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, including 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.


	As of September 30, 2025								As of December 31, 2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Storm Costs, Net	$	1,955.4	$	970.9	$	520.9	$	463.6	$	2,039.4	$	971.1	$	609.8	$	458.5
Regulatory Tracking Mechanisms	1,495.6		202.2		662.9		110.5		1,781.6		507.7		650.0		162.8
Income Taxes, Net	1,001.3		532.9		157.7		20.2		968.4		521.0		145.4		20.7
Benefit Costs	976.1		167.8		300.7		64.3		967.4		168.8		293.6		65.6
Securitized Stranded Costs	316.9		—		—		316.9		349.3		—		—		349.3
Goodwill-related	234.6		—		201.4		—		247.2		—		212.3		—
Cost of Removal	238.9		—		8.2		—		198.4		—		8.5		—
Asset Retirement Obligations	159.6		43.4		83.0		5.4		150.2		41.2		78.3		5.1
Derivative Liabilities	10.7		10.7		—		—		57.2		57.2		—		—
Other Regulatory Assets	281.0		19.6		94.6		3.1		311.6		58.5		109.2		3.7
Total Regulatory Assets	6,670.1		1,947.5		2,029.4		984.0		7,070.7		2,325.5		2,107.1		1,065.7
Less: Current Portion	1,831.2		268.8		912.3		118.9		2,189.7		638.5		902.8		173.3
Total Long-Term Regulatory Assets	$	4,838.9	$	1,678.7	$	1,117.1	$	865.1	$	4,881.0	$	1,687.0	$	1,204.3	$	892.4

As of both September 30, 2025 and December 31, 2024, the Regulatory Assets attributable to the Aquarion water distribution business have been reclassified to Assets Held for Sale on the Eversource balance sheets. For further information, see Note 18, “Assets Held for Sale.”

Regulatory Costs in Other Long-Term Assets: Eversource's regulated companies had $244.2 million (including $121.8 million for CL&P, $46.2 million for NSTAR Electric and $5.3 million for PSNH) and $221.0 million (including $116.3 million for CL&P, $41.1 million for NSTAR Electric and $4.5 million for PSNH) of additional regulatory costs not yet specifically approved as of September 30, 2025 and December 31, 2024, respectively, that were included in Other Long-Term Assets on the balance sheets. These amounts will be reclassified to Regulatory Assets upon approval by the applicable regulatory agency. 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, 2025 and December 31, 2024, these regulatory costs included $112.8 million (including $50.2 million for CL&P and $31.1 million for NSTAR Electric) and $92.5 million (including $47.2 million for CL&P and $24.4 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs.


	As of September 30, 2025								As of December 31, 2024
(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	$	2,401.3	$	946.0	$	858.0	$	323.6	$	2,442.7	$	956.6	$	877.6	$	330.6
Regulatory Tracking Mechanisms	1,129.2		443.6		520.1		97.0		702.4		180.3		413.6		114.4
Cost of Removal	764.7		258.9		468.4		37.4		684.1		212.8		451.3		20.1
Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP	488.6		70.0		242.5		47.1		427.1		61.6		211.6		42.6
AFUDC - Transmission	171.4		68.9		102.5		—		154.8		65.1		89.7		—
Benefit Costs	53.8		5.4		8.4		4.3		69.3		4.5		21.4		3.9
Other Regulatory Liabilities	169.4		39.0		13.6		4.0		184.5		39.1		14.2		4.5
Total Regulatory Liabilities	5,178.4		1,831.8		2,213.5		513.4		4,664.9		1,520.0		2,079.4		516.1
Less: Current Portion	1,064.1		391.3		543.2		103.6		632.3		124.1		436.3		121.1
Total Long-Term Regulatory Liabilities	$	4,114.3	$	1,440.5	$	1,670.3	$	409.8	$	4,032.6	$	1,395.9	$	1,643.1	$	395.0

As of both September 30, 2025 and December 31, 2024, the Regulatory Liabilities attributable to the Aquarion water distribution business have been reclassified to Liabilities Held for Sale on the Eversource balance sheets. For further information, see Note 18, “Assets Held for Sale.”

