Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 247

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 247
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’s offshore wind business continues to hold a noncontrolling tax equity investment in the South Fork Wind project through a 100 percent ownership in the Class A shares of South Fork Wind Holdings, LLC.

Upon sale, Eversource recorded a loss of approximately $524 million.  As part of the sale, Eversource agreed to make certain post-closing purchase price adjustment payments, which could further impact the final purchase price.  The Company recorded a liability of $365 million reflecting its estimate of the future obligations under the sale terms, which primarily include a cost overrun sharing obligation, an expected obligation to maintain the buyer’s internal rate of return and obligations for other future costs.

We identified the evaluation of the offshore wind investment divestiture as a critical audit matter because of the extensive effort required to audit the subjective and complex judgments associated with the determination of the loss on sale and related contingent liability.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the offshore wind investment divestiture included the following, among others:

•    We tested the effectiveness of management’s controls over loss considerations including the recording and disclosure of the loss on the offshore wind investments, including estimates and assumptions used to measure the loss.  We tested the effectiveness of management’s controls over the loss recognition on the investments.  

•    We evaluated the Company’s disclosures related to the offshore wind transactions in the financial statements.

•    We evaluated management’s assumptions utilized in recording the loss on investments.

•    We evaluated the sufficiency of the contingent liability based on facts and circumstances that existed as of the reporting date.

•    We made inquiries of management and evaluated management’s analysis that supported the project forecast, the timing of the loss, and the assumptions made in the recording of the loss on investments, including the contingent liability.

/s/ Deloitte & Touche LLP          

Hartford, Connecticut

February 14, 2025 

We have served as the Company’s auditor since 2002.

64

EVERSOURCE ENERGY AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS

 As of December 31,(Thousands of Dollars)20242023ASSETS  Current Assets:  Cash$26,656 $53,873 Receivables, Net (net of allowance for uncollectible accounts of $556,164 and $554,455 as of December 31, 2024 and   2023, respectively)1,651,325 1,