Eversource Energy

11/06/2025 | Press release | Distributed by Public on 11/06/2025 12:48

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2025
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________
Registrant; State of Incorporation; Address; Telephone Number;
Commission File Number; and I.R.S. Employer Identification No.
EVERSOURCE ENERGY
(a Massachusetts voluntary association)
300 Cadwell Drive, Springfield, Massachusetts 01104
Telephone: (800) 286-5000
Commission File Number: 001-05324
I.R.S. Employer Identification No. 04-2147929
THE CONNECTICUT LIGHT AND POWER COMPANY
(a Connecticut corporation)
107 Selden Street, Berlin, Connecticut 06037-1616
Telephone: (800) 286-5000
Commission File Number: 000-00404
I.R.S. Employer Identification No. 06-0303850
NSTAR ELECTRIC COMPANY
(a Massachusetts corporation)
800 Boylston Street, Boston, Massachusetts 02199
Telephone: (800) 286-5000
Commission File Number: 001-02301
I.R.S. Employer Identification No. 04-1278810
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(a New Hampshire corporation)
Energy Park
780 North Commercial Street, Manchester, New Hampshire 03101-1134
Telephone: (800) 286-5000
Commission File Number: 001-06392
I.R.S. Employer Identification No. 02-0181050
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares, $5.00 par value per share ES New York Stock Exchange
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
Yes No
☒ ☐
Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files).
Yes No
☒ ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Eversource Energy Large accelerated filer ☒ Accelerated
filer 		☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
The Connecticut Light and Power Company Large accelerated filer ☐ Accelerated
filer 		☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐
NSTAR Electric Company Large accelerated filer ☐ Accelerated
filer 		☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐
Public Service Company of New Hampshire Large accelerated filer ☐ Accelerated
filer 		☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):
Yes No
Eversource Energy ☐ ☒
The Connecticut Light and Power Company ☐ ☒
NSTAR Electric Company ☐ ☒
Public Service Company of New Hampshire ☐ ☒
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Company - Class of Stock Outstanding as of October 31, 2025
Eversource Energy Common Shares, $5.00 par value 375,189,145 shares
The Connecticut Light and Power Company Common Stock, $10.00 par value 6,035,205 shares
NSTAR Electric Company Common Stock, $1.00 par value 200 shares
Public Service Company of New Hampshire Common Stock, $1.00 par value 301 shares
Eversource Energy holds all of the 6,035,205 shares, 200 shares, and 301 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire, respectively.
The Connecticut Light and Power Company, NSTAR Electric Company and Public Service Company of New Hampshire each meet the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.
Eversource Energy, The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire each separately file this combined Form 10-Q. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants.
GLOSSARY OF TERMS
The following is a glossary of abbreviations and acronyms that are found in this report:
Current or former Eversource Energy companies, segments or investments:
Eversource, ES or the Company Eversource Energy and subsidiaries
Eversource parent or ES parent Eversource Energy, a public utility holding company
ES parent and other companies ES parent and other companies are comprised of Eversource parent, Eversource Service, and other subsidiaries, which primarily includes our unregulated businesses, The Rocky River Realty Company (a real estate subsidiary), the consolidated operations of CYAPC and YAEC, and Eversource parent's equity ownership interests that are not consolidated
CL&P The Connecticut Light and Power Company
NSTAR Electric NSTAR Electric Company
PSNH Public Service Company of New Hampshire
PSNH Funding PSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH
NSTAR Gas NSTAR Gas Company
EGMA Eversource Gas Company of Massachusetts
Yankee Gas Yankee Gas Services Company
Aquarion Aquarion Company and its subsidiaries
HEEC Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric
Eversource Service Eversource Energy Service Company
CYAPC Connecticut Yankee Atomic Power Company
MYAPC Maine Yankee Atomic Power Company
YAEC Yankee Atomic Electric Company
Yankee Companies CYAPC, YAEC and MYAPC
Regulated companies The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas, NSTAR Gas and EGMA, Aquarion's water distribution businesses, and the solar power facilities of NSTAR Electric
Regulators and Government Agencies:
DEEP Connecticut Department of Energy and Environmental Protection
DOE U.S. Department of Energy
DOER Massachusetts Department of Energy Resources
DPU Massachusetts Department of Public Utilities
EPA U.S. Environmental Protection Agency
FERC Federal Energy Regulatory Commission
ISO-NE ISO New England, Inc., the New England Independent System Operator
MA DEP Massachusetts Department of Environmental Protection
NHPUC New Hampshire Public Utilities Commission
PURA Connecticut Public Utilities Regulatory Authority
SEC U.S. Securities and Exchange Commission
Other Terms and Abbreviations:
ADIT Accumulated Deferred Income Taxes
AFUDC Allowance For Funds Used During Construction
AOCI Accumulated Other Comprehensive Income
ARO Asset Retirement Obligation
Bcf Billion cubic feet
CfD Contract for Differences
CWIP Construction Work in Progress
EDC Electric distribution company
EDIT Excess Deferred Income Taxes
EPS Earnings Per Share
ERISA Employee Retirement Income Security Act of 1974
ESOP Employee Stock Ownership Plan
Eversource 2024 Form 10-K The Eversource Energy and Subsidiaries 2024 combined Annual Report on Form 10-K as filed with the SEC
Fitch Fitch Ratings, Inc.
FMCC Federally Mandated Congestion Charge
GAAP Accounting principles generally accepted in the United States of America
GSEP Gas System Enhancement Program
i
GWh Gigawatt-Hours
IPP Independent Power Producers
ISO-NE Tariff ISO-NE FERC Transmission, Markets and Services Tariff
kV Kilovolt
kVa Kilovolt-ampere
kW Kilowatt (equal to one thousand watts)
kWh Kilowatt-Hours
LNG Liquefied natural gas
LPG Liquefied petroleum gas
LRS Supplier of last resort service
MG Million gallons
MGP Manufactured Gas Plant
MMBtu Million British thermal units
MMcf Million cubic feet
Moody's Moody's Investors Service, Inc.
MW Megawatt
MWh Megawatt-Hours
NETOs New England Transmission Owners (including Eversource, National Grid and Avangrid)
OCI Other Comprehensive Income/(Loss)
PAM Pension and PBOP Rate Adjustment Mechanism
PBOP Postretirement Benefits Other Than Pension
PBOP Plan Postretirement Benefits Other Than Pension Plan
Pension Plan Single uniform noncontributory defined benefit retirement plan
PPA Power purchase agreement
PPAM
Pole Plant Adjustment Mechanism
RECs Renewable Energy Certificates
Regulatory ROE The average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment
ROE Return on Equity
RRBs Rate Reduction Bonds or Rate Reduction Certificates
RSUs Restricted share units
S&P Standard & Poor's Financial Services LLC
SERP Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SS Standard service
UI The United Illuminating Company
VIE Variable Interest Entity
ii
EVERSOURCE ENERGY AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
TABLE OF CONTENTS
Page
PART I- FINANCIAL INFORMATION
ITEM 1.
Financial Statements (Unaudited)
Eversource Energy and Subsidiaries (Unaudited)
Condensed Consolidated Balance Sheets
1
Condensed Consolidated Statements of Income/(Loss)
2
Condensed Consolidated Statements of Comprehensive Income/(Loss)
2
Condensed Consolidated Statements of Common Shareholders' Equity
3
Condensed Consolidated Statements of Cash Flows
5
The Connecticut Light and Power Company (Unaudited)
Condensed Balance Sheets
6
Condensed Statements of Income
7
Condensed Statements of Comprehensive Income
7
Condensed Statements of Common Stockholder's Equity
8
Condensed Statements of Cash Flows
9
NSTAR Electric Company and Subsidiary (Unaudited)
Condensed Consolidated Balance Sheets
10
Condensed Consolidated Statements of Income
11
Condensed Consolidated Statements of Comprehensive Income
11
Condensed Consolidated Statements of Common Stockholder's Equity
12
Condensed Consolidated Statements of Cash Flows
13
Public Service Company of New Hampshire and Subsidiaries (Unaudited)
Condensed Consolidated Balance Sheets
14
Condensed Consolidated Statements of Income
15
Condensed Consolidated Statements of Common Stockholder's Equity
16
Condensed Consolidated Statements of Cash Flows
17
Combined Notes to Condensed Financial Statements (Unaudited)
18
ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Eversource Energy and Subsidiaries
43
The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and
Public Service Company of New Hampshire and Subsidiaries
62
ITEM 3.
Quantitative and Qualitative Disclosures About Market Risk
66
ITEM 4.
Controls and Procedures
67
PART II - OTHER INFORMATION
ITEM 1.
Legal Proceedings
67
ITEM 1A.
Risk Factors
67
ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds
68
ITEM 3. Defaults Upon Senior Securities
68
ITEM 4. Mine Safety Disclosures
68
ITEM 5. Other Information
68
ITEM 6.
Exhibits
69
SIGNATURES
70
iii
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars) As of September 30, 2025 As of December 31, 2024
ASSETS
Current Assets:
Cash and Cash Equivalents $ 259,340 $ 26,656
Receivables, Net (net of allowance for uncollectible accounts of $550,917
and $556,164 as of September 30, 2025 and December 31, 2024, respectively)
1,656,090 1,651,325
Unbilled Revenues 162,932 242,169
Materials, Supplies, Natural Gas and REC Inventory 528,111 594,568
Regulatory Assets 1,831,224 2,189,660
Current Assets Held for Sale 68,472 56,327
Prepayments and Other Current Assets 352,589 315,368
Total Current Assets 4,858,758 5,076,073
Property, Plant and Equipment, Net 43,044,113 40,986,578
Deferred Debits and Other Assets:
Regulatory Assets 4,838,923 4,880,974
Goodwill 3,571,333 3,571,333
Prepaid Pension and PBOP 1,434,847 1,336,633
Marketable Securities 321,043 320,272
Long-Term Assets Held for Sale 2,691,412 2,611,145
Other Long-Term Assets 942,146 811,521
Total Deferred Debits and Other Assets 13,799,704 13,531,878
Total Assets $ 61,702,575 $ 59,594,529
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable $ 1,517,500 $ 2,042,793
Long-Term Debt - Current Portion 1,140,007 1,003,150
Rate Reduction Bonds - Current Portion 43,210 43,210
Accounts Payable 1,483,634 1,736,880
Accrued Interest 308,690 341,558
Regulatory Liabilities 1,064,050 632,282
Current Liabilities Held for Sale 57,403 52,593
Offshore Wind Contingent Liability - Current Portion 507,658 15,000
Other Current Liabilities 676,136 853,491
Total Current Liabilities 6,798,288 6,720,957
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 5,546,906 5,411,206
Regulatory Liabilities 4,114,348 4,032,564
Asset Retirement Obligations 598,209 590,890
Long-Term Liabilities Held for Sale 405,611 398,859
Offshore Wind Contingent Liability - Long-Term Portion - 350,000
Accrued SERP and PBOP 95,120 95,400
Other Long-Term Liabilities 824,988 773,999
Total Deferred Credits and Other Liabilities 11,585,182 11,652,918
Long-Term Debt 26,854,425 25,701,627
Rate Reduction Bonds 280,862 324,072
Noncontrolling Interest - Preferred Stock of Subsidiaries 155,568 155,568
Common Shareholders' Equity:
Common Shares 1,914,273 1,878,622
Capital Surplus, Paid In 9,916,324 9,428,905
Retained Earnings 4,366,085 3,929,141
Accumulated Other Comprehensive Loss (23,075) (26,472)
Treasury Stock (145,357) (170,809)
Common Shareholders' Equity 16,028,250 15,039,387
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 61,702,575 $ 59,594,529
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information) 2025 2024 2025 2024
Operating Revenues $ 3,220,625 $ 3,063,224 $ 10,177,048 $ 8,929,321
Operating Expenses:
Purchased Power, Purchased Natural Gas and
Transmission 		1,049,254 917,858 3,208,337 2,995,245
Operations and Maintenance 518,341 510,439 1,473,349 1,437,826
Depreciation 395,388 366,145 1,160,563 1,060,650
Amortization 108,246 243,957 672,798 127,495
Energy Efficiency Programs 173,104 148,054 565,945 506,821
Taxes Other Than Income Taxes 287,610 264,371 817,931 740,414
Total Operating Expenses 2,531,943 2,450,824 7,898,923 6,868,451
Operating Income 688,682 612,400 2,278,125 2,060,870
Interest Expense 318,065 300,576 912,107 822,640
Losses on Offshore Wind 284,000 464,019 284,000 464,019
Other Income, Net 85,830 112,555 273,536 318,870
Income/(Loss) Before Income Tax (Benefit)/Expense 172,447 (39,640) 1,355,554 1,093,081
Income Tax (Benefit)/Expense (196,982) 76,537 78,849 348,309
Net Income/(Loss) 369,429 (116,177) 1,276,705 744,772
Net Income Attributable to Noncontrolling Interests 1,880 1,880 5,639 5,639
Net Income/(Loss) Attributable to
Common Shareholders 		$ 367,549 $ (118,057) $ 1,271,066 $ 739,133
Basic Earnings/(Loss) Per Common Share $ 0.99 $ (0.33) $ 3.44 $ 2.09
Diluted Earnings/(Loss) Per Common Share $ 0.99 $ (0.33) $ 3.44 $ 2.08
Weighted Average Common Shares Outstanding:
Basic 371,914,953 359,520,518 369,299,065 354,483,338
Diluted 372,262,732 359,817,657 369,619,180 354,744,846
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024 2025 2024
Net Income/(Loss) $ 369,429 $ (116,177) $ 1,276,705 $ 744,772
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments 5 5 15 15
Changes in Funded Status of Pension, SERP and
PBOP Benefit Plans 		832 1,371 3,382 5,517
Other Comprehensive Income, Net of Tax 837 1,376 3,397 5,532
Comprehensive Income Attributable to
Noncontrolling Interests 		(1,880) (1,880) (5,639) (5,639)
Comprehensive Income/(Loss) Attributable to
Common Shareholders 		$ 368,386 $ (116,681) $ 1,274,463 $ 744,665
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(Unaudited)
For the Nine Months Ended September 30, 2025
Common Shares Capital
Surplus,
Paid In 		Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information) Shares Amount
Balance as of January 1, 2025 366,608,052 $ 1,878,622 $ 9,428,905 $ 3,929,141 $ (26,472) $ (170,809) $ 15,039,387
Net Income 552,668 552,668
Dividends on Common Shares - $0.7525 Per Share
(276,229) (276,229)
Dividends on Preferred Stock (1,880) (1,880)
Long-Term Incentive Plan Activity (28,230) (28,230)
Issuance of Treasury Shares 699,031 39,921 13,097 53,018
Other Comprehensive Income 2,523 2,523
Balance as of March 31, 2025 367,307,083 1,878,622 9,440,596 4,203,700 (23,949) (157,712) 15,341,257
Net Income 354,608 354,608
Dividends on Common Shares - $0.7525 Per Share
(276,513) (276,513)
Dividends on Preferred Stock (1,880) (1,880)
Issuance of Common Shares - $5 par value
3,378,765 16,894 203,895 220,789
Capital Stock Expense (2,768) (2,768)
Long-Term Incentive Plan Activity 8,344 8,344
Issuance of Treasury Shares 352,763 15,307 6,610 21,917
Other Comprehensive Income 37 37
Balance as of June 30, 2025 371,038,611 1,895,516 9,665,374 4,279,915 (23,912) (151,102) 15,665,791
Net Income 369,429 369,429
Dividends on Common Shares - $0.7525 Per Share
(281,379) (281,379)
Dividends on Preferred Stock (1,880) (1,880)
Issuance of Common Shares - $5 par value
3,751,369 18,757 231,403 250,160
Capital Stock Expense (2,783) (2,783)
Long-Term Incentive Plan Activity 7,642 7,642
Issuance of Treasury Shares 306,604 14,688 5,745 20,433
Other Comprehensive Income 837 837
Balance as of September 30, 2025 375,096,584 $ 1,914,273 $ 9,916,324 $ 4,366,085 $ (23,075) $ (145,357) $ 16,028,250
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(Unaudited)
For the Nine Months Ended September 30, 2024
Common Shares Capital
Surplus,
Paid In 		Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information) Shares Amount
Balance as of January 1, 2024 349,540,266 $ 1,799,920 $ 8,460,876 $ 4,142,515 $ (33,737) $ (195,682) $ 14,173,892
Net Income 523,728 523,728
Dividends on Common Shares - $0.715 Per Share
(250,770) (250,770)
Dividends on Preferred Stock (1,880) (1,880)
Issuance of Common Shares - $5 Per Share
1,292,892 6,465 69,972 76,437
Capital Stock Expense (1,042) (1,042)
Long-Term Incentive Plan Activity (22,405) (22,405)
Issuance of Treasury Shares 546,256 30,190 10,235 40,425
Other Comprehensive Income 5,203 5,203
Balance as of March 31, 2024 351,379,414 1,806,385 8,537,591 4,413,593 (28,534) (185,447) 14,543,588
Net Income 337,221 337,221
Dividends on Common Shares - $0.715 Per Share
(252,104) (252,104)
Dividends on Preferred Stock (1,880) (1,880)
Issuance of Common Shares - $5 par value
2,913,757 14,569 160,088 174,657
Capital Stock Expense (1,863) (1,863)
Long-Term Incentive Plan Activity 4,245 4,245
Issuance of Treasury Shares 272,900 10,783 5,113 15,896
Other Comprehensive Loss (1,047) (1,047)
Balance as of June 30, 2024 354,566,071 1,820,954 8,710,844 4,496,830 (29,581) (180,334) 14,818,713
Net Loss (116,177) (116,177)
Dividends on Common Shares - $0.715 Per Share
(260,119) (260,119)
Dividends on Preferred Stock (1,880) (1,880)
Issuance of Common Shares - $5 par value
9,086,269 45,431 542,687 588,118
Capital Stock Expense (6,129) (6,129)
Long-Term Incentive Plan Activity 4,456 4,456
Issuance of Treasury Shares 239,633 11,576 4,490 16,066
Other Comprehensive Income 1,376 1,376
Balance as of September 30, 2024 363,891,973 $ 1,866,385 $ 9,263,434 $ 4,118,654 $ (28,205) $ (175,844) $ 15,044,424
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024
Operating Activities:
Net Income $ 1,276,705 $ 744,772
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 1,160,563 1,060,650
Deferred Income Taxes 15,618 343,004
Uncollectible Expense 59,614 55,438
Pension, SERP and PBOP Income, Net (60,000) (54,663)
Pension Contributions (2,500) (5,000)
Regulatory Over/(Under) Recoveries, Net 214,614 (476,419)
Amortization 672,798 127,495
Cost of Removal Expenditures (201,665) (202,167)
Losses on Offshore Wind 284,000 464,019
Other 90,609 (77,264)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net 25,536 (177,806)
Taxes Receivable/Accrued, Net 92,980 89,730
Accounts Payable (203,268) (231,898)
Other Current Assets and Liabilities, Net (228,089) (142,285)
Net Cash Flows Provided by Operating Activities 3,197,515 1,517,606
Investing Activities:
Investments in Property, Plant and Equipment (3,175,358) (3,291,850)
Proceeds from Sales of Marketable Securities 256,250 146,369
Purchases of Marketable Securities (242,530) (133,544)
Payments for Offshore Wind Contingent Liability (141,342) -
Investments in Unconsolidated Affiliates (588) (929,651)
Proceeds from Sales of Offshore Wind Investments - 862,713
Other Investing Activities 10,785 22,506
Net Cash Flows Used in Investing Activities (3,292,783) (3,323,457)
Financing Activities:
Issuance of Common Shares, Net of Issuance Costs 465,398 830,178
Cash Dividends on Common Shares (816,429) (745,221)
Cash Dividends on Preferred Stock (5,639) (5,639)
Decrease in Notes Payable (525,293) (1,278,252)
Repayment of Rate Reduction Bonds (43,210) (43,210)
Issuance of Long-Term Debt 2,040,282 4,400,000
Retirement of Long-Term Debt (750,225) (1,260,148)
Other Financing Activities (30,196) (55,474)
Net Cash Flows Provided by Financing Activities 334,688 1,842,234
Net Increase in Cash, Cash Equivalents and Restricted Cash 239,420 36,383
Cash and Restricted Cash - Beginning of Period 127,308 166,418
Cash, Cash Equivalents and Restricted Cash - End of Period $ 366,728 $ 202,801
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars) As of September 30, 2025 As of December 31, 2024
ASSETS
Current Assets:
Cash and Cash Equivalents $ 152,384 $ 1,093
Receivables, Net (net of allowance for uncollectible accounts of $257,692 and
$279,108 as of September 30, 2025 and December 31, 2024, respectively)
646,063 663,171
Accounts Receivable from Affiliated Companies 71,455 68,723
Unbilled Revenues 52,179 59,759
Materials and Supplies 194,900 217,316
Regulatory Assets 268,821 638,529
Prepaid Property Taxes 96,577 25,733
Prepayments and Other Current Assets 17,337 25,955
Total Current Assets 1,499,716 1,700,279
Property, Plant and Equipment, Net 13,423,071 13,002,193
Deferred Debits and Other Assets:
Regulatory Assets 1,678,692 1,687,029
Prepaid Pension and PBOP 201,020 182,483
Other Long-Term Assets 264,552 267,861
Total Deferred Debits and Other Assets 2,144,264 2,137,373
Total Assets $ 17,067,051 $ 16,839,845
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent $ - $ 280,000
Long-Term Debt - Current Portion 400,000 2,944
Accounts Payable 456,280 548,100
Accounts Payable to Affiliated Companies 65,198 137,150
Regulatory Liabilities 391,283 124,122
Accrued Taxes 120,047 41,654
Derivative Liabilities 13,071 71,090
Other Current Liabilities 178,185 193,040
Total Current Liabilities 1,624,064 1,398,100
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 1,989,664 2,052,806
Regulatory Liabilities 1,440,547 1,395,883
Other Long-Term Liabilities 228,044 204,801
Total Deferred Credits and Other Liabilities 3,658,255 3,653,490
Long-Term Debt 5,109,328 5,108,173
Preferred Stock Not Subject to Mandatory Redemption 116,200 116,200
Common Stockholder's Equity:
Common Stock 60,352 60,352
Capital Surplus, Paid In 3,684,265 3,684,265
Retained Earnings 2,814,448 2,819,107
Accumulated Other Comprehensive Income 139 158
Common Stockholder's Equity 6,559,204 6,563,882
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 17,067,051 $ 16,839,845
The accompanying notes are an integral part of these unaudited condensed financial statements.
6
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024 2025 2024
Operating Revenues $ 1,362,524 $ 1,345,253 $ 4,035,882 $ 3,431,167
Operating Expenses:
Purchased Power and Transmission 535,163 469,715 1,409,647 1,516,138
Operations and Maintenance 220,100 208,906 611,010 593,115
Depreciation 108,419 103,112 322,815 301,968
Amortization of Regulatory Assets/(Liabilities), Net 111,207 173,161 529,240 (73,583)
Energy Efficiency Programs 38,241 47,439 129,895 114,579
Taxes Other Than Income Taxes 122,510 115,807 343,536 316,000
Total Operating Expenses 1,135,640 1,118,140 3,346,143 2,768,217
Operating Income 226,884 227,113 689,739 662,950
Interest Expense 53,888 63,334 151,505 180,051
Other Income, Net 9,991 21,944 40,087 61,389
Income Before Income Tax Expense 182,987 185,723 578,321 544,288
Income Tax Expense 48,353 53,833 148,810 142,444
Net Income $ 134,634 $ 131,890 $ 429,511 $ 401,844
The accompanying notes are an integral part of these unaudited condensed financial statements.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024 2025 2024
Net Income $ 134,634 $ 131,890 $ 429,511 $ 401,844
Other Comprehensive Loss, Net of Tax:
Qualified Cash Flow Hedging Instruments (6) (7) (19) (20)
Other Comprehensive Loss, Net of Tax (6) (7) (19) (20)
Comprehensive Income $ 134,628 $ 131,883 $ 429,492 $ 401,824
The accompanying notes are an integral part of these unaudited condensed financial statements.
7
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Nine Months Ended September 30, 2025
Common Stock Capital
Surplus,
Paid In 		Retained
Earnings 		Accumulated
Other
Comprehensive
Income 		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2025 6,035,205 $ 60,352 $ 3,684,265 $ 2,819,107 $ 158 $ 6,563,882
Net Income 156,236 156,236
Dividends on Preferred Stock (1,390) (1,390)
Dividends on Common Stock (247,000) (247,000)
Other Comprehensive Loss (6) (6)
Balance as of March 31, 2025 6,035,205 60,352 3,684,265 2,726,953 152 6,471,722
Net Income 138,641 138,641
Dividends on Preferred Stock (1,390) (1,390)
Dividends on Common Stock (83,000) (83,000)
Other Comprehensive Loss (7) (7)
Balance as of June 30, 2025 6,035,205 60,352 3,684,265 2,781,204 145 6,525,966
Net Income 134,634 134,634
Dividends on Preferred Stock (1,390) (1,390)
Dividends on Common Stock (100,000) (100,000)
Other Comprehensive Loss (6) (6)
Balance as of September 30, 2025 6,035,205 $ 60,352 $ 3,684,265 $ 2,814,448 $ 139 $ 6,559,204
For the Nine Months Ended September 30, 2024
Common Stock Capital
Surplus,
Paid In 		Retained
Earnings 		Accumulated
Other
Comprehensive
Income 		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2024 6,035,205 $ 60,352 $ 3,384,265 $ 2,645,868 $ 185 $ 6,090,670
Net Income 138,353 138,353
Dividends on Preferred Stock (1,390) (1,390)
Dividends on Common Stock (82,500) (82,500)
Capital Contributions from Eversource Parent 100,000 100,000
Other Comprehensive Loss (7) (7)
Balance as of March 31, 2024 6,035,205 60,352 3,484,265 2,700,331 178 6,245,126
Net Income 131,601 131,601
Dividends on Preferred Stock (1,390) (1,390)
Capital Contributions from Eversource Parent 100,000 100,000
Other Comprehensive Loss (6) (6)
Balance as of June 30, 2024 6,035,205 60,352 3,584,265 2,830,542 172 6,475,331
Net Income 131,890 131,890
Dividends on Preferred Stock (1,390) (1,390)
Dividends on Common Stock (165,100) (165,100)
Capital Contributions from Eversource Parent 100,000 100,000
Other Comprehensive Loss (7) (7)
Balance as of September 30, 2024 6,035,205 $ 60,352 $ 3,684,265 $ 2,795,942 $ 165 $ 6,540,724
The accompanying notes are an integral part of these unaudited condensed financial statements.
8
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024
Operating Activities:
Net Income $ 429,511 $ 401,844
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 322,815 301,968
Deferred Income Taxes (84,604) 149,682
Uncollectible Expense 16,105 11,432
Pension, SERP, and PBOP Income, Net (10,551) (9,199)
Regulatory Over/(Under) Recoveries, Net 78,426 (80,598)
Amortization of Regulatory Assets/(Liabilities), Net 529,240 (73,583)
Cost of Removal Expenditures (44,989) (46,118)
Other 33,904 (41,726)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net 626 (134,987)
Taxes Receivable/Accrued, Net 77,239 167,119
Accounts Payable (150,690) (148,366)
Other Current Assets and Liabilities, Net (69,230) (107,303)
Net Cash Flows Provided by Operating Activities 1,127,802 390,165
Investing Activities:
Investments in Property, Plant and Equipment (657,416) (759,006)
Net Cash Flows Used in Investing Activities (657,416) (759,006)
Financing Activities:
Cash Dividends on Common Stock (430,000) (247,600)
Cash Dividends on Preferred Stock (4,169) (4,169)
Capital Contributions from Eversource Parent - 300,000
Issuance of Long-Term Debt 400,000 650,000
Decrease in Notes Payable to Eversource Parent (280,000) (322,000)
Other Financing Activities (4,892) (8,516)
Net Cash Flows (Used in)/Provided by Financing Activities (319,061) 367,715
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash 151,325 (1,126)
Cash and Restricted Cash - Beginning of Period 2,109 12,243
Cash, Cash Equivalents and Restricted Cash - End of Period $ 153,434 $ 11,117
The accompanying notes are an integral part of these unaudited condensed financial statements.
