Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 227

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 227
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2023 benefit related to the establishment of a new regulatory tracking mechanism that allowed for the recovery of previously incurred operating expenses associated with poles acquired from Consolidated Communications on May 1, 2023.  The establishment of the PPAM regulatory asset resulted in a pre-tax benefit of $16.9 million recorded in Amortization expense on the statement of income in 2023.

Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings.  Energy Efficiency Programs expense includes a deferral adjustment that reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. Energy Efficiency Programs expense decreased due primarily to the deferral adjustment, partially offset by higher program spending. 

Taxes Other Than Income Taxes expense increased due primarily to higher property taxes as a result of higher utility plant balances and higher Connecticut gross earnings taxes. 

Loss on Pending Sale of Aquarion relates to the impairment charge recorded in 2024 to write down the carrying value of the water business to fair value resulting from the expected sale of Aquarion.  For further information, see "Business Development and Capital Expenditures – Pending Sale of Aquarion" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.

Interest Expense increased due primarily to an increase in interest on long-term debt as a result of debt issuances ($220.7 million), higher interest on short-term notes payable due to increased borrowings ($16.0 million), an increase in interest expense on regulatory deferrals ($15.8 million), and higher amortization of debt discounts and premiums, net ($4.1 million), partially offset by an increase in capitalized AFUDC related to debt funds and other capitalized interest ($3.2 million), and a decrease in RRB interest expense ($1.4 million).

Losses on Offshore Wind Investments relates to the loss recorded on the 2024 sales of our equity method offshore wind investments and the impairment charge in 2023 resulting from the expected sales of these offshore wind investments.  See "Business Development and Capital Expenditures – Offshore Wind Business" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations for further information.  

53

Other Income, Net increased due primarily to an increase in interest income primarily from regulatory deferrals ($44.0 million