Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 36

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 2
Chunk 36
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 and Transmission$(22.7)$81.7 

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

The increase in other electric distribution costs for the six month period is due primarily to increases at NSTAR Electric in the long-term renewable energy contract cost deferral and in net metering costs.  These increases were partially offset by lower stranded costs resulting from higher RGGI proceeds received at PSNH, which are credited back to customers, and lower long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P.

Costs at the natural gas distribution segment relate to supply procurement costs for retail customers.  Total natural gas costs increased for the three month period due primarily to higher average prices and an increase in the retail cost deferral, partially offset by lower average purchased volumes. Total natural gas costs increased for the six month period due primarily to higher average prices and higher average purchased volumes, partially offset by a decrease in the retail cost deferral.

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 increase in transmission costs for the three and six month periods was primarily the result of an increase in costs billed by ISO-NE that support regional grid investments and an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network.  These increases were partially offset by a decrease in the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed to customers. 

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Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water 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)Three Months Ended Six Months EndedBase Electric Distribution (Non-Tracked