Company: CNLHP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050033
Chunk: 169

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 169
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ource’s tax equity investment in the South Fork Wind project or the Revolution Wind project for which Eversource has remaining financial obligations.  The ultimate impact of the law will depend on future guidance from the U.S. Department of the Treasury, the Internal Revenue Service, and state regulatory bodies. 

Connecticut:  On July 1, 2025, Connecticut enacted Public Act No. 25-173, An Act Concerning Energy Affordability, Access, and Accountability, (Senate Bill No. 4) (the Act), which aims to reduce electric rates for Connecticut retail customers by up to $300 million over the next two years in the public benefits charges on electric bills for hardship protection measures and electric vehicle program costs through the issuance of state bonds that would fully fund these state-mandated program costs in lieu of collecting these amounts in electric rates.  The Act authorizes the State of Connecticut to issue up to $125 million in new general obligation bonds for each fiscal year 2026 and 2027 to reduce costs of hardship protection measures charged to retail customers, of which 67 percent of each issuance will be allocated to CL&P, and $30 million for fiscal year 2026 and $20 million for fiscal year 2027 in new general obligation bonds to fund the electric vehicle charging program, of which 80 percent of each issuance will be allocated to CL&P.  Rate reductions were implemented prospectively beginning September 1, 2025 in CL&P’s revenue adjustment mechanism.

The Act authorizes the securitization of storm-related expenses for the period January 1, 2018 through January 1, 2025, which covers the majority of deferred storm costs on the CL&P balance sheet, as well as advanced metering infrastructure (AMI) and legacy meter investments, allowing for the recovery of these costs from customers over a longer term to mitigate short-term rate impacts.  The Act also seeks to reduce electric rates for retail customers by revising the statutory framework for renewable portfolio standards.

The Act also directs PURA’s procurement manager, after consultation with the electric distribution companies, the Consumer Counsel and the Commissioner of DEEP, to file with PURA by February 15, 2026 a proposed amendment to the plan to procure standard electric service that would authorize electric distribution companies to, among other things, make dynamic market purchases to attempt to reduce the average cost and minimize the price volatility of standard electric service.

Implementation of the Act’s provisions will require further regulatory proceedings and administrative action.