Term Debt	1,164,427		1,163,833		Long-Term Debt	1,431,584		1,134,914
Rate Reduction Bonds	Rate Reduction Bonds	410,492		453,702		Rate Reduction Bonds	367,282		410,492
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	1,268,134		1,088,134		Capital Surplus, Paid In	1,498,134		1,298,134
Retained Earnings	Retained Earnings	560,627		504,556		Retained Earnings	612,122		572,126
Accumulated Other Comprehensive (Loss)/Income		(94)		23
Accumulated Other Comprehensive Loss						Accumulated Other Comprehensive Loss	—		(73)
Common Stockholder's Equity	Common Stockholder's Equity	1,828,667		1,592,713		Common Stockholder's Equity	2,110,256		1,870,187
Commitments and Contingencies (Note 9)	Commitments and Contingencies (Note 9)					Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	Total Liabilities and Capitalization	$	4,989,686	$	4,740,784	Total Liabilities and Capitalization	$	5,804,879	$	5,202,654

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Operating Revenues	Operating Revenues	$	430,642	$	314,893	$	1,077,124	$	887,177	Operating Revenues	$	353,074	$	430,642	$	1,123,300	$	1,077,124

Operating Expenses:	Operating Expenses:									Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	215,360		107,353		452,007		279,475		Purchased Power and Transmission	128,040		215,360		499,553		452,007
Operations and Maintenance	Operations and Maintenance	67,811		57,041		194,114		168,242		Operations and Maintenance	85,230		67,811		217,529		194,114
Depreciation	Depreciation	32,187		30,169		94,997		89,462		Depreciation	35,517		32,187		104,307		94,997
Amortization of Regulatory Assets, Net		7,398		17,922		43,449		62,744
Amortization of Regulatory (Liabilities)/Assets, Net										Amortization of Regulatory (Liabilities)/Assets, Net	(9,963)		7,398		(35,234)		43,449
Energy Efficiency Programs	Energy Efficiency Programs	11,142		10,762		28,678		30,475		Energy Efficiency Programs	11,097		11,142		30,473		28,678
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	25,331		24,038		73,377		69,639		Taxes Other Than Income Taxes	25,748		25,331		73,384		73,377
Total Operating Expenses	Total Operating Expenses	359,229		247,285		886,622		700,037		Total Operating Expenses	275,669		359,229		890,012		886,622
Operating Income	Operating Income	71,413		67,608		190,502		187,140		Operating Income	77,405		71,413		233,288		190,502
Interest Expense	Interest Expense	15,030		14,321		43,432		42,774		Interest Expense	19,252		15,030		55,901		43,432
Other Income, Net	Other Income, Net	8,073		3,171		23,365		11,598		Other Income, Net	7,180		8,073		19,199		23,365
Income Before Income Tax Expense	Income Before Income Tax Expense	64,456		56,458		170,435		155,964		Income Before Income Tax Expense	65,333		64,456		196,586		170,435
Income Tax Expense	Income Tax Expense	13,009		12,315		36,364		32,512		Income Tax Expense	13,995		13,009		44,590		36,364
Net Income	Net Income	$	51,447	$	44,143	$	134,071	$	123,452	Net Income	$	51,338	$	51,447	$	151,996	$	134,071

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)	2022		2021		2022		2021		(Thousands of Dollars)	2023		2022		2023		2022

Net Income	Net Income	$	51,447	$	44,143	$	134,071	$	123,452	Net Income	$	51,338	$	51,447	$	151,996	$	134,071
Other Comprehensive (Loss)/Income, Net of Tax:	Other Comprehensive (Loss)/Income, Net of Tax:									Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments		—		109		—		673
Changes in Unrealized Losses on Marketable Securities		(39)		(6)		(117)		(33)
Changes in Unrealized (Losses)/Gains on Marketable Securities										Changes in Unrealized (Losses)/Gains on Marketable Securities	—		(39)		73		(117)
Other Comprehensive (Loss)/Income, Net of Tax	Other Comprehensive (Loss)/Income, Net of Tax	(39)		103		(117)		640		Other Comprehensive (Loss)/Income, Net of Tax	—		(39)		73		(117)
Comprehensive Income	Comprehensive Income	$	51,408	$	44,246	$	133,954	$	124,092	Comprehensive Income	$	51,338	$	51,408	$	152,069	$	133,954

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, 2022																			For the Nine Months Ended September 30, 2023
		Common Stock			Capital Surplus, Paid In				Retained Earnings				Accumulated Other Comprehensive Income/(Loss)				Total Common Stockholder's Equity				Common Stock					Capital Surplus, Paid In			Retained Earnings			Accumulated Other Comprehensive 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, 2022		301	$	—			$	1,088,134							$	504,556			$	23		$	1,592,713
Balance as of January 1, 2023																				Balance as of January 1, 2023	301			$	—		$	1,298,134		$	572,126		$	(73)		$	1,870,187
Net Income	Net Income								45,586								45,586			Net Income									40,296						40,296
Dividends on Common Stock	Dividends on Common Stock								(26,000)								(26,000)			Dividends on Common Stock									(28,000)						(28,000)

Other Comprehensive Loss													(48)				(48)
Balance as of March 31, 2022		301	—		1,088,134				524,142				(25)				1,612,251
Other Comprehensive Income																				Other Comprehensive Income												73			73
Balance as of March 31, 2023																				Balance as of March 31, 2023	301			—		1,298,134			584,422			—			1,882,556
Net Income	Net Income								37,038								37,038			Net Income									60,362						60,362
Dividends on Common Stock	Dividends on Common Stock								(26,000)								(26,000)			Dividends on Common Stock									(28,000)						(28,000)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent				180,000												180,000			Capital Contributions from Eversource Parent						100,000									100,000
Other Comprehensive Loss													(30)				(30)
Balance as of June 30, 2022		301	—		1,268,134				535,180				(55)				1,803,259

Balance as of June 30, 2023																				Balance as of June 30, 2023	301			—		1,398,134			616,784			—			2,014,918
Net Income	Net Income								51,447								51,447			Net Income									51,338						51,338
Dividends on Common Stock	Dividends on Common Stock								(26,000)								(26,000)			Dividends on Common Stock									(56,000)						(56,000)
Other Comprehensive Loss													(39)				(39)
Balance as of September 30, 2022		301	$	—	$	1,268,134			$	560,627			$	(94)			$	1,828,667
Capital Contributions from Eversource Parent																				Capital Contributions from Eversource Parent						100,000									100,000
Balance as of September 30, 2023																				Balance as of September 30, 2023	301			$	—	$	1,498,134		$	612,122		$	—		$	2,110,256


		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

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)	2022		2021		(Thousands of Dollars)	2023		2022

Operating Activities:	Operating Activities:					Operating Activities:
Net Income	Net Income	$	134,071	$	123,452	Net Income	$	151,996	$	134,071
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Adjustments to Reconcile Net Income to Net Cash Flows (Used In)/Provided by Operating Activities:						Adjustments to Reconcile Net Income to Net Cash Flows (Used In)/Provided by Operating Activities:
Depreciation	Depreciation	94,997		89,462		Depreciation	104,307		94,997
Deferred Income Taxes	Deferred Income Taxes	(12,212)		(13,385)		Deferred Income Taxes	96,711		(12,212)
Uncollectible Expense	Uncollectible Expense	8,060		4,381		Uncollectible Expense	1,534		8,060
Pension, SERP and PBOP Income, Net	Pension, SERP and PBOP Income, Net	(12,269)		(2,664)		Pension, SERP and PBOP Income, Net	(7,841)		(12,269)
Regulatory Over Recoveries, Net		63,423		29,029
Amortization of Regulatory Assets, Net		43,449		62,744
Regulatory (Under)/Over Recoveries, Net						Regulatory (Under)/Over Recoveries, Net	(251,048)		63,423
Amortization of Regulatory (Liabilities)/Assets, Net						Amortization of Regulatory (Liabilities)/Assets, Net	(35,234)		43,449

Cost of Removal Expenditures	Cost of Removal Expenditures	(25,682)		(19,988)		Cost of Removal Expenditures	(29,448)		(25,682)
Other	Other	10,317		(2,750)		Other	11,479		10,317
Changes in Current Assets and Liabilities:	Changes in Current Assets and Liabilities:					Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	Receivables and Unbilled Revenues, Net	(66,751)		(25,607)		Receivables and Unbilled Revenues, Net	4,011		(66,751)

Taxes Receivable/Accrued, Net	Taxes Receivable/Accrued, Net	20,986		22,286		Taxes Receivable/Accrued, Net	27,797		20,986
Accounts Payable	Accounts Payable	(3,969)		(42,654)		Accounts Payable	(70,102)		(3,969)
Other Current Assets and Liabilities, Net	Other Current Assets and Liabilities, Net	(7,681)		12,866		Other Current Assets and Liabilities, Net	(17,092)		(7,681)
Net Cash Flows Provided by Operating Activities		246,739		237,172
Net Cash Flows (Used In)/Provided by Operating Activities						Net Cash Flows (Used In)/Provided by Operating Activities	(12,930)		246,739

Investing Activities:	Investing Activities:					Investing Activities:
Investments in Property, Plant and Equipment	Investments in Property, Plant and Equipment	(346,318)		(217,414)		Investments in Property, Plant and Equipment	(431,937)		(346,318)
Other Investing Activities	Other Investing Activities	879		431		Other Investing Activities	296		879
Net Cash Flows Used in Investing Activities	Net Cash Flows Used in Investing Activities	(345,439)		(216,983)		Net Cash Flows Used in Investing Activities	(431,641)		(345,439)

Financing Activities:	Financing Activities:					Financing Activities:
Cash Dividends on Common Stock	Cash Dividends on Common Stock	(78,000)		(235,600)		Cash Dividends on Common Stock	(112,000)		(78,000)
Capital Contributions from Eversource Parent	Capital Contributions from Eversource Parent	180,000		160,000		Capital Contributions from Eversource Parent	200,000		180,000
Issuance of Long-Term Debt	Issuance of Long-Term Debt	—		350,000		Issuance of Long-Term Debt	600,000		—
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		29,100		20,200
(Decrease)/Increase in Notes Payable to Eversource Parent						(Decrease)/Increase in Notes Payable to Eversource Parent	(173,200)		29,100
Other Financing Activities	Other Financing Activities	(70)		(2,961)		Other Financing Activities	(8,524)		(70)
Net Cash Flows Provided by/(Used in) Financing Activities		87,820		(33,571)
Net Decrease in Cash and Restricted Cash		(10,880)		(13,382)
Net Cash Flows Provided by Financing Activities						Net Cash Flows Provided by Financing Activities	463,066		87,820
Net Increase/(Decrease) in Cash and Restricted Cash						Net Increase/(Decrease) in Cash and Restricted Cash	18,495		(10,880)
Cash and Restricted Cash - Beginning of Period	Cash and Restricted Cash - Beginning of Period	35,126		39,555		Cash and Restricted Cash - Beginning of Period	36,812		35,126
Cash and Restricted Cash - End of Period	Cash and Restricted Cash - End of Period	$	24,246	$	26,173	Cash and Restricted Cash - End of Period	$	55,307	$	24,246

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 EGMA (natural gas utilities), and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 4.4 million electric, natural gas and water customers through twelve 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 ~~2021~~2022 Form 10-K, which was filed with the SEC on February ~~17, 2022.~~15, 2023. 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, ~~2022~~2023 and December 31, ~~2021,~~2022, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, ~~2022~~2023 and ~~2021~~2022, and the cash flows for the nine months ended September 30, ~~2022~~2023 and ~~2021.~~2022. The results of operations and comprehensive income for the three and nine months ended September 30, ~~2022~~2023 and ~~2021~~2022 and the cash flows for the nine months ended September 30, ~~2022~~2023 and ~~2021~~2022 are not necessarily indicative of the results expected for a full year.

CYAPC and YAEC 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.

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

B. Allowance for Uncollectible Accounts

Receivables, Net on the balance sheets primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs, and property rentals. Receivables, Net also includes customer receivables for the purchase of electricity from a competitive third party supplier, the current portion of customer energy efficiency loans, property damage receivables and other miscellaneous receivables. There is no material concentration of receivables.

Receivables are recorded at amortized cost, net of a credit loss provision (or allowance for uncollectible accounts).

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

The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including 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 economic 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 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~~2023 adequately reflected the collection risk and net realizable value for its receivables.

As of both September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was ~~$55.5 million and $55.3~~$50.9 million at Eversource, ~~$19.7 million and $23.9~~$16.0 million at CL&P, and $4.1 million ~~and $9.0 million~~ at NSTAR ~~Electric, respectively.~~ Electric. At our Connecticut and Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. 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 regulatory dockets, policies and practices in the jurisdictions in which we operate, we believe the state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental uncollectible customer receivable 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		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		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 (2)
Three Months Ended 2022
Three Months Ended 2023																						Three Months Ended 2023
Beginning Balance	Beginning Balance	$	242.7	$	215.1	$	457.8	$	152.1	$	40.6	$	192.7	$	45.0	$	55.5	$	100.5	$	27.3	Beginning Balance	$	338.2	$	194.2	$	532.4	$	226.5	$	36.3	$	262.8	$	45.6	$	52.2	$	97.8	$	12.7
Uncollectible Expense	Uncollectible Expense	—		10.7		10.7		—		4.1		4.1		—		3.5		3.5		3.5		Uncollectible Expense	—		16.8		16.8		—		2.4		2.4		—		5.2		5.2		2.0
Uncollectible Costs Deferred (1)	Uncollectible Costs Deferred (1)	15.6		9.4		25.0		11.3		2.0		13.3		2.8		4.0		6.8		0.1		Uncollectible Costs Deferred (1)	33.9		14.0		47.9		29.4		3.1		32.5		3.4		4.5		7.9		1.1
Write-Offs	Write-Offs	(6.5)		(33.2)		(39.7)		(5.0)		(7.7)		(12.7)		(0.3)		(12.3)		(12.6)		(2.3)		Write-Offs	(17.5)		(40.4)		(57.9)		(14.9)		(7.6)		(22.5)		0.1		(11.5)		(11.4)		(3.6)
Recoveries Collected	Recoveries Collected	0.3		3.5		3.8		0.2		1.0		1.2		—		1.3		1.3		0.2		Recoveries Collected	0.2		3.3		3.5		0.2		0.9		1.1		—		1.3		1.3		0.2
Ending Balance	Ending Balance	$	252.1	$	205.5	$	457.6	$	158.6	$	40.0	$	198.6	$	47.5	$	52.0	$	99.5	$	28.8	Ending Balance	$	354.8	$	187.9	$	542.7	$	241.2	$	35.1	$	276.3	$	49.1	$	51.7	$	100.8	$	12.4

Nine Months Ended 2022
Nine Months Ended 2023																						Nine Months Ended 2023
Beginning Balance	Beginning Balance	$	226.1	$	191.3	$	417.4	$	144.6	$	36.7	$	181.3	$	43.3	$	53.7	$	97.0	$	24.3	Beginning Balance	$	284.4	$	201.9	$	486.3	$	188.9	$	36.4	$	225.3	$	43.7	$	51.3	$	95.0	$	29.2
Uncollectible Expense	Uncollectible Expense	—		40.8		40.8		—		10.8		10.8		—		12.2		12.2		8.1		Uncollectible Expense	—		40.9		40.9		—		7.1		7.1		—		13.0		13.0		1.5
Uncollectible Costs Deferred (1)	Uncollectible Costs Deferred (1)	38.0		36.7		74.7		22.3		2.0		24.3		4.9		11.8		16.7		1.2		Uncollectible Costs Deferred (1)	104.7		22.8		127.5		80.3		9.3		89.6		5.8		13.8		19.6		(11.1)
Write-Offs	Write-Offs	(13.5)		(76.3)		(89.8)		(9.4)		(14.4)		(23.8)		(0.7)		(30.6)		(31.3)		(5.4)		Write-Offs	(35.3)		(88.5)		(123.8)		(29.0)		(21.3)		(50.3)		(0.4)		(30.4)		(30.8)		(7.8)
Recoveries Collected	Recoveries Collected	1.5		13.0		14.5		1.1		4.9		6.0		—		4.9		4.9		0.6		Recoveries Collected	1.0		10.8		11.8		1.0		3.6		4.6		—		4.0		4.0		0.6
Ending Balance	Ending Balance	$	252.1	$	205.5	$	457.6	$	158.6	$	40.0	$	198.6	$	47.5	$	52.0	$	99.5	$	28.8	Ending Balance	$	354.8	$	187.9	$	542.7	$	241.2	$	35.1	$	276.3	$	49.1	$	51.7	$	100.8	$	12.4


		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		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		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

(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 uncollectible energy supply costs and COVID-19. The increase in the allowance for uncollectible hardship accounts in 2023 at Eversource and CL&P primarily relates to increased customer enrollment in disconnection prevention programs in Connecticut.

(2) In connection with PSNH’s pole purchase agreement on May 1, 2023, the purchase price included the forgiveness of previously reserved receivables for reimbursement of operation and maintenance and vegetation management costs.

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, AROs, and in the valuation of business combinations and asset 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 1E, “Summary of Significant Accounting Policies - Investments in Unconsolidated Affiliates,” 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, 2022								September 30, 2021									September 30, 2023								September 30, 2022
(Millions of Dollars)	(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
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	Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion	$	28.5	$	7.0	$	12.9	$	3.7	$	55.3	$	16.2	$	21.6	$	6.8
AFUDC Equity	AFUDC Equity	12.6		3.7		6.5		0.7		10.3		1.7		6.2		0.3		AFUDC Equity	21.0		5.2		12.5		1.6		12.6		3.7		6.5		0.7
Equity in Earnings of Unconsolidated Affiliates	Equity in Earnings of Unconsolidated Affiliates	3.8		—		0.1		—		4.9		—		0.1		—		Equity in Earnings of Unconsolidated Affiliates	2.7		—		0.1		—		3.8		—		0.1		—
Investment Income/(Loss)		1.3		0.2		0.4		0.2		(0.6)		(0.3)		(0.2)		(0.1)
Investment Income																		Investment Income	2.7		1.5		0.7		0.4		1.3		0.2		0.4		0.2
Interest Income	Interest Income	14.1		1.8		9.2		0.4		7.3		1.3		3.9		0.4		Interest Income	24.1		4.6		13.6		1.5		14.1		1.8		9.2		0.4
Gain on Sale of Property		2.5		—		—		—		—		—		—		—

Other	Other	0.2		—		0.1		—		0.2		—		0.1		0.1		Other	0.1		—		0.1		—		2.7		—		0.1		—
Total Other Income, Net	Total Other Income, Net	$	89.8	$	21.9	$	37.9	$	8.1	$	43.8	$	6.9	$	20.2	$	3.2	Total Other Income, Net	$	79.1	$	18.3	$	39.9	$	7.2	$	89.8	$	21.9	$	37.9	$	8.1

		For the Nine Months Ended																	For the Nine Months Ended
		September 30, 2022								September 30, 2021									September 30, 2023								September 30, 2022
(Millions of Dollars)	(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
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	Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion	$	96.6	$	24.9	$	41.7	$	11.8	$	164.5	$	48.3	$	64.0	$	20.1
AFUDC Equity	AFUDC Equity	33.7		9.3		17.5		1.7		28.7		5.1		18.6		1.2		AFUDC Equity	55.5		13.9		34.0		3.4		33.7		9.3		17.5		1.7
Equity in Earnings of Unconsolidated Affiliates (1)	Equity in Earnings of Unconsolidated Affiliates (1)	20.8		—		0.2		—		13.3		—		0.3		—		Equity in Earnings of Unconsolidated Affiliates (1)	11.5		—		0.3		—		20.8		—		0.2		—
Investment Income/(Loss)		2.4		(0.9)		0.6		0.5		0.7		1.2		0.6		0.3
Investment (Loss)/Income																		Investment (Loss)/Income	(0.4)		(0.2)		0.5		—		2.4		(0.9)		0.6		0.5
Interest Income	Interest Income	30.3		4.6		18.8		1.1		17.2		4.1		8.8		2.0		Interest Income	68.6		8.0		44.0		3.6		30.3		4.6		18.8		1.1
Gain on Sale of Property		2.7		—		—		—		0.1		—		—		0.1

Other(1)	Other(1)	0.9		—		0.3		—		0.7		0.1		0.3		0.1		Other(1)	31.2		—		0.2		0.4		3.6		—		0.3		—
Total Other Income, Net	Total Other Income, Net	$	255.3	$	61.3	$	101.4	$	23.4	$	124.6	$	21.7	$	58.9	$	11.6	Total Other Income, Net	$	263.0	$	46.6	$	120.7	$	19.2	$	255.3	$	61.3	$	101.4	$	23.4

(1) ~~Equity in earnings of unconsolidated affiliates includes $12.2 million and $2.1 million of pre-tax unrealized gains associated with an~~Eversource’s equity method investment in a renewable energy fund was liquidated in March 2023. Liquidation proceeds in excess of the carrying value were recorded in 2023 within Other in the table above. See Note 1E, "Summary of Significant Accounting Policies - Investments in Unconsolidated Affiliates," for further information. For the nine months ended September 30, 2022, ~~and 2021, respectively.~~pre-tax income of $12.2 million associated with this investment was included in Equity in Earnings of Unconsolidated Affiliates within Other Income, Net in the table above.

E. Investments in Unconsolidated Affiliates

Investments in entities that are not consolidated are included in long-term assets on the balance sheets and earnings impacts from these equity investments are included in Other Income, Net on the statements of income. Eversource's investments included the following:


			Investment Balance
(Millions of Dollars)	Ownership Interest		As of September 30, 2023		As of December 31, 2022
Offshore Wind Business	50	%	$	2,578.6	$	1,947.1
Natural Gas Pipeline - Algonquin Gas Transmission, LLC	15	%	116.8		118.8
Renewable Energy Investment Fund	90	%	—		84.1
Other	various		28.5		26.1
Total Investments in Unconsolidated Affiliates			$	2,723.9	$	2,176.1

(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

Equity method investments are assessed for impairment when conditions exist that indicate that the fair value of the investment is less than book value. Eversource continually monitors and evaluates its equity method investments to determine if there are indicators of an other-than-temporary impairment. If the decline in value is considered to be other-than-temporary, the investment is written down to its estimated fair value, which establishes a new cost basis in the investment. Impairment evaluations involve a significant degree of judgment and estimation, including identifying circumstances that indicate an impairment may exist at the equity method investment level, selecting discount rates used to determine fair values, and developing an estimate of discounted future cash flows expected from investment operations or the sale of the investment.

Offshore Wind Business: Eversource’s offshore wind business includes a 50 percent ownership ~~interest~~interests in North East Offshore and South Fork Class B Member, LLC, which ~~holds~~collectively hold PPAs ~~and contracts~~ for the Revolution Wind and South Fork Wind projects and an Offshore Wind Renewable Energy Certificate (OREC) contract for the Sunrise Wind ~~projects, as well as an undeveloped~~project. Eversource’s offshore ~~lease area.~~wind business also includes a tax equity investment in South Fork Wind through a 100 percent ownership in South Fork Wind Holdings, LLC Class A shares. 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,~~are being developed and capitalized interest. Cash flows used in investing activities presented in Investments in Unconsolidated Affiliates on the statements of cash flows primarily relates to capital contributions in the offshore wind investment.constructed through joint and equal partnerships with Ørsted.

On May ~~4, 2022,~~25, 2023, Eversource announced that it had ~~initiated a~~completed the strategic review of its offshore wind investment ~~portfolio. As part of~~portfolio and determined that ~~review, Eversource is exploring strategic alternatives that could result in a potential~~it would continue to pursue the sale of ~~all, or part,~~its offshore wind investment. The sale process of Eversource’s existing 50 percent interest in its three jointly-owned, contracted offshore wind projects continues to progress, and Eversource anticipates an announcement inthe near term.

On September 7, 2023, Eversource completed the sale of its 50 percent interest in an uncommitted lease area consisting of approximately 175,000 developable acres located 25 miles off the south coast of Massachusetts to Ørsted for $625 million in an all-cash transaction. Eversource and Ørsted had entered into the purchase and sale agreement of this uncommitted lease area on May 25, 2023.

In September of 2023, Eversource and Ørsted executed a Tax Equity Capital Contribution Agreement for South Fork Wind and funded this tax equity investment. Eversource made a contribution of $528 million using the proceeds from the lease area sale to provide tax equity for South Fork Wind through this new tax equity member interest. In exchange for its investment, Eversource expects to receive investment tax credits as turbines are placed in service for South Fork Wind. These credits will be utilized to reduce Eversource’s federal tax liability, including refunds expected over the next twelve to eighteen months. South Fork Wind is expected to be fully in-service in early 2024.

In the second quarter of 2023, in connection with the conclusion of the strategic review, Eversource evaluated its aggregate investment in the projects, uncommitted lease area, and other related capitalized costs and determined that the carrying value of the equity method offshore wind investment exceeded the fair value of the investment and that the decline was other-than-temporary. The estimate of fair value was based on future cash flows arising from the expected sale price of Eversource’s 50 percent interest in the three contracted projects based on the most recent bid value, the sale price of the uncommitted lease area included in the purchase and sale agreement, expected investment tax credits and potential investment tax credit adder amounts, and the value of the tax equity ownership interest. As a result, Eversource recognized a pre-tax other-than-temporary impairment charge of $401.0 million ($331.0 million after-tax, which includes the impact of a $40 million valuation allowance for federal and state capital loss carryforwards) in the second quarter of 2023.

The impairment evaluation involved judgments in developing the estimate and timing of future cash flows arising from the anticipated sale transactions, including future project spending amounts that could reduce the ultimate sales value, expected ability to qualify the Revolution Wind and Sunrise Wind projects for investment tax credit adders, the expectation of improved Sunrise Wind OREC contract value, and the selection of the discount rate used to determine fair value, all of which are Level 3 fair value measurements. The assumptions used in the discounted cash flow analysis are subject to inherent uncertainties and subjectivity. The use of different assumptions, estimates, or judgments with respect to the estimation of future cash flows could materially increase the impairment charge. The impairment evaluation was based on best information available at the impairment assessment date. Management evaluated its investment as of September 30, 2023 and concluded that, considering all facts and circumstances as of that date, there were no impairment triggering events in the third quarter of 2023. Accordingly, no additional impairment charge was applicable.

