Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 25

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 25
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 energy and emerging technologies investments.

Regulatory Impacts of Climate Change:  Global climate change has received focus from the federal and state governments.  Some of the states in which we operate have aggressive climate goals and implementation plans.  In Connecticut, legislation includes a target to achieve zero-carbon electricity by 2040.  In response to the 2021 Massachusetts climate legislation calling for increased electrification of the transportation and building sectors, in 2023, Eversource developed an Electric Sector Modernization Plan (ESMP) detailing steps the Company will take over the next five and ten years to help ensure reliability and resiliency while supporting a clean energy future.  Approved by the DPU in 2024, the ESMP includes incremental spending for interconnections of clean energy and resiliency initiatives and corresponding cost recovery will be established in 2025.  Similarly, the Massachusetts “Future of Gas” docket (DPU 20-80) specified measures for natural gas local distribution companies to support the state’s net zero by 2050 climate goal.  These state regulations and related policies may introduce risks and opportunities to our businesses if demands for energy change.  The prior administration had communicated a strong focus on addressing climate change by setting a U.S. target of reducing greenhouse gas (GHG) emissions by 50 percent by 2030, compared to 2005 levels, and achieving net-zero emissions by 2050 economy-wide.  The plan called for aggressive measures focused on clean transportation, clean energy and climate investments targeted at environmental justice communities.  In support of this plan, federal funding and incentive programs for clean transportation and energy have offered opportunities for Eversource to invest in projects that have the ability to reduce emissions in the region while benefiting our communities and shareholders.  Under the new administration there is uncertainty about the future of this funding and other clean energy policies, and the potential impact it may have on future projects. In addition, the states we operate in may respond to the federal policy shift with enhancements to existing clean energy programs, creating additional opportunities. 

Eversource continually evaluates the evolving regulatory landscape concerning climate change, which could potentially lead to additional requirements, rules and regulations that could impact how we operate our businesses.  Potential future environmental statutes, regulations, policies and reporting metrics for rate cases that address climate change could impose significant additional costs and there can be no assurance that regulators will approve the recovery of those costs. 

Physical and Transitional Impacts of Climate Change:  Eversource assesses the physical