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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense
The components of income tax expense are as follows:
Eversource
(Millions of Dollars)
For the Years Ended December 31,
202120202019
Current Income Taxes:   
Federal$21.5 $73.6 $56.9 
State(21.6)19.1 10.5 
Total Current(0.1)92.7 67.4 
Deferred Income Taxes, Net: 
Federal199.7 173.5 138.4 
State147.4 83.7 71.4 
Total Deferred347.1 257.2 209.8 
Investment Tax Credits, Net(2.8)(3.7)(3.7)
Income Tax Expense$344.2 $346.2 $273.5 
 For the Years Ended December 31,
 202120202019
(Millions of Dollars)CL&PNSTAR
Electric
PSNHCL&PNSTAR ElectricPSNHCL&PNSTAR ElectricPSNH
Current Income Taxes:         
Federal$15.0 $52.3 $43.1 $12.0 $53.9 $20.6 $68.4 $82.6 $22.9 
State(7.0)6.2 10.8 (6.1)6.9 3.8 15.4 18.2 2.2 
Total Current8.0 58.5 53.9 5.9 60.8 24.4 83.8 100.8 25.1 
Deferred Income Taxes, Net:   
Federal76.3 16.3 (14.9)101.1 33.8 (1.3)35.2 0.1 5.8 
State47.6 41.2 0.4 43.4 38.8 8.6 18.8 27.0 10.1 
Total Deferred123.9 57.5 (14.5)144.5 72.6 7.3 54.0 27.1 15.9 
Investment Tax Credits, Net(0.6)(1.7)— (0.7)(2.6)— (0.8)(2.6)— 
Income Tax Expense$131.3 $114.3 $39.4 $149.7 $130.8 $31.7 $137.0 $125.3 $41.0 
Summary of Reconciliation Between Income Tax Expense and Expected Tax
A reconciliation between income tax expense and the expected tax expense at the statutory rate is as follows:
Eversource
(Millions of Dollars, except percentages)
For the Years Ended December 31,
202120202019
Income Before Income Tax Expense$1,572.3 $1,558.9 $1,190.1 
Statutory Federal Income Tax Expense at 21%330.2 327.4 249.9 
Tax Effect of Differences:  
Depreciation(18.1)(11.1)1.9 
Investment Tax Credit Amortization(2.8)(3.7)(3.7)
State Income Taxes, Net of Federal Impact54.4 44.9 24.6 
Dividends on ESOP(5.1)(5.1)(5.1)
Tax Asset Valuation Allowance/Reserve Adjustments44.6 33.4 40.1 
Excess Stock Benefit (4.0)(6.6)(1.5)
EDIT Amortization(69.1)(48.7)(37.4)
Other, Net14.1 15.7 4.7 
Income Tax Expense$344.2 $346.2 $273.5 
Effective Tax Rate21.9 %22.2 %23.0 %
 For the Years Ended December 31,
 202120202019
(Millions of Dollars, except percentages)CL&PNSTAR
Electric
PSNHCL&PNSTAR
Electric
PSNHCL&PNSTAR
Electric
PSNH
Income Before Income Tax Expense$533.0 $590.9 $189.8 $607.6 $575.8 $179.0 $547.8 $557.3 $175.0 
Statutory Federal Income Tax Expense at 21%111.9 124.1 39.9 127.6 120.9 37.6 115.0 117.0 36.8 
Tax Effect of Differences:         
Depreciation(6.4)(3.4)(0.2)0.4 (3.7)(1.4)(0.2)(3.0)(0.8)
Investment Tax Credit Amortization(0.6)(1.7)— (0.7)(2.6)— (0.8)(2.6)— 
State Income Taxes, Net of Federal Impact(4.6)37.5 8.9 (1.2)36.0 9.8 2.5 35.7 9.8 
Tax Asset Valuation
  Allowance/Reserve Adjustments
36.7 — — 30.7 — — 24.5 — — 
Excess Stock Benefit(1.5)(1.4)(0.5)(2.3)(2.3)(0.8)(0.5)(0.5)(0.2)
EDIT Amortization(9.8)(43.2)(10.5)(9.0)(20.4)(15.4)(5.8)(22.9)(4.0)
Other, Net5.6 2.4 1.8 4.2 2.9 1.9 2.3 1.6 (0.6)
Income Tax Expense$131.3 $114.3 $39.4 $149.7 $130.8 $31.7 $137.0 $125.3 $41.0 
Effective Tax Rate24.6 %19.3 %20.8 %24.6 %22.7 %17.7 %25.0 %22.5 %23.4 %
Schedule of Accumulated Deferred Income Tax Obligations The tax effects of temporary differences that give rise to the net accumulated deferred income tax obligations are as follows:
