10-Q

	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended June 30, 2017
	or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________

Commission File Number	Registrant; State of Incorporation; Address; and Telephone Number	I.R.S. Employer Identification No.
1-5324	EVERSOURCE ENERGY (a Massachusetts voluntary association) 300 Cadwell Drive Springfield, Massachusetts 01104 Telephone:  (800) 286-5000	04-2147929
0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY (a Connecticut corporation) 107 Selden Street Berlin, Connecticut 06037-1616 Telephone:  (800) 286-5000	06-0303850
1-02301	NSTAR ELECTRIC COMPANY (a Massachusetts corporation) 800 Boylston Street Boston, Massachusetts 02199 Telephone:  (800) 286-5000	04-1278810
1-6392	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	02-0181050
0-7624	WESTERN MASSACHUSETTS ELECTRIC COMPANY (a Massachusetts corporation) 300 Cadwell Drive Springfield, Massachusetts 01104 Telephone:  (800) 286-5000	04-1961130

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
x	¨

Indicate by check mark whether the registrants have submitted electronically and posted on its corporate Web sites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).

Yes	No
x	¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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.  (Check one):

	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
Eversource Energy	x	¨	¨	¨	¨
The Connecticut Light and Power Company	¨	¨	x	¨	¨
NSTAR Electric Company	¨	¨	x	¨	¨
Public Service Company of New Hampshire	¨	¨	x	¨	¨
Western Massachusetts Electric Company	¨	¨	x	¨	¨

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	¨	x
The Connecticut Light and Power Company	¨	x
NSTAR Electric Company	¨	x
Public Service Company of New Hampshire	¨	x
Western Massachusetts Electric Company	¨	x

Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date:

Company - Class of Stock	Outstanding as of July 31, 2017
Eversource Energy Common Shares, $5.00 par value	316,885,808 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	100 shares
Public Service Company of New Hampshire Common Stock, $1.00 par value	301 shares
Western Massachusetts Electric Company Common Stock, $25.00 par value	434,653 shares

Eversource Energy holds all of the 6,035,205 shares, 100 shares, 301 shares, and 434,653 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company, respectively.

NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company each meet the conditions set forth in General Instructions 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, Public Service Company of New Hampshire, and Western Massachusetts Electric Company 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 or 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, HWP Company, The Rocky River Realty Company (a real estate subsidiary), and the consolidated operations of CYAPC and YAEC
CL&P	The Connecticut Light and Power Company
NSTAR Electric	NSTAR Electric Company
PSNH	Public Service Company of New Hampshire
WMECO	Western Massachusetts Electric Company
NSTAR Gas	NSTAR Gas Company
Yankee Gas	Yankee Gas Services Company
NPT	Northern Pass Transmission LLC
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, PSNH, and WMECO, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, the generation activities of PSNH and WMECO, and NPT
Regulators:
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
SJC	Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
Access Northeast	A project being developed jointly by Eversource, Enbridge, Inc. ("Enbridge"), and National Grid plc ("National Grid") through Algonquin Gas Transmission, LLC to bring needed additional natural gas pipeline and storage capacity to New England.
ADIT	Accumulated Deferred Income Taxes
AFUDC	Allowance For Funds Used During Construction
AOCL	Accumulated Other Comprehensive Loss
ARO	Asset Retirement Obligation
Bay State Wind	A project being developed jointly by Eversource and Denmark-based DONG Energy to construct an offshore wind farm off the coast of Massachusetts
Bcf	Billion cubic feet
C&LM	Conservation and Load Management
CfD	Contract for Differences
Clean Air Project	The construction of a wet flue gas desulphurization system, known as "scrubber technology," to reduce mercury emissions of the Merrimack coal-fired generation station in Bow, New Hampshire
CO2	Carbon dioxide
CPSL	Capital Projects Scheduling List
CTA	Competitive Transition Assessment
CWIP	Construction Work in Progress
EDC	Electric distribution company
EPS	Earnings Per Share
ERISA	Employee Retirement Income Security Act of 1974

i

ESOP	Employee Stock Ownership Plan
ESPP	Employee Share Purchase Plan
Eversource 2016 Form 10-K	The Eversource Energy and Subsidiaries 2016 combined Annual Report on Form 10-K as filed with the SEC
FERC ALJ	FERC Administrative Law Judge
Fitch	Fitch Ratings
FMCC	Federally Mandated Congestion Charge
FTR	Financial Transmission Rights
GAAP	Accounting principles generally accepted in the United States of America
GSC	Generation Service Charge
GSRP	Greater Springfield Reliability Project
GWh	Gigawatt-Hours
HQ	Hydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDC	High voltage direct current
Hydro Renewable Energy	Hydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec
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 (the basic unit of electricity energy equal to one kilowatt of power supplied for one hour)
LBR	Lost Base Revenue
LNG	Liquefied natural gas
LRS	Supplier of last resort service
MMcf	Million cubic feet
MGP	Manufactured Gas Plant
MMBtu	One million British thermal units
Moody's	Moody's Investors Services, Inc.
MW	Megawatt
MWh	Megawatt-Hours
NEEWS	New England East-West Solution
NETOs	New England Transmission Owners
Northern Pass	The high-voltage direct-current and associated alternating-current transmission line project from Canada into New Hampshire
NOx	Nitrogen oxides
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 that provides certain retiree benefits, primarily medical, dental and life insurance
PCRBs	Pollution Control Revenue Bonds
Pension Plan	Single uniform noncontributory defined benefit retirement plan
PPA	Pension Protection Act
RECs	Renewable Energy Certificates
Regulatory ROE	The average cost of capital method for calculating the return on equity related to the distribution and generation business segment excluding the wholesale transmission segment
RNS	Regional Network Service
ROE	Return on Equity
RRB	Rate Reduction Bond or Rate Reduction Certificate
RSUs	Restricted share units
S&P	Standard & Poor's Financial Services LLC
SBC	Systems Benefits Charge
SCRC	Stranded Cost Recovery Charge
SERP	Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SIP	Simplified Incentive Plan
SO2	Sulfur dioxide
SS	Standard service
TCAM	Transmission Cost Adjustment Mechanism
TSA	Transmission Service Agreement
UI	The United Illuminating Company

ii

EVERSOURCE ENERGY AND SUBSIDIARIES   

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

WESTERN MASSACHUSETTS ELECTRIC COMPANY

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	2
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Statements of Cash Flows	3
	The Connecticut Light and Power Company (Unaudited)
	Condensed Balance Sheets	4
	Condensed Statements of Income	5
	Condensed Statements of Comprehensive Income	5
	Condensed Statements of Cash Flows	6
	NSTAR Electric Company and Subsidiary (Unaudited)
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statements of Income	8
	Condensed Consolidated Statements of Comprehensive Income	8
	Condensed Consolidated Statements of Cash Flows	9
	Public Service Company of New Hampshire 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 Cash Flows	12
	Western Massachusetts Electric Company (Unaudited)
	Condensed Balance Sheets	13
	Condensed Statements of Income	14
	Condensed Statements of Comprehensive Income	14
	Condensed Statements of Cash Flows	15
	Combined Notes to Condensed Financial Statements (Unaudited)	16
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	33
	The Connecticut Light and Power Company	48
	NSTAR Electric Company and Subsidiary	51
	Public Service Company of New Hampshire and Subsidiary	53
	Western Massachusetts Electric Company	55
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	57
ITEM 4.	Controls and Procedures	57
PART II – OTHER INFORMATION
ITEM 1.	Legal Proceedings	58
ITEM 1A.	Risk Factors	58
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58
ITEM 6.	Exhibits	59
SIGNATURES		61

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2017			As of December 31, 2016
ASSETS
Current Assets:
Cash and Cash Equivalents	$	24,638		$	30,251
Receivables, Net	833,945			847,301
Unbilled Revenues	158,183			168,490
Fuel, Materials, Supplies and Inventory	286,296			328,721
Regulatory Assets	870,393			887,625
Prepayments and Other Current Assets	157,359			215,284
Total Current Assets	2,330,814			2,477,672
Property, Plant and Equipment, Net	22,071,496			21,350,510
Deferred Debits and Other Assets:
Regulatory Assets	3,580,981			3,638,688
Goodwill	3,519,401			3,519,401
Marketable Securities	565,460			544,642
Other Long-Term Assets	590,688			522,260
Total Deferred Debits and Other Assets	8,256,530			8,224,991
Total Assets	$	32,658,840		$	32,053,173
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	937,500		$	1,148,500
Long-Term Debt – Current Portion	1,483,883			773,883
Accounts Payable	587,174			884,521
Regulatory Liabilities	185,930			146,787
Other Current Liabilities	591,222			684,914
Total Current Liabilities	3,785,709			3,638,605
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	5,900,052			5,607,207
Regulatory Liabilities	696,740			702,255
Derivative Liabilities	402,138			413,676
Accrued Pension and SERP	1,073,510			1,141,514
Other Long-Term Liabilities	860,579			853,260
Total Deferred Credits and Other Liabilities	8,933,019			8,717,912
Capitalization:
Long-Term Debt	8,899,021			8,829,354
Noncontrolling Interest - Preferred Stock of Subsidiaries	155,568			155,568
Equity:
Common Shareholders' Equity:
Common Shares	1,669,392			1,669,392
Capital Surplus, Paid In	6,232,501			6,250,224
Retained Earnings	3,364,336			3,175,171
Accumulated Other Comprehensive Loss	(62,935		)	(65,282		)
Treasury Stock	(317,771		)	(317,771		)
Common Shareholders' Equity	10,885,523			10,711,734
Total Capitalization	19,940,112			19,696,656
Total Liabilities and Capitalization	$	32,658,840		$	32,053,173

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Thousands of Dollars, Except Share Information)	2017			2016			2017		2016
Operating Revenues	$	1,762,811		$	1,767,184		$	3,867,946	$	3,822,819
Operating Expenses:
Purchased Power, Fuel and Transmission	549,704			581,260			1,303,353		1,336,119
Operations and Maintenance	302,714			320,714			632,979		640,850
Depreciation	189,881			176,507			376,686		350,492
Amortization of Regulatory (Liabilities)/Assets, Net	(7,807		)	(8,716		)	16,210		12,281
Energy Efficiency Programs	116,398			119,667			262,556		256,842
Taxes Other Than Income Taxes	156,234			154,330			311,455		314,277
Total Operating Expenses	1,307,124			1,343,762			2,903,239		2,910,861
Operating Income	455,687			423,422			964,707		911,958
Interest Expense	107,329			100,492			210,758		198,703
Other Income, Net	21,543			8,038			35,120		10,049
Income Before Income Tax Expense	369,901			330,968			789,069		723,304
Income Tax Expense	137,272			125,439			295,103		271,742
Net Income	232,629			205,529			493,966		451,562
Net Income Attributable to Noncontrolling Interests	1,880			1,880			3,759		3,759
Net Income Attributable to Common Shareholders	$	230,749		$	203,649		$	490,207	$	447,803
Basic and Diluted Earnings Per Common Share	$	0.72		$	0.64		$	1.54	$	1.41
Dividends Declared Per Common Share	$	0.48		$	0.45		$	0.95	$	0.89
Weighted Average Common Shares Outstanding:
Basic	317,391,365			317,785,495			317,427,258		317,651,319
Diluted	317,947,194			318,476,699			318,035,864		318,478,876

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 June 30,						For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016			2017			2016
Net Income	$	232,629		$	205,529		$	493,966		$	451,562
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	514			534			1,048			1,068
Changes in Unrealized Gains on Marketable   Securities	960			1,061			2,605			1,325
Changes in Funded Status of Pension, SERP and   PBOP Benefit Plans	(2,268		)	(1,784		)	(1,306		)	(913		)
Other Comprehensive (Loss)/Income, Net of Tax	(794		)	(189		)	2,347			1,480
Comprehensive Income Attributable to   Noncontrolling Interests	(1,880		)	(1,880		)	(3,759		)	(3,759		)
Comprehensive Income Attributable to Common   Shareholders	$	229,955		$	203,460		$	492,554		$	449,283

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016
Operating Activities:
Net Income	$	493,966		$	451,562
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	376,686			350,492
Deferred Income Taxes	269,505			250,851
Pension, SERP and PBOP Expense, Net	11,242			22,659
Pension and PBOP Contributions	(91,400		)	(65,929		)
Regulatory Over/(Under) Recoveries, Net	85,792			(5,768		)
Amortization of Regulatory Assets, Net	16,210			12,281
Other	(94,666		)	(10,808		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(7,660		)	(76,751		)
Fuel, Materials, Supplies and Inventory	42,425			43,930
Taxes Receivable/Accrued, Net	23,980			230,075
Accounts Payable	(168,221		)	(151,996		)
Other Current Assets and Liabilities, Net	(49,889		)	(72,160		)
Net Cash Flows Provided by Operating Activities	907,970			978,438
Investing Activities:
Investments in Property, Plant and Equipment	(1,146,952		)	(869,168		)
Proceeds from Sales of Marketable Securities	373,853			327,581
Purchases of Marketable Securities	(394,379		)	(322,244		)
Other Investing Activities	(11,050		)	(2,991		)
Net Cash Flows Used in Investing Activities	(1,178,528		)	(866,822		)
Financing Activities:
Cash Dividends on Common Shares	(301,042		)	(282,314		)
Cash Dividends on Preferred Stock	(3,759		)	(3,759		)
Decrease in Notes Payable	(211,000		)	(393,953		)
Issuance of Long-Term Debt	950,000			800,000
Retirements of Long-Term Debt	(150,000		)	(200,000		)
Other Financing Activities	(19,254		)	(16,811		)
Net Cash Flows Provided by/(Used in) Financing Activities	264,945			(96,837		)
Net (Decrease)/Increase in Cash and Cash Equivalents	(5,613		)	14,779
Cash and Cash Equivalents - Beginning of Period	30,251			23,947
Cash and Cash Equivalents - End of Period	$	24,638		$	38,726

