SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

The activity in the allowance for uncollectible accounts by portfolio segment is as follows:


	Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Total Allowance
Balance as of January 1, 2020	$	143.3	$	81.5	$	224.8	$	80.1	$	17.2	$	97.3	$	43.9	$	31.5	$	75.4	$	10.5
ASU 2016-13 Implementation Impact on January 1, 2020	21.6		2.2		23.8		21.3		0.9		22.2		(1.6)		0.3		(1.3)		0.3
Increase due to CMA acquisition	—		24.2		24.2		—		—		—		—		—		—		—
Uncollectible Expense (1)	—		53.5		53.5		—		12.9		12.9		—		15.3		15.3		5.2
Uncollectible Costs Deferred (2)	43.1		53.9		97.0		38.2		10.8		49.0		(1.7)		26.4		24.7		7.4
Write-Offs	(14.7)		(63.3)		(78.0)		(11.9)		(17.8)		(29.7)		(0.9)		(26.3)		(27.2)		(6.9)
Recoveries Collected	1.5		12.1		13.6		1.4		4.3		5.7		—		4.7		4.7		0.7
Balance as of December 31, 2020	$	194.8	$	164.1	$	358.9	$	129.1	$	28.3	$	157.4	$	39.7	$	51.9	$	91.6	$	17.2
Uncollectible Expense (1)	—		60.9		60.9		—		13.5		13.5		—		16.6		16.6		13.1
Uncollectible Costs Deferred (2)	51.9		58.7		110.6		32.3		25.5		57.8		4.3		15.8		20.1		3.1
Write-Offs	(22.0)		(107.7)		(129.7)		(18.0)		(36.2)		(54.2)		(0.7)		(36.3)		(37.0)		(10.0)
Recoveries Collected	1.4		15.3		16.7		1.2		5.6		6.8		—		5.7		5.7		0.9
Balance as of December 31, 2021	$	226.1	$	191.3	$	417.4	$	144.6	$	36.7	$	181.3	$	43.3	$	53.7	$	97.0	$	24.3

(1) Uncollectible expense associated with customer and other accounts receivable is included in Operations and Maintenance expense on the statements of income. For the year ended December 31, 2019, uncollectible expense included in Operations and Maintenance Expense was $63.4 million for Eversource, $15.9 million for CL&P, $25.1 million for NSTAR Electric and $6.7 million for PSNH.

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

Schedule of Utility Inventory

The carrying amounts of fuel, materials and supplies, and RECs, which are included in Current Assets on the balance sheets, were as follows:


	As of December 31,
	2021								2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Fuel	$	56.2	$	—	$	—	$	—	$	38.2	$	—	$	—	$	—
Materials and Supplies	148.9		60.3		55.0		25.2		151.3		57.9		62.1		22.5
RECs	62.4		—		61.7		0.7		76.1		—		71.8		4.3
Total	$	267.5	$	60.3	$	116.7	$	25.9	$	265.6	$	57.9	$	133.9	$	26.8

Costs Related to Fuel and Natural Gas

Costs related to fuel and natural gas included in Purchased Power, Fuel and Transmission on the statements of income were as follows:


	For the Years Ended December 31,
(Millions of Dollars)	2021		2020		2019
Eversource - Natural Gas and Fuel	$	718.6	$	464.2	$	462.1

Weighted-Average AFUDC Rates

AFUDC costs and the weighted-average AFUDC rates were as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars, except percentages)	2021			2020			2019
Borrowed Funds	$	18.4		$	23.7		$	25.6
Equity Funds	37.3			42.0			45.0
Total AFUDC	$	55.7		$	65.7		$	70.6
Average AFUDC Rate	4.2		%	5.0		%	5.4		%


	For the Years Ended December 31,
	2021									2020									2019
(Millions of Dollars, except percentages)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Borrowed Funds	$	2.9		$	9.0		$	0.8		$	6.6		$	9.1		$	2.1		$	7.1		$	10.4		$	2.8
Equity Funds	7.7			20.4			1.6			13.8			21.5			4.2			13.2			19.8			3.4
Total AFUDC	$	10.6		$	29.4		$	2.4		$	20.4		$	30.6		$	6.3		$	20.3		$	30.2		$	6.2
Average AFUDC Rate	5.0		%	4.9		%	2.5		%	5.9		%	5.7		%	4.7		%	6.3		%	5.7		%	4.6		%