9
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars) As of September 30, 2025 As of December 31, 2024
ASSETS
Current Assets:
Cash $ 18,558 $ 911
Receivables, Net (net of allowance for uncollectible accounts of $117,780 and
$114,910 as of September 30, 2025 and December 31, 2024, respectively)
665,964 614,563
Accounts Receivable from Affiliated Companies 211,456 82,921
Unbilled Revenues 48,283 59,079
Materials, Supplies and REC Inventory 189,111 220,621
Regulatory Assets 912,343 902,770
Prepayments and Other Current Assets 55,051 72,986
Total Current Assets 2,100,766 1,953,851
Property, Plant and Equipment, Net 14,910,449 14,037,828
Deferred Debits and Other Assets:
Regulatory Assets 1,117,130 1,204,337
Prepaid Pension and PBOP 766,906 724,661
Other Long-Term Assets 253,297 154,571
Total Deferred Debits and Other Assets 2,137,333 2,083,569
Total Assets $ 19,148,548 $ 18,075,248
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable $ 479,000 $ 504,782
Long-Term Debt - Current Portion 244,597 250,000
Accounts Payable 487,385 534,868
Accounts Payable to Affiliated Companies 163,623 153,672
Obligations to Third Party Suppliers 158,615 163,711
Regulatory Liabilities 543,194 436,312
Other Current Liabilities 157,570 202,197
Total Current Liabilities 2,233,984 2,245,542
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 2,050,260 2,005,439
Regulatory Liabilities 1,670,310 1,643,079
Other Long-Term Liabilities 398,444 377,462
Total Deferred Credits and Other Liabilities 4,119,014 4,025,980
Long-Term Debt 5,644,983 4,844,920
Preferred Stock Not Subject to Mandatory Redemption 43,000 43,000
Common Stockholder's Equity:
Common Stock - -
Capital Surplus, Paid In 3,888,842 3,788,842
Retained Earnings 3,218,867 3,127,105
Accumulated Other Comprehensive Loss (142) (141)
Common Stockholder's Equity 7,107,567 6,915,806
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 19,148,548 $ 18,075,248
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024 2025 2024
Operating Revenues $ 1,129,537 $ 1,077,523 $ 3,012,688 $ 2,870,206
Operating Expenses:
Purchased Power and Transmission 334,104 335,335 868,765 817,988
Operations and Maintenance 195,958 189,012 538,461 526,263
Depreciation 113,018 104,623 330,364 301,831
Amortization of Regulatory Assets, Net 29,714 51,187 97,433 120,814
Energy Efficiency Programs 97,735 73,255 205,431 222,218
Taxes Other Than Income Taxes 84,637 74,758 236,661 205,818
Total Operating Expenses 855,166 828,170 2,277,115 2,194,932
Operating Income 274,371 249,353 735,573 675,274
Interest Expense 69,087 60,783 183,714 164,896
Other Income, Net 47,074 47,489 141,082 143,024
Income Before Income Tax Expense 252,358 236,059 692,941 653,402
Income Tax Expense 59,230 51,510 163,709 151,273
Net Income $ 193,128 $ 184,549 $ 529,232 $ 502,129
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024 2025 2024
Net Income $ 193,128 $ 184,549 $ 529,232 $ 502,129
Other Comprehensive Income/(Loss), Net of Tax:
Changes in Funded Status of SERP Benefit Plan (4) (23) (16) (67)
Qualified Cash Flow Hedging Instruments 5 5 15 15
Other Comprehensive Income/(Loss), Net of Tax 1 (18) (1) (52)
Comprehensive Income $ 193,129 $ 184,531 $ 529,231 $ 502,077
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
11
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Nine Months Ended September 30, 2025
Common Stock Capital
Surplus,
Paid In 		Retained
Earnings 		Accumulated
Other
Comprehensive
Loss 		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2025 200 $ - $ 3,788,842 $ 3,127,105 $ (141) $ 6,915,806
Net Income 167,175 167,175
Dividends on Preferred Stock (490) (490)
Dividends on Common Stock (436,000) (436,000)
Capital Contributions from Eversource Parent 100,000 100,000
Other Comprehensive Loss (2) (2)
Balance as of March 31, 2025 200 - 3,888,842 2,857,790 (143) 6,746,489
Net Income 168,929 168,929
Dividends on Preferred Stock (490) (490)
Balance as of June 30, 2025 200 - 3,888,842 3,026,229 (143) 6,914,928
Net Income 193,128 193,128
Dividends on Preferred Stock (490) (490)
Other Comprehensive Income 1 1
Balance as of September 30, 2025 200 $ - $ 3,888,842 $ 3,218,867 $ (142) $ 7,107,567
For the Nine Months Ended September 30, 2024
Common Stock Capital
Surplus,
Paid In 		Retained
Earnings 		Accumulated
Other
Comprehensive
Income/(Loss) 		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2024 200 $ - $ 3,013,842 $ 3,136,612 $ 44 $ 6,150,498
Net Income 159,977 159,977
Dividends on Preferred Stock (490) (490)
Dividends on Common Stock (96,700) (96,700)
Capital Contributions from Eversource Parent 300,000 300,000
Other Comprehensive Loss (16) (16)
Balance as of March 31, 2024 200 - 3,313,842 3,199,399 28 6,513,269
Net Income 157,603 157,603
Dividends on Preferred Stock (490) (490)
Dividends on Common Stock (297,200) (297,200)
Other Comprehensive Loss (18) (18)
Balance as of June 30, 2024 200 - 3,313,842 3,059,312 10 6,373,164
Net Income 184,549 184,549
Dividends on Preferred Stock (490) (490)
Dividends on Common Stock (250,000) (250,000)
Capital Contributions from Eversource Parent 75,000 75,000
Other Comprehensive Loss (18) (18)
Balance as of September 30, 2024 200 $ - $ 3,388,842 $ 2,993,371 $ (8) $ 6,382,205
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
12
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024
Operating Activities:
Net Income $ 529,232 $ 502,129
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 330,364 301,831
Deferred Income Taxes 12,724 55,795
Uncollectible Expense 22,176 27,746
Pension, SERP and PBOP Income, Net (29,734) (27,053)
Regulatory Over/(Under) Recoveries, Net 115,301 (155,869)
Amortization of Regulatory Assets, Net 97,433 120,814
Cost of Removal Expenditures (53,517) (39,590)
Other (13,957) (25,224)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (160,917) (152,656)
Taxes Receivable/Accrued, Net 44,410 33,883
Accounts Payable (44,814) (83,599)
Other Current Assets and Liabilities, Net (27,387) 14,030
Net Cash Flows Provided by Operating Activities 821,314 572,237
Investing Activities:
Investments in Property, Plant and Equipment (1,210,112) (1,074,260)
Net Cash Flows Used in Investing Activities (1,210,112) (1,074,260)
Financing Activities:
Cash Dividends on Common Stock (436,000) (643,900)
Cash Dividends on Preferred Stock (1,470) (1,470)
Issuance of Long-Term Debt 800,000 600,000
Capital Contributions from Eversource Parent 100,000 375,000
(Decrease)/Increase in Notes Payable (25,782) 171,653
Other Financing Activities (9,106) (6,077)
Net Cash Flows Provided by Financing Activities 427,642 495,206
Net Increase/(Decrease) in Cash and Restricted Cash 38,844 (6,817)
Cash and Restricted Cash - Beginning of Period 9,023 22,785
Cash and Restricted Cash - End of Period $ 47,867 $ 15,968
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
13
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars) As of September 30, 2025 As of December 31, 2024
ASSETS
Current Assets:
Cash $ 1,810 $ 1,431
Receivables, Net (net of allowance for uncollectible accounts of $15,507 and $14,090
as of September 30, 2025 and December 31, 2024, respectively)
205,156 163,063
Accounts Receivable from Affiliated Companies 30,032 27,285
Unbilled Revenues 44,087 57,226
Materials, Supplies and REC Inventory 61,432 75,778
Regulatory Assets 118,896 173,267
Special Deposits 19,660 32,668
Prepayments and Other Current Assets 1,309 15,916
Total Current Assets 482,382 546,634
Property, Plant and Equipment, Net 5,401,185 5,089,943
Deferred Debits and Other Assets:
Regulatory Assets 865,073 892,411
Prepaid Pension and PBOP 103,081 91,005
Other Long-Term Assets 20,452 21,948
Total Deferred Debits and Other Assets 988,606 1,005,364
Total Assets $ 6,872,173 $ 6,641,941
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent $ 8,100 $ 131,100
Rate Reduction Bonds - Current Portion 43,210 43,210
Accounts Payable 161,101 226,074
Accounts Payable to Affiliated Companies 47,478 45,141
Obligations to Third Party Suppliers 35,417 1,314
Accrued Interest 31,941 29,062
Regulatory Liabilities 103,599 121,058
Other Current Liabilities 53,074 61,642
Total Current Liabilities 483,920 658,601
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 803,344 781,559
Regulatory Liabilities 409,842 394,982
Other Long-Term Liabilities 45,149 43,859
Total Deferred Credits and Other Liabilities 1,258,335 1,220,400
Long-Term Debt 2,030,819 1,732,066
Rate Reduction Bonds 280,862 324,072
Common Stockholder's Equity:
Common Stock - -
Capital Surplus, Paid In 1,973,134 1,898,134
Retained Earnings 845,103 808,668
Common Stockholder's Equity 2,818,237 2,706,802
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 6,872,173 $ 6,641,941
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
14
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024 2025 2024
Operating Revenues $ 351,219 $ 342,027 $ 1,002,332 $ 955,453
Operating Expenses:
Purchased Power and Transmission 67,796 44,828 187,072 169,761
Operations and Maintenance 73,755 68,981 211,760 207,336
Depreciation 44,049 38,865 125,820 114,401
Amortization of Regulatory (Liabilities)/Assets, Net (2,178) 51,881 45,487 101,874
Energy Efficiency Programs 12,605 12,155 35,350 33,026
Taxes Other Than Income Taxes 27,835 24,041 80,832 71,821
Total Operating Expenses 223,862 240,751 686,321 698,219
Operating Income 127,357 101,276 316,011 257,234
Interest Expense 24,098 23,223 65,171 62,676
Other Income, Net 9,032 8,097 33,515 22,919
Income Before Income Tax Expense 112,291 86,150 284,355 217,477
Income Tax Expense 31,050 22,353 72,920 53,880
Net Income $ 81,241 $ 63,797 $ 211,435 $ 163,597
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
15
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
For the Nine Months Ended September 30, 2025
Common Stock Capital
Surplus,
Paid In 		Retained
Earnings 		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2025 301 $ - $ 1,898,134 $ 808,668 $ 2,706,802
Net Income 66,279 66,279
Capital Contributions from Eversource Parent 75,000 75,000
Balance as of March 31, 2025 301 - 1,973,134 874,947 2,848,081
Net Income 63,915 63,915
Dividends on Common Stock (175,000) (175,000)
Balance as of June 30, 2025 301 - 1,973,134 763,862 2,736,996
Net Income 81,241 81,241
Balance as of September 30, 2025 301 $ - $ 1,973,134 $ 845,103 $ 2,818,237
For the Nine Months Ended September 30, 2024
Common Stock Capital
Surplus,
Paid In 		Retained
Earnings 		Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2024 301 $ - $ 1,698,134 $ 655,785 $ 2,353,919
Net Income 48,356 48,356
Capital Contributions from Eversource Parent 100,000 100,000
Balance as of March 31, 2024 301 - 1,798,134 704,141 2,502,275
Net Income 51,444 51,444
Dividends on Common Stock (62,000) (62,000)
Balance as of June 30, 2024 301 - 1,798,134 693,585 2,491,719
Net Income 63,797 63,797
Capital Contributions from Eversource Parent 100,000 100,000
Balance as of September 30, 2024 301 $ - $ 1,898,134 $ 757,382 $ 2,655,516
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
16
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended September 30,
(Thousands of Dollars) 2025 2024
Operating Activities:
Net Income $ 211,435 $ 163,597
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 125,820 114,401
Deferred Income Taxes 15,250 72,924
Uncollectible Expense 3,871 3,420
Pension, SERP and PBOP Income, Net (6,679) (6,614)
Regulatory Under Recoveries, Net (8,466) (198,781)
Amortization of Regulatory Assets, Net 45,487 101,874
Cost of Removal Expenditures (21,249) (29,473)
Other (8,776) 335
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (12,479) (36,877)
Taxes Receivable/Accrued, Net (1,638) 28,721
Accounts Payable (15,306) (21,273)
Other Current Assets and Liabilities, Net 31,001 12,912
Net Cash Flows Provided by Operating Activities 358,271 205,166
Investing Activities:
Investments in Property, Plant and Equipment (402,789) (461,427)
Net Cash Flows Used in Investing Activities (402,789) (461,427)
Financing Activities:
Cash Dividends on Common Stock (175,000) (62,000)
Capital Contributions from Eversource Parent 75,000 200,000
Issuance of Long-Term Debt 300,000 300,000
Repayment of Rate Reduction Bonds (43,210) (43,210)
Decrease in Notes Payable to Eversource Parent (123,000) (143,700)
Other Financing Activities (1,867) (3,140)
Net Cash Flows Provided by Financing Activities 31,923 247,950
Net Decrease in Cash and Restricted Cash (12,595) (8,311)
Cash and Restricted Cash - Beginning of Period 37,243 35,004
Cash and Restricted Cash - End of Period $ 24,648 $ 26,693
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
17
EVERSOURCE ENERGY AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
COMBINED NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout the combined notes to the unaudited condensed financial statements.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and EGMA (natural gas utilities), and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 4.6 million electric, natural gas and water customers through twelve regulated utilities in Connecticut, Massachusetts and New Hampshire.
The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH include the accounts of each of their respective subsidiaries. Intercompany transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."
The combined notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying financial statements should be read in conjunction with the Combined Notes to Financial Statementsincluded in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2024 Form 10-K, which was filed with the SEC on February 14, 2025. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of September 30, 2025 and December 31, 2024, and the results of operations, comprehensive income, common shareholders' equity for the three and nine months ended September 30, 2025 and 2024, and the cash flows for the nine months ended September 30, 2025 and 2024. The results of operations, comprehensive income for the three and nine months ended September 30, 2025 and 2024 and the cash flows for the nine months ended September 30, 2025 and 2024 are not necessarily indicative of the results expected for a full year.
CYAPC and YAEC are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. Eversource consolidates the operations of CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership and voting interests in each of these entities is greater than 50 percent. Intercompany transactions between CL&P, NSTAR Electric, PSNH and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.
Eversource's utility subsidiaries' electric, natural gas and water distribution and transmission businesses are subject to rate-regulation that is based on cost recovery and meets the criteria for application of accounting guidance for entities with rate-regulated operations, which considers the effect of regulation on the differences in the timing of the recognition of certain revenues and expenses from those of other businesses and industries. See Note 2, "Regulatory Accounting," for further information.
Certain reclassifications of prior period data were made in the accompanying financial statements to conform to the current period presentation.
B. Accounting Standards
Accounting Standards Issued but Not Yet Adopted: In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires enhanced income tax disclosures, primarily requiring consistent categories and greater detailed disclosure information in the tax rate reconciliation as well as income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted and may be applied on either a prospective or retrospective basis. Eversource expects to adopt the amendments to this standard prospectively upon effective date and does not expect an impact on the financial statements of Eversource, CL&P, NSTAR Electric and PSNH.
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In September 2025, the Financial Accounting Standards Board issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software, to modernize and clarify the accounting for software costs. The ASU's provisions change the criteria for capitalization of software development costs by eliminating consideration of "project development stages" and instead requiring consideration of the probability of software project completion for its intended use. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. Entities are permitted to apply one of three transition approaches: prospective, modified transition that is based on the status of the project and whether software costs were capitalized before the date of adoption, or retrospective. Eversource is currently reviewing the requirements of ASU 2025-06.
C. Allowance for Uncollectible Accounts
Receivables, Net on the balance sheets primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs, and property rentals. Receivables, Net also includes customer receivables for the purchase of electricity from a competitive third party supplier, the current portion of customer energy efficiency loans, property damage receivables and other miscellaneous receivables. There is no material concentration of receivables.
Receivables are recorded at amortized cost, net of a credit loss provision (or allowance for uncollectible accounts). The current expected credit loss (CECL) model is applied to receivables for purposes of calculating the allowance for uncollectible accounts. This model is based on expected losses and results in the recognition of estimated expected credit losses, including uncollectible amounts for both billed and unbilled revenues, over the life of the receivable at the time a receivable is recorded.
The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category. Factors in determining credit loss include historical collection, write-off experience, analysis of delinquency statistics, and management's assessment of collectability from customers, including current economic conditions, customer payment trends, the impact on customer bills because of energy usage trends and changes in rates, flexible payment plans and financial hardship arrearage management programs offered to customers, reasonable forecasts, and expectations of future collectability and collection efforts. Management continuously assesses the collectability of receivables and adjusts estimates based on actual experience and future expectations based on economic conditions, collection efforts and other factors. Management also monitors the aging analysis of receivables to determine if there are changes in the collections of accounts receivable. Receivable balances are written off against the allowance for uncollectible accounts when the customer accounts are no longer in service and these balances are deemed to be uncollectible. Management concluded that the reserve balance as of September 30, 2025 adequately reflected the collection risk and net realizable value for its receivables.
The PURA allows CL&P and Yankee Gas to accelerate the recovery of accounts receivable balances attributable to qualified customers under financial or medical duress (uncollectible hardship accounts receivable) outstanding for greater than 180 days and 90 days, respectively. The DPU allows NSTAR Electric, NSTAR Gas and EGMA to recover in rates amounts associated with certain uncollectible hardship accounts receivable. These uncollectible hardship customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets. Hardship customers are protected from shut-off in certain circumstances, and historical collection experience has reflected a higher default risk as compared to the rest of the receivable population. Management uses a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.
The total allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The activity in the allowance for uncollectible accounts by portfolio segment as of September 30this as follows:
Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other 		Total Allowance Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other 		Total Allowance Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other 		Total Allowance Total Allowance
Balance as of July 1, 2025 $ 377.0 $ 198.6 $ 575.6 $ 236.3 $ 37.3 $ 273.6 $ 60.3 $ 59.9 $ 120.2 $ 15.0
Uncollectible Expense - 18.1 18.1 - 6.0 6.0 - 8.2 8.2 1.5
Uncollectible Costs Deferred (1)
(0.1) 13.7 13.6 (3.2) 2.8 (0.4) (1.0) 8.2 7.2 2.0
Write-Offs (18.1) (42.1) (60.2) (14.2) (8.7) (22.9) (0.5) (18.6) (19.1) (3.2)
Recoveries Collected 0.5 3.3 3.8 0.2 1.2 1.4 - 1.3 1.3 0.2
Balance as of September 30, 2025 $ 359.3 $ 191.6 $ 550.9 $ 219.1 $ 38.6 $ 257.7 $ 58.8 $ 59.0 $ 117.8 $ 15.5
Balance as of January 1, 2025 $ 364.6 $ 191.6 $ 556.2 $ 240.7 $ 38.4 $ 279.1 $ 55.2 $ 59.7 $ 114.9 $ 14.1
Uncollectible Expense - 59.6 59.6 - 16.1 16.1 - 22.2 22.2 3.9
Uncollectible Costs Deferred (1)
34.2 39.3 73.5 8.8 7.6 16.4 5.7 19.5 25.2 4.6
Write-Offs (40.3) (109.5) (149.8) (30.8) (26.9) (57.7) (2.1) (46.6) (48.7) (7.7)
Recoveries Collected 0.8 10.6 11.4 0.4 3.4 3.8 - 4.2 4.2 0.6
Balance as of September 30, 2025 $ 359.3 $ 191.6 $ 550.9 $ 219.1 $ 38.6 $ 257.7 $ 58.8 $ 59.0 $ 117.8 $ 15.5
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Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other 		Total Allowance Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other 		Total Allowance Hardship Accounts Retail (Non-Hardship),
Wholesale, and Other 		Total Allowance Total Allowance
Balance as of July 1, 2024 $ 389.1 $ 190.5 $ 579.6 $ 274.4 $ 34.2 $ 308.6 $ 45.9 $ 60.3 $ 106.2 $ 14.1
Uncollectible Expense - 29.2 29.2 - 5.1 5.1 - 15.7 15.7 1.2
Uncollectible Costs Deferred (1)
5.4 16.0 21.4 (8.8) 3.4 (5.4) 10.1 8.2 18.3 1.4
Write-Offs (16.8) (41.3) (58.1) (12.2) (7.4) (19.6) (1.9) (20.3) (22.2) (3.2)
Recoveries Collected 0.1 2.5 2.6 0.1 1.0 1.1 - 0.3 0.3 0.2
Balance as of September 30, 2024 $ 377.8 $ 196.9 $ 574.7 $ 253.5 $ 36.3 $ 289.8 $ 54.1 $ 64.2 $ 118.3 $ 13.7
Balance as of January 1, 2024 $ 366.8 $ 187.7 $ 554.5 $ 259.7 $ 36.3 $ 296.0 $ 43.6 $ 53.4 $ 97.0 $ 14.3
Uncollectible Expense - 55.4 55.4 - 11.4 11.4 - 27.7 27.7 3.4
Uncollectible Costs Deferred (1)
58.9 37.5 96.4 29.3 8.7 38.0 13.6 17.3 30.9 3.8
Write-Offs (48.5) (93.1) (141.6) (36.0) (23.4) (59.4) (3.1) (36.6) (39.7) (8.4)
Recoveries Collected 0.6 9.4 10.0 0.5 3.3 3.8 - 2.4 2.4 0.6
Balance as of September 30, 2024 $ 377.8 $ 196.9 $ 574.7 $ 253.5 $ 36.3 $ 289.8 $ 54.1 $ 64.2 $ 118.3 $ 13.7
(1) These expected credit losses are deferred as regulatory costs on the balance sheets, as these amounts are ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to uncollectible energy supply costs.
As of both September 30, 2025 and December 31, 2024, the allowance for uncollectible accounts attributable to the Aquarion water distribution business has been reclassified to Assets Held for Sale on the Eversource balance sheets. For further information, see Note 18, "Assets Held for Sale."
D. Fair Value Measurements
Fair value measurement guidance is applied to derivative contracts that are not elected or designated as "normal purchases" or "normal sales" (normal) and to marketable securities held in trusts. Fair value measurement guidance is also applied to valuations of the investments used to calculate the funded status of pension and PBOP plans, the nonrecurring fair value measurements of nonfinancial assets such as goodwill, long-lived assets, equity method investments, AROs, and in the valuation of business combinations and asset acquisitions. The fair value measurement guidance was also applied in estimating the fair value of preferred stock, long-term debt and RRBs.
Fair Value Hierarchy: In measuring fair value, Eversource uses observable market data when available in order to minimize the use of unobservable inputs. Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes. The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement. Eversource evaluates the classification of assets and liabilities measured at fair value on a quarterly basis.
The levels of the fair value hierarchy are described below:
Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 - Inputs are quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable.
Level 3 - Quoted market prices are not available. Fair value is derived from valuation techniques in which one or more significant inputs or assumptions are unobservable. Where possible, valuation techniques incorporate observable market inputs that can be validated to external sources such as industry exchanges, including prices of energy and energy-related products.
Uncategorized - Investments that are measured at net asset value are not categorized within the fair value hierarchy.
Determination of Fair Value: The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 4, "Derivative Instruments," Note 5, "Marketable Securities," and Note 11, "Fair Value of Financial Instruments," to the financial statements.
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E. Other Income, Net
The components of Other Income, Net on the statements of income were as follows:
For the Three Months Ended
September 30, 2025 September 30, 2024
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Pension, SERP and PBOP Non-Service
Income Components, Net of Deferred Portion 		$ 35.6 $ 9.3 $ 15.6 $ 4.5 $ 31.6 $ 7.7 $ 13.9 $ 3.9
AFUDC Equity (1)
19.7 (1.2) 14.3 2.2 22.7 5.4 13.0 1.5
Equity in Earnings of Unconsolidated Affiliates 4.5 - 0.2 - 17.1 - 0.2 -
Investment Loss (2.8) (1.0) (0.7) (0.4) (2.1) (0.9) (0.2) (0.3)
Interest Income 29.4 2.9 17.6 2.7 38.9 9.7 20.6 3.0
Other (0.6) - 0.1 - 4.4 - - -
Total Other Income, Net $ 85.8 $ 10.0 $ 47.1 $ 9.0 $ 112.6 $ 21.9 $ 47.5 $ 8.1
For the Nine Months Ended
September 30, 2025 September 30, 2024
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Pension, SERP and PBOP Non-Service
Income Components, Net of Deferred Portion 		$ 103.7 $ 26.9 $ 45.8 $ 13.2 $ 89.4 $ 21.4 $ 39.5 $ 11.2
AFUDC Equity 69.2 3.9 43.1 10.6 73.2 16.9 44.4 5.1
Equity in Earnings of Unconsolidated Affiliates (2)
15.3 - 0.6 - 48.1 - 0.6 -
Investment (Loss)/Income (6.8) (1.8) (2.7) (0.7) (1.8) (1.7) 0.7 (0.5)
Interest Income 94.2 11.0 54.2 10.4 106.0 24.8 57.8 7.1
Other (2.1) 0.1 0.1 - 4.0 - - -
Total Other Income, Net $ 273.5 $ 40.1 $ 141.1 $ 33.5 $ 318.9 $ 61.4 $ 143.0 $ 22.9
(1) As part of the annual FERC Transmission Formula Rate protocols process, the AFUDC calculation methodology utilized in formula transmission rates was updated effective January 1, 2025. This calculation methodology resulted in an adjustment to the AFUDC equity and AFUDC debt amounts recognized on the statement of income in the third quarter of 2025 in accordance with the AFUDC policy.
(2) Equity in Earnings of Unconsolidated Affiliates includes $23.4 million of pre-tax income recorded at Eversource in the second quarter of 2024 from Eversource's previous wind equity method investment, North East Offshore, as a result of a vendor settlement agreement payment received by the joint venture. This settlement payment reduced the required capital contributions to be made by Eversource to North East Offshore during the second quarter of 2024.
F. Other Taxes
Eversource's companies that serve customers in Connecticut collect gross receipts taxes levied by the state of Connecticut from their customers. These gross receipts taxes are recorded separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of income as follows:
For the Three Months Ended For the Nine Months Ended
(Millions of Dollars) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Eversource $ 62.4 $ 59.3 $ 176.8 $ 157.2
CL&P 58.8 56.0 157.3 139.6
As agents for state and local governments, Eversource's companies that serve customers in Connecticut and Massachusetts collect certain sales taxes that are recorded on a net basis with no impact on the statements of income.
G. Supplemental Cash Flow Information
Non-cash investing activities include plant additions included in Accounts Payable as follows:
(Millions of Dollars) As of September 30, 2025 As of September 30, 2024
Eversource $ 423.8 $ 458.6
CL&P 88.0 73.0
NSTAR Electric 128.0 164.8
PSNH 60.9 67.5
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The following table reconciles cash and cash equivalents as reported on the balance sheets to the cash, cash equivalents and restricted cash balance as reported on the statements of cash flows:
As of September 30, 2025 As of December 31, 2024
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Cash and Cash Equivalents as reported on the Balance Sheets $ 259.3 $ 152.4 $ 18.6 $ 1.8 $ 26.7 $ 1.1 $ 0.9 $ 1.4
Restricted cash included in:
Special Deposits 85.5 1.0 29.3 19.6 75.8 1.0 8.1 32.7
Assets Held for Sale, Current 5.9 - - - 5.8 - - -
Marketable Securities 10.3 - - - 10.0 - - -
Other Long-Term Assets 5.7 - - 3.2 9.0 - - 3.1
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows $ 366.7 $ 153.4 $ 47.9 $ 24.6 $ 127.3 $ 2.1 $ 9.0 $ 37.2
Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, cash held in escrow accounts, and CYAPC and YAEC cash balances. Special Deposits are included in Current Assets on the balance sheets. Restricted cash included in Marketable Securities represents money market funds held in restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations.