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2017		As of December 31, 2016
ASSETS
Current Assets:
Cash	$	5,837	$	6,579
Receivables, Net	371,504		359,132
Accounts Receivable from Affiliated Companies	22,805		16,851
Unbilled Revenues	50,436		50,373
Materials, Supplies and Inventory	57,324		52,050
Regulatory Assets	346,520		335,526
Prepayments and Other Current Assets	14,608		52,670
Total Current Assets	869,034		873,181
Property, Plant and Equipment, Net	7,940,398		7,632,392
Deferred Debits and Other Assets:
Regulatory Assets	1,343,011		1,391,564
Other Long-Term Assets	138,405		137,907
Total Deferred Debits and Other Assets	1,481,416		1,529,471
Total Assets	$	10,290,848	$	10,035,044
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	101,100	$	80,100
Long-Term Debt – Current Portion	400,000		250,000
Accounts Payable	229,435		289,532
Accounts Payable to Affiliated Companies	54,046		88,075
Obligations to Third Party Suppliers	52,854		55,520
Regulatory Liabilities	62,195		47,055
Derivative Liabilities	64,301		77,765
Other Current Liabilities	143,998		120,399
Total Current Liabilities	1,107,929		1,008,446
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	2,071,421		1,987,661
Regulatory Liabilities	101,863		100,138
Derivative Liabilities	402,002		412,750
Accrued Pension, SERP and PBOP	301,691		300,208
Other Long-Term Liabilities	125,996		123,244
Total Deferred Credits and Other Liabilities	3,002,973		2,924,001
Capitalization:
Long-Term Debt	2,513,522		2,516,010
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	2,110,739		2,110,714
Retained Earnings	1,378,895		1,299,374
Accumulated Other Comprehensive Income/(Loss)	238		(53		)
Common Stockholder's Equity	3,550,224		3,470,387
Total Capitalization	6,179,946		6,102,597
Total Liabilities and Capitalization	$	10,290,848	$	10,035,044

The accompanying notes are an integral part of these unaudited condensed financial statements.

4

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(Thousands of Dollars)	2017		2016			2017		2016
Operating Revenues	$	666,558	$	679,787		$	1,398,867	$	1,415,103
Operating Expenses:
Purchased Power and Transmission	207,211		234,504			452,149		507,104
Operations and Maintenance	108,501		122,532			236,727		233,375
Depreciation	60,797		57,532			120,549		114,500
Amortization of Regulatory Assets/(Liabilities), Net	11,422		(2,988		)	24,225		6,891
Energy Efficiency Programs	32,153		35,498			68,744		73,589
Taxes Other Than Income Taxes	70,437		70,568			144,414		146,030
Total Operating Expenses	490,521		517,646			1,046,808		1,081,489
Operating Income	176,037		162,141			352,059		333,614
Interest Expense	35,299		35,978			70,264		72,477
Other Income, Net	3,804		6,275			6,561		7,211
Income Before Income Tax Expense	144,542		132,438			288,356		268,348
Income Tax Expense	53,249		49,563			106,855		98,427
Net Income	$	91,293	$	82,875		$	181,501	$	169,921

The accompanying notes are an integral part of these unaudited condensed financial statements.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)	2017		2016		2017		2016
Net Income	$	91,293	$	82,875	$	181,501	$	169,921
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	91		111		202		222
Changes in Unrealized Gains on Marketable   Securities	33		36		89		45
Other Comprehensive Income, Net of Tax	124		147		291		267
Comprehensive Income	$	91,417	$	83,022	$	181,792	$	170,188

The accompanying notes are an integral part of these unaudited condensed financial statements.

5

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016
Operating Activities:
Net Income	$	181,501		$	169,921
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	120,549			114,500
Deferred Income Taxes	73,277			97,913
Pension, SERP, and PBOP Expense, Net of PBOP Contributions	3,071			3,325
Regulatory Over/(Under) Recoveries, Net	9,762			(40,386		)
Amortization of Regulatory Assets, Net	24,225			6,891
Other	(27,623		)	(4,477		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(22,333		)	(26,729		)
Taxes Receivable/Accrued, Net	41,733			145,852
Accounts Payable	(63,813		)	(38,137		)
Other Current Assets and Liabilities, Net	13,541			774
Net Cash Flows Provided by Operating Activities	353,890			429,447
Investing Activities:
Investments in Property, Plant and Equipment	(419,891		)	(288,630		)
Proceeds from the Sale of Property, Plant and Equipment	—			9,047
Other Investing Activities	132			205
Net Cash Flows Used in Investing Activities	(419,759		)	(279,378		)
Financing Activities:
Cash Dividends on Common Stock	(99,200		)	(99,800		)
Cash Dividends on Preferred Stock	(2,779		)	(2,779		)
Capital Contributions from Eversource Parent	—			145,700
Issuance of Long-Term Debt	300,000			—
Retirement of Long-Term Debt	(150,000		)	—
Increase/(Decrease) in Notes Payable to Eversource Parent	21,000			(184,400		)
Other Financing Activities	(3,894		)	(398		)
Net Cash Flows Provided by/(Used in) Financing Activities	65,127			(141,677		)
Net (Decrease)/Increase in Cash	(742		)	8,392
Cash - Beginning of Period	6,579			1,057
Cash - End of Period	$	5,837		$	9,449

The accompanying notes are an integral part of these unaudited condensed financial statements.

6

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2017		As of December 31, 2016
ASSETS
Current Assets:
Cash and Cash Equivalents	$	4,475	$	3,494
Receivables, Net	261,344		257,557
Accounts Receivable from Affiliated Companies	28,619		8,581
Unbilled Revenues	40,163		31,632
Taxes Receivable	3,532		39,738
Materials, Supplies and Inventory	35,067		62,288
Regulatory Assets	270,230		289,400
Prepayments and Other Current Assets	17,730		14,906
Total Current Assets	661,160		707,596
Property, Plant and Equipment, Net	6,188,535		6,051,835
Deferred Debits and Other Assets:
Regulatory Assets	1,064,099		1,057,746
Prepaid PBOP	109,658		95,073
Other Long-Term Assets	71,657		60,572
Total Deferred Debits and Other Assets	1,245,414		1,213,391
Total Assets	$	8,095,109	$	7,972,822
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	—	$	126,500
Long-Term Debt – Current Portion	400,000		400,000
Accounts Payable	151,056		232,599
Accounts Payable to Affiliated Companies	8,389		91,532
Obligations to Third Party Suppliers	67,254		55,863
Renewable Portfolio Standards Compliance Obligations	44,258		75,571
Regulatory Liabilities	48,350		63,653
Other Current Liabilities	48,736		71,122
Total Current Liabilities	768,043		1,116,840
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,898,526		1,836,292
Regulatory Liabilities	394,527		391,823
Accrued Pension and SERP	111,994		111,827
Other Long-Term Liabilities	130,023		123,194
Total Deferred Credits and Other Liabilities	2,535,070		2,463,136
Capitalization:
Long-Term Debt	2,025,929		1,678,116
Preferred Stock Not Subject to Mandatory Redemption	43,000		43,000
Common Stockholder's Equity:
Common Stock	—		—
Capital Surplus, Paid In	1,047,178		1,045,378
Retained Earnings	1,675,529		1,625,984
Accumulated Other Comprehensive Income	360		368
Common Stockholder's Equity	2,723,067		2,671,730
Total Capitalization	4,791,996		4,392,846
Total Liabilities and Capitalization	$	8,095,109	$	7,972,822

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)	2017		2016		2017		2016
Operating Revenues	$	584,069	$	591,301	$	1,187,848	$	1,205,517
Operating Expenses:
Purchased Power and Transmission	197,291		219,189		430,384		473,525
Operations and Maintenance	85,281		88,954		173,632		183,650
Depreciation	56,181		52,571		111,397		104,457
Amortization of Regulatory Assets, Net	2,984		3,971		7,961		8,654
Energy Efficiency Programs	59,876		61,922		127,188		128,165
Taxes Other Than Income Taxes	34,648		34,194		62,041		66,750
Total Operating Expenses	436,261		460,801		912,603		965,201
Operating Income	147,808		130,500		275,245		240,316
Interest Expense	23,445		20,216		45,473		41,104
Other Income, Net	2,029		2,836		5,277		2,502
Income Before Income Tax Expense	126,392		113,120		235,049		201,714
Income Tax Expense	49,029		44,953		91,524		79,053
Net Income	$	77,363	$	68,167	$	143,525	$	122,661

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 June 30,						For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016			2017			2016
Net Income	$	77,363		$	68,167		$	143,525		$	122,661
Other Comprehensive Loss, Net of Tax:
Changes in Funded Status of SERP Benefit Plan	(4		)	(11		)	(8		)	(21		)
Other Comprehensive Loss, Net of Tax	(4		)	(11		)	(8		)	(21		)
Comprehensive Income	$	77,359		$	68,156		$	143,517		$	122,640

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016
Operating Activities:
Net Income	$	143,525		$	122,661
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	111,397			104,457
Deferred Income Taxes	60,673			48,505
Pension, SERP and PBOP (Benefits)/Expense, Net	(4,944		)	2,192
Pension and PBOP Contributions	(15,360		)	(15,428		)
Regulatory Overrecoveries, Net	8,257			26,277
Amortization of Regulatory Assets, Net	7,961			8,654
Other	(15,309		)	(3,978		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(42,050		)	(56,140		)
Materials, Supplies and Inventory	27,221			35,194
Taxes Receivable/Accrued, Net	36,207			45,608
Accounts Payable	(133,614		)	(88,774		)
Other Current Assets and Liabilities, Net	(45,430		)	(64,084		)
Net Cash Flows Provided by Operating Activities	138,534			165,144
Investing Activities:
Investments in Property, Plant and Equipment	(262,097		)	(199,824		)
Other Investing Activities	(3,617		)	—
Net Cash Flows Used in Investing Activities	(265,714		)	(199,824		)
Financing Activities:
Cash Dividends on Common Stock	(93,000		)	(278,300		)
Cash Dividends on Preferred Stock	(980		)	(980		)
Capital Contributions from Eversource Parent	1,800			—
(Decrease)/Increase in Notes Payable	(126,500		)	266,500
Issuance of Long-Term Debt	350,000			250,000
Retirements of Long-Term Debt	—			(200,000		)
Other Financing Activities	(3,159		)	(2,495		)
Net Cash Flows Provided by Financing Activities	128,161			34,725
Increase in Cash and Cash Equivalents	981			45
Cash and Cash Equivalents - Beginning of Period	3,494			3,346
Cash and Cash Equivalents - End of Period	$	4,475		$	3,391

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

9

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2017			As of December 31, 2016
ASSETS
Current Assets:
Cash	$	192		$	4,646
Receivables, Net	81,937			84,450
Accounts Receivable from Affiliated Companies	3,781			4,185
Unbilled Revenues	41,723			41,004
Taxes Receivable	27,122			6,177
Fuel, Materials, Supplies and Inventory	150,066			162,354
Regulatory Assets	132,424			117,240
Prepayments and Other Current Assets	20,514			22,731
Total Current Assets	457,759			442,787
Property, Plant and Equipment, Net	3,118,456			3,039,313
Deferred Debits and Other Assets:
Regulatory Assets	249,612			245,525
Other Long-Term Assets	47,075			37,720
Total Deferred Debits and Other Assets	296,687			283,245
Total Assets	$	3,872,902		$	3,765,345
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	194,100		$	160,900
Long-Term Debt – Current Portion	180,000			70,000
Accounts Payable	78,218			85,716
Accounts Payable to Affiliated Companies	21,207			29,154
Regulatory Liabilities	13,696			12,659
Other Current Liabilities	46,415			43,253
Total Current Liabilities	533,636			401,682
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	821,799			785,385
Regulatory Liabilities	43,845			44,779
Accrued Pension, SERP and PBOP	101,143			94,652
Other Long-Term Liabilities	50,051			49,442
Total Deferred Credits and Other Liabilities	1,016,838			974,258
Capitalization:
Long-Term Debt	892,333			1,002,048
Common Stockholder's Equity:
Common Stock	—			—
Capital Surplus, Paid In	843,134			843,134
Retained Earnings	591,288			549,286
Accumulated Other Comprehensive Loss	(4,327		)	(5,063		)
Common Stockholder's Equity	1,430,095			1,387,357
Total Capitalization	2,322,428			2,389,405
Total Liabilities and Capitalization	$	3,872,902		$	3,765,345