 As of December 31,
 20212020
(Millions of Dollars)EversourceCL&PNSTAR
Electric
PSNHEversourceCL&PNSTAR
Electric
PSNH
Deferred Tax Assets:      
Employee Benefits$270.8 $23.9 $40.3 $14.1 $602.4 $144.5 $79.8 $56.6 
Derivative Liabilities76.8 76.8 — — 92.6 91.8 — — 
Regulatory Deferrals - Liabilities390.7 90.9 215.4 24.3 259.8 30.2 161.8 13.4 
Allowance for Uncollectible Accounts104.1 48.8 21.5 6.2 87.5 42.3 20.9 4.6 
Tax Effect - Tax Regulatory Liabilities783.4 328.2 254.3 100.9 810.9 331.4 271.8 105.2 
Net Operating Loss Carryforwards7.5 — — — 12.7 — — — 
Purchase Accounting Adjustment67.2 — — — 54.5 — — — 
Other196.6 103.9 21.7 22.9 200.3 100.9 14.3 19.8 
Total Deferred Tax Assets1,897.1 672.5 553.2 168.4 2,120.7 741.1 548.6 199.6 
Less:  Valuation Allowance61.5 44.5 — — 48.3 33.7 — — 
Net Deferred Tax Assets$1,835.6 $628.0 $553.2 $168.4 $2,072.4 $707.4 $548.6 $199.6 
Deferred Tax Liabilities:        
Accelerated Depreciation and Other
  Plant-Related Differences
$4,426.0 $1,509.5 $1,553.7 $482.9 $4,153.6 $1,438.1 $1,489.4 $453.8 
Property Tax Accruals88.1 40.5 33.7 6.3 88.7 39.0 37.0 5.8 
Regulatory Amounts:
Regulatory Deferrals - Assets1,260.3 438.3 337.6 198.4 1,376.7 444.8 324.4 263.4 
Tax Effect - Tax Regulatory Assets257.8 181.4 10.9 8.3 244.6 174.4 11.3 8.6 
Goodwill Regulatory Asset - 1999 Merger81.4 — 69.9 — 86.0 — 73.8 — 
Derivative Assets14.9 14.9 — — 17.8 17.8 — — 
Other304.2 5.5 126.9 10.5 200.3 1.6 72.6 5.6 
Total Deferred Tax Liabilities$6,432.7 $2,190.1 $2,132.7 $706.4 $6,167.7 $2,115.7 $2,008.5 $737.2 
Summary of Tax Credits and Loss Carryforwards The following table provides the amounts and expiration dates of state tax credit and loss carryforwards and federal tax credit and net operating loss carryforwards:
As of December 31,
 20212020
(Millions of Dollars)EversourceCL&PNSTAR
Electric
PSNHExpiration RangeEversourceCL&PNSTAR
Electric
PSNHExpiration Range
State Net Operating Loss$138.3 $— $— $— 2021 - 2040$183.4 $— $— $— 2021 - 2040
State Tax Credit197.7 137.0 — — 2021 - 2026186.6 133.4 — — 2020 - 2025
State Charitable Contribution23.7 — — — 2021 - 202510.2 — — — 2020 - 2024
Summary of Income Tax Contingencies A reconciliation of the activity in unrecognized tax benefits, all of which would impact the effective tax rate if recognized, is as follows:
(Millions of Dollars)EversourceCL&P
Balance as of January 1, 2019$45.9 $18.2 
Gross Increases - Current Year12.1 4.0 
Gross Increases - Prior Year3.4 3.3 
Lapse of Statute of Limitations(6.4)(2.4)
Balance as of December 31, 201955.0 23.1 
Gross Increases - Current Year11.9 4.6 
Gross Increases - Prior Year1.4 0.7 
Lapse of Statute of Limitations(6.5)(2.6)
Balance as of December 31, 202061.8 25.8 
Gross Increases - Current Year11.3 3.8 
Gross Decreases - Prior Year(0.3)(0.6)
Lapse of Statute of Limitations(7.0)(2.8)
Balance as of December 31, 2021$65.8 $26.2 
Summary of Income Tax Examinations The following table summarizes Eversource, CL&P, NSTAR Electric, and PSNH's tax years that remain subject to examination by major tax jurisdictions as of December 31, 2021:
DescriptionTax Years
Federal2021
Connecticut2018 - 2021
Massachusetts2018 - 2021
New Hampshire2018 - 2021