Company: CNLHP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050033
Chunk: 43

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 43
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 Eliminations are also related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business in rates charged to their customers.

Purchased Power, Purchased Natural Gas and Transmission expense includes costs associated with providing electric generation service supply and natural gas 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 electric and natural gas 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, Purchased Natural Gas and Transmission expense is due primarily to the following: 

(Millions of Dollars)Three Months Ended Nine Months EndedEnergy supply procurement costs$0.2 $(171.7)Other electric distribution costs50.6 106.2 Natural gas supply costs3.5 140.3 Transmission costs79.3 145.7 Eliminations(2.2)(7.4)Total Purchased Power, Purchased Natural Gas and Transmission$131.4 $213.1 

The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues).  The increase in other electric distribution costs for the three month period is due primarily to higher long-term contractual energy-related costs and the cost of renewable energy credits that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, higher stranded costs resulting from lower Regional Greenhouse Gas Initiative (RGGI) proceeds received at PSNH, which are credited back to customers, and an increase in the long-term renewable energy purchase contract cost deferral at NSTAR Electric.

The increase in other electric distribution costs for the nine month period is due primarily to an increase in the long-term renewable energy purchase contract cost deferral and in net metering costs at NSTAR Electric, higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and higher net metering costs at PSNH.

Costs at the natural gas distribution segment relate to supply procurement costs for retail customers.  Total natural gas costs increased for the three month period due primarily to higher average prices and an increase in the retail cost deferral, partially offset by lower average purchased volumes. Total natural gas