PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

6 Months Ended

Jun. 30, 2016

Notes To Consolidated Financial Statements [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

7. Pension Benefits and Postretirement Benefits Other than Pensions

Eversource Service sponsors a defined benefit retirement plan (Pension Plan) that covers eligible employees, including, among others, employees of CL&P, NSTAR Electric, PSNH and WMECO. In addition to the Pension Plan, Eversource maintains non-qualified defined benefit retirement plans sponsored by Eversource Service (SERP Plans), which provide benefits in excess of Internal Revenue Code limitations to eligible participants consisting of current and retired employees. Eversource Service also sponsors defined benefit postretirement plans that provide certain benefits, primarily medical, dental and life insurance, to retired employees that met certain age and service eligibility requirements, including, among others, employees of CL&P, NSTAR Electric, PSNH and WMECO (PBOP Plan).

Effective January 1, 2016, the Company refined its method of estimating the discount rate for the service and interest cost components of Pension and PBOP expense from the yield-curve approach to the spot rate methodology, which provides a more precise measurement by matching projected cash flows to the corresponding spot rates on the yield curve. Historically, these components were estimated using the same weighted-average discount rate as for the funded status. The discount rates used to estimate the 2016 service cost were 4.89 percent and 5.14 percent for the Pension and PBOP plans, respectively. The discount rates used to estimate the 2016 interest cost were 3.80 percent and 3.72 percent for the Pension and PBOP plans, respectively. The total pre-tax benefit of this change on Pension and PBOP expense, prior to the capitalized portion and amounts deferred and recovered through rate reconciliation mechanisms, for the three months ended June 30, 2016 was approximately $11.5 million and $2.5 million for the Pension and PBOP plans, respectively, and approximately $23 million and $5 million for the six months ended June 30, 2016, respectively.

On August 5, 2016, the Company amended its PBOP plan. The amendment standardized separate benefit structures that existed within the plan and made other benefit changes. Overall, the plan amendment is expected to reduce the PBOP plan's accumulated projected benefit obligation by approximately $220 million. The PBOP liability will be remeasured as of August 5, 2016, and the PBOP expense for the remainder of 2016 will be recorded using updated assumptions and actuarial calculations.

The components of net periodic benefit expense for the Pension, SERP and PBOP Plans are shown below. The net periodic benefit expense and the intercompany allocations less the capitalized portion of pension, SERP and PBOP amounts are included in Operations and Maintenance expense on the statements of income. Capitalized pension and PBOP amounts relate to employees working on capital projects and are included in Property, Plant and Equipment, Net on the balance sheets. Pension, SERP and PBOP expense reflected in the statements of cash flows for CL&P, NSTAR Electric, PSNH and WMECO does not include the intercompany allocations or the corresponding capitalized portion, as these amounts are cash settled on a short-term basis.

	Pension and SERP				Pension and SERP
Eversource	For the Three Months Ended				For the Six Months Ended
(Millions of Dollars)	June 30, 2016		June 30, 2015⁽¹⁾		June 30, 2016		June 30, 2015⁽¹⁾
Service Cost	$	18.7	$	22.8	$	37.9	$	45.9
Interest Cost		46.4		56.9		92.8		113.3
Expected Return on Plan Assets		(79.5)		(83.9)		(159.1)		(168.2)
Actuarial Loss		31.3		36.5		63.0		75.5
Prior Service Cost		0.9		0.9		1.8		1.8
Total Net Periodic Benefit Expense	$	17.8	$	33.2	$	36.4	$	68.3
Capitalized Pension Expense	$	5.4	$	9.8	$	11.4	$	21.1

	PBOP				PBOP
Eversource	For the Three Months Ended				For the Six Months Ended
(Millions of Dollars)	June 30, 2016		June 30, 2015⁽¹⁾		June 30, 2016		June 30, 2015⁽¹⁾
Service Cost	$	3.1	$	3.9	$	6.3	$	8.1
Interest Cost		9.4		11.7		19.0		23.6
Expected Return on Plan Assets		(15.7)		(16.9)		(31.5)		(33.7)
Actuarial Loss		0.9		1.7		2.1		3.4
Prior Service Credit		-		(0.2)		(0.1)		(0.2)
Total Net Periodic Benefit Expense/(Income)	$	(2.3)	$	0.2	$	(4.2)	$	1.2
Capitalized PBOP Expense/(Income)	$	(1.0)	$	(0.1)	$	(1.9)	$	-