Eversource's restricted cash also includes an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley established under the terms of an EGMA 2020 settlement agreement. This restricted cash held in escrow accounts included $20.0 million recorded as short-term in Special Deposits as of both September 30, 2025 and December 31, 2024, and $2.5 million and $5.9 million recorded in Other Long-Term Assets on the balance sheets as of September 30, 2025 and December 31, 2024, respectively.
2. REGULATORY ACCOUNTING
Eversource's utility companies are subject to rate regulation that is based on cost recovery and meets the criteria for application of accounting guidance for rate-regulated operations, which considers the effect of regulation on the timing of the recognition of certain revenues and expenses. The regulated companies' financial statements reflect the effects of the rate-making process. The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, including a return on investment.
The application of accounting guidance for rate-regulated enterprises results in recording regulatory assets and liabilities. Regulatory assets represent the deferral of incurred costs that are probable of future recovery in customer rates. Regulatory assets are amortized as the incurred costs are recovered through customer rates. Regulatory liabilities represent either revenues received from customers to fund expected costs that have not yet been incurred or probable future refunds to customers.
Management believes it is probable that each of the regulated companies will recover its respective investments in long-lived assets and the regulatory assets that have been recorded. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the applicable costs would be charged to net income in the period in which the determination is made.
Regulatory Assets: The components of regulatory assets were as follows:
As of September 30, 2025 As of December 31, 2024
(Millions of Dollars) Eversource CL&P NSTAR
Electric 		PSNH Eversource CL&P NSTAR
Electric 		PSNH
Storm Costs, Net $ 1,955.4 $ 970.9 $ 520.9 $ 463.6 $ 2,039.4 $ 971.1 $ 609.8 $ 458.5
Regulatory Tracking Mechanisms 1,495.6 202.2 662.9 110.5 1,781.6 507.7 650.0 162.8
Income Taxes, Net 1,001.3 532.9 157.7 20.2 968.4 521.0 145.4 20.7
Benefit Costs 976.1 167.8 300.7 64.3 967.4 168.8 293.6 65.6
Securitized Stranded Costs 316.9 - - 316.9 349.3 - - 349.3
Goodwill-related 234.6 - 201.4 - 247.2 - 212.3 -
Cost of Removal 238.9 - 8.2 - 198.4 - 8.5 -
Asset Retirement Obligations 159.6 43.4 83.0 5.4 150.2 41.2 78.3 5.1
Derivative Liabilities 10.7 10.7 - - 57.2 57.2 - -
Other Regulatory Assets 281.0 19.6 94.6 3.1 311.6 58.5 109.2 3.7
Total Regulatory Assets 6,670.1 1,947.5 2,029.4 984.0 7,070.7 2,325.5 2,107.1 1,065.7
Less: Current Portion 1,831.2 268.8 912.3 118.9 2,189.7 638.5 902.8 173.3
Total Long-Term Regulatory Assets $ 4,838.9 $ 1,678.7 $ 1,117.1 $ 865.1 $ 4,881.0 $ 1,687.0 $ 1,204.3 $ 892.4
As of both September 30, 2025 and December 31, 2024, the Regulatory Assets attributable to the Aquarion water distribution business have been reclassified to Assets Held for Sale on the Eversource balance sheets. For further information, see Note 18, "Assets Held for Sale."
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Regulatory Costs in Other Long-Term Assets: Eversource's regulated companies had $244.2 million (including $121.8 million for CL&P, $46.2 million for NSTAR Electric and $5.3 million for PSNH) and $221.0 million (including $116.3 million for CL&P, $41.1 million for NSTAR Electric and $4.5 million for PSNH) of additional regulatory costs not yet specifically approved as of September 30, 2025 and December 31, 2024, respectively, that were included in Other Long-Term Assets on the balance sheets. These amounts will be reclassified to Regulatory Assets upon approval by the applicable regulatory agency. Based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates. As of September 30, 2025 and December 31, 2024, these regulatory costs included $112.8 million (including $50.2 million for CL&P and $31.1 million for NSTAR Electric) and $92.5 million (including $47.2 million for CL&P and $24.4 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs.
Regulatory Liabilities: The components of regulatory liabilities were as follows:
As of September 30, 2025 As of December 31, 2024
(Millions of Dollars) Eversource CL&P NSTAR
Electric 		PSNH Eversource CL&P NSTAR
Electric 		PSNH
EDIT due to Tax Cuts and Jobs Act of 2017 $ 2,401.3 $ 946.0 $ 858.0 $ 323.6 $ 2,442.7 $ 956.6 $ 877.6 $ 330.6
Regulatory Tracking Mechanisms 1,129.2 443.6 520.1 97.0 702.4 180.3 413.6 114.4
Cost of Removal 764.7 258.9 468.4 37.4 684.1 212.8 451.3 20.1
Deferred Portion of Non-Service Income
Components of Pension, SERP and PBOP 		488.6 70.0 242.5 47.1 427.1 61.6 211.6 42.6
AFUDC - Transmission 171.4 68.9 102.5 - 154.8 65.1 89.7 -
Benefit Costs 53.8 5.4 8.4 4.3 69.3 4.5 21.4 3.9
Other Regulatory Liabilities 169.4 39.0 13.6 4.0 184.5 39.1 14.2 4.5
Total Regulatory Liabilities 5,178.4 1,831.8 2,213.5 513.4 4,664.9 1,520.0 2,079.4 516.1
Less: Current Portion 1,064.1 391.3 543.2 103.6 632.3 124.1 436.3 121.1
Total Long-Term Regulatory Liabilities $ 4,114.3 $ 1,440.5 $ 1,670.3 $ 409.8 $ 4,032.6 $ 1,395.9 $ 1,643.1 $ 395.0
As of both September 30, 2025 and December 31, 2024, the Regulatory Liabilities attributable to the Aquarion water distribution business have been reclassified to Liabilities Held for Sale on the Eversource balance sheets. For further information, see Note 18, "Assets Held for Sale."
Regulatory Developments:
CL&P State Bonding Proceeds:On July 1, 2025, Connecticut enacted Public Act No. 25-173 (Senate Bill No. 4) (the Act). The Act authorizes the State of Connecticut to issue up to $125 million in new general obligation bonds for each fiscal year 2026 and 2027 to reduce costs of hardship protection measures charged to retail customers, of which 67 percent of each issuance will be allocated to CL&P, and $30 million for fiscal year 2026 and $20 million for fiscal year 2027 in new general obligation bonds to fund the electric vehicle charging program, of which 80 percent of each issuance will be allocated to CL&P.
On September 19, 2025, CL&P received $107.8 million in general obligation bond proceeds from the State of Connecticut, which represent reimbursement of incurred costs that were previously recognized as regulatory assets on CL&P's balance sheets. The proceeds received for the reimbursement of hardship costs and for electric vehicle charging program costs were credited against the System Benefits Charge (SBC) and Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) regulatory deferrals on CL&P's balance sheet as of September 30, 2025. The proceeds from the state bond funding are presented as a cash inflow in Regulatory Recoveries within operating activities on CL&P's statement of cash flows.
PSNH Distribution Rate Case: On June 11, 2024, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase. On July 31, 2024, the NHPUC approved a settlement agreement that was 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. Temporary rates were in effect until permanent rates were approved and took effect August 1, 2025.
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. Throughout the course of the proceeding, PSNH amended the requested revenue requirement to account for developments in the case, and arrived at a final proposed rate increase of $103 million, which primarily reflects the removal of deferred storm costs that will be addressed in a separate proceeding. On July 25, 2025, the NHPUC issued its decision on permanent rates and approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase referenced above. The total base distribution revenue requirement effective August 1, 2025 is $519 million. The order also established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH's capital structure.
This revenue requirement also contains an alternative regulation revenue requirement adjustment. This adjustment was part of the NHPUC's alternative regulatory framework that the NHPUC adopted as an alternative to PSNH's proposed performance-based regulation plan. The alternative regulatory framework authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028. PSNH is required to file its next base distribution rate case for effect in June 2029 and committed not to file its next distribution rate case until 2029. The alternative regulatory framework calculates the annual revenue adjustment using a productivity factor and an adjustment for inflation to provide PSNH with increased revenue for operations. The framework also contains an exogenous events recovery mechanism for certain unforeseen events out of PSNH's control and exceeding a specified threshold, a performance metric, and an earnings sharing mechanism where PSNH would have to return
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75 percent of all revenue back to customers that exceeds 25 basis points more than the authorized ROE of 9.5 percent. Consistent with PSNH's proposal, lost base revenues for both net metering and energy efficiency were eliminated effective August 1, 2025.
To the extent permanent rates exceed the level of temporary rates, the difference will reconcile back to the date that the temporary rates took effect and the company recovers the difference over a twelve-month term. On August 11, 2025, PSNH filed its recoupment calculation, and on September 10, 2025, the NHPUC issued an order that the recoupment is $9.1 million and will be collected through the RRA regulatory tracking mechanism over a one-year period.
As part of the decision, unrecovered storm costs of $247 million were removed from the rate proceeding for consideration in a separate proceeding. Approval of the ultimate amount of storm costs to be recovered is subject to a separate prudency review that was filed in March of 2024 and is being considered by the NHPUC in a separate dedicated docket, which is at this time complete and awaiting the issuance of an order. Approved storm costs in excess of the amount approved in base rates will be recovered through the Regulatory Reconciliation Adjustment (RRA) regulatory tracking mechanism. The NHPUC increased the level of storm costs recovered in base rates from $12 million to $19 million.
The impact of the rate case decision resulted in a pre-tax benefit to earnings of $15.6 million at PSNH due primarily to the recoupment and the allowed recovery of other deferrals that will be recovered in the RRA. The majority of this amount was recorded as a reduction to amortization expense on PSNH's statement of income in the third quarter of 2025.
3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION
The following tables summarize property, plant and equipment by asset category:
Eversource As of September 30, 2025 As of December 31, 2024
(Millions of Dollars)
Distribution - Electric $ 22,182.3 $ 21,144.1
Distribution - Natural Gas 9,452.8 8,922.2
Transmission - Electric 16,705.2 16,130.9
Solar 206.8 201.0
Utility 48,547.1 46,398.2
Other (1)
2,455.5 2,254.1
Property, Plant and Equipment, Gross 51,002.6 48,652.3
Less: Accumulated Depreciation
Utility (10,055.0) (9,636.5)
Other (1,195.9) (1,044.1)
Total Accumulated Depreciation (11,250.9) (10,680.6)
Property, Plant and Equipment, Net 39,751.7 37,971.7
Construction Work in Progress 3,292.4 3,014.9
Total Property, Plant and Equipment, Net $ 43,044.1 $ 40,986.6
As of September 30, 2025 As of December 31, 2024
(Millions of Dollars) CL&P NSTAR
Electric 		PSNH CL&P NSTAR
Electric 		PSNH
Distribution - Electric $ 8,777.3 $ 10,304.7 $ 3,140.6 $ 8,437.9 $ 9,782.3 $ 2,964.2
Transmission - Electric 7,097.5 6,558.6 3,050.7 6,937.7 6,375.2 2,819.6
Solar - 206.8 - - 201.0 -
Property, Plant and Equipment, Gross
15,874.8 17,070.1 6,191.3 15,375.6 16,358.5 5,783.8
Less: Accumulated Depreciation
(3,046.0) (3,948.0) (1,069.0) (2,928.0) (3,782.0) (1,032.3)
Property, Plant and Equipment, Net
12,828.8 13,122.1 5,122.3 12,447.6 12,576.5 4,751.5
Construction Work in Progress
594.3 1,788.3 278.9 554.6 1,461.3 338.4
Total Property, Plant and Equipment, Net
$ 13,423.1 $ 14,910.4 $ 5,401.2 $ 13,002.2 $ 14,037.8 $ 5,089.9
(1) These assets are primarily comprised of computer software, hardware and equipment at Eversource Service and buildings at The Rocky River Realty Company.
As of both September 30, 2025 and December 31, 2024, the property, plant and equipment balance, net of accumulated depreciation, attributable to the Aquarion water distribution business has been reclassified to Assets Held for Sale on the Eversource balance sheets. For further information, see Note 18, "Assets Held for Sale."
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4. DERIVATIVE INSTRUMENTS
The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers. The costs associated with supplying energy to customers are recoverable from customers in future rates. These regulated companies manage the risks associated with the price volatility of energy and energy-related products through the use of derivative and non-derivative contracts. Many of the derivative contracts meet the definition of, and are designated as, normal and qualify for accrual accounting under the applicable accounting guidance. The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses on the statements of income as electricity or natural gas is delivered.
Derivative contracts that are not designated as normal are recorded at fair value as derivative assets or liabilities on the balance sheets. For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract settlement amounts are recovered from, or refunded to, customers in their respective energy supply rates.
The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative Liabilities, with current and long-term portions, on the balance sheets. The following table presents the gross fair values of contracts, categorized by risk type, and the net amounts recorded as current or long-term derivative assets or liabilities:
As of September 30, 2025 As of December 31, 2024
CL&P
(Millions of Dollars)
Fair Value Hierarchy Commodity Supply and Price Risk
Management
Netting (1)
Net Amount
Recorded as a Derivative 		Commodity Supply and Price Risk
Management
Netting (1)
Net Amount
Recorded as
a Derivative
Current Derivative Assets Level 2 $ 2.6 $ (0.2) $ 2.4 $ 14.2 $ (0.3) $ 13.9
Current Derivative Liabilities Level 2 (13.1) - (13.1) (71.1) - (71.1)
(1) Amounts represent derivative assets and liabilities that Eversource elected to record net on the balance sheets. These amounts are subject to master netting agreements or similar agreements for which the right of offset exists.
Derivative Contracts at Fair Value with Offsetting Regulatory Amounts
Commodity Supply and Price Risk Management: As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined capacities of these contracts as of September 30, 2025 and December 31, 2024 were 609 MW and 610 MW, respectively. The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets.
For the three months ended September 30, 2025 and 2024, there were losses of $0.1 million and $0.5 million, respectively. For the nine months ended September 30, 2025 and 2024, there were losses of $0.7 million and $3.4 million, respectively. These changes in fair value associated with CL&P's derivative contracts are deferred in Regulatory Assets on the balance sheet.
In accordance with Massachusetts legislation, in June 2018, NSTAR Electric entered into a 20-year power purchase agreement for the purchase of clean energy and renewable energy attributes with estimated total payments of $6.7 billion made over the 20-year term. The agreement is expected to be marked to market on the balance sheet as a material derivative liability by the end of 2025. The derivative liability is projected to be approximately $350 million, subject to fluctuations based on prevailing market conditions at the time of recognition. This derivative liability will be fully offset by a regulatory asset for recovery from NSTAR Electric's customers.
Fair Value Measurements of Derivative Instruments
The fair value of derivative contracts utilizes both observable and unobservable inputs. The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions related to exit price. Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled capacity payments and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty's credit rating for assets and the Company's credit rating for liabilities. Significant observable inputs for valuations of these contracts include energy-related product prices in future years for which quoted prices in an active market exist. Valuations incorporate estimates of premiums or discounts that would be required by a market participant to arrive at an exit price, using historical market transactions adjusted for the terms of the contract. Fair value measurements were prepared by individuals with expertise in valuation techniques, pricing of energy-related products, and accounting requirements. All derivative contracts were classified as Level 2 in the fair value hierarchy as of both September 30, 2025 and December 31, 2024.
5. MARKETABLE SECURITIES
Eversource's marketable securities include the CYAPC and YAEC legally restricted trusts that each hold equity and available-for-sale debt securities to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities. Equity and available-for-sale debt marketable securities are recorded at fair value.CYAPC and YAEC's spent nuclear fuel trusts are restricted and are classified in long-term Marketable Securities on the balance sheets.
Eversource's water business also holds a trust. Securities held in this trust as of September 30, 2025 and December 31, 2024 of $3.4 million and $4.1 million, respectively, were reclassified to Assets Held for Sale on the Eversource balance sheets. For further information, see Note 18, "Assets Held for Sale."
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Equity Securities:Eversource's equity securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of $164.3 million and $163.1 million as of September 30, 2025 and December 31, 2024, respectively. Unrealized gains and losses for these spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to long-term liabilities on the balance sheets, with no impact on the statements of income.
Available-for-Sale Debt Securities:The following is a summary of available-for-sale debt securities, which are held in CYAPC's and YAEC's spent nuclear fuel trusts:
As of September 30, 2025 As of December 31, 2024
Eversource
(Millions of Dollars)
Amortized Cost Pre-Tax
Unrealized Gains 		Pre-Tax
Unrealized
Losses 		Fair Value Amortized Cost Pre-Tax
Unrealized Gains 		Pre-Tax
Unrealized
Losses 		Fair Value
Debt Securities $ 159.9 $ 0.5 $ (3.7) $ 156.7 $ 163.2 $ 0.1 $ (6.1) $ 157.2
Unrealized gains and losses for available-for-sale debt securities included in the CYAPC and YAEC spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to long-term liabilities on the balance sheets, with no impact on the statements of income.
As of September 30, 2025, the contractual maturities of available-for-sale debt securities were as follows:
Eversource
(Millions of Dollars)
Amortized Cost Fair Value
Less than one year
$ 13.6 $ 13.6
One to five years 37.5 38.2
Six to ten years 27.1 27.2
Greater than ten years 81.7 77.7
Total Debt Securities $ 159.9 $ 156.7
Realized Gains and Losses: Realized gains and losses are offset in long-term liabilities for CYAPC and YAEC and are recorded in Other Income, Net for Eversource's benefit trusts. Eversource utilizes the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts.
Fair Value Measurements: The following table presents the marketable securities recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:
Eversource
(Millions of Dollars)
As of September 30, 2025 As of December 31, 2024
Level 1:
Mutual Funds and Equities $ 164.3 $ 163.1
Money Market Funds 10.3 10.0
Total Level 1 $ 174.6 $ 173.1
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury) $ 86.4 $ 92.0
Corporate Debt Securities 38.0 32.5
Asset-Backed Debt Securities 6.9 7.8
Municipal Bonds 6.5 6.8
Other Fixed Income Securities 8.6 8.1
Total Level 2 $ 146.4 $ 147.2
Total Marketable Securities $ 321.0 $ 320.3
U.S. government issued debt securities are valued using market approaches that incorporate transactions for the same or similar bonds and adjustments for yields and maturity dates. Corporate debt securities are valued using a market approach, utilizing recent trades of the same or similar instruments and also incorporating yield curves, credit spreads and specific bond terms and conditions. Asset-backed debt securities include collateralized mortgage obligations, commercial mortgage backed securities, and securities collateralized by auto loans, credit card loans or receivables. Asset-backed debt securities are valued using recent trades of similar instruments, prepayment assumptions, yield curves, issuance and maturity dates, and tranche information. Municipal bonds are valued using a market approach that incorporates reported trades and benchmark yields. Other fixed income securities are valued using pricing models, quoted prices of securities with similar characteristics, and discounted cash flows.
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6. SHORT-TERM AND LONG-TERM DEBT
Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2025, the revolving credit facility's termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.
NSTAR Electric has a $650.0 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650.0 million revolving credit facility. Effective October 11, 2025, the revolving credit facility's termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop NSTAR Electric's $650.0 million commercial paper program.
The amount of borrowings outstanding and available under the commercial paper programs were as follows:
Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 1,038.5 $ 1,538.0 $ 961.5 $ 462.0 4.50 % 4.76 %
NSTAR Electric Commercial Paper Program 479.0 504.8 171.0 145.2 4.30 % 4.55 %
There were no borrowings outstanding on the revolving credit facilities as of September 30, 2025 and December 31, 2024.
CL&P and PSNH have uncommitted line of credit agreements totaling $375 million and $250 million, respectively, all of which will expire in either May 2026, September 2026 or October 2026. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, 2025 and December 31, 2024.
Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time.
Intercompany Borrowings:Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of September 30, 2025 and December 31, 2024, there were intercompany loans from Eversource parent to PSNH of $8.1 million and $131.1 million, respectively. As of December 31, 2024, there were intercompany loans from Eversource parent to CL&P of $280.0 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Sources and Uses of Cash:The Company expects the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.
Long-Term Debt Issuance Authorizations:On March 26, 2025, PURA approved Yankee Gas' request for authorization to issue up to $360.0 million in long-term debt through December 31, 2026. On May 27, 2025, the NHPUC approved PSNH's request for authorization to issue up to $300.0 million in long-term debt through December 31, 2025.
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Long-Term Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments:
(Millions of Dollars) Interest Rate Issuance/(Repayment) Issue Date or Repayment Date Maturity Date Use of Proceeds for Issuance/
Repayment Information
CL&P Series A First Mortgage Bonds 4.95 % $ 400.0 January 2025 January 2030 Repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures 4.85 % 400.0 February 2025 March 2030
Repay 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures 5.20 % 400.0 February 2025 March 2035
Repay 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures 5.20 % 300.0 October 2025 March 2035 Repaid short-term debt, paid capital expenditures and working capital
PSNH Series Y First Mortgage Bonds 4.40 % 300.0 June 2025 July 2028 Repaid short-term debt, paid capital expenditures and working capital
Eversource Parent Series HH Senior Notes 4.45 % 600.0 October 2025 December 2030 Repay Series J bonds at maturity and repaid short-term debt
Eversource Parent Series H Senior Notes 3.15 % (300.0) January 2025 January 2025 Paid at maturity
Eversource Parent Series Q Senior Notes 0.80 % (300.0) August 2025 August 2025 Paid at maturity
NSTAR Gas Series Y First Mortgage Bonds 4.86 % 205.0 June 2025 June 2030 Repaid short-term debt, paid capital expenditures and working capital
NSTAR Gas Series Z First Mortgage Bonds 5.30 % 20.0 June 2025 June 2035 Repaid short-term debt, paid capital expenditures and working capital
NSTAR Gas Series R First Mortgage Bonds 2.33 % (75.0) May 2025 May 2025 Paid at maturity
Yankee Gas Series Y First Mortgage Bonds 5.02 % 148.0 July 2025 January 2031 Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital
Yankee Gas Series Z First Mortgage Bonds 5.55 % 37.0 July 2025 July 2035 Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital
Yankee Gas Series M First Mortgage Bonds 3.35 % (75.0) September 2025 September 2025 Paid at maturity
EGMA Series F First Mortgage Bonds 4.77 % 125.0 September 2025 October 2030 Repaid short-term debt, paid capital expenditures and working capital
As a result of the Eversource parent long-term debt issuance in October 2025, $595.0 million of current portion of long-term debt was reclassified to Long-Term Debt on Eversource parent's balance sheet as of September 30, 2025. As a result of the NSTAR Electric long-term debt issuance in October 2025, $305.4 million of current portion of long-term debt was reclassified to Long-Term Debt on NSTAR Electric's balance sheet as of September 30, 2025.
7. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES
Rate Reduction Bonds: In May 2018, PSNH Funding, a wholly-owned subsidiary of PSNH, issued $635.7 million of securitized RRBs in multiple tranches with a weighted average interest rate of 3.66 percent, and final maturity dates ranging from 2026 to 2035. The RRBs are expected to be repaid by February 1, 2033. RRB payments consist of principal and interest and are paid semi-annually, beginning on February 1, 2019. The RRBs were issued pursuant to a finance order issued by the NHPUC in January 2018 to recover remaining costs resulting from the divestiture of PSNH's generation assets.
PSNH Funding was formed solely to issue RRBs to finance PSNH's unrecovered remaining costs associated with the divestiture of its generation assets. PSNH Funding is considered a VIE primarily because the equity capitalization is insufficient to support its operations. PSNH has the power to direct the significant activities of the VIE and is most closely associated with the VIE as compared to other interest holders. Therefore, PSNH is considered the primary beneficiary and consolidates PSNH Funding in its consolidated financial statements.
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The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:
(Millions of Dollars)
PSNH Balance Sheets: As of September 30, 2025 As of December 31, 2024
Restricted Cash - Current Portion (included in Special Deposits) $ 18.0 $ 31.0
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets) 3.2 3.1
Securitized Stranded Cost (included in Regulatory Assets) 316.9 349.3
Other Regulatory Liabilities (included in Regulatory Liabilities) 8.5 6.9
Accrued Interest (included in Other Current Liabilities) 2.0 5.7
Rate Reduction Bonds - Current Portion 43.2 43.2
Rate Reduction Bonds - Long-Term Portion 280.9 324.1
(Millions of Dollars)
PSNH Income Statements:
For the Three Months Ended For the Nine Months Ended
September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Amortization of RRB Principal (included in Amortization of
Regulatory Assets/(Liabilities), Net) 		$ 10.8 $ 10.8 $ 32.4 $ 32.4
Interest Expense on RRB Principal (included in Interest Expense) 3.1 3.5 9.7 10.8
8. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION
Eversource provides defined benefit retirement plans (Pension Plans) that cover eligible employees. In addition to the Pension Plans, Eversource maintains non-qualified defined benefit retirement plans (SERP Plans), which provide benefits in excess of Internal Revenue Code limitations to eligible participants consisting of current and retired employees. Eversource also provides defined benefit postretirement plans (PBOP Plans) that provide life insurance and a health reimbursement arrangement created for the purpose of reimbursing retirees and dependents for health insurance premiums and certain medical expenses to eligible employees that meet certain age and service eligibility requirements.
The components of net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets/(liabilities) for future recovery or refund, are shown below. The service cost component of net periodic benefit plan expense/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit plan expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP expense/(income) reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.
In August 2024, Eversource communicated to its employees participating in the Eversource 401k Plan enhanced defined contribution feature (referred to as K-Vantage) that effective January 1, 2025, a Cash Balance Pension Plan is established, which replaces employer K-Vantage contributions. Eversource transferred into the Cash Balance Pension Plan employees who are participants in the K-Vantage plan, with the exception of one union group that voted to enter effective January 1, 2026, and will credit employees a set percentage of an employee's eligible pay based on age and years of service on the employee's behalf. This benefit is a new, additional obligation of the existing Pension Plan and will be funded through the existing assets of the Eversource Pension Plan. The liability began accruing benefits upon the effective date of January 1, 2025.
