Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 206

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 206
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 reached by PSNH, New Hampshire Department of Energy, and the Office of the Consumer Advocate to implement a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024.

Also on June 11, 2024, PSNH filed an application with the NHPUC to request an increase in permanent base distribution rates of $181.9 million, which is inclusive of the temporary rate increase, and proposed to take effect August 1, 2025.  The temporary rates are subject to reconciliation based on the outcome of the permanent rate case back to the date when temporary rates took effect.  The permanent rate increase request includes $247 million in unrecovered storm costs to be recovered over a five-year period.  As part of the rate case, PSNH proposed to implement a performance-based rate making plan that would adjust rates annually over a four-year term, with a commitment to not file another rate case for at least four years.  The plan includes a revenue-cap formula adjusted for inflation, a supplemental capital adjustment formula to support PSNH’s planned capital infrastructure improvements, an exogenous events recovery mechanism, performance metrics and an earnings sharing mechanism, among others.  If the NHPUC approves the performance-based rate making plan as proposed, the previously established RRA and PPAM rate reconciling mechanisms and lost base revenues will be eliminated.  The NHPUC is permitted up to twelve months to investigate the proposed rates and issue a final order.  A decision by the NHPUC on permanent rates is expected by August 1, 2025.

44

Legislative and Policy Matters

Federal:  On April 10, 2024, the U.S. Environmental Protection Agency announced the final regulation setting drinking water standards for six per- and polyfluoroalkyl substances (PFAS) compounds.  The regulation requires compliance under a phased approach in which systems will need to complete the initial monitoring requirements for each PFAS within three years, and when warranted, take steps to assure compliance within five years.  Beginning in 2027, systems will need to report results of initial monitoring and regular monitoring and issue public notifications for any monitoring and reporting violations.  Starting in 2029, systems must comply with all maximum contaminant levels (MCL) and provide public notification for MCL violations.  Eversource is currently evaluating the impacts to comply with the regulation for its water business. 

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make