Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 3

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 3
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 prohibits CL&P’s ESI capital tracking mechanism from being reauthorized in the next general distribution proceeding.  The ESI will therefore remain in place until base distribution rates are adjusted in CL&P’s next general distribution rate proceeding.

•A Competitive Transition Assessment (CTA) charge, assessed to recover stranded costs associated with electric industry restructuring such as various IPP contracts.  The CTA is reconciled annually to actual costs incurred and reviewed by PURA, with any difference refunded to, or recovered from, customers.

Public Benefits:  Cost to support energy programs mandated by the state and federal government for financial assistance and energy efficiency programs, purchasing renewable and carbon-free electricity, and funding solar and electric vehicle incentives.

•A Federally Mandated Congestion Charge (FMCC), which recovers any costs imposed by the FERC as part of the New England Standard Market Design, including locational marginal pricing, locational installed capacity payments, any costs approved by PURA to reduce these charges, as well as other costs approved by PURA.  These costs include costs associated with ISO-NE, costs to avoid congestion on the transmission system, purchase contracts with zero-carbon energy generators (including the Millstone and Seabrook nuclear contracts) and with renewable energy generators, costs for capacity and gas peaker plants, renewable energy credits, and other initiatives required by state law.  The non-bypassable component of the FMCC is adjusted periodically and reconciled annually in accordance with the policies and procedures of the PURA, with any differences refunded to, or recovered from, customers.  CL&P is required by regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered into in 2019.  CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs.  The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the FMCC rate with no company profit.    

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•A Systems Benefits Charge (SBC), established to fund expenses associated with various hardship and low-income programs.  The SBC is reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers.  

•A Renewable Energy Investment Charge, which is used to promote investment in renewable energy sources.  Amounts collected by this charge are deposited