Company: CNLHP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000072741-25-000011
Chunk: 133

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 8
Chunk 133
---
 expenses (including vendor services, vehicles and materials)(1.7)(2.9)(0.1)Employee-related expenses (including labor and benefits)(0.4)(0.1)(1.9)Total Base Electric Distribution (Non-Tracked Costs)(6.6)— 7.1 Total Tracked Costs - Increase at CL&P due primarily to higher uncollectible expense; decrease at PSNH due primarily to funding of PSNH storm reserve as part of August 1, 2024 temporary rate change (offset by higher Amortization expense; no earnings impact)9.0 0.4 (4.8)Total Operations and Maintenance$2.4 $0.4 $2.3 

Depreciation expense increased for the three month period for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances. 

51

Amortization of Regulatory Assets/(Liabilities), Net expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms.  This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred.  These costs are recovered from customers in rates and have no impact on earnings.  Amortization expense also includes the amortization of certain costs as those costs are collected in rates.  The variance in Amortization of Regulatory Assets/(Liabilities), Net for the three month period is due primarily to the following:

•The variance at CL&P was due primarily to the deferral adjustment of energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.  The CL&P non-bypassable FMCC retail rate increased and wholesale market sales revenues were higher in 2025 as compared to 2024.  These higher collections resulted in a corresponding increase to amortization expense of $342.6 million for the deferral adjustment for the three month period.  

•The increase in expense at NSTAR Electric was due primarily to the deferral adjustment of energy-related and other tracked costs that are included in the grid modernization regulatory mechanism and higher amortization of storm costs recovered in rates, partially offset by the deferral adjustment of costs included in the solar facilities and advanced metering infrastructure regulatory mechanisms.

Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered