Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 221

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 221
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,308 23,129 5.1 %Total Sales Volumes51,323 49,568 3.5 %147,293 142,328 3.5 %25,977 24,617 5.5 %

Weather, fluctuations in energy supply rates, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage and water consumption.  Industrial sales volumes are less sensitive to temperature variations than residential and commercial sales volumes.  In our service territories, weather impacts both electric and water sales volumes during the summer and both electric and natural gas sales volumes during the winter; however, natural gas sales volumes are more sensitive to temperature variations than electric sales volumes.  Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur.

Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table above).  For CL&P, NSTAR Electric, NSTAR Gas, EGMA, Yankee Gas, and our Connecticut water distribution business, fluctuations in retail sales volumes do not materially impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms ("Decoupled" in the table above).  These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized.

Operating Revenues:  The variance in Operating Revenues by segment in 2024, as compared to 2023, is as follows:

(Millions of Dollars)Increase/(Decrease)Electric Distribution$93.0 Natural Gas Distribution(117.8)Electric Transmission205.1 Water Distribution(3.2)Other64.7 Eliminations(251.7)Total Operating Revenues$(9.9)

50

Electric and Natural Gas Distribution Revenues:

Base Distribution Revenues:

•Base electric distribution revenues increased $141.1 million due primarily to a base distribution rate increase at NSTAR Electric effective January 1, 2024 and a temporary base distribution rate increase at PSNH effective August 1, 2024.

•Base natural gas distribution revenues increased $49.2 million due primarily to base distribution rate increases effective November 1, 2024 at EGMA and effective November 1, 2024 and November 1, 2023 at NSTAR Gas.

NSTAR Electric’s PBR mechanism allows for an annual adjustment to base distribution rates for inflation, exogenous events and future capital additions based on a historical five-year