Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 231

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 231
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, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings.  Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties.

Customers have the choice to purchase electricity from their Eversource electric utility or from a competitive third party supplier.  For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third party supplier.  For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement.  CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues.  

The variance in tracked distribution revenues in 2024, as compared to 2023, is due primarily to the following:

(Millions of Dollars)CL&PNSTAR ElectricPSNHRetail Tariff Tracked Revenues:Energy supply procurement$(710.5)$(253.9)$(275.2)CL&P NBFMCC544.9 — — NSTAR Electric net metering— 133.1 — Stranded costs6.6 77.7 42.8 Retail transmission(9.8)60.2 48.5 CL&P System Benefit Charge88.4 — — Other distribution tracking mechanisms69.7 77.2 12.3 Wholesale Market Sales Revenue62.8 (0.7)(28.2)

Fluctuations in retail tariff tracked revenues are driven by adjustments to retail rates to recover costs and changes in sales volumes.

The decrease in energy supply procurement at CL&P, NSTAR Electric and PSNH was driven by lower average prices and lower average supply-related sales volumes.

The increase in CL&P’s NBFMCC revenues was driven by an increase in the retail Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) rate.  The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state mandated energy purchase contracts with the Millstone and Seab