Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 279

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 279
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, 2025, the Company retrospectively adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires entities to disclose significant segment expenses, other segment items, and the title and position of the chief operating decision maker (CODM). Additionally, the ASU requires entities to disclose how the CODM assesses segment performance and allocates resources, among certain other required disclosures.  Furthermore, current annual disclosures will be required in interim periods.  The modified disclosures are included in Note 23, “Segment Information.”D.     CashCash includes cash on hand.  At the end of each reporting period, any overdraft amounts are reclassified from Cash to Accounts Payable on the balance sheets.E.     Allowance for Uncollectible AccountsReceivables, Net on the balance sheets primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs, and property rentals.  Receivables, Net also includes customer receivables for the purchase of electricity from a competitive third party supplier, the current portion of customer energy efficiency loans, property damage receivables and other miscellaneous receivables.  There is no material concentration of receivables.  Receivables are recorded at amortized cost, net of a credit loss provision (or allowance for uncollectible accounts).  The current expected credit loss (CECL) model is applied to receivables for purposes of calculating the allowance for uncollectible accounts.  This model is based on expected losses and results in the recognition of estimated expected credit losses, including uncollectible amounts for both billed and unbilled revenues, over the life of the receivable at the time a receivable is recorded.The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category.  Factors in determining credit loss include historical collection, write-off experience, analysis of delinquency statistics, and management's assessment of collectability from customers, including current economic conditions, customer payment trends, the impact on customer bills because of energy usage trends and changes in rates, flexible payment plans and financial hardship arrearage management programs offered to customers, reasonable forecasts, and expectations of future collectability and collection efforts.  Management continuously assesses the collectability of receivables and adjusts estimates based on