Company: CNLHP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050033
Chunk: 179

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 179
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 in the retail transmission cost deferral and a decrease in the Local Network Service charge. 

59

Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs).  The variance in Operations and Maintenance expense is due primarily to the following:(Millions of Dollars)Three Months Ended Nine Months EndedBase Electric Distribution (Non-Tracked Costs):Employee-related expenses (including labor and benefits)$7.7 $7.6 Shared corporate costs (including IT system depreciation at Eversource Service)6.2 11.0 Storm costs5.0 3.2 Operations-related expenses (including vegetation management, vendor services, vehicles and materials)0.6 (9.0)Uncollectible Expense(6.5)(0.4)General corporate costs (including vendor services in corporate areas, insurance, fees and assessments)(3.9)— Total Base Electric Distribution (Non-Tracked Costs)9.1 12.4 Tracked Electric Costs (Electric Distribution and Electric Transmission)13.8 22.2 Total Electric Distribution and Electric Transmission22.9 34.6 Natural Gas Distribution:Base (Non-Tracked Costs) - Increase for nine months ended due primarily to higher uncollectible expense and employee-related expenses(0.7)19.6 Tracked Costs 1.0 6.1 Total Natural Gas Distribution0.3 25.7 Water Distribution1.3 (2.7)Eversource Parent and Other Companies - other operations and maintenance(0.4)1.1 Eliminations(16.2)(23.2)Total Operations and Maintenance$7.9 $35.5 

Depreciation expense increased for the three and nine month periods due primarily to higher net plant in service balances. 

Amortization expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms.  This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred.  These costs are recovered from customers in rates and have no impact on earnings.  Amortization expense also includes the amortization of certain costs as those costs are collected in rates. 

The variance in Amortization for the three and nine month periods is due primarily to the deferral adjustments of energy-related and other tracked costs at CL&P (included in the non-bypass