INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

The components of income tax expense are as follows:


Eversource (Millions of Dollars)	For the Years Ended December 31,
	2025		2024		2023
Current Income Taxes:
Federal	$	77.5	$	(23.4)	$	75.8
State	37.5		14.3		0.6
Total Current	115.0		(9.1)		76.4
Deferred Income Taxes, Net:
Federal	63.7		266.3		(0.9)
State	(36.4)		169.6		86.3
Total Deferred	27.3		435.9		85.4
Investment Tax Credits, Net	(2.0)		(2.1)		(2.1)
Income Tax Expense	$	140.3	$	424.7	$	159.7


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Current Income Taxes:
Federal	$	191.1	$	118.9	$	57.3	$	25.9	$	65.9	$	(1.7)	$	(10.8)	$	50.7	$	(40.0)
State	70.9		37.2		23.5		(6.8)		15.2		(5.2)		(2.3)		7.8		(20.0)
Total Current	262.0		156.1		80.8		19.1		81.1		(6.9)		(13.1)		58.5		(60.0)
Deferred Income Taxes, Net:
Federal	(66.5)		10.0		3.7		107.9		63.9		50.8		130.3		50.1		81.2
State	(28.3)		25.6		7.6		67.5		47.3		26.3		53.7		46.1		37.8
Total Deferred	(94.8)		35.6		11.3		175.4		111.2		77.1		184.0		96.2		119.0
Investment Tax Credits, Net	—		(1.7)		—		—		(1.7)		—		—		(1.7)		—
Income Tax Expense	$	167.2	$	190.0	$	92.1	$	194.5	$	190.6	$	70.2	$	170.9	$	153.0	$	59.0

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:


	For the Year Ended December 31, 2025
	Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Income Before Income Tax Expense	1,840.2		N/A		$	718.5	N/A		$	820.7	N/A		$	361.5	N/A

U.S. Federal Statutory Income Tax Expense at 21%	386.4		21	%	150.9		21	%	172.3		21	%	75.9		21	%
Tax Effect of Differences:
State and Local Income Tax Effects, Net of Federal Impact (1)	2.4		0.1		39.6		5.5		49.6		6.0		24.6		6.8

Federal Tax Credits
Research and Development Tax Credits	(22.6)		(1.2)		—		—		—		—		—		—

Changes in Valuation Allowances	(241.6)		(13.1)		(6.2)		(0.9)		—		—		—		—

Nontaxable or Nondeductible Items:
Depreciation	(23.4)		(1.3)		2.5		0.3		(10.6)		(1.3)		(2.2)		(0.6)

EDIT Amortization	(50.6)		(2.7)		(17.0)		(2.4)		(21.7)		(2.6)		(8.1)		(2.2)


Loss on Offshore Wind	59.5		3.2		—		—		—		—		—		—
Other	30.2		1.6		(2.6)		(0.4)		0.4		—		1.9		0.5
Income Tax Expense/Effective Tax Rate	$	140.3	7.6	%	$	167.2	23.3	%	$	190.0	23.2	%	$	92.1	25.5	%

(1) State taxes in Connecticut (for CL&P), Massachusetts (for NSTAR Electric) and New Hampshire (for PSNH) made up the majority of the tax effects in this category for Eversource.


	For the Years Ended December 31,
	2024												2023
(Millions of Dollars, except percentages)	Eversource			CL&P			NSTAR Electric			PSNH			Eversource			CL&P			NSTAR Electric			PSNH
Income/(Loss) Before Income Tax Expense	$	1,243.8		$	707.1		$	826.9		$	285.1		$	(275.0)		$	689.6		$	697.5		$	254.7

