Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 315

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 315
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 completion of both sale transactions in 2024, the total proceeds were compared to the carrying value of the investments, including an estimate of liability for post-closing adjustment payments to GIP, and Eversource recognized an aggregate, net after-tax loss on the sales of its offshore wind investments of $524 million.  The aggregate, net after-tax loss is comprised of (1) the lower proceeds related to final terms of the sale transaction to GIP of approximately $225 million related to non-construction costs for the Revolution Wind and South Fork Wind projects, primarily due to a purchase price reduction of $150 million resulting from the delay of the commercial operations date of Revolution Wind, (2) recently identified forecasted construction costs as a result of a delay in the anticipated commercial operation date related to Revolution Wind of approximately $350 million, which includes an estimate for the anticipated post-closing adjustment to GIP related to Eversource’s expected cost overrun sharing obligation, and (3) approximately $326 million, which includes an estimate for the anticipated post-closing adjustment related to Eversource’s expected obligations to GIP as a result of final economics of the Revolution Wind and South Fork Wind projects and other future 

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costs, as well as a net $60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses.  These losses were partially offset by the $377 million gain on the sale of Sunrise Wind. Upon sale, Eversource recorded a contingent liability of $365 million, reflecting its estimate of the future obligations under the GIP sale terms, which include the expected cost overrun sharing obligation, expected obligation to maintain GIP’s internal rate of return, and obligation for other future costs.  The majority of this liability is expected to be settled upon the completion of the Revolution Wind project.  The long-term portion of the liability of $350 million is recorded in Other Long-Term Liabilities, and $15 million is recorded in Other Current Liabilities on Eversource’s balance sheet as of December 31, 2024. Contingencies are evaluated using the best information available at the time the financial statements are prepared, and this assessment involves judgments and assumptions about future events.  Factors that could increase the post-closing adjustment payments owed to GIP include the ultimate cost of construction and extent of cost overruns for Revolution Wind, delays in construction, which would impact the economics associated with the purchase price adjustment, and Revolution Wind’s eligibility for