Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 146

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 8
Chunk 146
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 a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase referenced above.  The total distribution revenue requirement effective August 1, 2025 is $519 million.  The order also established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio in PSNH’s capital structure.  The order allowed for the effect of the permanent rate increase to be extended back to the temporary rate period, subject to conditions and limitations included in the decision.  This recoupment will be collected through the Regulatory Reconciliation Adjustment (RRA) regulatory tracking mechanism over a one-year period.  PSNH is currently working through the recoupment calculation, which will be filed by August 11, 2025 with the NHPUC.

This revenue requirement also contains an alternative regulation distribution revenue requirement adjustment.  The NHPUC approved a first-of-its-kind in New Hampshire, alternative regulatory framework that authorizes annual revenue adjustments on August 1st of 2026, 2027 and 2028, with a requirement for PSNH to file for its next base distribution rate increase for effect in June 2029.  The alternative regulatory framework includes a revenue-cap formula adjusted for annual inflation and a productivity factor adjustment to provide PSNH with increased revenue for capital and overhead necessary to run its business, an exogenous events recovery mechanism, performance metrics and an earnings sharing mechanism.  Consistent with PSNH’s proposal, lost base revenues for both net metering and energy efficiency are eliminated effective August 1, 2025. 

As part of the decision, unrecovered storm costs of $247 million were removed from the rate proceeding for consideration in a separate proceeding.  Approval of the ultimate amount of storm costs to be recovered is subject to a separate prudency review that was filed in March of 2024 and is being considered by the NHPUC in a separate dedicated docket, which is at this time complete and awaiting the issuance of an order.  Approved storm costs in excess of the amount approved in base rates will be recovered through the RRA regulatory tracking mechanism.  The NHPUC increased the level of storm costs recovered in base rates from $12 million to $19 million.

Legislative, Policy and Legal Matters

Federal:  On July 4, 2025, An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14 (known as the