The impairment valuation model includes a key judgment of future cash flows from the sale of the Sunrise Wind project of up to $450 million, which was based on the expectation of a successful repricing of the Sunrise Wind OREC contract. In June 2023, Sunrise Wind had filed a petition with the New York State Public Service Commission for an order authorizing NYSERDA to amend the Sunrise Wind OREC contract to incorporate interconnection costs and to provide for inflation adjustments. This value for Sunrise Wind was assessed through September 30, 2023, assuming that the contract repricing would be successful given NYSERDA’s public support for pricing adjustments. On October 12, 2023, the New York State Public Service Commission denied this petition. New York is in the process of establishing an expedited offshore wind renewable energy solicitation, with NYSERDA issuing a request for information to potential bidders on October 26, 2023. Eversource and Ørsted are evaluating the next steps in this re-bidding process. Given the unfavorable development on the OREC pricing denial in the fourth quarter of 2023, Eversource will evaluate the project’s next steps and probability of success in the New York re-bidding process. It is possible that adverse developments could impact the fair value of Sunrise Wind and could result in a significant impairment in a future period.

Another key assumption in the impairment model of our offshore wind investment was investment tax credit (“ITC”) adders that were included in the Inflation Reduction Act. An ITC adder is an additional 10 percent of credit value for ITC eligible costs and include two distinct qualifications related to either using domestic sourced materials (domestic content) or construction of an onshore substation in a designated community (energy communities). Similar to the base ITC of 30 percent of the eligible costs, any ITC adders generated would be used to reduce Eversource’s current federal tax liability and could be used to receive tax refunds from prior years as well. Management estimated in the second quarter of 2023 that it would be able to realize a 10 percent ITC adder for both the Sunrise Wind and Revolution Wind projects, which is a total expected value of approximately $400 million. There is uncertainty at this time as to whether or not those ITC adders can be achieved, and management continues to evaluate the project’s qualifications and to monitor guidance issued by the United States Treasury Department. A change in the expected value or qualification of ITC adders could result in a significant impairment in a future period.

The three contracted offshore wind projects also are facing construction and scheduling related pressures, which may cause additional required capital contributions from Eversource that are not factored into the expected sales price. It is possible that these future spending amounts could result in a significant impairment charge in a future period.

Management will continue to monitor and evaluate all facts and circumstances in the offshore wind sales process and the impact on its investment balance. The fair value of the investment will be updated based on changes in critical assumptions, the final sales price, and final sales terms. It is possible that there will be changes in our expectations of the timing of the sale of our three projects. Adverse changes in facts and circumstances of estimates and timing of future cash flows and the factors described above could result in the recognition of additional, significant impairment charges and could be material to the financial statements.

The impairment charge was a non-cash charge and did not impact Eversource’s cash position. Eversource will continue to make future cash expenditures for required cash contributions to its offshore wind ~~partnership with Ørsted. In late July, Eversource started preliminary and targeted outreach~~investment up to ~~potential buyers. Eversource continues~~the time of the sale of the offshore wind projects. Proceeds from the transaction will be used to ~~work with potential buyers through this ongoing process and expects to complete this review during 2022.~~pay off parent company debt. Eversource’s ~~strategic review~~expected sale of its offshore wind investment does not impact the presentation of the September 30, ~~2022~~2023 financial statements.

Proceeds received from the sale of the uncommitted lease area and the contribution for the tax equity investment in South Fork Wind, along with continued capital contributions in the offshore wind investment, are included in Investments in Unconsolidated Affiliates within investing activities on the statement of cash flows for the nine months ended September 30, 2023.

Liquidation of Renewable Energy Investment Fund: On March 21, 2023, Eversource’s equity method investment in a renewable energy investment fund was liquidated by the fund’s general partner in accordance with the partnership agreement. Proceeds received from the liquidation totaled $147.0 million and are included in Investments in Unconsolidated Affiliates within investing activities on the statement of cash flows. Of this amount, $123.4 million was received in the first quarter of 2023, and $23.6 million was received from escrow in the second quarter of 2023. A portion of the proceeds was used to make a charitable contribution to the Eversource Energy Foundation (a related party) of $20.0 million in the first quarter of 2023. The liquidation benefit received in excess of the investment’s carrying value and the charitable contribution are included in Other Income, Net on the statement of income.

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, 2022		September 30, 2021		September 30, 2022		September 30, 2021		(Millions of Dollars)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Eversource	Eversource	$	52.9	$	49.4	$	146.0	$	137.9	Eversource	$	53.7	$	52.9	$	153.4	$	146.0
CL&P	CL&P	49.2		46.1		126.0		120.7		CL&P	50.2		49.2		132.2		126.0

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, 2022		As of September 30, 2021		(Millions of Dollars)	As of September 30, 2023		As of September 30, 2022
Eversource	Eversource	$	394.1	$	359.6	Eversource	$	462.4	$	394.1
CL&P	CL&P	96.7		75.3		CL&P	86.3		96.7
NSTAR Electric	NSTAR Electric	94.5		94.2		NSTAR Electric	135.9		94.5
PSNH	PSNH	49.7		32.8		PSNH	71.9		49.7

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, 2022								As of December 31, 2021									As of September 30, 2023								As of December 31, 2022
(Millions of Dollars)	(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
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	$	—	Cash and Cash Equivalents as reported on the Balance Sheets	$	78.8	$	9.8	$	6.0	$	33.9	$	374.6	$	11.3	$	327.7	$	0.1
Restricted cash included in:	Restricted cash included in:																	Restricted cash included in:
Special Deposits	Special Deposits	76.5		8.7		17.3		18.7		78.2		18.7		17.4		31.4		Special Deposits	68.4		9.1		8.8		18.2		102.2		8.8		17.5		33.1
Marketable Securities	Marketable Securities	20.8		0.1		—		0.1		31.3		0.3		0.1		0.5		Marketable Securities	16.2		—		—		—		25.4		0.2		0.1		0.4
Other Long-Term Assets	Other Long-Term Assets	19.3		—		—		3.2		44.7		—		—		3.2		Other Long-Term Assets	17.5		—		—		3.2		19.6		—		—		3.2
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	Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows	$	180.9	$	18.9	$	14.8	$	55.3	$	521.8	$	20.3	$	345.3	$	36.8

Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, cash held in escrow accounts, 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~~As of both September 30, 2023 and December 31, 2022, restricted cash included in Marketable Securities ~~represents~~represented restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations. As of December 31, 2022, restricted cash included in Marketable Securities also included 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.~~benefits.

Restricted cash ~~also~~ includes 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,~~This restricted cash included $20.0 million ~~of this restricted cash was~~ recorded as short-term in Special Deposits as of both September 30, 2023 and December 31, 2022, and $14.3 million 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.~~sheets as of September 30, 2023 and December 31, 2022, respectively.

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, 2022								As of December 31, 2021									As of September 30, 2023								As of December 31, 2022
(Millions of Dollars)	(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH		(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Benefit Costs		$	1,408.9	$	263.3	$	389.0	$	114.6	$	1,481.0	$	272.4	$	395.5	$	118.9
Storm Costs, Net	Storm Costs, Net	1,243.9		722.5		459.9		61.5		1,102.7		695.6		341.3		65.8		Storm Costs, Net	$	1,700.6	$	882.7	$	553.9	$	264.0	$	1,379.1	$	799.3	$	484.4	$	95.4
Regulatory Tracking Mechanisms	Regulatory Tracking Mechanisms	941.2		214.4		339.0		70.4		1,050.5		333.6		376.6		85.4		Regulatory Tracking Mechanisms	1,173.3		254.3		473.4		166.1		1,075.3		216.8		391.5		73.7
Benefit Costs																		Benefit Costs	863.4		143.2		278.0		51.8		921.7		156.7		299.5		56.6
Income Taxes, Net	Income Taxes, Net	808.5		480.0		114.5		17.4		790.7		470.5		112.6		17.5		Income Taxes, Net	879.6		504.5		125.7		17.6		853.3		491.1		115.6		16.0
Securitized Stranded Costs	Securitized Stranded Costs	446.5		—		—		446.5		478.9		—		—		478.9		Securitized Stranded Costs	403.3		—		—		403.3		435.7		—		—		435.7
Goodwill-related	Goodwill-related	285.2		—		244.8		—		297.8		—		255.7		—		Goodwill-related	268.3		—		230.4		—		281.0		—		241.2		—
Derivative Liabilities	Derivative Liabilities	195.9		195.9		—		—		249.2		249.2		—		—		Derivative Liabilities	136.6		136.6		—		—		181.8		181.8		—		—
Asset Retirement Obligations	Asset Retirement Obligations	124.3		35.3		66.0		4.3		115.0		33.6		59.8		4.1		Asset Retirement Obligations	135.0		37.8		70.9		4.7		127.9		35.9		68.2		4.4
Other Regulatory Assets	Other Regulatory Assets	248.0		27.1		32.0		14.1		150.0		29.9		37.7		15.8		Other Regulatory Assets	296.5		23.5		96.3		9.0		322.5		26.2		114.0		14.4
Total Regulatory Assets	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		Total Regulatory Assets	5,856.6		1,982.6		1,828.6		916.5		5,578.3		1,907.8		1,714.4		696.2
Less: Current Portion	Less: Current Portion	1,143.6		305.6		387.3		110.1		1,129.1		371.6		444.0		107.2		Less: Current Portion	1,507.9		383.7		638.5		177.1		1,335.5		314.1		492.8		102.2
Total Long-Term Regulatory Assets	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	Total Long-Term Regulatory Assets	$	4,348.7	$	1,598.9	$	1,190.1	$	739.4	$	4,242.8	$	1,593.7	$	1,221.6	$	594.0

Regulatory Costs in Long-Term Assets: Eversource's regulated companies had ~~$288.9~~$251.4 million (including ~~$121.0~~$159.8 million for CL&P, ~~$94.6~~$26.7 million for NSTAR Electric and ~~$2.8~~$1.2 million for PSNH) and ~~$252.5~~$210.8 million (including ~~$114.9~~$135.9 million for CL&P, ~~$85.0~~$19.8 million for NSTAR Electric and ~~$3.4~~$1.0 million for PSNH) of additional regulatory costs as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, 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, ~~2022~~2023 and December 31, ~~2021,~~2022, these regulatory costs included $85.6 million (including $65.6 million for CL&P and $9.6 million for NSTAR Electric) and $64.0 million (including $52.8 million for CL&P and $3.5 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs. As of both September 30, 2023 and December 31, 2022, these regulatory costs also included incremental COVID-19 related non-tracked uncollectible expense deferred of ~~$34.6 million and $33.0~~$29.8 million at Eversource, ~~$16.5 million and $18.0~~$11.8 million at CL&P, and $2.2 million ~~and $6.1 million~~ at NSTAR ~~Electric, respectively.~~Electric.

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

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
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 654.5 122.4 418.3 19.3 649.6 100.1 381.0 17.2
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 240.3 28.9 127.5 25.3 148.3 12.0 90.7 14.9
Benefit Costs 110.9 — 88.1 — 133.5 — 107.4 —
AFUDC - Transmission 93.1 46.4 46.7 — 81.0 43.2 37.8 —
CL&P Settlement Agreement and Storm
Performance Penalty — — — — 81.3 81.3 — —
Other Regulatory Liabilities 204.6 38.6 4.4 6.7 241.4 45.1 0.8 3.3
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 988.7 434.5 368.0 185.1 602.4 266.5 228.2 120.2
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


	As of September 30, 2023								As of December 31, 2022
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
EDIT due to Tax Cuts and Jobs Act of 2017	$	2,568.6	$	973.4	$	915.2	$	341.6	$	2,619.3	$	983.6	$	944.3	$	348.6
Cost of Removal	680.8		154.9		418.3		16.0		670.6		130.8		405.3		14.7
Regulatory Tracking Mechanisms	740.5		205.4		345.2		108.4		890.8		361.0		336.1		155.0
Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP	333.4		46.1		166.8		34.7		270.9		34.5		139.7		28.8
AFUDC - Transmission	117.6		53.5		64.1		—		98.2		48.2		50.0		—
Benefit Costs	43.9		0.5		21.4		—		55.4		0.7		31.4		—
Other Regulatory Liabilities	261.4		30.4		72.6		4.9		215.9		40.6		14.5		6.5
Total Regulatory Liabilities	4,746.2		1,464.2		2,003.6		505.6		4,821.1		1,599.4		1,921.3		553.6
Less: Current Portion	724.4		155.9		416.0		114.6		890.8		336.0		373.2		162.0
Total Long-Term Regulatory Liabilities	$	4,021.8	$	1,308.3	$	1,587.6	$	391.0	$	3,930.3	$	1,263.4	$	1,548.1	$	391.6

2324

Regulatory Development:

PSNH Pole Acquisition Approval: On November 18, 2022, the NHPUC issued a decision that approved a proposed purchase agreement between PSNH and Consolidated Communications, in which PSNH would acquire both jointly-owned and solely-owned poles and pole assets. The NHPUC also authorized PSNH to recover certain expenses associated with the operation and maintenance of the transferred poles, pole inspections, and vegetation management expenses through a new cost recovery mechanism, the Pole Plant Adjustment Mechanism (PPAM), subject to consummation of the purchase agreement. The purchase agreement was finalized on May 1, 2023 for a purchase price of $23.3 million. Upon consummation of the purchase agreement, PSNH established a regulatory asset of $16.9 million for operation and maintenance expenses and vegetation management expenses associated with the purchased poles incurred from February 10, 2021 through April 30, 2023 that PSNH is authorized to collect through the PPAM regulatory tracking mechanism. The establishment of the PPAM regulatory asset resulted in a pre-tax benefit recorded in Amortization expense on the PSNH statement of income in the second quarter of 2023.

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, 2022		As of December 31, 2021		Eversource	As of September 30, 2023		As of December 31, 2022
(Millions of Dollars)	(Millions of Dollars)					(Millions of Dollars)
Distribution - Electric	Distribution - Electric	$	18,132.2	$	17,679.1	Distribution - Electric	$	19,238.3	$	18,326.2
Distribution - Natural Gas	Distribution - Natural Gas	7,020.1		6,694.8		Distribution - Natural Gas	7,754.4		7,443.8
Transmission - Electric	Transmission - Electric	13,371.2		12,882.4		Transmission - Electric	14,233.1		13,709.3
Distribution - Water	Distribution - Water	1,971.1		1,900.9		Distribution - Water	2,203.6		2,112.6
Solar	Solar	200.9		200.9		Solar	200.8		200.8
Utility	Utility	40,695.5		39,358.1		Utility	43,630.2		41,792.7
Other (1)	Other (1)	1,663.4		1,469.5		Other (1)	1,959.2		1,738.1
Property, Plant and Equipment, Gross	Property, Plant and Equipment, Gross	42,358.9		40,827.6		Property, Plant and Equipment, Gross	45,589.4		43,530.8
Less: Accumulated Depreciation	Less: Accumulated Depreciation					Less: Accumulated Depreciation
Utility	Utility	(9,070.0)		(8,885.2)		Utility	(9,518.6)		(9,167.4)
Other	Other	(672.9)		(580.1)		Other	(823.0)		(706.1)
Total Accumulated Depreciation	Total Accumulated Depreciation	(9,742.9)		(9,465.3)		Total Accumulated Depreciation	(10,341.6)		(9,873.5)
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	32,616.0		31,362.3		Property, Plant and Equipment, Net	35,247.8		33,657.3
Construction Work in Progress	Construction Work in Progress	2,413.5		2,015.4		Construction Work in Progress	3,270.5		2,455.5
Total Property, Plant and Equipment, Net	Total Property, Plant and Equipment, Net	$	35,029.5	$	33,377.7	Total Property, Plant and Equipment, Net	$	38,518.3	$	36,112.8


		As of September 30, 2022						As of December 31, 2021							As of September 30, 2023						As of December 31, 2022
(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	$	7,297.2	$	8,329.1	$	2,546.2	$	7,117.6	$	8,105.5	$	2,496.2	Distribution - Electric	$	7,717.0	$	8,816.5	$	2,745.1	$	7,370.1	$	8,410.0	$	2,586.4
Transmission - Electric	Transmission - Electric	6,022.8		5,243.3		2,106.8		5,859.0		5,090.5		1,934.6		Transmission - Electric	6,345.8		5,536.6		2,352.4		6,165.1		5,333.8		2,212.0
Solar	Solar	—		200.9		—		—		200.9		—		Solar	—		200.8		—		—		200.8		—
Property, Plant and Equipment, Gross	Property, Plant and Equipment, Gross	13,320.0		13,773.3		4,653.0		12,976.6		13,396.9		4,430.8		Property, Plant and Equipment, Gross	14,062.8		14,553.9		5,097.5		13,535.2		13,944.6		4,798.4
Less: Accumulated Depreciation	Less: Accumulated Depreciation	(2,571.5)		(3,322.3)		(908.2)		(2,572.1)		(3,227.3)		(908.4)		Less: Accumulated Depreciation	(2,659.0)		(3,535.5)		(974.2)		(2,567.1)		(3,381.2)		(912.3)
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	10,748.5		10,451.0		3,744.8		10,404.5		10,169.6		3,522.4		Property, Plant and Equipment, Net	11,403.8		11,018.4		4,123.3		10,968.1		10,563.4		3,886.1
Construction Work in Progress	Construction Work in Progress	478.2		914.2		172.8		399.0		707.0		134.1		Construction Work in Progress	632.2		1,390.8		309.7		498.9		1,063.6		174.1
Total Property, Plant and Equipment, Net	Total Property, Plant and Equipment, Net	$	11,226.7	$	11,365.2	$	3,917.6	$	10,803.5	$	10,876.6	$	3,656.5	Total Property, Plant and Equipment, Net	$	12,036.0	$	12,409.2	$	4,433.0	$	11,467.0	$	11,627.0	$	4,060.2

(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 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, 2022						As of December 31, 2021								As of September 30, 2023						As of December 31, 2022
CL&P (Millions of Dollars)	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		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	Current Derivative Assets	Level 3	$	15.7	$	(0.5)	$	15.2	$	14.7	$	(1.0)	$	13.7	Current Derivative Assets	Level 3	$	16.9	$	(0.5)	$	16.4	$	16.3	$	(0.5)	$	15.8
Long-Term Derivative Assets	Long-Term Derivative Assets	Level 3	32.8		(1.0)		31.8		46.9		(0.9)		46.0		Long-Term Derivative Assets	Level 3	17.0		(0.5)		16.5		28.8		(0.9)		27.9
Current Derivative Liabilities	Current Derivative Liabilities	Level 3	(78.6)		—		(78.6)		(73.5)		—		(73.5)		Current Derivative Liabilities	Level 3	(84.2)		—		(84.2)		(81.6)		—		(81.6)
Long-Term Derivative Liabilities	Long-Term Derivative Liabilities	Level 3	(164.3)		—		(164.3)		(235.4)		—		(235.4)		Long-Term Derivative Liabilities	Level 3	(85.3)		—		(85.3)		(143.9)		—		(143.9)

(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, ~~2022~~2023 and December 31, ~~2021~~2022 were ~~675~~674 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.

For the three months ended September 30, 2022 and 2021, there were gains of $2.4 million and $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, 2022 and 2021, there were gains of $11.2 million and losses of $9.5 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. 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 the significant unobservable inputs utilized in the valuations of the derivative contracts classified as Level 3:~~

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 ~~3.4~~1.3 percent through ~~7.7~~5.5 percent, or a weighted average of ~~6.6~~4.5 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,~~2022, Level 3 unobservable inputs also utilized in the valuation of CL&P’s capacity-related related contracts included ~~capacity~~forward reserve prices of ~~$2.61~~$0.44 per kW-Month through $0.50 per kW-Month, or a weighted average of $0.47 per kW-Month, over the period ~~2025~~2023 through ~~2026. Beginning in the first quarter~~2024. As of ~~2022,~~September 30, 2023, these ~~capacity price inputs~~forward reserve prices 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 For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Millions of Dollars) 2022 2021 2022 2021
Derivatives, Net:
Fair Value as of Beginning of Period $ (213.3) $ (279.7) $ (249.2) $ (293.1)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets 2.4 0.7 11.2 (10.9)
Settlements 15.0 13.7 42.1 38.7
Fair Value as of End of Period $ (195.9) $ (265.3) $ (195.9) $ (265.3)


CL&P	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Millions of Dollars)	2023		2022		2023		2022
Derivatives, Net:
Fair Value as of Beginning of Period	$	(152.1)	$	(213.3)	$	(181.8)	$	(249.2)
Net Realized/Unrealized (Losses)/Gains Included in Regulatory Assets	(1.5)		2.4		(1.6)		11.2
Settlements	17.0		15.0		46.8		42.1
Fair Value as of End of Period	$	(136.6)	$	(195.9)	$	(136.6)	$	(195.9)

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 legally restricted trusts that each hold equity and available-for-sale debt securities to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities. Eversource also holds trusts that are not subject to regulatory oversight by state or federal agencies that are primarily used to fund certain non-qualified executive benefits. The marketable securities within these non-qualified executive benefit trusts were sold in 2023. 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.

2526

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 December 31, 2022 was $20.0 million. These equity securities were sold during 2023 and resulted in a $1.1 million gain recorded in Other Income, Net for the nine months ended September 30, ~~2022 and December 31, 2021 was $23.3 million and $40.2 million, respectively.~~2023. For the three and nine months ended September 30, 2022, ~~and 2021,~~ there ~~were unrealized losses of~~was $1.5 million and ~~$0.5~~$10.6 million of unrealized losses, respectively, recorded in Other Income, Net that related to these equity securities. For the nine months ended September 30, 2022 and 2021, there were unrealized losses of $10.6 million and unrealized gains of $2.5 million recorded in Other Income, Net related to these equity securities ~~respectively.~~still held at the reporting date.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of ~~$170.1~~$168.3 million and ~~$214.0~~$170.1 million as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, 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 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:


		As of September 30, 2022								As of December 31, 2021									As of September 30, 2023								As of December 31, 2022
Eversource (Millions of Dollars)	Eversource (Millions of Dollars)	Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value		Eversource (Millions of Dollars)	Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value
Debt Securities	Debt Securities	$	205.4	$	0.2	$	(15.5)	$	190.1	$	214.5	$	5.1	$	(0.2)	$	219.4	Debt Securities	$	173.0	$	0.3	$	(11.0)	$	162.3	$	201.6	$	0.1	$	(16.2)	$	185.5

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 was $1.2 million of realized losses recorded on securities sold for the nine months ended September 30, 2023 that were reclassified out of Accumulated Other Comprehensive Income and recorded in Other Income, Net. There have been no credit losses for the three and nine months ended September 30, ~~2022~~2023 and ~~2021,~~2022, and no allowance for credit losses as of September 30, ~~2022.~~2023. 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.

Eversource's debt securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of ~~$170.3~~$162.2 million and ~~$189.9~~$163.2 million as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, 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~~2023 and December 31, ~~2021~~2022 primarily relate to the debt securities included in CYAPC's and YAEC's spent nuclear fuel trusts.

As of September 30, ~~2022,~~2023, 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)	$	22.4	$	22.4	Less than one year (1)	$	19.0	$	19.4
One to five years	One to five years	56.0		54.6		One to five years	29.9		29.2
Six to ten years	Six to ten years	40.8		36.7		Six to ten years	41.7		39.9
Greater than ten years	Greater than ten years	86.2		76.4		Greater than ten years	82.4		73.8
Total Debt Securities	Total Debt Securities	$	205.4	$	190.1	Total Debt Securities	$	173.0	$	162.3

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

Realized Gains and Losses: Realized gains and losses are recorded in Other Income, Net for Eversource's benefit trust and are offset in 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.

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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, 2022		As of December 31, 2021		Eversource (Millions of Dollars)	As of September 30, 2023		As of December 31, 2022
Level 1:	Level 1:					Level 1:
Mutual Funds and Equities	Mutual Funds and Equities	$	193.4	$	254.2	Mutual Funds and Equities	$	168.3	$	190.1
Money Market Funds	Money Market Funds	20.8		31.3		Money Market Funds	16.2		25.4
Total Level 1	Total Level 1	$	214.2	$	285.5	Total Level 1	$	184.5	$	215.5
Level 2:	Level 2:					Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	U.S. Government Issued Debt Securities (Agency and Treasury)	$	77.4	$	81.3	U.S. Government Issued Debt Securities (Agency and Treasury)	$	86.1	$	82.3
Corporate Debt Securities	Corporate Debt Securities	54.8		65.3		Corporate Debt Securities	34.1		46.1
Asset-Backed Debt Securities	Asset-Backed Debt Securities	9.5		12.6		Asset-Backed Debt Securities	5.9		8.6
Municipal Bonds	Municipal Bonds	13.0		12.3		Municipal Bonds	9.3		12.7
Other Fixed Income Securities	Other Fixed Income Securities	14.6		16.6		Other Fixed Income Securities	10.7		10.4
Total Level 2	Total Level 2	$	169.3	$	188.1	Total Level 2	$	146.1	$	160.1
Total Marketable Securities	Total Marketable Securities	$	383.5	$	473.6	Total Marketable Securities	$	330.6	$	375.6

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, 2027.~~13, 2028. 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, 2027. This revolving credit facility~~13, 2028, and serves to backstop NSTAR Electric's $650 million commercial paper program.

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


		Borrowings Outstanding as of					Available Borrowing Capacity as of				Weighted-Average Interest Rate as of							Borrowings Outstanding as of								Available Borrowing Capacity as of								Weighted-Average Interest Rate as of
		September 30, 2022		December 31, 2021			September 30, 2022	December 31, 2021			September 30, 2022				December 31, 2021			September 30, 2023				December 31, 2022				September 30, 2023				December 31, 2022				September 30, 2023				December 31, 2022
(Millions of Dollars)	(Millions of Dollars)									(Millions of Dollars)
Eversource Parent Commercial Paper Program	Eversource Parent Commercial Paper Program	$	401.5		$	1,343.0		$	1,598.5				$	657.0						3.34	%			0.31	%	Eversource Parent Commercial Paper Program		$	1,320.3			$	1,442.2			$	679.7			$	557.8	5.53	%	4.63	%
NSTAR Electric Commercial Paper Program	NSTAR Electric Commercial Paper Program	—		162.5			650.0	487.5			—	%			0.14	%	NSTAR Electric Commercial Paper Program		209.5				—				440.5				650.0				5.35		%		—		%

There were no borrowings outstanding on the revolving credit facilities as of September 30, ~~2022~~2023 or December 31, ~~2021.~~2022.