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

10

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016			2017			2016
Operating Revenues	$	230,383		$	218,517		$	483,541		$	460,807
Operating Expenses:
Purchased Power, Fuel and Transmission	60,442			45,653			122,189			95,867
Operations and Maintenance	65,134			63,788			127,484			123,001
Depreciation	32,447			28,644			63,182			56,879
Amortization of Regulatory (Liabilities)/Assets, Net	(18,937		)	(8,186		)	(13,492		)	332
Energy Efficiency Programs	3,287			3,259			7,032			6,879
Taxes Other Than Income Taxes	23,118			22,287			44,001			44,082
Total Operating Expenses	165,491			155,445			350,396			327,040
Operating Income	64,892			63,072			133,145			133,767
Interest Expense	12,970			12,526			25,780			24,987
Other Income, Net	456			282			1,654			432
Income Before Income Tax Expense	52,378			50,828			109,019			109,212
Income Tax Expense	20,787			19,573			43,116			41,899
Net Income	$	31,591		$	31,255		$	65,903		$	67,313

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 June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)	2017		2016		2017		2016
Net Income	$	31,591	$	31,255	$	65,903	$	67,313
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	290		291		581		581
Changes in Unrealized Gains on Marketable   Securities	58		63		155		79
Other Comprehensive Income, Net of Tax	348		354		736		660
Comprehensive Income	$	31,939	$	31,609	$	66,639	$	67,973

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

11

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016
Operating Activities:
Net Income	$	65,903		$	67,313
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	63,182			56,879
Deferred Income Taxes	37,670			45,976
Regulatory Underrecoveries, Net	(1,964		)	(10,740		)
Amortization of Regulatory (Liabilities)/Assets, Net	(13,492		)	332
Other	(6,763		)	(8,484		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(1,427		)	(5,247		)
Fuel, Materials, Supplies and Inventory	12,288			5,394
Taxes Receivable/Accrued, Net	(20,945		)	33,840
Accounts Payable	2,236			20,417
Other Current Assets and Liabilities, Net	5,419			(1,422		)
Net Cash Flows Provided by Operating Activities	142,107			204,258
Investing Activities:
Investments in Property, Plant and Equipment	(155,737		)	(138,713		)
Other Investing Activities	26			172
Net Cash Flows Used in Investing Activities	(155,711		)	(138,541		)
Financing Activities:
Cash Dividends on Common Stock	(23,900		)	(38,800		)
Capital Contributions from Eversource Parent	—			83,000
Increase/(Decrease) in Notes Payable to Eversource Parent	33,200			(110,400		)
Other Financing Activities	(150		)	(166		)
Net Cash Flows Provided by/(Used in) Financing Activities	9,150			(66,366		)
Net Decrease in Cash	(4,454		)	(649		)
Cash - Beginning of Period	4,646			1,733
Cash - End of Period	$	192		$	1,084

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

12

WESTERN MASSACHUSETTS ELECTRIC COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	As of June 30, 2017			As of December 31, 2016
ASSETS
Current Assets:
Receivables, Net	$	54,178		$	54,940
Accounts Receivable from Affiliated Companies	11,393			14,425
Unbilled Revenues	17,335			15,329
Materials, Supplies and Inventory	5,784			8,618
Regulatory Assets	67,310			64,123
Prepayments and Other Current Assets	1,821			2,595
Total Current Assets	157,821			160,030
Property, Plant and Equipment, Net	1,719,824			1,678,262
Deferred Debits and Other Assets:
Regulatory Assets	124,899			127,291
Other Long-Term Assets	33,780			29,062
Total Deferred Debits and Other Assets	158,679			156,353
Total Assets	$	2,036,324		$	1,994,645
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	68,700		$	51,000
Accounts Payable	32,258			56,036
Accounts Payable to Affiliated Companies	28,484			19,478
Obligations to Third Party Suppliers	9,458			10,508
Renewable Portfolio Standards Compliance Obligations	11,114			20,383
Regulatory Liabilities	11,062			14,888
Other Current Liabilities	12,574			14,984
Total Current Liabilities	173,650			187,277
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	523,028			490,793
Regulatory Liabilities	20,887			17,227
Accrued Pension, SERP and PBOP	19,798			20,390
Other Long-Term Liabilities	45,471			41,308
Total Deferred Credits and Other Liabilities	609,184			569,718
Capitalization:
Long-Term Debt	566,293			566,536
Common Stockholder's Equity:
Common Stock	10,866			10,866
Capital Surplus, Paid In	444,398			444,398
Retained Earnings	234,051			218,212
Accumulated Other Comprehensive Loss	(2,118		)	(2,362		)
Common Stockholder's Equity	687,197			671,114
Total Capitalization	1,253,490			1,237,650
Total Liabilities and Capitalization	$	2,036,324		$	1,994,645

The accompanying notes are an integral part of these unaudited condensed financial statements.   

13

WESTERN MASSACHUSETTS ELECTRIC COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016		2017			2016
Operating Revenues	$	120,744		$	116,396	$	250,879		$	244,491
Operating Expenses:
Purchased Power and Transmission	33,858			32,665		74,724			72,228
Operations and Maintenance	21,743			22,088		44,242			43,893
Depreciation	12,296			11,476		24,298			22,847
Amortization of Regulatory (Liabilities)/Assets, Net	(361		)	992		(849		)	2,203
Energy Efficiency Programs	8,079			10,347		18,743			21,203
Taxes Other Than Income Taxes	10,197			9,600		20,624			19,833
Total Operating Expenses	85,812			87,168		181,782			182,207
Operating Income	34,932			29,228		69,097			62,284
Interest Expense	6,182			6,072		12,431			12,075
Other Income/(Loss), Net	272			104		349			(46		)
Income Before Income Tax Expense	29,022			23,260		57,015			50,163
Income Tax Expense	11,401			9,995		22,176			20,071
Net Income	$	17,621		$	13,265	$	34,839		$	30,092

The accompanying notes are an integral part of these unaudited condensed financial statements.       

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)	2017		2016		2017		2016
Net Income	$	17,621	$	13,265	$	34,839	$	30,092
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	110		110		219		219
Changes in Unrealized Gains on Marketable   Securities	9		10		25		13
Other Comprehensive Income, Net of Tax	119		120		244		232
Comprehensive Income	$	17,740	$	13,385	$	35,083	$	30,324

The accompanying notes are an integral part of these unaudited condensed financial statements.       

14

WESTERN MASSACHUSETTS ELECTRIC COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
(Thousands of Dollars)	2017			2016
Operating Activities:
Net Income	$	34,839		$	30,092
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	24,298			22,847
Deferred Income Taxes	31,549			17,155
Regulatory Over/(Under) Recoveries, Net	1,170			(2,651		)
Amortization of Regulatory (Liabilities)/Assets, Net	(849		)	2,203
Other	(3,767		)	(2,547		)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(1,178		)	6,500
Taxes Receivable/Accrued, Net	(177		)	32,985
Accounts Payable	717			(13,176		)
Other Current Assets and Liabilities, Net	(8,942		)	2,502
Net Cash Flows Provided by Operating Activities	77,660			95,910
Investing Activities:
Investments in Property, Plant and Equipment	(76,397		)	(71,459		)
Proceeds from Sales of Marketable Securities	863			1,484
Purchases of Marketable Securities	(826		)	(1,457		)
Net Cash Flows Used in Investing Activities	(76,360		)	(71,432		)
Financing Activities:
Cash Dividends on Common Stock	(19,000		)	(19,000		)
Capital Contributions from Eversource Parent	—			35,000
Increase/(Decrease) in Notes Payable to Eversource Parent	17,700			(89,700		)
Issuance of Long-Term Debt	—			50,000
Other Financing Activities	—			(191		)
Net Cash Flows Used in Financing Activities	(1,300		)	(23,891		)
Net Increase in Cash	—			587
Cash - Beginning of Period	—			834
Cash - End of Period	$	—		$	1,421

The accompanying notes are an integral part of these unaudited condensed financial statements.

15

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

WESTERN MASSACHUSETTS ELECTRIC COMPANY

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, PSNH, WMECO, Yankee Gas and NSTAR Gas.  Eversource provides energy delivery service to approximately 3.7 million electric and natural gas customers through these six regulated utilities in Connecticut, Massachusetts and New Hampshire.  

On June 2, 2017, Eversource announced that it had entered into an agreement to acquire Aquarion Water Company ("Aquarion") from Macquarie Infrastructure Partners for $1.675 billion, consisting of approximately $880 million in cash and $795 million of assumed Aquarion debt. The transaction requires approval from PURA, the DPU, the NHPUC, the Maine PUC, and the Federal Communications Commission, and is also subject to a review under the Hart-Scott-Rodino Act. On June 29, 2017, Eversource and Aquarion filed joint applications with regulatory agencies in Connecticut, Massachusetts, New Hampshire and Maine requesting approval of the transaction. The transaction is expected to close by December 31, 2017.

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 and WMECO 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 Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2016 Form 10-K, which was filed with the SEC.  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, PSNH's and WMECO's financial position as of June 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016, and the cash flows for the six months ended June 30, 2017 and 2016.  The results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and the cash flows for the six months ended June 30, 2017 and 2016 are not necessarily indicative of the results expected for a full year.  

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's, PSNH's and WMECO's combined ownership interest in each of these entities is greater than 50 percent.  Intercompany transactions between CL&P, NSTAR Electric, PSNH and WMECO and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource's utility subsidiaries' distribution (including generation assets) 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 Effective:  In May 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which amends existing revenue recognition guidance and is required to be applied retrospectively (either to each reporting period presented or cumulatively at the date of initial application).  The Company is evaluating the requirements and potential impacts of ASU 2014-09 and will implement the standard in the first quarter of 2018 cumulatively at the date of initial application. While the guidance continues to be interpreted on an industry specific level, implementation of the ASU is not currently expected to have a material effect on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

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In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities, which is required to be implemented in the first quarter of 2018.  The ASU will remove the available-for-sale designation for equity securities, whereby changes in fair value are recorded in accumulated other comprehensive income within shareholders' equity, and will require changes in fair value of all equity securities to be recorded in earnings beginning on January 1, 2018, with the unrealized gain or loss on available-for-sale equity securities as of that date reclassified to retained earnings as a cumulative effect of adoption.  The fair value of available-for-sale equity securities subject to this guidance as of June 30, 2017 was approximately $49 million.  The remaining available-for-sale equity securities included in marketable securities on the balance sheet are held in nuclear decommissioning trusts and are subject to regulatory accounting treatment and will not be impacted by this guidance. Implementation of the ASU for other financial instruments is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

In February 2016, the FASB issued ASU 2016-02, Leases, which changes existing lease accounting guidance and is required to be applied in the first quarter of 2019, with earlier application permitted.  The ASU is required to be implemented for leases beginning on the date of initial application. For prior periods presented, leases are required to be recognized and measured using a modified retrospective approach.  The Company is reviewing the requirements of ASU 2016-02, including balance sheet recognition of leases previously deemed operating leases, and expects to implement the ASU in the first quarter of 2019.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, required to be implemented in the first quarter of 2018. The ASU requires separate presentation of service cost from other components of net pension and PBOP costs, with the other components presented as non-operating income and not subject to capitalization. The Company is assessing the impacts of the ASU on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO; however, implementation of the ASU is not expected to have a material impact on the net income of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

C.    Provision for Uncollectible Accounts

Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, presents its receivables at estimated net realizable value by maintaining a provision for uncollectible accounts.  This provision is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category.  The estimate is based upon historical collection and write-off experience and management's assessment of collectability from customers.  Management continuously assesses the collectability of receivables and adjusts collectability estimates based on actual experience.  Receivable balances are written off against the provision for uncollectible accounts when the customer accounts are terminated and these balances are deemed to be uncollectible.

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 WMECO and NSTAR Gas also to recover in rates, amounts associated with certain uncollectible hardship accounts receivable.  Certain of NSTAR Electric's uncollectible hardship accounts receivable are expected to be recovered in future rates, similar to WMECO and NSTAR Gas. These uncollectible customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets.

The total provision for uncollectible accounts and for uncollectible hardship accounts, which is included in the total provision, is included in Receivables, Net on the balance sheets, and was as follows:

	Total Provision for Uncollectible Accounts				Uncollectible Hardship
(Millions of Dollars)	As of June 30, 2017		As of December 31, 2016		As of June 30, 2017		As of December 31, 2016
Eversource	$	199.0	$	200.6	$	124.5	$	119.9
CL&P	77.5		86.4		64.5		67.7
NSTAR Electric	54.5		54.8		30.7		26.2
PSNH	11.0		9.9		—		—
WMECO	16.4		15.5		10.6		9.9

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 the 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 and AROs, and the estimated fair value of preferred stock and long-term debt.

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, and Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.  The three 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.  

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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.  

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 10, "Fair Value of Financial Instruments," to the financial statements.

E.    Other Income, Net

Items included within Other Income, Net on the statements of income primarily consist of investment income/(loss), interest income, AFUDC related to equity funds, and income/(loss) related to equity method investments.  Investment income/(loss) primarily relates to debt and equity securities held in trust.  For further information, see Note 5, "Marketable Securities," to the financial statements.  For the three and six months ended June 30, 2017, Eversource had equity in earnings of $13.3 million and $17.9 million, respectively, related to its equity method investments.

