REGULATORY ACCOUNTING

3 Months Ended

Mar. 31, 2026

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.

Regulatory Assets: The components of regulatory assets were as follows:


	As of March 31, 2026								As of December 31, 2025
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Storm Costs, Net	$	2,100.4	$	1,028.9	$	602.7	$	468.8	$	1,959.3	$	991.3	$	499.6	$	468.4
Regulatory Tracking Mechanisms	1,540.3		172.7		749.7		115.9		1,573.8		206.5		705.6		93.2
Income Taxes, Net	1,051.0		547.0		165.9		22.4		1,044.5		546.1		161.5		23.3
Benefit Costs	984.9		172.5		297.1		61.3		992.8		173.7		300.0		61.7
Derivative Contracts	636.2		—		636.2		—		753.2		0.1		753.1		—
Securitized Stranded Costs	295.3		—		—		295.3		306.1		—		—		306.1
Cost of Removal	267.5		—		8.1		—		262.5		—		8.1		—
Goodwill-related	226.2		—		194.2		—		230.4		—		197.8		—
Asset Retirement Obligations	166.0		44.9		86.1		5.5		162.8		44.2		84.6		5.4
Environmental Remediation Costs	134.2		—		—		—		136.1		—		—		—
EGMA Acquisition and Integration Costs	82.3		—		—		—		82.3		—		—		—
Other Regulatory Assets	181.1		19.4		84.5		2.7		189.9		19.5		92.0		3.0
Total Regulatory Assets	7,665.4		1,985.4		2,824.5		971.9		7,693.7		1,981.4		2,802.3		961.1
Less: Current Portion	1,897.2		235.0		1,018.9		101.4		1,975.1		265.2		978.8		119.9
Total Long-Term Regulatory Assets	$	5,768.2	$	1,750.4	$	1,805.6	$	870.5	$	5,718.6	$	1,716.2	$	1,823.5	$	841.2

Regulatory Costs in Other Long-Term Assets: Eversource's regulated companies had $247.4 million (including $130.3 million for CL&P, $47.4 million for NSTAR Electric and $5.1 million for PSNH) and $244.2 million (including $127.1 million for CL&P, $51.0 million for NSTAR Electric and $5.4 million for PSNH) of additional regulatory costs not yet specifically approved as of March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025, these regulatory costs included $123.7 million (including $60.9 million for CL&P and $30.7 million for NSTAR Electric) and $123.2 million (including $57.0 million for CL&P and $34.0 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs.

Regulatory Liabilities: The components of regulatory liabilities were as follows:


	As of March 31, 2026								As of December 31, 2025
(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	$	2,407.8	$	928.6	$	841.2	$	317.3	$	2,423.4	$	933.3	$	847.9	$	319.8
Regulatory Tracking Mechanisms	1,578.2		661.8		648.2		125.5		1,186.6		457.3		535.2		111.2
Cost of Removal	917.7		297.5		498.0		54.6		867.1		275.1		479.4		45.5
Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP	534.5		76.2		264.7		50.9		509.4		72.8		252.5		48.5
AFUDC - Transmission	187.3		74.7		112.6		—		179.4		72.0		107.4		—
Derivative Contract	131.2		—		131.2		—		91.0		—		91.0		—
Benefit Costs	74.9		9.1		20.2		6.9		80.4		8.8		24.5		6.8
Other Regulatory Liabilities	232.0		56.4		41.7		4.0		200.8		43.3		15.0		4.0
Total Regulatory Liabilities	6,063.6		2,104.3		2,557.8		559.2		5,538.1		1,862.6		2,352.9		535.8
Less: Current Portion	1,740.0		635.3		835.4		134.1		1,264.6		417.5		650.8		118.4
Total Long-Term Regulatory Liabilities	$	4,323.6	$	1,469.0	$	1,722.4	$	425.1	$	4,273.5	$	1,445.1	$	1,702.1	$	417.4

FERC ROE Complaints: As of March 31, 2026, Eversource has a regulatory liability for revenues subject to refund of $60.4 million (pre-tax) as a result of the March 19, 2026 FERC decision in the FERC ROE complaint proceedings, which is reflected within Regulatory Tracking Mechanisms in the table above. The regulatory liability totaled $28.7 million for CL&P, $24.2 million for NSTAR Electric, and $7.5 million for PSNH. The liability recorded reflects the difference between the billed ROE and the replacement ROE for the first complaint period, including interest. Eversource does not have any other reserves recorded for the other complaint periods, as these remaining complaints were dismissed in the decision. See Note 9C, "Commitments and Contingencies – FERC ROE Complaints," for further information on the FERC ROE decision.