Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 21

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 2
Chunk 21
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 in a PBR framework. The proposal suggested the development of performance incentive mechanisms, reported metrics and scorecards.  On February 27, 2025, PURA issued revised straw proposals for both the first and second reopener dockets, resulting in some edits to the previous proposals based on participant feedback.  On April 4, 2025, PURA issued a straw proposal in the third reopener docket that focused on the establishment of integrated distribution system planning under a PBR framework.  

On July 14, 2025, PURA issued proposed final decisions in the first two reopener dockets.  The proposed final decision in the first reopener docket adopted a PBR framework inclusive of a multi-year rate plan with an attrition relief mechanism that uses a revenue-cap formula approach to adjust revenues based on a variety of factors including inflation, a productivity factor, a customer dividend percentage, an exogenous cost factor and a capital funding mechanism, as well as an earnings sharing mechanism and a revenue decoupling mechanism for implementation in CL&P’s next distribution rate case. The multi-year rate plan has a stay out period of four years, but certain situations, such as deteriorating financial condition, exceeding authorized return, falling interest rates, or excess storm costs, could trigger the initiation of a new rate amendment proceeding during the multi-year rate plan.  The proposed final decision in the second reopener docket established reporting parameters, including the commencement of scorecards and reported metrics and the development of company specific performance incentive mechanisms. By November 1, 2025, CL&P will submit an Interim Performance Mechanism Filing with PURA detailing the results of the reported metrics and scorecards in the PBR Performance Metrics Portfolio for calendar years 2020 through 2024.  Results of scorecards and reported metrics are proposed to be reported annually thereafter to PURA, beginning March 1, 2026. Company specific performance incentive mechanisms will be implemented in CL&P’s next rate case proceeding.

Final decisions on the three reopener dockets are expected in 2025.  We continue to monitor developments in this proceeding, and at this time, we cannot predict the ultimate outcome of this proceeding and the resulting impact to CL&P. 

CL&P Storm Filings:  On March 28, 2024, PURA established a prudency review proceeding for the purpose of receiving and reviewing evidence of the costs reported by CL&P in response to catastrophic storms and pre-staging events