Components of Other Income, Net

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


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2021		2020		2019
Pension, SERP and PBOP Non-Service Income Components (1)	$	84.4	$	44.4	$	31.3
AFUDC Equity	37.3		42.0		45.0
Equity in Earnings of Unconsolidated Affiliates (2)	14.2		14.2		42.2
Investment (Loss)/Income	(0.2)		1.1		0.8
Interest Income	25.6		4.8		12.8
Other	—		2.1		0.7
Total Other Income, Net	$	161.3	$	108.6	$	132.8


	For the Years Ended December 31,
	2021						2020						2019
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components (1)	$	15.2	$	40.2	$	10.3	$	3.8	$	29.3	$	7.0	$	0.5	$	23.5	$	4.9
AFUDC Equity	7.7		20.4		1.6		13.8		21.5		4.2		13.2		19.8		3.4
Equity in Earnings of Unconsolidated Affiliates	—		0.4		—		—		0.4		—		0.1		0.7		—
Investment Income/(Loss)	1.3		0.1		0.1		1.1		(0.8)		0.1		2.3		(0.4)		0.3
Interest Income	5.9		13.4		2.4		2.0		0.9		2.4		1.5		0.7		10.5
Other	0.1		0.3		0.2		0.1		0.7		0.1		(0.1)		0.3		0.1
Total Other Income, Net	$	30.2	$	74.8	$	14.6	$	20.8	$	52.0	$	13.8	$	17.5	$	44.6	$	19.2

(1) See Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for the components of net periodic benefit cost for the Pension, SERP and PBOP Plans. The non-service related components of pension, SERP and PBOP benefit costs, after capitalization or deferral, are presented as non-operating income and recorded in Other Income, Net on the statements of income.

(2) Equity in earnings includes $2.1 million and $20.4 million of pre-tax unrealized gains for the years ended December 31, 2021 and 2019, respectively, and $2.4 million of primarily realized gains for the year ended December 31, 2020, associated with an equity method investment in a renewable energy fund. Equity in earnings of unconsolidated affiliates includes an other-than-temporary impairment of $2.8 million related to a write-off of an investment within a renewable energy fund for the year ended December 31, 2020. See Note 6, "Investments in Unconsolidated Affiliates," for further information.

Other Taxes

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 Years Ended December 31,
(Millions of Dollars)	2021		2020		2019
Eversource	$	181.9	$	170.6	$	163.1
CL&P	158.1		149.9		141.1

Supplemental Cash Flow Information


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
	2021		2020		2019
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	568.7	$	518.0	$	532.4
Income Taxes	121.6		48.9		56.0
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	467.9		367.2		379.4


	As of and For the Years Ended December 31,
	2021						2020						2019
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	161.5	$	141.6	$	56.5	$	149.0	$	129.4	$	54.5	$	144.6	$	121.9	$	56.9
Income Taxes	38.4		74.2		51.1		10.9		110.7		34.2		80.6		77.9		3.4
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	110.6		120.0		68.7		101.8		103.2		33.3		111.3		116.4		49.9

Cash and Cash Equivalents as Reported on the Balance Sheet

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


	As of December 31,
	2021								2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash as reported on the Balance Sheets	$	66.8	$	55.8	$	0.7	$	—	$	106.6	$	90.8	$	0.1	$	0.1
Restricted cash included in:
Special Deposits	78.2		18.7		17.4		31.4		73.6		8.7		17.2		36.8
Marketable Securities	31.3		0.3		0.1		0.5		41.2		0.3		0.1		0.6
Other Long-Term Assets	44.7		—		—		3.2		43.6		—		—		2.1
Cash and Restricted Cash as reported on the Statements of Cash Flows	$	221.0	$	74.8	$	18.2	$	35.1	$	265.0	$	99.8	$	17.4	$	39.6