Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 382

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 382
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)Other Income, Net (1)Settlement Losses(4.3)(12.4)— Other Income, Net (1)Total Defined Benefit Plan Costs(11.4)(19.7)(9.3) Tax Effect1.7 6.4 2.3 Income Tax ExpenseDefined Benefit Plan Costs, Net of Tax(9.7)(13.3)(7.0) Total Amounts Reclassified from AOCI, Net of Tax$(9.7)$(14.5)$(7.0) (1)    These amounts are included in the computation of net periodic Pension, SERP and PBOP costs.  See Note 1L, "Summary of Significant Accounting Policies – Other Income, Net" and Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for further information.

17.     DIVIDEND RESTRICTIONS

Eversource parent's ability to pay dividends may be affected by certain state statutes, the ability of its subsidiaries to pay common dividends and the leverage restriction tied to its consolidated total indebtedness to total capitalization ratio requirement in its revolving credit agreements.  Pursuant to the joint revolving credit agreement of Eversource, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut, and to the NSTAR Electric revolving credit agreement, Eversource is required to maintain consolidated total indebtedness to total capitalization ratio of no greater than 70 percent at the end of each fiscal quarter and each other company is required to maintain consolidated total indebtedness to total capitalization ratio of no greater than 65 percent at the end of each fiscal quarter.  As of December 31, 2024, all companies were in compliance with such covenant and in compliance with all such provisions of the revolving credit agreements that may restrict the payment of dividends as of December 31, 2024.The Retained Earnings balances subject to dividend restrictions were $3.93 billion for Eversource, $2.82 billion for CL&P, $3.13 billion for NSTAR Electric and $808.7 million for PSNH as of December 31, 2024.

CL&P, NSTAR Electric and PSNH are subject to Section 305 of the Federal Power Act that makes it unlawful for a public utility to make or pay a dividend from any funds "properly included in its capital account."  Management believes that this