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

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 25
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 costs of the wholesale transmission business in rates charged to their customers.

Purchased Power, Purchased Natural Gas and Transmission expense includes costs associated with providing electric generation service supply and natural gas to all customers who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as required by regulation, and transmission costs.  These electric and natural gas supply procurement costs, other energy-related costs, and transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  The variance in Purchased Power, Purchased Natural Gas and Transmission expense is due primarily to the following: 

(Millions of Dollars)Three Months EndedEnergy supply procurement costs$(87.9)Other electric distribution costs63.5 Natural gas supply costs106.4 Transmission costs28.1 Eliminations(5.8)Total Purchased Power, Purchased Natural Gas and Transmission$104.3 

The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues).  The variance in other electric distribution costs for the three month period is due to higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, an increase in the long-term renewable energy contract cost deferral and higher net metering costs at NSTAR Electric, partially offset by a decrease in long-term renewable energy purchase contract costs at both NSTAR Electric and PSNH.

Costs at the natural gas distribution segment relate to supply procurement costs for retail customers.  Total natural gas costs increased for the three month period due primarily to higher average prices and higher average purchased volumes, partially offset by a decrease in the retail cost deferral.

Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain 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