Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 306

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 306
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 Sale.”(2)These assets are primarily comprised of computer software, hardware and equipment at Eversource Service and buildings at The Rocky River Realty Company.Depreciation:  Depreciation of utility assets is calculated on a straight-line basis using composite rates based on the estimated remaining useful lives of the various classes of property (estimated useful life for PSNH distribution and the water utilities).  The composite rates, which are subject to approval by the appropriate state regulatory agency, include a cost of removal component, which is collected from customers over the lives of the plant assets and is recognized as a regulatory liability.  Depreciation rates are applied to property from the time it is placed in service.Upon retirement from service, the cost of the utility asset is charged to the accumulated provision for depreciation.  The actual incurred removal costs are applied against the related regulatory liability.  

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The depreciation rates for the various classes of utility property, plant and equipment aggregate to composite rates as follows:(Percent)202420232022Eversource3.2 %3.1 %3.0 %CL&P2.9 %2.8 %2.8 %NSTAR Electric2.8 %2.7 %2.7 %PSNH3.0 %3.0 %3.0 %The following table summarizes average remaining useful lives of depreciable assets:   As of December 31, 2024(Years)EversourceCL&PNSTAR ElectricPSNHDistribution - Electric33.434.733.429.9Distribution - Natural Gas34.7— — — Transmission - Electric39.735.845.139.8Distribution - Water45.2— — — Solar22.8— 22.8— Other (1)9.9— — — (1)The estimated useful life of computer software, hardware and equipment primarily ranges from 5 to 15 years and of buildings is 40 years.

4.     DERIVATIVE INSTRUMENTS  

The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers.  The costs associated with supplying energy to customers are recoverable from customers in future rates.  These regulated companies manage the risks associated with the price volatility of energy and energy-related products through the use of derivative and non-derivative contracts.  Many of