F.    Other Taxes

Gross receipts taxes levied by the state of Connecticut are collected by CL&P and Yankee Gas from their respective customers.  These gross receipts taxes are shown 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 Six Months Ended
(Millions of Dollars)	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Eversource	$	35.7	$	37.5	$	77.9	$	79.8
CL&P	31.8		33.6		65.7		69.6

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 June 30, 2017		As of June 30, 2016
Eversource	$	172.0	$	186.3
CL&P	85.9		59.5
NSTAR Electric	29.5		38.5
PSNH	20.2		31.1
WMECO	10.6		14.6

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 its 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.

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Regulatory Assets:  The components of regulatory assets were as follows:

Eversource	As of June 30, 2017		As of December 31, 2016
(Millions of Dollars)
Benefit Costs	$	1,833.6	$	1,817.8
Derivative Liabilities	398.1		423.3
Income Taxes, Net	652.5		644.5
Storm Restoration Costs	352.9		385.3
Goodwill-related	454.2		464.4
Regulatory Tracker Mechanisms	584.3		576.6
Asset Retirement Obligations	103.0		99.3
Other Regulatory Assets	72.8		115.1
Total Regulatory Assets	4,451.4		4,526.3
Less:  Current Portion	870.4		887.6
Total Long-Term Regulatory Assets	$	3,581.0	$	3,638.7

	As of June 30, 2017								As of December 31, 2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO		CL&P		NSTAR Electric		PSNH		WMECO
Benefit Costs	$	423.5	$	445.6	$	189.7	$	86.4	$	429.3	$	438.6	$	184.2	$	86.7
Derivative Liabilities	394.8		2.3		—		—		420.5		2.8		—		—
Income Taxes, Net	440.7		91.2		22.4		31.2		437.0		89.7		24.2		30.8
Storm Restoration Costs	210.3		115.3		12.9		14.4		239.8		112.5		17.1		15.9
Goodwill-related	—		389.9		—		—		—		398.7		—		—
Regulatory Tracker Mechanisms	153.0		240.7		125.7		50.5		123.9		257.3		104.5		46.7
Asset Retirement Obligations	34.5		33.2		16.6		4.4		33.2		31.9		16.2		4.2
Other Regulatory Assets	32.7		16.1		14.7		5.3		43.4		15.6		16.5		7.1
Total Regulatory Assets	1,689.5		1,334.3		382.0		192.2		1,727.1		1,347.1		362.7		191.4
Less:  Current Portion	346.5		270.2		132.4		67.3		335.5		289.4		117.2		64.1
Total Long-Term Regulatory Assets	$	1,343.0	$	1,064.1	$	249.6	$	124.9	$	1,391.6	$	1,057.7	$	245.5	$	127.3

Regulatory Costs in Other Long-Term Assets:  Eversource's Regulated companies had $103.0 million (including $3.5 million for CL&P, $40.1 million for NSTAR Electric, $16.4 million for PSNH, and $24.3 million for WMECO) and $86.3 million (including $5.9 million for CL&P, $35.0 million for NSTAR Electric, $8.2 million for PSNH, and $20.1 million for WMECO) of additional regulatory costs as of June 30, 2017 and December 31, 2016, 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:

Eversource	As of June 30, 2017		As of December 31, 2016
(Millions of Dollars)
Cost of Removal	$	474.4	$	459.7
Benefit Costs	129.5		136.2
Regulatory Tracker Mechanisms	176.3		145.3
AFUDC - Transmission	65.6		65.8
Other Regulatory Liabilities	36.8		42.1
Total Regulatory Liabilities	882.6		849.1
Less:  Current Portion	185.9		146.8
Total Long-Term Regulatory Liabilities	$	696.7	$	702.3

	As of June 30, 2017								As of December 31, 2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO		CL&P		NSTAR Electric		PSNH		WMECO
Cost of Removal	$	43.4	$	277.4	$	42.8	$	12.4	$	38.8	$	271.6	$	44.1	$	8.6
Benefit Costs	—		109.4		—		—		—		113.1		—		—
Regulatory Tracker Mechanisms	47.5		48.4		11.7		10.9		37.2		63.7		10.7		14.7
AFUDC - Transmission	49.5		7.4		—		8.7		50.2		6.9		—		8.7
Other Regulatory Liabilities	23.7		0.3		3.0		—		21.0		0.2		2.7		0.1
Total Regulatory Liabilities	164.1		442.9		57.5		32.0		147.2		455.5		57.5		32.1
Less:  Current Portion	62.2		48.4		13.7		11.1		47.1		63.7		12.7		14.9
Total Long-Term Regulatory Liabilities	$	101.9	$	394.5	$	43.8	$	20.9	$	100.1	$	391.8	$	44.8	$	17.2

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3.    PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize utility property, plant and equipment by asset category:

Eversource	As of June 30, 2017			As of December 31, 2016
(Millions of Dollars)
Distribution - Electric	$	14,012.6		$	13,716.9
Distribution - Natural Gas	3,094.3			3,010.4
Transmission - Electric	8,817.6			8,517.4
Generation	1,215.4			1,224.2
Electric and Natural Gas Utility	27,139.9			26,468.9
Other (1)	594.0			591.6
Property, Plant and Equipment, Gross	27,733.9			27,060.5
Less:  Accumulated Depreciation
Electric and Natural Gas Utility	(6,706.6		)	(6,480.4		)
Other	(262.8		)	(242.0		)
Total Accumulated Depreciation	(6,969.4		)	(6,722.4		)
Property, Plant and Equipment, Net	20,764.5			20,338.1
Construction Work in Progress (2)	1,307.0			1,012.4
Total Property, Plant and Equipment, Net	$	22,071.5		$	21,350.5

⁽¹⁾ These assets are primarily comprised of building improvements, computer software, hardware and equipment at Eversource Service.

⁽²⁾ As of June 30, 2017, the total CWIP related to NPT was approximately $190 million.

	As of June 30, 2017												As of December 31, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Distribution	$	5,717.1		$	5,453.3		$	2,018.6		$	863.6		$	5,562.9		$	5,402.3		$	1,949.8		$	841.9
Transmission	4,016.4			2,530.3			1,103.1			1,119.4			3,912.9			2,435.8			1,059.3			1,061.1
Generation	—			—			1,179.4			36.0			—			—			1,188.2			36.0
Property, Plant and Equipment, Gross	9,733.5			7,983.6			4,301.1			2,019.0			9,475.8			7,838.1			4,197.3			1,939.0
Less:  Accumulated Depreciation	(2,156.7		)	(2,104.2		)	(1,290.1		)	(352.0		)	(2,082.4		)	(2,025.4		)	(1,254.7		)	(338.8		)
Property, Plant and Equipment, Net	7,576.8			5,879.4			3,011.0			1,667.0			7,393.4			5,812.7			2,942.6			1,600.2
Construction Work in Progress	363.6			309.1			107.5			52.8			239.0			239.1			96.7			78.1
Total Property, Plant and Equipment, Net	$	7,940.4		$	6,188.5		$	3,118.5		$	1,719.8		$	7,632.4		$	6,051.8		$	3,039.3		$	1,678.3

4.    DERIVATIVE INSTRUMENTS

The Regulated 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.  The 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 or Operating Revenues on the statements of income, as applicable, as electricity or natural gas is delivered.

Derivative contracts that are not designated as normal are recorded at fair value as current or long-term Derivative Assets or Derivative Liabilities on the balance sheets.  For the Regulated 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.  

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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 June 30, 2017									As of December 31, 2016
(Millions of Dollars)	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:
Eversource	$	—		$	—		$	—		$	6.0		$	—		$	6.0
Level 3:
Eversource, CL&P	11.2			(7.7		)	3.5			13.9			(9.4		)	4.5
Long-Term Derivative Assets:
Level 2:
Eversource	$	—		$	—		$	—		$	0.3		$	(0.1	)	$	0.2
Level 3:
Eversource, CL&P	76.0			(8.0		)	68.0			77.3			(11.7		)	65.6
Current Derivative Liabilities:
Level 2:
Eversource	$	(1.1	)	$	0.1		$	(1.0	)	$	—		$	—		$	—
Level 3:
Eversource	(66.5		)	—			(66.5		)	(79.7		)	—			(79.7		)
CL&P	(64.3		)	—			(64.3		)	(77.8		)	—			(77.8		)
NSTAR Electric	(2.2		)	—			(2.2		)	(1.9		)	—			(1.9		)
Long-Term Derivative Liabilities:
Level 3:
Eversource	$	(402.1	)	$	—		$	(402.1	)	$	(413.7	)	$	—		$	(413.7	)
CL&P	(402.0		)	—			(402.0		)	(412.8		)	—			(412.8		)
NSTAR Electric	(0.1		)	—			(0.1		)	(0.9		)	—			(0.9		)

⁽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.

For further information on the fair value of derivative contracts, see Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," to the financial statements.

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 capacity of these contracts is 787 MW.  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.  In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.   

NSTAR Electric has a renewable energy contract to purchase 0.1 million MWh of energy per year through 2018 and a capacity-related contract to purchase up to 35 MW per year through 2019.

As of June 30, 2017 and December 31, 2016, Eversource had New York Mercantile Exchange ("NYMEX") financial contracts for natural gas futures in order to reduce variability associated with the purchase price of approximately 6.3 million and 9.2 million MMBtu of natural gas, respectively.

For the three months ended June 30, 2017 and 2016, there were losses of $4.4 million and $42.9 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts. For the six months ended June 30, 2017 and 2016, these losses were $30.9 million and $74.4 million, respectively.

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Fair Value Measurements of Derivative Instruments

Derivative contracts classified as Level 2 in the fair value hierarchy relate to the financial contracts for natural gas futures.  Prices are obtained from broker quotes and are based on actual market activity.  The contracts are valued using NYMEX natural gas prices.  Valuations of these contracts also incorporate discount rates using the yield curve approach.  

The fair value of derivative contracts classified as Level 3 utilizes significant unobservable inputs.  The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions relating to exit price.  Significant observable inputs for valuations of these contracts include energy and energy-related product prices in future years for which quoted prices in an active market exist.  Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy and energy-related products, and accounting requirements.  The future power and capacity prices for periods that are not quoted in an active market or established at auction are based on available market data and are escalated based on estimates of inflation in order to address the full term of the contract.  

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled 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.  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.  

The following is a summary of Eversource's, including CL&P's and NSTAR Electric's, Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts:

	As of June 30, 2017						As of December 31, 2016
	Range					Period Covered	Range					Period Covered
Capacity Prices:
Eversource, CL&P	$	5.00	—	8.70	per kW-Month	2021 - 2026	$	5.50	—	8.70	per kW-Month	2020 - 2026
Forward Reserve:
Eversource, CL&P	$	1.40	—	2.00	per kW-Month	2017 - 2024	$	1.40	—	2.00	per kW-Month	2017 - 2024
REC Prices:
Eversource, NSTAR Electric	$	26.00	—	27.50	per REC	2017 - 2018	$	24.00	—	29.00	per REC	2017 - 2018

Exit price premiums of 2 percent through 19 percent are also applied on these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts.

Significant increases or decreases in future energy or capacity prices in isolation would decrease or increase, respectively, the fair value of the derivative liability.  Any increases in risk premiums would increase the fair value of the derivative liability.  Changes in these fair values are recorded as a regulatory asset or liability and do not impact net income.  

Valuations using significant unobservable inputs:  The following table presents changes in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis.  The derivative assets and liabilities are presented on a net basis.

	For the Three Months Ended June 30,
	2017									2016
(Millions of Dollars)	Eversource			CL&P			NSTAR   Electric			Eversource			CL&P			NSTAR   Electric
Derivatives, Net:
Fair Value as of Beginning of Period	$	(416.0	)	$	(413.5	)	$	(2.5	)	$	(387.7	)	$	(385.1	)	$	(2.6	)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets and Liabilities	(3.0		)	(0.6		)	(2.4		)	(46.6		)	(46.8		)	0.2
Settlements	21.9			19.3			2.6			21.7			20.6			1.1
Fair Value as of End of Period	$	(397.1	)	$	(394.8	)	$	(2.3	)	$	(412.6	)	$	(411.3	)	$	(1.3	)
	For the Six Months Ended June 30,
	2017									2016
(Millions of Dollars)	Eversource			CL&P			NSTAR   Electric			Eversource			CL&P			NSTAR   Electric
Derivatives, Net:
Fair Value as of Beginning of Period	$	(423.3	)	$	(420.5	)	$	(2.8	)	$	(380.9	)	$	(380.8	)	$	(0.1	)
Net Realized/Unrealized Losses Included in Regulatory Assets and Liabilities	(18.4		)	(15.2		)	(3.2		)	(76.6		)	(72.2		)	(4.4		)
Settlements	44.6			40.9			3.7			44.9			41.7			3.2
Fair Value as of End of Period	$	(397.1	)	$	(394.8	)	$	(2.3	)	$	(412.6	)	$	(411.3	)	$	(1.3	)

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5.    MARKETABLE SECURITIES

Eversource maintains trusts that hold marketable securities to fund certain non-qualified executive benefits. These trusts are not subject to regulatory oversight by state or federal agencies.  CYAPC and YAEC maintain legally restricted trusts, each of which holds marketable securities, to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Trading Securities:  Eversource has elected to record certain equity securities as trading securities, with the changes in fair values recorded in Other Income, Net on the statements of income.  As of December 31, 2016, these securities were classified as Level 1 in the fair value hierarchy and totaled $9.6 million.  These securities were sold during the first quarter of 2017 and were no longer held as of June 30, 2017. For the three and six months ended June 30, 2016, net gains on these securities of $0.2 million and $0.5 million, respectively, were recorded in Other Income, Net on the statements of income. Dividend income is recorded in Other Income, Net when dividends are declared.  