CL&P and PSNH have uncommitted line of credit agreements totaling ~~$450~~$375 million and ~~$300~~$250 million, respectively, which will expire ~~on May 12, 2023.~~in 2024. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, ~~2022.~~2023.

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.

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,~~2023, there were intercompany loans from Eversource parent to CL&P of ~~$26.0~~$213.4 million and to PSNH of ~~$139.7 million, and to a subsidiary of NSTAR Electric of $2.8~~$0.1 million. As of December 31, ~~2021,~~2022, there were intercompany loans from Eversource parent to PSNH of ~~$110.6~~$173.3 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. 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.~~sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.

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.

2728

Availability under Long-Term Debt Issuance Authorizations:On June ~~14, 2022, the DPU~~7, 2023, PURA approved ~~NSTAR~~Yankee Gas’ request for authorization to issue up to ~~$325~~$350 million in long-term debt through December 31, 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
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 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 March 2022 Paid at maturity
Yankee Gas 8.48% Series B First Mortgage Bonds (20.0) March 2022 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) 0 July 2022 July 2022 Paid at maturity
Aquarion Water Company of Connecticut 4.69% Senior Notes 70.0 August 2022 September 2052 Repaid short-term debt

Cash Equivalents on the Eversource and NSTAR Electric balance sheets as of September 30, 2022 comprise a money market fund that primarily included proceeds received from an 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.

(Millions of Dollars)

Interest Rate

Issuance/(Repayment)

Issue Date or Repayment Date

Maturity Date

Use of Proceeds for Issuance/
Repayment Information

CL&P 2023 Series A First Mortgage Bonds

5.25

500.0

January 2023

January 2053

Repaid 2013 Series A Bonds at maturity and short-term debt, and paid capital expenditures and working capital

CL&P 2013 Series A First Mortgage Bonds

2.50

(400.0)

January 2023

Paid at maturity

CL&P 2023 Series B First Mortgage Bonds

4.90

300.0

July 2023

July 2033

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

NSTAR Electric 2023 Debentures

5.60

150.0

September 2023

October 2028

Repay Series G Senior Notes at maturity and short-term debt and for general corporate purposes

PSNH Series W First Mortgage Bonds

5.15

300.0

January 2023

January 2053

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

PSNH Series X First Mortgage Bonds

5.35

300.0

September 2023

October 2033

Repaid Series S Bonds at maturity and for general corporate purposes

PSNH Series S First Mortgage Bonds

3.50

(325.0)

November 2023

Paid at maturity

Eversource Parent Series Z Senior Notes

5.45

750.0

March 2023

March 2028

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

Eversource Parent Series F Senior Notes

2.80

(450.0)

May 2023

Paid at maturity

Eversource Parent Series Z Senior Notes

5.45

550.0

May 2023

March 2028

Repay Series T Senior Notes and Series N Senior Notes at maturity and short-term debt

Eversource Parent Series AA Senior Notes

4.75

450.0

May 2023

May 2026

Repay Series T Senior Notes and Series N Senior Notes at maturity and short-term debt

Eversource Parent Series BB Senior Notes

5.125

800.0

May 2023

May 2033

Repay Series T Senior Notes and Series N Senior Notes at maturity and short-term debt

Eversource Parent Variable Rate Series T Senior Notes

SOFR plus 0.25%

(350.0)

August 2023

Paid at maturity

Yankee Gas Series V First Mortgage Bonds

5.51

170.0

August 2023

August 2030

Repaid short-term debt and general corporate purposes

Aquarion Water Company of Connecticut Senior Notes

5.89

50.0

September 2023

October 2043

Repaid existing indebtedness, paid capital expenditures and general corporate purposes

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, 2022		As of December 31, 2021		PSNH Balance Sheets:	As of September 30, 2023		As of December 31, 2022
Restricted Cash - Current Portion (included in Current Assets)	Restricted Cash - Current Portion (included in Current Assets)	$	18.0	$	31.1	Restricted Cash - Current Portion (included in Current Assets)	$	16.6	$	32.4
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	3.2		3.2		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)	446.5		478.9		Securitized Stranded Cost (included in Regulatory Assets)	403.3		435.7
Other Regulatory Liabilities (included in Regulatory Liabilities)	Other Regulatory Liabilities (included in Regulatory Liabilities)	7.9		5.4		Other Regulatory Liabilities (included in Regulatory Liabilities)	6.7		6.0
Accrued Interest (included in Other Current Liabilities)	Accrued Interest (included in Other Current Liabilities)	2.8		7.5		Accrued Interest (included in Other Current Liabilities)	2.5		6.9
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	410.5		453.7		Rate Reduction Bonds - Long-Term Portion	367.3		410.5

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(Millions of Dollars) PSNH Income Statements:	(Millions of Dollars) PSNH Income Statements:	For the Three Months Ended				For the Nine Months Ended				(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			September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	$	10.8	$	10.8	$	32.4	$	32.4	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)	Interest Expense on RRB Principal (included in Interest Expense)	4.2		4.5		12.9		13.9		Interest Expense on RRB Principal (included in Interest Expense)	3.9		4.2		11.9		12.9

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/(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/(income)~~expense reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.

Pension and SERP PBOP
For the Three Months Ended September 30, 2022 For the Three Months Ended September 30, 2022
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Service Cost $ 17.5 $ 4.7 $ 3.4 $ 1.7 $ 2.9 $ 0.5 $ 0.5 $ 0.3
Interest Cost 38.6 7.8 8.2 4.2 5.0 0.9 1.3 0.5
Expected Return on Plan Assets (130.7) (26.5) (32.1) (14.0) (22.5) (2.8) (10.6) (1.7)
Actuarial Losses, net 28.4 4.0 8.1 1.9 — — — —
Prior Service Cost/(Credit) 0.4 — 0.1 — (5.4) 0.3 (4.2) 0.1
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 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) Eversource CL&P NSTAR
Electric PSNH Eversource CL&P NSTAR
Electric PSNH
Service Cost $ 52.7 $ 13.9 $ 10.4 $ 5.2 $ 8.7 $ 1.5 $ 1.5 $ 0.8
Interest Cost 115.8 23.4 24.5 12.6 15.1 2.7 3.9 1.6
Expected Return on Plan Assets (393.1) (79.6) (96.2) (42.1) (67.5) (8.4) (31.8) (5.0)
Actuarial Losses, net 87.5 12.2 24.7 6.0 — — — —
Prior Service Cost/(Credit) 1.1 — 0.3 — (16.2) 0.8 (12.7) 0.3
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 N/A $ (11.9) $ (9.3) $ (2.7) N/A $ (2.7) $ (2.7) $ (0.9)
Pension and SERP PBOP
For the Three Months Ended September 30, 2021 For the Three Months Ended September 30, 2021
(Millions of Dollars) Eversource CL&P NSTAR
Electric PSNH Eversource CL&P NSTAR
Electric PSNH
Service Cost $ 21.5 $ 5.6 $ 4.0 $ 2.2 $ 3.3 $ 0.5 $ 0.6 $ 0.3
Interest Cost 32.5 6.7 6.7 3.7 4.3 0.8 1.1 0.4
Expected Return on Plan Assets (109.5) (21.7) (27.1) (11.9) (19.8) (2.5) (9.2) (1.6)
Actuarial Loss 60.7 10.8 15.3 5.3 2.0 0.4 0.5 0.1
Prior Service Cost/(Credit) 0.3 — 0.1 — (5.3) 0.3 (4.3) 0.1
Total Net Periodic Benefit Plan Expense/(Income) $ 5.5 $ 1.4 $ (1.0) $ (0.7) $ (15.5) $ (0.5) $ (11.3) $ (0.7)
Intercompany Expense/(Income) Allocations N/A $ 2.2 $ 2.4 $ 0.7 N/A $ (0.4) $ (0.5) $ (0.2)


	Pension and SERP								PBOP
	For the Three Months Ended September 30, 2023								For the Three Months Ended September 30, 2023
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	10.7	$	3.1	$	1.9	$	1.0	$	1.9	$	0.4	$	0.3	$	0.2
Interest Cost	63.4		12.6		13.5		6.8		8.5		1.5		2.3		0.9
Expected Return on Plan Assets	(116.3)		(23.5)		(28.4)		(12.3)		(19.3)		(2.3)		(9.2)		(1.4)
Actuarial Loss	10.9		0.5		4.0		0.4		—		—		—		—
Prior Service Cost/(Credit)	0.3		—		0.1		—		(5.4)		0.2		(4.2)		0.1
Settlement Loss	8.7		—		—		—		—		—		—		—
Total Net Periodic Benefit Plan Income	$	(22.3)	$	(7.3)	$	(8.9)	$	(4.1)	$	(14.3)	$	(0.2)	$	(10.8)	$	(0.2)
Intercompany Expense/(Income) Allocations	N/A		$	0.8	$	0.9	$	0.3	N/A		$	(0.5)	$	(0.5)	$	(0.2)

	Pension and SERP								PBOP
	For the Nine Months Ended September 30, 2023								For the Nine Months Ended September 30, 2023
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	32.4	$	9.2	$	5.9	$	3.2	$	5.7	$	1.0	$	0.9	$	0.6
Interest Cost	190.6		37.9		40.5		20.4		25.4		4.6		6.9		2.7
Expected Return on Plan Assets	(348.7)		(70.6)		(85.3)		(37.1)		(57.9)		(7.0)		(27.7)		(4.2)
Actuarial Loss	35.0		1.9		12.9		1.2		—		—		—		—
Prior Service Cost/(Credit)	0.9		—		0.3		—		(16.2)		0.8		(12.7)		0.3
Settlement Loss	12.4		—		—		—		—		—		—		—
Total Net Periodic Benefit Plan Income	$	(77.4)	$	(21.6)	$	(25.7)	$	(12.3)	$	(43.0)	$	(0.6)	$	(32.6)	$	(0.6)
Intercompany Income Allocations	N/A		$	(1.8)	$	(1.2)	$	(0.3)	N/A		$	(1.4)	$	(1.6)	$	(0.5)

2930

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)

~~Eversource Contributions:~~ Based on the current status of the Pension Plans and federal pension funding requirements, there is no minimum funding requirement for our Pension Plans for 2022. Eversource 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 2022.


	Pension and SERP								PBOP
	For the Three Months Ended September 30, 2022								For the Three Months Ended September 30, 2022
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	17.5	$	4.7	$	3.4	$	1.7	$	2.9	$	0.5	$	0.5	$	0.3
Interest Cost	38.6		7.8		8.2		4.2		5.0		0.9		1.3		0.5
Expected Return on Plan Assets	(130.7)		(26.5)		(32.1)		(14.0)		(22.5)		(2.8)		(10.6)		(1.7)
Actuarial Loss	28.4		4.0		8.1		1.9		—		—		—		—
Prior Service Cost/(Credit)	0.4		—		0.1		—		(5.4)		0.3		(4.2)		0.1
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	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)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	52.7	$	13.9	$	10.4	$	5.2	$	8.7	$	1.5	$	1.5	$	0.8
Interest Cost	115.8		23.4		24.5		12.6		15.1		2.7		3.9		1.6
Expected Return on Plan Assets	(393.1)		(79.6)		(96.2)		(42.1)		(67.5)		(8.4)		(31.8)		(5.0)
Actuarial Loss	87.5		12.2		24.7		6.0		—		—		—		—
Prior Service Cost/(Credit)	1.1		—		0.3		—		(16.2)		0.8		(12.7)		0.3
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	N/A		$	(11.9)	$	(9.3)	$	(2.7)	N/A		$	(2.7)	$	(2.7)	$	(0.9)

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, 2022			As of December 31, 2021				As of September 30, 2023			As of December 31, 2022
		Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)			Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	Eversource	62	$	121.1	61	$	115.4	Eversource	63	$	130.5	59	$	122.6
CL&P	CL&P	14	14.1		14	13.9		CL&P	14	12.6		13	13.9
NSTAR Electric	NSTAR Electric	11	3.5		11	3.3		NSTAR Electric	12	5.4		10	3.4
PSNH	PSNH	9	6.2		9	6.3		PSNH	8	7.7		8	6.1

The increase in the reserve balance was due primarily to the addition of one environmental site at NSTAR Gas, two additional environmental sites at NSTAR Electric, and changes in cost estimates at certain MGP sites at our natural gas companies and PSNH for which additional remediation will be required.

Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured natural gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability. The reserve balances related to these former MGP sites were ~~$110.6~~$120.5 million and ~~$105.6~~$112.6 million as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, 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 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
(Millions of Dollars) 2022 2023 2024 2025 2026 Thereafter Total
Renewable Energy $ 27.1 $ 78.3 $ 269.4 $ 315.8 $ 322.1 $ 5,812.2 $ 6,824.9

~~The table includes long-term commitments of NSTAR Electric~~ pertaining to the Vineyard Wind LLC contract awarded under the Massachusetts Clean Energy 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 2022. Estimated energy costs under this contract are expected to begin when the facilities are in service in 2024 and range between $240 million and $375 million per year und~~er NSTAR Electric’s 20-year contract, totaling approximately $6.0 billion.~~

3031

C.B. 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 were ~~$4.3~~$4.4 million and ~~$7.3~~$4.2 million as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties, and primarily relates to its offshore wind business:


As of September 30, 2022
As of September 30, 2023						As of September 30, 2023
Company (Obligor)	Company (Obligor)	Description	Maximum Exposure (in millions)		Expiration Dates	Company (Obligor)	Description	Maximum Exposure (in millions)		Expiration Dates
North East Offshore LLC		Construction-related purchase agreements with third-party contractors (1)	$	759.6	(1)
North East Offshore						North East Offshore	Construction-related purchase agreements with third-party contractors (1)	$	705.8	(1)
Sunrise Wind LLC	Sunrise Wind LLC	Construction-related purchase agreements with third-party contractors (2)	288.1		2025 - 2026	Sunrise Wind LLC	Construction-related purchase agreements with third-party contractors (2)	823.3		2025 - 2028
Revolution Wind, LLC	Revolution Wind, LLC	Construction-related purchase agreements with third-party contractors (3)	419.0		2024 - 2027	Revolution Wind, LLC	Construction-related purchase agreements with third-party contractors (3)	381.1		2024 - 2027
South Fork Wind, LLC	South Fork Wind, LLC	Construction-related purchase agreements with third-party contractors (4)	142.7		2023 - 2026	South Fork Wind, LLC	Construction-related purchase agreements with third-party contractors (4)	55.5		2023 - 2026
Eversource Investment LLC						Eversource Investment LLC	Funding and indemnification obligations of South Fork Wind (5)	77.4		(5)
South Fork Class B Member, LLC						South Fork Class B Member, LLC	Funding and indemnification obligations of South Fork Wind (6)	77.4		(6)
Eversource Investment LLC	Eversource Investment LLC	Funding and indemnification obligations of North East Offshore LLC (5)	94.8		(5)	Eversource Investment LLC	Funding and indemnification obligations of North East Offshore (7)	29.8		(7)
South Fork Wind, LLC	South Fork Wind, LLC	Power Purchase Agreement Security (6)	7.1		(6)	South Fork Wind, LLC	Power Purchase Agreement Security (8)	7.1		(8)
Sunrise Wind LLC	Sunrise Wind LLC	OREC capacity production (7)	2.2		(7)	Sunrise Wind LLC	OREC capacity production (9)	11.0		(9)
Bay State Wind LLC	Bay State Wind LLC	Real estate purchase	2.5		2023	Bay State Wind LLC	Real estate purchase	2.5		2024
South Fork Wind, LLC	South Fork Wind, LLC	Transmission interconnection	1.2		—	South Fork Wind, LLC	Transmission interconnection	1.2		—
Eversource Investment LLC	Eversource Investment LLC	Letters of Credit (8)	4.3		—	Eversource Investment LLC	Letters of Credit (10)	15.2		—
Eversource TEI LLC						Eversource TEI LLC	South Fork Wind Tax Equity (11)	—		(11)
Various	Various	Surety bonds (9)	35.7		2022 - 2023	Various	Surety bonds (12)	38.8		2023 - 2024
Eversource Service	Eversource Service	Lease payments for real estate	0.6		2024	Eversource Service	Lease payments for real estate	0.3		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 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 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 5,7, below.

(2) Eversource parent issued guarantees 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 ~~$461.9 million,~~$1.06 billion, 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~~October 2028 and (ii) full performance of the guaranteed obligations.

(3) Eversource parent issued guarantees on behalf of its 50 percent-owned affiliate, Revolution Wind, LLC, whereby Eversource parent will guarantee Revolution Wind, LLC's performance of certain obligations, in an aggregate amount not to exceed ~~$542.1~~$546.4 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~~$161.0 million. Eversource parent’s obligations under these guarantees expire upon the earlier of (i) dates ranging from ~~June~~October 2023 and August 2026 and (ii) full performance of the guaranteed obligations.

(5)Eversource parent issued a guarantee on behalf of its wholly-owned subsidiary Eversource Investment LLC (EI), which holds Eversource's investments in offshore wind-related equity method investments, whereby Eversource parent will guarantee EI’s performance of certain obligations, in an amount not to exceed $110.0 million, primarily in connection with capital expenditure funding obligations during the construction phase of the South Fork Wind project. Eversource parent obligations expire upon the full performance of the guaranteed obligations.

(6) Eversource parent issued a guarantee on behalf of its 50 percent-owned affiliate, South Fork Class B Member, LLC, whereby Eversource parent will guarantee South Fork Class B Member, LLC’s performance of certain obligations, in an amount not to exceed $499.5 million, primarily in connection with capital expenditure funding obligations during the construction phase of the South Fork Wind project. Eversource parent obligations expire upon the full performance of the guaranteed obligations.

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

~~(6)~~(8) 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~~guaranteed obligations.

~~(7)~~(9) Eversource parent issued a guarantee on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guarantee Sunrise Wind LLC's performance of certain obligations, in an amount not to exceed $15.4 million, under the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement (the Agreement). The Agreement was executed 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.

~~(8)~~(10) 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~~EI 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. In June 2023, EI issued a letter of credit on behalf of Sunrise Wind LLC related to future environmental remediation in the amount of $9.9 million. In September 2023, EI issued a letter of credit on behalf of Revolution Wind, LLC related to onshore transmission construction in the amount of $1.0 million.

~~(9)~~(11) Eversource parent issued a guarantee on behalf of its wholly-owned subsidiary, Eversource TEI LLC, whereby Eversource parent will guarantee Eversource TEI LLC’s performance of certain obligations, in an amount not to exceed $528.4 million, primarily in connection with tax equity funding obligations during the construction phase of the South Fork Wind project. Eversource parent obligations expire upon the full performance of the guaranteed obligations.

(12) 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.C. 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 filed claims seeking monetary damages totaling $120.4 million for CYAPC, YAEC and MYAPC,~~Claims resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2017 to ~~2020 (DOE~~2020. The Yankee Companies filed claims seeking monetary damages totaling $120.4 million for CYAPC, YAEC and MYAPC. Pursuant to a June 2, 2022 court order, the Yankee Companies were subsequently permitted to include monetary damages relating to the year 2021 in the DOE Phase ~~V).~~V complaint. The Yankee Companies submitted a supplemental filing to include these costs of $33.1 million on June 8, 2022. The DOE Phase V trial is now expected to begin in ~~the third quarter of 2023.~~2024.

D. 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, 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, ~~2022~~2023 and December 31, ~~2021.~~2022. 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, ~~2022~~2023 and December 31, ~~2021.~~2022.

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

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

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

On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the NETOs' cases. On May 21, 2020, the FERC issued its order in Opinion No. 569-A on the rehearing of the MISO transmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. 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~~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~~Opinion Nos. 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'~~owners’ two complaint cases to the ~~NETOs'~~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 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.

NSTAR Electric and HEEC continue to finalize the resolution of certain long-term environmental restoration efforts, as required under the current permit. Upon completion of these restoration efforts and subsequent resolution with the United States Army Corps of Engineers, such litigation is expected to be 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 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 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 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, 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 in a customer assistance fund to provide bill payment assistance to certain existing non-hardship and hardship customers carrying arrearages, as approved by the PURA, with the objective of disbursing the funds prior to April 30, 2022. Those customers were provided with $10 million of bill forgiveness in the first quarter of 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 fund on the September 30, 2021 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 decision issued September 14, 2021 in the interim rate reduction docket, will be implemented.

CL&P has also agreed to freeze its current base distribution rates, 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 related to Storm Isaias and agreed to waive its right to file an appeal and seek a judicial stay of the 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 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					Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of September 30, 2022:
As of September 30, 2023:																		As of September 30, 2023:
Preferred Stock Not Subject to Mandatory Redemption	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	146.0	$	116.2	$	107.4	$	43.0	$	38.6	$	—	$	—	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	118.0	$	116.2	$	87.2	$	43.0	$	30.8	$	—	$	—
Long-Term Debt	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		Long-Term Debt	24,159.1		21,260.5		4,606.8		4,025.3		4,576.5		4,071.1		1,756.6		1,483.4
Rate Reduction Bonds	Rate Reduction Bonds	453.7		429.5		—		—		—		—		453.7		429.5		Rate Reduction Bonds	410.5		381.6		—		—		—		—		410.5		381.6

As of December 31, 2021:
As of December 31, 2022:																		As of December 31, 2022:
Preferred Stock Not Subject to Mandatory Redemption	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	166.3	$	116.2	$	122.3	$	43.0	$	44.0	$	—	$	—	Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	136.7	$	116.2	$	99.2	$	43.0	$	37.5	$	—	$	—
Long-Term Debt	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		Long-Term Debt	21,044.1		18,891.3		4,216.5		3,828.3		4,425.1		4,091.8		1,164.6		970.5
Rate Reduction Bonds	Rate Reduction Bonds	496.9		543.3		—		—		—		—		496.9		543.3		Rate Reduction Bonds	453.7		424.7		—		—		—		—		453.7		424.7

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 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, 2022								For the Nine Months Ended September 30, 2021									For the Nine Months Ended September 30, 2023								For the Nine Months Ended September 30, 2022
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/(Losses) 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	$	(0.4)	$	0.4	$	(42.3)	$	(42.3)	$	(1.4)	$	1.1	$	(76.1)	$	(76.4)	Balance as of Beginning of Period	$	(0.4)	$	(1.2)	$	(37.8)	$	(39.4)	$	(0.4)	$	0.4	$	(42.3)	$	(42.3)

OCI Before Reclassifications	OCI Before Reclassifications	—		(2.0)		(2.5)		(4.5)		—		(0.6)		(2.4)		(3.0)		OCI Before Reclassifications	—		—		0.1		0.1		—		(2.0)		(2.5)		(4.5)
Amounts Reclassified from AOCI	Amounts Reclassified from AOCI	—		—		5.8		5.8		1.0		—		6.5		7.5		Amounts Reclassified from AOCI	—		1.2		14.1		15.3		—		—		5.8		5.8
Net OCI	Net OCI	—		(2.0)		3.3		1.3		1.0		(0.6)		4.1		4.5		Net OCI	—		1.2		14.2		15.4		—		(2.0)		3.3		1.3
Balance as of End of Period	Balance as of End of Period	$	(0.4)	$	(1.6)	$	(39.0)	$	(41.0)	$	(0.4)	$	0.5	$	(72.0)	$	(71.9)	Balance as of End of Period	$	(0.4)	$	—	$	(23.6)	$	(24.0)	$	(0.4)	$	(1.6)	$	(39.0)	$	(41.0)

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses that arose during the year and were recognized in AOCI. The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCI into Other Income, Net over the average future employee service period, and are reflected in amounts reclassified from AOCI. Defined benefit plan amounts reclassified from AOCI also include a settlement loss amortized into net periodic benefit plan expense/(income) for the nine months ended September 30, 2023. See Note 8, "Pension Benefits and Postretirement Benefits Other Than Pension," for further information.

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, 2022 and December 31, 2021		Issued as of									Authorized as of				Issued as of
		Par Value			September 30, 2022		December 31, 2021		Par Value				September 30, 2023			December 31, 2022		September 30, 2023		December 31, 2022
Eversource	Eversource	$	5		380,000,000		359,984,073			357,818,402		Eversource	$	5		410,000,000		380,000,000		359,984,073		359,984,073
CL&P	CL&P	$	10	24,500,000		6,035,205		6,035,205		CL&P	$	10			24,500,000		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		100,000,000		200		200
PSNH	PSNH	$	1	100,000,000		301		301		PSNH	$	1			100,000,000		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, ~~2022~~2023 and December 31, ~~2021,~~2022, there were ~~12,635,324~~10,708,298 and ~~13,415,206~~11,540,218 Eversource common shares held as treasury shares, respectively. As of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, there were ~~347,348,749~~349,275,775 and ~~344,403,196~~348,443,855 Eversource common shares outstanding, 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.~~acquisition. The issuance of treasury shares represents a non-cash transaction, as the treasury shares were used to fulfill Eversource's obligations that require the issuance of common shares.

~~Acquisition of Torrington Water Company:~~ On ~~October~~May 3, ~~2022, Aquarion acquired The Torrington Water Company (TWC) following~~2023, shareholders voted to increase the ~~receipt of all required approvals. The acquisition was structured as a stock-for-stock exchange, and Eversource issued 925,264 treasury~~authorized common shares ~~at closing for a purchase price of approximately $72 million. TWC provided regulated water service~~from 380,000,000 shares to ~~approximately 10,100 customers in Connecticut.~~410,000,000 shares.

13. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended September 30, ~~2022~~2023 and ~~2021~~2022 and $5.6 million for each of the nine months ended September 30, ~~2022~~2023 and ~~2021.~~2022. 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, ~~2022~~2023 and December 31, ~~2021.~~2022. 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. For the three and nine months ended September 30, ~~2022~~2023 and ~~2021,~~2022, there were no antidilutive share awards excluded from the computation of diluted EPS.

