Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 225

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 225
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 NSTAR Electric and PSNH that recover the costs of the wholesale transmission business in rates charged to their customers.

Purchased Power, Purchased Natural Gas and Transmission expense includes costs associated with providing electric generation service

supply and natural gas to all customers who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as

required by regulation, and transmission costs.  These electric and natural gas supply procurement costs, other energy-related costs, and

transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on

earnings (tracked costs).  The variance in Purchased Power, Purchased Natural Gas and Transmission expense in 2024, as compared to 2023, is due primarily to the following:

(Millions of Dollars)Increase/(Decrease)Energy supply procurement costs$(1,243.2)Other electric distribution costs130.6 Natural gas supply costs(218.8)Transmission costs77.8 Eliminations(178.5)Total Purchased Power, Purchased Natural Gas and Transmission$(1,432.1)

The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues).  The variance in other electric distribution costs is due to higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, higher net metering costs and an increase in long-term renewable contract costs at NSTAR Electric, partially offset by a decrease in long-term renewable energy purchase contract costs at PSNH.

Costs at the natural gas distribution segment relate to supply procurement costs for retail customers.  Total natural gas costs decreased due primarily to a decrease in the retail cost deferral and lower average prices, partially offset by higher average purchased volumes.

The increase in transmission costs was primarily the result of an increase in costs billed by ISO-NE that support regional grid investments and an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network.  These increases were partially offset by a decrease in the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed to customers.

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Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs).  The variance in Operations and Maintenance expense in 2024, as compared to 2023, is due primarily to the following:

(Millions