Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 157

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 8
Chunk 157
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 tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs).  The variance in Operations and Maintenance expense is due primarily to the following:(Millions of Dollars)Three Months Ended Six Months EndedBase Electric Distribution (Non-Tracked Costs):Uncollectible Expense$3.8 $6.1 Storm costs4.6 (1.9)Shared corporate costs (including IT system depreciation at Eversource Service)1.6 4.9 General corporate costs (including vendor services in corporate areas, insurance, fees and assessments)(3.7)3.2 Operations-related expenses (including employee-related expenses, vendor services, vehicles and materials)0.1 (6.8)Vegetation Management(3.0)(2.2)Total Base Electric Distribution (Non-Tracked Costs)3.4 3.3 Tracked Electric Costs (Electric Distribution and Electric Transmission)3.1 8.2 Total Electric Distribution and Electric Transmission6.5 11.5 Natural Gas Distribution:Base (Non-Tracked Costs) - Increase due primarily to higher uncollectible expense and employee-related expenses12.6 20.3 Tracked Costs (4.1)5.1 Total Natural Gas Distribution8.5 25.4 Water Distribution(1.3)(4.0)Eversource Parent and Other Companies - other operations and maintenance1.0 1.6 Eliminations(11.5)(6.9)Total Operations and Maintenance$3.2 $27.6 

Depreciation expense increased for the three and six month periods due primarily to higher net plant in service balances.

Amortization expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms.  This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred.  These costs are recovered from customers in rates and have no impact on earnings.  Amortization expense also includes the amortization of certain costs as those costs are collected in rates. 

The variance in Amortization for the three and six month periods is due primarily to the deferral adjustments of energy-related and other tracked costs at CL&P (included in the non-bypassable component of the FMCC mechanism and the SBC mechanism), NSTAR Electric and PSNH, which can fluctuate from period to period based on the