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


Eversource (Millions of Dollars, except share information)	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, 2022		September 30, 2021		September 30, 2022		September 30, 2021			September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	$	349.4	$	283.2	$	1,084.7	$	913.8	Net Income Attributable to Common Shareholders	$	339.7	$	349.4	$	846.2	$	1,084.7
Weighted Average Common Shares Outstanding:	Weighted Average Common Shares Outstanding:									Weighted Average Common Shares Outstanding:
Basic	Basic	347,297,411		344,023,846		346,115,823		343,848,905		Basic	349,704,155		347,297,411		349,461,219		346,115,823
Dilutive Effect	Dilutive Effect	465,282		645,936		457,278		631,151		Dilutive Effect	147,814		465,282		270,101		457,278
Diluted	Diluted	347,762,693		344,669,782		346,573,101		344,480,056		Diluted	349,851,969		347,762,693		349,731,320		346,573,101
Basic EPS	Basic EPS	$	1.01	$	0.82	$	3.13	$	2.66	Basic EPS	$	0.97	$	1.01	$	2.42	$	3.13
Diluted EPS	Diluted EPS	$	1.00	$	0.82	$	3.13	$	2.65	Diluted EPS	$	0.97	$	1.00	$	2.42	$	3.13

15. REVENUES

The following tables present operating revenues disaggregated by revenue source:


		For the Three Months Ended September 30, 2022															For the Three Months Ended September 30, 2023
Eversource (Millions of Dollars)	Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total		Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers	Revenues from Contracts with Customers															Revenues from Contracts with Customers
Retail Tariff Sales	Retail Tariff Sales															Retail Tariff Sales
Residential	Residential	$	1,492.9	$	94.7	$	—	$	45.7	$	—	$	—	$	1,633.3	Residential	$	1,375.9	$	83.0	$	—	$	44.7	$	—	$	—	$	1,503.6
Commercial	Commercial	890.5		76.7		—		18.5		—		(1.7)		984.0		Commercial	764.1		33.7		—		19.6		—		(1.1)		816.3
Industrial	Industrial	105.6		33.6		—		1.3		—		(5.2)		135.3		Industrial	94.5		30.2		—		1.2		—		(4.8)		121.1
Total Retail Tariff Sales Revenues	Total Retail Tariff Sales Revenues	2,489.0		205.0		—		65.5		—		(6.9)		2,752.6		Total Retail Tariff Sales Revenues	2,234.5		146.9		—		65.5		—		(5.9)		2,441.0
Wholesale Transmission Revenues	Wholesale Transmission Revenues	—		—		520.3		—		29.9		(416.3)		133.9		Wholesale Transmission Revenues	—		—		520.2		—		—		(386.6)		133.6
Wholesale Market Sales Revenues	Wholesale Market Sales Revenues	317.1		22.7		—		1.1		—		—		340.9		Wholesale Market Sales Revenues	154.9		71.6		—		1.1		—		—		227.6
Other Revenues from Contracts with Customers	Other Revenues from Contracts with Customers	17.3		0.6		3.4		2.1		313.6		(311.9)		25.1		Other Revenues from Contracts with Customers	20.9		1.3		4.8		2.0		394.7		(392.4)		31.3
Amortization of/(Reserve for) Revenues Subject to Refund (1)		7.0		—		—		(0.1)		—		—		6.9

Total Revenues from Contracts with Customers	Total Revenues from Contracts with Customers	2,830.4		228.3		523.7		68.6		343.5		(735.1)		3,259.4		Total Revenues from Contracts with Customers	2,410.3		219.8		525.0		68.6		394.7		(784.9)		2,833.5
Alternative Revenue Programs	Alternative Revenue Programs	(37.7)		(2.8)		(55.1)		(3.6)		—		52.6		(46.6)		Alternative Revenue Programs	(43.8)		(2.4)		(33.6)		(0.3)		—		31.9		(48.2)
Other Revenues ~~(2)~~	Other Revenues ~~(2)~~	2.4		0.1		0.2		0.1		—		—		2.8		Other Revenues ~~(2)~~	4.8		0.9		0.2		0.3		—		—		6.2
Total Operating Revenues	Total Operating Revenues	$	2,795.1	$	225.6	$	468.8	$	65.1	$	343.5	$	(682.5)	$	3,215.6	Total Operating Revenues	$	2,371.3	$	218.3	$	491.6	$	68.6	$	394.7	$	(753.0)	$	2,791.5

		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 Nine Months Ended September 30, 2023
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	$	3,982.1	$	858.0	$	—	$	112.6	$	—	$	—	$	4,952.7
Commercial	2,244.7		483.6		—		53.2		—		(3.4)		2,778.1
Industrial	268.5		141.7		—		3.4		—		(14.6)		399.0
Total Retail Tariff Sales Revenues	6,495.3		1,483.3		—		169.2		—		(18.0)		8,129.8
Wholesale Transmission Revenues	—		—		1,358.2		—		—		(1,015.6)		342.6
Wholesale Market Sales Revenues	484.4		160.5		—		2.9		—		—		647.8
Other Revenues from Contracts with Customers	60.1		3.9		14.1		6.1		1,217.3		(1,210.7)		90.8

Total Revenues from Contracts with Customers	7,039.8		1,647.7		1,372.3		178.2		1,217.3		(2,244.3)		9,211.0
Alternative Revenue Programs	(40.7)		21.9		57.6		(2.0)		—		(50.8)		(14.0)
Other Revenues	15.2		3.0		0.5		0.8		—		—		19.5
Total Operating Revenues	$	7,014.3	$	1,672.6	$	1,430.4	$	177.0	$	1,217.3	$	(2,295.1)	$	9,216.5


	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	2.4		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	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, 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						For the Three Months Ended September 30, 2021							For the Three Months Ended September 30, 2023						For the Three Months Ended September 30, 2022
(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	$	739.1	$	507.6	$	246.2	$	572.0	$	401.9	$	172.9	Residential	$	703.9	$	480.5	$	191.5	$	739.1	$	507.6	$	246.2
Commercial	Commercial	311.2		469.6		110.4		249.4		411.3		88.5		Commercial	286.4		389.4		88.7		311.2		469.6		110.4
Industrial	Industrial	41.9		39.3		24.4		35.0		35.9		25.3		Industrial	39.0		31.9		23.6		41.9		39.3		24.4
Total Retail Tariff Sales Revenues	Total Retail Tariff Sales Revenues	1,092.2		1,016.5		381.0		856.4		849.1		286.7		Total Retail Tariff Sales Revenues	1,029.3		901.8		303.8		1,092.2		1,016.5		381.0
Wholesale Transmission Revenues	Wholesale Transmission Revenues	250.3		183.8		86.2		268.2		171.0		88.0		Wholesale Transmission Revenues	245.1		186.4		88.7		250.3		183.8		86.2
Wholesale Market Sales Revenues	Wholesale Market Sales Revenues	232.9		57.5		26.7		100.3		21.3		12.2		Wholesale Market Sales Revenues	112.8		28.6		13.5		232.9		57.5		26.7
Other Revenues from Contracts with Customers	Other Revenues from Contracts with Customers	7.5		10.7		3.1		12.1		14.3		7.3		Other Revenues from Contracts with Customers	7.7		12.4		5.0		7.5		10.7		3.1
Amortization of/(Reserve for) Revenues Subject to Refund (1)		7.0		—		—		(93.4)		—		—
Amortization of Revenues Subject to Refund (1)														Amortization of Revenues Subject to Refund (1)	1.3		—		—		7.0		—		—
Total Revenues from Contracts with Customers	Total Revenues from Contracts with Customers	1,589.9		1,268.5		497.0		1,143.6		1,055.7		394.2		Total Revenues from Contracts with Customers	1,396.2		1,129.2		411.0		1,589.9		1,268.5		497.0
Alternative Revenue Programs	Alternative Revenue Programs	(65.1)		(20.5)		(7.2)		(82.0)		(14.4)		(24.1)		Alternative Revenue Programs	(49.3)		(29.0)		0.9		(65.1)		(20.5)		(7.2)
Other Revenues ~~(2)~~	Other Revenues ~~(2)~~	0.2		1.8		0.6		0.2		0.7		0.6		Other Revenues ~~(2)~~	2.4		1.9		0.7		0.2		1.8		0.6
Eliminations	Eliminations	(155.9)		(144.3)		(59.8)		(142.2)		(123.3)		(55.8)		Eliminations	(159.2)		(148.6)		(59.5)		(155.9)		(144.3)		(59.8)
Total Operating Revenues	Total Operating Revenues	$	1,369.1	$	1,105.5	$	430.6	$	919.6	$	918.7	$	314.9	Total Operating Revenues	$	1,190.1	$	953.5	$	353.1	$	1,369.1	$	1,105.5	$	430.6

		For the Nine Months Ended September 30, 2022						For the Nine Months Ended September 30, 2021							For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
(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	$	1,864.4	$	1,239.0	$	580.5	$	1,558.6	$	1,069.0	$	467.3	Residential	$	2,059.9	$	1,318.7	$	603.5	$	1,864.4	$	1,239.0	$	580.5
Commercial	Commercial	808.7		1,128.8		280.5		679.3		975.7		249.2		Commercial	836.7		1,121.0		287.5		808.7		1,128.8		280.5
Industrial	Industrial	111.4		104.0		68.7		100.2		89.5		71.4		Industrial	104.1		95.7		68.7		111.4		104.0		68.7
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		Total Retail Tariff Sales Revenues	3,000.7		2,535.4		959.7		2,784.5		2,471.8		929.7
Wholesale Transmission Revenues	Wholesale Transmission Revenues	575.2		512.7		213.1		652.8		478.2		207.4		Wholesale Transmission Revenues	613.3		521.0		223.9		575.2		512.7		213.1
Wholesale Market Sales Revenues	Wholesale Market Sales Revenues	656.3		163.1		75.8		278.1		64.7		37.3		Wholesale Market Sales Revenues	330.4		102.1		51.9		656.3		163.1		75.8
Other Revenues from Contracts with Customers	Other Revenues from Contracts with Customers	22.8		34.1		8.8		28.8		36.8		14.9		Other Revenues from Contracts with Customers	24.7		36.0		12.2		22.8		34.1		8.8
Amortization of/(Reserve for) Revenues Subject to Refund (1)		72.6		—		—		(93.4)		—		—
Amortization of Revenues Subject to Refund (1)														Amortization of Revenues Subject to Refund (1)	3.1		—		—		72.6		—		—
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		Total Revenues from Contracts with Customers	3,972.2		3,194.5		1,247.7		4,111.4		3,181.7		1,227.4
Alternative Revenue Programs	Alternative Revenue Programs	28.3		(14.4)		8.8		(74.2)		(11.3)		(18.8)		Alternative Revenue Programs	28.0		(43.5)		32.4		28.3		(14.4)		8.8
Other Revenues ~~(2)~~	Other Revenues ~~(2)~~	0.5		5.4		2.1		0.3		2.5		1.1		Other Revenues ~~(2)~~	7.1		6.3		2.3		0.5		5.4		2.1
Eliminations	Eliminations	(449.6)		(420.4)		(161.2)		(394.0)		(362.0)		(142.6)		Eliminations	(444.1)		(428.5)		(159.1)		(449.6)		(420.4)		(161.2)
Total Operating Revenues	Total Operating Revenues	$	3,690.6	$	2,752.3	$	1,077.1	$	2,736.5	$	2,343.1	$	887.2	Total Operating Revenues	$	3,563.2	$	2,728.8	$	1,123.3	$	3,690.6	$	2,752.3	$	1,077.1

(1) Amortization ofof/(Reserve for) Revenues Subject to Refund within the Electric Distribution segment in the third quarter and the first nine months of 2022 primarily represents the reversal of a 2021 reserve at CL&P established to provide bill credits to customers as a result of the settlement agreement on October 1, 2021 and a storm performance penalty assessed by PURA. The reserve was reversed as customer credits were distributed to CL&P’s customers in retail electric rates. Total customer credits as a result of the 2021 settlement and civil penalty were $93.4 million. The settlement amount of $65 million was refunded over a two-month billing period from December 1, 2021 to January 31, 2022 and the civil penalty of $28.4 million was refunded over a one year billing period, which began September 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 $1.0 million (including $0.2 million at CL&P and $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 $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) for the nine months ended September 30, 2022 and 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.~~fund that was liquidated in the first quarter of 2023.

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~~Purchased Natural Gas and Transmission on the Eversource statements of income.

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

Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred 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.

Eversource's segment information is as follows:


		For the Three Months Ended September 30, 2022															For the Three Months Ended September 30, 2023
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	$	2,795.1	$	225.6	$	468.8	$	65.1	$	343.5	$	(682.5)	$	3,215.6	Operating Revenues	$	2,371.3	$	218.3	$	491.6	$	68.6	$	394.7	$	(753.0)	$	2,791.5
Depreciation and Amortization	Depreciation and Amortization	(256.9)		(25.1)		(85.1)		(12.7)		(35.4)		1.8		(413.4)		Depreciation and Amortization	(0.7)		(38.0)		(94.5)		(13.9)		(40.7)		2.3		(185.5)
Other Operating Expenses	Other Operating Expenses	(2,261.5)		(226.3)		(143.7)		(28.8)		(265.7)		681.1		(2,244.9)		Other Operating Expenses	(2,124.0)		(211.1)		(144.9)		(30.9)		(315.7)		751.2		(2,075.4)
Operating Income/(Loss)	Operating Income/(Loss)	$	276.7	$	(25.8)	$	240.0	$	23.6	$	42.4	$	0.4	$	557.3	Operating Income/(Loss)	$	246.6	$	(30.8)	$	252.2	$	23.8	$	38.3	$	0.5	$	530.6
Interest Expense	Interest Expense	$	(64.5)	$	(18.8)	$	(36.6)	$	(8.7)	$	(69.6)	$	20.0	$	(178.2)	Interest Expense	$	(76.8)	$	(19.7)	$	(43.0)	$	(9.8)	$	(111.4)	$	38.4	$	(222.3)

Other Income, Net	Other Income, Net	59.6		11.1		10.1		2.1		429.9		(423.0)		89.8		Other Income, Net	53.5		9.2		11.9		1.3		415.9		(412.7)		79.1
Net Income/(Loss) Attributable to Common Shareholders	Net Income/(Loss) Attributable to Common Shareholders	225.1		(24.6)		155.8		16.7		379.0		(402.6)		349.4		Net Income/(Loss) Attributable to Common Shareholders	173.3		(33.7)		160.3		16.6		397.0		(373.8)		339.7

		For the Nine Months Ended September 30, 2022															For the Nine Months Ended September 30, 2023
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	$	7,185.8	$	1,569.4	$	1,361.6	$	168.2	$	1,062.7	$	(2,088.1)	$	9,259.6	Operating Revenues	$	7,014.3	$	1,672.6	$	1,430.4	$	177.0	$	1,217.3	$	(2,295.1)	$	9,216.5
Depreciation and Amortization	Depreciation and Amortization	(806.7)		(116.2)		(250.3)		(37.5)		(98.8)		5.1		(1,304.4)		Depreciation and Amortization	59.3		(156.7)		(276.4)		(41.3)		(115.5)		6.6		(524.0)
Other Operating Expenses	Other Operating Expenses	(5,743.2)		(1,244.3)		(414.3)		(82.9)		(876.5)		2,081.9		(6,279.3)		Other Operating Expenses	(6,371.4)		(1,280.8)		(409.4)		(87.5)		(992.6)		2,290.0		(6,851.7)
Operating Income	Operating Income	$	635.9	$	208.9	$	697.0	$	47.8	$	87.4	$	(1.1)	$	1,675.9	Operating Income	$	702.2	$	235.1	$	744.6	$	48.2	$	109.2	$	1.5	$	1,840.8
Interest Expense	Interest Expense	$	(184.2)	$	(51.2)	$	(107.3)	$	(25.2)	$	(169.9)	$	46.3	$	(491.5)	Interest Expense	$	(214.4)	$	(62.4)	$	(126.7)	$	(28.4)	$	(297.0)	$	104.8	$	(624.1)
Impairment of Offshore Wind Investment																Impairment of Offshore Wind Investment	—		—		—		—		(401.0)		—		(401.0)
Other Income, Net	Other Income, Net	160.1		31.9		28.3		6.4		1,280.1		(1,251.5)		255.3		Other Income, Net	155.7		27.9		30.8		4.0		1,082.6		(1,038.0)		263.0
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	495.0		147.2		455.8		29.4		1,163.6		(1,206.3)		1,084.7		Net Income Attributable to Common Shareholders	504.3		148.2		476.4		27.4		621.6		(931.7)		846.2
Cash Flows Used for Investments in Plant	Cash Flows Used for Investments in Plant	823.9		424.5		823.3		103.4		177.6		—		2,352.7		Cash Flows Used for Investments in Plant	1,230.3		536.8		1,011.3		140.1		207.1		—		3,125.6


		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

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, 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 (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
As of September 30, 2023	$	28,840.9	$	8,404.5	$	14,693.4	$	2,885.1	$	29,019.0	$	(27,549.6)	$	56,293.3
As of December 31, 2022	27,365.0		8,084.9		13,369.5		2,783.8		26,365.2		(24,737.5)		53,230.9

4139

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 Reports on Form 10-Q for the quarters ended March 31, ~~2022~~2023 and June 30, ~~2022,~~2023, as well as the Eversource ~~2021~~2022 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. Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our earnings and EPS excluding the impairment charge for the offshore wind investment, a loss on the disposition of land that was initially acquired to construct the Northern Pass Transmission project and was subsequently abandoned, and certain transaction and transition costs. EPS by business is also a non-GAAP financial measure 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. 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) 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 an October 2021 settlement agreement that included credits to customers and funding of various customer assistance initiatives and a 2021 storm performance penalty imposed on CL&P by the PURA.

We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our ~~2022 and 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 the impairment charge for the offshore wind investment, the loss on the disposition of land associated with an abandoned project, and transaction and transition costs ~~the CL&P October 2021 settlement agreement, and the 2021 storm performance penalty imposed on CL&P by the PURA,~~ are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.

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 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,

• the ability to sell Eversource’s 50 percent interest in three offshore wind projects under development on the timeline we expect, to satisfy the investment tax credit qualifications related to the tax equity investment in the South Fork Wind project, the ability of the Revolution Wind and Sunrise Wind projects to qualify for the investment tax credit adders, and to successfully rebid the Sunrise Wind OREC contract at an increased value,

• 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 ~~2021~~2022 combined Annual Report on Form 10-K. This combined Quarterly Report on Form 10-Q and Eversource's ~~2021~~2022 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 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 $339.7 million, or $0.97 per share, in the third quarter of 2023, and $846.2 million, or $2.42 per share, in the first nine months of 2023, compared with $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,~~2022. Results for the first nine months of 2023 include an after-tax impairment charge of $331.0 million or $0.95 per share, related to our offshore wind investment recorded at Eversource parent. Our results also include after-tax transaction, transition and other charges recorded at Eversource parent of $6.9 million in the first nine months of 2023, compared with ~~$283.2~~$13.0 million ~~or $0.82 per share,~~in the first nine months of 2022 and $2.2 million in the third quarter of ~~2021,~~2022. Excluding the offshore wind impairment and ~~$913.8 million,~~these other charges, our non-GAAP earnings were $1.18 billion, or ~~$2.65~~$3.38 per share, in the first nine months of ~~2021.~~

•Our results include after-tax transaction and transition costs recorded at Eversource parent of $2.2 million, or $0.01 per share, in the third quarter of 2022, and $13.0 million, or $0.04 per share, in the first nine months of 2022,2023, 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 a charge resulting from a PURA-approved CL&P settlement agreement and our first nine months of 2021 results also include a charge at CL&P resulting from a PURA assessment as a result of CL&P’s preparation for and response to Tropical Storm Isaias in August 2020. These after-tax charges at CL&P were recorded within the electric distribution segment and totaled $63.2 million, or $0.19 per share, in the third quarter of 2021, and $85.8 million, or $0.25 per share, in the first nine months of 2021. Excluding these costs, our non-GAAP earnings were $351.6 million, or $1.01 per share, in the third quarter of 2022, and $1.10 billion, or $3.17 per share, in the first nine months of 2022 ~~compared with $350.7~~and $351.6 million, or ~~$1.02~~$1.01 per share, in the third quarter of ~~2021, and $1.02 billion, or $2.95 per share, in the first nine months of 2021.~~2022.

•We narrowed our projection to earn within a 2023 non-GAAP EPS guidance range of $4.30 per share to $4.43 per share, which excludes the impact of the expected sale of our offshore wind investment portfolio and associated impairment charge, the loss on disposition of land, and transaction costs. We also reaffirmed our projection of our long-term EPS growth rate through ~~2026~~2027 from our regulated utility businesses in the upper half of the 5 to 7 percent range.~~We estimate that we will earn within a 2022 non-GAAP earnings guidance range of between $4.04 per share and $4.14 per share, which excludes the impact of transaction and transition costs.~~

Liquidity:

•Cash flows provided by operating activities totaled $1.17 billion in the first nine months of 2023, compared with $1.69 billion in the first nine months of ~~2022, compared with $1.52~~2022. Investments in property, plant and equipment totaled $3.13 billion in the first nine months of ~~2021. Investments in property, plant and equipment totaled~~2023, compared with $2.35 billion in the first nine months of ~~2022, compared with $2.21 billion in the first nine months of 2021.~~2022.

•Cash and Cash Equivalents totaled ~~$485.7~~$78.8 million as of September 30, ~~2022,~~2023, compared with ~~$66.8~~$374.6 million as of December 31, ~~2021.~~2022. Our available borrowing capacity under our commercial paper programs totaled ~~$2.25~~$1.12 billion as of September 30, ~~2022.~~2023.

•In the first nine months of ~~2022,~~2023, we issued ~~$4.05~~$4.34 billion of new long-term debt and we repaid ~~$775 million~~$1.20 billion of long-term debt.

•~~In the first nine months of 2022, we issued 2,165,671 common shares, which resulted in proceeds of $197.1 million, net of issuance costs.~~

•On September ~~16, 2022,~~14, 2023, our Board of Trustees approved a common share dividend payment of ~~$0.6375~~$0.675 per share, paid on September ~~30, 2022~~29, 2023 to shareholders of record as of September ~~26, 2022.~~25, 2023.

Strategic Developments:

•On September 7, 2023, Eversource completed the sale of its 50 percent interest in an uncommitted lease area consisting of approximately 175,000 developable acres located 25 miles off the south coast of Massachusetts to Ørsted for $625 million in an all-cash transaction. In September of 2023, Eversource and Ørsted executed a Tax Equity Capital Contribution Agreement for South Fork Wind and funded this tax equity investment. Eversource made a contribution of $528 million using the proceeds from the lease area sale to provide tax equity for South Fork Wind through a new tax equity member interest. Eversource continues to progress towards completion of the sales process for the three contracted offshore wind projects.

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,
		2022				2021				2022				2021					2023				2022				2023				2022
(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)	$	349.4	$	1.00	$	283.2	$	0.82	$	1,084.7	$	3.13	$	913.8	$	2.65	Net Income Attributable to Common Shareholders (GAAP)	$	339.7	$	0.97	$	349.4	$	1.00	$	846.2	$	2.42	$	1,084.7	$	3.13

Regulated Companies (Non-GAAP)		$	373.0	$	1.07	$	348.5	$	1.01	$	1,127.4	$	3.26	$	1,023.2	$	2.97
Regulated Companies																		Regulated Companies	$	316.5	$	0.91	$	373.0	$	1.07	$	1,156.3	$	3.30	$	1,127.4	$	3.26
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)		Eversource Parent and Other Companies (Non-GAAP)	23.2		0.06		(21.4)		(0.06)		27.8		0.08		(29.7)		(0.09)
Non-GAAP Earnings	Non-GAAP Earnings	$	351.6	$	1.01	$	350.7	$	1.02	$	1,097.7	$	3.17	$	1,016.9	$	2.95	Non-GAAP Earnings	$	339.7	$	0.97	$	351.6	$	1.01	$	1,184.1	$	3.38	$	1,097.7	$	3.17
CL&P Settlement Impacts (after-tax) (1)		—		—		(63.2)		(0.19)		—		—		(85.8)		(0.25)
Transaction and Transition Costs (after-tax) (2)		(2.2)		(0.01)		(4.3)		(0.01)		(13.0)		(0.04)		(17.3)		(0.05)
Impairment of Offshore Wind Investment (after-tax) (1)																		Impairment of Offshore Wind Investment (after-tax) (1)	—		—		—		—		(331.0)		(0.95)		—		—
Loss on Land Disposition (after-tax) (2)																		Loss on Land Disposition (after-tax) (2)	—		—		—		—		(4.8)		(0.01)		—		—
Transaction and Transition Costs (after-tax) (3)																		Transaction and Transition Costs (after-tax) (3)	—		—		(2.2)		(0.01)		(2.1)		—		(13.0)		(0.04)
Net Income Attributable to Common Shareholders (GAAP)	Net Income Attributable to Common Shareholders (GAAP)	$	349.4	$	1.00	$	283.2	$	0.82	$	1,084.7	$	3.13	$	913.8	$	2.65	Net Income Attributable to Common Shareholders (GAAP)	$	339.7	$	0.97	$	349.4	$	1.00	$	846.2	$	2.42	$	1,084.7	$	3.13

(1) ~~The 2021 after-tax costs are~~In the second quarter of 2023, Eversource recorded an impairment charge associated with its equity method investment in its offshore wind business resulting from the October 1, 2021 CL&P settlement agreement approved by PURA on October 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 that provided bill payment assistance 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 a charge recorded at CL&P as a result of PURA’s April 28, 2021 and July 14, 2021 decisions, which included a $28.4 million penalty for storm performance 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 resultcompletion of the ~~October 1, 2021 settlement agreement, CL&P agreed to withdraw~~strategic review of 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.offshore wind investment portfolio.

(2) In the second quarter of 2023, Eversource recorded a loss on the disposition of land. The ~~after-tax~~land was initially acquired to construct the Northern Pass Transmission project and was subsequently abandoned.

