Company: CNLHP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000072741-25-000011
Chunk: 125

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 8
Chunk 125
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 the wholesale electric market.  The increase in transmission costs for the three month period was primarily the result of an increase in costs billed by ISO-NE that support regional grid investments and an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network.  These increases were partially offset by a decrease in the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed to customers.

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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 EndedBase Electric Distribution (Non-Tracked Costs):General costs (including vendor services in corporate areas, uncollectible expense, insurance, fees and assessments)$10.0 Shared corporate costs (including IT system depreciation at Eversource Service)3.3 Storm-related costs(6.5)Operations-related expenses (including vendor services, vegetation management, vehicles and materials)(3.9)Employee-related expenses (including labor and benefits)(2.4)Total Base Electric Distribution (Non-Tracked Costs)0.5 Tracked Electric Costs (Electric Distribution and Electric Transmission) - Increase is due primarily to higher uncollectible expense4.6 Total Electric Distribution and Electric Transmission5.1 Natural Gas Distribution:Base (Non-Tracked Costs) - Increase due primarily to higher uncollectible expense7.7 Tracked Costs - Increase due primarily to higher uncollectible expense9.2 Total Natural Gas Distribution16.9 Water Distribution(2.7)Eversource Parent and Other Companies - other operations and maintenance0.6 Eliminations4.6 Total Operations and Maintenance$24.5 

Depreciation expense increased for the three month period 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 month period is due primarily to the deferral adjustment of energy-related and other tracked