UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended June 30, 2018
	or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________

Commission File Number	Registrant; State of Incorporation; Address; and Telephone Number	I.R.S. Employer Identification No.
1-5324	EVERSOURCE ENERGY (a Massachusetts voluntary association) 300 Cadwell Drive Springfield, Massachusetts 01104 Telephone:  (800) 286-5000	04-2147929
0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY (a Connecticut corporation) 107 Selden Street Berlin, Connecticut 06037-1616 Telephone:  (800) 286-5000	06-0303850
1-02301	NSTAR ELECTRIC COMPANY (a Massachusetts corporation) 800 Boylston Street Boston, Massachusetts 02199 Telephone:  (800) 286-5000	04-1278810
1-6392	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE (a New Hampshire corporation) Energy Park 780 North Commercial Street Manchester, New Hampshire 03101-1134 Telephone:  (800) 286-5000	02-0181050

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

Yes	No
x	¨

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

Yes	No
x	¨

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

	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
Eversource Energy	x	¨	¨	¨	¨
The Connecticut Light and Power Company	¨	¨	x	¨	¨
NSTAR Electric Company	¨	¨	x	¨	¨
Public Service Company of New Hampshire	¨	¨	x	¨	¨

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

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

	Yes	No
Eversource Energy	¨	x
The Connecticut Light and Power Company	¨	x
NSTAR Electric Company	¨	x
Public Service Company of New Hampshire	¨	x

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

Company - Class of Stock	Outstanding as of July 31, 2018
Eversource Energy Common Shares, $5.00 par value	316,885,808 shares
The Connecticut Light and Power Company Common Stock, $10.00 par value	6,035,205 shares
NSTAR Electric Company Common Stock, $1.00 par value	200 shares
Public Service Company of New Hampshire Common Stock, $1.00 par value	301 shares

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

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

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

GLOSSARY OF TERMS

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

Current or former Eversource Energy companies, segments or investments:
Eversource, ES or the Company	Eversource Energy and subsidiaries
Eversource parent or ES parent	Eversource Energy, a public utility holding company
ES parent and other companies	ES parent and other companies are comprised of Eversource parent, Eversource Service and other subsidiaries, which primarily includes our unregulated businesses, HWP Company, The Rocky River Realty Company (a real estate subsidiary), and the consolidated operations of CYAPC and YAEC
CL&P	The Connecticut Light and Power Company
NSTAR Electric	NSTAR Electric Company
PSNH	Public Service Company of New Hampshire
NSTAR Gas	NSTAR Gas Company
Yankee Gas	Yankee Gas Services Company
Aquarion	Eversource Aquarion Holdings, Inc and its subsidiaries (formerly known as Macquarie Utilities Inc)
NPT	Northern Pass Transmission LLC
Northern Pass	The HVDC and associated alternating-current transmission line project from Canada into New Hampshire
Eversource Service	Eversource Energy Service Company
Bay State Wind	A project being developed jointly by Eversource and Denmark-based Ørsted (formerly known as DONG Energy) to construct an offshore wind farm off the coast of Massachusetts
CYAPC	Connecticut Yankee Atomic Power Company
MYAPC	Maine Yankee Atomic Power Company
YAEC	Yankee Atomic Electric Company
Yankee Companies	CYAPC, YAEC and MYAPC
Regulated companies	The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, NPT, Aquarion, the generation facilities of PSNH, and the solar power facilities of NSTAR Electric
Regulators:
DEEP	Connecticut Department of Energy and Environmental Protection
DOE	U.S. Department of Energy
DOER	Massachusetts Department of Energy Resources
DPU	Massachusetts Department of Public Utilities
EPA	U.S. Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
ISO-NE	ISO New England, Inc., the New England Independent System Operator
MA DEP	Massachusetts Department of Environmental Protection
NHPUC	New Hampshire Public Utilities Commission
PURA	Connecticut Public Utilities Regulatory Authority
SEC	U.S. Securities and Exchange Commission
SJC	Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
Access Northeast	A project being developed jointly by Eversource, Enbridge, Inc. ("Enbridge"), and National Grid plc ("National Grid") through Algonquin Gas Transmission, LLC to bring needed additional natural gas pipeline and storage capacity to New England.
ADIT	Accumulated Deferred Income Taxes
AFUDC	Allowance For Funds Used During Construction
AOCI	Accumulated Other Comprehensive Income
ARO	Asset Retirement Obligation
Bcf	Billion cubic feet
C&LM	Conservation and Load Management
CfD	Contract for Differences
Clean Air Project	The construction of a wet flue gas desulphurization system, known as "scrubber technology," to reduce mercury emissions of the Merrimack coal-fired generation station in Bow, New Hampshire
CO2	Carbon dioxide
CTA	Competitive Transition Assessment
CWIP	Construction Work in Progress
EDC	Electric distribution company
EPS	Earnings Per Share
ERISA	Employee Retirement Income Security Act of 1974

