Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 339

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 339
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 As of December 31, 2023, these balances were recorded within Prepaid Pension and PBOP and Accrued SERP and PBOP on the Eversource balance sheet.  For further information, see Note 24, “Assets Held for Sale.”The following actuarial assumptions were used in calculating the Pension, SERP and PBOP Plans' year end funded status:  Pension and SERPPBOP As of December 31,As of December 31, 2024202320242023Discount Rate5.6%—5.7%4.9%—5.0%5.7%5.0%—5.2%Compensation/Progression Rate3.5%—4.0%3.5%—4.0%N/AFor the Eversource Service PBOP Plan, the health care cost trend rate is not applicable.  For the Aquarion PBOP Plan, the health care cost trend rate for pre-65 retirees is 7.5 percent, with an ultimate rate of 5 percent in 2035, and for post-65 retirees, the health care trend rate and ultimate rate is 3.5 percent.

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Expense:  Eversource charges net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans to its subsidiaries based on the actual participant demographic data for each subsidiary's participants.  The actual investment return in the trust is allocated to each of the subsidiaries annually in proportion to the investment return expected to be earned during the year.  The Company utilizes the spot rate methodology to estimate the discount rate for the service and interest cost components of benefit plan expense, which provides a relatively precise measurement by matching projected cash flows to the corresponding spot rates on the yield curve.The components of net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets/(liabilities) for future recovery or refund, are shown below.  The service cost component of net periodic benefit plan expense/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income.  The remaining components of net periodic benefit plan expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income.  Pension, SERP and PBOP plan expense/(income) reflected in the statements of cash flows for CL&P, NSTAR Electric and