Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 233

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 233
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Purchased Power and Transmission expense includes costs associated with providing electric generation service supply to all customers who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as required by regulation, and transmission costs.  These energy supply procurement costs, other energy-related costs, and transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  The variance in Purchased Power and Transmission expense in 2024, as compared to 2023, is due primarily to the following: 

(Millions of Dollars)CL&PNSTAR ElectricPSNHEnergy supply procurement costs$(710.2)$(259.9)$(273.1)Other electric distribution costs43.6 176.6 (89.6)Transmission costs(23.1)60.6 40.3 Eliminations(86.3)(86.0)(38.2)Total Purchased Power and Transmission$(776.0)$(108.7)$(360.6)

The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues).  The variance in other electric distribution costs at CL&P is due to higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism, at NSTAR Electric is due to higher net metering costs and an increase in long-term renewable contract costs, and at PSNH is due primarily to a decrease in long-term renewable energy purchase contract costs.

Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.

•The decrease in transmission costs at CL&P was due primarily to a decrease resulting from the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.  The decrease was partially offset by an increase in costs billed by ISO-NE that support regional grid investments and an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network.

•The increase in transmission costs at NSTAR Electric was due primarily to an increase resulting from the retail transmission cost deferral, an increase in costs billed by ISO-NE, and an increase in Local Network Service charges.

•The increase in transmission costs at PSNH was due primarily to an increase in costs billed by ISO-NE and an increase in Local Network Service charges