i

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

ii

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 Cash Flows	3
	The Connecticut Light and Power Company (Unaudited)
	Condensed Balance Sheets	4
	Condensed Statements of Income	5
	Condensed Statements of Comprehensive Income	5
	Condensed Statements of Cash Flows	6
	NSTAR Electric Company and Subsidiary (Unaudited)
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statements of Income	8
	Condensed Consolidated Statements of Comprehensive Income	8
	Condensed Consolidated Statements of Cash Flows	9
	Public Service Company of New Hampshire and Subsidiaries (Unaudited)
	Condensed Consolidated Balance Sheets	10
	Condensed Consolidated Statements of Income	11
	Condensed Consolidated Statements of Comprehensive Income	11
	Condensed Consolidated Statements of Cash Flows	12
	Combined Notes to Condensed Financial Statements (Unaudited)	13
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	37
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries	54
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	61
ITEM 4.	Controls and Procedures	61
PART II – OTHER INFORMATION
ITEM 1.	Legal Proceedings	62
ITEM 1A.	Risk Factors	62
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
ITEM 6.	Exhibits	63
SIGNATURES		65

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2018			As of December 31, 2017
ASSETS
Current Assets:
Cash and Cash Equivalents	$	64,154		$	38,165
Receivables, Net	967,590			925,083
Unbilled Revenues	160,301			201,361
Taxes Receivable	156,236			18,682
Fuel, Materials, Supplies and Inventory	171,601			223,063
Regulatory Assets	590,898			741,868
Prepayments and Other Current Assets	107,379			119,327
Assets Held for Sale	59,431			219,550
Total Current Assets	2,277,590			2,487,099
Property, Plant and Equipment, Net	24,476,890			23,617,463
Deferred Debits and Other Assets:
Regulatory Assets	4,805,440			4,497,447
Goodwill	4,427,266			4,427,266
Marketable Securities	576,440			585,419
Other Long-Term Assets	680,718			605,692
Total Deferred Debits and Other Assets	10,489,864			10,115,824
Total Assets	$	37,244,344		$	36,220,386
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	1,190,810		$	1,088,087
Long-Term Debt – Current Portion	387,296			549,631
Rate Reduction Bonds – Current Portion	30,727			—
Accounts Payable	1,010,389			1,085,034
Regulatory Liabilities	247,369			128,071
Other Current Liabilities	662,964			738,222
Total Current Liabilities	3,529,555			3,589,045
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	3,473,870			3,297,518
Regulatory Liabilities	3,689,679			3,637,273
Derivative Liabilities	394,459			377,257
Accrued Pension, SERP and PBOP	1,044,397			1,228,091
Other Long-Term Liabilities	1,069,391			1,073,501
Total Deferred Credits and Other Liabilities	9,671,796			9,613,640
Long-Term Debt	12,009,264			11,775,889
Rate Reduction Bonds	604,936			—
Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570			155,570
Common Shareholders' Equity:
Common Shares	1,669,392			1,669,392
Capital Surplus, Paid In	6,229,247			6,239,940
Retained Earnings	3,753,343			3,561,084
Accumulated Other Comprehensive Loss	(60,988		)	(66,403		)
Treasury Stock	(317,771		)	(317,771		)
Common Shareholders' Equity	11,273,223			11,086,242
Total Liabilities and Capitalization	$	37,244,344		$	36,220,386

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

1

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(Thousands of Dollars, Except Share Information)	2018		2017			2018		2017
Operating Revenues	$	1,853,856	$	1,762,811		$	4,141,818	$	3,867,946
Operating Expenses:
Purchased Power, Fuel and Transmission	653,915		549,704			1,600,662		1,303,353
Operations and Maintenance	293,858		310,193			626,406		648,500
Depreciation	199,140		189,881			403,406		376,686
Amortization	36,203		(7,807		)	81,397		16,210
Energy Efficiency Programs	101,955		116,398			236,196		262,556
Taxes Other Than Income Taxes	177,431		156,234			359,865		311,455
Total Operating Expenses	1,462,502		1,314,603			3,307,932		2,918,760
Operating Income	391,354		448,208			833,886		949,186
Interest Expense	126,404		107,329			247,533		210,758
Other Income, Net	50,149		29,022			83,938		50,641
Income Before Income Tax Expense	315,099		369,901			670,291		789,069
Income Tax Expense	70,452		137,272			154,219		295,103
Net Income	244,647		232,629			516,072		493,966
Net Income Attributable to Noncontrolling Interests	1,880		1,880			3,759		3,759
Net Income Attributable to Common Shareholders	$	242,767	$	230,749		$	512,313	$	490,207
Basic and Diluted Earnings Per Common Share	$	0.76	$	0.72		$	1.61	$	1.54
Dividends Declared Per Common Share	$	0.51	$	0.48		$	1.01	$	0.95
Weighted Average Common Shares Outstanding:
Basic	317,344,596		317,391,365			317,370,825		317,427,258
Diluted	317,885,187		317,947,194			317,939,094		318,035,864

