Company: CNLHP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050033
Chunk: 168

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 168
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covered storm costs of $247 million were removed from the rate proceeding for consideration in a separate proceeding.  Approval of the ultimate amount of storm costs to be recovered is subject to a separate prudency review that was filed in March of 2024 and is being considered by the NHPUC in a separate dedicated docket, which is at this time complete and awaiting the issuance of an order.  Approved storm costs in excess of the amount approved in base rates will be recovered through the Regulatory Reconciliation Adjustment (RRA) regulatory tracking mechanism.  The NHPUC increased the level of storm costs recovered in base rates from $12 million to $19 million.

The impact of the rate case decision resulted in a pre-tax benefit to earnings of $15.6 million at PSNH due primarily to the recoupment and the allowed recovery of other deferrals that will be recovered in the RRA.  The majority of this amount was recorded as a reduction to amortization expense on PSNH’s statement of income in the third quarter of 2025. 

Legislative, Policy and Legal Matters

Federal:  On July 4, 2025, An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14 (known as the One Big Beautiful Bill Act or OBBBA), a budget and reconciliation package, was signed into law.  Among various items, the law includes changes to federal tax policy and modifications to clean energy tax incentives originally enacted under the Inflation Reduction Act of 2022.  One of the key provisions notable for Eversource is the restoration of bonus depreciation for its affiliates other than rate-regulated utility companies.  The deduction is for qualifying depreciable tangible property acquired and placed in service after January 19, 2025.  The OBBBA maintains a federal corporate income tax rate of 21 percent.

The OBBBA also includes provisions that remove federal tax credits for renewable energy.  The OBBBA phases out the clean electricity production credit and the clean electricity investment tax credit for wind and solar projects that begin construction after July 4, 2026 and are not placed in service before December 31, 2027.  Projects that begin construction prior to July 4, 2026 will remain eligible for investment tax credit benefits under the Inflation Reduction Act of 2022.

The Company has evaluated the impacts of the OBBBA on our consolidated financial statements.  The law will not have an impact on Evers