Available-for-Sale Securities:  The following is a summary of available-for-sale securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.

	As of June 30, 2017									As of December 31, 2016
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	$	290.3	$	4.7	$	(0.5	)	$	294.5	$	296.2	$	1.1	$	(2.1	)	$	295.2
Equity Securities	202.1		83.2		—			285.3		203.3		62.3		(1.2		)	264.4

Eversource's debt and equity securities include CYAPC's and YAEC's marketable securities held in nuclear decommissioning trusts in the amounts of $485.9 million and $466.7 million as of June 30, 2017 and December 31, 2016, respectively.  Unrealized gains and losses for these nuclear decommissioning trusts are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.  

Unrealized Losses and Other-than-Temporary Impairment:  There have been no significant unrealized losses, other-than-temporary impairments or credit losses for the three and six months ended June 30, 2017 and 2016. Factors considered in determining whether a credit loss exists include the duration and severity of the impairment, adverse conditions specifically affecting the issuer, and the payment history, ratings and rating changes of the security.  For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated.

Realized Gains and Losses:  Realized gains and losses on available-for-sale securities are recorded in Other Income, Net for Eversource's non-qualified benefit trust and are offset in Other Long-Term Liabilities for CYAPC and YAEC.  Eversource utilizes the specific identification basis method for the Eversource non-qualified benefit trust, and the average cost basis method for the CYAPC and YAEC nuclear decommissioning trusts to compute the realized gains and losses on the sale of available-for-sale securities.

Contractual Maturities:  As of June 30, 2017, the contractual maturities of available-for-sale debt securities were as follows:  

Eversource (Millions of Dollars)	Amortized Cost		Fair Value
Less than one year (1)	$	53.0	$	52.9
One to five years	52.6		53.4
Six to ten years	54.7		56.3
Greater than ten years	130.0		131.9
Total Debt Securities	$	290.3	$	294.5

⁽¹⁾  Amounts in the Less than one year category include securities in the CYAPC and YAEC nuclear decommissioning trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.

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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 June 30, 2017		As of December 31, 2016
Level 1:
Mutual Funds and Equities	$	285.3	$	274.0
Money Market Funds	29.7		54.8
Total Level 1	$	315.0	$	328.8
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	53.9	$	63.0
Corporate Debt Securities	67.8		41.1
Asset-Backed Debt Securities	18.6		18.5
Municipal Bonds	113.1		107.5
Other Fixed Income Securities	11.4		10.3
Total Level 2	$	264.8	$	240.4
Total Marketable Securities	$	579.8	$	569.2

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 instrument 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.

6.    SHORT-TERM AND LONG-TERM DEBT

Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.  As of June 30, 2017 and December 31, 2016, Eversource parent had $937.5 million and approximately $1.0 billion, respectively, in short-term borrowings outstanding under the Eversource parent commercial paper program, leaving $512.5 million and $428.0 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively. The weighted-average interest rate on these borrowings as of June 30, 2017 and December 31, 2016 was 1.34 percent and 0.88 percent, respectively. As of June 30, 2017, there were intercompany loans from Eversource parent of $101.1 million to CL&P, $194.1 million to PSNH, and $68.7 million to WMECO.  As of December 31, 2016, there were intercompany loans from Eversource parent of $80.1 million to CL&P, $160.9 million to PSNH and $51.0 million to WMECO.  Eversource parent, CL&P, PSNH, WMECO, NSTAR Gas and Yankee Gas are parties to a five-year $1.45 billion revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

NSTAR Electric has a $450 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. As of June 30, 2017, NSTAR Electric had no short-term borrowings outstanding and as of December 31, 2016, NSTAR Electric had $126.5 million in short-term borrowings outstanding under its commercial paper program, leaving $450.0 million and $323.5 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively.  The weighted-average interest rate on these borrowings as of December 31, 2016 was 0.71 percent.  NSTAR Electric is a party to a five-year $450 million revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop NSTAR Electric's $450 million commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

Amounts outstanding under the commercial paper programs are included in Notes Payable for Eversource and NSTAR Electric and are classified in current liabilities on the balance sheets as all borrowings are outstanding for no more than 364 days at one time.  Intercompany loans from Eversource parent to CL&P, PSNH and WMECO are included in Notes Payable to Eversource Parent and are classified in current liabilities on their respective balance sheets.  Intercompany loans from Eversource parent to CL&P, PSNH and WMECO are eliminated in consolidation on Eversource's balance sheets.

Long-Term Debt Issuances:  In March 2017, Eversource parent issued $300 million of 2.75 percent Series K Senior Notes due to mature in 2022. The proceeds, net of issuance costs, were used to repay short-term borrowings under the Eversource parent commercial paper program.

In March 2017, CL&P issued $300 million of 3.20 percent 2017 Series A First and Refunding Mortgage Bonds due to mature in 2027. The proceeds, net of issuance costs, were used to repay short-term borrowings.

In May 2017, NSTAR Electric issued $350 million of 3.20 percent Debentures due to mature in 2027. The proceeds, net of issuance costs, were used to repay short-term borrowings and fund capital expenditures and working capital.

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Long-Term Debt Repayments:  In March 2017, CL&P repaid at maturity the $150 million5.375 percent 2007 Series A First and Refunding Mortgage Bonds, using short term borrowings.

Long-Term Debt Issuance Authorizations: On January 4, 2017, PURA approved CL&P's request for authorization to issue up to $1.325 billion in long-term debt through December 31, 2020. On March 30, 2017, the DPU approved NSTAR Electric's request for authorization to issue up to $700 million in long-term debt through December 31, 2018.

7.    PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

Eversource Service sponsors a defined benefit retirement plan ("Pension Plan") that covers eligible participants.  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.  Eversource Service also sponsors a defined benefit postretirement plan that provides 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 participants that meet certain age and service eligibility requirements ("PBOP Plan").

In August 2016, the Company amended its PBOP Plan, which standardized separate benefit structures that existed within the plan and made other benefit changes. The remeasurement resulted in a prior service credit of $5.3 million and $10.7 million for the three and six months ended June 30, 2017, which was reflected as a reduction to net periodic benefit expense for PBOP benefits. The majority of this amount will be deferred for future refund to customers.

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 portions of pension, SERP and PBOP amounts, are included in Operations and Maintenance expense on the statements of income.  Capitalized 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
Eversource	For the Three Months Ended						For the Six Months Ended
(Millions of Dollars)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Service Cost	$	17.4		$	18.7		$	36.4		$	37.9
Interest Cost	47.2			46.4			93.5			92.8
Expected Return on Pension Plan Assets	(83.5		)	(79.5		)	(167.0		)	(159.1		)
Actuarial Loss	33.9			31.3			67.5			63.0
Prior Service Cost	1.1			0.9			2.0			1.8
Total Net Periodic Benefit Expense	$	16.1		$	17.8		$	32.4		$	36.4
Capitalized Pension Expense	$	5.5		$	5.4		$	10.9		$	11.4
	PBOP
Eversource	For the Three Months Ended						For the Six Months Ended
(Millions of Dollars)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Service Cost	$	2.4		$	3.1		$	4.7		$	6.3
Interest Cost	6.3			9.4			13.5			19.0
Expected Return on Plan Assets	(16.0		)	(15.7		)	(31.9		)	(31.5		)
Actuarial Loss	2.5			0.9			4.6			2.1
Prior Service Credit	(5.3		)	—			(10.7		)	(0.1		)
Total Net Periodic Benefit Income	$	(10.1	)	$	(2.3	)	$	(19.8	)	$	(4.2	)
Capitalized PBOP Income	$	(4.9	)	$	(1.0	)	$	(9.5	)	$	(1.9	)

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	Pension and SERP
	For the Three Months Ended June 30, 2017												For the Three Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	4.6		$	3.1		$	2.4		$	0.7		$	4.6		$	3.3		$	2.5		$	0.8
Interest Cost	10.5			8.6			5.3			2.1			10.2			8.5			5.1			2.1
Expected Return on Pension Plan Assets	(17.8		)	(17.5		)	(10.0		)	(4.4		)	(18.0		)	(16.9		)	(9.6		)	(4.4		)
Actuarial Loss	6.8			8.9			3.0			1.5			6.3			8.7			2.6			1.3
Prior Service Cost	0.4			0.1			0.1			0.1			0.4			—			0.1			0.1
Total Net Periodic Benefit Expense/(Income)	$	4.5		$	3.2		$	0.8		$	—		$	3.5		$	3.6		$	0.7		$	(0.1	)
Intercompany Allocations	$	2.4		$	1.8		$	0.8		$	0.5		$	3.5		$	2.2		$	1.0		$	0.6
Capitalized Pension Expense	$	2.4		$	1.9		$	0.4		$	0.1		$	2.2		$	2.0		$	0.4		$	0.1
	Pension and SERP
	For the Six Months Ended June 30, 2017												For the Six Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	9.3		$	6.3		$	4.9		$	1.5		$	9.6		$	6.7		$	5.0		$	1.6
Interest Cost	20.9			17.0			10.5			4.2			21.0			16.8			10.3			4.2
Expected Return on Pension Plan Assets	(36.0		)	(35.1		)	(19.9		)	(8.9		)	(36.2		)	(33.8		)	(19.3		)	(8.8		)
Actuarial Loss	13.9			17.5			5.8			3.0			13.0			17.0			4.9			2.8
Prior Service Cost	0.7			0.2			0.2			0.2			0.8			—			0.2			0.2
Total Net Periodic Benefit Expense	$	8.8		$	5.9		$	1.5		$	—		$	8.2		$	6.7		$	1.1		$	—
Intercompany Allocations	$	5.0		$	3.7		$	1.7		$	0.9		$	6.8		$	4.5		$	2.0		$	1.2
Capitalized Pension Expense	$	4.9		$	3.5		$	0.7		$	0.2		$	4.9		$	3.7		$	0.7		$	0.2

	PBOP
	For the Three Months Ended June 30, 2017												For the Three Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.5		$	0.3		$	0.3		$	0.1		$	0.4		$	1.0		$	0.3		$	0.1
Interest Cost	1.2			1.7			0.7			0.3			1.3			3.8			0.7			0.3
Expected Return on Plan Assets	(2.4		)	(6.6		)	(1.3		)	(0.6		)	(2.5		)	(6.4		)	(1.4		)	(0.6		)
Actuarial Loss	0.3			0.8			0.2			—			0.3			0.3			0.1			—
Prior Service Cost/(Credit)	0.3			(4.3		)	0.1			—			—			—			—			—
Total Net Periodic Benefit Income	$	(0.1	)	$	(8.1	)	$	—		$	(0.2	)	$	(0.5	)	$	(1.3	)	$	(0.3	)	$	(0.2	)
Intercompany Allocations	$	(0.1	)	$	(0.2	)	$	(0.1	)	$	—		$	0.2		$	0.1		$	—		$	—
Capitalized PBOP Income	$	(0.1	)	$	(4.1	)	$	—		$	(0.1	)	$	(0.2	)	$	(0.6	)	$	(0.1	)	$	(0.1	)
	PBOP
	For the Six Months Ended June 30, 2017												For the Six Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.9		$	0.7		$	0.6		$	0.2		$	0.9		$	1.8		$	0.6		$	0.2
Interest Cost	2.7			3.8			1.5			0.5			2.7			7.8			1.5			0.5
Expected Return on Plan Assets	(4.8		)	(13.2		)	(2.7		)	(1.1		)	(5.1		)	(12.7		)	(2.8		)	(1.1		)
Actuarial Loss	0.5			1.7			0.3			—			0.5			0.5			0.2			—
Prior Service Cost/(Credit)	0.5			(8.6		)	0.3			0.1			—			—			—			—
Total Net Periodic Benefit Income	$	(0.2	)	$	(15.6	)	$	—		$	(0.3	)	$	(1.0	)	$	(2.6	)	$	(0.5	)	$	(0.4	)
Intercompany Allocations	$	(0.4	)	$	(0.5	)	$	(0.2	)	$	(0.1	)	$	0.3		$	0.1		$	—		$	0.1
Capitalized PBOP Income	$	(0.2	)	$	(7.9	)	$	—		$	(0.2	)	$	(0.5	)	$	(1.1	)	$	(0.1	)	$	(0.2	)

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8.    COMMITMENTS AND CONTINGENCIES

A.    Environmental Matters

Eversource, CL&P, NSTAR Electric, PSNH and WMECO 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, PSNH and WMECO 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 June 30, 2017			As of December 31, 2016
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	58	$	57.7	61	$	65.8
CL&P	14	5.1		14	4.9
NSTAR Electric	11	2.2		13	3.2
PSNH	11	5.7		11	5.3
WMECO	4	0.7		4	0.6

Included in the Eversource number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured 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.  The reserve balances related to these former MGP sites were $51.7 million and $59.0 million as of June 30, 2017 and December 31, 2016, respectively, and related primarily to the natural gas business segment. The reduction in the reserve balance at the MGP sites was primarily due to a change in cost estimates at one site where actual contamination was less than originally estimated.

