Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 316

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 316
---
 federal investment tax credits at a lower value than assumed and included in the purchase price.  The purchase price included the sales value related to a 40 percent level of federal investment tax credits, 10 percent of which is the energy community investment tax credit (ITC) adder included in the Inflation Reduction Act of approximately $170 million related to Revolution Wind.  Although management believes the ITC adder value is realizable, there is some uncertainty at this time as to whether those ITC adders can be achieved, and management continues to evaluate the project’s qualifications and to monitor guidance issued by the United States Treasury Department.  A change in the expected value or qualification of ITC adders could result in a significant loss in a future period.New information or future developments that arise as construction progresses and as cost estimates are reviewed and revised will require a reassessment of the estimated liability for the post-closing adjustment payments.  The Company is currently aware that construction of the offshore foundations, offshore substation and turbine tower installations could result in increased cost overruns in the future.  Only preliminary construction cost projections are available for these cost overruns, and there is insufficient updated information at this point in order for Eversource to change its estimate with reasonably estimable information.  Eversource will continue to assess the potential exposure and adjust the liability as needed.  It is expected that updated costs estimates will become available in the first half of 2025, and adverse changes in facts and circumstances could result in additional losses that could be material.  The Company believes it is reasonably possible that there is an additional loss in excess of the liability recorded, but management cannot reasonably estimate a range of loss beyond the $365 million recorded at this time.  Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.  Under the agreement with GIP, Eversource’s existing and certain additional credit support obligations for Revolution Wind are expected to roll off as the project completes construction.  Under the agreement with Ørsted, Eversource’s existing credit support obligations for Sunrise Wind were either terminated or indemnified by Ørsted as a result of the sale.  Eversource has entered into separate construction management agreements to manage Sunrise Wind’s and Revolution Wind’s onshore electric substation construction through completion. In this role, Eversource will be solely a service provider to Sunrise Wind and