REGULATORY ACCOUNTING

3 Months Ended

Mar. 31, 2016

Notes To Consolidated Financial Statements [Abstract]

Public Utilities Disclosure [Text Block]

2.       REGULATORY ACCOUNTING

Eversource's Regulated 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.

Management believes it is probable that each of the Regulated companies will recover their respective investments in long-lived assets, including regulatory assets. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to any of the Regulated companies' operations, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the 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 March 31, 2016		As of December 31, 2015
(Millions of Dollars)	Eversource		Eversource
Benefit Costs	$	1,796.2	$	1,828.2
Derivative Liabilities		389.6		388.0
Income Taxes, Net		646.6		650.9
Storm Restoration Costs		450.5		436.9
Goodwill-related		479.8		484.9
Regulatory Tracker Mechanisms		604.4		526.5
Contractual Obligations - Yankee Companies		130.4		134.4
Other Regulatory Assets		125.3		134.0
Total Regulatory Assets		4,622.8		4,583.8
Less: Current Portion		919.3		845.8
Total Long-Term Regulatory Assets	$	3,703.5	$	3,738.0

	As of March 31, 2016								As of December 31, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH		WMECO
Benefit Costs	$	406.3	$	471.4	$	161.5	$	83.4	$	413.6	$	479.9	$	164.2	$	84.9
Derivative Liabilities		385.1		3.9		-		-		380.8		1.3		-		-
Income Taxes, Net		444.3		85.7		29.9		31.3		444.4		85.7		34.5		31.8
Storm Restoration Costs		284.2		118.3		26.6		21.4		271.4		110.9		31.5		23.1
Goodwill-related		-		411.9		-		-		-		416.3		-		-
Regulatory Tracker Mechanisms		104.3		325.9		98.1		45.3		45.1		311.0		101.2		40.1
Other Regulatory Assets		79.9		52.2		31.3		11.4		82.0		56.3		31.5		11.3
Total Regulatory Assets		1,704.1		1,469.3		347.4		192.8		1,637.3		1,461.4		362.9		191.2
Less: Current Portion		324.6		361.3		101.6		61.4		268.3		348.4		105.0		56.2
Total Long-Term Regulatory Assets	$	1,379.5	$	1,108.0	$	245.8	$	131.4	$	1,369.0	$	1,113.0	$	257.9	$	135.0

Regulatory Costs in Other Long-Term Assets:The Regulated companies had $76.1million (including $2.8million for CL&P, $33million for NSTAR Electric,$5.4 million for PSNH and $18million for WMECO) and $75.3million (including $3.1million for CL&P, $35.4million for NSTAR Electric, $4.8 million for PSNH, and $16.7million for WMECO) of additional regulatory costs as of March 31, 2016 and December 31, 2015, respectively, that were included in Other Long-Term Assets on the balance sheets. These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency. However, 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.

Regulatory Liabilities: The components of regulatory liabilities were as follows:

	As of March 31, 2016		As of December 31, 2015
(Millions of Dollars)	Eversource		Eversource
Cost of Removal	$	444.7	$	437.1
Regulatory Tracker Mechanisms		101.1		99.7
AFUDC - Transmission		65.9		66.1
Other Regulatory Liabilities		26.2		18.5
Total Regulatory Liabilities		637.9		621.4
Less: Current Portion		111.4		107.8
Total Long-Term Regulatory Liabilities	$	526.5	$	513.6

	As of March 31, 2016								As of December 31, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH		WMECO
Cost of Removal	$	26.7	$	260.2	$	47.3	$	3.7	$	24.1	$	257.4	$	47.2	$	2.8
Regulatory Tracker Mechanisms		49.7		4.5		2.6		10.9		56.2		3.3		3.4		12.9
AFUDC - Transmission		51.2		5.8		-		8.9		51.5		5.7		-		8.9
Other Regulatory Liabilities		13.1		1.9		2.7		0.1		4.2		1.3		4.2		0.1
Total Regulatory Liabilities		140.7		272.4		52.6		23.6		136.0		267.7		54.8		24.7
Less: Current Portion		63.0		5.0		4.7		9.8		61.2		3.3		6.9		13.1
Total Long-Term Regulatory Liabilities	$	77.7	$	267.4	$	47.9	$	13.8	$	74.8	$	264.4	$	47.9	$	11.6