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, PSNH's, and WMECO'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 related environmental matters.  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, PSNH and WMECO, in the form of guarantees.   

Eversource parent issued a guaranty on behalf of its subsidiary, NPT, under which, beginning at the time the Northern Pass Transmission line goes into commercial operation, Eversource parent will guarantee the financial obligations of NPT under the TSA with HQ in an amount not to exceed $25 million.  Eversource parent's obligations under the guaranty expire upon the full, final and indefeasible payment of the guaranteed obligations. Eversource parent has also entered into a guaranty on behalf of NPT under which Eversource parent will guarantee NPT's obligations under a facility with a financial institution pursuant to which NPT may request letters of credit in an aggregate amount of up to approximately $14 million.

Eversource parent has also guaranteed certain indemnification and other obligations as a result of the sales of former unregulated subsidiaries and the termination of an unregulated business, with maximum exposures either not specified or not material.  

Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications.  

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries to external parties, as of June 30, 2017:  

Company	Description	Maximum  Exposure (in millions)		Expiration Dates
On behalf of subsidiaries:
Eversource Gas Transmission LLC	Access Northeast Project Capital Contributions    Guaranty (1)	$	185.1	2021
Various	Surety Bonds (2)	40.1		2017 - 2018
Eversource Service and Rocky River Realty Company	Lease Payments for Vehicles and Real Estate	8.5		2019 - 2024

⁽¹⁾  Eversource parent issued a declining balance guaranty on behalf of its subsidiary, Eversource Gas Transmission LLC, to guarantee the payment of the subsidiary's capital contributions for its investment in the Access Northeast project. The guaranty decreases as capital contributions are made. The guaranty will expire upon the earlier of the full performance of the guaranteed obligations or December 31, 2021.

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⁽²⁾  Surety bond 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.  

C.    FERC ROE Complaints

Four separate complaints have been 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, 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 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.

In response to appeals of the FERC decision in the first complaint filed by the NETOs and the Complainants, the U.S. Court of Appeals for the D.C. Circuit (the "Court") issued a decision on April 14, 2017 vacating and remanding the FERC's decision. The Court found that the FERC failed to make an explicit finding that the 11.14 percent base ROE was unjust and unreasonable, as required under Section 206 of the Federal Power Act, before it set a new base ROE. The Court also found that the FERC did not provide a rational connection between the record evidence and its decision to select the midpoint of the upper half of the zone of reasonableness for the new base ROE.

On May 26, 2017, the Chief Administrative Law Judge ("ALJ") issued an order that the fourth complaint will continue to trial in December 2017 with an ALJ initial decision expected in March of 2018.

A summary of the four separate complaints and the base ROEs pertinent to those complaints are as follows:

Complaint	15-Month Time Period of Complaint (Beginning as of Complaint Filing Date)	Original Base ROE Authorized by FERC at Time of Complaint Filing Date (1)	Base ROE Subsequently Authorized by FERC for First Complaint Period and also Effective from October 16, 2014 through April 14, 2017 (1)	Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		FERC ALJ Recommendation of Base ROE on Second and Third Complaints (Issued March 22, 2016)
First	10/1/2011 - 12/31/2012	11.14%	10.57%	$—	(2)	N/A
Second	12/27/2012 - 3/26/2014	11.14%	N/A	39.1	(3)	9.59%
Third	7/31/2014 - 10/30/2015	11.14%	10.57%	—		10.90%
Fourth	4/29/2016 - 7/28/2017	10.57%	10.57%	—		N/A

⁽¹⁾ The billed ROE (base plus incentives) between October 1, 2011 and October 15, 2014 was within a range of 11.14 percent to 13.1 percent. On October 16, 2014, the FERC set the incentive cap at 11.74 percent for the first complaint period and also effective from October 16, 2014 through April 14, 2017, at which time the Court vacated this FERC order.

⁽²⁾ CL&P, NSTAR Electric, PSNH and WMECO have refunded all amounts associated with the first complaint period, totaling $38.9 million (pre-tax and excluding interest) at Eversource (including $22.4 million at CL&P, $8.4 million at NSTAR Electric, $2.8 million at PSNH, and $5.3 million at WMECO), reflecting both the base ROE and incentive cap prescribed by the FERC order.

⁽³⁾ The reserve represents the difference between the ROEs billed during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve was $21.4 million for CL&P, $8.5 million for NSTAR Electric, $3.1 million for PSNH, and $6.1 million for WMECO as of June 30, 2017.

On June 5, 2017, the NETOs, including Eversource, submitted a filing at the FERC to reinstate the base ROE of 11.14 percent with an associated ROE incentive cap of 13.5 percent effective June 8, 2017, as these were the last ROEs lawfully in effect for transmission billing purposes prior to the FERC order vacated by the Court on April 14, 2017. The NETOs have voluntarily delayed the date on which they will begin billing the reinstated ROEs until 60 days after the FERC has a quorum again. If the FERC takes no action within that 60-day period, the NETOs will begin billing the reinstated ROEs, subject to refund. The Company will continue to recognize transmission revenues as billed utilizing a base ROE of 10.57 percent with an incentive cap of 11.74 percent, until further FERC action or upon expiration of the 60-day period with no FERC action. The Company will change the amounts it is using to recognize transmission revenues only upon a change in the rates billed to its customers.

At this time, the Company cannot reasonably estimate a range of gain or loss for the complaint proceedings. The April 14, 2017 Court decision did not provide a reasonable basis for a change to the reserve balance of $39.1 million (pre-tax and excluding interest) for the second complaint period, and the Company has not changed its reserves or recognized ROEs for any of the complaint periods.

Management cannot at this time predict the ultimate effect of the Court decision on any of the complaint periods or the estimated impacts on the financial position, results of operations or cash flows of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

The average impact of a 10 basis point change to the base ROE for each of the 15-month complaint periods would affect Eversource's after-tax earnings by approximately $3 million.

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D.    Eversource and NSTAR Electric Boston Harbor Civil Action

On July 15, 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts under provisions of the Rivers and Harbors Act of 1899 and the Clean Water Act against NSTAR Electric, Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric ("HEEC"), and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants").  The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor.  The action sought an order to force HEEC to comply with cable depth requirements in the United States Army Corps of Engineers' permit or alternatively to remove the electric distribution cable and cease unauthorized work in U.S. waterways.  The action also sought civil penalties and other costs.  

After substantial negotiations, the parties reached a settlement whereby HEEC will install a new 115kV distribution cable across Boston Harbor to Deer Island, utilizing a different route, and will remove portions of the existing cable. Upon the installation and completion of the new cable and the removal of the portions of the existing cable, all issues surrounding the current permit from the United States Army Corps of Engineers are expected to be resolved, and such litigation is expected to be dismissed with prejudice.

In the second quarter of 2017, as a result of the settlement, NSTAR Electric expensed $4.9 million (pre-tax) of previously incurred capitalized costs associated with engineering work performed on the existing cable that will no longer be used. In addition, NSTAR Electric agreed to provide a rate base credit of $17.5 millionthat will be credited to the rates charged to the Massachusetts Water Resources Authority for the new cable. This negotiated credit will result in the initial $17.5 million of construction costs on the new cable to be expensed as incurred. Construction of the new cable will be completed in 2019.

9.    PSNH GENERATION ASSET SALE

On June 10, 2015, Eversource and PSNH entered into the 2015 Public Service Company of New Hampshire Restructuring and Rate Stabilization Agreement (the "Agreement") with the New Hampshire Office of Energy and Planning, certain members of the NHPUC staff, the Office of Consumer Advocate, two State Senators, and several other parties.  Under the terms of the Agreement, PSNH agreed to divest its generation assets, subject to NHPUC approval.  The Agreement provided for a resolution of issues pertaining to PSNH's generation assets in pending regulatory proceedings before the NHPUC.  The Agreement provided for the Clean Air Project prudence proceeding to be resolved and all remaining Clean Air Project costs to be included in rates effective January 1, 2016.  As part of the Agreement, PSNH agreed to forego recovery of $25 million of the equity return related to the Clean Air Project.  

On July 1, 2016, the NHPUC approved the Agreement in an order that, among other things, instructed PSNH to begin the process of divesting its generation assets.  The NHPUC selected an auction adviser to assist with the divestiture, and the final plan and auction process were approved by the NHPUC in November 2016.  An intervening appeal alleging that the auction process and schedule were unreasonable was rejected by the New Hampshire Supreme Court in February 2017. In late March 2017, the formal divestiture process began. The Company expects the transaction to be approved by the end of 2017.

The sales price of the generation assets could be less than the carrying value, but the Company believes that full recovery of PSNH's generation assets is probable through a combination of cash flows during the remaining operating period, sales proceeds upon divestiture, and recovery of stranded costs via bonds that will be secured by a non-bypassable charge or through recoveries in future rates billed to PSNH's customers.

As of June 30, 2017, PSNH's generation assets were as follows:

(Millions of Dollars)
Gross Plant	$	1,183.3
Accumulated Depreciation	(564.1		)
Net Plant	619.2
Fuel	94.6
Materials and Supplies	36.3
Emission Allowances	19.5
Total Generation Assets	$	769.6

As of June 30, 2017, current and long-term liabilities associated with PSNH's generation assets included Accounts Payable of $30.2 million, Other Current Liabilities of $17.6 million, AROs of $20.6 million, and Accrued Pension, SERP and PBOP of $23.9 million.

29

10.    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 and Long-Term Debt:  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 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 tables below are classified as Level 2 within the fair value hierarchy.  Carrying amounts and estimated fair values are as follows:

	As of June 30, 2017				As of December 31, 2016
Eversource (Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	158.4	$	155.6	$	158.3
Long-Term Debt	10,382.9		10,935.8		9,603.2		9,980.5

	CL&P				NSTAR Electric				PSNH				WMECO
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of June 30, 2017:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	115.0	$	43.0	$	43.4	$	—	$	—	$	—	$	—
Long-Term Debt	2,913.5		3,247.3		2,425.9		2,605.9		1,072.3		1,122.3		566.3		602.8
As of December 31, 2016:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	114.7	$	43.0	$	43.6	$	—	$	—	$	—	$	—
Long-Term Debt	2,766.0		3,049.6		2,078.1		2,201.6		1,072.0		1,109.7		566.5		589.0

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.

11.    ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, is as follows:

	For the Six Months Ended June 30, 2017											For the Six Months Ended June 30, 2016
	Qualified			Unrealized								Qualified			Unrealized
	Cash Flow			Gains								Cash Flow			Gains/(Losses)
Eversource (Millions of Dollars)	Hedging			on Marketable		Defined						Hedging			on Marketable			Defined
	Instruments			Securities		Benefit Plans			Total			Instruments			Securities			Benefit Plans			Total
Balance as of Beginning of Period	$	(8.2	)	$	0.4	$	(57.5	)	$	(65.3	)	$	(10.3	)	$	(1.9	)	$	(54.6	)	$	(66.8	)
OCI Before Reclassifications	—			2.6		(3.5		)	(0.9		)	—			1.3			(2.6		)	(1.3		)
Amounts Reclassified from AOCL	1.1			—		2.2			3.3			1.1			—			1.6			2.7
Net OCI	1.1			2.6		(1.3		)	2.4			1.1			1.3			(1.0		)	1.4
Balance as of End of Period	$	(7.1	)	$	3.0	$	(58.8	)	$	(62.9	)	$	(9.2	)	$	(0.6	)	$	(55.6	)	$	(65.4	)

Eversource's qualified cash flow hedging instruments represent interest rate swap agreements on debt issuances that were settled in prior years. The settlement amount was recorded in AOCL and is being amortized into Net Income over the term of the underlying debt instrument.  CL&P, PSNH and WMECO continue to amortize interest rate swaps settled in prior years from AOCL into Interest Expense over the remaining life of the associated long-term debt. Such interest rate swaps are not material to their respective financial statements.

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses and prior service costs that arose during the year and were recognized in AOCL. The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCL into Operations and Maintenance expense over the average future employee service period, and are reflected in amounts reclassified from AOCL.  For further information, see Note 7, "Pension Benefits and Postretirement Benefits Other Than Pensions."

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12.    COMMON SHARES

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric, PSNH and WMECO that were authorized and issued, as well as the respective per share par values:  

	Shares
			Authorized as of June 30, 2017 and	Issued as of
	Par Value		December 31, 2016	June 30, 2017	December 31, 2016
Eversource	$	5	380,000,000	333,878,402	333,878,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	100	100
PSNH	$	1	100,000,000	301	301
WMECO	$	25	1,072,471	434,653	434,653

As of both June 30, 2017 and December 31, 2016, there were 16,992,594 Eversource common shares held as treasury shares.  As of both June 30, 2017 and December 31, 2016, Eversource common shares outstanding were 316,885,808.