(3) The transaction costs are for the expected sale of our offshore wind investment portfolio and our water business acquisitions. The costs in 2022 also include costs associated with 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 assets onto Eversource’s systems. ~~The after-tax costs also include costs associated with our water business 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,
2022 2021 2022 2021
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share Amount Per Share
Net Income - Regulated Companies (GAAP) $ 373.0 $ 1.07 $ 285.3 $ 0.82 $ 1,127.4 $ 3.26 $ 937.4 $ 2.72
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 155.8 0.44 139.4 0.40 455.8 1.32 412.4 1.20
Natural Gas Distribution (24.6) (0.07) (22.0) (0.06) 147.2 0.42 129.6 0.37
Water Distribution 16.7 0.05 17.5 0.05 29.4 0.09 30.0 0.09
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) — — (63.2) (0.19) — — (85.8) (0.25)
Net Income - Regulated Companies (GAAP) $ 373.0 $ 1.07 $ 285.3 $ 0.82 $ 1,127.4 $ 3.26 $ 937.4 $ 2.72


	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2023				2022				2023				2022
(Millions of Dollars, Except Per Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share


Electric Distribution	$	173.3	$	0.50	$	225.1	$	0.65	$	504.3	$	1.44	$	495.0	$	1.43
Electric Transmission	160.3		0.46		155.8		0.44		476.4		1.36		455.8		1.32
Natural Gas Distribution	(33.7)		(0.10)		(24.6)		(0.07)		148.2		0.42		147.2		0.42
Water Distribution	16.6		0.05		16.7		0.05		27.4		0.08		29.4		0.09


Net Income - Regulated Companies	$	316.5	$	0.91	$	373.0	$	1.07	$	1,156.3	$	3.30	$	1,127.4	$	3.26

Our electric distribution segment earnings ~~increased $74.7~~decreased $51.8 million in the third quarter of ~~2022,~~2023, as compared to the third quarter of ~~2021,~~2022, due primarily to lower revenues at NSTAR Electric as a result of a rate design change approved by the ~~absence~~DPU in the 2022 rate case that shifted the recovery of CL&P’s October 1, 2021 settlement agreement that resulted in a $75 million pre-tax charge to earnings recorded in 2021. The after-tax impact of the CL&P settlement agreement was $63.2 million, or $0.19 per share. Excluding that 2021 charge, electric distribution segment earnings increased $11.5 millionquarterly revenues, higher operations and maintenance expense due primarily to higher storm-related costs, a ~~base distribution~~higher effective tax rate, ~~increase at NSTAR Electric effective January 1, 2022,~~higher interest expense, higher depreciation expense, and higher property and other tax expense. Those earnings decreases were partially offset by higher earnings from CL&P's capital tracking mechanism due to increased electric system improvements, a ~~lower~~base distribution rate increase effective ~~tax rate resulting from the~~January 1, 2023 at NSTAR Electric, and an increase in interest 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 increases were partially offset by higher operations and maintenance expense driven primarily by higher insurance reserves and higher shared corporate costs resulting from the implementation of new information technology systems, higher property and other tax expense, and higher depreciation expense.on regulatory deferrals.

As part of the 2022 NSTAR Electric rate case decision, certain customer rates changed from seasonal demand charges to a single annual demand charge effective January 1, 2023, resulting in a shift in the timing of revenues and earnings recognized quarterly in 2023, as compared to 2022, but with no impact on an annual basis. This rate design change will result in higher revenues in each of the first and fourth quarters of 2023 of approximately $21 million, offset by lower revenues in the third quarter of 2023 of approximately $42 million, as compared to the same periods in 2022.

Our electric distribution segment earnings increased ~~$129.6~~$9.3 million in the first nine months of ~~2022,~~2023, as compared to the first nine months of ~~2021, due primarily to the absence in~~ 2022, of CL&P’s October 1, 2021 settlement agreement that resulted in a $75 million pre-tax charge to earnings and a $28.6 million pre-tax charge to earnings at CL&P for 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 2021. The after-tax impact of the CL&P settlement agreement and CL&P storm performance penalty imposed by the PURA was $85.8 million, or $0.25 per share. Excluding those 2021 charges, electric distribution segment earnings increased $43.8 million due primarily to a base distribution rate increase ~~at NSTAR Electric~~ effective January 1, ~~2022,~~2023 at NSTAR Electric, higher earnings from CL&P's capital tracking mechanism due to increased electric system improvements, ~~lower pension plan expense in Connecticut and New Hampshire,~~the impact of a ~~lower effective tax rate resulting from~~new regulatory tracking mechanism at PSNH that allows for the ~~income tax return to provision adjustment in the third quarter and a decrease in permanent and flow-through income tax items, and~~recovery of previously incurred operating expenses associated with poles acquired on May 1, 2023, an increase in interest income primarily on regulatory ~~deferrals.~~deferrals, and higher AFUDC equity income. Those earnings increases were partially offset by higher interest expense, higher operations and maintenance expense, ~~driven primarily~~lower revenues at NSTAR Electric as a result of a rate design change approved by ~~higher insurance reserves and higher shared corporate costs resulting from~~ the ~~implementation~~DPU in the 2022 rate case that shifted the recovery of ~~new information technology systems, higher depreciation expense,~~quarterly revenues, higher property and other tax expense, higher depreciation expense, and a higher ~~interest expense.~~effective tax rate.

Our electric transmission segment earnings increased ~~$16.4~~$4.5 million and ~~$43.4~~$20.6 million in the third quarter and the first nine months of ~~2022,~~2023, respectively, as compared to the third quarter and the first nine months of ~~2021,~~2022, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Our natural gas distribution segment ~~earnings had an~~loss increased ~~loss of $2.6~~$9.1 million in the third quarter of ~~2022,~~2023, as compared to the third quarter of ~~2021,~~2022, due primarily to an unfavorable regulatory adjustment resulting from NSTAR Gas’ GSEP reconciliation filing, higher depreciation expense, higher operations and maintenance expense, and a higher ~~property~~effective tax ~~expense, and higher depreciation expense,~~rate, partially offset by higher earnings from capital tracking mechanisms due to continued investments in natural gas infrastructure ~~higher revenues from base distribution rate increases at EGMA and NSTAR Gas effective November 1, 2021,~~ and lower ~~pension plan expense at Yankee Gas.~~property tax expense.

Our natural gas distribution segment earnings increased ~~$17.6~~$1.0 million in the first nine months of ~~2022,~~2023, as compared to the first nine months of ~~2021,~~2022, due primarily to ~~base distribution rate increases at EGMA and NSTAR Gas effective November 1, 2021,~~ higher earnings from capital tracking mechanisms due to continued investments in natural gas infrastructure, base distribution rate increases effective November 1, 2022 at NSTAR Gas and EGMA, an increase in interest income primarily on regulatory deferrals, and lower ~~pension plan expense at Yankee Gas.~~operations and maintenance expense. Those earnings increases were partially offset by higher ~~operations~~depreciation expense, an unfavorable regulatory adjustment resulting from NSTAR Gas’ GSEP reconciliation filing, a higher effective tax rate, higher interest expense, and ~~maintenance expense,~~ 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 ~~$0.8~~$0.1 million and ~~$0.6~~$2.0 million in the third quarter and the first nine months of ~~2022,~~2023, respectively, as compared to the third quarter and the first nine months of ~~2021.~~2022. Lower first nine months earnings were due primarily to higher operations and maintenance expense and higher interest expense.

Eversource Parent and Other Companies: Eversource parent and other companies’ ~~losses~~earnings increased ~~$21.5 million and $19.1~~$46.8 million in the third quarter of 2023, as compared to the third quarter of 2022, due primarily to a lower effective tax rate as a result of the ability to utilize tax credits and benefits, partially offset by higher interest expense.

Eversource parent and other companies’ losses increased $267.4 million in the first nine months of 2023, as compared to the first nine months of 2022, ~~respectively, as compared~~due primarily to the ~~third~~impairment of Eversource Parent’s offshore wind investment in the second quarter ~~and first nine months~~ of ~~2021. Higher losses~~2023, which resulted in ~~both periods~~an after-tax charge of $331.0 million, or $0.95 per share. Earnings were ~~due primarily to~~also unfavorably impacted by higher interest expense and a ~~higher~~loss on the disposition of land in the second quarter of 2023 that was initially acquired to construct the Northern Pass Transmission project and was subsequently abandoned. Earnings benefited by a lower effective tax rate ~~driven by~~as a result of the ~~income~~ability to utilize tax ~~return to provision adjustment~~credits and benefits in the third quarter ~~partially offset by higher return at Eversource Service~~of 2023, as well as a ~~result~~decrease in after-tax transaction and transition costs of ~~increased investments in property, plant and equipment, and after-tax decreases of $2.1 million and $4.3~~$10.9 million in ~~transition costs associated with EGMA integration and transaction costs in~~ the ~~third quarter and~~ first nine months of ~~2022, respectively,~~2023, as compared to the ~~same periods~~first nine months of 2022. Additionally, earnings were favorably impacted by a benefit in ~~2021. The nine-month period also benefited~~both the first and second quarters of 2023 from ~~higher unrealized gains associated with our~~the liquidation of Eversource Parent’s equity method investment in a renewable energy ~~fund.~~fund, partially offset by a charitable contribution made with a portion of the proceeds from the liquidation in the first quarter of 2023.

~~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 interest cost component and 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 our pension expense that relates to company labor devoted to capital projects is capitalized on the balance sheet instead of being charged to expense.

~~Impact of COVID-19~~

The current and expected future financial impacts of COVID-19 as it relates to our businesses primarily relate to collectability of customer receivables and customer payment plans and 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, 2022, our allowance for uncollectible customer receivable balance of $457.6 million, of which $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. As of September 30, 2022 and December 31, 2021, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $55.5 million and $55.3 million at Eversource, $19.7 million and $23.9 million at CL&P, and $4.1 million and $9.0 million at NSTAR Electric, respectively. At our Connecticut and Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates. 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 regulatory dockets, policies and practices in the jurisdictions in which we operate, we believe the state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental uncollectible customer receivable costs associated with COVID-19.

As of September 30, 2022 and December 31, 2021, a total of $34.6 million and $33.0 million, respectively, of incremental COVID-19 related non-tracked uncollectible costs were recorded on the balance 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 (including timing of storm costs and regulatory recoveries), 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 ~~$485.7~~$78.8 million as of September 30, ~~2022,~~2023, compared with ~~$66.8~~$374.6 million as of December 31, 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, 2022		December 31, 2021			September 30, 2022	December 31, 2021			September 30, 2022				December 31, 2021			September 30, 2023				December 31, 2022				September 30, 2023				December 31, 2022				September 30, 2023				December 31, 2022
(Millions of Dollars)	(Millions of Dollars)									(Millions of Dollars)
Eversource Parent Commercial Paper Program	Eversource Parent Commercial Paper Program	$	401.5		$	1,343.0		$	1,598.5				$	657.0						3.34	%			0.31	%	Eversource Parent Commercial Paper Program		$	1,320.3			$	1,442.2			$	679.7			$	557.8	5.53	%	4.63	%
NSTAR Electric Commercial Paper Program	NSTAR Electric Commercial Paper Program	—		162.5			650.0	487.5			—	%			0.14	%	NSTAR Electric Commercial Paper Program		209.5				—				440.5				650.0				5.35		%		—		%

There were no borrowings outstanding on the revolving credit facilities as of September 30, ~~2022~~2023 or December 31, ~~2021.~~2022.

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

~~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~~

(Millions of Dollars)

Interest Rate

Issuance/(Repayment)

Issue Date or Repayment Date

Maturity Date

Use of Proceeds for Issuance/
Repayment Information

CL&P 2023 Series A First Mortgage Bonds

5.25

500.0

January 2023

January 2053

Repaid 2013 Series A Bonds at maturity and short-term debt, and paid capital expenditures and working capital

CL&P 2013 Series A First Mortgage Bonds

2.50

(400.0)

January 2023

Paid at maturity

CL&P 2023 Series B First Mortgage Bonds

4.90

300.0

July 2023

July 2033

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

NSTAR Electric 2023 Debentures

5.60

150.0

September 2023

October 2028

Repay Series G Senior Notes at maturity and short-term debt and for general corporate purposes

PSNH Series W First Mortgage Bonds

5.15

300.0

January 2023

January 2053

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

PSNH Series X First Mortgage Bonds

5.35

300.0

September 2023

October 2033

Repaid Series S Bonds at maturity and for general corporate purposes

PSNH Series S First Mortgage Bonds

3.50

(325.0)

November 2023

Paid at maturity

Eversource Parent Series Z Senior Notes

5.45

750.0

March 2023

March 2028

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

Eversource Parent Series F Senior Notes

2.80

(450.0)

May 2023

Paid at maturity

Eversource Parent Series Z Senior Notes

5.45

550.0

May 2023

March 2028

Repay Series T Senior Notes and Series N Senior Notes at maturity and short-term debt

Eversource Parent Series AA Senior Notes

4.75

450.0

May 2023

May 2026

Repay Series T Senior Notes and Series N Senior Notes at maturity and short-term debt

Eversource Parent Series BB Senior Notes

5.125

800.0

May 2023

May 2033

Repay Series T Senior Notes and Series N Senior Notes at maturity and short-term debt

Eversource Parent Variable Rate Series T Senior Notes

SOFR plus 0.25%

(350.0)

August 2023

Paid at maturity

Yankee Gas Series V First Mortgage Bonds

5.51

170.0

August 2023

August 2030

Repaid short-term debt and general corporate purposes

Aquarion Water Company of Connecticut Senior Notes

5.89

50.0

September 2023

October 2043

Repaid existing indebtedness, paid capital expenditures and general corporate purposes

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 $16.2 million of interest payments in the first nine months of 2023, and 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.~~2022.

~~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.~~

Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas and water. Cash flows provided by operating activities totaled $1.17 billion in the first nine months of 2023, compared with $1.69 billion in the first nine months of 2022, compared with $1.52 billion in the first nine months of 2021. Changes in Eversource’s cash flows from operations were generally consistent with changes in its results of operations, as adjusted by changes in working capital in the normal course of business and as further discussed.2022. Operating cash flows were ~~favorably~~unfavorably impacted by an increase in regulatory ~~over-recoveries (excluding storm payments)~~under-recoveries driven primarily by the timing of collections for the CL&P non-bypassable FMCC ~~at CL&P~~ and other regulatory tracking mechanisms, the timing of cash payments made on our accounts payable and the timing of other working capital items. In 2023, CL&P increased the flow back to customers of net revenues generated by long-term state-approved energy contracts by providing these credits to customers through the non-bypassable FMCC retail rate. The reduction in the CL&P non-bypassable FMCC retail rate decreased the regulatory over-recovery balance, which resulted in a decrease to amortization expense of ~~$60.0~~$717.3 million in ~~pension contributions made in 2022,~~the first nine months of 2023, as compared to ~~2021,~~the first nine months of 2022, and is presented as a ~~$51.7 million decrease~~cash outflow in ~~income tax payments made in 2022, as compared to 2021.~~Amortization on the statement of cash flows. The impact of regulatory collections are included in both Regulatory ~~Over/Under~~ Recoveries and Amortization on the statements of cash flows. These ~~favorable~~unfavorable impacts were partially offset by ~~an increase of $163.7 million in cash payments for storm costs at CL&P and NSTAR Electric, a $146.0 million increase in cost of removal expenditures,~~ the timing of cash collections on our accounts receivable, ~~a $76.1~~the absence in 2023 of $78.4 million ~~payment~~of payments in ~~the second quarter of~~ 2022 related to withheld property taxes at ~~NSTAR Electric, and~~our Massachusetts companies, a decrease of $75.0 million in pension contributions made in 2023 compared to 2022, the absence in 2023 of $72.0 million of customer credits distributed toin 2022 at CL~~&P’s customers in the first nine months of 2022~~&P as a result of the October 2021 settlement agreement and the 2021 storm performance penalty for CL&P’s response to Tropical Storm ~~Isaias.~~Isaias, a $54.2 million increase in operating cash flows due to income tax refunds received in 2023 compared to income tax payments in 2022, a decrease in cost of removal expenditures and a $12.7 million decrease in cash payments for storm costs.

On September ~~16, 2022,~~14, 2023, our Board of Trustees approved a common share dividend payment of ~~$0.6375~~$0.675 per share, paid on September ~~30, 2022~~29, 2023 to shareholders of record as of September ~~26, 2022.~~25, 2023. In the first nine months of 2023, we paid cash dividends of $688.9 million and issued non-cash dividends of $17.6 million in the form of treasury shares, totaling dividends of $706.5 million. 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 ~~2022,~~2023, CL&P, NSTAR Electric and PSNH paid ~~$219.3~~$247.8 million, ~~$215.7~~$327.4 million, and ~~$78.0~~$112.0 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 ~~2022,~~2023, investments for Eversource, CL&P, NSTAR Electric, and PSNH were ~~$2.35~~$3.13 billion, ~~$609.0~~$797.3 million, ~~$691.9 million,~~$1.01 billion, and ~~$346.3~~$431.9 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.

Investments in Unconsolidated Affiliates within investing activities on the statements of cash flows includes proceeds received from the liquidation of an equity method investment in a renewable energy investment fund of $147.0 million and proceeds received from the sale of an uncommitted lease area in our offshore wind business of $625 million in the first nine months of 2023.

On October 16, 2023, Eversource received a $318 million distribution from its offshore wind investment, primarily as a result of being a 50 percent joint owner in South Fork Wind, which was restructured as a tax equity investment. This distribution was used to pay down short-term debt.

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 Eversource ~~2021~~2022 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 requirements from contractual obligations. Other than as described in the footnote, thereThere have been no material changes to our cash requirements from contractual obligations and payment schedules previously disclosed in our ~~2021~~2022 Form 10-K.

Credit Ratings: On September ~~9, 2022, Moody’s~~14, 2023, S&P changed Eversource parent’s and NSTAR Electric’s outlook from positive to stable and CL&P’s outlook from stable to negative. On October 26, 2023, S&P changed Eversource parent’s, NSTAR Electric’s, and PSNH’s outlook from stable to negative. On October 27, 2023, Fitch changed Eversource parent’s and NSTAR Electric’s outlook from stable to negative. On October 27, 2023, Moody’s downgraded the ratings on Eversource parent and NSTAR Electric and revised the outlooks from negative to stable.

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

S&P

Moody's

Fitch

Current

Outlook

Current

Outlook

Current

Outlook

Eversource Parent

A-

Negative

Baa2

Stable

BBB+

Negative

CL&P

Negative

Stable

A-

Stable

NSTAR Electric

Negative

Stable

Negative

PSNH

Negative

Stable

A-

Stable

A summary of the current credit ratings by S&P, Moody's, and Fitch for senior unsecured debt of Eversource parent and NSTAR Electric, and senior secured debt of CL&P and PSNH is as follows:

S&P

Moody’s

Fitch

Eversource Parent

BBB+

Baa2

BBB+

CL&P

A+

NSTAR Electric

A+

PSNH

A+

Impact of COVID-19

The financial impacts of COVID-19 as it relates to our businesses primarily relate to collectability of customer receivables and the outcome of future proceedings before our state regulatory commissions to recover our incremental uncollectible customer receivable costs associated with COVID-19. As of both September 30, 2023 and December 31, 2022, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $50.9 million at Eversource, $16.0 million at CL&P, and $4.1 million at NSTAR Electric. At our Connecticut and Massachusetts utilities, the COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs, as management believes it is probable that these costs will ultimately be recovered from customers in future rates.

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 $3.21 billion in the first nine months of 2023, compared to $2.52 billion in the first nine months of ~~2022, compared to $2.29 billion in the first nine months of 2021.~~2022. These amounts included $~~177.3~~172.3 million and ~~$161.2~~$177.3 million in the first nine months of ~~2022~~2023 and ~~2021,~~2022, 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 increased by ~~$116.5~~$154.8 million in the first nine months of ~~2022,~~2023, as compared to the first nine months of ~~2021.~~2022. 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)	2022		2021		(Millions of Dollars)	2023		2022
CL&P	CL&P	$	284.4	$	242.4	CL&P	$	282.1	$	284.4
NSTAR Electric	NSTAR Electric	283.0		316.1		NSTAR Electric	388.3		283.0
PSNH	PSNH	231.3		123.7		PSNH	283.1		231.3
Total Electric Transmission Segment		$	798.7	$	682.2
Total Electric Transmission						Total Electric Transmission	$	953.5	$	798.7

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, our transmission projects include transmission line upgrades, the installation of new transmission interconnection facilities, ~~transmission~~ substations and lines, and transmission substation enhancements.

Our transmission projects in Massachusetts include electric transmission upgrades in the greater Boston metropolitan area. Two of these upgrades, the Mystic-Woburn and the Wakefield-Woburn reliability projects, are under construction and are expected to be placed in service by the fourth quarter of 2023. Construction on the last remaining upgrade, the Sudbury-Hudson Reliability Project, ~~is expected to commence~~commenced in the fourth quarter of 2022. We spent ~~$38.1~~$83 million during the first nine months of ~~2022~~2023 and we expect to make additional capital expenditures of approximately ~~$145~~$170 million on these remaining transmission upgrades. There are also several transmission projects 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. We spent $11.1 million during the first nine months of 2022 and we expect to make additional capital expenditures of approximately $120 million on these transmission upgrades.

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, 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 currently expected to be 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
2023																2023
Basic Business																Basic Business	$	209.4	$	271.3	$	60.5	$	541.2	$	145.9	$	11.8	$	698.9
Aging Infrastructure																Aging Infrastructure	194.2		216.6		72.3		483.1		507.8		99.4		1,090.3
Load Growth and Other																Load Growth and Other	88.0		136.3		22.9		247.2		46.3		0.5		294.0
Total Distribution																Total Distribution	$	491.6	$	624.2	$	155.7	$	1,271.5	$	700.0	$	111.7	$	2,083.2
2022	2022															2022
Basic Business	Basic Business	$	186.6	$	118.3	$	40.2	$	345.1	$	135.6	$	9.5	$	490.2	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		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		Load Growth and Other	39.9		122.0		20.5		182.4		43.2		0.7		226.3
Total Distribution	Total Distribution	377.2		399.8		107.8		884.8		557.6		97.6		1,540.0		Total Distribution	$	377.2	$	400.0	$	107.8	$	885.0	$	557.6	$	97.6	$	1,540.2
Solar		—		0.2		—		0.2		—		—		0.2
Total		$	377.2	$	400.0	$	107.8	$	885.0	$	557.6	$	97.6	$	1,540.2
2021
Basic Business		$	160.2	$	111.7	$	39.5	$	311.4	$	140.8	$	11.0	$	463.2
Aging Infrastructure		110.5		162.7		44.3		317.5		358.3		77.7		753.5
Load Growth and Other		51.2		108.5		15.2		174.9		59.0		0.5		234.4
Total Distribution		321.9		382.9		99.0		803.8		558.1		89.2		1,451.1
Solar		—		(0.7)		—		(0.7)		—		—		(0.7)
Total		$	321.9	$	382.2	$	99.0	$	803.1	$	558.1	$	89.2	$	1,450.4

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.

~~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.

Offshore Wind Business:Our offshore wind business includes a 50 percent ownership ~~interest~~interests in ~~North East Offshore,~~wind partnerships, which ~~holds~~collectively hold PPAs ~~and contracts~~ for the Revolution Wind and South Fork Wind ~~and~~projects, an OREC contract for the Sunrise Wind ~~projects, as well as an undeveloped offshore lease area.~~project, and a tax equity investment in South Fork Wind. Our offshore wind projects are being developed and constructed through a joint and equal ~~partnership~~partnerships with Ørsted.

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.

As of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, Eversource's total equity investment balance in its offshore wind business was ~~$1.82~~$2.58 billion and ~~$1.21~~$1.95 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~~Expected Sale of Offshore Wind ~~Investments~~Investment: On May ~~4, 2022, we~~25, 2023, Eversource announced that ~~we have initiated~~it had completed the strategic review of its offshore wind investment portfolio and determined that it would continue to pursue the sale of its offshore wind investment. The sale process of Eversource’s existing 50 percent interest in its three jointly-owned, contracted offshore wind projects continues to progress, and Eversource anticipates an announcement inthe near term.

The impairment evaluation involved judgments in developing the estimate and timing of future cash flows arising from the anticipated sale transactions, including future project spending amounts that could reduce the ultimate sales value, expected ability to qualify the Revolution Wind and Sunrise Wind projects for investment tax credit adders, the expectation of improved Sunrise Wind OREC contract value, and the selection of the discount rate used to determine fair value. The assumptions used in the discounted cash flow analysis are subject to inherent uncertainties and subjectivity. The use of different assumptions, estimates, or judgments with respect to the estimation of future cash flows could materially increase the impairment charge. The impairment evaluation was based on best information available at the impairment assessment date. Management evaluated its investment as of September 30, 2023 and concluded that, considering all facts and circumstances as of that date, there were no impairment triggering events in the third quarter of 2023. Accordingly, no additional impairment charge was applicable.

Another key assumption in the impairment model of our offshore wind investment ~~portfolio. As part~~was investment tax credit (“ITC”) adders that were included in the Inflation Reduction Act. An ITC adder is an additional 10 percent of credit value for ITC eligible costs and include two distinct qualifications related to either using domestic sourced materials (domestic content) or construction of an onshore substation in a designated community (energy communities). Similar to the base ITC of 30 percent of the eligible costs, any ITC adders generated would be used to reduce Eversource’s current federal tax liability and could be used to receive tax refunds from prior years as well. Management estimated in the second quarter of 2023 that ~~review, we are exploring strategic alternatives that~~it would be able to realize a 10 percent ITC adder for both the Sunrise Wind and Revolution Wind projects, which is a total expected value of approximately $400 million. There is uncertainty at this time as to whether or not those ITC adders can be achieved, and management continues to evaluate the project’s qualifications and to monitor guidance issued by the United States Treasury Department. A change in the expected value or qualification of ITC adders could result in a ~~potential~~significant impairment in a future period.

Management will continue to monitor and evaluate all facts and circumstances in the offshore wind sales process and the impact on its investment balance. The fair value of the investment will be updated based on changes in critical assumptions, the final sales price, and final sales terms. It is possible that there will be changes in our expectations of the timing of the sale of ~~all, or part,~~our three projects. Adverse changes in facts and circumstances of ~~our 50 percent interest~~estimates and timing of future cash flows and the factors described above could result in ~~our~~the recognition of additional, significant impairment charges and could be material to the financial statements.

The impairment charge was a non-cash charge and did not impact Eversource’s cash position. Eversource will continue to make future cash expenditures for required cash contributions to its offshore wind ~~partnership with Ørsted. In late July, we started preliminary and targeted outreach~~investment up 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~~time of the ~~strategic review is a~~ sale of ~~all, or part, of our interest in~~ the ~~partnership, we expect potential proceeds~~offshore wind projects. Proceeds from ~~such~~the transaction ~~would likely~~will be used to ~~support our regulated investments in strengthening, modernizing and decarbonizing our regulated energy and water delivery systems. As~~pay off parent company debt.

Proceeds received from the ~~strategic review proceeds, we remain committed to continue providing oversight~~sale of the ~~siting~~uncommitted lease area and ~~construction of onshore elements of our~~the contribution for the tax equity investment in South Fork Wind, ~~Revolution Wind and Sunrise Wind~~along with continued capital contributions in the offshore wind ~~projects.~~investment, are included in Investments in Unconsolidated Affiliates within investing activities on the statement of cash flows for the nine months ended September 30, 2023.