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 June 30,						For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017			2018			2017
Net Income	$	244,647		$	232,629		$	516,072		$	493,966
Other Comprehensive Income/(Loss), Net of Tax:
Qualified Cash Flow Hedging Instruments	471			514			1,195			1,048
Changes in Unrealized (Losses)/Gains on   Marketable Securities	(144		)	960			(588		)	2,605
Changes in Funded Status of Pension, SERP and    PBOP Benefit Plans	1,815			(2,268		)	4,808			(1,306		)
Other Comprehensive Income/(Loss), Net of Tax	2,142			(794		)	5,415			2,347
Comprehensive Income Attributable to   Noncontrolling Interests	(1,880		)	(1,880		)	(3,759		)	(3,759		)
Comprehensive Income Attributable to   Common Shareholders	$	244,909		$	229,955		$	517,728		$	492,554

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

2

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017
Operating Activities:
Net Income	$	516,072		$	493,966
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	403,406			376,686
Deferred Income Taxes	161,883			269,505
Pension, SERP and PBOP Expense, Net	3,317			11,242
Pension and PBOP Contributions	(179,002		)	(91,400		)
Regulatory Overrecoveries, Net	36,669			85,792
Amortization	81,397			16,210
Other	(74,006		)	(110,355		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(52,923		)	(7,660		)
Fuel, Materials, Supplies and Inventory	65,609			42,425
Taxes Receivable/Accrued, Net	(132,999		)	23,980
Accounts Payable	(80,059		)	(168,221		)
Other Current Assets and Liabilities, Net	(51,229		)	(47,220		)
Net Cash Flows Provided by Operating Activities	698,135			894,950
Investing Activities:
Investments in Property, Plant and Equipment	(1,251,678		)	(1,146,952		)
Proceeds from Sales of Marketable Securities	316,252			373,853
Purchases of Marketable Securities	(314,406		)	(394,379		)
Proceeds from the Sale of PSNH Generation Assets	116,809			—
Other Investing Activities	(14,122		)	(20,439		)
Net Cash Flows Used in Investing Activities	(1,147,145		)	(1,187,917		)
Financing Activities:
Cash Dividends on Common Shares	(320,055		)	(301,042		)
Cash Dividends on Preferred Stock	(3,759		)	(3,759		)
Decrease in Notes Payable	(98,500		)	(211,000		)
Issuance of Rate Reduction Bonds	635,663			—
Issuance of Long-Term Debt	1,150,000			950,000
Retirements of Long-Term Debt	(860,421		)	(150,000		)
Other Financing Activities	(17,958		)	(19,254		)
Net Cash Flows Provided by Financing Activities	484,970			264,945
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash	35,960			(28,022		)
Cash, Cash Equivalents and Restricted Cash - Beginning of Period	85,890			106,750
Cash, Cash Equivalents and Restricted Cash - End of Period	$	121,850		$	78,728

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

3

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2018		As of December 31, 2017
ASSETS
Current Assets:
Cash	$	1,794	$	6,028
Receivables, Net	385,419		370,676
Accounts Receivable from Affiliated Companies	34,555		28,181
Unbilled Revenues	53,114		54,154
Materials, Supplies and Inventory	55,795		48,438
Regulatory Assets	198,242		200,281
Prepayments and Other Current Assets	20,784		46,926
Total Current Assets	749,703		754,684
Property, Plant and Equipment, Net	8,604,611		8,271,030
Deferred Debits and Other Assets:
Regulatory Assets	1,556,977		1,444,935
Other Long-Term Assets	172,510		159,597
Total Deferred Debits and Other Assets	1,729,487		1,604,532
Total Assets	$	11,083,801	$	10,630,246
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	24,000	$	69,500
Long-Term Debt – Current Portion	250,000		300,000
Accounts Payable	378,862		367,605
Accounts Payable to Affiliated Companies	88,138		82,201
Obligations to Third Party Suppliers	54,260		52,860
Derivative Liabilities	52,214		54,392
Regulatory Liabilities	72,183		38,967
Other Current Liabilities	119,839		127,234
Total Current Liabilities	1,039,496		1,092,759
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,157,165		1,103,367
Regulatory Liabilities	1,124,721		1,112,136
Derivative Liabilities	394,270		376,918
Accrued Pension, SERP and PBOP	306,469		354,469
Other Long-Term Liabilities	119,518		128,135
Total Deferred Credits and Other Liabilities	3,102,143		3,075,025
Long-Term Debt	3,003,286		2,759,135
Preferred Stock Not Subject to Mandatory Redemption	116,200		116,200
Common Stockholder's Equity:
Common Stock	60,352		60,352
Capital Surplus, Paid In	2,210,765		2,110,765
Retained Earnings	1,551,241		1,415,741
Accumulated Other Comprehensive Income	318		269
Common Stockholder's Equity	3,822,676		3,587,127
Total Liabilities and Capitalization	$	11,083,801	$	10,630,246

