Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 182

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 182
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 daily operational needs including periodic meter replacement, water main relocation, facility maintenance, and tools.  Aging infrastructure relates to reliability and the replacement of water mains, regulators, storage tanks, pumping stations, wellfields, reservoirs, and treatment facilities.  Load growth and other reflects growth in our service territory, including improvements of acquisitions, installation of new services, and interconnections of systems.

Pending Sale of Aquarion:  In early 2024, Eversource initiated an exploratory assessment of the potential sale of the Aquarion water distribution business.  In December 2024, final bids were received, and Eversource obtained approval from its Board of Trustees to sell the Aquarion water distribution business.  On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion.  Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion in cash, which includes approximately $1.6 billion for the equity and $800 million of net debt that will be extinguished at closing.  The sale is subject to approval by PURA, DPU and the NHPUC, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act as well as other customary closing conditions.  The sale is expected to close in late 2025.  Eversource plans to use the net proceeds from the pending sale to pay down parent company debt.

In the fourth quarter of 2024, upon classifying the assets and liabilities as held for sale, Eversource concluded that the likely sale of Aquarion at a loss resulted in the requirement to test water distribution goodwill for impairment.  Eversource performed an impairment test by comparing the fair value of the business to its carrying value and recorded a goodwill impairment of $297 million, as the estimated fair value of the business based on the anticipated sale was less than the carrying value.  The fair value included future cash outflows of approximately $140 million of estimated income taxes as a result of the transaction.  The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.

Projected Capital Expenditures:  A summary of the projected capital expenditures for the regulated companies' electric transmission and for the total electric distribution and natural gas distribution for 2025 through 2029, including information technology and facilities upgrades and enhancements on behalf of the regulated companies, is as