Pension and SERP PBOP
For the Three Months Ended September 30, 2025 For the Three Months Ended September 30, 2025
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Service Cost $ 17.2 $ 3.9 $ 2.4 $ 1.7 $ 1.6 $ 0.3 $ 0.3 $ 0.1
Interest Cost 64.1 12.9 13.3 6.8 8.0 1.4 2.2 0.8
Expected Return on Plan Assets (113.7) (23.0) (27.7) (12.0) (21.1) (2.4) (10.5) (1.4)
Actuarial Loss/(Gain) 11.0 1.3 3.7 0.5 (0.2) - - -
Prior Service Cost/(Credit) 0.3 - 0.1 - (5.4) 0.3 (4.2) 0.1
Total Net Periodic Benefit Plan Income $ (21.1) $ (4.9) $ (8.2) $ (3.0) $ (17.1) $ (0.4) $ (12.2) $ (0.4)
Intercompany Income Allocations N/A $ (0.5) $ (0.3) $ - N/A $ (0.5) $ (0.7) $ (0.2)
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Pension and SERP PBOP
For the Nine Months Ended September 30, 2025 For the Nine Months Ended September 30, 2025
(Millions of Dollars) Eversource CL&P NSTAR
Electric 		PSNH Eversource CL&P NSTAR
Electric 		PSNH
Service Cost $ 50.8 $ 11.5 $ 7.3 $ 4.9 $ 4.8 $ 0.8 $ 0.8 $ 0.3
Interest Cost 191.4 38.6 39.7 20.4 24.0 4.2 6.6 2.4
Expected Return on Plan Assets (340.7) (68.9) (83.1) (35.9) (63.4) (7.2) (31.5) (4.2)
Actuarial Loss/(Gain) 32.0 3.8 10.6 1.5 (0.7) - - -
Prior Service Cost/(Credit) 0.9 - 0.3 - (16.2) 0.9 (12.7) 0.3
Settlement Loss 3.3 - - - - - - -
Total Net Periodic Benefit Plan Income $ (62.3) $ (15.0) $ (25.2) $ (9.1) $ (51.5) $ (1.3) $ (36.8) $ (1.2)
Intercompany Income Allocations N/A $ (0.9) $ (0.3) $ - N/A $ (1.5) $ (2.1) $ (0.6)
Pension and SERP PBOP
For the Three Months Ended September 30, 2024 For the Three Months Ended September 30, 2024
(Millions of Dollars) Eversource CL&P NSTAR
Electric 		PSNH Eversource CL&P NSTAR
Electric 		PSNH
Service Cost $ 11.2 $ 3.3 $ 1.9 $ 1.1 $ 1.7 $ 0.3 $ 0.3 $ 0.1
Interest Cost 62.7 12.6 12.8 6.7 8.0 1.4 2.2 0.9
Expected Return on Plan Assets (115.7) (23.4) (28.0) (12.2) (20.3) (2.4) (9.9) (1.4)
Actuarial Loss/(Gain) 22.0 3.2 6.4 1.3 (0.1) - - -
Prior Service Cost/(Credit) 0.3 - 0.1 - (5.4) 0.3 (4.2) 0.1
Total Net Periodic Benefit Plan Income $ (19.5) $ (4.3) $ (6.8) $ (3.1) $ (16.1) $ (0.4) $ (11.6) $ (0.3)
Intercompany Income Allocations N/A $ (0.6) $ (0.6) $ (0.2) N/A $ (0.6) $ (0.6) $ (0.2)
Pension and SERP PBOP
For the Nine Months Ended September 30, 2024 For the Nine Months Ended September 30, 2024
(Millions of Dollars) Eversource CL&P NSTAR
Electric 		PSNH Eversource CL&P NSTAR
Electric 		PSNH
Service Cost $ 33.2 $ 9.5 $ 5.9 $ 3.2 $ 5.2 $ 0.9 $ 0.9 $ 0.4
Interest Cost 187.4 37.7 38.7 20.1 24.0 4.2 6.6 2.6
Expected Return on Plan Assets (347.0) (70.2) (84.3) (36.6) (61.0) (7.1) (29.7) (4.2)
Actuarial Loss/(Gain) 63.9 8.9 19.2 3.7 (0.3) - - -
Prior Service Cost/(Credit) 0.9 - 0.3 - (16.2) 0.8 (12.7) 0.3
Settlement Loss 4.3 - - - - - - -
Total Net Periodic Benefit Plan Income $ (57.3) $ (14.1) $ (20.2) $ (9.6) $ (48.3) $ (1.2) $ (34.9) $ (0.9)
Intercompany Income Allocations N/A $ (0.9) $ (0.8) $ (0.3) N/A $ (1.7) $ (1.9) $ (0.6)
9. COMMITMENTS AND CONTINGENCIES
A. Environmental Matters
Eversource, CL&P, NSTAR Electric and PSNH are subject to environmental laws and regulations intended to mitigate or remove the effect of past operations and improve or maintain the quality of the environment. These laws and regulations require the removal or the remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current and former operating sites. Eversource, CL&P, NSTAR Electric and PSNH have an active environmental auditing and training program and each believes it is substantially in compliance with all enacted laws and regulations.
The number of environmental sites and related reserves for which remediation or long-term monitoring, preliminary site work or site assessment is being performed are as follows:
As of September 30, 2025 As of December 31, 2024
Number of Sites Reserve
(in millions) 		Number of Sites Reserve
(in millions)
Eversource 66 $ 151.2 65 $ 128.0
CL&P 16 15.4 15 13.4
NSTAR Electric 14 8.1 14 6.6
PSNH 8 9.3 8 6.3
The increase in the reserve balance was due primarily to changes in cost estimates at MGP sites, primarily at NSTAR Gas and Yankee Gas.
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Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured natural gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability. Eversource's reserve balances related to these former MGP sites were $136.9 million and $115.9 million as of September 30, 2025 and December 31, 2024, respectively, and related primarily to the natural gas business segment.
These reserve estimates are subjective in nature as they take into consideration several different remediation options at each specific site. The reliability and precision of these estimates can be affected by several factors, including new information concerning either the level of contamination at the site, the extent of Eversource's, CL&P's, NSTAR Electric's and PSNH's responsibility for remediation or the extent of remediation required, recently enacted laws and regulations or changes in cost estimates due to certain economic factors. It is possible that new information or future developments could require a reassessment of the potential exposure to required environmental remediation. As this information becomes available, management will continue to assess the potential exposure and adjust the reserves accordingly.
B. Guarantees and Indemnifications
In the normal course of business, Eversource parent provides credit assurances on behalf of its subsidiaries, including CL&P, NSTAR Electric and PSNH, in the form of guarantees. Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications.
Guarantees issued on behalf of unconsolidated entities, including equity method ownership interests, for which Eversource parent is the guarantor, are recorded at fair value as a liability on the balance sheet at the inception of the guarantee. The fair value of guarantees issued on behalf of unconsolidated entities are recorded within Other Long-Term Liabilities on the balance sheet, and were $1.6 million and $1.2 million as of September 30, 2025 and December 31, 2024, respectively. Eversource regularly reviews performance risk under these guarantee arrangements, and believes the likelihood of payments being required under the guarantees is remote. In the event it becomes probable that Eversource parent will be required to perform under the guarantee, the amount of probable payment will be recorded.
On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to affiliates of Global Infrastructure Partners (GIP). Under the agreement with GIP, Eversource's existing and certain additional credit support obligations for Revolution Wind are expected to roll off as the project completes construction. On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted. Under the agreement with Ørsted, Eversource's existing credit support obligations for Sunrise Wind were either terminated or indemnified by Ørsted as a result of the sale.
The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties, and primarily relates to its previously-owned offshore wind projects:
As of September 30, 2025
Company (Obligor) Description Maximum Exposure
(in millions)
Revolution Wind, LLC and TurbineCo, LLC
Offshore wind construction-related purchase agreements with third-party contractors (1)
$ 181.0
Eversource Investment LLC, Eversource Investment Service Company LLC and South Fork Class B Member, LLC
Offshore wind funding and indemnification obligations (2)
202.6
Eversource Investment LLC
Letters of Credit (3)
4.3
Eversource TEI LLC
South Fork Wind Tax Equity (4)
50.0
South Fork Wind, LLC
Power Purchase Agreement Security (5)
7.1
Various Eversource subsidiaries
Surety bonds(6)
34.1
(1) Eversource parent issued guarantees on behalf of its previously 50 percent-owned affiliate, Revolution Wind, LLC, and on behalf of TurbineCo, LLC (successor in interest to North East Offshore, LLC (NEO)), under which Eversource parent agreed to guarantee each entity's performance of obligations under certain construction-related purchase agreements with third-party contractors, in an aggregate amount not to exceed $693.0 million. Eversource parent's obligations under the guarantees expire upon the earlier of (i) dates ranging between December 2026 and November 2027 and (ii) full performance of the guaranteed obligations.
(2) Eversource parent issued guarantees on behalf of its wholly-owned subsidiary Eversource Investment LLC (EI), which held Eversource's previous investments in offshore wind-related equity method investments until sale, and on behalf of its previously 50 percent-owned affiliate, South Fork Class B Member, LLC, whereby Eversource parent will guarantee each entity's performance of certain funding obligations of the South Fork and Revolution Wind projects. Eversource parent also guaranteed certain indemnification obligations of EI associated with third party credit support for EI's investment in NEO. On September 30, 2024, Eversource parent issued a guaranty on behalf of its wholly-owned subsidiary, Eversource Investment Service Company LLC, whereby Eversource parent will guarantee Eversource Investment Service Company LLC's performance of certain indemnification obligations during the onshore construction phase of the Revolution Wind project, in an amount not to exceed $100.0 million. These guarantees will not exceed $1.62 billion and expire upon the full performance of the guaranteed obligations.
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(3) Eversource parent entered into a guarantee on behalf of EI, under which Eversource parent would guarantee EI's obligations under a letter of credit facility with a financial institution that EI may request in an aggregate amount of up to approximately $25 million. The guarantee will remain in effect until full performance of the guaranteed obligations. As of September 30, 2025, EI had issued two letters of credit on behalf of South Fork Wind, LLC totaling $4.3 million. On October 21, 2025 and October 27, 2025, each of the letters of credit were subsequently terminated.
(4) Eversource parent issued a guarantee on behalf of its wholly-owned subsidiary, Eversource TEI LLC, whereby Eversource parent will guarantee Eversource TEI LLC's performance of certain obligations, in an amount not to exceed $50.0 million, in connection with any remaining obligations under the LLC agreement. Eversource parent's obligations expire upon the full performance of the guaranteed obligations.
(5) Eversource parent issued a guarantee on behalf of its previously 50 percent-owned affiliate, South Fork Wind, LLC, whereby Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations, in an amount not to exceed $7.1 million, under a Power Purchase Agreement between the Long Island Power Authority and South Fork Wind, LLC (the Agreement). The guarantee expires upon the later of (i) the end of the Agreement term, January 2044, with the option to extend to January 2049 and (ii) full performance of the guaranteed obligations.
(6) Surety bonds expire in 2025 and 2026. Expiration dates reflect termination dates, the majority of which will be renewed or extended. Certain surety bonds contain credit ratings triggers that would require Eversource parent to post collateral in the event that the unsecured debt credit ratings of Eversource parent are downgraded.
On September 30, 2024, Eversource entered into an agreement with GIP and Ørsted to contingently provide future credit support up to a maximum of $850 million in guarantees, if required, to support third party tax equity financing for Revolution Wind.
C. FERC ROE Complaints
Four separate complaints were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive (incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.
The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, FERC issued Opinion No. 531-A and set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the Court).
All amounts associated with the first complaint period have been refunded, which totaled $38.9 million (pre-tax and excluding interest) at Eversource and reflected both the base ROE and incentive cap prescribed by the FERC order. The refund consisted of $22.4 million for CL&P, $13.7 million for NSTAR Electric and $2.8 million for PSNH.
Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of both September 30, 2025 and December 31, 2024. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of both September 30, 2025 and December 31, 2024.
On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.
The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.
If the results of the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods. These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.
On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the NETOs' cases. On May 21, 2020, the FERC issued its order in Opinion No. 569-A on the rehearing of the MISO transmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously
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adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order to determine the NETOs' base ROEs in their four pending cases. FERC Opinion Nos. 569-A and 569-B were appealed to the Court. On August 9, 2022, the Court issued its decision vacating MISO ROE FERC Opinion Nos. 569, 569-A and 569-B and remanded to FERC to reopen the proceedings. The Court found that FERC's development of the new return methodology was arbitrary and capricious due to FERC's failure to offer a reasonable explanation for its decision to reintroduce the risk-premium financial model in its new methodology for calculating a just and reasonable return.
On October 17, 2024, FERC issued an order on the remand of the MISO ROE proceedings. The order addressed the Court's decision that the reintroduction of the risk-premium financial model in the ROE methodology was arbitrary and capricious by removing the risk-premium financial model from the ROE methodology. The removal of the risk-premium financial model was the only revision to FERC's ROE methodology and resulted in a two-model approach utilizing the two-step discounted cash flow model and the capital asset pricing model. MISO transmission owners were directed to provide refunds for the period November 12, 2013 to February 11, 2015 (the first MISO ROE complaint refund period) and for the period from September 28, 2016 (the date of FERC's order on the first MISO ROE complaint) to October 17, 2024 by December 1, 2025. The order also stated that FERC does not preclude the use of the risk-premium financial model in future proceedings if the parties can demonstrate that FERC's stated concerns around the inclusion of the model have been addressed. On March 25, 2025, FERC issued an order addressing arguments raised on rehearing, sustaining the result, and denying rehearing.
On November 13, 2024, the NETOs filed a supplemental brief in their four pending ROE proceedings to explain to FERC that it cannot apply the reasoning and methodologies of the MISO ROE case to the NETOs' cases due to the entirely different set of facts in the MISO and NETOs ROE proceedings. Doing so would violate the substance of the Court's April 14, 2017 order and would violate the legal standard required by the Federal Power Act.
On February 4, 2025, the MISO transmission owners submitted a petition for review with the Court requesting review of the October 17, 2024 MISO ROE order on remand and a December 19, 2024 notice of denial of rehearing. The petition requests review of FERC's decision to retroactively backdate the MISO transmission owners' base ROE to the date of an earlier order that FERC abandoned when it issued Order No. 569, treat an underlying unlawful complaint as if it were legitimate, and order eight years of interest as part of the directed refunds. On August 21, 2025, the NETOs submitted a brief in support of the MISO transmission owners with the Court. Final briefs in the Court proceeding are due January 26, 2026.
Given the significant uncertainty regarding the applicability of the FERC order in the MISO transmission owners' two complaint cases to the NETOs' pending four complaint cases due to the complex differences between the cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaints or subsequent periods at this time and Eversource cannot reasonably estimate any potential range of loss for any of the four complaint proceedings at this time. The resolution of these proceedings could have a material impact on the financial condition, results of operations and cash flows.
Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.
A change of 10 basis points to the base ROE used to establish the reserves would impact Eversource's after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods.
D. Offshore Wind Contingent Liability
On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP for adjusted gross proceeds of $745 million, which were received at closing. As part of the sale, Eversource and GIP agreed to make certain post-closing purchase price adjustment payments that will impact the final purchase price. The post-closing purchase price adjustment payments include cost sharing obligations that require Eversource to share equally in GIP's funding obligations up to an effective cap of approximately $240 million of incremental capital expenditure overruns incurred during the construction phase for Revolution Wind, after which Eversource will have responsibility for GIP's obligations for any additional capital expenditure overruns in excess of this amount. The purchase price is also subject to post-closing adjustments as a result of final project economics, which includes Eversource's obligation to maintain GIP's internal rate of return through the construction period for each project as specified in the agreement. For Revolution Wind, purchase price adjustment payments are expected to be completed in late 2026. South Fork Wind has achieved commercial operation, and Eversource made a purchase price adjustment payment related to this project in June 2025.
Upon closing of the sale, Eversource recorded a contingent liability of $365 million, reflecting its estimate of the future obligations under the terms of the sale to GIP. These obligations included the expected cost overrun sharing obligation, the expected obligation to maintain GIP's internal rate of return, and an obligation for other future costs. Certain payments made in 2025, including a purchase price adjustment payment related to the South Fork Wind project, reduced this liability and are reflected within investing activities on the statement of cash flows.
In the third quarter of 2025, Eversource received an updated report from GIP on the construction status of Revolution Wind, which included revised projections of total construction costs. The revised cost projections reflected known and quantifiable cost increases, including those associated with the impacts of damage to the wind turbine installation vessel, insurance costs, tariff impacts, and costs incurred as a result of the stop-work order for Revolution Wind received on August 22, 2025 from the Bureau of Ocean Energy Management that halted all offshore wind construction activities through September 22, 2025. Based on these developments and information currently available, in the third quarter of 2025 Eversource recognized a pre-tax charge of $284 million as a result of the aggregate impact of these items, to increase the liability for purchase price adjustments associated with the offshore wind projects. As of September 30, 2025, the contingent liability was $507.7 million and is recorded as a current liability on Eversource's balance sheet, based upon the timing of expected payments to GIP.
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Eversource relies on information that it receives from the project owners for both the final completed cost of South Fork Wind and construction-related costs of Revolution Wind. Eversource uses its judgment to adjust, as needed, its expected obligations to GIP while construction of Revolution Wind is completed, which continues to be expected in the second half of 2026.
New information or future developments that arise as the construction of Revolution Wind progresses will necessitate a reassessment of the estimated liability related to the obligations to GIP. The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted.
It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, it could result in additional losses and increases to the offshore wind contingent liability, which could be material. The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.
Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events. Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the extent of construction delays, which would impact the economics associated with the purchase price adjustment, and the eligibility for federal investment tax credits for Revolution Wind at a lower value than assumed and included in the purchase price. The purchase price of Revolution Wind included the sales value related to a 40 percent level of federal investment tax credits. A change in the expected value or qualification of investment tax credit adders could result in a significant loss in a future period.
Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.
2024 Loss Recorded Upon Sale of Offshore Wind Investments: The three and nine months ended September 30, 2024 statements of income include a loss resulting from the sale of Eversource's offshore wind investments. On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted. On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP. Upon the completion of both of these sale transactions, the total proceeds were compared to the carrying value of the investments, including an estimate of liability for post-closing adjustment payments to GIP, and Eversource recognized an aggregate after-tax loss on the sale of its offshore wind investments of $524 million in the third quarter of 2024. The aggregate after-tax loss is comprised of (1) the lower proceeds related to final terms of the sale transaction to GIP of approximately $225 million related to non-construction costs for the Revolution Wind and South Fork Wind projects, primarily due to a purchase price reduction of $150 million resulting from the delay of the commercial operations date of Revolution Wind, (2) identified forecasted construction costs as a result of a delay in the anticipated commercial operation date related to Revolution Wind of approximately $350 million, which included an estimate for the anticipated post-closing adjustment to GIP related to Eversource's expected cost overrun sharing obligation, and (3) approximately $326 million, which included an estimate for the anticipated post-closing adjustment related to Eversource's expected obligations to GIP as a result of final economics of the Revolution Wind and South Fork Wind projects and other future costs as well as a net $60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses. These losses were partially offset by the $377 million gain on the sale of Sunrise Wind.
E. Leases
In the first quarter of 2025, EGMA entered into a land and building finance lease that is expected to commence late 2025. The lease contains a purchase option that the Company has determined is probable of being executed. In accordance with the accounting guidance for leases, the Company will recognize the right-of-use asset and corresponding lease liability, and will assess the purchase option as part of the lease fair value upon commencement. As of September 30, 2025, the lease agreement totaled $18.7 million and the estimated purchase option was $19.0 million.
10. INCOME TAXES
Eversource maintains a valuation allowance recorded on deferred tax assets associated with the loss recorded from the offshore wind investments, which totaled $427.0 million as of December 31, 2024. In the third quarter of 2025, as part of filing its 2024 tax return to provision process, Eversource partially reversed this valuation allowance and recorded a benefit of $165 million as it reconciled the positions on the tax return to what was estimated as of December 31, 2024. The adjustment to the valuation allowance was required based on the reconciling of previously recorded tax losses to amounts included in applicable partnership income tax returns. The adjustment resulted from changes in tax estimates based on information from the partnership tax returns received in the third quarter of 2025. Eversource also recognized state tax benefits and certain tax credits of $118 million as part of the 2024 tax return to provision process. These adjustments totaling $283 million were recorded as a reduction to income tax expense on the statement of income in the third quarter of 2025.
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11. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair value of each of the following financial instruments:
Preferred Stock, Long-Term Debt and Rate Reduction Bonds: The fair value of CL&P's and NSTAR Electric's preferred stock is based upon pricing models that incorporate interest rates and other market factors, valuations or trades of similar securities and cash flow projections. The fair value of long-term debt and RRB debt securities is based upon pricing models that incorporate quoted market prices for those issues or similar issues adjusted for market conditions, credit ratings of the respective companies and treasury benchmark yields. The fair values provided in the table below are classified as Level 2 within the fair value hierarchy. Carrying amounts and estimated fair values are as follows:
Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Carrying
Amount 		Fair
Value 		Carrying
Amount 		Fair
Value 		Carrying
Amount 		Fair
Value 		Carrying
Amount 		Fair
Value
As of September 30, 2025:
Preferred Stock Not Subject to Mandatory Redemption
$ 155.6 $ 127.7 $ 116.2 $ 93.5 $ 43.0 $ 34.2 $ - $ -
Long-Term Debt 27,994.4 26,900.5 5,509.3 5,268.3 5,889.6 5,719.4 2,030.8 1,893.8
Rate Reduction Bonds 324.1 319.1 - - - - 324.1 319.1
As of December 31, 2024:
Preferred Stock Not Subject to Mandatory Redemption
$ 155.6 $ 123.8 $ 116.2 $ 90.3 $ 43.0 $ 33.5 $ - $ -
Long-Term Debt 26,704.8 24,791.4 5,111.1 4,705.8 5,094.9 4,759.4 1,732.1 1,529.7
Rate Reduction Bonds 367.3 352.1 - - - - 367.3 352.1
Derivative Instruments and Marketable Securities:Derivative instruments and investments in marketable securities are carried at fair value. For further information, see Note 4, "Derivative Instruments," and Note 5, "Marketable Securities," to the financial statements.
See Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," for the fair value measurement policy and the fair value hierarchy.
12. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)
The changes in accumulated other comprehensive income/(loss) by component, net of tax, are as follows:
For the Nine Months Ended September 30, 2025 For the Nine Months Ended September 30, 2024
Eversource
(Millions of Dollars)
Qualified
Cash Flow
Hedging
Instruments 		Defined
Benefit Plans 		Total Qualified
Cash Flow
Hedging
Instruments 		Defined
Benefit Plans 		Total
Balance as of Beginning of Period $ (0.4) $ (26.1) $ (26.5) $ (0.4) $ (33.3) $ (33.7)
OCI Before Reclassifications
- (0.9) (0.9) - (0.9) (0.9)
Amounts Reclassified from AOCI
- 4.3 4.3 - 6.4 6.4
Net OCI - 3.4 3.4 - 5.5 5.5
Balance as of End of Period $ (0.4) $ (22.7) $ (23.1) $ (0.4) $ (27.8) $ (28.2)
Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses that arose during the year and were recognized in AOCI. The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCI into Other Income, Net over the average future employee service period, and are reflected in amounts reclassified from AOCI. Defined benefit plan amounts reclassified from AOCI also include a settlement loss amortized into net periodic benefit plan expense/(income) for the nine months ended September 30, 2025. See Note 8, "Pension Benefits and Postretirement Benefits Other Than Pension," for further information.
13. COMMON SHARES
The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric and PSNH that were authorized and issued, as well as the respective per share par values:
Shares
Authorized as of September 30, 2025 and December 31, 2024 Issued as of
Par Value September 30, 2025 December 31, 2024
Eversource $ 5 410,000,000 382,854,501 375,724,367
CL&P $ 10 24,500,000 6,035,205 6,035,205
NSTAR Electric $ 1 100,000,000 200 200
PSNH $ 1 100,000,000 301 301
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Common Share Issuances: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an "at-the-market" (ATM) equity offering program. Eversource may issue and sell its common shares through its sales agents during the term of this agreement. Shares may be offered in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise. Sales may be made at either market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. In the first nine months of 2025, Eversource issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
On May 11, 2022, Eversource entered into an equity distribution agreement pursuant to which it could offer and sell up to $1.2 billion of its common shares from time to time through an ATM equity offering program. In the first nine months of 2024, Eversource issued 13,292,918 common shares, which resulted in proceeds of $830.2 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes. Eversource completed this program in October 2024.
Treasury Shares:As of September 30, 2025 and December 31, 2024, there were7,757,917and 9,116,315 Eversource common shares held as treasury shares, respectively. As of September 30, 2025 and December 31, 2024, there were 375,096,584 and 366,608,052 Eversource common shares outstanding, respectively.
Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan. The issuance of treasury shares represents a non-cash transaction, as the treasury shares were used to fulfill Eversource's obligations that require the issuance of common shares.
14. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS
Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended September 30, 2025 and 2024 and $5.6 million for each of the nine months ended September 30, 2025 and 2024. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest - Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of September 30, 2025 and December 31, 2024. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to Eversource parent and Noncontrolling Interest - Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.
15. EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share is computed based upon the weighted average number of common shares outstanding during each period. Diluted earnings/(loss) per share is computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect of certain share-based compensation awards as if they were converted into outstanding common shares. The dilutive effect of unvested RSU and performance share awards is calculated using the treasury stock method. RSU and performance share awards are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied. For the three and nine months ended September 30, 2025 and 2024, there were no antidilutive share awards excluded from the computation of diluted EPS.