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

4

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)	2018		2017		2018		2017
Operating Revenues	$	694,892	$	666,558	$	1,479,875	$	1,398,867
Operating Expenses:
Purchased Power and Transmission	234,335		207,211		536,223		452,149
Operations and Maintenance	109,685		108,918		226,977		237,655
Depreciation	69,383		60,797		136,881		120,549
Amortization of Regulatory Assets, Net	15,400		11,422		43,405		24,225
Energy Efficiency Programs	18,606		32,153		41,366		68,744
Taxes Other Than Income Taxes	84,375		70,437		174,676		144,414
Total Operating Expenses	531,784		490,938		1,159,528		1,047,736
Operating Income	163,108		175,620		320,347		351,131
Interest Expense	38,674		35,299		75,498		70,264
Other Income, Net	7,063		4,221		13,623		7,489
Income Before Income Tax Expense	131,497		144,542		258,472		288,356
Income Tax Expense	31,785		53,249		60,192		106,855
Net Income	$	99,712	$	91,293	$	198,280	$	181,501

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

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017		2018			2017
Net Income	$	99,712		$	91,293	$	198,280		$	181,501
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	13			91		65			202
Changes in Unrealized (Losses)/Gains on   Marketable Securities	(4		)	33		(16		)	89
Other Comprehensive Income, Net of Tax	9			124		49			291
Comprehensive Income	$	99,721		$	91,417	$	198,329		$	181,792

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

5

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017
Operating Activities:
Net Income	$	198,280		$	181,501
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	136,881			120,549
Deferred Income Taxes	50,915			73,277
Pension, SERP, and PBOP Expense	3,861			4,321
Pension and PBOP Contributions	(41,150		)	(1,250		)
Regulatory (Under)/Over Recoveries, Net	(39,908		)	9,762
Amortization of Regulatory Assets, Net	43,405			24,225
Other	(33,078		)	(27,585		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(34,772		)	(22,333		)
Taxes Receivable/Accrued, Net	105			41,733
Accounts Payable	(30,805		)	(63,813		)
Other Current Assets and Liabilities, Net	14,377			15,304
Net Cash Flows Provided by Operating Activities	268,111			355,691
Investing Activities:
Investments in Property, Plant and Equipment	(457,677		)	(419,891		)
Other Investing Activities	110			132
Net Cash Flows Used in Investing Activities	(457,567		)	(419,759		)
Financing Activities:
Cash Dividends on Common Stock	(60,000		)	(99,200		)
Cash Dividends on Preferred Stock	(2,779		)	(2,779		)
Capital Contributions from Eversource Parent	100,000			—
Issuance of Long-Term Debt	500,000			300,000
Retirement of Long-Term Debt	(300,000		)	(150,000		)
(Decrease)/Increase in Notes Payable to Eversource Parent	(45,500		)	21,000
Other Financing Activities	(6,189		)	(3,894		)
Net Cash Flows Provided by Financing Activities	185,532			65,127
Net (Decrease)/Increase in Cash and Restricted Cash	(3,924		)	1,059
Cash and Restricted Cash - Beginning of Period	9,619			8,403
Cash and Restricted Cash - End of Period	$	5,695		$	9,462

