Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 226

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 226
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 of Dollars)Increase/(Decrease)Base Electric Distribution (Non-Tracked Costs):Employee-related expenses (including labor and benefits)$22.7 Uncollectible expense14.9 Shared corporate costs (including IT system depreciation at Eversource Service)11.2 Operations-related expenses (including vegetation management, vendor services, vehicles and materials)6.3 General costs (including vendor services in corporate areas, insurance, fees and assessments)3.8 Storm-related costs(4.5)Total Base Electric Distribution (Non-Tracked Costs)54.4 Tracked Electric Costs (Electric Distribution and Electric Transmission) - Increase due primarily to higher transmission expense,  increases in grid modernization and pension tracking mechanisms at NSTAR Electric, and higher uncollectible expense98.0 Total Electric Distribution and Electric Transmission152.4 Natural Gas Distribution:Base (Non-Tracked Costs) - Decrease due primarily to lower uncollectible expense(14.2)Tracked Costs11.0 Total Natural Gas Distribution (3.2)Water Distribution3.8 Eversource Parent and Other Companies - other operations and maintenance26.8 Eliminations(62.6)Total Operations and Maintenance$117.2 

Depreciation expense increased due primarily to higher net plant in service balances.

Amortization expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms.  This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred.  These costs are recovered from customers in rates and have no impact on earnings.  Amortization expense also includes the amortization of certain costs as those costs are collected in rates. 

The variance in Amortization is due primarily to the deferral adjustment of energy-related and other tracked costs at CL&P (included in the non-bypassable component of the FMCC mechanism), NSTAR Electric and PSNH, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.  The CL&P non-bypassable FMCC retail rate increased in 2024 as compared to 2023, and the higher collections lowered the regulatory under-recovery deferral adjustment, resulting in an increase to amortization expense of $548.5 million.  Amortization expense also increased at NSTAR Electric as a result of an increase in storm costs recovered in rates and increased  at PSNH due to the absence of a