Contracts, Permitting and Construction of Offshore Wind Projects: The following table provides a summary of the Eversource and Ørsted major projects with announced contracts:

Wind Project

State Servicing

Size (MW)

Term (Years)

Price per MWh

Pricing Terms

Contract Status

Revolution Wind

Rhode Island

400

$98.43

Fixed price contract; no price escalation

Approved

Revolution Wind

Connecticut

304

$98.43 - $99.50

Fixed price contracts; no price escalation

Approved

South Fork Wind

New York (LIPA)

$160.33

2 percent average price escalation

Approved

South Fork Wind

New York (LIPA)

$86.25

2 percent average price escalation

Approved

Sunrise Wind

New York (NYSERDA)

924

$110.37 (1)

Fixed price contract; no price escalation

Approved

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

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 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 federal siting and permitting process for each of our offshore wind projects commence with the filing of a Construction and Operations Plan (COP) application with BOEM.~~The first major milestone in the~~ BOEM ~~review process is an issuance of a Notice of Intent (NOI) to complete an Environmental Impact Statement (EIS).~~ ~~BOEM then~~ provides a ~~final~~ review schedule for the project’s COP ~~approval.~~ ~~BOEM~~approval and conducts environmental and technical reviews of the COP. ~~The EIS~~BOEM issues an Environmental Impact Statement (EIS) that 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 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,~~BOEM released its Draft EIS on September 2, 2022 and its Final EIS on July 17, 2023 for the Revolution Wind ~~received~~project, and released its Draft EIS on December 16, 2022 for the Sunrise Wind project. For Revolution Wind, on August 21, 2023, BOEM issued its Record of Decision, which concluded BOEM’s ~~NOI to prepare an EIS for the~~environmental review of the ~~COP submitted by Revolution Wind. For Revolution Wind, a final EIS~~project and identified the recommended configuration. Final approval is expected in the ~~second~~fourth quarter of ~~2023, the~~2023. For Sunrise Wind, a Final EIS and Record of Decision are expected in the ~~third~~fourth quarter of 2023, and final approval is expected in the ~~fourth~~first quarter of 2023. On September 2, 2022, BOEM released its Draft EIS for the Revolution Wind project, which analyzes the potential environmental impacts of the project and the alternatives to the project 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 Revolution Wind project would still meet the contractual output under its PPA. 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 are expected in the third quarter of 2023, and final approval is expected in the fourth quarter of 2023.2024.

South Fork Wind, Revolution 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 projects’ permitting timelines.

State and Local Siting and Permitting Process: State permitting applications in Rhode Island for Revolution Wind and in New York for Sunrise Wind were filed in December 2020.On July 8, 2022, the Rhode Island Energy Facilities Siting Board issued a Final Decision and Order approving the Revolution Wind project and granting a license to construct and ~~operate~~operate.

~~. The Sunrise Wind state siting application was deemed complete on July 1, 2021, initiating~~

On November 17, 2022, the ~~formal review process, and Sunrise Wind filed a formal notice of intent to commence settlement negotiations towards~~New York Public Service Commission approved an order adopting a Joint Proposal ~~on August 31, 2021.~~filed by Sunrise Wind and granting a Certificate of Environmental Compatibility and Public Need. On ~~September 23,~~November 18, 2022, Sunrise Wind filed its Phase 1 Environmental Management and Construction Plan (EM&CP) with the ~~Joint Proposal~~New York Public Service Commission, which details the plans on limited onshore construction activities subject to state and local jurisdiction. On March 27, 2023, Sunrise Wind filed its EM&CP for Phase 2, which covers the remainder of the project components. On June 22, 2023, Sunrise Wind received approval of the Phase 1 EM&CP. On July 13, 2023, the New York State Public Service ~~Commission. Among other things, the Joint Proposal includes proposed mitigation~~Commission approved Sunrise Wind’s notice for ~~certain environmental, community and~~authorization to proceed with 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.for Phase 1.

On November 9, 2022, the Towns of Brookhaven and Suffolk County executed the easements and other real estate rights necessary to construct the Sunrise Wind project. On November 28, 2022, the Town of North Kingstown and the Quonset Development Corporation approved Revolution Wind’s real estate PILOT terms and the personal property PILOT agreement necessary to construct the Revolution Wind project.

Construction ~~Process - South Fork Wind:~~Process: South Fork Wind received all required approvals to start construction and the project entered the construction phase in early 2022. ~~Onshore~~All major onshore construction activities, ~~for~~including the project’s underground onshore transmission line and ~~construction of~~ the onshore interconnection facility located in East Hampton, New York are ~~underway.~~complete. Offshore construction activities ~~are expected to begin~~began in the fourth quarter of 2022 and continue, with ~~construction~~installation of the ~~sea-to-shore conduit system. Other~~subsea transmission cable, the monopile foundations and offshore substation complete. The remainder of the marine construction activities, ~~including~~primarily installation of 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~~continue throughout the rest of 2023 and ~~materials contracts have largely been secured.~~into early 2024. 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.

For Revolution Wind, on October 31, 2023, the joint venture made its final investment decision to advance to full onshore and offshore construction and installation, and major construction is expected to begin in the fourth quarter of 2023 once all necessary federal, state and local approvals are received. For Sunrise Wind, once all necessary federal, state and local approvals are received and the joint venture has made its final investment decision, then major construction is expected to begin. Both projects have started limited onshore construction activities.

Projected In-Service Dates: We expect the South Fork Wind project to be fully in-service ~~by the end of 2023.~~in early 2024. For Revolution Wind and Sunrise Wind, based on the updated BOEM permit ~~schedule included in each respective NOI~~schedules outlining when BOEM will complete its review of the COP, we currently expect in-service dates in late 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, weWe currently expect to make investments in our offshore wind business between ~~$0.9~~$1.4 billion and ~~$1.0~~$1.6 billion in ~~2022~~2023 and expect to make investments for our three projects in total between ~~$3.0~~$2.1 billion and ~~$3.6~~$2.4 billion from ~~2023~~2024 through 2026. These estimates assume that the three projects are completed and are in-service by the end of 2025, as planned. These projected investments ~~could~~are expected to be impacted by the ~~strategic review~~expected future sale of our offshore wind investment ~~discussed above.~~and related developments.

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, ~~2022~~2023 and December 31, ~~2021.~~2022. 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, ~~2022~~2023 and December 31, ~~2021.~~2022.

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~~Eversource’s after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods. Prospectively from the date of a final FERC order implementing a new base ROE, based off of estimated ~~2022~~2023 rate base, a change of 10 basis points to the base ROE would impact Eversource’s future annual after-tax earnings by approximately $5$5.5 million 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 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 FERC issues a final order eliminating the RTO ROE incentive as proposed in the Supplemental NOPR, the estimated annual impact (using ~~2022~~2023 estimated rate base) on Eversource's after-tax earnings is approximately ~~$18~~$19.5 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 ~~2022,~~2023, changes made to the regulated companies’ rates did not have a material impact on their ~~earnings, financial position, or cash flows.~~earnings. 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 ~~2021~~2022 Form 10-K.

Energy Supply Retail Rates: CL&P, NSTAR Electric and PSNH each finalized full requirements energy supply procurement contracts for its customers that choose to purchase power from the electric distribution company (standard offer, basic service or default energy service, respectively) for the second half of 2023 and new energy supply rates for residential customers were established effective July 1, 2023 at CL&P and NSTAR Electric and effective August 1, 2023 at PSNH. Energy supply rates are approved by the respective state regulatory commission and are re-set every six months for residential customers. CL&P’s standard service rate for residential customers decreased to 13.82 cents per kWh effective July 1, 2023, as compared to 24.17 cents effective January 1, 2023. NSTAR Electric’s basic service rate for residential customers in eastern Massachusetts decreased to 16.08 cents per kWh and for western Massachusetts customers to 14.85 cents per kWh effective July 1, 2023, as compared to 25.78 cents and 21.99 cents effective January 1, 2023, respectively. PSNH’s default energy service rate for residential customers decreased to 12.58 cents per kWh effective August 1, 2023, as compared to 20.22 cents effective February 1, 2023. Decreases in energy supply retail rates result in decreases in both energy supply procurement revenues and purchased power expenses, with no impact on earnings.

Connecticut:

CL&P ~~Advanced Metering Infrastructure Filing:~~Performance Based Rate Making: On ~~July 31,~~May 26, 2021, in accordance with an October 2020 ~~CL&P submitted~~Connecticut law, PURA opened a proceeding to begin to evaluate and eventually implement performance-based regulation (PBR) for electric distribution companies. PURA ~~its proposed $512 million Advanced Metering Infrastructure investment~~will conduct the proceeding in two phases. On January 25, 2023, PURA staff issued a proposal outlining a suggested portfolio of performance-based regulation elements for further exploration and implementation ~~plan.~~in the second phase of the proceeding. On ~~August 17, 2021,~~April 26, 2023, PURA issued a ~~Notice~~final decision on the first phase and identified various objectives to guide PBR development and evaluate adoption of ~~Request for Amended EDC Advanced Metering Infrastructure Proposal.~~a PBR framework. The decision commenced Phase 2 by initiating three reopener dockets focused on revenue adjustment mechanisms, performance metrics and integrated distribution system planning with final decisions expected in May and August of 2024. The three reopener dockets continue to progress through the Phase 2 process. We continue to monitor developments in this proceeding, and at this time, we cannot predict the ultimate outcome of this proceeding and the resulting impact to 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 included additional information as required by the PURA. As required, the plan includes a full deployment of advanced metering functionality and a composite business case in support of the 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 a technical session on September 14, 2022.&P.

~~Aquarion Water Company of Connecticut Distribution Rate Case:~~ On 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, 2023, 2024, and 2025, respectively. A final decision from PURA is expected March 15, 2023.

5251

Termination of Park City Wind Power Purchase Agreement: On October 2, 2023, Park City Wind LLC and CL&P signed an agreement to terminate the Park City Wind offshore wind generation PPA, at the request of Park City Wind LLC. The termination agreement was effective on October 13, 2023, the date of PURA approval. In October 2023, Park City Wind LLC paid a termination payment of $12.9 million to CL&P resulting from the termination of the PPA, which CL&P will return to customers.

Massachusetts:

~~NSTAR Electric Distribution Rate Case~~Termination of SouthCoast Wind Power Purchase Agreements: On ~~January 14, 2022,~~August 28, 2023, SouthCoast Wind Energy LLC and NSTAR Electric ~~filed an application with~~signed agreements to terminate three SouthCoast Wind offshore wind generation PPAs, at the request of SouthCoast Wind Energy LLC. The termination agreements were effective on September 29, 2023, the date of DPU ~~for approval of an $89~~approval. In October 2023, SouthCoast Wind Energy, LLC paid a termination payment totaling $32.5 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~~resulting from the termination of ~~this filing,~~the PPAs, which NSTAR Electric ~~is requesting a renewal of the performance-based ratemaking plan originally authorized in its last rate case for up~~will return 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.customers.

Termination of Commonwealth Wind Power Purchase Agreement: On July 13, 2023, Commonwealth Wind, LLC and NSTAR Electric ~~Grid Modernization and Advanced Metering Infrastructure Filing:~~ ~~On July 1, 2021,~~signed an agreement to terminate the Commonwealth Wind offshore wind generation PPA, at the request of Commonwealth Wind, LLC. The termination agreement was effective on August 23, 2023, the date of DPU approval. In October 2023, Commonwealth Wind, LLC paid a termination payment of $25.9 million to NSTAR Electric, submitted for DPU approval its four-year $198.8 million Grid Modernization Plan for the years 2022 through 2025 and proposed $620 million Advanced Metering Infrastructure investment and implementation plan (including program operating costs) for the years 2022 through 2028. As required, the plan includes a ten-year vision, five-year strategic plan, including a full deployment of advanced metering functionality, separate four-year grid-facing and customer-facing short-term investment plans, and a composite business case in support of the Advanced Metering Infrastructure plan. On October 7, 2022, the DPU issued an order approving the continuing investments from the initial 2018 to 2021 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.which NSTAR Electric expects DPU guidance for the new 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 part of the NSTAR Electric base distribution rate case by December 1, 2022.will return to customers.

~~NSTAR Gas Distribution Rates:~~ As part of an inflation-based mechanism, NSTAR Gas submitted its second annual Performance Based Rate Adjustment filing on September 15, 2022 and on October 31, 2022, the DPU approved a $21.7 million increase to base distribution rates 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:~~ As established in an October 7, 2020 EGMA Rate Settlement Agreement approved by the DPU, on September 16, 2022 EGMA filed for its second base distribution rate increase and on October 31, 2022, the DPU approved a $6.7 million increase to base distribution rates and a $3.3 million increase to the Tax Act Credit Factor for effect on November 1, 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 ~~2021~~2022 Form 10-K. There have been no material changes with regard to these critical accounting policies.

Refer to Note 1E, “Summary of Significant Accounting Policies - Investments in Unconsolidated Affiliates,” to the financial statements for further discussion of the critical accounting estimates surrounding impairment analysis.

Other Matters

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, ~~2022~~2023 and ~~2021~~2022 included in this combined Quarterly Report on Form 10-Q:


		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,
(Millions of Dollars)	(Millions of Dollars)	2022		2021		Increase		2022		2021		Increase		(Millions of Dollars)	2023		2022		Increase/(Decrease)		2023		2022		Increase/(Decrease)
Operating Revenues	Operating Revenues	$	3,215.6	$	2,432.8	$	782.8	$	9,259.6	$	7,381.2	$	1,878.4	Operating Revenues	$	2,791.5	$	3,215.6	$	(424.1)	$	9,216.5	$	9,259.6	$	(43.1)
Operating Expenses:	Operating Expenses:													Operating Expenses:
Purchased Power, Fuel and Transmission		1,388.0		880.6		507.4		3,718.3		2,529.2		1,189.1
Purchased Power, Purchased Natural Gas and Transmission														Purchased Power, Purchased Natural Gas and Transmission	1,168.6		1,388.0		(219.4)		4,232.9		3,718.3		514.6
Operations and Maintenance	Operations and Maintenance	454.3		389.1		65.2		1,378.9		1,265.8		113.1		Operations and Maintenance	500.7		454.3		46.4		1,382.6		1,378.9		3.7
Depreciation	Depreciation	302.1		276.8		25.3		885.7		822.2		63.5		Depreciation	329.5		302.1		27.4		962.5		885.7		76.8
Amortization	Amortization	111.3		45.2		66.1		418.6		158.9		259.7		Amortization	(144.0)		111.3		(255.3)		(438.5)		418.6		(857.1)
Energy Efficiency Programs	Energy Efficiency Programs	162.5		143.8		18.7		498.7		460.8		37.9		Energy Efficiency Programs	162.4		162.5		(0.1)		531.2		498.7		32.5
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	240.1		213.9		26.2		683.5		623.8		59.7		Taxes Other Than Income Taxes	243.7		240.1		3.6		705.0		683.5		21.5

Total Operating Expenses	Total Operating Expenses	2,658.3		1,949.4		708.9		7,583.7		5,860.7		1,723.0		Total Operating Expenses	2,260.9		2,658.3		(397.4)		7,375.7		7,583.7		(208.0)
Operating Income	Operating Income	557.3		483.4		73.9		1,675.9		1,520.5		155.4		Operating Income	530.6		557.3		(26.7)		1,840.8		1,675.9		164.9
Interest Expense	Interest Expense	178.1		148.0		30.1		491.6		431.2		60.4		Interest Expense	222.3		178.1		44.2		624.3		491.6		132.7
Impairment of Offshore Wind Investment														Impairment of Offshore Wind Investment	—		—		—		401.0		—		401.0
Other Income, Net	Other Income, Net	89.8		43.8		46.0		255.3		124.6		130.7		Other Income, Net	79.1		89.8		(10.7)		263.0		255.3		7.7
Income Before Income Tax Expense	Income Before Income Tax Expense	469.0		379.2		89.8		1,439.6		1,213.9		225.7		Income Before Income Tax Expense	387.4		469.0		(81.6)		1,078.5		1,439.6		(361.1)
Income Tax Expense	Income Tax Expense	117.7		94.1		23.6		349.3		294.5		54.8		Income Tax Expense	45.8		117.7		(71.9)		226.7		349.3		(122.6)
Net Income	Net Income	351.3		285.1		66.2		1,090.3		919.4		170.9		Net Income	341.6		351.3		(9.7)		851.8		1,090.3		(238.5)
Net Income Attributable to Noncontrolling Interests	Net Income Attributable to Noncontrolling Interests	1.9		1.9		—		5.6		5.6		—		Net Income Attributable to Noncontrolling Interests	1.9		1.9		—		5.6		5.6		—
Net Income Attributable to Common Shareholders	Net Income Attributable to Common Shareholders	$	349.4	$	283.2	$	66.2	$	1,084.7	$	913.8	$	170.9	Net Income Attributable to Common Shareholders	$	339.7	$	349.4	$	(9.7)	$	846.2	$	1,084.7	$	(238.5)

Operating Revenues

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


		Electric						Firm Natural Gas								Water								Electric													Firm Natural Gas												Water
		Sales Volumes (GWh)		Percentage Increase				Sales Volumes (MMcf)				Percentage (Decrease)/Increase				Sales Volumes (MG)					Percentage Increase			Sales Volumes (GWh)								Percentage Decrease					Sales Volumes (MMcf)							Percentage Decrease					Sales Volumes (MG)						Percentage Decrease
Three Months Ended September 30:	Three Months Ended September 30:	2022	2021			2022			2021					2022			2021		Three Months Ended September 30:	2023					2022					2023							2022					2023							2022
Traditional	Traditional	2,140	2,097			2.1	%		—		—			—	%		596		397					50.1		%	Traditional	2,090			2,140					(2.3)		%	—				—					—		%	469			596					(21.3)	%
Decoupled and Special Contracts (1)	Decoupled and Special Contracts (1)	12,545	12,197	2.9	%			15,751		16,545		(4.8)	%			8,379		6,856			22.2	%	Decoupled and Special Contracts (1)	12,140					12,545				(3.2)		%			15,755			15,751				—		%			7,168			8,379			(14.5)		%
Total Sales Volumes	Total Sales Volumes	14,685	14,294	2.7	%			15,751		16,545		(4.8)	%			8,975		7,253			23.7	%	Total Sales Volumes	14,230					14,685			(3.1)		%			15,755			15,751				—		%			7,637			8,975			(14.9)		%

Nine Months Ended September 30:	Nine Months Ended September 30:																						Nine Months Ended September 30:
Traditional	Traditional	5,927	5,901	0.4	%			—		—		—	%			1,227		967			26.9	%	Traditional	5,735					5,927			(3.2)		%			—			—				—		%			1,148			1,227			(6.4)		%
Decoupled and Special Contracts (1)	Decoupled and Special Contracts (1)	33,358	33,071	0.9	%			109,163		107,337		1.7	%			17,965		16,863			6.5	%	Decoupled and Special Contracts (1)	31,858					33,358			(4.5)		%			99,289			109,163				(9.0)		%			17,761			17,965			(1.1)		%
Total Sales Volumes	Total Sales Volumes	39,285	38,972	0.8	%			109,163		107,337		1.7	%			19,192		17,830			7.6	%	Total Sales Volumes	37,593					39,285			(4.3)		%			99,289			109,163				(9.0)		%			18,909			19,192			(1.5)		%

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

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: The variance in Operating Revenues by segment ~~increased for the three and nine months ended September 30, 2022, as compared to the same periods in 2021,~~is 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	$	739.9	$	1,553.7	Electric Distribution	$	(423.8)	$	(171.5)
Natural Gas Distribution	Natural Gas Distribution	40.1		291.6		Natural Gas Distribution	(7.3)		103.2
Electric Transmission	Electric Transmission	50.5		131.5		Electric Transmission	22.8		68.8
Water Distribution	Water Distribution	3.3		7.2		Water Distribution	3.5		8.8
Other	Other	17.4		63.6		Other	51.2		154.6
Eliminations	Eliminations	(68.4)		(169.2)		Eliminations	(70.5)		(207.0)
Total Operating Revenues	Total Operating Revenues	$	782.8	$	1,878.4	Total Operating Revenues	$	(424.1)	$	(43.1)

Electric and Natural Gas ~~(excluding EGMA)~~ Distribution Revenues:

Base Distribution Revenues:

•Base electric distribution revenues ~~increased $9.0 million and $37.4~~decreased $30.4 million for the three month period due primarily to a rate design change at NSTAR Electric approved by the DPU in the 2022 rate case that shifted the recovery of quarterly revenues and resulted in a decrease of $42.0 million, partially offset by a base distribution rate increase effective January 1, 2023 at NSTAR Electric of $12.0 million.

•Base electric distribution revenues increased $5.6 million for the nine ~~months ended September 30,~~month period due primarily to a base distribution rate increase at NSTAR Electric effective January 1, 2023 of $29.9 million, partially offset by a rate design change at NSTAR Electric approved by the DPU in the 2022 rate case that shifted the recovery of quarterly revenues and resulted in a decrease of $20.8 million. As part of the 2022 NSTAR Electric rate case decision, certain customer rates changed from seasonal demand charges to a single annual demand charge effective January 1, 2023, resulting in a shift in the timing of revenues and earnings recognized quarterly in 2023, as compared to 2022, but with no impact on an annual basis. This rate design change results in higher revenues in each of the first and fourth quarters of 2023 of approximately $21 million, offset by lower revenues in the third quarter of 2023 of approximately $42 million, as compared to the same periods in ~~2021,~~2022.

•Base natural gas distribution revenues increased $1.6 million and $14.7 million for the respective three and nine month periods due primarily to the impact of base distribution rate increases at NSTAR ~~Electric effective January 1, 2022 resulting from its annual Performance Based Rate Adjustment filing~~Gas and ~~at PSNH effective August 1, 2021 to reflect plant additions in calendar year 2020 included in its revenue requirement.~~

•Base natural gas distribution revenues (excluding EGMA) increased $1.7 million and $15.2 million for the three and nine months ended September 30, 2022, as compared to the same periods in 2021, due primarily to a base distribution rate increase at NSTAR GasEGMA effective November 1, ~~2021.~~2022.

Electric distribution revenues at CL&P also increased $93.4 million for the three and nine months ended September 30, 2022, as compared to the same periods in 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 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, which were distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. 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 was provided as credits to 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.

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, net metering for distributed 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.

Customers have the choice to purchase electricity from each Eversource electric utility or from a competitive third party supplier. For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third party supplier. For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement. CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues. Certain eligible natural gas customers may elect to purchase natural gas from each Eversource natural gas utility or may contract separately with a gas supply operator. Revenue is not recorded for the sale of the natural gas commodity to customers who have contracted separately with these operators, only the delivery to a customer, as the utility is acting as an agent on behalf of the gas supply operator.

Tracked distribution revenues increased/(decreased) for the three and nine ~~months ended September 30, 2022, as compared to the same~~month periods, ~~in 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	$	390.8	$	702.7	$	22.2	$	91.0	Energy supply procurement	$	(102.5)	$	680.0	$	(71.1)	$	(42.8)
CL&P FMCC										CL&P FMCC	(75.1)		(343.4)		—		—
Retail transmission	Retail transmission	65.3		224.0		—		—		Retail transmission	(48.7)		(97.2)		—		—
Energy Efficiency		27.8		37.9		(0.9)		(6.1)
Stranded costs		(15.3)		(59.9)		—		—
Energy efficiency										Energy efficiency	(9.6)		5.0		5.8		34.1
Other distribution tracking mechanisms	Other distribution tracking mechanisms	(2.2)		19.5		5.4		21.2		Other distribution tracking mechanisms	(4.3)		(19.4)		5.1		24.3
Wholesale Market Sales Revenue	Wholesale Market Sales Revenue	183.3		515.1		7.0		20.7		Wholesale Market Sales Revenue	(162.2)		(410.8)		48.9		71.2

The ~~increase~~decrease in energy supply procurement within electric distribution for the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ was driven ~~primarily~~by lower average supply-related sales volumes, partially offset by higher average ~~prices and higher average supply-related sales volumes.~~prices. The increase in energy supply procurement within electric distribution for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ was driven ~~primarily~~ by higher average prices, partially offset by lower average supply-related sales volumes. The ~~increase~~decrease in energy supply procurement within natural gas distribution for the three ~~and nine months ended September 30, 2022, as compared to the same periods in 2021,~~month period was driven ~~primarily~~by lower average prices and lower average supply-related sales volumes. The decrease in energy supply procurement within natural gas distribution for the nine month period was driven by lower average supply-related sales volumes, partially offset by higher average ~~prices and higher average supply-related sales volumes.~~prices.

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~~Purchased Natural Gas and Transmission Expense" below.

The ~~increase~~decrease in CL&P’s FMCC revenues was driven by a decrease in the retail Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) rate, which reflects the impact of returning net benefits of higher wholesale market sales received in the ISO-NE market for long-term state approved energy contracts at CL&P, which are then credited back to customers through the retail NBFMCC rate. CL&P’s average NBFMCC rate in effect from January 1, 2022 through April 30, 2022 was $0.01423 per kWh and from May 1 through August 31, 2022 was $0.01251 per kWh. As a result of the CL&P RAM proceeding in Docket No. 22-01-03, CL&P reduced the average NBFMCC rate effective September 1, 2022 from $0.01251 per kWh to $0.00000 per kWh. As part of a November 2022 rate relief plan, CL&P further reduced the average NBFMCC rate effective January 1, 2023 to a credit of $0.01524 per kWh. These rate reductions returned to customers the net revenues generated by long-term state-approved energy contracts with the Millstone and Seabrook nuclear power plants. The average NBFMCC rate changed to $0.00000 per kWh effective July 1, 2023. As a result of the 2023 CL&P RAM decision, the average NBFMCC rate changed to $0.00293 per kWh effective September 1, 2023.

The decrease in electric distribution wholesale market sales revenue for the three and nine ~~months ended September 30, 2022, as compared to the same~~month periods ~~in 2021,~~ was due primarily to ~~higher~~lower average electricity market prices received for wholesale sales at CL&P, NSTAR Electric and PSNH. ISO-NE average market prices received for CL&P’s wholesale sales ~~increased approximately 91~~decreased to an average price of $32.17 per MWh and ~~116 percent~~$38.16 per MWh for the three and nine months ended September 30, ~~2022,~~2023, respectively, as compared to $81.50 per MWh and $86.13 per MWh for the same periods in ~~2021,~~2022, respectively, driven primarily by ~~higher~~lower 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 CL&P 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:~~ EGMA total operating revenues at the natural gas distribution segment increased by $5.5 million and $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, due primarily to a base distribution rate increase effective November 1, 2021.