CL&P State Bonding Proceeds: On July 1, 2025, Connecticut enacted Public Act No. 25-173 (Senate Bill No. 4) (the Act). The Act authorizes the State of Connecticut to issue up to $125 million in new general obligation bonds for each fiscal year 2026 and 2027 to reduce costs of hardship protection measures charged to retail customers, of which 67 percent of each issuance will be allocated to CL&P, and $30 million for fiscal year 2026 and $20 million for fiscal year 2027 in new general obligation bonds to fund the electric vehicle charging program, of which 80 percent of each issuance will be allocated to CL&P.

On September 19, 2025, CL&P received $107.8 million in general obligation bond proceeds from the State of Connecticut, which represent reimbursement of incurred costs that were previously recognized as regulatory assets on CL&P’s balance sheets. The proceeds received for the reimbursement of hardship costs and for electric vehicle charging program costs were credited against the System Benefits Charge (SBC) and Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) regulatory deferrals on CL&P’s balance sheet as of September 30, 2025. The proceeds from the state bond funding are presented as a cash inflow in Regulatory Recoveries within operating activities on CL&P’s statement of cash flows.

PSNH Distribution Rate Case: On June 11, 2024, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase. On July 31, 2024, the NHPUC approved a settlement agreement that was reached by PSNH, New Hampshire Department of Energy, and the Office of the Consumer Advocate to implement a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024. Temporary rates were in effect until permanent rates were approved and took effect August 1, 2025.

Also on June 11, 2024, PSNH filed an application with the NHPUC to request an increase in permanent base distribution rates of $181.9 million, which is inclusive of the temporary rate increase. Throughout the course of the proceeding, PSNH amended the requested revenue requirement to account for developments in the case, and arrived at a final proposed rate increase of $103 million, which primarily reflects the removal of deferred storm costs that will be addressed in a separate proceeding. On July 25, 2025, the NHPUC issued its decision on permanent rates and approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase referenced above. The total base distribution revenue requirement effective August 1, 2025 is $519 million. The order also established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH’s capital structure.

This revenue requirement also contains an alternative regulation revenue requirement adjustment. This adjustment was part of the NHPUC’s alternative regulatory framework that the NHPUC adopted as an alternative to PSNH’s proposed performance-based regulation plan. The alternative regulatory framework authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028. PSNH is required to file its next base distribution rate case for effect in June 2029 and committed not to file its next distribution rate case until 2029. The alternative regulatory framework calculates the annual revenue adjustment using a productivity factor and an adjustment for inflation to provide PSNH with increased revenue for operations. The framework also contains an exogenous events recovery mechanism for certain unforeseen events out of PSNH’s control and exceeding a specified threshold, a performance metric, and an earnings sharing mechanism where PSNH would have to return

75 percent of all revenue back to customers that exceeds 25 basis points more than the authorized ROE of 9.5 percent. Consistent with PSNH’s proposal, lost base revenues for both net metering and energy efficiency were eliminated effective August 1, 2025.

To the extent permanent rates exceed the level of temporary rates, the difference will reconcile back to the date that the temporary rates took effect and the company recovers the difference over a twelve-month term. On August 11, 2025, PSNH filed its recoupment calculation, and on September 10, 2025, the NHPUC issued an order that the recoupment is $9.1 million and will be collected through the RRA regulatory tracking mechanism over a one-year period.

As part of the decision, unrecovered storm costs of $247 million were removed from the rate proceeding for consideration in a separate proceeding. Approval of the ultimate amount of storm costs to be recovered is subject to a separate prudency review that was filed in March of 2024 and is being considered by the NHPUC in a separate dedicated docket, which is at this time complete and awaiting the issuance of an order. Approved storm costs in excess of the amount approved in base rates will be recovered through the Regulatory Reconciliation Adjustment (RRA) regulatory tracking mechanism. The NHPUC increased the level of storm costs recovered in base rates from $12 million to $19 million.