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

6

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2018			As of December 31, 2017
ASSETS
Current Assets:
Cash and Cash Equivalents	$	67		$	1,763
Receivables, Net	382,019			341,341
Accounts Receivable from Affiliated Companies	20,406			40,723
Unbilled Revenues	48,668			49,865
Materials, Supplies and Inventory	50,459			95,517
Regulatory Assets	244,542			333,882
Prepayments and Other Current Assets	58,105			24,499
Total Current Assets	804,266			887,590
Property, Plant and Equipment, Net	8,450,942			8,246,494
Deferred Debits and Other Assets:
Regulatory Assets	1,271,158			1,190,575
Prepaid PBOP	147,698			126,948
Other Long-Term Assets	93,240			84,766
Total Deferred Debits and Other Assets	1,512,096			1,402,289
Total Assets	$	10,767,304		$	10,536,373
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	443,810		$	234,000
Notes Payable to Eversource Parent	4,000			—
Accounts Payable	315,875			340,115
Accounts Payable to Affiliated Companies	78,305			91,260
Obligations to Third Party Suppliers	101,037			88,721
Renewable Portfolio Standards Compliance Obligations	65,361			111,524
Regulatory Liabilities	90,222			79,562
Other Current Liabilities	61,968			79,916
Total Current Liabilities	1,160,578			1,025,098
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,301,309			1,275,814
Regulatory Liabilities	1,540,755			1,514,451
Accrued Pension and SERP	17,624			89,995
Other Long-Term Liabilities	209,886			198,176
Total Deferred Credits and Other Liabilities	3,069,574			3,078,436
Long-Term Debt	2,944,266			2,943,759
Preferred Stock Not Subject to Mandatory Redemption	43,000			43,000
Common Stockholder's Equity:
Common Stock	—			—
Capital Surplus, Paid In	1,603,442			1,502,942
Retained Earnings	1,948,052			1,944,961
Accumulated Other Comprehensive Loss	(1,608		)	(1,823		)
Common Stockholder's Equity	3,549,886			3,446,080
Total Liabilities and Capitalization	$	10,767,304		$	10,536,373

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

7

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)	2018		2017		2018		2017
Operating Revenues	$	690,737	$	704,702	$	1,460,865	$	1,438,510
Operating Expenses:
Purchased Power and Transmission	266,108		231,039		598,687		504,891
Operations and Maintenance	102,163		111,820		220,844		227,692
Depreciation	64,051		68,477		134,593		135,695
Amortization of Regulatory Assets, Net	11,954		2,623		18,318		7,112
Energy Efficiency Programs	65,184		67,955		139,978		145,932
Taxes Other Than Income Taxes	47,627		44,844		95,815		82,664
Total Operating Expenses	557,087		526,758		1,208,235		1,103,986
Operating Income	133,650		177,944		252,630		334,524
Interest Expense	27,359		29,626		53,822		57,905
Other Income, Net	14,269		7,096		26,870		15,445
Income Before Income Tax Expense	120,560		155,414		225,678		292,064
Income Tax Expense	32,639		60,431		60,607		113,700
Net Income	$	87,921	$	94,983	$	165,071	$	178,364

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 June 30,						For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017			2018			2017
Net Income	$	87,921		$	94,983		$	165,071		$	178,364
Other Comprehensive Income, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	1			(4		)	2			(8		)
Qualified Cash Flow Hedging Instruments	109			110			218			219
Changes in Unrealized (Losses)/Gains on      Marketable Securities	(1		)	9			(5		)	25
Other Comprehensive Income, Net of Tax	109			115			215			236
Comprehensive Income	$	88,030		$	95,098		$	165,286		$	178,600

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

8

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017
Operating Activities:
Net Income	$	165,071		$	178,364
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	134,593			135,695
Deferred Income Taxes	29,238			92,223
Pension, SERP and PBOP Income, Net	(19,785		)	(5,125		)
Pension and PBOP Contributions	(59,156		)	(15,360		)
Regulatory Overrecoveries, Net	34,090			9,428
Amortization of Regulatory Assets, Net	18,318			7,112
Other	(3,345		)	(18,883		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(40,073		)	(28,890		)
Materials, Supplies and Inventory	45,058			30,056
Taxes Receivable/Accrued, Net	(37,268		)	36,030
Accounts Payable	(17,194		)	(148,773		)
Other Current Assets and Liabilities, Net	(46,861		)	(56,345		)
Net Cash Flows Provided by Operating Activities	202,686			215,532
Investing Activities:
Investments in Property, Plant and Equipment	(356,497		)	(338,495		)
Other Investing Activities	31			(3,580		)
Net Cash Flows Used in Investing Activities	(356,466		)	(342,075		)
Financing Activities:
Cash Dividends on Common Stock	(161,000		)	(112,000		)
Cash Dividends on Preferred Stock	(980		)	(980		)
Capital Contributions from Eversource Parent	100,500			1,800
Increase/(Decrease) in Notes Payable	213,810			(108,800		)
Issuance of Long-Term Debt	—			350,000
Other Financing Activities	(158		)	(3,159		)
Net Cash Flows Provided by Financing Activities	152,172			126,861
(Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash	(1,608		)	318
Cash, Cash Equivalents and Restricted Cash - Beginning of Period	14,708			15,506
Cash, Cash Equivalents and Restricted Cash - End of Period	$	13,100		$	15,824

