Company: CNLHP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000072741-25-000011
Chunk: 26

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 26
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-tracked costs).  The variance in Operations and Maintenance expense is due primarily to the following:

(Millions of Dollars)Three Months EndedBase Electric Distribution (Non-Tracked Costs):General costs (including vendor services in corporate areas, uncollectible expense, insurance, fees and assessments)$10.0 Shared corporate costs (including IT system depreciation at Eversource Service)3.3 Storm-related costs(6.5)Operations-related expenses (including vendor services, vegetation management, vehicles and materials)(3.9)Employee-related expenses (including labor and benefits)(2.4)Total Base Electric Distribution (Non-Tracked Costs)0.5 Tracked Electric Costs (Electric Distribution and Electric Transmission) - Increase is due primarily to higher uncollectible expense4.6 Total Electric Distribution and Electric Transmission5.1 Natural Gas Distribution:Base (Non-Tracked Costs) - Increase due primarily to higher uncollectible expense7.7 Tracked Costs - Increase due primarily to higher uncollectible expense9.2 Total Natural Gas Distribution16.9 Water Distribution(2.7)Eversource Parent and Other Companies - other operations and maintenance0.6 Eliminations4.6 Total Operations and Maintenance$24.5 

Depreciation expense increased for the three month period 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 for the three month period 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 and wholesale market sales revenues were higher in 2025 as compared to 2024.  These higher collections resulted in a corresponding increase to amortization expense of $342.6 million for the deferral adjustment for the three month period. 

Energy Efficiency Programs expense includes costs of various state energy policy initiatives