Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 237

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 237
---
 capitalized AFUDC related to equity funds ($1.6 million) and a decrease in investment losses driven by market volatility ($0.2 million), partially offset by a decrease related to pension, SERP and PBOP non-service income components ($1.3 million).

Income Tax Expense - the variance is due primarily to the following:

•The increase at CL&P was due primarily to higher pre-tax earnings ($3.7 million), a decrease in amortization of EDIT ($1.3 million), an increase in valuation allowances ($8.8 million), higher share-based payment tax deficiency ($0.6 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($10.6 million), partially offset by lower state taxes ($0.2 million), and lower return to provision adjustments ($1.2 million).

•The increase at NSTAR Electric was due primarily to higher pre-tax earnings ($27.3 million), higher state taxes ($7.4 million), higher share-based payment tax deficiency ($0.6 million), and a decrease in amortization of EDIT ($8.4 million), partially offset by lower return to provision adjustments ($1.4 million) and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($4.7 million).

•The increase at PSNH was due primarily to higher pre-tax earnings ($6.4 million), a decrease in amortization of EDIT ($0.3 million), higher state taxes ($1.5 million), and higher return to provision adjustments ($3.0 million).

57

EARNINGS SUMMARY

CL&P's earnings decreased $6.1 million in 2024, as compared to 2023, due primarily to higher interest expense, a higher effective tax rate, higher depreciation expense, higher operations and maintenance expense, and higher property tax expense.  The earnings decrease was partially offset by higher revenues from its capital tracking mechanism due to increased electric system improvements, an increase in transmission earnings driven primarily by a higher transmission rate base, and an increase in interest income primarily on regulatory deferrals. 

NSTAR Electric's earnings increased $91.9 million in 2024, as compared to 2023, due primarily to higher revenues as a result of the base distribution rate increase effective January 1, 2024, an increase in transmission earnings driven primarily by a higher transmission rate base, an increase in interest income primarily on regulatory deferrals, higher revenues from