Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 394

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 394
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 Information System.  Wholesale transactions also include the sale of CL&P’s, NSTAR Electric’s and PSNH’s transmission rights associated with their proportionate equity ownership share in the transmission lines of the Hydro-Québec system in Canada.  Other Revenues from Contracts with Customers:  Other revenues from contracts with customers primarily include property rentals that are not deemed leases.  These revenues are generally recognized on a straight-line basis over time as the service is provided to the customer.  Other revenues also include revenues from Eversource's service company, which is eliminated in consolidation.

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Amortization of/(Reserve for) Revenues Subject to Refund:  A reserve is recorded as a reduction to revenues when future refunds to customers are deemed probable.  The reserve is reversed as refunds are provided to customers in rates.  Amortization of Revenues Subject to Refund within the Electric Distribution segment in 2022 represents the reversal of a 2021 reserve at CL&P established to provide bill credits to customers as a result of the settlement agreement on October 1, 2021 and a storm performance penalty assessed by PURA.  The reserve of $93.4 million was reversed as customer credits were distributed to CL&P’s customers in retail electric rates in 2021 and 2022.  Alternative Revenue Programs:   In accordance with accounting guidance for rate-regulated operations, certain of Eversource's utilities' rate making mechanisms qualify as alternative revenue programs (ARPs) if they meet specified criteria, in which case revenues may be recognized prior to billing based on allowed levels of collection in rates.  Eversource's utility companies recognize revenue and record a regulatory asset or liability once the condition or event allowing for the automatic adjustment of future rates occurs.  ARP revenues include both the recognition of the deferral adjustment to ARP revenues, when the regulator-specified condition or event allowing for additional billing or refund has occurred, and an equal and offsetting reversal of the ARP deferral to revenues as those amounts are reflected in the price of service in subsequent periods.Eversource’s ARPs include the revenue decoupling mechanism, the annual reconciliation adjustment to transmission formula rates, and certain capital tracker mechanisms.  Certain Eversource electric, natural gas and water companies, including CL&P and NSTAR Electric, have revenue decoupling mechanisms approved by a regulatory commission (decoupled companies).  Decoupled companies’ distribution revenues are not directly based on sales volumes.  The decoupled companies reconcile their annual base distribution