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

9

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2018			As of December 31, 2017
ASSETS
Current Assets:
Cash	$	379		$	900
Receivables, Net	93,735			92,774
Accounts Receivable from Affiliated Companies	20,235			5,297
Unbilled Revenues	40,452			49,448
Taxes Receivable	31,701			5,838
Materials, Supplies and Inventory	32,629			40,285
Regulatory Assets	87,504			130,134
Prepayments and Other Current Assets	24,335			23,093
Assets Held for Sale	59,431			219,550
Total Current Assets	390,401			567,319
Property, Plant and Equipment, Net	2,763,610			2,642,274
Deferred Debits and Other Assets:
Regulatory Assets	901,718			810,677
Other Long-Term Assets	46,448			42,391
Total Deferred Debits and Other Assets	948,166			853,068
Total Assets	$	4,102,177		$	4,062,661
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	118,700		$	262,900
Long-Term Debt – Current Portion	—			110,000
Rate Reduction Bonds – Current Portion	30,727			—
Accounts Payable	123,717			128,685
Accounts Payable to Affiliated Companies	26,583			24,676
Dividends Payable to Eversource Parent	—			150,000
Renewable Portfolio Standards Compliance Obligations	22,185			27,765
Regulatory Liabilities	30,023			6,251
Other Current Liabilities	43,540			40,159
Total Current Liabilities	395,475			750,436
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	487,441			443,468
Regulatory Liabilities	447,896			444,397
Accrued Pension, SERP and PBOP	129,870			124,639
Other Long-Term Liabilities	35,596			56,689
Total Deferred Credits and Other Liabilities	1,100,803			1,069,193
Long-Term Debt	893,960			892,438
Rate Reduction Bonds	604,936			—
Common Stockholder's Equity:
Common Stock	—			—
Capital Surplus, Paid In	538,134			843,134
Retained Earnings	572,253			511,382
Accumulated Other Comprehensive Loss	(3,384		)	(3,922		)
Common Stockholder's Equity	1,107,003			1,350,594
Total Liabilities and Capitalization	$	4,102,177		$	4,062,661

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

10

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(Thousands of Dollars)	2018		2017			2018		2017
Operating Revenues	$	235,146	$	230,383		$	502,497	$	483,541
Operating Expenses:
Purchased Power, Fuel and Transmission	83,494		60,442			193,212		122,189
Operations and Maintenance	46,487		66,569			97,867		130,533
Depreciation	22,808		32,447			46,301		63,182
Amortization of Regulatory Assets/(Liabilities), Net	8,926		(18,937		)	13,961		(13,492		)
Energy Efficiency Programs	4,674		3,287			9,831		7,032
Taxes Other Than Income Taxes	21,879		23,118			38,680		44,001
Total Operating Expenses	188,268		166,926			399,852		353,445
Operating Income	46,878		63,457			102,645		130,096
Interest Expense	14,612		12,970			27,386		25,780
Other Income, Net	3,409		1,891			8,159		4,703
Income Before Income Tax Expense	35,675		52,378			83,418		109,019
Income Tax Expense	9,896		20,787			22,547		43,116
Net Income	$	25,779	$	31,591		$	60,871	$	65,903

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 June 30,					For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017		2018			2017
Net Income	$	25,779		$	31,591	$	60,871		$	65,903
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	277			290		567			581
Changes in Unrealized (Losses)/Gains on    Marketable Securities	(8		)	58		(29		)	155
Other Comprehensive Income, Net of Tax	269			348		538			736
Comprehensive Income	$	26,048		$	31,939	$	61,409		$	66,639

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

11

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2018			2017
Operating Activities:
Net Income	$	60,871		$	65,903
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	46,301			63,182
Deferred Income Taxes	41,981			37,670
Regulatory Underrecoveries, Net	(29,816		)	(1,964		)
Amortization of Regulatory Assets/(Liabilities), Net	13,961			(13,492		)
Other	(3,428		)	(6,747		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(10,510		)	(1,427		)
Fuel, Materials, Supplies and Inventory	21,803			12,288
Taxes Receivable/Accrued, Net	(15,475		)	(20,945		)
Accounts Payable	(4,843		)	2,236
Other Current Assets and Liabilities, Net	(8,050		)	5,422
Net Cash Flows Provided by Operating Activities	112,795			142,126
Investing Activities:
Investments in Property, Plant and Equipment	(149,925		)	(155,737		)
Proceeds from the Sale of Generation Assets	116,809			—
Other Investing Activities	243			26
Net Cash Flows Used in Investing Activities	(32,873		)	(155,711		)
Financing Activities:
Cash Dividends on Common Stock	(150,000		)	(23,900		)
Capital Contribution from Eversource Parent	225,000			—
Return of Capital	(530,000		)	—
Issuance of Rate Reduction Bonds	635,663			—
Retirements of Long-Term Debt	(110,000		)	—
(Decrease)/Increase in Notes Payable to Eversource Parent	(144,200		)	33,200
Other Financing Activities	(75		)	(150		)
Net Cash Flows (Used in)/Provided by Financing Activities	(73,612		)	9,150
Net Increase/(Decrease) in Cash and Restricted Cash	6,310			(4,435		)
Cash and Restricted Cash - Beginning of Period	2,191			5,953
Cash and Restricted Cash - End of Period	$	8,501		$	1,518

