Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 2

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 2
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 distribution company.  For those customers who do not choose a competitive energy supplier, CL&P purchases power on behalf of, and passes the related cost without mark-up through to, those customers under standard service (SS) rates for customers with less than 500 kilowatts of demand (residential customers and small and medium commercial and industrial customers), and supplier of last resort service (LRS) rates for customers with 500 kilowatts or more of demand (larger commercial and industrial customers).  CL&P charges customers only the amount that it pays generators for producing electricity and does not earn a profit on the cost of electricity.

CL&P's retail rates include an energy supply component and a delivery service component, which includes distribution, transmission, conservation, renewable energy programs and other public benefit charges that are assessed on all customers.  The rates established by PURA for CL&P, which are grouped by the customer bill components, are comprised of the following:

Supply:  Cost of electricity from suppliers based on competitive procurements.

•An electric generation service charge, which recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to competitive energy suppliers.  The generation service charge is adjusted periodically and reconciled annually in accordance with the policies and procedures of PURA, with any differences refunded to, or recovered from, customers.

Local Delivery:  Cost to build, maintain, repair and operate the distribution grid, including the poles, lines, and meters that deliver power from the substation.  It also includes the cost of resiliency and reliability improvements.

•A distribution charge, which includes a fixed customer charge and a demand and/or energy charge to collect the costs of building and expanding the infrastructure to deliver electricity to customers, as well as ongoing operating costs to maintain the infrastructure.  

•A revenue decoupling adjustment that reconciles annual base distribution rate recovery amounts recovered from customers to the pre-established level of baseline distribution delivery service revenue requirement approved by PURA.   

•An Electric System Improvements (ESI) charge, which collects the costs of building and expanding the infrastructure to deliver electricity to customers above the level recovered through the distribution charge.  The ESI also recovers costs associated with CL&P’s system resiliency program.  The ESI is adjusted periodically and reconciled annually in accordance with the policies and procedures of PURA, with any differences refunded to, or recovered from, customers.  In 2023, the state of Connecticut enacted a law that