Company: CNLHP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001628280-25-037369
Chunk: 81

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 8
Chunk 81
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 both June 30, 2025 and December 31, 2024, the property, plant and equipment balance, net of accumulated depreciation, attributable to the Aquarion water distribution business has been reclassified to Assets Held for Sale on the Eversource balance sheets.  For further information, see Note 17, “Assets Held for Sale.”

4.    DERIVATIVE INSTRUMENTS

The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers.  The costs associated with supplying energy to customers are recoverable from customers in future rates.  These regulated companies manage the risks associated with the price volatility of energy and energy-related products through the use of derivative and non-derivative contracts.  Many of the derivative contracts meet the definition of, and are designated as, normal and qualify for accrual accounting under the applicable accounting guidance.  The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses on the statements of income as electricity or natural gas is delivered.Derivative contracts that are not designated as normal are recorded at fair value as derivative assets or liabilities on the balance sheets.  For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract settlement amounts are recovered from, or refunded to, customers in their respective energy supply rates.  The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative Liabilities, with current and long-term portions, on the balance sheets.  The following table presents the gross fair values of contracts, categorized by risk type, and the net amounts recorded as current or long-term derivative assets or liabilities: As of June 30, 2025As of December 31, 2024CL&P(Millions of Dollars)Fair Value HierarchyCommodity Supply and Price Risk ManagementNetting (1)Net AmountRecorded as a DerivativeCommodity Supply and Price Risk ManagementNetting (1)Net AmountRecorded as a DerivativeCurrent Derivative AssetsLevel 2$6.5 $(0.3)$6.2 $14.2 $(0.3)$13.9 Current Derivative LiabilitiesLevel 2(32.5)— (32.5)(71.1)— (71.1)    (1)    Amounts represent