Exhibit 33.1



REPORT ON ASSESSMENT OF COMPLIANCE WITH
SERVICING CRITERIA FOR 
ASSET-BACKED ISSUERS



The undersigned hereby certifies that she is the
duly elected and acting Assistant Treasurer-Corporate Finance and Cash Management of Public Service Company of New Hampshire, as servicer
(the “Servicer”) under the Servicing Agreement, dated as of May 8, 2018, (the “Servicing Agreement”),
between the Servicer and PSNH Funding LLC 3 (the “Issuing Entity”), and further certifies on behalf of the Servicer
that:



1.            In
my capacity as Assistant Treasurer-Corporate Finance and Cash Management of the Servicer, I am responsible for assessing the Servicer’s
compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”);



2.            With
respect to each of the Servicing Criteria, the undersigned has made the following assessment of the Servicing Criteria in accordance with
Item 1122(d) of Regulation AB, with such discussion regarding the performance of such Servicing Criteria during the fiscal year ended
December 31, 2021 covered by the Issuing Entity’s annual report on Form 10-K:



|Regulation AB Reference            | Servicing Criteria                                                                                                                                                                                                                                                                                                                                                      | Applicable
                                                                                Servicing Criteria | Inapplicable
                                                                                Servicing Criteria
|---------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|General Servicing Considerations  
|1122(d)(1)(i)                      | Policies and procedures are instituted
to monitor any performance or other triggers and events of default in accordance with the transaction agreements.                                                                                                                                                                                                                | X                                                                                                             |                                                                                                                
|1122(d)(1)(ii)                     | If any material servicing activities are outsourced to
    third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such
    servicing activities.                                                                                                                                                            |                                                                                                               | X                                                                                                              
|1122(d)(1)(iii)                    | Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.                                                                                                                                                                                                                                                       |                                                                                                               | X                                                                                                              
|1122(d)(1)(iv)                     | A fidelity bond and errors and omissions policy is
in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by
and otherwise in accordance with the terms of the transaction agreements.                                                                                                       |                                                                                                               | X                                                                                                              
|1122(d)(1)(v)                      | Aggregation of information, as applicable, is mathematically
accurate and the information conveyed accurately reflects the information.                                                                                                                                                                                                                                 | X                                                                                                             |                                                                                                                
|Cash Collection and Administration
|1122(d)(2)(i)                      | Payments on pool assets are deposited
into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or
such other number of days specified in the transaction agreements.                                                                                                                           | X                                                                                                             |                                                                                                                
|1122(d)(2)(ii)                     | Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.                                                                                                                                                                                                                                                   | X                                                                                                             |                                                                                                                
|1122(d)(2)(iii)                    | Advances of funds or guarantees regarding collections,
    cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified
    in the transaction agreements.                                                                                                                                       |                                                                                                               | X                                                                                                              
|1122(d)(2)(iv)                     | The related accounts for the transaction, such as cash
    reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to
    commingling of cash) as set forth in the transaction agreements.                                                                                                           | X                                                                                                             |                                                                                                                
|1122(d)(2)(v)                      | Each custodial account is maintained at a federally
insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository
institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements
of Rule 13k-1(b)(1) under the Exchange Act. | X                                                                                                             |                                                                                                                
|1122(d)(2)(vi)                     | Unissued checks are safeguarded so as to prevent unauthorized access.                                                                                                                                                                                                                                                                                                   |                                                                                                               | X                                                                                                              













