Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 213

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 213
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 over time, to be recovered from or returned to customers. Additionally, the portion of our pension and PBOP expense that relates to company labor devoted to capital projects is capitalized on the balance sheet instead of being charged to expense. 

Forecasted Expense/Income and Expected Contributions:  We estimate that net periodic benefit income in 2025 for the Pension and SERP Plans will be approximately $93 million and for the PBOP Plans will be approximately $69 million.  The increase in pension income from 2024 to 2025 is driven primarily by lower amortization of actuarial losses, partially offset by an increase in the service cost component, both of which were due in part to the impact of the new cash balance pension plan.  The increase in PBOP income from 2024 to 2025 is driven primarily by favorable expected return on assets due to a higher asset balance.  For the PBOP Plans, there is no amortization of actuarial loss in 2025.  Pension, SERP and PBOP expense/income for subsequent years will depend on future investment performance, changes in future discount rates and other assumptions, and various other factors related to the populations participating in the plans. 

Our policy is to fund the Pension Plans annually in an amount at least equal to the amount that will satisfy all federal funding requirements.  Based on the current status of the Pension Plans and federal pension funding requirements, for our Eversource Service Pension Plan there is no minimum funding requirement in 2025 and we do not expect to make pension contributions in 2025.  It is our policy to fund the PBOP Plans annually through tax deductible contributions to external trusts.  We do not expect to make any contributions to the Eversource Service PBOP Plan in 2025.  

Sensitivity Analysis:  The following table illustrates the hypothetical effect on reported annual net periodic benefit income as a result of a change in the following assumptions by 50 basis points:  

Pension Plans (excluding SERP Plans) PBOP PlansDecrease in Plan IncomeDecrease/(Increase) in Plan Income(Millions of Dollars)For the Years Ended December 31,For the Years Ended December 31,Eversource2024202320242023Lower expected long-term rate of return$28.9 $29.1 $5.0 $0.2 Lower discount rate27.4 24.7 (0.5)4.7 Higher compensation rate5.9 8.