Electric Transmission Revenues: Electric transmission revenues increased ~~$50.5~~$22.8 million and ~~$131.5~~$68.8 million for the three and nine ~~months ended September 30, 2022, as compared to the same~~month periods, ~~in 2021,~~respectively, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

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

Purchased Power, ~~Fuel~~Purchased Natural Gas and Transmission expense includes costs associated with ~~purchasing electricity~~providing electric generation service supply and natural gas ~~on behalf of our~~to all customers ~~and~~who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as required by ~~regulation.~~regulation, and transmission costs. These electric and natural gas supply procurement costs, other energy-related costs, and ~~other energy-related~~transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). The variance in Purchased Power, ~~Fuel~~Purchased Natural Gas and Transmission expense ~~increased for the three and nine months ended September 30, 2022, as compared to the same periods in 2021,~~is due primarily to the following:

(Millions of Dollars) Three Months Ended Nine Months Ended
Purchased Power Costs $ 446.9 $ 832.3
Natural Gas Costs 34.5 214.8
Transmission Costs 75.9 242.7
Eliminations (49.9) (100.7)
Total Purchased Power, Fuel and Transmission $ 507.4 $ 1,189.1


(Millions of Dollars)	Three Months Ended		Nine Months Ended
Energy supply procurement costs	$	(107.9)	$	670.6
Other electric distribution costs	(6.6)		(14.8)
Natural gas costs	(24.8)		3.4
Transmission costs	(59.0)		(90.0)
Eliminations	(21.1)		(54.6)
Total Purchased Power, Purchased Natural Gas and Transmission	$	(219.4)	$	514.6

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

~~The increase in costs~~Costs at the natural gas distribution segment include supply procurement costs for retail customers and supply costs for wholesale third party marketers. Total natural gas costs decreased for the three ~~and nine months ended September 30, 2022, as compared to the same periods in 2021, was~~month period due primarily to ~~higher~~lower average ~~prices~~purchased volumes and ~~higher~~lower average ~~supply-related sales volumes.~~prices. Total natural gas costs increased for the nine month period due primarily to an increase in the retail cost deferral, partially offset by lower average purchased volumes and lower average prices.

The ~~increase~~decrease in transmission costs for the three ~~months ended September 30, 2022, as compared to the same period in 2021,~~and nine month periods was primarily the result of ~~an increase resulting from~~a decrease in the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed to customers and a decrease in costs billed by ISO-NE that support regional grid investments. These decreases were partially offset by an increase in Local Network Service charges, which 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). The variance in Operations and Maintenance expense ~~increased for the three and nine months ended September 30, 2022, as compared to the same periods in 2021,~~is 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
Base Electric Distribution (Non-Tracked Costs):	Base Electric Distribution (Non-Tracked Costs):					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
Storm costs						Storm costs	$	18.3	$	8.7
Shared corporate costs (including computer software depreciation at Eversource Service)	Shared corporate costs (including computer software depreciation at Eversource Service)	8.7		18.6		Shared corporate costs (including computer software depreciation at Eversource Service)	7.1		24.7
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	Other non-tracked operations and maintenance	1.2		5.6		Other non-tracked operations and maintenance	0.3		(10.7)
General costs (including vendor services in corporate areas, bad debt expense, insurance, fees and assessments)						General costs (including vendor services in corporate areas, bad debt expense, insurance, fees and assessments)	0.1		11.1
Employee-related expenses (including labor and benefits)						Employee-related expenses (including labor and benefits)	(0.4)		(10.2)
Vegetation management						Vegetation management	(0.4)		(4.1)
Operations-related expenses (including vendor services and vehicles)						Operations-related expenses (including vendor services and vehicles)	(4.6)		(3.1)
Total Base Electric Distribution (Non-Tracked Costs)	Total Base Electric Distribution (Non-Tracked Costs)	53.2		53.1		Total Base Electric Distribution (Non-Tracked Costs)	20.4		16.4
Tracked Electric Costs (Electric Distribution and Electric Transmission) - Increases due primarily to higher transmission expenses		29.3		68.6
Tracked Electric Costs (Electric Distribution and Electric Transmission)						Tracked Electric Costs (Electric Distribution and Electric Transmission)	18.2		28.1
Total Electric Distribution and Electric Transmission						Total Electric Distribution and Electric Transmission	38.6		44.5
Natural Gas Distribution:	Natural Gas Distribution:					Natural Gas Distribution:
Base (Non-Tracked Costs) - Increases due primarily to higher employee-related expenses and higher shared corporate costs		4.1		22.2
Base (Non-Tracked Costs) - Three month increase due primarily to higher bad debt expense, partially offset by lower employee-related expenses; nine month decrease due primarily to lower employee-related expenses						Base (Non-Tracked Costs) - Three month increase due primarily to higher bad debt expense, partially offset by lower employee-related expenses; nine month decrease due primarily to lower employee-related expenses	4.0		(6.8)
Tracked Costs	Tracked Costs	3.4		11.0		Tracked Costs	1.1		(0.9)
Total Natural Gas Distribution	Total Natural Gas Distribution	7.5		33.2		Total Natural Gas Distribution	5.1		(7.7)
Water Distribution	Water Distribution	2.2		4.9		Water Distribution	1.7		3.9
Parent and Other Companies and eliminations:

Eversource Parent and Other Companies - other operations and maintenance	Eversource Parent and Other Companies - other operations and maintenance	(6.2)		22.4		Eversource Parent and Other Companies - other operations and maintenance	52.4		130.3
Eliminations						Eliminations	(48.6)		(152.4)
Transaction and Transition Costs	Transaction and Transition Costs	(3.0)		(6.0)		Transaction and Transition Costs	(2.8)		(14.9)
Eliminations		(17.8)		(63.1)
Total Operations and Maintenance	Total Operations and Maintenance	$	65.2	$	113.1	Total Operations and Maintenance	$	46.4	$	3.7

Depreciation expense increased for the three and nine ~~months ended September 30, 2022, as compared to the same~~month periods ~~in 2021,~~ due primarily to higher utility plant in service ~~balances.~~balances, partially offset by a decrease in approved depreciation rates as part of the rate case decision effective January 1, 2023 at NSTAR Electric.

Amortizationexpense 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~~These costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates.

Amortization ~~increased~~decreased for the three and nine ~~months ended September 30, 2022, as compared to the same~~month periods ~~in 2021,~~ 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), NSTAR Electric and ~~NSTAR Electric,~~PSNH, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. ~~For~~The decrease in the CL&P FMCC mechanism was driven primarily by the November 2022 rate relief plan, which reduced the non-bypassable FMCC rate effective January 1, 2023. The reduction in the CL&P non-bypassable FMCC retail rate decreased the regulatory over-recovery balance, which resulted in a decrease to amortization expense of $210.3 million in the three month period and $717.3 million in the nine month ~~period,~~period. The nine month decrease was also driven by the ~~increase was partially offset by~~impact of a ~~decrease in storm amortization expense~~new regulatory tracking mechanism at ~~CL&P related to~~PSNH that allows for the ~~completion~~recovery of operating expenses associated with poles acquired from Consolidated Communications on May 1, 2023. The establishment of the ~~amortization period~~PPAM regulatory asset resulted in a pre-tax benefit of ~~certain storm costs deferred assets.~~$16.9 million recorded in Amortization expense on the PSNH statement of income in the second quarter of 2023.

The decreases for the three and nine month periods were partially offset by the amortization of historical exogenous property taxes that were approved for recovery effective January 1, 2023 at NSTAR Electric and effective November 1, 2022 at NSTAR Gas and EGMA, and an unfavorable regulatory adjustment resulting from NSTAR Gas’ GSEP reconciliation filing that resulted in an increase to amortization expense of $9.0 million recorded in the third quarter of 2023.

Energy Efficiency Programs expense increased for the ~~three and~~ nine ~~months ended September 30, 2022, as compared to the same periods in 2021,~~month period due primarily to the deferral adjustment at NSTAR Gas and EGMA, 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 increased for the three ~~and nine months ended September 30, 2022, as compared to the same periods in 2021,~~month period due primarily to anhigher employment-related taxes based on the timing of payroll pay periods. For the nine month period, the increase inwas due primarily to higher employment-related taxes based on the timing of payroll pay periods, higher Connecticut gross earnings taxes, and higher property taxes as a result of higher utility plant ~~balances and higher Connecticut gross earnings taxes.~~balances.

Interest Expense increased for the three and nine ~~months ended September 30, 2022, as compared to the same~~month periods ~~in 2021,~~ due primarily to an increase in interest on long-term debt as a result of new debt issuances ($~~36.1~~46.5 million and ~~$64.6~~$149.0 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)~~11.8 million and $31.5 million, respectively), ~~and~~ an increase in interest expense on regulatory deferrals ($~~2.7 million). These increases in interest expense were~~4.3 million and $8.2 million, respectively), and higher amortization of debt discounts and premiums, net ($0.1 million and $2.5 million, respectively), partially offset by an increase in capitalized AFUDC related to debt funds and other capitalized interest ($~~6.2~~18.8 million and ~~$8.8 million, respectively), lower interest resulting from the 2022 payment of withheld property taxes at NSTAR Electric ($1.8 million and $2.9~~$51.0 million, respectively), and a decrease in RRB interest expense ($0.3 million and $1.0 million, respectively).

Impairment of Offshore Wind Investment relates to an impairment charge in the second quarter of 2023 associated with Eversource’s equity method investment in its offshore wind business resulting from the completion of the strategic review of its offshore wind investment portfolio. See "Business Development and Capital Expenditures – Offshore Wind Business" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.

Other Income, Net ~~increased~~decreased for the three ~~and nine~~ ~~months ended September 30, 2022, as compared to the same periods in 2021,~~month period due primarily to ~~an increase~~a decrease related to pension, SERP and PBOP non-service income components ($~~33.6 million~~26.8 million), the absence in 2023 of a gain on sale of property in 2022 ($2.5 million), and ~~$100.6 million, respectively)~~a decrease in equity in earnings related to Eversource's equity method investments ($1.1 million), partially offset by an increase in interest income primarily from regulatory deferrals ($~~6.8 million and $13.1 million, respectively), a gain on the sale of property ($2.5 million and $2.6 million, respectively)~~10.0 million), an increase in capitalized AFUDC related to equity funds ($~~2.3 million and $5.0 million, respectively)~~8.4 million), and higher investment income driven by market volatility ($~~1.9 million and $1.7 million, respectively)~~1.4 million). ~~Additionally,~~

Other Income, Net increased for the nine month period asdue primarily toan increase in interest income primarily from regulatory deferrals ($38.3 million) and an increase in capitalized AFUDC related to equity funds ($21.8 million), partially offset by a ~~result of an increase~~decrease related to pension, SERP and PBOP non-service income components ($67.9 million), a decrease in equity in earnings related to Eversource's equity method investments ($~~7.5~~9.3 million), a loss on the disposition of land in 2023 compared to gains on the sales of property in 2022 ($9.2 million), , and ~~decreased~~investment losses in 2023 compared to investment income in 2022 driven by market volatility ($2.8 million). Other Income, Net also increased for the ~~three~~nine month period asdue to a ~~result~~benefit in both the first and second quarters of ~~a decrease in equity in earnings related to~~2023 from the liquidation of Eversource’s equity method ~~investments ($1.1 million).~~investment in a renewable energy fund in excess of its carrying value, partially offset by a charitable contribution made with a portion of the proceeds from the liquidation in the first quarter of 2023.

Income Tax Expense ~~increased~~decreased for the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to ~~higher~~lower pre-tax earnings ($~~18.9~~17.1 million), ~~higher~~lower state taxes ($~~0.6~~9.2 million), and lower return to provision adjustments ($66.7 million), partially offset by a decrease in amortization of EDIT ($1.3 million), an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($5.7 million), lower share-based payment excess tax benefits ($0.1 million), and an increase in ~~return~~reserves ($14.0 million, of which $8.8 million relates to ~~provision adjustments~~an uncertain tax position).

Income Tax Expense decreased for the nine month period due primarily to lower pre-tax earnings ($~~11.2~~75.8 million), ~~partially offset by an increase in amortization of EDIT~~lower state taxes ($~~3.5~~37.6 million) ~~and~~, a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~3.6 million).~~

~~Income Tax Expense~~ ~~increased for the nine months ended September 30, 2022, as compared to the same period in 2021, due primarily to higher pre-tax earnings ($47.4~~6.1 million), ~~higher state taxes~~and lower return to provision adjustments ($~~6.6~~66.7 million), partially offset by lower share-based payment excess tax benefits ($~~1.9~~2.6 million), a decrease in amortization of EDIT ($4.1 million) and an increase in ~~return~~reserves ($56.9 million) primarily related to ~~provision adjustments ($11.2 million), partially offset by~~the impairment of Eversource’s offshore wind investment valuation allowance reserve of $40 million and $8.8 million relating to an ~~increase in amortization of EDIT ($10.1 million) and a decrease in items that impact our~~uncertain tax ~~rate as a result of regulatory treatment (flow-through items) and permanent differences ($2.2 million).~~position.

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, ~~2022~~2023 and ~~2021~~2022 included in this combined Quarterly Report on Form 10-Q:


		For the Nine Months Ended September 30,																			For the Nine Months Ended September 30,
		CL&P						NSTAR Electric						PSNH							CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	(Millions of Dollars)	2022		2021		Increase		2022		2021		Increase/ (Decrease)		2022		2021		Increase/ (Decrease)		(Millions of Dollars)	2023		2022		Increase/ (Decrease)		2023		2022		Increase/ (Decrease)		2023		2022		Increase/ (Decrease)
Operating Revenues	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 Revenues	$	3,563.1	$	3,690.6	$	(127.5)	$	2,728.8	$	2,752.3	$	(23.5)	$	1,123.3	$	1,077.1	$	46.2
Operating Expenses:	Operating Expenses:																			Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	1,585.5		1,073.7		511.8		971.8		711.7		260.1		452.0		279.5		172.5		Purchased Power and Transmission	2,136.9		1,585.5		551.4		936.5		971.8		(35.3)		499.6		452.0		47.6
Operations and Maintenance	Operations and Maintenance	515.9		465.6		50.3		475.7		421.6		54.1		194.1		168.2		25.9		Operations and Maintenance	525.7		515.9		9.8		487.0		475.7		11.3		217.5		194.1		23.4
Depreciation	Depreciation	265.0		253.1		11.9		269.9		251.5		18.4		95.0		89.5		5.5		Depreciation	281.1		265.0		16.1		277.4		269.9		7.5		104.3		95.0		9.3
Amortization of Regulatory Assets, Net		318.3		76.6		241.7		65.3		24.0		41.3		43.4		62.7		(19.3)
Amortization of Regulatory (Liabilities)/Assets, Net																				Amortization of Regulatory (Liabilities)/Assets, Net	(425.4)		318.3		(743.7)		14.9		65.3		(50.4)		(35.2)		43.4		(78.6)
Energy Efficiency Programs	Energy Efficiency Programs	103.1		100.8		2.3		255.2		226.1		29.1		28.7		30.5		(1.8)		Energy Efficiency Programs	100.7		103.1		(2.4)		252.3		255.2		(2.9)		30.5		28.7		1.8
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	290.5		275.3		15.2		185.8		163.5		22.3		73.4		69.7		3.7		Taxes Other Than Income Taxes	303.2		290.5		12.7		188.2		185.8		2.4		73.3		73.4		(0.1)
Total Operating Expenses	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		Total Operating Expenses	2,922.2		3,078.3		(156.1)		2,156.3		2,223.7		(67.4)		890.0		886.6		3.4
Operating Income	Operating Income	612.3		491.4		120.9		528.6		544.7		(16.1)		190.5		187.1		3.4		Operating Income	640.9		612.3		28.6		572.5		528.6		43.9		233.3		190.5		42.8
Interest Expense	Interest Expense	125.2		124.4		0.8		119.0		106.7		12.3		43.4		42.7		0.7		Interest Expense	145.4		125.2		20.2		139.8		119.0		20.8		55.9		43.4		12.5
Other Income, Net	Other Income, Net	61.3		21.7		39.6		101.4		58.9		42.5		23.4		11.6		11.8		Other Income, Net	46.6		61.3		(14.7)		120.7		101.4		19.3		19.2		23.4		(4.2)
Income Before Income Tax Expense	Income Before Income Tax Expense	548.4		388.7		159.7		511.0		496.9		14.1		170.5		156.0		14.5		Income Before Income Tax Expense	542.1		548.4		(6.3)		553.4		511.0		42.4		196.6		170.5		26.1
Income Tax Expense	Income Tax Expense	126.3		104.6		21.7		110.7		114.6		(3.9)		36.4		32.5		3.9		Income Tax Expense	141.0		126.3		14.7		120.1		110.7		9.4		44.6		36.4		8.2
Net Income	Net Income	$	422.1	$	284.1	$	138.0	$	400.3	$	382.3	$	18.0	$	134.1	$	123.5	$	10.6	Net Income	$	401.1	$	422.1	$	(21.0)	$	433.3	$	400.3	$	33.0	$	152.0	$	134.1	$	17.9

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,
		2022	2021		Percentage Increase			2023	2022	Percentage Decrease
CL&P	CL&P	15,781	15,728		0.3	%	CL&P	14,830	15,781	(6.0)	%
NSTAR Electric	NSTAR Electric	17,577	17,343		1.3	%	NSTAR Electric	17,028	17,577	(3.1)	%
PSNH	PSNH	5,927	5,901		0.4	%	PSNH	5,735	5,927	(3.2)	%

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 $954.1~~decreased $127.5 million at CL&P ~~$409.2~~and $23.5 million at NSTAR Electric, and ~~$189.9~~increased $46.2 million at PSNH for the nine ~~months ended September 30, 2022, as compared to the same period in 2021.~~month period.

Base Distribution Revenues:

•CL&P's distribution revenues ~~increased $0.4 million.~~were flat.

•NSTAR Electric's distribution revenues increased ~~$31.6~~$9.1 million in the nine month period due primarily to ~~the impact of its~~a base distribution rate increase effective January 1, 2023 of $29.9 million, partially offset by a rate design change approved by the DPU in the 2022 rate case that shifted the recovery of quarterly revenues and resulted in a decrease of $20.8 million. As part of the 2022 NSTAR Electric rate case decision, certain customer rates changed from seasonal demand charges to a single annual demand charge effective January 1, 2023, resulting ~~from its~~in a shift in the timing of revenues and earnings recognized quarterly in 2023, as compared to 2022, but with no impact on an annual ~~Performance Based Rate Adjustment filing.~~basis. This rate design change results in higher revenues in each of the first and fourth quarters of 2023 of approximately $21 million, offset by lower revenues in the third quarter of 2023 of approximately $42 million, as compared to the same periods in 2022.

•PSNH's distribution revenues ~~increased $5.4~~decreased $3.5 million due primarily to ~~the impact~~a decrease in sales volumes as a result of ~~its base distribution rate increase effective August 1, 2021~~milder weather in 2023 compared to ~~reflect plant additions in calendar year 2020 included in its revenue requirement.~~2022.

Electric distribution revenues at CL&P also increased $93.4 million for the nine months ended September 30, 2022, as compared to the same period in 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 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, which were distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. 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 was provided as credits to 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.

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 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, net metering for distributed 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 distribution revenues increased/(decreased) for the nine ~~months ended September 30, 2022, as compared to the same~~month period, ~~in 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	$	397.3	$	117.0	$	188.4	Energy supply procurement	$	489.4	$	144.7	$	45.9
CL&P FMCC								CL&P FMCC	(343.4)		—		—
Retail transmission	Retail transmission	94.8		135.3		(6.1)		Retail transmission	21.6		(86.7)		(32.1)
Energy Efficiency		4.8		31.0		2.1
Stranded costs		(2.7)		(11.7)		(45.5)
Other distribution tracking mechanisms	Other distribution tracking mechanisms	1.0		19.5		(1.0)		Other distribution tracking mechanisms	13.7		(44.3)		16.2
Wholesale Market Sales Revenue	Wholesale Market Sales Revenue	378.2		98.4		38.5		Wholesale Market Sales Revenue	(325.9)		(61.0)		(23.9)

The increase in energy supply procurement at CL&P, ~~and~~ NSTAR Electric and PSNH 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 higher average prices and higher~~ average supply-related sales volumes.

The decrease in CL&P’s FMCC revenues was driven by a decrease in the retail Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) rate, which reflects the impact of returning net benefits of higher wholesale market sales received in the ISO-NE market for long-term state approved energy contracts at CL&P, which are then credited back to customers through the retail NBFMCC rate. CL&P’s average NBFMCC rate in effect from January 1, 2022 through April 30, 2022 was $0.01423 per kWh and from May 1 through August 31, 2022 was $0.01251 per kWh. As a result of the CL&P RAM proceeding in Docket No. 22-01-03, CL&P reduced the average NBFMCC rate effective September 1, 2022 from $0.01251 per kWh to $0.00000 per kWh. As part of a November 2022 rate relief plan, CL&P further reduced the average NBFMCC rate effective January 1, 2023 to a credit of $0.01524 per kWh. These rate reductions returned to customers the net revenues generated by long-term state-approved energy contracts with the Millstone and Seabrook nuclear power plants. The average NBFMCC rate changed to $0.00000 per kWh effective July 1, 2023. As a result of the 2023 CL&P RAM decision, the average NBFMCC rate changed to $0.00293 per kWh effective September 1, 2023.

The ~~increase~~decrease in wholesale market sales revenue for the nine month period was due primarily to ~~higher~~lower average electricity market prices received for wholesale sales at CL&P, NSTAR Electric and PSNH. ISO-NE average market prices received for CL&P’s wholesale sales ~~increased approximately 116 percent~~decreased to an average price of $38.16 per MWh for the nine months ended September 30, ~~2022,~~2023, as compared to $86.13 per MWh for the same period in ~~2021,~~2022, driven primarily by ~~higher~~lower 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~~&P’s 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 CL&P 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 ~~$49.3~~$10.6 million at CL&P, ~~$50.4~~$20.5 million at NSTAR Electric, and ~~$31.8~~$37.7 million at PSNH for the nine ~~months ended September 30, 2022, as compared to the same~~month period, ~~in 2021,~~ due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Eliminations: Eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business in rates charged to their customers. The impact of eliminations ~~decreased~~increased revenues by ~~$55.6~~$5.5 million at CL&P ~~$58.4~~and $2.1 million at PSNH and decreased revenues by $8.1 million at NSTAR Electric ~~and $18.6 million at PSNH~~ for the nine ~~months ended September 30, 2022, as compared to the same period in 2021.~~month period.

Purchased Power and Transmission expense includes costs associated with ~~purchasing electricity on behalf of CL&P, NSTAR Electric and PSNH's~~providing electric generation service supply to all customers ~~and~~who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as required by ~~regulation.~~regulation, and transmission costs. These energy supply ~~and~~procurement, other energy-related costs, and transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). The variance in Purchased Power and Transmission expense ~~increased for the nine months ended September 30, 2022, as compared to the same period in 2021,~~is 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		$	461.8	$	182.8	$	187.2
Transmission Costs		103.3		135.6		3.8
Energy supply procurement costs								Energy supply procurement costs	$	484.2	$	142.1	$	44.3
Other electric distribution costs								Other electric distribution costs	37.4		(82.4)		30.2
Transmission costs								Transmission costs	25.8		(86.8)		(29.0)
Eliminations	Eliminations	(53.3)		(58.3)		(18.5)		Eliminations	4.0		(8.2)		2.1
Total Purchased Power and Transmission	Total Purchased Power and Transmission	$	511.8	$	260.1	$	172.5	Total Purchased Power and Transmission	$	551.4	$	(35.3)	$	47.6

~~Purchased Power Costs: Included~~The variance 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 increase at CL&P was due primarily to higher~~ energy supply procurement costs ~~resulting from higher average prices, partially~~is offset ~~by lower average supply-related volumes.~~in Operating Revenues (tracked energy supply procurement revenues). The ~~increase was also~~variance in other electric distribution costs at CL&P is due to higher long-term contractual energy-related ~~costs and higher net metering~~ costs that are recovered in the non-bypassable component of the FMCC ~~mechanism.~~

•~~The increase~~mechanism, at NSTAR Electric ~~was~~is due to a decrease in long-term renewable contract costs and a decrease in net metering costs, and at PSNH is due primarily to 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~~net-metering costs.

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

•The decrease in transmission costs at NSTAR Electric and PSNH ~~this~~ was due primarily to a decrease resulting from the retail transmission cost deferral and a decrease in costs billed by ISO-NE. These were partially offset by ~~a decrease~~an increase in Local Network Service ~~charges, which reflect the cost of transmission service provided by Eversource over our local transmission network.~~charges.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). The variance in Operations and Maintenance expense ~~increased for the nine months ended September 30, 2022, as compared to the same period in 2021,~~is 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):
General costs (including outside corporate services, insurance, fees and assessments)		$	11.1	$	8.4	$	4.1
Storm costs								Storm costs	$	11.3	$	0.4	$	(3.0)
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		Shared corporate costs (including computer software depreciation at Eversource Service)	8.1		13.9		2.7
Storm costs		6.6		(2.8)		5.8
Operations-related expenses (including vegetation management, outside services and vehicles)		5.6		(1.2)		1.3
Employee-related expenses, including labor and benefits		5.3		1.7		2.8
Absence in 2022 of CL&P charge to fund various customer assistance initiatives associated with the settlement agreement on October 1, 2021		(10.0)		—		—
General costs (including vendor services in corporate areas, bad debt expense, insurance, fees and assessments)								General costs (including vendor services in corporate areas, bad debt expense, insurance, fees and assessments)	1.3		5.7		4.1
Vegetation management								Vegetation management	(2.8)		2.0		(3.3)
Other non-tracked operations and maintenance	Other non-tracked operations and maintenance	(0.1)		5.2		(0.7)		Other non-tracked operations and maintenance	(3.2)		(5.3)		(2.2)
Operations-related expenses (including vendor services and vehicles)								Operations-related expenses (including vendor services and vehicles)	(4.6)		0.1		1.4
Employee-related expenses (including labor and benefits)								Employee-related expenses (including labor and benefits)	(4.9)		(6.0)		0.7
Total Base Electric Distribution (Non-Tracked Costs)	Total Base Electric Distribution (Non-Tracked Costs)	25.0		21.1		15.6		Total Base Electric Distribution (Non-Tracked Costs)	5.2		10.8		0.4
Tracked Costs:	Tracked Costs:							Tracked Costs:
Transmission expenses	Transmission expenses	17.7		7.2		8.8		Transmission expenses	(7.4)		0.3		2.0
Other tracked operations and maintenance	Other tracked operations and maintenance	7.6		25.8		1.5		Other tracked operations and maintenance	12.0		0.2		21.0
Total Tracked Costs	Total Tracked Costs	25.3		33.0		10.3		Total Tracked Costs	4.6		0.5		23.0
Total Operations and Maintenance	Total Operations and Maintenance	$	50.3	$	54.1	$	25.9	Total Operations and Maintenance	$	9.8	$	11.3	$	23.4

Depreciation expense increased for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances. The increase at NSTAR Electric was partially offset by a decrease in approved depreciation rates as part of the rate case decision effective January 1, 2023.