|1122(d)(2)(vii)                    | Reconciliations are prepared on
    a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing
    accounts. These reconciliations are: (A) mathematically accurate; (B) prepared within 30 calendar days after the bank
    statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by
    someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These
    reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in
    the transaction agreements. | X |  
|---------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | -
|Investor Remittances and Reporting
|1122(d)(3)(i)                      | Reports to investors, including those to be filed with
    the SEC, are maintained in accordance with the transaction agreements and applicable SEC requirements. Specifically, such reports:
    (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide
    information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the SEC as
    required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total
    unpaid principal balance and number of pool assets serviced by the servicer.                                                                       | X |  
|1122(d)(3)(ii)                     | Amounts due to investors are allocated and remitted
in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | X |  
|1122(d)(3)(iii)                    | Disbursements made to an investor are posted within
    two business days to the servicer’s investor records, or such other number of days specified in the transaction
    agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | X |  
|1122(d)(3)(iv)                     | Amounts remitted to investors per the investor reports
agree with cancelled checks, or other form of payment, or custodial bank statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | X |  
|                                   | Pool Asset Administration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |  
|1122(d)(4)(i)                      | Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | X |  
|1122(d)(4)(ii)                     | Pool assets and related documents are safeguarded as required by the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | X |  
|1122(d)(4)(iii)                    | Any additions, removals or substitutions to the asset
pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | X
|1122(d)(4)(iv)                     | Payments on pool assets, including any payoffs, made
in accordance with the related pool asset documents are posted to the servicer’s obligor records maintained no more than two business
days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other
items (e.g., escrow) in accordance with the related pool asset documents.                                                                                                                                                                                                                                                                                                                  | X |  
|1122(d)(4)(v)                      | The servicer’s records regarding the pool assets
agree with the servicer’s records with respect to an obligor’s unpaid principal balance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | X
|1122(d)(4)(vi)                     | Changes with respect to the terms or status of an
    obligor’s pool assets (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in
    accordance with the transaction agreements and related pool asset documents.                                                                                                                                                                                                                                                                                                                                                                                                                                                               | X |  
|1122(d)(4)(vii)                    | Loss mitigation or recovery actions (e.g., forbearance
    plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and
    concluded in accordance with the timeframes or other requirements established by the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                | X |  
|1122(d)(4)(viii)                   | Records documenting collection efforts are maintained during
    the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly
    basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent
    pool assets, including, for example, phone calls, letters and payment
    rescheduling plans in cases where delinquency is deemed
    temporary (e.g., illness or unemployment).                                                                                                                                                                                           | X |  













|1122(d)(4)(ix)   | Adjustments to interest rates or rates of return for
pool assets with variable rates are computed based on the related pool asset documents.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | X
|---------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | -
|1122(d)(4)(x)    | Regarding any funds held in trust for an obligor (such as
    escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual
    basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors
    in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar
    days of full repayment of the related pool assets, or such other number of days specified in
    the transaction agreements. |   | X
|1122(d)(4)(xi)   | Payments made on behalf of an obligor (such as tax
or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices
for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such
other number of days specified in the transaction agreements.                                                                                                                                                                                                           |   | X
|1122(d)(4)(xii)  | Any late payment penalties in connection with any payment
to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was
due to the obligor’s error or omission.                                                                                                                                                                                                                                                                                                                                                                       |   | X
|1122(d)(4)(xiii) | Disbursements made on behalf of an obligor are posted
    within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the
    transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                         |   | X
|1122(d)(4)(xiv)  | Delinquencies, charge-offs and uncollectible accounts
are recognized and recorded in accordance with the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | X |  
|1122(d)(4)(xv)   | Any external enhancement or other support, identified
    in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction
    agreements.                                                                                                                                                                                                                                                                                                                                                                                                                     |   | X



3.            To
the best of the undersigned’s knowledge, based on such review, the Servicer is in compliance in all material respects with the applicable
Servicing Criteria set forth above as of and for the year ended December 31, 2021 covered by the Issuing Entity’s annual report
on Form 10-K.



4.            Deloitte &
Touche LLP, an independent registered public accounting firm, has issued an attestation report on its assessment of the Servicer’s
compliance with the applicable Servicing Criteria as of and for the year ended December 31, 2021 covered by the Issuing Entity’s
annual report on Form 10-K.













Executed as of this 25th day of
March 2022.



| | PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
| | ---------------------------------------
| |                                        
| | By:                                    
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