Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 293

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 293
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 state jurisdiction and utility company.  Once a storm qualifies for recovery, all qualifying expenses incurred during storm restoration efforts are deferred and recovered from customers.  Costs for storms that do not meet the specific criteria are expensed as incurred.  In addition to storm restoration costs, CL&P and PSNH are each allowed to recover pre-staging storm costs.  Management believes all storm costs deferred were prudently incurred and meet the criteria for specific cost recovery in Connecticut, Massachusetts and New Hampshire, and that recovery from customers is probable through the applicable regulatory recovery processes.  Each electric utility company either recovers a carrying charge on its deferred storm cost regulatory asset balance or the regulatory asset balance is included in rate base.  Multiple tropical and severe storms over the past several years have caused extensive damage to Eversource’s electric distribution systems resulting in significant numbers and durations of customer outages, along with significant pre-staging costs.  Storms in 2024 that qualified for future recovery resulted in deferred storm restoration costs and pre-staging costs totaling $410 million at Eversource, including $134 million at CL&P, $85 million at NSTAR Electric, and $191 million at PSNH.  Management believes that all of these storm costs were prudently incurred and meet the criteria for specific cost recovery.  Of Eversource’s total deferred storm costs, $2.10 billion either have yet to be filed with the applicable regulatory commission, are pending regulatory approval, or are subject to prudency review (including $1.12 billion at CL&P, $551 million at NSTAR Electric and $440 million at PSNH) as of December 31, 2024.  These storm cost totals exclude storm funding amounts that are collected in rates, which are recorded as a reduction to the deferred storm cost regulatory asset balance.CL&P, NSTAR Electric and PSNH are seeking approval of their deferred storm restoration costs through the applicable regulatory recovery process.  As part of CL&P’s October 1, 2021 settlement agreement, CL&P agreed to freeze its current base distribution rates (including storm costs) until no earlier than January 1, 2024.  On March 28, 2024, PURA established a prudency review proceeding for the purpose of receiving and reviewing evidence of the costs reported by CL&P in response to catastrophic storms and pre-staging events totaling approximately $634 million that occurred between January 1, 2018 and December 31