Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 375

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 375
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 to not separate non-lease components from lease components and instead to account for both as a single lease component, with the exception of the information technology asset class where the lease and non-lease components are separated. The provisions of Eversource, CL&P, NSTAR Electric and PSNH lease agreements contain renewal options.  The renewal options range from one year to twenty years.  The renewal period is included in the measurement of the lease liability if it is reasonably certain that Eversource will exercise these renewal options. For leases entered into or modified after the January 1, 2019 implementation date of the leases standard under Topic 842, the discount rate utilized for classification and measurement purposes as of the inception date of the lease is based on each company's collateralized incremental interest rate to borrow over a comparable term for an individual lease because the rate implicit in the lease is not determinable. CL&P and PSNH entered into certain contracts for the purchase of energy that qualify as leases.  These contracts do not have minimum lease payments and therefore are not recognized as a lease liability on the balance sheet and are not reflected in the future minimum lease payments table below.  Expense related to these contracts is included as variable lease cost in the table below.  The expense and long-term obligation for these contracts are also included in Note 13B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the financial statements. In 2024, these contracts at PSNH were terminated.  

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The components of lease cost, prior to amounts capitalized, are as follows:EversourceFor the Years Ended December 31,(Millions of Dollars)202420232022Finance Lease Cost:Amortization of Right-of-use-Assets$6.4 $4.8 $8.3 Interest on Lease Liabilities2.7 2.0 2.0 Total Finance Lease Cost9.1 6.8 10.3 Operating Lease Cost15.2 11.4 11.6 Variable Lease Cost18.3 69.2 78.1 Total Lease Cost$42.6 $87.4 100.0  For the Years Ended December 31, 202420232022(Millions of Dollars)CL&PNSTARElectricPSNHCL&PNSTARElectricPSNHCL&PNSTARElectricPSNHFinance Lease Cost:Amortization of Right-of-use-Assets$1.7