13.    COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for both of the three months ended June 30, 2017 and 2016, and $3.8 million for both of the six months ended June 30, 2017 and 2016. 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 June 30, 2017 and December 31, 2016. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to the parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

14.    EARNINGS PER SHARE

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period.  Diluted EPS 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 common shares.  The dilutive effect of unvested RSU and performance share awards and unexercised stock options 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 six months ended June 30, 2017 and 2016, there were no antidilutive share awards excluded from the computation of diluted EPS.

The following table sets forth the components of basic and diluted EPS:

Eversource (Millions of Dollars, except share information)	For the Three Months Ended				For the Six Months Ended
	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Net Income Attributable to Common Shareholders	$	230.7	$	203.6	$	490.2	$	447.8
Weighted Average Common Shares Outstanding:
Basic	317,391,365		317,785,495		317,427,258		317,651,319
Dilutive Effect	555,829		691,204		608,606		827,557
Diluted	317,947,194		318,476,699		318,035,864		318,478,876
Basic and Diluted EPS	$	0.72	$	0.64	$	1.54	$	1.41

15.    SEGMENT INFORMATION

Presentation:  Eversource is organized among the Electric Distribution, Electric Transmission and Natural Gas 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.  These reportable segments represent substantially all of Eversource's total consolidated revenues.  Revenues from the sale of electricity and natural gas primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer.  The Electric Distribution reportable segment includes the generation activities of PSNH and WMECO.  

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, and 4) the results of other unregulated subsidiaries, which are not part of its core business. In addition, Other in the tables below includes Eversource parent's equity ownership interests in certainnatural gas pipeline projects owned by Enbridge, Inc., the Bay State Wind project, a renewable energy investment fund, and two companies that transmit hydroelectricity imported from the Hydro-Quebec system in Canada. In the ordinary course of business, Yankee Gas and NSTAR Gas purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline projects described above. These affiliate transaction costs total approximately $62.5 million annually and are classified as Purchased Power, Fuel and Transmission on the Eversource statements of income.

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Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred but not paid, cost of removal, AFUDC related to equity funds, and the capitalized portions of pension expense.   

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.  Each of Eversource's subsidiaries, including CL&P, NSTAR Electric, PSNH and WMECO, has one reportable segment.  Eversource's operating segments and reporting units are consistent with its reportable business segments.

Eversource's segment information is as follows:

	For the Three Months Ended June 30, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	1,275.9		$	186.0		$	324.6		$	217.0		$	(240.7	)	$	1,762.8
Depreciation and Amortization	(105.4		)	(17.9		)	(51.4		)	(7.9		)	0.5			(182.1		)
Other Operating Expenses	(925.3		)	(150.0		)	(94.9		)	(195.9		)	241.1			(1,125.0		)
Operating Income	245.2			18.1			178.3			13.2			0.9			455.7
Interest Expense	(49.4		)	(10.9		)	(28.9		)	(21.6		)	3.5			(107.3		)
Other Income, Net	2.5			0.1			6.8			257.6			(245.5		)	21.5
Net Income Attributable to Common Shareholders	$	121.9		$	4.5		$	96.4		$	249.0		$	(241.1	)	$	230.7
	For the Six Months Ended June 30, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	2,677.0		$	589.6		$	641.5		$	453.4		$	(493.6	)	$	3,867.9
Depreciation and Amortization	(235.2		)	(39.6		)	(102.0		)	(17.2		)	1.1			(392.9		)
Other Operating Expenses	(1,967.3		)	(439.6		)	(184.8		)	(412.5		)	493.9			(2,510.3		)
Operating Income	474.5			110.4			354.7			23.7			1.4			964.7
Interest Expense	(97.6		)	(21.5		)	(57.0		)	(41.3		)	6.6			(210.8		)
Other Income, Net	7.4			0.4			11.7			586.5			(570.9		)	35.1
Net Income Attributable to Common Shareholders	$	236.0		$	55.3		$	190.6		$	571.2		$	(562.9	)	$	490.2
Cash Flows Used for Investments in Plant	$	515.0		$	139.7		$	415.6		$	76.7		$	—		$	1,147.0

	For the Three Months Ended June 30, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	1,303.1		$	180.4		$	302.5		$	211.1		$	(229.9	)	$	1,767.2
Depreciation and Amortization	(98.4		)	(16.8		)	(45.6		)	(7.5		)	0.5			(167.8		)
Other Operating Expenses	(994.4		)	(141.1		)	(82.5		)	(188.1		)	230.1			(1,176.0		)
Operating Income	210.3			22.5			174.4			15.5			0.7			423.4
Interest Expense	(47.6		)	(10.4		)	(27.4		)	(16.6		)	1.5			(100.5		)
Other Income, Net	6.3			0.1			5.3			219.0			(222.6		)	8.1
Net Income Attributable to Common Shareholders	$	102.8		$	8.0		$	92.5		$	220.7		$	(220.4	)	$	203.6
	For the Six Months Ended June 30, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	2,739.2		$	523.0		$	585.8		$	425.3		$	(450.5	)	$	3,822.8
Depreciation and Amortization	(226.1		)	(32.7		)	(90.7		)	(14.4		)	1.1			(362.8		)
Other Operating Expenses	(2,083.3		)	(374.5		)	(155.5		)	(385.4		)	450.7			(2,548.0		)
Operating Income	429.8			115.8			339.6			25.5			1.3			912.0
Interest Expense	(95.6		)	(20.5		)	(55.3		)	(30.7		)	3.4			(198.7		)
Other Income/(Loss), Net	6.3			(0.2		)	7.9			524.4			(528.4		)	10.0
Net Income Attributable to Common Shareholders	$	211.3		$	58.9		$	178.2		$	523.1		$	(523.7	)	$	447.8
Cash Flows Used for Investments in Plant	$	362.0		$	105.0		$	349.1		$	53.1		$	—		$	869.2

The following table summarizes Eversource's segmented total assets:

Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Other		Eliminations			Total
As of June 30, 2017	$	18,663.7	$	3,337.0	$	9,003.4	$	14,657.1	$	(13,002.4	)	$	32,658.8
As of December 31, 2016	18,367.5		3,303.8		8,751.5		14,493.1		(12,862.7		)	32,053.2

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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 quarter ended March 31, 2017, as well as the Eversource 2016 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 and WMECO 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.  The earnings and EPS of each business discussed below 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.  EPS by business is a financial measure not recognized under GAAP 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.  We use this non-GAAP financial measure to evaluate and provide details of earnings results by business.  We believe that the non-GAAP presentation is more representative of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance by business.  This non-GAAP financial measure should not be considered as an alternative to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as an indicator of operating performance.

From time to time, 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 the Private Securities Litigation Reform Act of 1995.  You can generally identify our forward-looking statements through the use of words or phrases such as "estimate," "expect," "anticipate," "intend," "plan," "project," "believe," "forecast," "should," "could," and other similar expressions.  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 could cause our actual results to differ materially from those contained in our forward-looking statements, including, but not limited to:

• cyber breaches, acts of war or terrorism, or grid disturbances,

• actions or inaction of local, state and federal regulatory, public policy and taxing bodies,

• changes in business conditions, which could include disruptive technology related to our current or future business model,

• changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability,

• fluctuations in weather patterns,

• changes in laws, regulations or regulatory policy,

• changes in levels or timing of capital expenditures,

• disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly,

• developments in legal or public policy doctrines,

• technological developments,

• 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 updated as necessary, 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 2016 combined Annual Report on Form 10-K.  This combined Quarterly Report on Form 10-Q and Eversource's 2016 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.

33

Financial Condition and Business Analysis

Executive Summary

The following items in this executive summary are explained in more detail in this combined Quarterly Report on Form 10-Q:

Results:  

• We earned $230.7 million, or $0.72 per share, in the second quarter of 2017, and $490.2 million, or $1.54 per share, in the first half of 2017, compared with $203.6 million, or $0.64 per share, in the second quarter of 2016, and $447.8 million, or $1.41 per share, in the first half of 2016.  

• Our electric distribution segment, which includes generation, earned $121.9 million, or $0.38 per share, in the second quarter of 2017, and $236.0 million, or $0.74 per share, in the first half of 2017, compared with $102.8 million, or $0.32 per share, in the second quarter of 2016, and $211.3 million, or $0.66 per share, in the first half of 2016.  

• Our electric transmission segment earned $96.4 million, or $0.30 per share, in the second quarter of 2017, and $190.6 million, or $0.60 per share, in the first half of 2017, compared with $92.5 million, or $0.29 per share, in the second quarter of 2016, and $178.2 million, or $0.56 per share, in the first half of 2016.  

• Our natural gas distribution segment earned $4.5 million, or $0.01 per share, in the second quarter of 2017, and $55.3 million, or $0.17 per share, in the first half of 2017, compared with $8.0 million, or $0.03 per share, in the second quarter of 2016, and $58.9 million, or $0.19 per share, in the first half of 2016.  

• Eversource parent and other companies earned $7.9 million in the second quarter of 2017 and $8.3 million in the first half of 2017, compared with earnings of $0.3 million in the second quarter of 2016 and a net loss of $0.6 million in the first half of 2016.

Liquidity:

• Cash flows provided by operating activities totaled $908.0 million in the first half of 2017, compared with $978.4 million in the first half of 2016.  Investments in property, plant and equipment totaled $1.1 billion in the first half of 2017, compared with $869.2 million in the first half of 2016.  Cash and cash equivalents totaled $24.6 million as of June 30, 2017, compared with $30.3 million as of December 31, 2016.

• In May 2017, NSTAR Electric issued $350 million of 3.20 percent Debentures, due to mature in 2027. The proceeds, net of issuance costs, were used to repay short-term borrowings and fund capital expenditures and working capital.

• On May 3, 2017, our Board of Trustees approved a common share dividend payment of $0.475 per share, which was paid on June 30, 2017 to shareholders of record as of May 31, 2017.

Strategic, Legislative, Regulatory, Policy and Other Items:

• On June 2, 2017, Eversource announced that it had entered into an agreement to acquire Aquarion Water Company ("Aquarion") from Macquarie Infrastructure Partners for $1.675 billion, consisting of approximately $880 million in cash and $795 million of assumed debt. On June 29, 2017, Eversource and Aquarion filed joint applications with regulators in Connecticut, Massachusetts, New Hampshire and Maine requesting approval of the transaction. The transaction is expected to close by December 31, 2017.

• NSTAR Electric and Massachusetts Water Resource Authority have been parties to a civil action brought by the United States Attorney on behalf of the United States Army Corps of Engineers, alleging that they failed to comply with certain permitting requirements related to the placement of an electric distribution cable beneath Boston Harbor. After substantial negotiations, the parties reached a settlement whereby a new 115kV distribution cable will be installed across Boston Harbor, utilizing a different route, and the litigation is expected to be dismissed with prejudice. In the second quarter of 2017, as a result of the settlement, NSTAR Electric expensed $4.9 million (pre-tax) of previously incurred capitalized costs associated with engineering work performed on the existing cable that will no longer be used.

• On July 27, 2017, Eversource Energy Transmission Ventures, Inc. and HQ jointly submitted proposals for Northern Pass into the Massachusetts clean energy RFP. Northern Pass is expected to be placed in service in the second half of 2020.

• On April 14, 2017, pursuant to appeals the NETOs and Complainants filed on the first FERC ROE complaint decision, the U.S. Court of Appeals for the D.C. Circuit issued a decision vacating and remanding the FERC's decision. On June 5, 2017, the NETOs, including Eversource, submitted a filing at the FERC to reinstate the base ROE of 11.14 percent with an associated ROE incentive cap of 13.5 percent effective June 8, 2017, as these were the last ROEs lawfully in effect for transmission billing purposes prior to the FERC order vacated by the Court on April 14, 2017. The NETOs have voluntarily delayed the date on which they will begin billing the reinstated ROEs until 60 days after the FERC has a quorum again. If the FERC takes no action within that 60-day period, the NETOs will begin billing the reinstated ROEs, subject to refund.

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Overview

Consolidated:  Below is a summary of our earnings by business, which also reconciles the non-GAAP financial measure of EPS by business to the most directly comparable GAAP measure of diluted EPS, for the second quarter and the first half of 2017 and 2016.  

