Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 189

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 189
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billion after-tax) and establishing a new cost basis in the investments as of December 31, 2023.  The Eversource statement of income for the year ended 2023 reflects a total pre-tax other-than-temporary impairment charge of $2.17 billion ($1.95 billion after-tax) in its offshore wind investments.  The impairment charges were non-cash charges and did not impact Eversource’s cash position at the time of the impairment.  Eversource’s offshore wind investments did not meet the criteria to qualify for presentation as a discontinued operation. 

The 2023 impairment evaluations involved judgments in developing the estimates and timing of the future cash flows arising from the expected sales price of Eversource’s 50 percent interest in the wind projects, including expected sales value from investment tax credit adder amounts, less estimated costs to sell, and uncertainties related to the Sunrise Wind re-bid process in New York’s offshore wind solicitation in 2024.  Additional assumptions in the fourth quarter 2023 assessment included revised projected construction costs and estimated project cost overruns, management’s assumption that the Sunrise Wind project would ultimately be abandoned, estimated termination costs, salvage values of Sunrise Wind assets, and the value of the tax equity ownership interest. The assumptions used in the discounted cash flow analyses were subject to inherent uncertainties and subjectivity.  All significant inputs into the impairment evaluations were Level 3 fair value measurements. 

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A summary of the significant estimates and assumptions included in the 2023 impairment charges is as follows:

Second Quarter 2023Fourth Quarter 2023Total(Millions of Dollars)Lower expected sales proceeds across all three wind projects$401 $525 $926 Expected cost overruns not recovered in the sales price — 441 441 Loss of sales value from the sale price offered by GIP, including loss of ITC adders value, cancellation costs and other impacts assuming Sunrise Wind project is abandoned— 800 800 Impairment Charges, pre-tax401 1,766 2,167 Tax Benefit(70)(144)(214)Impairment Charges, after-tax$331 $1,622 1,953 

A summary of the carrying value by investee and by project as of December 31, 2023 is as follows:

Investments Expected to be Disposed ofInvestment to be HeldNorth East OffshoreSouth Fork Class B Member, LLCSouth Fork Wind Holdings, LLC Class ATotal