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

12

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 and NSTAR Gas (natural gas utilities) and Aquarion (water utilities).  Eversource provides energy delivery and/or water service to approximately four million electric, natural gas and water customers through eight regulated utilities in Connecticut, Massachusetts and New Hampshire.

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

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

The combined notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations.  The accompanying financial statements should be read in conjunction with the Combined Notes to Financial Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2017 Form 10-K, which was filed with the SEC on February 26, 2018. 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 June 30, 2018 and December 31, 2017, the results of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017, and the cash flows for the six months ended June 30, 2018 and 2017.  The results of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017 and the cash flows for the six months ended June 30, 2018 and 2017 are not necessarily indicative of the results expected for a full year.  

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership interest in each of these entities is greater than 50 percent.  Intercompany transactions between CL&P, NSTAR Electric, PSNH and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

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

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

On December 22, 2017, the Tax Cuts and Jobs Act became law, which amended existing federal tax rules and included numerous provisions that impacted corporations. In particular, this act reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. Our regulated companies have established a reserve to reflect the difference between the 35 percent federal corporate income tax rate included in rates charged to customers and the 21 percent federal income tax rate. Eversource, CL&P, NSTAR Electric and PSNH's effective tax rate has decreased, as compared to the prior period, as a result of incurring a lower federal income tax expense, which is reflected on the statements of income for the three and six months ended June 30, 2018. See Note 16, "Revenues," for further information on the amounts reserved in revenues.

13

B.    Accounting Standards

Accounting Standards Issued but Not Yet Effective:  In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, Leases, which changes existing lease accounting guidance and is required to be applied in the first quarter of 2019, with earlier application permitted. The Company will implement the new leases standard in the first quarter of 2019 and apply the 2016-02 lease criteria to new leases and lease renewals entered into effective January 1, 2019.  The requirements of the new leases standard include balance sheet recognition of leases previously deemed to be operating leases, and additional disclosure requirements.  The Company is in the process of evaluating what impact the new leases standard will have on its financial statements, including reviewing its lease population and determining which of several practical expedients provided in the new guidance it will elect. As of December 31, 2017, Eversource’s total future undiscounted minimum rental payments, excluding executory costs, under long-term noncancelable operating and capital leases were less than $100 million.

Accounting Standards Recently Adopted: On January 1, 2018, Eversource, CL&P, NSTAR Electric and PSNH adopted ASU 2014-09, Revenue from Contracts with Customers, which amended existing revenue recognition guidance, using the modified retrospective method (cumulatively at the date of initial application) applying it only to contracts that were not complete at January 1, 2018. Under this method of adoption, prior year reported results were not restated. Implementation of the ASU did not have a material effect on the results of operations, financial position or cash flows of Eversource, CL&P, NSTAR Electric or PSNH. See Note 16, "Revenues,"for further information.

The Company identified an item that was accounted for differently under the new revenue guidance, as compared to the previously existing guidance. As a result of applying guidance on the unit of account under the new standard, purchases of power from and sales of power to ISO-New England are now accounted for net by the hour, rather than net by the month. This change increased Operating Revenues and Purchased Power, Fuel and Transmission by $3 million and $22 million, respectively, for the three and six months ended June 30, 2018, with no impact on net income.

On January 1, 2018, Eversource adopted ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities.  The ASU removed the available-for-sale designation for equity securities, whereby changes in fair value were previously recorded in accumulated other comprehensive income within shareholders' equity, and required changes in fair value of all equity securities to be recorded in earnings effective January 1, 2018. There was no cumulative effect of adoption. Unrealized gains recorded in Other Income, Net were $0.9 million and $0.2 million for the three and six months ended June 30, 2018, respectively. For further information, see Note 5, "Marketable Securities," to the financial statements.  

