REGULATORY ACCOUNTING

6 Months Ended

Jun. 30, 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 June 30, 2016		As of December 31, 2015
(Millions of Dollars)	Eversource		Eversource
Benefit Costs	$	1,754.1	$	1,828.2
Derivative Liabilities		413.7		388.0
Income Taxes, Net		644.3		650.9
Storm Restoration Costs		428.9		436.9
Goodwill-related		474.6		484.9
Regulatory Tracker Mechanisms		562.5		526.5
Contractual Obligations - Yankee Companies		117.3		134.4
Other Regulatory Assets		129.6		134.0
Total Regulatory Assets		4,525.0		4,583.8
Less: Current Portion		863.4		845.8
Total Long-Term Regulatory Assets	$	3,661.6	$	3,738.0

	As of June 30, 2016								As of December 31, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH		WMECO
Benefit Costs	$	383.2	$	477.0	$	160.0	$	77.9	$	413.6	$	479.9	$	164.2	$	84.9
Derivative Liabilities		411.3		2.4		-		-		380.8		1.3		-		-
Income Taxes, Net		442.5		86.3		28.2		31.0		444.4		85.7		34.5		31.8
Storm Restoration Costs		269.5		117.7		21.7		20.0		271.4		110.9		31.5		23.1
Goodwill-related		-		407.5		-		-		-		416.3		-		-
Regulatory Tracker Mechanisms		96.6		287.0		120.5		41.5		45.1		311.0		101.2		40.1
Other Regulatory Assets		78.0		50.9		31.1		12.1		82.0		56.3		31.5		11.3
Total Regulatory Assets		1,681.1		1,428.8		361.5		182.5		1,637.3		1,461.4		362.9		191.2
Less: Current Portion		312.2		316.7		122.9		57.7		268.3		348.4		105.0		56.2
Total Long-Term Regulatory Assets	$	1,368.9	$	1,112.1	$	238.6	$	124.8	$	1,369.0	$	1,113.0	$	257.9	$	135.0

Regulatory Costs in Other Long-Term Assets:The Regulated companies had $83million (including $2.6million for CL&P, $38.5million for NSTAR Electric,$5.5 million for PSNH and $19.4million 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 June 30, 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 June 30, 2016		As of December 31, 2015
(Millions of Dollars)	Eversource		Eversource
Cost of Removal	$	448.5	$	437.1
Regulatory Tracker Mechanisms		104.4		99.7
AFUDC - Transmission		65.7		66.1
Other Regulatory Liabilities		28.5		18.5
Total Regulatory Liabilities		647.1		621.4
Less: Current Portion		119.4		107.8
Total Long-Term Regulatory Liabilities	$	527.7	$	513.6

	As of June 30, 2016								As of December 31, 2015
			NSTAR								NSTAR
(Millions of Dollars)	CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH		WMECO
Cost of Removal	$	30.4	$	261.6	$	46.6	$	4.6	$	24.1	$	257.4	$	47.2	$	2.8
Regulatory Tracker Mechanisms		50.0		6.1		3.2		11.1		56.2		3.3		3.4		12.9
AFUDC - Transmission		50.9		6.0		-		8.8		51.5		5.7		-		8.9
Other Regulatory Liabilities		12.6		1.0		3.5		0.1		4.2		1.3		4.2		0.1
Total Regulatory Liabilities		143.9		274.7		53.3		24.6		136.0		267.7		54.8		24.7
Less: Current Portion		63.3		6.9		6.0		11.3		61.2		3.3		6.9		13.1
Total Long-Term Regulatory Liabilities	$	80.6	$	267.8	$	47.3	$	13.3	$	74.8	$	264.4	$	47.9	$	11.6