Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 195

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 195
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; and PSNH and Aquarion operate in New Hampshire and are subject to NHPUC regulation.  The regulated companies' distribution rates are set by their respective state regulatory commissions, and their tariffs include mechanisms for periodically adjusting their rates for the recovery of specific incurred costs.  

Base Distribution Rates:  In Connecticut, PURA is required to conduct a review and investigation of the financial and operating records of each electric, natural gas and water utility serving more than seventy-five thousand customers within four years of its last general rate hearing.  PURA can elect to convene a general rate hearing at an interval of less than four years unless prohibited from doing so by an agency decision or other law.  In Massachusetts, electric distribution companies are required to file distribution rate schedules every five years, and natural gas local distribution companies to file distribution rate schedules every 10 years, and those companies are limited to one settlement agreement in any 10-year period.  Aquarion is not required to initiate a rate review with the DPU.  In New Hampshire, PSNH is not required to initiate a rate review with the NHPUC on any set timeframe, and the NHPUC has no obligation to hear any rate matter that it has investigated within a period of two years, though it may elect to do so at its discretion.

Rate Reconciling Mechanisms:  The Eversource electric distribution companies obtain and resell power to retail customers who choose not to buy energy from a competitive energy supplier.  CL&P, NSTAR Electric and PSNH enter into full requirements energy supply procurement contracts for its customers that choose to purchase power from the electric distribution company (standard offer, basic service or default energy service, respectively).  The natural gas distribution companies procure natural gas for firm and seasonal customers.  These energy supply and natural gas supply procurement costs are recovered from customers in supply rates that are approved by the respective state regulatory commission.  The rates are reset periodically (every six months for electric residential customers) and are fully reconciled to their costs.  New energy supply rates for residential customers are established effective July 1st at CL&P and NSTAR Electric and effective August 1st at PSNH.  Each electric and natural gas distribution company fully recovers its energy supply costs through approved regulatory rate mechanisms on a timely basis and, therefore, such costs have no impact on earnings.  Increases or decreases in energy supply retail rates result in corresponding fluctuations in both energy supply procurement revenues and purchased power or purchased natural gas expenses