Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 28

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 2
Chunk 28
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The Act also directs PURA’s procurement manager, after consultation with the electric distribution companies, the Consumer Counsel and the Commissioner of DEEP, to file with PURA by February 15, 2026 a proposed amendment to the plan to procure standard electric service that would authorize electric distribution companies to, among other things, make dynamic market purchases to attempt to reduce the average cost and minimize the price volatility of standard electric service.

Implementation of the Act’s provisions will require further regulatory proceedings and administrative action.  We do not anticipate any significant impact to our operating revenues or earnings as a result of the Act’s enactment.  However, we expect PURA to initiate proceedings related to securitization, renewable portfolio standard obligations, and other provisions in the Act, which may impact future rate design and recovery mechanisms.

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PFAS Settlements:  Aquarion opted into class-action settlements with the defendants 3M Company, E.I. DuPont de Nemours and Company, Tyco Fire Products LP, and BASF Corporation.  These settlement agreements were entered to resolve claims of per- and polyfluoroalkyl substances (PFAS) contamination in the drinking water provided by public water systems.  In July 2024 and April 2025, Aquarion and other qualifying class members submitted claims to receive settlement awards; these awards were allocated based on the overall number of claimants, PFAS concentrations and flow rates of water sources, and a variety of other factors.  The final, total recovery from these settlements is unknown and will be based on the Claims Administrator’s review of the submitted claims and the subsequent allocation procedures.  Aquarion anticipates receiving recovery from 3M Company over the next nine years and from E.I. DuPont de Nemours and Company over the next two years.  The schedule for BASF Corporation and Tyco Fire Products LP are unknown at this time.  In the second quarter of 2025, Aquarion received $3.2 million of proceeds.  Proceeds from the settlements will be used to fund capital expenditures.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and, at times, difficult, subjective or complex judgments.  Changes in these estimates, assumptions and judgments, in and of themselves, could materially impact our financial position, results of operations or cash flows.  Our management discusses with the Audit Committee of our Board of Trustees significant matters relating to critical accounting policies.  Our critical accounting