On January 1, 2018, Eversource, CL&P, NSTAR Electric and PSNH adopted ASU 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The ASU required separate presentation of service cost from other components of net pension and PBOP costs, with the other components presented as non-operating income and not subject to capitalization. The ASU has been applied retrospectively for the separate presentation in the income statement of service costs and other components and prospectively in the balance sheet for the capitalization of only the service cost component. As of June 30, 2018, the non-service cost components of net pension, SERP and PBOP costs that were not capitalized in plant were recorded as an increase to regulatory liabilities of approximately $20 million, as these amounts continue to be included in rates. See Note 1F, "Summary of Significant Accounting Policies - Other Income, Net," to the financial statements for the portion of pension and PBOP costs that are presented as non-operating income for the three and six months ended June 30, 2018 and 2017. For the three months ended June 30, 2017, the amounts which were previously presented within Operations and Maintenance expense on the statements of income, totaled $7.5 million at Eversource, $0.4 million at CL&P, $4.8 million at NSTAR Electric and $1.5 million at PSNH, and have been retrospectively presented to Other Income, Net. For the six months ended June 30, 2017, these amounts were $15.5 million at Eversource, $0.9 million at CL&P, $9.8 million at NSTAR Electric and $3.1 million at PSNH.

On January 1, 2018, Eversource, CL&P, NSTAR Electric and PSNH adopted two accounting standards relating to the statement of cash flows; ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, and ASU 2016-18, Restricted Cash. As a result of implementing ASU 2016-15, dividends from equity method investments of $10.4 million and $9.4 million for the six months ended June 30, 2018 and 2017, respectively, are presented in operating activities at Eversource, for which the 2017 amounts were previously classified in investing activities. ASU 2016-18 required that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Both standards were applied retrospectively, as required, and neither had a material impact on Eversource's, CL&P's, NSTAR Electric's or PSNH's statements of cash flows. See Note 1H, "Summary of Significant Accounting Policies - Supplemental Cash Flow Information," to the financial statements for a reconciliation of cash and cash equivalents as reported on the balance sheet to the statement of cash flows, which includes amounts described as restricted cash and restricted cash equivalents.

C.    Northern Pass

Northern Pass is Eversource's planned 1,090 MW HVDC transmission line that will interconnect from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire.  As of June 30, 2018, our capitalized Northern Pass project costs were approximately $297 million.

In March 2018, the Massachusetts EDCs terminated the selection of, and subsequent contract negotiations with, Northern Pass under the Massachusetts Clean Energy RFP, and the New Hampshire Site Evaluation Committee ("NHSEC") issued a written decision denying Northern Pass’ siting application. The NHSEC denial of Northern Pass' siting application caused us to review the recoverability of our Northern Pass project costs in the first quarter of 2018. In this recoverability review, we estimated undiscounted expected project cash flows and compared the result to our estimated project costs to determine whether the recorded amount was recoverable. Our undiscounted cash flows were substantially in excess of our estimated project costs. We completed this analysis and concluded that our project costs were recoverable as of March 31, 2018, based on our expectation that the Northern Pass project remains probable of being placed in service.

14

On April 27, 2018, NPT filed a motion for rehearing with the NHSEC and on July 12, 2018, the NHSEC issued its written decision denying Northern Pass’ motion for rehearing. These events did not require an additional review of the recoverability of project costs as of June 30, 2018. We are preparing to initiate an appeal to the New Hampshire Supreme Court, based on the NHSEC’s failure to follow applicable law in its review of the project. In parallel, Northern Pass intends to pursue all available options to secure NHSEC approval and to construct the project.

Consistent with Eversource’s and HQ’s long-term relationship to bring clean energy into New England, Eversource and HQ remain committed to Northern Pass and the many benefits this project will bring to our customers and the region.  If as a result of future events and changes in circumstances a new recoverability review were to conclude that our project costs are not recoverable, then we would reduce Northern Pass' project costs to the estimated fair value, which could result in most of our $297 million of capitalized project costs being written off. Such a write off could have a material adverse effect on our financial position and results of operations.

D.    Provision for Uncollectible Accounts

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

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

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

	Total Provision for Uncollectible Accounts				Uncollectible Hardship
(Millions of Dollars)	As of June 30, 2018		As of December 31, 2017		As of June 30, 2018		As of December 31, 2017
Eversource	$	211.3	$	195.7	$	126.8	$	122.5
CL&P	80.4		78.9		64.5		65.5
NSTAR Electric	77.2		69.7		44.0		40.3
PSNH	11.5		10.5		—		—

In accordance with new revenue accounting guidance, bad debt expense associated with customers' accounts receivable included in Operations and Maintenance expense on the statements of income is presented as follows:

	For the Three Months Ended					For the Six Months Ended
(Millions of Dollars)	June 30, 2018		June 30, 2017			June 30, 2018		June 30, 2017
Eversource	$	9.5	$	(0.3	)	$	29.3	$	15.7
CL&P	3.8		(4.7		)	7.7		(1.9		)
NSTAR Electric	3.8		0.4			11.3		6.9
PSNH	1.5		1.9			3.2		3.6