Statutory Federal Income Tax Expense at 21%	261.2			148.5			173.7			59.9			(57.7)			144.9			146.5			53.5
Tax Effect of Differences:
Depreciation	(22.6)			0.4			(10.9)			(1.0)			(25.8)			(5.6)			(8.8)			(1.0)
Investment Tax Credit Amortization	(2.1)			—			(1.7)			—			(2.1)			—			(1.7)			—
Other Federal Tax Credits	(67.0)			—			—			—			(42.5)			—			—			—
State Income Taxes, Net of Federal Impact	43.2			(2.8)			49.4			16.7			(11.4)			(10.7)			42.5			14.1
Dividends on ESOP	(5.5)			—			—			—			(5.3)			—			—			—
Tax Asset Valuation Allowance/Reserve Adjustments	278.6			50.8			—			—			295.8			51.3			—			—
Share-Based Payment Tax Deficiency	2.3			0.8			0.8			0.3			0.5			0.2			0.2			0.1
EDIT Amortization	(37.0)			(9.2)			(20.0)			(6.5)			(51.5)			(10.5)			(28.4)			(6.8)
Other, Net	(26.4)			6.0			(0.7)			0.8			59.7			1.3			2.7			(0.9)
Income Tax Expense	$	424.7		$	194.5		$	190.6		$	70.2		$	159.7		$	170.9		$	153.0		$	59.0
Effective Tax Rate	34.1		%	27.5		%	23.0		%	24.6		%	(58.1)		%	24.8		%	21.9		%	23.2		%

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,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Deferred Tax Assets:
Employee Benefits	$	273.0	$	37.3	$	92.5	$	16.1	$	266.9	$	33.7	$	83.5	$	14.5
Derivative Liabilities	205.8		—		205.8		—		19.6		19.6		—		—
Regulatory Deferrals - Liabilities	716.7		212.7		402.5		48.3		508.7		128.0		316.7		19.6
Allowance for Uncollectible Accounts	151.9		70.2		30.7		6.2		145.3		75.4		26.5		3.8
Tax Effect - Tax Regulatory Liabilities	696.0		310.7		201.1		90.5		720.8		317.6		214.3		93.2
Net Operating Loss Carryforwards	314.0		—		—		—		198.2		—		—		1.5
Purchase Accounting Adjustment	48.2		—		—		—		52.1		—		—		—
Equity Method Wind Investments	760.3		—		—		—		1,098.6		—		—		—
Other	229.6		133.3		30.9		19.7		267.1		134.7		31.5		24.1
Total Deferred Tax Assets	3,395.5		764.2		963.5		180.8		3,277.3		709.0		672.5		156.7
Less: Valuation Allowance (1)	293.4		104.2		—		—		558.2		104.1		—		—
Net Deferred Tax Assets	$	3,102.1	$	660.0	$	963.5	$	180.8	$	2,719.1	$	604.9	$	672.5	$	156.7
Deferred Tax Liabilities:
Accelerated Depreciation and Other Plant-Related Differences	$	5,880.4	$	1,925.0	$	1,963.2	$	673.3	$	5,493.3	$	1,820.3	$	1,845.2	$	618.4
Property Tax Accruals	118.3		56.8		47.5		7.0		107.4		49.8		44.5		6.5
Regulatory Amounts:
Regulatory Deferrals - Assets	1,837.0		405.1		725.3		263.4		1,709.1		522.9		519.9		277.8
Tax Effect - Tax Regulatory Assets	308.5		199.6		9.6		10.3		294.5		194.7		10.0		9.4
Goodwill-related Regulatory Asset - 1999 Merger	62.9		—		54.0		—		67.5		—		58.0		—
Employee Benefits	404.1		60.5		194.7		31.0		353.0		51.0		175.4		23.5
Derivative Assets	24.9		—		24.9		—		3.8		3.8		—		—
Other	113.2		18.9		31.6		2.1		101.7		15.2		24.9		2.7
Total Deferred Tax Liabilities	$	8,749.3	$	2,665.9	$	3,050.8	$	987.1	$	8,130.3	$	2,657.7	$	2,677.9	$	938.3

(1) As of December 31, 2025 and 2024, the Eversource Valuation Allowance of $293.4 million and $558.2 million, includes $162.4 million and $427.0 million, respectively, related to Eversource’s share of offshore wind investments.

Schedule of Supplemental Cash Flow Information


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
	2025		2024		2023
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	1,182.6	$	1,014.4	$	783.2
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	508.2		472.5		564.1


	As of and For the Years Ended December 31,
	2025						2024						2023
(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	$	208.4	$	232.4	$	83.9	$	216.8	$	215.1	$	78.4	$	176.8	$	182.8	$	62.8
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	143.2		160.5		59.2		95.8		155.4		77.7		139.8		178.9		65.9

Income Taxes Paid: The following tables present income taxes paid, net of refunds received, disaggregated by jurisdiction. The jurisdictions presented include federal, state, and any individual jurisdictions where the amount of income taxes paid equals or exceeds five percent of the total income taxes paid during the reporting period.