The following table sets forth the components of basic and diluted earnings/(loss) per share:
Eversource
(Millions of Dollars, except share information)
For the Three Months Ended For the Nine Months Ended
September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Net Income/(Loss) Attributable to Common Shareholders $ 367.5 $ (118.1) $ 1,271.1 $ 739.1
Weighted Average Common Shares Outstanding:
Basic 371,914,953 359,520,518 369,299,065 354,483,338
Dilutive Effect 347,779 297,139 320,115 261,508
Diluted 372,262,732 359,817,657 369,619,180 354,744,846
Basic Earnings/(Loss) Per Common Share $ 0.99 $ (0.33) $ 3.44 $ 2.09
Diluted Earnings/(Loss) Per Common Share $ 0.99 $ (0.33) $ 3.44 $ 2.08
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16. REVENUES
The following tables present operating revenues disaggregated by revenue source:
For the Three Months Ended September 30, 2025
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,452.4 $ 109.1 $ - $ 57.4 $ - $ - $ 1,618.9
Commercial 905.1 73.4 - 20.8 - (2.3) 997.0
Industrial 112.2 34.7 - 1.5 - (6.6) 141.8
Total Retail Tariff Sales Revenues 2,469.7 217.2 - 79.7 - (8.9) 2,757.7
Wholesale Transmission Revenues - - 691.7 - - (500.0) 191.7
Wholesale Market Sales Revenues 220.6 29.6 - 1.2 - - 251.4
Other Revenues from Contracts with Customers 19.4 1.6 3.7 0.6 428.3 (428.9) 24.7
Total Revenues from Contracts with Customers 2,709.7 248.4 695.4 81.5 428.3 (937.8) 3,225.5
Alternative Revenue Programs 3.5 8.2 (117.4) (12.6) - 107.8 (10.5)
Other Revenues 4.7 0.5 0.1 0.3 - - 5.6
Total Operating Revenues $ 2,717.9 $ 257.1 $ 578.1 $ 69.2 $ 428.3 $ (830.0) $ 3,220.6
For the Nine Months Ended September 30, 2025
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 4,046.0 $ 1,039.8 $ - $ 129.3 $ - $ - $ 5,215.1
Commercial 2,484.4 504.9 - 53.9 - (6.3) 3,036.9
Industrial 319.1 150.2 - 3.7 - (19.4) 453.6
Total Retail Tariff Sales Revenues 6,849.5 1,694.9 - 186.9 - (25.7) 8,705.6
Wholesale Transmission Revenues - - 1,882.1 - - (1,378.9) 503.2
Wholesale Market Sales Revenues 723.5 140.9 - 3.4 - - 867.8
Other Revenues from Contracts with Customers 62.3 4.5 10.6 1.9 1,273.2 (1,269.2) 83.3
Total Revenues from Contracts with Customers 7,635.3 1,840.3 1,892.7 192.2 1,273.2 (2,673.8) 10,159.9
Alternative Revenue Programs 13.3 16.7 (198.3) (12.6) - 181.2 0.3
Other Revenues 13.4 2.3 0.2 0.9 - - 16.8
Total Operating Revenues $ 7,662.0 $ 1,859.3 $ 1,694.6 $ 180.5 $ 1,273.2 $ (2,492.6) $ 10,177.0
For the Three Months Ended September 30, 2024
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,465.5 $ 86.7 $ - $ 43.7 $ - $ - $ 1,595.9
Commercial 857.8 71.0 - 18.7 - (2.5) 945.0
Industrial 111.4 31.6 - 1.3 - (5.4) 138.9
Total Retail Tariff Sales Revenues 2,434.7 189.3 - 63.7 - (7.9) 2,679.8
Wholesale Transmission Revenues - - 583.6 - - (431.1) 152.5
Wholesale Market Sales Revenues 173.8 29.0 - 1.2 - - 204.0
Other Revenues from Contracts with Customers 22.4 1.9 3.5 1.2 414.7 (412.6) 31.1
Total Revenues from Contracts with Customers 2,630.9 220.2 587.1 66.1 414.7 (851.6) 3,067.4
Alternative Revenue Programs (2.9) (3.6) (45.2) 0.6 - 41.0 (10.1)
Other Revenues 4.8 0.6 0.1 0.4 - - 5.9
Total Operating Revenues $ 2,632.8 $ 217.2 $ 542.0 $ 67.1 $ 414.7 $ (810.6) $ 3,063.2
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For the Nine Months Ended September 30, 2024
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 3,747.1 $ 798.3 $ - $ 111.8 $ - $ - $ 4,657.2
Commercial 2,248.5 434.5 - 53.1 - (5.7) 2,730.4
Industrial 289.0 127.0 - 3.5 - (16.5) 403.0
Total Retail Tariff Sales Revenues 6,284.6 1,359.8 - 168.4 - (22.2) 7,790.6
Wholesale Transmission Revenues - - 1,570.6 - - (1,188.8) 381.8
Wholesale Market Sales Revenues 471.1 122.2 - 3.1 - - 596.4
Other Revenues from Contracts with Customers 66.8 4.5 11.0 2.5 1,253.6 (1,247.7) 90.7
Total Revenues from Contracts with Customers 6,822.5 1,486.5 1,581.6 174.0 1,253.6 (2,458.7) 8,859.5
Alternative Revenue Programs 24.4 28.1 1.9 (0.2) - (1.7) 52.5
Other Revenues 13.9 2.1 0.4 0.9 - - 17.3
Total Operating Revenues $ 6,860.8 $ 1,516.7 $ 1,583.9 $ 174.7 $ 1,253.6 $ (2,460.4) $ 8,929.3
For the Three Months Ended September 30, 2025 For the Three Months Ended September 30, 2024
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 752.9 $ 514.4 $ 185.1 $ 757.1 $ 530.8 $ 177.6
Commercial 333.7 476.0 95.9 349.9 416.9 91.4
Industrial 45.2 40.3 26.7 51.2 32.9 27.3
Total Retail Tariff Sales Revenues 1,131.8 1,030.7 307.7 1,158.2 980.6 296.3
Wholesale Transmission Revenues 305.2 236.2 150.3 262.2 212.3 109.1
Wholesale Market Sales Revenues 177.7 35.6 7.3 134.1 31.8 7.9
Other Revenues from Contracts with Customers 9.8 11.6 2.4 9.1 12.1 5.2
Total Revenues from Contracts with Customers 1,624.5 1,314.1 467.7 1,563.6 1,236.8 418.5
Alternative Revenue Programs (73.3) (1.0) (39.6) (46.5) 8.1 (9.7)
Other Revenues 2.2 1.9 0.7 2.4 2.0 0.5
Eliminations (190.9) (185.5) (77.6) (174.2) (169.4) (67.3)
Total Operating Revenues $ 1,362.5 $ 1,129.5 $ 351.2 $ 1,345.3 $ 1,077.5 $ 342.0
For the Nine Months Ended September 30, 2025 For the Nine Months Ended September 30, 2024
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 2,137.7 $ 1,400.1 $ 508.2 $ 1,897.7 $ 1,373.2 $ 476.2
Commercial 987.2 1,229.5 269.3 850.2 1,144.8 254.6
Industrial 137.6 104.4 77.1 117.0 93.1 78.9
Total Retail Tariff Sales Revenues 3,262.5 2,734.0 854.6 2,864.9 2,611.1 809.7
Wholesale Transmission Revenues 803.5 681.2 397.4 681.7 602.0 286.9
Wholesale Market Sales Revenues 572.3 125.1 26.1 352.8 90.3 28.0
Other Revenues from Contracts with Customers 27.1 35.8 11.8 27.0 36.5 15.9
Total Revenues from Contracts with Customers 4,665.4 3,576.1 1,289.9 3,926.4 3,339.9 1,140.5
Alternative Revenue Programs (89.0) (18.0) (78.0) 4.9 20.1 1.3
Other Revenues 5.0 6.5 2.1 6.7 5.6 2.0
Eliminations (545.5) (551.9) (211.7) (506.8) (495.4) (188.3)
Total Operating Revenues $ 4,035.9 $ 3,012.7 $ 1,002.3 $ 3,431.2 $ 2,870.2 $ 955.5
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17. SEGMENT INFORMATION
Eversource is organized into the Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution reportable segments and Other based on a combination of factors, including the characteristics of each segments' services, the sources of operating revenues and expenses and the regulatory environment in which each segment operates. The Electric Distribution segment consists of the rate-regulated distribution businesses of CL&P, NSTAR Electric and PSNH, and includes the results of NSTAR Electric's solar power facilities. The Electric Transmission segment consists of the rate-regulated electric transmission businesses of CL&P, NSTAR Electric and PSNH. The Natural Gas Distribution segment consists of the rate-regulated businesses of Yankee Gas, NSTAR Gas and EGMA. The Water Distribution segment consists of the rate-regulated business of Aquarion. These reportable segments represent substantially all of Eversource's total consolidated revenues. Revenues from the sale of electricity, natural gas and water primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer.
Eversource's reportable segments are determined based upon the level at which Eversource's chief operating decision maker assesses performance and makes decisions about the allocation of company resources. The chief operating decision maker uses the net income of each reportable segment to evaluate return generated from assets and decide how to reinvest profits and allocate resources, to monitor budget-to-actual results, in the planning and forecasting process, in determining compensation achievement, and in benchmarking to Eversource's peers. Eversource's chief operating decision maker is its chief executive officer. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
The remainder of Eversource's operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of CYAPC and YAEC, 4) the results of other unregulated subsidiaries, which are not part of its core business, and 5) Eversource's equity ownership interests that are not consolidated, which primarily included the offshore wind investments until sale of the three offshore wind projects in the third quarter of 2024 and a natural gas pipeline owned by Enbridge, Inc. In the ordinary course of business, Yankee Gas, NSTAR Gas and EGMA purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $77.7 million annually and are classified as Purchased Power, Purchased Natural Gas and Transmission on the Eversource statements of income.
Each of Eversource's subsidiaries, including CL&P, NSTAR Electric and PSNH, has one reportable segment.
Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense.
Eversource's segment information is as follows:
For the Three Months Ended September 30, 2025
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Operating Revenues $ 2,717.9 $ 257.1 $ 578.1 $ 69.2 $ 428.3 $ (830.0) $ 3,220.6
Depreciation and Amortization (299.8) (35.7) (104.4) (11.4) (56.4) 4.1 (503.6)
Operations and Maintenance (1)
Operations, Excluding Storm Costs (116.7) (50.3) (44.3)
Corporate Shared Services (110.7) (27.8) (19.9)
Storm Costs (27.2) - -
Employee Benefits (56.9) (21.0) (13.2)
Uncollectible Expense (40.2) (7.1) -
Other (39.5) (5.9) (20.5)
Total Operations and Maintenance (391.2) (112.1) (97.9) (25.7) (325.1) 433.7 (518.3)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)
(1,694.0) (120.2) (80.1) (7.0) (0.9) 392.2 (1,510.0)
Operating Income/(Loss) 332.9 (10.9) 295.7 25.1 45.9 - 688.7
Interest Expense (99.9) (30.2) (47.2) (7.7) (173.7) 40.6 (318.1)
Loss on Offshore Wind - - - - (284.0) - (284.0)
Interest Income 23.0 6.3 0.1 - 40.6 (40.6) 29.4
Other Income, Net 39.0 8.0 4.0 1.0 466.6 (462.2) 56.4
Income Tax (Expense)/Benefit (72.2) 10.0 (66.4) 0.5 325.1 - 197.0
Net Income/(Loss) 222.8 (16.8) 186.2 18.9 420.5 (462.2) 369.4
Net Income Attributable to Noncontrolling Interests (1.2) - (0.7) - - - (1.9)
Net Income/(Loss) Attributable to
Common Shareholders 		$ 221.6 $ (16.8) $ 185.5 $ 18.9 $ 420.5 $ (462.2) $ 367.5
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For the Nine Months Ended September 30, 2025
Eversource
(Millions of Dollars)
Electric Distribution Natural Gas Distribution Electric Transmission Water Distribution Other Eliminations Total
Operating Revenues $ 7,662.0 $ 1,859.3 $ 1,694.6 $ 180.5 $ 1,273.2 $ (2,492.6) $ 10,177.0
Depreciation and Amortization (1,130.4) (197.8) (320.7) (34.4) (160.5) 10.4 (1,833.4)
Operations and Maintenance (1)
Operations, Excluding Storm Costs (314.9) (137.4) (112.8)
Corporate Shared Services (332.8) (86.1) (58.7)
Storm Costs (69.0) - -
Employee Benefits (152.7) (56.8) (36.7)
Uncollectible Expense (125.0) (50.5) -
Other (106.6) (8.8) (49.7)
Total Operations and Maintenance (1,101.0) (339.6) (257.9) (71.8) (987.5) 1,284.5 (1,473.3)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)
(4,582.4) (960.9) (222.9) (20.5) (3.2) 1,197.7 (4,592.2)
Operating Income 848.2 361.0 893.1 53.8 122.0 - 2,278.1
Interest Expense (286.4) (86.7) (113.9) (23.2) (529.0) 127.1 (912.1)
Loss on Offshore Wind - - - - (284.0) - (284.0)
Interest Income 75.1 18.8 0.3 - 127.2 (127.2) 94.2
Other Income, Net 113.6 22.4 25.6 3.3 1,526.2 (1,511.8) 179.3
Income Tax (Expense)/Benefit (175.5) (78.6) (209.9) 2.9 382.3 - (78.8)
Net Income 575.0 236.9 595.2 36.8 1,344.7 (1,511.9) 1,276.7
Net Income Attributable to Noncontrolling Interests (3.4) - (2.2) - - - (5.6)
Net Income Attributable to Common Shareholders $ 571.6 $ 236.9 $ 593.0 $ 36.8 $ 1,344.7 $ (1,511.9) $ 1,271.1
Cash Flows Used for Investments in Plant $ 1,496.0 $ 589.1 $ 774.3 $ 118.2 $ 197.8 $ - $ 3,175.4
For the Three Months Ended September 30, 2024
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Operating Revenues $ 2,632.8 $ 217.2 $ 542.0 $ 67.1 $ 414.7 $ (810.6) $ 3,063.2
Depreciation and Amortization (420.8) (28.2) (102.0) (9.8) (52.1) 2.8 (610.1)
Operations and Maintenance (1)
Operations, Excluding Storm Costs (109.5) (49.3) (38.4)
Corporate Shared Services (115.9) (26.0) (19.2)
Storm Costs (22.1) - -
Employee Benefits (47.1) (19.4) (11.9)
Uncollectible Expense (59.2) (11.6) -
Other (23.0) (5.5) (19.9)
Total Operations and Maintenance (376.8) (111.8) (89.4) (24.4) (325.6) 417.6 (510.4)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)
(1,533.9) (104.6) (74.2) (6.8) (1.0) 390.2 (1,330.3)
Operating Income/(Loss) 301.3 (27.4) 276.4 26.1 36.0 - 612.4
Interest Expense (98.8) (25.2) (48.5) (8.3) (177.7) 57.9 (300.6)
Loss on Offshore Wind - - - - (464.0) - (464.0)
Interest Income 33.2 5.6 0.1 - 57.9 (57.9) 38.9
Other Income, Net 32.6 5.8 11.7 6.2 (9.1) 26.5 73.7
Income Tax (Expense)/Benefit (63.6) 11.0 (64.1) (0.3) 40.4 - (76.6)
Net Income/(Loss) 204.7 (30.2) 175.6 23.7 (516.5) 26.5 (116.2)
Net Income Attributable to Noncontrolling Interests (1.2) - (0.7) - - - (1.9)
Net Income/(Loss) Attributable to
Common Shareholders 		$ 203.5 $ (30.2) $ 174.9 $ 23.7 $ (516.5) $ 26.5 $ (118.1)
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For the Nine Months Ended September 30, 2024
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
Operating Revenues $ 6,860.8 $ 1,516.7 $ 1,583.9 $ 174.7 $ 1,253.6 $ (2,460.4) $ 8,929.3
Depreciation and Amortization (565.5) (161.4) (301.8) (21.2) (146.3) 8.1 (1,188.1)
Operations and Maintenance (1)
Operations, Excluding Storm Costs (331.1) (131.4) (105.8)
Corporate Shared Services (333.4) (79.1) (55.5)
Storm Costs (65.8) - -
Employee Benefits (132.6) (52.7) (34.4)
Uncollectible Expense (134.1) (34.1) -
Other (78.4) (16.6) (53.7)
Total Operations and Maintenance (1,075.4) (313.9) (249.4) (74.5) (986.4) 1,261.8 (1,437.8)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)
(4,453.9) (752.3) (203.2) (19.7) (3.9) 1,190.5 (4,242.5)
Operating Income 766.0 289.1 829.5 59.3 117.0 - 2,060.9
Interest Expense (272.2) (72.0) (135.4) (29.4) (484.8) 171.2 (822.6)
Loss on Offshore Wind - - - - (464.0) - (464.0)
Interest Income 89.5 16.2 0.2 0.1 171.2 (171.2) 106.0
Other Income, Net 99.7 16.3 37.9 8.4 973.8 (923.2) 212.9
Income Tax Expense (158.3) (62.2) (189.4) (1.3) 62.7 - (348.5)
Net Income 524.7 187.4 542.8 37.1 375.9 (923.2) 744.7
Net Income Attributable to Noncontrolling Interests (3.4) - (2.2) - - - (5.6)
Net Income Attributable to Common Shareholders $ 521.3 $ 187.4 $ 540.6 $ 37.1 $ 375.9 $ (923.2) $ 739.1
Cash Flows Used for Investments in Plant $ 1,309.1 $ 697.8 $ 985.6 $ 119.3 $ 180.1 $ - $ 3,291.9
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Costs of the operations organization include labor and overtime, outside services, vehicles, vegetation management, employee expenses, fees and payments, regulatory assessments, and materials, partially offset by reimbursements. Corporate shared services include corporate centralized functions. Costs within these corporate functions primarily include labor, services by vendors, fees and payments, insurance, and regulatory assessments. Other includes information technology system depreciation at Eversource Service charged to the operating businesses, as well as storm funding, capitalization and various other corporate costs. The segment-level operating expense for information technology system depreciation is eliminated and reflected in depreciation in Eversource's consolidation.
For the water distribution segment, the chief operating decision maker is provided with total operations and maintenance expense information to manage its operations. Operations and maintenance expenses primarily include employee costs, benefits, and outside services.
(2) Other segment line items for the electric distribution, electric transmission and natural gas distribution segments primarily include purchased power, purchased natural gas and transmission, taxes other than income taxes including property, payroll-related and Connecticut gross earnings taxes, and energy efficiency program expenses. Other segment line items for the water distribution business primarily include taxes other than income taxes.
The following table summarizes Eversource's segmented total assets:
Eversource
(Millions of Dollars)
Electric
Distribution 		Natural Gas
Distribution 		Electric
Transmission 		Water Distribution Other Eliminations Total
As of September 30, 2025 $ 33,292.0 $ 10,275.8 $ 16,729.3 $ 2,611.7 $ 28,888.7 $ (30,094.9) $ 61,702.6
As of December 31, 2024 32,031.9 9,786.7 16,070.9 2,515.8 29,041.1 (29,851.9) 59,594.5
18. ASSETS HELD FOR SALE
On January 27, 2025, Eversource entered into a definitive agreement to sell the Aquarion water distribution business. Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion in cash, which includes approximately $1.6 billion for the equity and $800 million of net debt that will be extinguished at closing. The sale is subject to approval by PURA, DPU and the NHPUC, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act, for which the relevant waiting period has expired, as well as other customary closing conditions. The sale is expected to close in late 2025. Eversource plans to use the net proceeds from the pending sale to pay down Eversource parent debt.
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The assets and liabilities of the Aquarion water distribution business met the criteria to be classified as held for sale and have been classified separately as current or long-term assets and liabilities held for sale on the Eversource balance sheets as of September 30, 2025 and December 31, 2024. As Eversource concluded this is the sale of a business, all goodwill held by the water distribution reporting unit was included in the carrying amount of the business and is also classified within assets held for sale. Long-term debt will be repaid by Eversource upon closing and is therefore excluded from liabilities held for sale. Assets and liabilities classified as held for sale are measured at the lower of carrying amount or fair value less costs to sell. The water distribution business did not and will not meet the criteria to be presented as a discontinued operation. Closing of the transaction will include the finalization of working capital and other closing adjustments as well as final closing costs, which could result in a loss recorded at the time of sale.
The major classes of Aquarion's assets and liabilities presented in current and long-term Assets Held for Sale and Liabilities Held for Sale on the Eversource balance sheets, which are included in the Water Distribution reportable segment, were as follows:
(Millions of Dollars)
As of September 30, 2025 As of December 31, 2024
Restricted Cash $ 5.9 $ 5.8
Receivables, Net 20.7 14.4
Unbilled Revenues 14.8 11.5
Prepayments and Other Current Assets 27.1 24.6
Total Current Assets Held for Sale $ 68.5 $ 56.3
Property, Plant and Equipment, Net $ 1,968.6 $ 1,885.2
Regulatory Assets 43.2 51.2
Goodwill 662.4 662.5
Other Long-Term Assets 17.2 12.2
Total Long-Term Assets Held for Sale $ 2,691.4 $ 2,611.1
Accounts Payable $ 22.1 $ 24.2
Other Current Liabilities 35.3 28.4
Total Current Liabilities Held for Sale $ 57.4 $ 52.6
Regulatory Liabilities $ 127.0 $ 132.2
Other Long-Term Liabilities 278.6 266.7
Total Long-Term Liabilities Held for Sale $ 405.6 $ 398.9
For the three months ended September 30, 2025 and 2024, pre-tax income associated with the held for sale water distribution business was $18.4 million and $24.0 million, respectively. For the nine months ended September 30, 2025 and 2024, pre-tax income associated with the held for sale water distribution business was $33.9 million and $38.4 million, respectively.
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EVERSOURCE ENERGY AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, the combined Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, as well as the Eversource 2024 combined Annual Report on Form 10-K. References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."
Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations.
The only common equity securities that are publicly traded are common shares of Eversource. Our third quarter and first nine months of 2025 and 2024 earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our earnings and EPS excluding losses associated with our previous offshore wind investments. EPS by business is also a non-GAAP financial measure and is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in our assets and liabilities as a whole. Full year 2024 earnings discussion includes a non-GAAP financial measure referencing earnings and EPS excluding a loss on the pending sale of the Aquarion water distribution business of $298.3 million and the aggregate loss on the sale of our offshore wind investments.
We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our results without including these items. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the impacts of the losses on our previous offshore wind investments and the loss on the pending sale of the Aquarion water distribution business are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance. We do not provide guidance for Net Income Attributable to Common Shareholders or recurring EPS or a reconciliation of guidance for non-GAAP recurring earnings or non-GAAP recurring EPS to the most directly comparable GAAP measure because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our Net Income Attributable to Common Shareholders or recurring EPS for the year ending December 31, 2025. These items are uncertain, depend on many factors and could have a material impact on our Net Income Attributable to Common Shareholders and recurring EPS for the year ending December 31, 2025, and therefore cannot be made available without unreasonable effort.
We make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of U.S. federal securities laws. You can generally identify our forward-looking statements through the use of words or phrases such as "estimate," "expect," "pending," "anticipate," "intend," "plan," "project," "believe," "forecast," "would," "should," "could," and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in our forward-looking statements. Forward-looking statements are based on the current expectations, estimates, assumptions or projections of management and are not guarantees of future performance. These expectations, estimates, assumptions or projections may vary materially from actual results. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to:
• cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers,
• the ability to qualify for investment tax credits and investment tax credit adders,
• variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects as it relates to the purchase price post-closing adjustment under the terms of the sale agreement for these projects,
• disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly,
• changes in economic conditions, including impact on interest rates, tax policies, tariffs, and customer demand and payment ability,
• ability or inability to commence and complete our major strategic development projects and opportunities,
• acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems,
• actions or inaction of local, state and federal regulatory, public policy and taxing bodies,
• substandard performance of third-party suppliers and service providers,
• fluctuations in weather patterns, including extreme weather due to climate change,
• changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model,
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• contamination of, or disruption in, our water supplies,
• changes in levels or timing of capital expenditures,
• changes in laws, regulations, Presidential executive orders or regulatory policy, including compliance with environmental laws and regulations,
• changes in accounting standards and financial reporting regulations,
• actions of rating agencies, and
• other presently unknown or unforeseen factors.
Other risk factors are detailed in our reports filed with the SEC and are updated as necessary and available on our website at www.eversource.com and on the SEC's website at www.sec.gov, and we encourage you to consult such disclosures.
All such factors are difficult to predict and contain uncertainties that may materially affect our actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's 2024 combined Annual Report on Form 10-K. This combined Quarterly Report on Form 10-Q and Eversource's 2024 combined Annual Report on Form 10-K also describe material contingencies and critical accounting policies in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Combined Notes to Financial Statements. We encourage you to review these items.
Financial Condition and Business Analysis
Executive Summary
Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and EGMA (natural gas utilities) and Aquarion (water utilities). Eversource is organized into the electric distribution, electric transmission, natural gas distribution, and water distribution reportable segments.
The following items in this executive summary are explained in more detail in this combined Quarterly Report on Form 10-Q:
Earnings Overview and Future Outlook:
•We earned $367.5 million, or $0.99 per share, in the third quarter of 2025, compared with a loss of $118.1 million, or $0.33 per share, in the third quarter of 2024. We earned $1.27 billion, or $3.44 per share, in the first nine months of 2025, compared with $739.1 million, or $2.08 per share, in the first nine months of 2024.
•Our 2025 results include an aggregate net after-tax charge resulting from our previous offshore wind investments of $75.0 million, or $0.20 per share. Our 2024 results include an after-tax loss on the sale of our offshore wind investments of $524.0 million, or $1.48 per share for the nine month period. These 2025 and 2024 charges were recorded within Eversource Parent and Other Companies. Excluding these charges, our 2025 non-GAAP earnings were $442.5 million, or $1.19 per share, in the third quarter of 2025 and $1.35 billion, or $3.64 per share, in the first nine months of 2025, and our 2024 non-GAAP earnings were $405.9 million, or $1.13 per share, in the third quarter of 2024 and $1.26 billion, or $3.56 per share, in the first nine months of 2024.
•We narrowed our projection to earn within a 2025 non-GAAP earnings guidance range of between $4.72 per share and $4.80 per share excluding the impact of the net charge resulting from our previous offshore wind investments, compared to the previous guidance range of $4.67 per share to $4.82 per share. We also reaffirmed our projection that our expected long-term EPS growth rate through 2029 will be in a 5 to 7 percent range, using 2024 non-GAAP EPS of $4.57 per share as the base year.
Liquidity:
•Cash flows provided by operating activities totaled $3.20 billion in the first nine months of 2025, compared with $1.52 billion in the first nine months of 2024. Investments in property, plant and equipment totaled $3.18 billion in the first nine months of 2025, compared with $3.29 billion in the first nine months of 2024.
•Cash and Cash Equivalents totaled $259.3 million as of September 30, 2025, compared with $26.7 million as of December 31, 2024. Our available borrowing capacity under our commercial paper programs totaled $1.13 billion as of September 30, 2025.
•In the first nine months of 2025, we issued $2.04 billion of new long-term debt and we repaid $750 million of long-term debt.
•On September 11, 2025, our Board of Trustees approved a common share dividend payment of $0.7525 per share, paid on September 30, 2025 to shareholders of record as of September 22, 2025.
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•On May 30, 2025, we entered into an equity distribution agreement pursuant to which we may offer and sell up to $1.2 billion of our common shares from time to time through an ATM equity offering program. In the first nine months of 2025, we issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs.
Regulatory Developments:
•On November 5, 2025, PURA issued a final decision in the Yankee Gas distribution rate case that included a distribution rate increase of $95.7 million ($82.2 million including a previously recorded non-firm margin rate credit), effective November 1, 2025. The final decision also established an authorized net regulatory ROE of 9.32 percent and a 53 percent common equity ratio for Yankee Gas' capital structure.
•On July 25, 2025, the NHPUC issued its decision in the PSNH distribution rate case and approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase that went into effect in August 2024. The order established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH's capital structure. The NHPUC approved an alternative regulatory framework that authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028. PSNH is required to file its next base distribution rate case for effect in June 2029 and committed not to file its next distribution rate case until 2029. The alternative regulatory framework calculates the annual revenue adjustment using a productivity factor and an adjustment for inflation to provide PSNH with increased revenue for operations, and also contains an exogenous events recovery mechanism, a performance metric, and an earnings sharing mechanism.
Earnings Overview
Consolidated: Below is a summary of our earnings/(loss) by business, which also reconciles the non-GAAP financial measures of consolidated non-GAAP earnings and EPS, as well as EPS by business, to the most directly comparable GAAP measures of consolidated Net Income/(Loss) Attributable to Common Shareholders and diluted EPS.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2025 2024 2025 2024
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share Amount Per Share
Net Income/(Loss) Attributable to Common
Shareholders (GAAP) 		$ 367.5 $ 0.99 $ (118.1) $ (0.33) $ 1,271.1 $ 3.44 $ 739.1 $ 2.08
Regulated Companies $ 409.2 $ 1.10 $ 371.9 $ 1.04 $ 1,438.3 $ 3.89 $ 1,286.4 $ 3.62
Eversource Parent and Other Companies (Non-GAAP) 33.3 0.09 34.0 0.09 (92.2) (0.25) (23.3) (0.06)
Non-GAAP Earnings $ 442.5 $ 1.19 $ 405.9 $ 1.13 $ 1,346.1 $ 3.64 $ 1,263.1 $ 3.56
Losses on Offshore Wind (after-tax) (1)
(75.0) (0.20) (524.0) (1.46) (75.0) (0.20) (524.0) (1.48)
Net Income/(Loss) Attributable to Common
Shareholders (GAAP) 		$ 367.5 $ 0.99 $ (118.1) $ (0.33) $ 1,271.1 $ 3.44 $ 739.1 $ 2.08
(1) In the third quarter of 2025, we recorded a pre-tax charge of $284 million associated with increasing our offshore wind contingent liability for expected future payments under the terms of the 2024 sale agreement with GIP for the South Fork Wind and Revolution Wind projects, offset by expected tax benefits from the offshore wind sale of $209 million. In the third quarter of 2024, we recorded a pre-tax loss on the sales of our offshore wind investments of $464.0 million and a $60 million increase in income tax expense, resulting in an after-tax loss of $524.0 million. For further information, see the "Offshore Wind Contingent Liability" section below included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
The impact of higher shares outstanding resulted in $0.03 earnings per share dilution in the third quarter of 2025 and $0.14 earnings per share dilution in the first nine months of 2025, as compared to the third quarter of 2024 and the first nine months of 2024, respectively.
Regulated Companies: Our regulated companies comprise the electric distribution, electric transmission, natural gas distribution, and water distribution segments. A summary of our segment earnings/(loss) and EPS is as follows:
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2025 2024 2025 2024
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share Amount Per Share
Electric Distribution $ 221.6 $ 0.60 $ 203.5 $ 0.57 $ 571.6 $ 1.55 $ 521.3 $ 1.47
Electric Transmission 185.5 0.50 174.9 0.49 593.0 1.60 540.6 1.52
Natural Gas Distribution (16.8) (0.05) (30.2) (0.09) 236.9 0.64 187.4 0.53
Water Distribution 18.9 0.05 23.7 0.07 36.8 0.10 37.1 0.10
Net Income - Regulated Companies $ 409.2 $ 1.10 $ 371.9 $ 1.04 $ 1,438.3 $ 3.89 $ 1,286.4 $ 3.62
Our electric distribution segment earnings increased $18.1 million and $50.3 million in the third quarter and the first nine months of 2025, respectively, as compared to the third quarter and first nine months of 2024, due primarily to higher revenues from base distribution rate increases at PSNH effective August 1, 2024 and August 1, 2025 and at NSTAR Electric effective January 1, 2025 and from CL&P's capital tracking mechanism due to increased electric system improvements. Earnings also benefited from the impact of the PSNH rate case decision in July 2025.
