SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2023

The activity in the allowance for uncollectible accounts by portfolio segment as of September 30th 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 (2)
Three Months Ended 2023
Beginning Balance	$	338.2	$	194.2	$	532.4	$	226.5	$	36.3	$	262.8	$	45.6	$	52.2	$	97.8	$	12.7
Uncollectible Expense	—		16.8		16.8		—		2.4		2.4		—		5.2		5.2		2.0
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	(17.5)		(40.4)		(57.9)		(14.9)		(7.6)		(22.5)		0.1		(11.5)		(11.4)		(3.6)
Recoveries Collected	0.2		3.3		3.5		0.2		0.9		1.1		—		1.3		1.3		0.2
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 2023
Beginning Balance	$	284.4	$	201.9	$	486.3	$	188.9	$	36.4	$	225.3	$	43.7	$	51.3	$	95.0	$	29.2
Uncollectible Expense	—		40.9		40.9		—		7.1		7.1		—		13.0		13.0		1.5
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	(35.3)		(88.5)		(123.8)		(29.0)		(21.3)		(50.3)		(0.4)		(30.4)		(30.8)		(7.8)
Recoveries Collected	1.0		10.8		11.8		1.0		3.6		4.6		—		4.0		4.0		0.6
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
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Total Allowance
Three Months Ended 2022
Beginning Balance	$	242.7	$	215.1	$	457.8	$	152.1	$	40.6	$	192.7	$	45.0	$	55.5	$	100.5	$	27.3
Uncollectible Expense	—		10.7		10.7		—		4.1		4.1		—		3.5		3.5		3.5
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	(6.5)		(33.2)		(39.7)		(5.0)		(7.7)		(12.7)		(0.3)		(12.3)		(12.6)		(2.3)
Recoveries Collected	0.3		3.5		3.8		0.2		1.0		1.2		—		1.3		1.3		0.2
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 2022
Beginning Balance	$	226.1	$	191.3	$	417.4	$	144.6	$	36.7	$	181.3	$	43.3	$	53.7	$	97.0	$	24.3
Uncollectible Expense	—		40.8		40.8		—		10.8		10.8		—		12.2		12.2		8.1
Uncollectible Costs Deferred (1)	38.0		36.7		74.7		22.3		2.0		24.3		4.9		11.8		16.7		1.2
Write-Offs	(13.5)		(76.3)		(89.8)		(9.4)		(14.4)		(23.8)		(0.7)		(30.6)		(31.3)		(5.4)
Recoveries Collected	1.5		13.0		14.5		1.1		4.9		6.0		—		4.9		4.9		0.6
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.

Components of Other Income, Net

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


	For the Three Months Ended
	September 30, 2023								September 30, 2022
(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	$	28.5	$	7.0	$	12.9	$	3.7	$	55.3	$	16.2	$	21.6	$	6.8
AFUDC Equity	21.0		5.2		12.5		1.6		12.6		3.7		6.5		0.7
Equity in Earnings of Unconsolidated Affiliates	2.7		—		0.1		—		3.8		—		0.1		—
Investment Income	2.7		1.5		0.7		0.4		1.3		0.2		0.4		0.2
Interest Income	24.1		4.6		13.6		1.5		14.1		1.8		9.2		0.4

Other	0.1		—		0.1		—		2.7		—		0.1		—
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
	September 30, 2023								September 30, 2022
(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	$	96.6	$	24.9	$	41.7	$	11.8	$	164.5	$	48.3	$	64.0	$	20.1
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)	11.5		—		0.3		—		20.8		—		0.2		—
Investment (Loss)/Income	(0.4)		(0.2)		0.5		—		2.4		(0.9)		0.6		0.5
Interest Income	68.6		8.0		44.0		3.6		30.3		4.6		18.8		1.1

Other (1)	31.2		—		0.2		0.4		3.6		—		0.3		—
Total Other Income, Net	$	263.0	$	46.6	$	120.7	$	19.2	$	255.3	$	61.3	$	101.4	$	23.4

(1) 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, 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.

Investments in Unconsolidated Affiliates

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

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 Three Months Ended				For the Nine Months Ended
(Millions of Dollars)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Eversource	$	53.7	$	52.9	$	153.4	$	146.0
CL&P	50.2		49.2		132.2		126.0

Non-cash Investing Activities

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


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

Reconciliation of Cash Balances to Cash and Restricted Cash

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, 2023								As of December 31, 2022
(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	$	78.8	$	9.8	$	6.0	$	33.9	$	374.6	$	11.3	$	327.7	$	0.1
Restricted cash included in:
Special Deposits	68.4		9.1		8.8		18.2		102.2		8.8		17.5		33.1
Marketable Securities	16.2		—		—		—		25.4		0.2		0.1		0.4
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	$	180.9	$	18.9	$	14.8	$	55.3	$	521.8	$	20.3	$	345.3	$	36.8