Eversource (Millions of Dollars)	For the Years Ended December 31,
	2025		2024		2023
Cash Paid/(Received) for Income Taxes, Net of Refunds:
Federal Income Taxes	$	(48.8)
State Income Taxes:
Connecticut	6.2
Massachusetts	(8.7)

Other	2.9
State Income Taxes	0.4
Total Cash Paid/(Received) for Income Taxes, Net of Refunds	$	(48.4)
Total Cash Paid/(Received) for Income Taxes (Prior to ASU 2023-09)			$	(69.6)	$	39.2


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Cash Paid for Income Taxes, Net of Refunds:
Federal Income Taxes	$	113.1	$	124.5	$	60.0
State Income Taxes:
Connecticut	22.4		—		—
Massachusetts	(a)		40.3		(a)
New Hampshire	—		—		22.9
Other	0.2		—		0.1
State Income Taxes	22.6		40.3		23.0
Total Cash Paid for Income Taxes, Net of Refunds	$	135.7	$	164.8	$	83.0
Total Cash Paid/(Received) for Income Taxes (Prior to ASU 2023-09)							$	(47.4)	$	118.7	$	(36.0)	$	(44.1)	$	31.3	$	(59.9)

(a) Did not meet the five percent threshold required for separate disclosure.

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,
	2025									2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Expiration Range	Eversource		CL&P		NSTAR Electric		PSNH		Expiration Range
Federal Net Operating Loss	$	1,079.4	$	—	$	—	$	—	—	$	877.7	$	—	$	—	$	7.1	—
Federal Tax Credit	397.4		0.3		—		—		2044	404.1		—		—		—		2044
Federal Charitable Contribution	1.1		—		—		—		2029	—		—		—		—		—
Federal Capital Loss	1,044.6		—		—		—		2025 - 2029	2,700.0		—		—		—		2024 - 2029
State Net Operating Loss	1,447.8		—		—		—		2040 - 2044	214.1		—		—		—		2024 - 2044
State Tax Credit	236.7		153.9		—		—		2025 - 2030	238.3		157.7		—		—		2024 - 2029
State Capital Loss	1,044.6		—		—		—		2025 - 2029	2,700.0		—		—		—		2024 - 2029
State Charitable Contribution	13.2		—		—		—		2026 - 2029	15.2		—		—		—		2024 - 2028

Schedule of Unrecognized Tax Benefits Roll Forward

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)	Eversource		CL&P
Balance as of January 1, 2023	$	67.1	$	25.5
Gross Increases - Current Year	23.4		4.0
Gross Increases - Prior Year	0.1		0.1
Gross Decreases - Prior Year	(0.1)		—
Lapse of Statute of Limitations	(9.2)		(3.8)
Balance as of December 31, 2023	81.3		25.8
Gross Increases - Current Year	14.2		2.9
Gross Increases - Prior Year	11.0		—
Gross Decreases - Prior Year	(0.2)		(0.2)
Lapse of Statute of Limitations	(12.6)		(6.6)
Balance as of December 31, 2024	93.7		21.9
Gross Increases - Current Year	11.9		3.2
Gross Increases - Prior Year	5.9		1.1

Lapse of Statute of Limitations	(13.3)		(4.6)
Balance as of December 31, 2025	$	98.2	$	21.6

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, 2025:


Description			Tax Years
Federal			2022 - 2025(1)
Connecticut			2022 - 2025
Massachusetts			2022 - 2025
New Hampshire			2022 - 2025

(1) The Company’s Corporate Income Tax Returns for 2022 through 2024 were reviewed and closed as part of the annual IRS CAP program, with the exception for partnership investments of the Company. The Company was informed of an IRS audit of one of the partnership returns for the tax year 2022 and the IRS reserves the right to audit any years thereafter. The Company recorded in the above Unrecognized Tax Benefits a reserve associated with this Partnership audit. These years remain open in relation to those audits.