Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 44

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 2
Chunk 44
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, other energy-related costs, and transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  The variance in Purchased Power and Transmission expense is due primarily to the following: 

(Millions of Dollars)CL&PNSTAR ElectricPSNHEnergy supply procurement costs$(107.2)$(55.3)$(9.4)Other electric distribution costs(6.8)74.0 (11.5)Transmission costs(35.9)73.8 28.4 Eliminations(22.0)(40.5)(13.1)Total Purchased Power and Transmission$(171.9)$52.0 $(5.6)

The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues).  The variance in other electric distribution costs at CL&P is due to lower long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism, at NSTAR Electric is due to an increase in the long-term renewable energy purchase contract cost deferral and higher net metering costs, and at PSNH is due to lower stranded costs resulting from higher Regional Greenhouse Gas Initiative (RGGI) proceeds received, which are credited back to customers at PSNH.

Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.

•The decrease in transmission costs at CL&P was due primarily to a decrease resulting from the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.  The decrease was partially offset by an increase in costs billed by ISO-NE that support regional grid investments.

•The increase in transmission costs at NSTAR Electric and PSNH was due primarily to an increase in costs billed by ISO-NE that support regional grid investments, an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network and an increase in the retail transmission cost deferral. 

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs).  The variance in Operations and Maintenance expense is due primarily to the following:

(Millions of Dollars)CL&PNSTAR ElectricPSNHBase Electric Distribution (Non-Tracked Costs): Uncollectible Expense$3.7