Company: CNLHP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050033
Chunk: 167

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 167
---
 Throughout the course of the proceeding, PSNH amended the requested revenue requirement to account for developments in the case, and arrived at a final proposed rate increase of $103 million, which primarily reflects the removal of deferred storm costs that will be addressed in a separate proceeding.  On July 25, 2025, the NHPUC issued its decision on permanent rates and approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase referenced above.  The total base distribution revenue requirement effective August 1, 2025 is $519 million.  The order also established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH’s capital structure. 

54

This revenue requirement also contains an alternative regulation revenue requirement adjustment.  This adjustment was part of the NHPUC’s alternative regulatory framework that the NHPUC adopted as an alternative to PSNH’s proposed performance-based regulation plan.  The alternative regulatory framework authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028.  PSNH is required to file its next base distribution rate case for effect in June 2029 and committed not to file its next distribution rate case until 2029.  The alternative regulatory framework calculates the annual revenue adjustment using a productivity factor and an adjustment for inflation to provide PSNH with increased revenue for operations.  The framework also contains an exogenous events recovery mechanism for certain unforeseen events out of PSNH’s control and exceeding a specified threshold, a performance metric, and an earnings sharing mechanism where PSNH would have to return 75 percent of all revenue back to customers that exceeds 25 basis points more than the authorized ROE of 9.5 percent.  Consistent with PSNH’s proposal, lost base revenues for both net metering and energy efficiency were eliminated effective August 1, 2025. 

To the extent permanent rates exceed the level of temporary rates, the difference will reconcile back to the date that the temporary rates took effect and the company recovers the difference over a twelve-month term.  On August 11, 2025, PSNH filed its recoupment calculation, and on September 10, 2025, the NHPUC issued an order that the recoupment is $9.1 million and will be collected through the RRA regulatory tracking mechanism over a one-year period.  

As part of the decision, unre