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Those earnings increases were partially offset by higher property tax expense, higher interest expense, higher depreciation expense, lower net interest income on regulatory deferrals, and higher operations and maintenance expense.
Our electric transmission segment earnings increased $10.6 million and $52.4 million in the third quarter and the first nine months of 2025, respectively, as compared to the third quarter and the first nine months of 2024, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. Earnings in the nine month period also benefited from lower interest expense.
Our natural gas distribution segment losses decreased $13.4 million and earnings increased $49.5 million in the third quarter and the first nine months of 2025, respectively, as compared to the third quarter and the first nine months of 2024, due primarily to higher revenues from base distribution rate increases effective November 1, 2024 at EGMA and at NSTAR Gas and from capital tracking mechanisms due to continued investments in natural gas infrastructure. Those earnings increases were partially offset by higher interest expense, higher depreciation expense, and higher property tax expense. The earnings increase in the nine month period was also unfavorably impacted by higher operations and maintenance expense.
Our water distribution segment earnings decreased $4.8 million and $0.3 million in the third quarter and the first nine months of 2025, respectively, as compared to the third quarter and the first nine months of 2024. The earnings decrease in the three month period was due primarily to higher operations and maintenance expense and higher depreciation expense.
Eversource Parent and Other Companies: Eversource parent and other companies' losses decreased by $448.3 million and $380.1 million in the third quarter and the first nine months of 2025, respectively, as compared to the third quarter and the first nine months of 2024, due primarily to an after-tax charge of $524.0 million recorded in the third quarter of 2024 resulting from the sale of Eversource parent's offshore wind investments, as compared to an aggregate net after-tax charge of $75.0 million recorded in the third quarter of 2025 resulting from an increase to the offshore wind contingent liability, net of tax benefits associated with the tax losses on the sales of its offshore wind investments.
Excluding these charges, Eversource parent and other companies earnings decreased by $0.7 million and losses increased by $68.9 million in the third quarter and the first nine months of 2025, respectively, due primarily to higher interest expense due to the absence in 2025 of capitalized interest as a result of the sale of our offshore wind projects in the third quarter of 2024 and higher interest costs from short-term debt, partially offset by a lower effective rate resulting from the recognition of state tax benefits and certain tax credits as a result of the 2024 tax return to provision process in the third quarter of 2025.
Offshore Wind Contingent Liability: Eversource recorded a contingent liability relating to expected future payments to GIP as part of the September 30, 2024 sale of the South Fork Wind and Revolution Wind projects. As part of the definitive agreement with GIP, Eversource is responsible for certain post-closing purchase price adjustments. This obligation included an expected cost overrun sharing obligation, an expected obligation to maintain GIP's internal rate of return, and an obligation for other future costs.
In the third quarter of 2025, Eversource received an updated report from GIP on the construction status of Revolution Wind, which included revised projections of total construction costs. The revised cost projections reflected known and quantifiable cost increases, including those associated with the impacts of damage to the wind turbine installation vessel, insurance costs, tariff impacts, and costs incurred as a result of the stop-work order for Revolution Wind received on August 22, 2025 from the Bureau of Ocean Energy Management that halted all offshore wind construction activities through September 22, 2025. Based on these developments and information currently available, in the third quarter of 2025 Eversource recognized a pre-tax charge of $284 million as a result of the aggregate impact of these items, to increase the liability for purchase price adjustments associated with the offshore wind projects. As of September 30, 2025 and December 31, 2024, the contingent liability totaled $507.7 million and $365 million, respectively.
Eversource relies on information that it receives from the project owners for both the final completed cost of South Fork Wind and construction-related costs of Revolution Wind. Eversource uses its judgment to adjust, as needed, its expected obligations to GIP while construction of Revolution Wind is completed, which continues to be expected in the second half of 2026.
New information or future developments that arise as the construction of Revolution Wind progresses will necessitate a reassessment of the estimated liability related to the obligations to GIP. The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted.
It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, it could result in additional losses and increases to the offshore wind contingent liability, which could be material. The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.
Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events. Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the extent of construction delays, which would impact the economics associated with the purchase price adjustment, and the eligibility for federal investment tax credits for Revolution Wind at a lower value than assumed and included in the purchase price. The purchase price of Revolution Wind included the sales value related to a 40 percent level of federal investment tax credits. A change in the expected value or qualification of investment tax credit adders could result in a significant loss in a future period.
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As a result of the increase to the offshore wind contingent liability, Eversource recognized an aggregate, net after-tax charge of $75.0 million, or $0.20 per share, in the third quarter of 2025. This charge consists of the pre-tax $284 million increase to the offshore wind contingent liability, offset by $209 million of tax benefits associated with tax losses on the sale of the South Fork Wind and Revolution Wind projects that Eversource expects to realize.
2024 Loss Recorded Upon Sale of Offshore Wind Investments: The three and nine months ended September 30, 2024 statements of income include a loss resulting from the sale of Eversource's offshore wind investments. On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted. On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP. Upon the completion of both of these sale transactions, the total proceeds were compared to the carrying value of the investments, including an estimate of liability for post-closing adjustment payments to GIP, and Eversource recognized an aggregate after-tax loss on the sale of its offshore wind investments of $524 million, which included a net $60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses, in the third quarter of 2024.
Liquidity
Sources and Uses of Cash:Eversource's regulated business is capital intensive and requires considerable capital resources. Eversource's regulated companies' capital resources are provided by cash flows generated from operations, short-term borrowings, long-term debt issuances, capital contributions from Eversource parent, and existing cash, and are used to fund their liquidity and capital requirements. Eversource's regulated companies typically maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements. Short-term borrowings are also used as a bridge to long-term debt financings. The levels of short-term borrowing may vary significantly over the course of the year due to the impact of fluctuations in cash flows from operations (including timing of storm costs and regulatory recoveries), dividends paid, capital contributions received and the timing of long-term debt financings.
Eversource, CL&P, NSTAR Electric and PSNH each uses its available capital resources to fund its respective construction expenditures, meet debt requirements, pay operating costs, including storm-related costs, pay dividends, and fund corporate obligations. Eversource's regulated companies recover their electric, natural gas and water distribution construction expenditures as the related project costs are depreciated over the life of the assets. This impacts the timing of the revenue stream designed to fully recover the total investment including a return on the equity and debt used to finance the investments. Eversource's regulated companies spend a significant amount of cash on capital improvements and construction projects that have a long-term return on investment and recovery period.
We expect the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with our existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.
Eversource is currently in the process of selling its Aquarion water distribution business. For information regarding the pending sale and expected use of proceeds, see "Business Development and Capital Expenditures - Pending Sale of Aquarion" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
Cash and cash equivalents totaled $259.3 million as of September 30, 2025, compared with $26.7 million as of December 31, 2024.
Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2025, the revolving credit facility's termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.
NSTAR Electric has a $650.0 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650.0 million revolving credit facility. Effective October 11, 2025, the revolving credit facility's termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop NSTAR Electric's $650.0 million commercial paper program.
The amount of borrowings outstanding and available under the commercial paper programs were as follows:
Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 1,038.5 $ 1,538.0 $ 961.5 $ 462.0 4.50 % 4.76 %
NSTAR Electric Commercial Paper Program 479.0 504.8 171.0 145.2 4.30 % 4.55 %
There were no borrowings outstanding on the revolving credit facilities as of September 30, 2025 and December 31, 2024.
CL&P and PSNH have uncommitted line of credit agreements totaling $375 million and $250 million, respectively, all of which will expire in either May 2026, September 2026 or October 2026. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, 2025 and December 31, 2024.
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Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time.
Intercompany Borrowings:Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of September 30, 2025 and December 31, 2024, there were intercompany loans from Eversource parent to PSNH of $8.1 million and $131.1 million, respectively. As of December 31, 2024, there were intercompany loans from Eversource parent to CL&P of $280.0 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Long-Term Debt Issuance Authorizations: On March 26, 2025, PURA approved Yankee Gas' request for authorization to issue up to $360.0 million in long-term debt through December 31, 2026. On May 27, 2025, the NHPUC approved PSNH's request for authorization to issue up to $300.0 million in long-term debt through December 31, 2025.
Long-Term Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments:
(Millions of Dollars) Interest Rate Issuance/(Repayment) Issue Date or Repayment Date Maturity Date Use of Proceeds for Issuance/
Repayment Information
CL&P Series A First Mortgage Bonds 4.95 % $ 400.0 January 2025 January 2030 Repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures 4.85 % 400.0 February 2025 March 2030
Repay 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures 5.20 % 400.0 February 2025 March 2035
Repay 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures 5.20 % 300.0 October 2025 March 2035 Repaid short-term debt, paid capital expenditures and working capital
PSNH Series Y First Mortgage Bonds 4.40 % 300.0 June 2025 July 2028 Repaid short-term debt, paid capital expenditures and working capital
Eversource Parent Series HH Senior Notes 4.45 % 600.0 October 2025 December 2030 Repay Series J bonds at maturity and repaid short-term debt
Eversource Parent Series H Senior Notes 3.15 % (300.0) January 2025 January 2025 Paid at maturity
Eversource Parent Series Q Senior Notes 0.80 % (300.0) August 2025 August 2025 Paid at maturity
NSTAR Gas Series Y First Mortgage Bonds 4.86 % 205.0 June 2025 June 2030 Repaid short-term debt, paid capital expenditures and working capital
NSTAR Gas Series Z First Mortgage Bonds 5.30 % 20.0 June 2025 June 2035 Repaid short-term debt, paid capital expenditures and working capital
NSTAR Gas Series R First Mortgage Bonds 2.33 % (75.0) May 2025 May 2025 Paid at maturity
Yankee Gas Series Y First Mortgage Bonds 5.02 % 148.0 July 2025 January 2031 Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital
Yankee Gas Series Z First Mortgage Bonds 5.55 % 37.0 July 2025 July 2035 Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital
Yankee Gas Series M First Mortgage Bonds 3.35 % (75.0) September 2025 September 2025 Paid at maturity
EGMA Series F First Mortgage Bonds 4.77 % 125.0 September 2025 October 2030 Repaid short-term debt, paid capital expenditures and working capital
As a result of the Eversource parent long-term debt issuance in October 2025, $595.0 million of current portion of long-term debt was reclassified to Long-Term Debt on Eversource parent's balance sheet as of September 30, 2025. As a result of the NSTAR Electric long-term debt issuance in October 2025, $305.4 million of current portion of long-term debt was reclassified to Long-Term Debt on NSTAR Electric's balance sheet as of September 30, 2025.
Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $43.2 million of RRB principal payments and $13.4 million of interest payments in the first nine months of 2025, and paid $43.2 million of RRB principal payments and $14.9 million of interest payments in the first nine months of 2024.
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Common Share Issuances and Equity Distribution Agreement: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an ATM equity offering program. In the first nine months of 2025, we issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas and water. Cash flows provided by operating activities totaled $3.20 billion in the first nine months of 2025, compared with $1.52 billion in the first nine months of 2024. Operating cash flows were favorably impacted by an improvement in regulatory recoveries driven primarily by the timing of collections for CL&P's non-bypassable FMCC, CL&P's SBC, and other regulatory tracking mechanisms. The CL&P non-bypassable FMCC retail rates in effect for the 2025 period were higher than those set in the prior period and the net Millstone and Seabrook contract cash flows were higher in 2025 as compared to 2024. These higher collections within the non-bypassable FMCC resulted in an improvement to operating cash flows of $451.5 million for the nine month period. Higher collections from CL&P's SBC mechanism resulted in a cash flow improvement of $136.8 million. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization on the statements of cash flows. Additionally, CL&P received general obligation bond proceeds from the State of Connecticut for the reimbursement of hardship costs and for electric vehicle charging program costs of $107.8 million in the third quarter of 2025, which are reflected in Regulatory Recoveries. Operating cash flows were also favorably impacted by a decrease of $262.2 million in cash payments to vendors for storm costs, the timing of cash collections on our accounts receivable, and the timing of cash payments made on our accounts payable. These favorable impacts were partially offset by a decrease of $21.5 million in income tax refunds received in 2025 compared to 2024 and the timing of other working capital items.
On September 11, 2025, our Board of Trustees approved a common share dividend payment of $0.7525 per share, paid on September 30, 2025 to shareholders of record as of September 22, 2025. In the first nine months of 2025, we paid cash dividends of $816.4 million and issued non-cash dividends of $17.7 million in the form of treasury shares, totaling dividends of $834.1 million. In the first nine months of 2024, we paid cash dividends of $745.2 million and issued non-cash dividends of $17.8 million in the form of treasury shares, totaling dividends of $763.0 million.
Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan.
In the first nine months of 2025, CL&P, NSTAR Electric and PSNH paid $430.0 million, $436.0 million and $175.0 million, respectively, in common stock dividends to Eversource parent.
Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense. In the first nine months of 2025, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $3.18 billion, $657.4 million, $1.21 billion, and $402.8 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.
Payments made in 2025 related to Eversource's offshore wind contingent obligation, which include a purchase price adjustment payment related to the South Fork Wind project, are reflected in investing activities on the statement of cash flows.
Contractual Obligations: Our cash requirements from contractual obligations were reported in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource 2024 Form 10-K. There have been no material changes to our cash requirements from contractual obligations and payment schedules previously disclosed in our 2024 Form 10-K.
Credit Ratings: On September 15, 2025, Fitch revised the outlook from stable to watch negative for Eversource parent, CL&P, NSTAR Electric and PSNH due to the stop-work order for the Revolution Wind project.
Business Development and Capital Expenditures
Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP income/expense (all of which are non-cash factors), totaled $3.34 billion in the first nine months of 2025, compared to $3.40 billion in the first nine months of 2024. These amounts included $171.8 millionand $209.4 million in the first nine months of 2025 and 2024, respectively, related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company.
Electric Transmission Business: Our consolidated electric transmission business capital expenditures decreased by $189.7 million in the first nine months of 2025, as compared to the first nine months of 2024. A summary of electric transmission capital expenditures by company is as follows:
For the Nine Months Ended September 30,
(Millions of Dollars) 2025 2024
CL&P $ 255.3 $ 351.4
NSTAR Electric 342.7 366.9
PSNH 210.6 280.0
Total Electric Transmission $ 808.6 $ 998.3
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Our transmission projects are designed to improve the reliability of the electric grid, meet customer demand for power, and strengthen the electric grid's resilience against extreme weather and other safety and security threats. In Connecticut, Massachusetts and New Hampshire, our transmission projects include transmission line upgrades, the installation of new transmission interconnection facilities, substations and lines, and transmission substation enhancements.
Greater Cambridge Energy Program:The Greater Cambridge Energy Program will construct Eversource's first underground transmission substation in Cambridge, Massachusetts, along with associated transmission and distribution lines. The project will address the increased electric demand in the region, enhance the resiliency of the transmission system, and ensure a flexible grid to reliably serve customers. The flexibility to transmit and distribute mixed energy sources will support the decarbonization and electrification goals of both the City of Cambridge and the state of Massachusetts. The new 115/13.8-kV, 35,000 square foot substation will be located in an underground vault and includes three distribution power transformers supplying thirty-six distribution circuits. The project also includes five underground duct banks housing eight new 115-kV transmission lines. The Massachusetts Energy Facilities Siting Board approved the project on June 28, 2024. Additional required environmental permits are expected to be approved by the end of 2025, as well as a license from the MA DEP expected to be approved by the end of the second quarter of 2026. The initial in-service date for the project is June 2029, which includes two 115-kV transmission lines and the transmission portion of the substation. The first distribution circuits and substation distribution will be placed in-service by the end of 2029. The remaining transmission and distribution circuits will be placed in-service throughout 2030 and into 2031. The total estimated project cost is approximately $1.84 billion, with $1.38 billion allocated for transmission and $460 million for distribution. As of September 30, 2025, $159.1 million has been spent on the project, with $120.0 million for transmission and $39.1 million for distribution.
Distribution Business: A summary of distribution capital expenditures is as follows:
For the Nine Months Ended September 30,
(Millions of Dollars) CL&P NSTAR Electric PSNH Total Electric Natural Gas Water Total
2025
Basic Business $ 241.8 $ 418.8 $ 97.2 $ 757.8 $ 141.1 $ 14.8 $ 913.7
Aging Infrastructure 109.1 293.7 66.7 469.5 537.4 104.2 1,111.1
Load Growth and Other 82.6 172.4 46.5 301.5 36.1 0.6 338.2
Total Distribution $ 433.5 $ 884.9 $ 210.4 $ 1,528.8 $ 714.6 $ 119.6 $ 2,363.0
2024
Basic Business $ 202.4 $ 346.6 $ 91.9 $ 640.9 $ 171.8 $ 16.4 $ 829.1
Aging Infrastructure 129.8 232.3 43.3 405.4 534.8 103.9 1,044.1
Load Growth and Other 81.9 157.0 39.4 278.3 38.2 0.6 317.1
Total Distribution $ 414.1 $ 735.9 $ 174.6 $ 1,324.6 $ 744.8 $ 120.9 $ 2,190.3
For the electric distribution business, basic business includes the purchase of meters, tools, vehicles, information technology, transformer replacements, equipment facilities, and the relocation of plant. Aging infrastructure relates to reliability and the replacement of overhead lines, plant substations, underground cable replacement, and equipment failures. Load growth and other includes requests for new business and capacity additions on distribution lines and substation additions and expansions.
For the natural gas distribution business, basic business addresses daily operational needs including meters, pipe relocations due to public works projects, vehicles, and tools. Aging infrastructure projects seek to improve the reliability of the system through enhancements related to cast iron and bare steel replacement of main and services, corrosion mediation, and station upgrades. Load growth and other reflects growth in existing service territories including new developments, installation of services, and expansion.
For the water distribution business, basic business addresses daily operational needs including periodic meter replacement, water main relocation, facility maintenance, and tools. Aging infrastructure relates to reliability and the replacement of water mains, regulators, storage tanks, pumping stations, wellfields, reservoirs, and treatment facilities. Load growth and other reflects growth in our service territory, including improvements of acquisitions, installation of new services, and interconnections of systems.
Pending Sale of Aquarion:On January 27, 2025, Eversource entered into a definitive agreement to sell the Aquarion water distribution business. Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion in cash, which includes approximately $1.6 billion for the equity and $800 million of net debt that will be extinguished at closing. The sale is subject to approval by PURA, DPU and the NHPUC, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act, for which the relevant waiting period has expired, as well as other customary closing conditions. The sale is expected to close in late 2025. Eversource plans to use the net proceeds from the pending sale to pay down Eversource parent debt.
The assets and liabilities of the Aquarion water distribution business met the criteria to be classified as held for sale and have been classified separately as current or long-term assets and liabilities held for sale on the Eversource balance sheets as of September 30, 2025 and December 31, 2024. Closing of the transaction will include the finalization of working capital and other closing adjustments as well as final closing costs, which could result in a loss recorded at the time of sale. For further information, see Note 18, "Assets Held for Sale."
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FERC Regulatory Matters
FERC ROE Complaints:Four separate complaints were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive (incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.
The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, FERC issued Opinion No. 531-A and set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the Court).
All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of both September 30, 2025 and December 31, 2024. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of both September 30, 2025 and December 31, 2024.
On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.
The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.
If the results of the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods. These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.
On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the NETOs' cases. On May 21, 2020, the FERC issued its order in Opinion No. 569-A on the rehearing of the MISO transmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order to determine the NETOs' base ROEs in their four pending cases. FERC Opinion Nos. 569-A and 569-B were appealed to the Court. On August 9, 2022, the Court issued its decision vacating MISO ROE FERC Opinion Nos. 569, 569-A and 569-B and remanded to FERC to reopen the proceedings. The Court found that FERC's development of the new return methodology was arbitrary and capricious due to FERC's failure to offer a reasonable explanation for its decision to reintroduce the risk-premium financial model in its new methodology for calculating a just and reasonable return.
On October 17, 2024, FERC issued an order on the remand of the MISO ROE proceedings. The order addressed the Court's decision that the reintroduction of the risk-premium financial model in the ROE methodology was arbitrary and capricious by removing the risk-premium financial model from the ROE methodology. The removal of the risk-premium financial model was the only revision to FERC's ROE methodology and resulted in a two-model approach utilizing the two-step discounted cash flow model and the capital asset pricing model. MISO transmission owners were directed to provide refunds for the period November 12, 2013 to February 11, 2015 (the first MISO ROE complaint refund period) and for the period from September 28, 2016 (the date of FERC's order on the first MISO ROE complaint) to October 17, 2024 by December 1, 2025. The order also stated that FERC does not preclude the use of the risk-premium financial model in future proceedings if the parties can demonstrate that FERC's stated concerns around the inclusion of the model have been addressed. On March 25, 2025, FERC issued an order addressing arguments raised on rehearing, sustaining the result, and denying rehearing.
On November 13, 2024, the NETOs filed a supplemental brief in their four pending ROE proceedings to explain to FERC that it cannot apply the reasoning and methodologies of the MISO ROE case to the NETOs' cases due to the entirely different set of facts in the MISO and NETOs ROE proceedings. Doing so would violate the substance of the Court's April 14, 2017 order and would violate the legal standard required by the Federal Power Act.
On February 4, 2025, the MISO transmission owners submitted a petition for review with the Court requesting review of the October 17, 2024 MISO ROE order on remand and a December 19, 2024 notice of denial of rehearing. The petition requests review of FERC's decision to retroactively backdate the MISO transmission owners' base ROE to the date of an earlier order that FERC abandoned when it issued Order No. 569, treat an underlying unlawful complaint as if it were legitimate, and order eight years of interest as part of the directed refunds. On August 21,
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2025, the NETOs submitted a brief in support of the MISO transmission owners with the Court. Final briefs in the Court proceeding are due January 26, 2026.
Given the significant uncertainty regarding the applicability of the FERC order in the MISO transmission owners' two complaint cases to the NETOs' pending four complaint cases due to the complex differences between the cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaints or subsequent periods at this time and Eversource cannot reasonably estimate any potential range of loss for any of the four complaint proceedings at this time. The resolution of these proceedings could have a material impact on the financial condition, results of operations and cash flows.
Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.
A change of 10 basis points to the base ROE used to establish the reserves would impact Eversource's after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods. Prospectively from the date of a final FERC order implementing a new base ROE, based off of estimated 2025 rate base, a change of 10 basis points to the base ROE would impact Eversource's future annual after-tax earnings by approximately $7 million per year, and will increase slightly over time as we continue to invest in our transmission infrastructure.
Transmission Rates and Other Transmission Rates-Related Proceedings: CL&P, NSTAR Electric and PSNH transmission rates are calculated in accordance with a FERC-approved formula ratemaking framework, and each utility is required to file an annual update on or before July 31st with resulting rates effective January 1st the following year. The formula rate framework provides for an annual reconciliation of the prior calendar year actual costs incurred related to our transmission facilities, including an allowed ROE, plus forecasted information through the next rate period. The annual update process includes formula rate protocols that provide disclosure of cost inputs, an opportunity for informal discovery procedures and a challenge process, which provides transparency to stakeholders.
From time to time, various matters are pending before FERC relating to transmission rates, incentives, interconnections and transmission planning. Depending on the outcome, any of these matters could materially impact our results of operations and financial condition. At this time, Eversource cannot predict the ultimate outcome of the matters currently pending before FERC, and the resulting impact on its transmission incentives or planning.
Regulatory Developments and Rate Matters
Electric, Natural Gas and Water Utility Base Distribution Rates: The regulated companies' distribution rates are set by their respective state regulatory commissions, and their tariffs include mechanisms for periodically adjusting their rates for the recovery of specific incurred costs. Other than as described below, for the first nine months of 2025, changes made to the regulated companies' rates did not have a material impact on their earnings. For further information, see "Financial Condition and Business Analysis - Regulatory Developments and Rate Matters" included in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource 2024 Form 10-K.
Connecticut:
CL&P Performance Based Rate Making:On May 26, 2021, in accordance with an October 2020 Connecticut law, PURA opened a proceeding to begin to evaluate and eventually implement performance-based regulation (PBR) for electric distribution companies. PURA is conducting the proceeding in two phases. On April 26, 2023, PURA issued a final decision on the first phase and identified various objectives to guide PBR development and evaluate adoption of a PBR framework. The decision commenced Phase 2 by initiating three reopener dockets focused on revenue adjustment mechanisms, performance metrics, and integrated distribution system planning.
On November 16, 2023, PURA issued a straw proposal in the first reopener that focused on revenue adjustment mechanisms. The proposal outlined potential additions and reforms to the current revenue adjustment mechanisms, such as multi-year rate plans, earnings sharing mechanisms and the revenue decoupling mechanism. On March 14, 2024, PURA issued a straw proposal in the second reopener docket that concentrated on performance mechanisms in a PBR framework. The proposal suggested the development of performance incentive mechanisms, reported metrics and scorecards. On February 27, 2025, PURA issued revised straw proposals for both the first and second reopener dockets, resulting in some edits to the previous proposals based on participant feedback. On April 4, 2025, PURA issued a straw proposal in the third reopener docket that focused on the establishment of integrated distribution system planning under a PBR framework.
On July 14, 2025, PURA issued proposed final decisions in the first two reopener dockets. The proposed final decision in the first reopener docket adopted a PBR framework inclusive of a multi-year rate plan with an attrition relief mechanism that uses a revenue-cap formula approach to adjust revenues based on a variety of factors including inflation, a productivity factor, a customer dividend percentage, an exogenous cost factor and a capital funding mechanism, as well as an earnings sharing mechanism and a revenue decoupling mechanism for implementation in CL&P's next distribution rate case. The multi-year rate plan has a stay out period of four years, but certain situations, such as deteriorating financial condition, exceeding authorized return, falling interest rates, or excess storm costs, could trigger the initiation of a new rate amendment proceeding during the multi-year rate plan. The proposed final decision in the second reopener docket established reporting parameters, including the commencement of scorecards and reported metrics and the development of company specific performance incentive mechanisms. Results of scorecards and reported metrics are proposed to be reported annually to PURA, beginning March 1, 2026. Company specific performance incentive mechanisms will be implemented in CL&P's next rate case proceeding.
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On August 8, 2025, PURA issued a proposed final decision in the third reopener docket, adopting the contents and reporting process for an integrated distribution system plan (IDSP) under a PBR framework. The IDSP report will document the grid planning process for available distribution system capacity and system needs, including the development, operation, and evolution of the electrical distribution grid. The IDSP report will include CL&P's planned investments over a four-year plan period and long-term capital investment strategy, and will be utilized by PURA in determining the amount of allowable capital additions within a multi-year rate plan included in the calculation of the capital funding mechanism adopted in the first reopener docket. The draft decision requires CL&P to submit a comprehensive IDSP filing every four years in alignment with the submittal of a rate amendment application and to also submit an annual IDSP filing to report on IDSP investments throughout the four-year period.
Final decisions on the three reopener dockets have not yet been scheduled. We continue to monitor developments in this proceeding, and at this time, we cannot predict the ultimate outcome of this proceeding and the resulting impact to CL&P.
CL&P Storm Filings: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, 2021. On December 31, 2024, CL&P filed a supplement to its March 2024 prudency review application to request that PURA evaluate the prudence of its costs for nine additional catastrophic storms and two additional pre-staging events for the period January 1, 2022 through January 31, 2023 totaling approximately $173 million. On July 10, 2025, CL&P filed a second supplement to its March 2024 prudency review application to request that PURA evaluate the prudence of its costs for ten additional catastrophic storms for the period February 1, 2023 through December 31, 2023 totaling approximately $171 million. On July 25, 2025, CL&P filed a third supplement in this application to include carrying charges calculated at the weighted average cost of capital on the deferred storm costs totaling $246 million, which reflects CL&P's actual financing costs on the unpaid storm costs from the date the deferred storm costs first began to accrue through May 2025. These carrying charges have not been deferred on the balance sheet. PURA's procedural schedule includes briefs due in the first quarter of 2026. Although we cannot predict the ultimate outcome of these storm proceedings, we continue to believe these deferred storm restoration costs were prudently incurred and are probable of recovery.