	Pension and SERP
	For the Three Months Ended June 30, 2016								For the Three Months Ended June 30, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH ⁽¹⁾		WMECO
Service Cost	$	4.6	$	3.3	$	2.5	$	0.8	$	6.2	$	3.7	$	3.1	$	1.0
Interest Cost		10.2		8.5		5.1		2.1		12.9		10.0		6.1		2.6
Expected Return on Plan Assets		(18.0)		(16.9)		(9.6)		(4.4)		(19.8)		(17.5)		(10.1)		(4.7)
Actuarial Loss		6.3		8.7		2.6		1.3		8.0		8.7		2.9		1.6
Prior Service Cost		0.4		-		0.1		0.1		0.4		-		0.1		0.1
Total Net Periodic Benefit Expense/(Income)	$	3.5	$	3.6	$	0.7	$	(0.1)	$	7.7	$	4.9	$	2.1	$	0.6
Intercompany Allocations	$	3.5	$	2.2	$	1.0	$	0.6	$	5.8	$	3.4	$	1.6	$	1.1
Capitalized Pension Expense	$	2.2	$	2.0	$	0.4	$	0.1	$	4.7	$	2.7	$	0.9	$	0.5

	Pension and SERP
	For the Six Months Ended June 30, 2016								For the Six Months Ended June 30, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH ⁽¹⁾		WMECO
Service Cost	$	9.6	$	6.7	$	5.0	$	1.6	$	12.2	$	7.5	$	6.0	$	2.2
Interest Cost		21.0		16.8		10.3		4.2		25.4		20.1		12.1		5.2
Expected Return on Plan Assets		(36.2)		(33.8)		(19.3)		(8.8)		(39.4)		(35.1)		(20.2)		(9.4)
Actuarial Loss		13.0		17.0		4.9		2.8		16.2		18.4		5.8		3.2
Prior Service Cost		0.8		-		0.2		0.2		0.8		-		0.2		0.1
Total Net Periodic Benefit Expense	$	8.2	$	6.7	$	1.1	$	-	$	15.2	$	10.9	$	3.9	$	1.3
Intercompany Allocations	$	6.8	$	4.5	$	2.0	$	1.2	$	12.2	$	6.9	$	3.4	$	2.3
Capitalized Pension Expense	$	4.9	$	3.7	$	0.7	$	0.2	$	9.4	$	5.9	$	1.7	$	1.0

	PBOP
	For the Three Months Ended June 30, 2016								For the Three Months Ended June 30, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH ⁽¹⁾		WMECO
Service Cost	$	0.4	$	1.0	$	0.3	$	0.1	$	0.5	$	1.3	$	0.3	$	0.1
Interest Cost		1.3		3.8		0.7		0.3		1.8		4.7		1.0		0.3
Expected Return on Plan Assets		(2.5)		(6.4)		(1.4)		(0.6)		(2.8)		(6.9)		(1.5)		(0.6)
Actuarial Loss		0.3		0.3		0.1		0.0		0.2		0.4		0.1		-
Prior Service Credit		-		-		-		-		-		(0.1)		-		-
Total Net Periodic Benefit Income	$	(0.5)	$	(1.3)	$	(0.3)	$	(0.2)	$	(0.3)	$	(0.6)	$	(0.1)	$	(0.2)
Intercompany Allocations	$	0.2	$	0.1	$	-	$	0.0	$	0.4	$	0.2	$	0.1	$	0.1
Capitalized PBOP Income	$	(0.2)	$	(0.6)	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.2)	$	-	$	-

	PBOP
	For the Six Months Ended June 30, 2016								For the Six Months Ended June 30, 2015
			NSTAR									NSTAR
(Millions of Dollars)	CL&P		Electric			PSNH		WMECO	CL&P			Electric	PSNH ⁽¹⁾		WMECO
Service Cost	$	0.9	$	1.8	$	0.6	$	0.2	$	1.1	$	2.7	$	0.7	$	0.2
Interest Cost		2.7		7.8		1.5		0.5		3.5		9.5		1.9		0.8
Expected Return on Plan Assets		(5.1)		(12.7)		(2.8)		(1.1)		(5.5)		(13.7)		(3.0)		(1.3)
Actuarial Loss		0.5		0.5		0.2		0.0		0.3		1.2		0.3		-
Prior Service Credit		-		-		-		-		-		(0.1)		-		-
Total Net Periodic Benefit Income	$	(1.0)	$	(2.6)	$	(0.5)	$	(0.4)	$	(0.6)	$	(0.4)	$	(0.1)	$	(0.3)
Intercompany Allocations	$	0.3	$	0.1	$	-	$	0.1	$	0.9	$	0.4	$	0.2	$	0.2
Capitalized PBOP Expense/(Income)	$	(0.5)	$	(1.1)	$	(0.1)	$	(0.2)	$	(0.1)	$	(0.1)	$	0.1	$	(0.1)

⁽¹⁾ Amounts excluded approximately $0.8 million and $1.6 million for the three and six months ended June 30, 2015, respectively, that represented amounts included in other deferred debits.