Amortization of Regulatory (Liabilities)/Assets, Net expense includes the deferral of ~~energy supply,~~ energy-related costs and other costs that are included in certain ~~regulatory-approved~~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~~These 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 (Liabilities)/Assets, Net ~~increased/~~decreased for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to the following:

•Th~~e increase~~The decrease 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~~decrease in the FMCC mechanism was ~~partially offset~~driven primarily by the CL&P November 2022 rate relief plan, which reduced the non-bypassable FMCC rate effective January 1, 2023. The reduction in the CL&P non-bypassable FMCC retail rate decreased the regulatory over-recovery balance, which resulted in a decrease ~~in storm~~to amortization expense ~~related to~~of $717.3 million in the ~~completion of the amortization period of certain storm cost deferred assets.~~nine month period.

•The ~~increase~~decrease at NSTAR Electric was due to the deferral adjustment of ~~energy supply,~~ energy-related costs and other tracked ~~costs.~~costs, partially offset by an increase due to the amortization of historical exogenous property taxes that were approved for recovery effective January 1, 2023 in the November 2022 NSTAR Electric distribution rate case decision.

•The decrease at PSNH was due to the deferral adjustment of energy-related and other tracked ~~costs.~~costs, as well as the impact of a new regulatory tracking mechanism at PSNH that allows for the recovery of operating expenses associated with poles acquired from Consolidated Communications on May 1, 2023. The establishment of the PPAM regulatory asset resulted in a pre-tax benefit of $16.9 million recorded in Amortization expense on the PSNH statement of income in the second quarter of 2023.

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. The variance in Energy Efficiency Programs expense~~increased/decreased~~ for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~is due primarily to the following:

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

•The ~~decrease~~increase at PSNH was due to the deferral adjustment and the timing of the recovery of energy efficiency costs.

Taxes Other Than Income Taxes increased at CL&P and NSTAR Electric for the nine ~~months ended September 30, 2022, as compared to the same~~month period, ~~in 2021,~~ due primarily to higher employment-related taxes based on the ~~following:~~

•Thetiming of payroll pay periods. 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~~is also due to higher property taxes as a result of higher utility plant ~~balances.~~balances and higher Connecticut gross earnings taxes.

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

•The increase at CL&P was due to higher interest on long-term debt ($~~0.8~~15.4 million), higher interest on short-term notes payable ($6.4 million), and an increase in interest expense on regulatory deferrals ($~~0.8 million), and higher amortization of debt discounts and premiums, net ($0.3~~1.7 million), partially offset by an increase in capitalized AFUDC related to debt funds ($~~1.1~~2.3 million) and lower amortization of debt discounts and premiums, net ($0.2 million).

•The increase at NSTAR Electric was due to higher interest on long-term debt ($~~11.8~~14.7 million), higher interest on short-term notes payable ($6.5 million), and an increase in interest expense on regulatory deferrals ($~~2.3~~6.0 million), ~~higher amortization of debt discounts and premiums, net ($0.5 million), and a decrease~~partially offset by an increase in capitalized AFUDC related to debt funds ($~~0.2~~5.0 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~~long-term debt ($~~1.8~~11.4 million), and higher interest on short-term notes payable ($~~1.1 million), and higher interest on long-term debt ($0.6~~4.3 million), partially offset by ~~lower amortization of~~an increase in capitalized AFUDC related to debt ~~discounts~~funds ($2.6 million) and ~~premiums, net ($1.6 million),~~ a decrease in RRB interest expense ($1.0 million) ~~and an increase in capitalized AFUDC related to debt funds ($0.3 million)~~.

Other Income, Net ~~increased~~changed for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to the following:

•The ~~increase~~decrease at CL&P was due primarily to ~~an increase~~a decrease related to pension, SERP and PBOP non-service income components ($~~37.1~~23.4 million), partially offset by an increase in capitalized AFUDC related to equity funds ($~~4.2~~4.6 million) ~~and~~, an increase in interest income primarily on regulatory deferrals ($~~0.5~~3.4 million)~~, partially offset by~~ and lower investment losses ~~in 2022 compared to investment income in 2021~~ driven by market volatility ($~~2.1~~0.7 million).

•The increase at NSTAR Electric was due primarily to an increase in interest income primarily on regulatory deferrals ($25.2 million), and an increase in capitalized AFUDC related to equity funds ($16.5 million), partially offset by a decrease related to pension, SERP and PBOP non-service income components ($~~33.7~~22.3 million) and lower investment income driven by market volatility ($0.1 million).

•The decrease at PSNH was due primarily to a decrease related to pension, SERP and PBOP non-service income components ($8.3 million) and lower investment income driven by market volatility ($0.5 million), partially offset by an increase in interest income primarily on regulatory deferrals ($~~10.0 million), partially offset by a decrease in capitalized AFUDC related to equity funds ($1.1 million).~~

•~~The increase at PSNH was due primarily to an increase related to pension, SERP and PBOP non-service income components ($12.2~~2.5 million) and an increase in capitalized AFUDC related to equity funds ($~~0.5 million), partially offset by a decrease in interest income primarily on regulatory deferrals ($0.9~~1.7 million).

Income Tax Expense ~~increased/decreased~~increased for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to the following:

•The increase at CL&P was due primarily to higher ~~pre-tax earnings~~return to provision adjustments ($~~33.5~~7.2 million), ~~higher state taxes ($0.7 million), and~~ lower share-based payment excess tax benefits ($~~0.7~~0.9 million), higher state taxes ($0.8 million), and an increase in valuation allowances ($7.8 million), partially offset by ~~a decrease in return to provision adjustments~~lower pre-tax earnings ($~~6.3~~1.3 million), an increase in amortization of EDIT ($~~1.5~~0.2 million), and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~5.4~~0.5 million).

•The ~~decrease~~increase at NSTAR Electric was due primarily to ~~an increase in amortization of EDIT ($9.7 million), partially offset by an increase in~~higher pre-tax earnings ($~~2.9~~8.9 million), higher state taxes ($~~0.7~~0.8 million), lower share-based payment excess tax benefits ($~~0.6~~1.0 million), and a decrease in amortization of EDIT ($2.0 million), partially offset by a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($3.3 million).

•The increase at PSNH was due primarily to higher pre-tax earnings ($5.5 million), higher state taxes ($1.4 million), a decrease in amortization of EDIT ($1.6 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~1.6 million).~~

•The increase at PSNH was due primarily to higher pre-tax earnings ($3.0 million), higher state taxes ($1.8 million), a decrease in amortization of EDIT ($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 ($1.00.2 million), partially offset by ~~a decrease in~~lower return to provision adjustments ($~~2.3~~0.5 million).

EARNINGS SUMMARY

CL&P's earnings ~~increased $138.0~~decreased $21.0 millionfor the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to the absence in 2022 of the October 1, 2021 settlement agreement that resulted in a $75 million pre-tax charge to earnings and a $28.6 million pre-tax charge to earnings for 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 2021. The after-tax impact of the settlement agreement and storm performance penalty imposed by the PURA was $85.8 million. Earnings were also favorably impacted by higher earnings from its capital tracking mechanism due to increased electric system improvements, an increase in transmission earnings driven by a higher ~~transmission rate base, lower pension plan expense, and 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. The earnings increase was partially offset by~~higher interest expense, higher operations and maintenance expense, higher depreciation expense, and higher property and other tax expense. The earnings decrease was partially offset by higher earnings from its capital tracking mechanism due to increased electric system improvements.

NSTAR Electric's earnings increased ~~$18.0~~$33.0 million for the nine ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to higher revenues as a result of the base distribution rate increase effective January 1, ~~2022,~~2023, an increase in interest income primarily on regulatory deferrals, an increase in transmission earnings driven by a higher transmission rate base, and ~~an increase in interest income primarily on regulatory deferrals.~~higher AFUDC equity income. The earnings increase was partially offset by ~~higher operations and maintenance expense,~~the rate design change approved by the DPU in the 2022 rate case that shifted the recovery of quarterly revenues, higher property and other tax expense, higher ~~depreciation~~interest expense, higher operations and maintenance expense, and higher ~~interest~~depreciation expense.

PSNH's earnings increased ~~$10.6~~$17.9 million for the nine ~~months ended September 30, 2022, as compared~~month period due primarily to the ~~same period in 2021, due primarily to~~impact of a new regulatory tracking mechanism at PSNH that allows for the recovery of previously incurred operating expenses associated with poles acquired on May 1, 2023 and 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.~~base. The earnings increase was partially offset by higher ~~operations~~interest expense 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.lower sales volumes.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of ~~$554.3~~$320.0 million for the nine months ended September 30, ~~2022,~~2023, as compared to ~~$450.6~~$554.3 million in the same period of ~~2021.~~2022. The ~~increase~~decrease in operating cash flows was due primarily to an increase in regulatory ~~over-recoveries (excluding storm payments)~~under-recoveries driven primarily by the timing of collections for the non-bypassable FMCC, the SBC and other regulatory tracking mechanisms, ~~the absence in 2022 of pension contributions of $78.9 million made in 2021,~~ and the timing of cash payments made on our accounts payable. In 2023, CL&P increased the flow back to customers of net revenues generated by long-term state-approved energy contracts by providing these credits to customers through the non-bypassable FMCC retail rate. The reduction in the non-bypassable FMCC retail rate decreased the regulatory over-recovery balance, which resulted in a decrease to amortization expense of $717.3 million in the first nine months of 2023, as compared to the first nine months of 2022, and is presented as a cash outflow in Amortization of Regulatory (Liabilities)/Assets on the statement of cash flows. The impact of regulatory collections are included in both Regulatory ~~Over/Under~~ Recoveries and Amortization of Regulatory (Liabilities)/Assets on the statements of cash flows. These ~~favorable~~unfavorable impacts were partially offset by the timing of cash collections on our accounts receivable, a $123.0 million increase in operating cash flows due to income tax refunds received in 2023 compared to income tax payments in 2022, the absence in 2023 of $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~~a $43.2 million decrease 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 ~~$634.6~~$529.0 million for the nine months ended September 30, ~~2022,~~2023, as compared to ~~$617.3~~$634.6 million in the same period of ~~2021.~~2022. The ~~increase~~decrease 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)~~under-recoveries driven by the timing of collections for regulatory tracking mechanisms including transmission, net metering, long-term renewable contracts and transition costs, the timing of other working capital items, a $32.1 million decrease in income tax refunds received in 2023 compared to 2022, an increase in cost of removal expenditures, the timing of cash collections on our accounts receivable, and the timing of cash payments made on our accounts ~~payable, and the timing of other working capital items.~~payable. 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~~unfavorable impacts were partially offset by ~~an increase~~the absence in 2023 of ~~$109.8~~$76.1 million of payments in 2022 related to withheld property taxes, a $75.6 million decrease in cash payments for storm costs, ~~a $76.1 million payment~~and the absence in ~~the second quarter~~2023 of ~~2022 related to withheld property taxes, and an increase of $5.0 million in~~ pension contributions of $15.0 million made in ~~2022, as compared to 2021.~~2022.

PSNH had cash flows used in operating activities of $12.9 million for the nine months ended September 30, 2023, as compared to cash flows provided by operating activities of $246.7 million ~~for the nine months ended September 30, 2022, as compared to $237.2 million~~ in the same period of ~~2021.~~2022. The ~~increase~~decrease in operating cash flows was due primarily to an increase in regulatory under-recoveries driven by the timing of collections for regulatory tracking mechanisms including energy supply, stranded costs, retail transmission and wholesale transmission, a $106.1 million increase in cash payments for storm costs, the timing of cash payments made on our accounts payable, the timing of other working capital items, and an increase in ~~regulatory over-recoveries driven by the timing~~cost of ~~collections for regulatory tracking mechanisms.~~removal expenditures. The impact of regulatory collections are included in both Regulatory ~~Over/Under~~ Recoveries and Amortization of Regulatory (Liabilities)/Assets on the statements of cash flows. These ~~favorable~~unfavorable impacts were partially offset by a $107.3 million increase in operating cash flows due to income tax refunds received in 2023 compared to income tax payments in 2022, and the timing of cash collections on our accounts 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.receivable.

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, ~~2022~~2023 and ~~2021~~2022 included in this combined Quarterly Report on Form 10-Q:


		For the Three Months Ended September 30,							For the Three Months Ended September 30,
(Millions of Dollars)	(Millions of Dollars)	2022		2021		Increase/(Decrease)		(Millions of Dollars)	2023		2022		Increase/(Decrease)
Operating Revenues	Operating Revenues	$	1,369.1	$	919.6	$	449.5	Operating Revenues	$	1,190.1	$	1,369.1	$	(179.0)
Operating Expenses:	Operating Expenses:							Operating Expenses:
Purchased Power and Transmission	Purchased Power and Transmission	641.1		392.3		248.8		Purchased Power and Transmission	660.0		641.1		18.9
Operations and Maintenance	Operations and Maintenance	189.9		137.8		52.1		Operations and Maintenance	198.8		189.9		8.9
Depreciation	Depreciation	89.5		85.3		4.2		Depreciation	95.2		89.5		5.7
Amortization of Regulatory Assets, Net		105.8		28.9		76.9
Amortization of Regulatory (Liabilities)/Assets, Net								Amortization of Regulatory (Liabilities)/Assets, Net	(113.2)		105.8		(219.0)
Energy Efficiency Programs	Energy Efficiency Programs	37.9		35.7		2.2		Energy Efficiency Programs	39.9		37.9		2.0
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes	104.2		99.9		4.3		Taxes Other Than Income Taxes	107.0		104.2		2.8
Total Operating Expenses	Total Operating Expenses	1,168.4		779.9		388.5		Total Operating Expenses	987.7		1,168.4		(180.7)
Operating Income	Operating Income	200.7		139.7		61.0		Operating Income	202.4		200.7		1.7
Interest Expense	Interest Expense	42.4		42.7		(0.3)		Interest Expense	52.5		42.4		10.1
Other Income, Net	Other Income, Net	21.9		6.9		15.0		Other Income, Net	18.3		21.9		(3.6)
Income Before Income Tax Expense	Income Before Income Tax Expense	180.2		103.9		76.3		Income Before Income Tax Expense	168.2		180.2		(12.0)
Income Tax Expense	Income Tax Expense	36.9		33.7		3.2		Income Tax Expense	48.8		36.9		11.9
Net Income	Net Income	$	143.3	$	70.2	$	73.1	Net Income	$	119.4	$	143.3	$	(23.9)

Operating Revenues

Sales Volumes: CL&P's retail electric GWh sales volumes were ~~5,862~~5,692 and ~~5,776~~5,862 for the three months ended September 30, ~~2022~~2023 and ~~2021,~~2022, respectively, resulting in ~~an increase~~a decrease of ~~1.5~~2.9 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, ~~increased $449.5~~decreased $179.0 million for the three ~~months ended September 30, 2022, as compared to the same period in 2021.~~month period.

Base Distribution Revenues: CL&P's base distribution revenues were flat.

Electric distribution revenues also increased $93.4 million for the three months ended September 30, 2022, as compared to the same period in 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 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, which were distributed based on customer sales over a two-month period from December 1, 2021 to January 31, 2022. 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 was provided as credits to 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.

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


(Millions of Dollars)
Retail Tariff Tracked Revenues:

~~Energy supply procurement~~FMCC	$	~~199.2~~ (75.1)
Retail transmission	~~31.5~~12.0
Other distribution tracking mechanisms	~~(5.2)~~4.2
Wholesale Market Sales Revenue	~~132.6~~ (120.1)

~~The increase in energy supply procurement was driven by higher average 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 and Transmission Expense" below.

The ~~increase~~decrease in ~~electric distribution~~CL&P’s FMCC revenues was driven by a decrease in the retail Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) rate, which reflects the impact of returning net benefits of higher wholesale market sales received in the ISO-NE market for long-term state approved energy contracts at CL&P, which are then credited back to customers through the retail NBFMCC rate. CL&P’s average NBFMCC rate in effect from January 1, 2022 through April 30, 2022 was $0.01423 per kWh and from May 1 through August 31, 2022 was $0.01251 per kWh. As a result of the CL&P RAM proceeding in Docket No. 22-01-03, CL&P reduced the average NBFMCC rate effective September 1, 2022 from $0.01251 per kWh to $0.00000 per kWh. As part of a November 2022 rate relief plan, CL&P further reduced the average NBFMCC rate effective January 1, 2023 to a credit of $0.01524 per kWh. These rate reductions returned to customers the net revenues generated by long-term state-approved energy contracts with the Millstone and Seabrook nuclear power plants. The average NBFMCC rate changed to $0.00000 per kWh effective July 1, 2023. As a result of the 2023 CL&P RAM decision, the average NBFMCC rate changed to $0.00293 per kWh effective September 1, 2023.

The decrease in wholesale market sales revenue for the three month period was due primarily to ~~higher~~lower average electricity market prices received for wholesale sales. ISO-NE average market prices received for CL&P’s wholesale sales ~~increased approximately 91 percent~~decreased to an average price of $32.17 per MWh for the three months ended September 30, ~~2022,~~2023, as compared to $81.50 per MWh for the same period in ~~2021,~~2022, driven primarily by ~~higher~~lower 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~~&P’s 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 CL&P 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 ~~$16.2~~$2.3 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.~~business in rates charged to customers. The impact of eliminations decreased revenues by ~~$13.7~~$3.3 million.

Purchased Power and Transmission expense includes costs associated with ~~purchasing electricity on behalf of~~providing electric generation service supply to all CL~~&P's~~&P customers ~~and~~who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as required by ~~regulation.~~regulation, and transmission costs. These energy supply ~~and~~procurement, other energy-related costs, and transmission costs are recovered from customers in PURA-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). The variance in Purchased Power and Transmission expense ~~increased for the three months ended September 30, 2022, as compared to the same period in 2021,~~is due primarily to the following:


(Millions of Dollars)
~~Purchased Power Costs~~Energy supply procurement costs	$	~~225.8~~(7.2)
Other distribution costs	23.7
Transmission ~~Costs~~costs	~~36.6~~5.7
Eliminations	~~(13.6)~~(3.3)
Total Purchased Power and Transmission	$	~~248.8~~18.9

The ~~increase~~variance in ~~purchased power costs was due primarily to higher~~ energy supply procurement costs ~~resulting from higher average prices and higher average supply-related volumes.~~is offset in Operating Revenues (tracked energy supply procurement revenues). The increase in other distribution costs was ~~also~~ due to higher long-term contractual energy-related ~~costs and higher net metering~~ costs that are recovered in the non-bypassable component of the FMCC mechanism.

The increase in transmission costs was due primarily to an increase resulting from the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to ~~customers. This was~~customers and an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network. These were 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). The variance in Operations and Maintenance expense ~~increased for the three months ended September 30, 2022, as compared to the same period in 2021,~~is due primarily to the following:


(Millions of Dollars)
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~~costs	$	~~28.4~~ 14.7
Vegetation management	3.9
Shared corporate costs (including computer software depreciation at Eversource Service)	2.4
Operations-related expenses (including employee-related expenses, including labor and benefits, vendor services and vehicles)	(3.7)
General costs (including ~~outside~~vendor services in corporate ~~services,~~areas, bad debt expense, 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)~~(3.3)
Other non-tracked operations and maintenance	~~3.1~~0.6
Total Base Electric Distribution (Non-Tracked Costs)	~~38.9~~14.6
Total Tracked Costs ~~- Increase due primarily to higher transmission expenses~~	~~13.2~~ (5.7)
Total Operations and Maintenance	$	~~52.1~~8.9

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

Amortization of Regulatory (Liabilities)/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.~~mechanisms. This deferral adjusts expense to match the corresponding ~~revenues. Energy supply and energy-related~~revenues compared to the actual costs incurred. These 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 (Liabilities)/Assets, Net ~~increased~~decreased for the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to the deferral adjustment of ~~energy supply,~~ energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The decrease in the FMCC mechanism was driven primarily by the CL&P November 2022 rate relief plan, which reduced the non-bypassable FMCC rate effective January 1, 2023. The reduction in the CL&P non-bypassable FMCC retail rate decreased the regulatory over-recovery balance, which resulted in a decrease to amortization expense of $210.3 million in the three month period.

Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense increased for the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 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 ~~Taxe~~sTaxes increased fat CL&P for the ~~or the~~ three ~~months ended September 30, 2022, as compared to the same~~ month period ~~in 2021,~~ due primarily to higher ~~property~~employment-related taxes ~~as a result~~based on the timing of apayroll pay periods and higher ~~utility plant balance and higher~~Connecticut gross earnings taxes.

Interest Expense increased for the three month period due primarily to higher interest on long-term debt ($7.5 million), an increase in interest expense on regulatory deferrals ($1.6 million), and higher interest on short-term notes payable ($1.6 million), partially offset by an increase in capitalized AFUDC related to debt funds ($0.6 million).

Other Income, Net ~~increased~~decreased for the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to ~~an increase~~a decrease related to pension, SERP and PBOP non-service income components ($~~12.0~~9.2 million), partially offset by an increase in interest income primarily from regulatory deferrals ($2.8 million), an increase in capitalized AFUDC related to equity funds ($~~2.0~~1.5 million), ~~an increase in interest income primarily from regulatory deferrals ($0.5 million),~~ and higher investment income ~~in 2022 compared to investment losses in 2021~~ driven by market volatility ($~~0.5~~1.3 million).

Income Tax Expense increased for the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to ~~higher pre-tax earnings~~an increase in valuation allowances ($~~16.0~~5.0 million), ~~partially offset by lower state taxes ($0.5 million), a decrease in~~higher return to provision adjustments ($~~6.3~~7.2 million), and ~~a decrease~~an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($~~6.0~~2.7 million), partially offset by lower pre-tax earnings ($2.5 million) and lower state taxes ($0.5 million).

EARNINGS SUMMARY

CL&P's earnings ~~increased $73.1~~decreased $23.9 millionfor the three ~~months ended September 30, 2022, as compared to the same~~month period ~~in 2021,~~ due primarily to the absence in 2022 of the October 1, 2021 settlement agreement that resulted in a $75 million pre-tax charge to earnings recorded in 2021. The after-tax impact of the settlement agreement was $63.2 million. Earnings were also favorably impacted by an increase in transmission earnings driven by a higher ~~transmission~~effective tax rate, ~~base,~~higher operations and maintenance expense, higher interest expense, and higher depreciation expense. The earnings decrease was partially offset by 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.improvements.

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 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, ~~2022,~~2023, our regulated companies held collateral (letters of credit or cash) of ~~$75.4~~$32.0 million from counterparties related to our standard service contracts. As of September 30, ~~2022,~~2023, Eversource had ~~$35.4~~$28.5 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 ~~2021~~2022 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 ~~2021~~2022 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, ~~2022~~2023 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, ~~2022~~2023 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

6665

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 ~~2021~~2022 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 ~~2021~~2022 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 ~~2021~~2022 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. There have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our ~~2021~~2022 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, 2022 — $ — — —
August 1 - August 31, 2022 — — — —
September 1 - September 30, 2022 2,430 79.15 — —
Total 2,430 $ 79.15 — —


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, 2023	—	$	—	—	—
August 1 - August 31, 2023	—	—		—	—
September 1 - September 30, 2023	3,239	58.52		—	—
Total	3,239	$	58.52	—	—

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the quarter ended September 30, 2023, none of the Company’s directors or officers adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as such terms are defined under Item 408 of Regulation S-K.

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)
	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 and Chief Executive Officer 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 Chief Executive Officer 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 ~~4.95%~~5.60% Debenture due ~~September 15, 2052~~October 1, 2028 (Exhibit 4.1, NSTAR Electric Company Current Report on Form 8-K filed on September ~~15, 2022,~~25, 2023, File No. 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)
*	4	Twenty-Sixth Supplemental Indenture, between PSNH and U.S. Bank Trust Company, National Association, as Trustee dated as of September 1, 2023 (Exhibit 4.1, PSNH Current Report on Form 8-K filed on September 25, 2023 (File No. 001-06392)

	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

			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, ~~2022,~~2023, 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 ~~4, 2022~~7, 2023	By:	/s/ ~~John M. Moreira~~Jay S. Buth
		~~John M. Moreira~~Jay S. Buth
		~~Executive~~ Vice President, Controller and Chief ~~Financial~~Accounting Officer ~~and Treasurer~~
		~~(Principal Financial Officer)~~

SIGNATURE


	THE CONNECTICUT LIGHT AND POWER COMPANY

November ~~4, 2022~~7, 2023	By:	/s/ ~~John M. Moreira~~Jay S. Buth
		~~John M. Moreira~~Jay S. Buth
		~~Executive~~ Vice President, Controller and Chief ~~Financial~~Accounting Officer ~~and Treasurer~~
		~~(Principal Financial Officer)~~

SIGNATURE


	NSTAR ELECTRIC COMPANY

November ~~4, 2022~~7, 2023	By:	/s/ ~~John M. Moreira~~Jay S. Buth
		~~John M. Moreira~~Jay S. Buth
		~~Executive~~ Vice President, Controller and Chief ~~Financial~~Accounting Officer ~~and Treasurer~~
		~~(Principal Financial Officer)~~

SIGNATURE


	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

November ~~4, 2022~~7, 2023	By:	/s/ ~~John M. Moreira~~Jay S. Buth
		~~John M. Moreira~~Jay S. Buth
		~~Executive~~ Vice President, Controller and Chief ~~Financial~~Accounting Officer ~~and Treasurer~~
		~~(Principal Financial Officer)~~

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