CL&P RAM Filing:On March 28, 2025, PURA issued an interim decision in CL&P's Rate Adjustment Mechanisms (RAM) filing and approved rates for six RAM components, with rates effective May 1, 2025 through April 30, 2026. The rates include recovery of over- or under-collection balances as of December 31, 2024, actual costs from the prior year, and adjustments to incorporate certain known and measurable cost changes not reflected in prior year costs that CL&P will incur in 2025. On August 13, 2025, PURA issued a final decision that approved a further adjustment to the Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) and System Benefits Charge (SBC) rates based on a July 1, 2025 Connecticut law that authorized the State of Connecticut to issue new general obligation bonds to reduce certain hardship costs and electric vehicle program costs recovered from customers. Proceeds from the general obligation bond funding of $107.8 million will be provided back to customers through a reduction to the NBFMCC and SBC rates. The updated NBFMCC and SBC rates are effective September 1, 2025 through April 30, 2026. These rates are included in the "Public Benefits" portion of the customer bills in Connecticut.
On September 19, 2025, CL&P received $107.8 million in general obligation bond proceeds from the State of Connecticut, which represent reimbursement of incurred costs that were previously recognized as regulatory assets on CL&P's balance sheets. The proceeds received for the reimbursement of hardship costs and for electric vehicle charging program costs were credited against the SBC and NBFMCC regulatory deferrals on CL&P's balance sheet as of September 30, 2025. The proceeds from the state bond funding are presented as a cash inflow in Regulatory Recoveries within operating activities on CL&P's statement of cash flows.
Yankee Gas Distribution Rate Case:On November 12, 2024, Yankee Gas filed an application with PURA to amend its existing distribution rates for effect on November 1, 2025. Yankee Gas had subsequently amended its rate application to request approval of a distribution rate increase of $193 million. On September 22, 2025, PURA issued a proposed final (draft) decision in Yankee Gas's distribution rate case that included a distribution rate increase of $55.6 million, effective November 1, 2025.
On November 5, 2025, PURA issued a final decision in the Yankee Gas distribution rate case that included a distribution rate increase of $82.2 million and a total distribution revenue requirement of $802.2 million, effective November 1, 2025. The approved revenue requirement includes a previously recorded rate credit of $37.4 million plus carrying charges for non-firm margin credits over three years beginning November 1, 2025. Excluding the rate credit, the distribution rate increase totaled $95.7 million. The final decision also established an authorized net regulatory ROE of 9.32 percent, adopting a 9.48 percent ROE net of certain reductions totaling 16 basis points, and a 53 percent common equity ratio for Yankee Gas' capital structure. PURA declined to approve the multi-year performance-based rate making plan that would adjust rates annually as proposed by Yankee Gas. PURA also implemented an annual cap on cost recovery of aging infrastructure replacement spending in the Distribution Integrity Management Program rate mechanism of $139.9 million, in which spending above the annual cap will be deferred for recovery until the next distribution rate case. Yankee Gas is evaluating the need to file a motion for reconsideration within 15 days and an appeal within 45 days of the decision.
Aquarion Water Company of Connecticut Distribution Rate Case:On August 29, 2022, Aquarion Water Company of Connecticut (AWC-CT) filed an application with PURA to amend its existing rate schedules to address an operating revenue deficiency. AWC-CT's rate application requested approval of rate increases of $27.5 million, an additional $13.6 million, and an additional $8.8 million, effective March 15, 2023, 2024, and 2025, respectively. On March 15, 2023, PURA issued a final decision that rejected this request. In this decision, PURA ordered a decrease to total authorized revenues of $4.0 million effective March 15, 2023. The decision allows an authorized regulatory ROE of 8.70 percent. On March 30, 2023, AWC-CT filed an appeal on the decision. On March 25, 2024, the State of Connecticut Superior Court issued a decision on the appeal which dismissed nine, remanded back to PURA two, and partially remanded one of AWC-CT's twelve claims of error in its appeal. On March 28, 2024, AWC-CT filed an appeal of the Connecticut Superior Court decision to the Connecticut Appellate Court, and that appeal was subsequently transferred to the Connecticut Supreme Court.
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On April 18, 2024, PURA initiated a docket to address the matters on remand. On July 31, 2024, PURA issued a final decision in this docket and increased AWC-CT's approved revenue requirement by $0.1 million above the amount authorized in the March 15, 2023 decision. Rates went into effect on July 31, 2024. On September 13, 2024, AWC-CT filed an appeal of PURA's July 31, 2024 final decision to the Connecticut Superior Court. A ruling on the appeal is pending.
On July 9, 2025, the Connecticut Supreme Court issued a decision that overturned PURA's disallowance of $1.5 million in water conservation program expenses, but affirmed the remaining portions of PURA's decision that were challenged on appeal. There is no statutory timeline for PURA to address this decision. The decision did not have a financial impact on Eversource's financial statements. The Connecticut Supreme Court decision also validated AWC-CT's argument that the correct legal standard PURA must use in determining whether costs can be recovered through customer rates is the longstanding prudence standard, which evaluates the prudence of management decision-making as of the time the utility made the decision to incur costs; PURA cannot use improper hindsight analysis to evaluate prudence.
Massachusetts:
NSTAR Electric Distribution Rates: NSTAR Electric's PBR mechanism allows for an annual adjustment to base distribution rates for inflation, exogenous events and future capital additions based on a historical five-year average of total capital additions. On September 15, 2025, NSTAR Electric submitted its annual PBR Adjustment filing for a $55.1 million increase to base distribution rates and a total base distribution revenue requirement of $1.34 billion for effect on January 1, 2026. The requested base distribution rate increase is comprised of a $25.2 million inflation-based adjustment and a $29.9 million K-bar adjustment for capital additions based on the difference between the historical five-year average of total capital additions and the base capital revenue requirement. DPU approval is expected by December 31, 2025.
NSTAR Gas Distribution Rates:NSTAR Gas' PBR mechanism allows for an annual adjustment to base distribution rates for inflation and exogenous events. On June 16, 2025, NSTAR Gas submitted its annual PBR Adjustment filing for rates to be effective on November 1, 2025. On September 11, 2025, NSTAR Gas updated its filing to request approval of a $162.6 million increase to base distribution rates and a total base distribution revenue requirement of $447.7 million. The base distribution rate increase is comprised of a $10.3 million inflation-based adjustment and, in accordance with the DPU's final decision in the 2020 NSTAR Gas rate case, a $152.3 million rate-base reset to incorporate capital additions for the period 2021 through 2024, which includes the transfer of GSEP revenues totaling $107.3 million into base rates, as well as other non-GSEP plant additions totaling $45.0 million.
On October 29, 2025, the DPU issued a decision determining that NSTAR Gas was not eligible to increase its distribution rates for the rate base reset because it did not achieve certain performance metrics under its PBR plan. For the rate-base reset, the DPU did not allow the incorporation of non-GSEP plant additions into base rates, which would have resulted in a base rate increase of $45.0 million. The decision stated that these investments can be considered for inclusion in base distribution rates in NSTAR Gas's next base rate proceeding. The DPU did allow NSTAR Gas to transfer its GSEP revenues through 2024 of $107.3 million for recovery through base distribution rates effective November 1, 2025. The DPU approved the base distribution rate increase of $10.3 million for the inflation-based adjustment. The DPU also approved NSTAR Gas' mitigation proposal, in which NSTAR Gas will pause recovery of the Gas System Enhancement Adjustment Factor (GSEAF) and reduce the current GSEAF to zero on November 1, 2025 in order to align this decrease with the base rate increase and to mitigate November 1, 2025 bill impacts to customers. NSTAR Gas will begin to recover the remaining 2025 GSEP revenue requirement on May 1, 2026 over 18 months. On November 4, 2025, NSTAR Gas filed a motion requesting the DPU to reconsider its decision denying the rate base reset citing legal concerns and arguing that the decision will ultimately result in higher costs for customers.
NSTAR Electric and EGMA Settlement: On November 3, 2025, EGMA, NSTAR Electric, and the Massachusetts Attorney General's Office reached a settlement agreement that resolves outstanding issues in multiple open Pension Adjustment Mechanism (PAM) dockets and open Resiliency Tree Work (RTW) dockets and allows recovery of transaction and integration costs related to Eversource's acquisition of EGMA. The settlement agreement is contingent upon approval from the DPU, which is requested in the fourth quarter of 2025. If approved by the DPU, certain PAM and RTW collections totaling $20.0 million would be refunded to customers over a one-year period beginning January 1, 2026 and the transaction and integration costs of $82.3 million would be collected from customers over a ten year period from the time of the next EGMA rate case.
New Hampshire:
PSNH Distribution Rate Case: On June 11, 2024, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase. On July 31, 2024, the NHPUC approved a settlement agreement that was 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. Temporary rates were in effect until permanent rates were approved and took effect August 1, 2025.
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. Throughout the course of the proceeding, PSNH amended the requested revenue requirement to account for developments in the case, and arrived at a final proposed rate increase of $103 million, which primarily reflects the removal of deferred storm costs that will be addressed in a separate proceeding. On July 25, 2025, the NHPUC issued its decision on permanent rates and approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase referenced above. The total base distribution revenue requirement effective August 1, 2025 is $519 million. The order also established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH's capital structure.
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This revenue requirement also contains an alternative regulation revenue requirement adjustment. This adjustment was part of the NHPUC's alternative regulatory framework that the NHPUC adopted as an alternative to PSNH's proposed performance-based regulation plan. The alternative regulatory framework authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028. PSNH is required to file its next base distribution rate case for effect in June 2029 and committed not to file its next distribution rate case until 2029. The alternative regulatory framework calculates the annual revenue adjustment using a productivity factor and an adjustment for inflation to provide PSNH with increased revenue for operations. The framework also contains an exogenous events recovery mechanism for certain unforeseen events out of PSNH's control and exceeding a specified threshold, a performance metric, and an earnings sharing mechanism where PSNH would have to return 75 percent of all revenue back to customers that exceeds 25 basis points more than the authorized ROE of 9.5 percent. Consistent with PSNH's proposal, lost base revenues for both net metering and energy efficiency were eliminated effective August 1, 2025.
To the extent permanent rates exceed the level of temporary rates, the difference will reconcile back to the date that the temporary rates took effect and the company recovers the difference over a twelve-month term. On August 11, 2025, PSNH filed its recoupment calculation, and on September 10, 2025, the NHPUC issued an order that the recoupment is $9.1 million and will be collected through the RRA regulatory tracking mechanism over a one-year period.
As part of the decision, unrecovered storm costs of $247 million were removed from the rate proceeding for consideration in a separate proceeding. Approval of the ultimate amount of storm costs to be recovered is subject to a separate prudency review that was filed in March of 2024 and is being considered by the NHPUC in a separate dedicated docket, which is at this time complete and awaiting the issuance of an order. Approved storm costs in excess of the amount approved in base rates will be recovered through the Regulatory Reconciliation Adjustment (RRA) regulatory tracking mechanism. The NHPUC increased the level of storm costs recovered in base rates from $12 million to $19 million.
The impact of the rate case decision resulted in a pre-tax benefit to earnings of $15.6 million at PSNH due primarily to the recoupment and the allowed recovery of other deferrals that will be recovered in the RRA. The majority of this amount was recorded as a reduction to amortization expense on PSNH's statement of income in the third quarter of 2025.
Legislative, Policy and Legal Matters
Federal: On July 4, 2025, An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14 (known as the One Big Beautiful Bill Act or OBBBA), a budget and reconciliation package, was signed into law. Among various items, the law includes changes to federal tax policy and modifications to clean energy tax incentives originally enacted under the Inflation Reduction Act of 2022. One of the key provisions notable for Eversource is the restoration of bonus depreciation for its affiliates other than rate-regulated utility companies. The deduction is for qualifying depreciable tangible property acquired and placed in service after January 19, 2025. The OBBBA maintains a federal corporate income tax rate of 21 percent.
The OBBBA also includes provisions that remove federal tax credits for renewable energy. The OBBBA phases out the clean electricity production credit and the clean electricity investment tax credit for wind and solar projects that begin construction after July 4, 2026 and are not placed in service before December 31, 2027. Projects that begin construction prior to July 4, 2026 will remain eligible for investment tax credit benefits under the Inflation Reduction Act of 2022.
The Company has evaluated the impacts of the OBBBA on our consolidated financial statements. The law will not have an impact on Eversource's tax equity investment in the South Fork Wind project or the Revolution Wind project for which Eversource has remaining financial obligations. The ultimate impact of the law will depend on future guidance from the U.S. Department of the Treasury, the Internal Revenue Service, and state regulatory bodies.
Connecticut: On July 1, 2025, Connecticut enacted Public Act No. 25-173, An Act Concerning Energy Affordability, Access, and Accountability, (Senate Bill No. 4) (the Act), which aims to reduce electric rates for Connecticut retail customers by up to $300 million over the next two years in the public benefits charges on electric bills for hardship protection measures and electric vehicle program costs through the issuance of state bonds that would fully fund these state-mandated program costs in lieu of collecting these amounts in electric rates. The Act authorizes the State of Connecticut to issue up to $125 million in new general obligation bonds for each fiscal year 2026 and 2027 to reduce costs of hardship protection measures charged to retail customers, of which 67 percent of each issuance will be allocated to CL&P, and $30 million for fiscal year 2026 and $20 million for fiscal year 2027 in new general obligation bonds to fund the electric vehicle charging program, of which 80 percent of each issuance will be allocated to CL&P. Rate reductions were implemented prospectively beginning September 1, 2025 in CL&P's revenue adjustment mechanism.
The Act authorizes the securitization of storm-related expenses for the period January 1, 2018 through January 1, 2025, which covers the majority of deferred storm costs on the CL&P balance sheet, as well as advanced metering infrastructure (AMI) and legacy meter investments, allowing for the recovery of these costs from customers over a longer term to mitigate short-term rate impacts. The Act also seeks to reduce electric rates for retail customers by revising the statutory framework for renewable portfolio standards.
The Act also directs PURA's procurement manager, after consultation with the electric distribution companies, the Consumer Counsel and the Commissioner of DEEP, to file with PURA by February 15, 2026 a proposed amendment to the plan to procure standard electric service that would authorize electric distribution companies to, among other things, make dynamic market purchases to attempt to reduce the average cost and minimize the price volatility of standard electric service.
Implementation of the Act's provisions will require further regulatory proceedings and administrative action. We do not anticipate any significant impact to our operating revenues or earnings as a result of the Act's enactment. However, we expect PURA to initiate proceedings related to
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securitization, renewable portfolio standard obligations, and other provisions in the Act, which may impact future rate design and recovery mechanisms.
On October 20, 2025, Governor Lamont nominated four new PURA commissioners who, along with an existing commissioner, enable the agency to now operate with the maximum number of commissioners. The four nominees will serve in an interim capacity until they are confirmed by the legislature.
PFAS Settlements:Aquarion opted into class-action settlements with the defendants 3M Company, E.I. duPont de Nemours and Company, Tyco Fire Products LP, and BASF Corporation. These settlement agreements were entered to resolve claims of per- and polyfluoroalkyl substances (PFAS) contamination in the drinking water provided by public water systems. In July 2024 and April 2025, Aquarion and other qualifying class members submitted claims to receive settlement awards; these awards were allocated based on the overall number of claimants, PFAS concentrations and flow rates of water sources, and a variety of other factors. The final, total recovery from these settlements is unknown and will be based on the Claims Administrator's review of the submitted claims and the subsequent allocation procedures. Aquarion anticipates receiving recovery from 3M Company over the next nine years and from E.I. duPont de Nemours and Company over the next two years. The schedule for BASF Corporation and Tyco Fire Products LP are unknown at this time. Aquarion has received $11.7 million of proceeds in 2025. Proceeds from the settlements will be used to fund capital expenditures.
Critical Accounting Policies
The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and, at times, difficult, subjective or complex judgments. Changes in these estimates, assumptions and judgments, in and of themselves, could materially impact our financial position, results of operations or cash flows. Our management discusses with the Audit Committee of our Board of Trustees significant matters relating to critical accounting policies. Our critical accounting policies that we believed were the most critical in nature were reported in the Eversource 2024 Form 10-K. There have been no material changes with regard to these critical accounting policies.
Refer to Note 9D, "Commitments and Contingencies - Offshore Wind Contingent Liability," to the financial statements for further discussion of the critical accounting estimates surrounding the offshore wind contingent liability.
Other Matters
Website: Additional financial information is available through our website at www.eversource.com. We make available through our website a link to the SEC's EDGAR website (http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site Eversource's, CL&P's, NSTAR Electric's and PSNH's combined Annual Reports on Form 10-K, combined Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be reviewed. Information contained on the Company's website or that can be accessed through the website is not incorporated into and does not constitute a part of this combined Quarterly Report on Form 10-Q.
RESULTS OF OPERATIONS - EVERSOURCE ENERGY AND SUBSIDIARIES
The following provides the amounts and variances in operating revenues and expense line items in the statements of income for Eversource for the three and nine months ended September 30, 2025 and 2024 included in this combined Quarterly Report on Form 10-Q:
For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Millions of Dollars) 2025 2024 Increase/(Decrease) 2025 2024 Increase/(Decrease)
Operating Revenues $ 3,220.6 $ 3,063.2 $ 157.4 $ 10,177.0 $ 8,929.3 $ 1,247.7
Operating Expenses:
Purchased Power, Purchased Natural Gas and Transmission 1,049.3 917.9 131.4 3,208.3 2,995.2 213.1
Operations and Maintenance 518.3 510.4 7.9 1,473.3 1,437.8 35.5
Depreciation 395.4 366.1 29.3 1,160.6 1,060.7 99.9
Amortization 108.2 244.0 (135.8) 672.8 127.5 545.3
Energy Efficiency Programs 173.1 148.0 25.1 565.9 506.8 59.1
Taxes Other Than Income Taxes 287.6 264.4 23.2 818.0 740.4 77.6
Total Operating Expenses 2,531.9 2,450.8 81.1 7,898.9 6,868.4 1,030.5
Operating Income 688.7 612.4 76.3 2,278.1 2,060.9 217.2
Interest Expense 318.1 300.6 17.5 912.1 822.7 89.4
Losses on Offshore Wind 284.0 464.0 (180.0) 284.0 464.0 (180.0)
Other Income, Net 85.8 112.6 (26.8) 273.5 318.9 (45.4)
Income/(Loss) Before Income Tax Expense 172.4 (39.6) 212.0 1,355.5 1,093.1 262.4
Income Tax Expense (197.0) 76.6 (273.6) 78.8 348.4 (269.6)
Net Income/(Loss) 369.4 (116.2) 485.6 1,276.7 744.7 532.0
Net Income Attributable to Noncontrolling Interests 1.9 1.9 - 5.6 5.6 -
Net Income/(Loss) Attributable to Common Shareholders $ 367.5 $ (118.1) $ 485.6 $ 1,271.1 $ 739.1 $ 532.0
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Operating Revenues
Sales Volumes:A summary of our retail electric GWh sales volumes, our firm natural gas MMcf sales volumes, and our water MG sales volumes, and percentage changes, is as follows:
Electric Firm Natural Gas Water
Sales Volumes (GWh) Percentage
Increase/(Decrease) 		Sales Volumes (MMcf) Percentage
Increase 		Sales Volumes (MG) Percentage
Increase/(Decrease)
Three Months Ended September 30: 2025 2024 2025 2024 2025 2024
Traditional 2,061 2,125 (3.0) % - - - % 591 563 5.0 %
Decoupled 11,666 11,796 (1.1) % 16,986 16,633 2.1 % 8,184 7,751 5.6 %
Total Sales Volumes 13,727 13,921 (1.4) % 16,986 16,633 2.1 % 8,775 8,314 5.5 %
Nine Months Ended September 30:
Traditional 5,907 5,908 - % - - - % 1,275 1,283 (0.6) %
Decoupled 32,729 32,435 0.9 % 111,433 102,982 8.2 % 18,726 18,257 2.6 %
Total Sales Volumes 38,636 38,343 0.8 % 111,433 102,982 8.2 % 20,001 19,540 2.4 %
Weather, fluctuations in energy supply rates, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage and water consumption. Industrial sales volumes are less sensitive to temperature variations than residential and commercial sales volumes. In our service territories, weather impacts both electric and water sales volumes during the summer and both electric and natural gas sales volumes during the winter; however, natural gas sales volumes are more sensitive to temperature variations than electric sales volumes. Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur.
Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table above). For CL&P, NSTAR Electric, NSTAR Gas, EGMA, Yankee Gas, and our Connecticut water distribution business, fluctuations in retail sales volumes do not materially impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms ("Decoupled" in the table above). These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized.
Operating Revenues:The variance in Operating Revenues by segment is as follows:
(Millions of Dollars) Three Months Ended Nine Months Ended
Electric Distribution $ 85.1 $ 801.2
Natural Gas Distribution 39.9 342.6
Electric Transmission 36.1 110.7
Water Distribution 2.1 5.8
Other 13.6 19.6
Eliminations (19.4) (32.2)
Total Operating Revenues $ 157.4 $ 1,247.7
Electric and Natural Gas Distribution Revenues:
Base Distribution Revenues:
•Base electric distribution revenues increased $28.2 million and $90.5 million for the three and nine month periods, due primarily to base distribution rate increases at PSNH effective August 1, 2024 and August 1, 2025 and at NSTAR Electric effective January 1, 2025.
•Base natural gas distribution revenues increased $20.9 million and $100.6 million for the three and nine month periods, due primarily to base distribution rate increases effective November 1, 2024 at EGMA and at NSTAR Gas.
NSTAR Electric's PBR mechanism allows for an annual adjustment to base distribution rates for inflation, exogenous events and future capital additions based on a historical five-year average of total capital additions. On December 23, 2024, the DPU approved a $55.8 million increase to base distribution rates for effect on January 1, 2025.
On July 31, 2024, the NHPUC approved a settlement agreement to implement a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024 at PSNH. On July 25, 2025, the NHPUC approved a permanent rate increase of $100.7 million, effective August 1, 2025, inclusive of the temporary rate increase.
NSTAR Gas' PBR mechanism allows for an annual adjustment to base distribution rates for inflation and exogenous events. On October 30, 2024, the DPU approved the annual PBR Adjustment filing for a $12.7 million increase to base distribution rates for effect on November 1, 2024.
EGMA was allowed two rate base resets in a DPU-approved October 7, 2020 rate settlement agreement, with the first rate base reset on November 1, 2024. After adjusting for a cap required under the terms of the rate settlement agreement, the increase to base distribution rates was $85.6 million effective November 1, 2024 (of which $8.8 million is offset by a reduction in the GSEP revenue requirement and GSEP rate also taking effect on November 1, 2024 for a net distribution rate change on November 1, 2024 of $76.8 million). On November 7, 2024, the DPU approved this filing.
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Tracked Distribution Revenues:Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates on a fully reconciling basis through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply and natural gas supply procurement, state mandated energy purchase agreements and other energy-related costs, electric retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), certain capital tracking mechanisms for infrastructure improvements, and additionally for the Massachusetts utilities, pension and PBOP benefits, net metering for distributed generation, and solar-related programs. Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings. Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market, sales of natural gas to third party marketers, and the sale of RECs to various counterparties.
Customers have the choice to purchase electricity from their Eversource electric utility or from a competitive third party supplier. For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third party supplier. For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement. CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues. Certain eligible natural gas customers may elect to purchase natural gas from their Eversource natural gas utility or may contract separately with a gas supply operator. Revenue is not recorded for the sale of the natural gas commodity to customers who have contracted separately with these operators, only the delivery to a customer, as the utility is acting as an agent on behalf of the gas supply operator.
The variance in tracked distribution revenues for the three and nine month periods is due primarily to the following:
Electric Distribution Natural Gas Distribution
(Millions of Dollars) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended
Retail Tariff Tracked Revenues:
Energy supply procurement $ (7.2) $ (180.5) $ 8.6 $ 144.2
CL&P NBFMCC (76.9) 267.2 - -
CL&P SBC (9.9) 143.7 - -
Retail transmission 86.0 152.9 - -
Energy efficiency 24.7 (19.1) 10.7 60.7
Other distribution tracking mechanisms (3.6) 98.3 (1.4) 17.2
Wholesale Market Sales Revenue 46.8 252.4 0.6 18.7
Fluctuations in retail tariff tracked revenues are driven by adjustments to retail rates to recover costs and changes in sales volumes.
The decreases in energy supply procurement within electric distribution for the three and nine month periods were driven by lower average prices, partially offset by higher average supply-related sales volumes. The increase in energy supply procurement within natural gas distribution for the three month period was driven by higher average prices, partially offset by lower average supply-related sales volumes. The increase in energy supply procurement within natural gas distribution for the nine month period was driven by higher average prices and higher average supply-related sales volumes.
The variance in CL&P's NBFMCC revenues for the three and nine month periods was driven by changes in the retail NBFMCC rate. The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state mandated energy purchase contracts with the Millstone and Seabrook nuclear power plants, net of the benefits received from selling this energy into the ISO-NE wholesale market. The rate changes primarily resulted from the timing of recovery of net costs associated with power purchase agreements with the Millstone and Seabrook nuclear power plants. The average NBFMCC rates are as follows:
Effective Date
September 1, 2023 July 1, 2024 September 1, 2024 May 1, 2025 September 1, 2025
Average NBFMCC Rate $ 0.00293 $ 0.03906 $ 0.04290 $ 0.02109 $ 0.01675
The increase in electric distribution wholesale market sales revenue for the three and nine month periods was due primarily to higher average electricity market prices received for wholesale sales at CL&P. ISO-NE average market prices received for CL&P's wholesale sales increased to an average price of $48.79 per MWh and $64.09 per MWh for the three and nine months ended September 30, 2025, as compared to $37.14 per MWh and $34.89 per MWh for the same periods in 2024, driven primarily by higher natural gas prices in New England. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA with CL&P.
CL&P is required by regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered into in 2019. CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs. The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the CL&P FMCC rate. Changes in CL&P's NBFMCC retail revenues and CL&P's wholesale market sales, as compared to the actual costs incurred, are deferred on the income statement by an offset to amortization expense.
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Electric Transmission Revenues: Electric transmission revenues increased $36.1 million and $110.7 million for the three and nine month periods, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.
Other Revenues and Eliminations:Other revenues primarily include the revenues of Eversource's service company, most of which are eliminated in consolidation. Eliminations are also related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, 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 is due primarily to the following:
(Millions of Dollars) Three Months Ended Nine Months Ended
Energy supply procurement costs $ 0.2 $ (171.7)
Other electric distribution costs 50.6 106.2
Natural gas supply costs 3.5 140.3
Transmission costs 79.3 145.7
Eliminations (2.2) (7.4)
Total Purchased Power, Purchased Natural Gas and Transmission $ 131.4 $ 213.1
The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues). The increase in other electric distribution costs for the three month period is due primarily to higher long-term contractual energy-related costs and the cost of renewable energy credits that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, higher stranded costs resulting from lower Regional Greenhouse Gas Initiative (RGGI) proceeds received at PSNH, which are credited back to customers, and an increase in the long-term renewable energy purchase contract cost deferral at NSTAR Electric.
The increase in other electric distribution costs for the nine month period is due primarily to an increase in the long-term renewable energy purchase contract cost deferral and in net metering costs at NSTAR Electric, higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and higher net metering costs at PSNH.
Costs at the natural gas distribution segment relate to supply procurement costs for retail customers. Total natural gas costs increased for the three month period due primarily to higher average prices and an increase in the retail cost deferral, partially offset by lower average purchased volumes. Total natural gas costs increased for the nine month period due primarily to higher average prices and higher average purchased volumes, partially offset by a decrease in the retail cost deferral.
Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric system. The increase in transmission costs for the three month period 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. The increase in transmission costs for the nine month period is the result of an increase in costs billed by ISO-NE that support regional grid investments, partially offset by a decrease in the retail transmission cost deferral and a decrease in the Local Network Service charge.
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Operations and Maintenanceexpense 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 is due primarily to the following:
(Millions of Dollars) Three Months Ended Nine Months Ended
Base Electric Distribution (Non-Tracked Costs):
Employee-related expenses (including labor and benefits) $ 7.7 $ 7.6
Shared corporate costs (including IT system depreciation at Eversource Service) 6.2 11.0
Storm costs 5.0 3.2
Operations-related expenses (including vegetation management, vendor services, vehicles and materials) 0.6 (9.0)
Uncollectible Expense (6.5) (0.4)
General corporate costs (including vendor services in corporate areas, insurance, fees and assessments) (3.9) -
Total Base Electric Distribution (Non-Tracked Costs) 9.1 12.4
Tracked Electric Costs (Electric Distribution and Electric Transmission) 13.8 22.2
Total Electric Distribution and Electric Transmission 22.9 34.6
Natural Gas Distribution:
Base (Non-Tracked Costs) - Increase for nine months ended due primarily to higher uncollectible expense and employee-related expenses (0.7) 19.6
Tracked Costs 1.0 6.1
Total Natural Gas Distribution 0.3 25.7
Water Distribution 1.3 (2.7)
Eversource Parent and Other Companies - other operations and maintenance (0.4) 1.1
Eliminations (16.2) (23.2)
Total Operations and Maintenance $ 7.9 $ 35.5
Depreciationexpense increased for the three and nine month periods due primarily to higher net plant in service balances.
Amortization expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. These costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates.
The variance in Amortizationfor the three and nine month periods is due primarily to the deferral adjustments of energy-related and other tracked costs at CL&P (included in the non-bypassable component of the FMCC mechanism and the SBC mechanism), NSTAR Electric and PSNH (included in the stranded cost recovery mechanism), which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs, as well as the impact of the PSNH rate case decision. The rate case decisionallowed for the recoupment of temporary rates and the allowed recovery of other deferrals resultingin a pre-tax benefit to earnings of $15.6 million, the majority of which was recorded as a reduction to amortization expense on the statement of income in the third quarter of 2025.
For the nine month period, the CL&P non-bypassable FMCC retail rates in effect were higher than those in the prior period and the net Millstone and Seabrook contract cash flows were higher in 2025 as compared to 2024. These higher collections within the non-bypassable FMCC resulted in a corresponding increase to amortization expense of $451.5 million for the CL&P non-bypassable FMCC deferral adjustment.
Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense includes a deferral adjustment that reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. Energy Efficiency Programs expense increased for the threeand nine month periods due primarily to the deferral adjustment and higher program spending.
Taxes Other Than Income Taxesexpense increased for the three and ninemonth periods due primarily to higher property taxes as a result of higher utility plant balances across our subsidiaries and higher mill rates at NSTAR Electric and higher Connecticut gross earnings taxes.
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Interest Expenseincreasedfor the three and ninemonth periods due primarily to the following:
(Millions of Dollars) Three Months Ended Nine Months Ended
Long-term debt $ 15.5 $ 62.5
Absence in 2025 of capitalized interest as a result of the sale of our offshore
wind projects in the third quarter of 2024 		14.6 69.3
Capitalized AFUDC related to debt funds (4.1) (3.0)
Amortization of debt discounts and premiums, net 1.3 3.9
Regulatory deferrals (9.2) (47.9)
Short-term notes payable (0.8) 4.3
RRBs (0.4) (1.2)
Other 0.6 1.5
Total Interest Expense $ 17.5 $ 89.4
Losses on Offshore Wind for the three and nine months ended 2025 relates to the pre-tax charge of $284 million associated with increasing our offshore wind contingent liability for expected future payments under the terms of the 2024 sale agreement with GIP for the South Fork Wind and Revolution Wind projects recorded in the third quarter of 2025. Losses on Offshore Wind for the three and nine months ended 2024 relates to the loss recorded on the third quarter 2024 sales of our equity method offshore wind investments. See "Earnings Overview - Offshore Wind Contingent Liability" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations for further information.
Other Income, Net decreasedfor the three and ninemonth periods due primarily to the following:
(Millions of Dollars) Three Months Ended Nine Months Ended
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion $ 4.0 $ 14.3
Interest Income (primarily on regulatory deferrals) (9.5) (11.8)
Capitalized AFUDC related to equity funds (3.0) (4.0)
Equity in Earnings of Unconsolidated Affiliates (12.6) (32.8)
Investment Income/(Loss) (0.7) (5.0)
Other (5.0) (6.1)
Total Other Income, Net $ (26.8) $ (45.4)
Income Tax Expensedecreased for the three month period due primarily to a decrease in reserves ($384.5 million), a decrease in return to provision adjustments ($23.4 million), and a decrease in amortization of EDIT ($4.9 million), partially offset by higher pre-tax earnings ($44.5 million), higher state taxes ($65.6 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($29.1 million).
Income Tax Expensedecreased for the nine month period due primarily to a decrease in reserves ($384.5 million), a decrease in return to provision adjustments ($23.4 million), and a decrease in amortization of EDIT ($3.9 million), partially offset by higher pre-tax earnings ($55.1 million), higher state taxes ($75.3 million), higher share-based payment tax deficiency ($0.6 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($11.2 million).
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RESULTS OF OPERATIONS -
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the nine months ended September 30, 2025 and 2024 included in this combined Quarterly Report on Form 10-Q:
For the Nine Months Ended September 30,
CL&P NSTAR Electric PSNH
(Millions of Dollars) 2025 2024 Increase/
(Decrease) 		2025 2024 Increase/
(Decrease) 		2025 2024 Increase/
(Decrease)
Operating Revenues $ 4,035.9 $ 3,431.2 $ 604.7 $ 3,012.7 $ 2,870.2 $ 142.5 $ 1,002.3 $ 955.5 $ 46.8
Operating Expenses:
Purchased Power and Transmission 1,409.6 1,516.1 (106.5) 868.8 818.0 50.8 187.1 169.8 17.3
Operations and Maintenance 611.0 593.1 17.9 538.5 526.3 12.2 211.8 207.3 4.5
Depreciation 322.8 302.0 20.8 330.4 301.8 28.6 125.8 114.4 11.4
Amortization of Regulatory
Assets/(Liabilities), Net 		529.3 (73.5) 602.8 97.4 120.8 (23.4) 45.5 101.9 (56.4)
Energy Efficiency Programs 129.9 114.6 15.3 205.4 222.2 (16.8) 35.3 33.0 2.3
Taxes Other Than Income Taxes 343.6 316.0 27.6 236.7 205.8 30.9 80.8 71.8 9.0
Total Operating Expenses 3,346.2 2,768.3 577.9 2,277.2 2,194.9 82.3 686.3 698.2 (11.9)
Operating Income 689.7 662.9 26.8 735.5 675.3 60.2 316.0 257.3 58.7
Interest Expense 151.5 180.1 (28.6) 183.7 164.9 18.8 65.2 62.7 2.5
Other Income, Net 40.1 61.4 (21.3) 141.1 143.0 (1.9) 33.5 22.9 10.6
Income Before Income Tax Expense 578.3 544.2 34.1 692.9 653.4 39.5 284.3 217.5 66.8
Income Tax Expense 148.8 142.4 6.4 163.7 151.3 12.4 72.9 53.9 19.0
Net Income $ 429.5 $ 401.8 $ 27.7 $ 529.2 $ 502.1 $ 27.1 $ 211.4 $ 163.6 $ 47.8
Operating Revenues
Sales Volumes:A summary of our retail electric GWh sales volumes is as follows:
For the Nine Months Ended September 30,
2025 2024 Percentage
Increase/(Decrease)
CL&P 15,375 15,363 0.1 %
NSTAR Electric 17,354 17,072 1.7 %
PSNH 5,907 5,908 - %
Fluctuations in retail electric sales volumes at PSNH impact earnings. For CL&P and NSTAR Electric, fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms.
Operating Revenues:Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased $604.7 million at CL&P, $142.5 million at NSTAR Electric, and $46.8 million at PSNH for the nine month period.
Base Distribution Revenues:
•CL&P's distribution revenues were flat for the nine month period.
•NSTAR Electric's distribution revenues increased $43.2 million for the nine month period due to a base distribution rate increase effective January 1, 2025.
•PSNH's distribution revenues increased $47.3 million for the nine month period due primarily to base distribution rate increases effective August 1, 2024 and August 1, 2025.
Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates on a fully reconciling basis through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply procurement, state mandated energy purchase agreements and other energy-related costs, retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), certain capital tracking mechanisms for infrastructure improvements, and additionally for NSTAR Electric, pension and PBOP benefits, net metering for distributed generation, and solar-related programs. Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings. Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties.
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Customers have the choice to purchase electricity from their Eversource electric utility or from a competitive third party supplier. For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third party supplier. For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement. CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues.
The variance in tracked distribution revenues for the nine month period is due primarily to the following:
(Millions of Dollars) CL&P NSTAR Electric PSNH
Retail Tariff Tracked Revenues:
Energy supply procurement $ (89.6) $ (85.3) $ (5.6)
CL&P NBFMCC 267.2 - -
CL&P SBC 143.7 - -
Retail transmission 8.9 99.7 44.3
Energy efficiency 0.7 (14.6) (5.2)
Other distribution tracking mechanisms 56.2 78.1 (36.0)
Wholesale Market Sales Revenue 219.5 34.8 (1.9)
Fluctuations in retail tariff tracked revenues are driven by adjustments to retail rates to recover costs and changes in sales volumes.
The decrease in energy supply procurement at CL&P for the nine month period was driven by lower average prices, partially offset by higher average supply-related sales volumes. The decrease in energy supply procurement at NSTAR Electric for the nine month period was driven by lower average supply-related sales volumes and lower average prices. The decrease in energy supply procurement at PSNH for the nine month period was driven by lower average supply-related sales volumes, partially offset by higher average prices.
The variance in CL&P's NBFMCC revenues for the nine month period was driven by changes in the retail NBFMCC rate. The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state mandated energy purchase contracts with the Millstone and Seabrook nuclear power plants, net of the benefits received from selling this energy into the ISO-NE wholesale market. The rate changes primarily resulted from the timing of recovery of net costs associated with power purchase agreements with the Millstone and Seabrook nuclear power plants. The average NBFMCC rates are as follows:
Effective Date
September 1, 2023 July 1, 2024 September 1, 2024 May 1, 2025 September 1, 2025
Average NBFMCC Rate $ 0.00293 $ 0.03906 $ 0.04290 $ 0.02109 $ 0.01675
The increase in electric distribution wholesale market sales revenue for the nine month period was due primarily to higher average electricity market prices received for wholesale sales at CL&P. ISO-NE average market prices received for CL&P's wholesale sales increased to an average price of $64.09 per MWh for the nine months ended September 30, 2025, as compared to $34.89 per MWh for the same period in 2024, driven primarily by higher natural gas prices in New England. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA with CL&P.
CL&P is required by regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered into in 2019. CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs. The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the CL&P FMCC rate. Changes in CL&P's NBFMCC retail revenues and CL&P's wholesale market sales, as compared to the actual costs incurred, are deferred on the income statement by an offset to amortization expense.
Transmission Revenues: Transmission revenues increased $37.0 million at CL&P, $42.6 million at NSTAR Electric, and $31.1 million at PSNH for the nine month period, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.
Eliminations:Eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business in rates charged to their customers. The impact of eliminations decreased revenues by $38.7 million at CL&P, $56.5 million at NSTAR Electric, and $23.4 million at PSNH for the nine month period.
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Purchased Power and Transmissionexpense includes costs associated with providing electric generation service supply 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 energy 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 and Transmission expense is due primarily to the following:
(Millions of Dollars) CL&P NSTAR Electric PSNH
Energy supply procurement costs $ (86.6) $ (79.4) $ (5.7)
Other electric distribution costs 14.3 87.9 4.0
Transmission costs 4.5 98.8 42.4
Eliminations (38.7) (56.5) (23.4)
Total Purchased Power and Transmission $ (106.5) $ 50.8 $ 17.3
The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues). The variance in other electric distribution costs at NSTAR Electric is due to an increase in the long-term renewable energy purchase contract cost deferral and higher net metering costs, at CL&P is due to higher long-term contractual energy-related costs and the cost of renewable energy credits that are recovered in the non-bypassable component of the FMCC mechanism, and at PSNH is due to higher net metering costs.
Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric system.
•The increase in transmission costs at CL&P was due primarily to 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 resulting from the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.
•The increase in transmission costs at NSTAR Electric was due primarily to an increase in costs billed by ISO-NE that support regional grid investments and an increase in the retail transmission cost deferral. These increases were partially offset by a decrease in Local Network Service charges.
•The increase in transmission costs at PSNH was due primarily to an increase in costs billed by ISO-NE that support regional grid investments, an increase in Local Network Service charges, and an increase in the retail transmission cost deferral.
Operations and Maintenanceexpense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). The variance in Operations and Maintenance expense is due primarily to the following:
(Millions of Dollars) CL&P NSTAR Electric PSNH
Base Electric Distribution (Non-Tracked Costs):
Storm costs $ 5.9 $ (3.2) $ 0.5
Uncollectible Expense 4.7 (5.2) 0.1
Shared corporate costs (including IT system depreciation at Eversource Service) 2.7 6.9 1.4
Employee-related expenses (including labor and benefits) 2.1 6.6 (1.1)
Vegetation Management (5.3) (4.1) 7.8
General corporate costs (including vendor services in corporate areas, insurance, fees and assessments) (5.2) 3.3 1.9
Operations-related expenses (including vendor services, vehicles and materials) (2.7) (2.1) (2.6)
Total Base Electric Distribution (Non-Tracked Costs) 2.2 2.2 8.0
Total Tracked Costs 15.7 10.0 (3.5)
Total Operations and Maintenance $ 17.9 $ 12.2 $ 4.5
Depreciation expense increased for the nine month period for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances.
Amortization of Regulatory Assets/(Liabilities), Netexpense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. These costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates. The variance in Amortization of Regulatory Assets/(Liabilities), Net for the nine month period is due primarily to the following:
•The variance at CL&P was due primarily to the deferral adjustment of energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism and the SBC mechanism, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The CL&P non-bypassable FMCC retail rates in effect were higher than those in the prior period and the net Millstone and Seabrook contract cash flows were higher in 2025 as compared to 2024. These higher collections within the non-bypassable FMCC resulted in a corresponding increase to amortization expense of $451.5 million for the CL&P non-bypassable FMCC deferral adjustment for the nine month period.
•The variance at NSTAR Electric was due primarily to the deferral adjustment of costs included in the solar facilities and advanced metering infrastructure regulatory mechanisms, partially offset by the deferral adjustment of energy-related and other tracked costs that are included in the grid modernization regulatory mechanism and higher amortization of storm costs recovered in rates.
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•The variance at PSNH was due to the deferral adjustment of energy-related and other tracked costs that are included in the stranded cost recovery mechanism as well as the impact of the PSNH rate case decision. The rate case decisionallowed for the recoupment of temporary rates and the allowed recovery of other deferrals resultingin a pre-tax benefit to earnings of $15.6 million, the majority of which was recorded as a reduction to amortization expense on the statement of income in the third quarter of 2025.
Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense includes a deferral adjustment that reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The variance in Energy Efficiency Programs expense for the nine month period is due primarily to the following:
•The increase at CL&P was due to the deferral adjustment and higher program spending.
•The decrease at NSTAR Electric was due to the deferral adjustment, partially offset by higher program spending.
•The increase at PSNH was due to higher program spending, partially offset by the deferral adjustment.
Taxes Other Than Income Taxes - the variance is due primarily to the following:
•The increase at CL&P was due to higher Connecticut gross earnings taxes and higher property taxes as a result of higher utility plant balances.
•The increase at NSTAR Electric was due to higher property taxes as a result of higher utility plant balances and higher mill rates.
•The increase at PSNH was due to higher property taxes as a result of higher utility plant balances.
Interest Expense- the variance is due primarily to the following:
(Millions of Dollars) CL&P NSTAR Electric PSNH
Long-term debt $ 16.1 $ 36.5 $ 7.6
Capitalized AFUDC related to debt funds (7.4) (0.9) 2.3
Amortization of debt discounts and premiums, net 0.8 1.1 0.2
Regulatory deferrals (26.1) (15.2) (3.3)
Short-term notes payable (12.2) (2.8) (3.0)
RRBs - - (1.2)
Other 0.2 0.1 (0.1)
Total Interest Expense $ (28.6) $ 18.8 $ 2.5
Other Income, Net- the variance is due primarily to the following:
(Millions of Dollars) CL&P NSTAR Electric PSNH
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion $ 5.5 $ 6.3 $ 2.0
Interest Income (primarily on regulatory deferrals) (13.8) (3.6) 3.3
Capitalized AFUDC related to equity funds (13.0) (1.3) 5.5
Investment Income/(Loss) (0.1) (3.4) (0.2)
Other 0.1 0.1 -
Total Other Income, Net $ (21.3) $ (1.9) $ 10.6
Income Tax Expense- the variance is due primarily to the following:
•The increase at CL&P was due primarily to higher pre-tax earnings ($7.1 million), higher share-based payment tax deficiency ($0.2 million), higher state taxes ($4.4 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($5.8 million), partially offset by an increase in amortization of EDIT ($1.0 million), a decrease in return to provision adjustments ($1.3 million), and a decrease in reserves ($8.8 million).
•The increase at NSTAR Electric was due primarily to higher pre-tax earnings ($8.2 million), higher state taxes ($2.5 million), higher share-based payment tax deficiency ($0.3 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.4 million).
•The increase at PSNH was due primarily to higher pre-tax earnings ($14.0 million), higher state taxes ($3.6 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($2.2 million), partially offset by an increase in amortization of EDIT ($0.8 million).
EARNINGS SUMMARY
CL&P's earnings increased $27.7 million for the nine month period due primarily to higher revenues from its capital tracking mechanism due to increased electric system improvements and an increase in transmission earnings driven primarily by a higher transmission rate base and lower interest expense. The earnings increase was partially offset by higher depreciation expense, lower net interest income on regulatory deferrals, and higher property tax expense.
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NSTAR Electric's earnings increased $27.1 million for the nine month period due primarily to higher revenues as a result of the base distribution rate increase effective January 1, 2025, an increase in transmission earnings driven primarily by a higher transmission rate base and lower interest expense, and higher earnings from its AMI tracking mechanism. The earnings increase was partially offset by higher interest expense on long-term debt, higher property tax expense, and lower net interest income on regulatory deferrals.
PSNH's earnings increased $47.8 million for the nine month period due primarily to higher revenues as a result of the base distribution rate increases effective August 1, 2024 and August 1, 2025, an increase in transmission earnings driven primarily by a higher transmission rate base and lower interest expense, and the impact of the rate case decision in July 2025. The earnings increase was partially offset by higher operations and maintenance expense and higher depreciation expense.
LIQUIDITY
Cash Flows:CL&P had cash flows provided by operating activities of $1.13 billion for the nine months ended September 30, 2025, as compared to $390.2 million in the same period of 2024. The increase in operating cash flows was due primarily to an improvement in regulatory recoveries driven primarily by the timing of collections for the non-bypassable FMCC and the SBC regulatory tracking mechanisms. The CL&P non-bypassable FMCC retail rates in effect for the 2025 period were higher than those set in the prior period and the net Millstone and Seabrook contract cash flows were higher in 2025 as compared to 2024. These higher collections within the non-bypassable FMCC resulted in an improvement to operating cash flows of $451.5 million for the nine month period. Higher collections from the SBC mechanism resulted in a cash flow improvement of $136.8 million. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets/(Liabilities), Net on the statements of cash flows. Additionally, CL&P received general obligation bond proceeds from the State of Connecticut for the reimbursement of hardship costs and for electric vehicle charging program costs of $107.8 million in the third quarter of 2025, which are reflected in Regulatory Recoveries. Operating cash flows were also favorably impacted by the timing of cash collections on our accounts receivable, a decrease of $61.1 million in cash payments to vendors for storm costs, and the timing of other working capital items. These favorable impacts were partially offset by a decrease of $310.5 million in operating cash flows due to income tax payments made in 2025 compared to income tax refunds received in 2024, and the timing of cash payments made on our accounts payable.
NSTAR Electric had cash flows provided by operating activities of $821.3 million for the nine months ended September 30, 2025, as compared to $572.2 million in the same period of 2024. The increase in operating cash flows was due primarily to an improvement in regulatory recoveries driven primarily by the timing of collections for energy supply costs, net metering costs and other regulatory tracking mechanisms, a decrease of $115.6 million in cash payments to vendors for storm costs, and the timing of cash payments made on our accounts payable. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows. These favorable impacts were partially offset by an increase of $44.8 million in income tax payments made in 2025 compared to 2024, an increase in cost of removal expenditures, the timing of cash collections on our accounts receivable, and the timing of other working capital items.
PSNH had cash flows provided by operating activities of $358.3 million for the nine months ended September 30, 2025, as compared to $205.2 million in the same period of 2024. The increase in operating cash flows was due primarily to a decrease of $85.5 million in cash payments to vendors for storm costs, an improvement in regulatory recoveries driven primarily by the timing of collections for retail and wholesale transmission costs and other regulatory tracking mechanisms, the timing of cash collections on our accounts receivable, a decrease in cost of removal expenditures, the timing of cash payments made on our accounts payable, and the timing of other working capital items. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows. These favorable impacts were partially offset by a decrease of $106.9 million in operating cash flows due to income tax payments made in 2025 compared to income tax refunds received in 2024.
For further information on CL&P's, NSTAR Electric's and PSNH's liquidity and capital resources, see "Liquidity" and "Business Development and Capital Expenditures" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk Information
Commodity Price Risk Management: Our regulated companies enter into energy contracts to serve our customers, and the economic impacts of those contracts are passed on to our customers. Accordingly, the regulated companies have no exposure to loss of future earnings or fair values due to these market risk-sensitive instruments. Eversource's Energy Supply Risk Committee, comprised of senior officers, reviews and approves all large-scale energy-related transactions entered into by its regulated companies.
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Other Risk Management Activities
Interest Rate Risk Management: Interest rate risk is associated with changes in interest rates for our outstanding long-term debt. Our interest rate risk is significantly reduced as typically all or most of our debt financings have fixed interest rates. As of September 30, 2025, all of our long-term debt was at a fixed interest rate.
Credit Risk Management: Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of our contractual obligations. We serve a wide variety of customers and transact with suppliers that include IPPs, industrial companies, natural gas and electric utilities, oil and natural gas producers, financial institutions, and other energy marketers. Margin accounts exist within this diverse group, and we realize interest receipts and payments related to balances outstanding in these margin accounts. This wide customer and supplier mix generates a need for a variety of contractual structures, products and terms that, in turn, require us to manage the portfolio of market risk inherent in those transactions in a manner consistent with the parameters established by our risk management process.
Our regulated companies are subject to credit risk from certain long-term or high-volume supply contracts with energy marketing companies. Our regulated companies manage the credit risk with these counterparties in accordance with established credit risk practices and monitor contracting risks, including credit risk. As of September 30, 2025, our regulated companies held collateral (letters of credit or cash) of $14.0 million from counterparties related to our standard service contracts. As of September 30, 2025, Eversource had $44.1 million of cash posted with ISO-NE related to energy transactions.
We have provided additional disclosures regarding interest rate risk management and credit risk management in Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," in Eversource's 2024 Form 10-K, which is incorporated herein by reference. There have been no additional risks identified and no material changes with regard to the items previously disclosed in the Eversource 2024 Form 10-K.
ITEM 4. CONTROLS AND PROCEDURES
Management, on behalf of Eversource, CL&P, NSTAR Electric and PSNH, evaluated the design and operation of the disclosure controls and procedures as of September 30, 2025 to determine whether they are effective in ensuring that the disclosure of required information is made timely and in accordance with the Securities Exchange Act of 1934 and the rules and regulations of the SEC. This evaluation was made under management's supervision and with management's participation, including the principal executive officer and principal financial officer as of the end of the period covered by this Quarterly Report on Form 10-Q. There are inherent limitations of disclosure controls and procedures, including the possibility of human error and the circumventing or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. The principal executive officer and principal financial officer have concluded, based on their review, that the disclosure controls and procedures of Eversource, CL&P, NSTAR Electric and PSNH are effective to ensure that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and regulations and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.
There have been no changes in internal controls over financial reporting for Eversource, CL&P, NSTAR Electric and PSNH during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are parties to various legal proceedings. We have disclosed certain legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our 2024 Form 10-K. These disclosures are incorporated herein by reference. There have been no material legal proceedings identified and no material changes with regard to the legal proceedings previously disclosed in our 2024 Form 10-K.
ITEM 1A. RISK FACTORS
We are subject to a variety of significant risks in addition to the matters set forth under our forward-looking statements section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Quarterly Report on Form 10-Q. We have identified a number of these risk factors in Part I, Item 1A, "Risk Factors," in our 2024 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. There have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our 2024 Form 10-K.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table discloses purchases of our common shares made by us or on our behalf for the periods shown below. The common shares purchased consist of open market purchases made by the Company or an independent agent. These share transactions related to matching contributions under the Eversource 401k Plan.
Period Total Number of
Shares Purchased 		Average Price
Paid per Share 		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
July 1 - July 31, 2025 - $ - - -
August 1 - August 31, 2025 - - - -
September 1 - September 30, 2025 2,436 70.45 - -
Total 2,436 $ 70.45 - -
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended September 30, 2025, none of the Company's directors or officers adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as such terms are defined under Item 408 of Regulation S-K.
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ITEM 6. EXHIBITS
Each document described below is filed herewith, unless designated with an asterisk (*), which exhibits are incorporated by reference by the registrant under whose name the exhibit appears.
Exhibit No. Description
Listing of Exhibits (Eversource)
* 4
Twenty-Third Supplemental Indenture, between Eversource and The Bank of New York Mellon Trust Company, N.A., as Trustee dated as of October 1, 2025 (Exhibit 4.1, Eversource Current Report on Form 8-K filed on October 17, 2025, File No. 001-05324)
31
Certification by the Chairman of the Board, President and Chief Executive Officer of Eversource Energy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1
Certification by the Chief Financial Officer of Eversource Energy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32
Certification by the Chairman of the Board, President and Chief Executive Officer and Chief Financial Officer of Eversource Energy pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (CL&P)
31
Certification by the Chairman and Chief Executive Officer of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1
Certification by the Chief Financial Officer of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32
Certification by the Chairman and Chief Executive Officer and the Chief Financial Officer of The Connecticut Light and Power Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (NSTAR Electric Company)
* 4
Form of 5.20% Debenture due March 1, 2035 (Exhibit 4.2, NSTAR Electric Company Current Report on Form 8-K filed on February 26, 2025, File No. 001-02301)
31
Certification by the Chairman of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1
Certification by the Chief Financial Officer of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32
Certification by the Chairman and the Chief Financial Officer of NSTAR Electric Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (PSNH)
31
Certification by the Chairman of Public Service Company of New Hampshire pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1
Certification by the Chief Financial Officer of Public Service Company of New Hampshire pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32
Certification by the Chairman and the Chief Financial Officer of Public Service Company of New Hampshire pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (Eversource, CL&P, NSTAR Electric, PSNH)
101.INS Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document
101.SCH Inline XBRL Taxonomy Extension Schema
101.CAL Inline XBRL Taxonomy Extension Calculation
101.DEF Inline XBRL Taxonomy Extension Definition
101.LAB Inline XBRL Taxonomy Extension Labels
101.PRE Inline XBRL Taxonomy Extension Presentation
104
The cover page from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline XBRL
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EVERSOURCE ENERGY
November 6, 2025 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
THE CONNECTICUT LIGHT AND POWER COMPANY
November 6, 2025 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NSTAR ELECTRIC COMPANY
November 6, 2025 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
November 6, 2025 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer
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