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2017				2016				2017				2016
(Millions of Dollars, Except Per-Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount			Per Share
Net Income Attributable to Common Shareholders (GAAP)	$	230.7	$	0.72	$	203.6	$	0.64	$	490.2	$	1.54	$	447.8		$	1.41
Regulated Companies	$	222.8	$	0.69	$	203.3	$	0.64	$	481.9	$	1.51	$	448.4		$	1.41
Eversource Parent and Other Companies	7.9		0.03		0.3		—		8.3		0.03		(0.6		)	—
Net Income Attributable to Common Shareholders (GAAP)	$	230.7	$	0.72	$	203.6	$	0.64	$	490.2	$	1.54	$	447.8		$	1.41

Regulated Companies:  Our Regulated companies consist of the electric distribution, electric transmission, and natural gas distribution segments. Generation activities of PSNH and WMECO are included in our electric distribution segment.  A summary of our segment earnings and EPS for the second quarter and the first half of 2017 and 2016 is as follows:  

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2017				2016				2017				2016
(Millions of Dollars, Except Per-Share Amounts)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share
Electric Distribution	$	121.9	$	0.38	$	102.8	$	0.32	$	236.0	$	0.74	$	211.3	$	0.66
Electric Transmission	96.4		0.30		92.5		0.29		190.6		0.60		178.2		0.56
Natural Gas Distribution	4.5		0.01		8.0		0.03		55.3		0.17		58.9		0.19
Net Income - Regulated Companies	$	222.8	$	0.69	$	203.3	$	0.64	$	481.9	$	1.51	$	448.4	$	1.41

Our electric distribution segment earnings increased$19.1 million in the second quarter of 2017, as compared to the second quarter of 2016, due primarily to lower operations and maintenance expense and higher distribution revenues as a result of higher LBR and higher demand revenues driven by heat waves during the second quarter of 2017 at NSTAR Electric, partially offset by higher depreciation expense.

Our electric distribution segment earnings increased$24.7 million in the first half of 2017, as compared to the first half of 2016, due primarily to higher distribution revenues as a result of higher LBR and higher demand revenues driven by heat waves during the second quarter of 2017 at NSTAR Electric and lower operations and maintenance expense, partially offset by higher depreciation expense and lower generation earnings.

Our electric transmission segment earnings increased$3.9 million and $12.4 million in the second quarter and first half of 2017, respectively, as compared to the second quarter and first half of 2016, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure, partially offset by a lower benefit related to the annual billing and cost reconciliation filing with the FERC.

Our natural gas distribution segment earnings decreased$3.5 million in the second quarter of 2017, as compared to the second quarter of 2016, due primarily to lower firm natural gas sales volumes driven by warmer weather in Connecticut in the spring of 2017, as compared to the same period in 2016, lower demand revenues in Connecticut driven by lower peak usage in 2017, as compared to 2016, higher operations and maintenance expense, and higher depreciation expense.

Our natural gas distribution segment earnings decreased$3.6 million in the first half of 2017, as compared to the first half of 2016, due primarily to higher operations and maintenance expense, higher depreciation expense, and lower demand revenues in Connecticut driven by lower peak usage in 2017, as compared to 2016.

Eversource Parent and Other Companies:  Eversource parent and other companies had earnings of $7.9 million in the second quarter of 2017 and $8.3 million in the first half of 2017, compared with earnings of $0.3 million in the second quarter of 2016 and a net loss of $0.6 million in the first half of 2016.  The improved results were largely due to equity in earnings recorded in the second quarter of 2017 primarily related to Eversource's investment in a renewable energy fund.

Electric and Natural Gas Sales Volumes:  Weather, fluctuations in energy supply costs, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage.  Industrial sales volumes are less sensitive to temperature variations than residential and commercial sales volumes.  In our service territories, weather impacts electric 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 are electric sales volumes.  Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur.

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Fluctuations in retail electric sales volumes at NSTAR Electric and PSNH impact earnings ("Traditional" in the table below).  For CL&P and WMECO, fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission approved distribution revenue decoupling mechanisms ("Decoupled" in the table below).  These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized.  CL&P and WMECO reconcile their annual base distribution rate recovery amounts to their respective pre-established levels of baseline distribution delivery service revenues of $1.059 billion and $132.4 million, respectively.  Any difference between the allowed level of distribution revenue and the actual amount incurred during a 12-month period is adjusted through rates in the following period.

Fluctuations in natural gas sales volumes in Connecticut impact earnings ("Traditional" in the table below). In Massachusetts, fluctuations in natural gas sales volumes do not impact earnings due to the DPU-approved natural gas distribution revenue decoupling mechanism approved in the last rate case decision ("Decoupled" in the table below).  These distribution revenues are decoupled from their customer sales volumes which breaks the relationship between sales volumes and revenues recognized.

A summary of our retail electric GWh sales volumes and our firm natural gas MMcf sales volumes, as well as percentage changes, is as follows:  

	For the Three Months Ended June 30, 2017 Compared to 2016				For the Six Months Ended June 30, 2017 Compared to 2016
	Sales Volumes (GWh)		Percentage		Sales Volumes (GWh)		Percentage
Electric	2017	2016	Increase/(Decrease)		2017	2016	Increase/(Decrease)
Traditional:
Residential	2,108	2,092	0.8	%	4,543	4,497	1.0	%
Commercial	3,827	3,861	(0.9	)%	7,767	7,852	(1.1	)%
Industrial	589	652	(9.7	)%	1,185	1,252	(5.4	)%
Total – Traditional	6,524	6,605	(1.2	)%	13,495	13,601	(0.8	)%
Decoupled:
Residential	2,374	2,410	(1.5	)%	5,362	5,353	0.2	%
Commercial	2,564	2,658	(3.5	)%	5,154	5,275	(2.3	)%
Industrial	702	730	(3.8	)%	1,324	1,394	(5.0	)%
Total – Decoupled	5,640	5,798	(2.7	)%	11,840	12,022	(1.5	)%
Total Sales Volumes	12,164	12,403	(1.9	)%	25,335	25,623	(1.1	)%

	For the Three Months Ended June 30, 2017 Compared to 2016				For the Six Months Ended June 30, 2017 Compared to 2016
	Sales Volumes (MMcf)		Percentage		Sales Volumes (MMcf)		Percentage
Firm Natural Gas	2017	2016	Increase/(Decrease)		2017	2016	Increase/(Decrease)
Traditional:
Residential	2,009	2,511	(20.0	)%	9,102	9,153	(0.6	)%
Commercial	3,541	3,538	0.1	%	11,950	11,514	3.8	%
Industrial	2,228	2,266	(1.7	)%	5,631	5,633	—	%
Total – Traditional	7,778	8,315	(6.5	)%	26,683	26,300	1.5	%
Decoupled:
Residential	3,164	3,231	(2.1	)%	13,349	12,540	6.5	%
Commercial	3,628	3,884	(6.6	)%	12,758	12,872	(0.9	)%
Industrial	1,314	1,319	(0.4	)%	3,023	3,173	(4.7	)%
Total – Decoupled	8,106	8,434	(3.9	)%	29,130	28,585	1.9	%
Special Contracts (1)	1,132	1,087	4.1	%	2,349	2,299	2.2	%
Total – Decoupled and Special Contracts	9,238	9,521	(3.0	)%	31,479	30,884	1.9	%
Total Sales Volumes	17,016	17,836	(4.6	)%	58,162	57,184	1.7	%

⁽¹⁾  Special contracts are unique to the natural gas distribution customers who take service under such an arrangement and generally specify the amount of distribution revenue to be paid to Yankee Gas regardless of the customers' usage.

For the second quarter and first half of 2017, retail electric sales volumes at our electric utilities with a traditional rate structure (NSTAR Electric and PSNH) were lower, as compared to the second quarter and first half of 2016. Sales volumes were negatively impacted by lower customer usage driven by the impact of increased customer energy conservation efforts, partially offset by improved economic conditions across our service territories.

On January 28, 2016, Eversource received approval of a three-year energy efficiency plan in Massachusetts, which includes recovery of LBR at NSTAR Electric until it is operating under a decoupled rate structure.  NSTAR Electric earns LBR related to reductions in sales volume as a result of successful energy efficiency programs.  LBR is recovered from retail customers through current rates.  NSTAR Electric recognized LBR of

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$18.7 million and $35.9 million in the second quarter and first half of 2017, respectively, compared to $13.8 million and $26.8 million in the second quarter and first half of 2016, respectively.

Our firm natural gas sales volumes are subject to many of the same influences as our retail electric sales volumes. In addition, they have benefited from customer growth in both of our natural gas distribution companies.  In the second quarter of 2017, our consolidated firm natural gas sales volumes were lower, as compared to the second quarter of 2016, due primarily to warmer weather in the spring of 2017 and increased customer energy conservation efforts, partially offset by customer growth.  Heating degree days for the second quarter of 2017 were 7.4 percent lower in Connecticut, as compared to the same period in 2016.

Consolidated firm natural gas sales volumes were higher in the first half of 2017, as compared to the first half of 2016, due primarily to improved economic conditions across our service territories and customer growth, partially offset by increased customer energy conservation efforts. The impact of colder weather in the first quarter of 2017 was offset by warmer weather in the second quarter of 2017, as compared to the same periods in 2016, which resulted in an overall slight increase to sales. Heating degree days for the first half of 2017 were 1.6 percent higher in Connecticut, as compared to the same period in 2016.

Liquidity

Consolidated:  Cash and cash equivalents totaled $24.6 million as of June 30, 2017, compared with $30.3 million as of December 31, 2016.

Long-Term Debt Issuances: In May 2017, NSTAR Electric issued $350 million of 3.20 percent Debentures, due to mature in 2027. The proceeds, net of issuance costs, were used to repay short-term borrowings and fund capital expenditures and working capital.

Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.  As of June 30, 2017 and December 31, 2016, Eversource parent had $937.5 million and approximately $1.0 billion, respectively, in short-term borrowings outstanding under the Eversource parent commercial paper program, leaving $512.5 million and $428.0 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively. The weighted-average interest rate on these borrowings as of June 30, 2017 and December 31, 2016 was 1.34 percent and 0.88 percent, respectively. As of June 30, 2017, there were intercompany loans from Eversource parent of $101.1 million to CL&P, $194.1 million to PSNH, and $68.7 million to WMECO.  As of December 31, 2016, there were intercompany loans from Eversource parent of $80.1 million to CL&P, $160.9 million to PSNH and $51.0 million to WMECO.  Eversource parent, CL&P, PSNH, WMECO, NSTAR Gas and Yankee Gas are parties to a five-year $1.45 billion revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

NSTAR Electric has a $450 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. As of June 30, 2017, NSTAR Electric had no short-term borrowings outstanding and as of December 31, 2016, NSTAR Electric had $126.5 million in short-term borrowings outstanding under its commercial paper program, leaving $450.0 million and $323.5 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively.  The weighted-average interest rate on these borrowings as of December 31, 2016 was 0.71 percent.  NSTAR Electric is a party to a five-year $450 million revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop NSTAR Electric's $450 million commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

Cash Flows:  Cash flows provided by operating activities totaled $908.0 million in the first half of 2017, compared with $978.4 million in the first half of 2016.  The decrease in operating cash flows was due primarily to $188.6 million in lower net income tax refunds as a result of the impact of the December 2015 legislation that extended tax bonus depreciation. That legislation extended the accelerated deduction of depreciation to businesses from 2015 to 2019, and also resulted in a refund of approximately $275 million we received in the first quarter of 2016. Additionally, there was an increase of $25.5 million in Pension Plan contributions made in the first half of 2017, as compared to the same period in 2016. Partially offsetting these unfavorable impacts was the timing of regulatory recoveries, which primarily related to customer billings in excess of purchased power costs, and the timing of collections on our accounts receivable.

On May 3, 2017, our Board of Trustees approved a common share dividend payment of $0.475 per share, which was paid on June 30, 2017 to shareholders of record as of May 31, 2017.

In the first half of 2017, CL&P, NSTAR Electric, PSNH, and WMECO paid $99.2 million, $93.0 million, $23.9 million, and $19.0 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 portions of pension expense.  In the first half of 2017, investments for Eversource, CL&P, NSTAR Electric, PSNH, and WMECO were $1.1 billion, $419.9 million, $262.1 million, $155.7 million, and $76.4 million respectively.   

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Business Development and Capital Expenditures

Aquarion: On June 2, 2017, Eversource announced that it had entered into an agreement to acquire Aquarion from Macquarie Infrastructure Partners for $1.675 billion, consisting of approximately $880 million in cash and $795 million of assumed Aquarion debt. The transaction requires approval from PURA, the DPU, the NHPUC, the Maine PUC, and the Federal Communications Commission, and is also subject to a review under the Hart-Scott-Rodino Act. On June 29, 2017, Eversource and Aquarion filed joint applications with regulatory agencies in Connecticut, Massachusetts, New Hampshire and Maine requesting approval of the transaction. The transaction is expected to close by December 31, 2017.

Access Northeast: Access Northeast is a natural gas pipeline and storage project being developed jointly by Eversource, Enbridge, Inc. ("Enbridge") and National Grid plc ("National Grid"), through Algonquin Gas Transmission, LLC ("AGT"). This project is expected to enhance the Algonquin and Maritimes & Northeast pipeline systems using existing routes and is expected to include two new LNG storage tanks and liquefaction and vaporization facilities in Acushnet, Massachusetts that are currently expected to be connected to the Algonquin natural gas pipeline. Access Northeast is expected to be capable of delivering approximately 900 million cubic feet of additional natural gas per day to New England on peak demand days. Eversource and Enbridge each own a 40 percent interest in the project, with the remaining 20 percent interest owned by National Grid. The project is subject to FERC and other federal and state regulatory approvals. Its initial proposed configuration was expected to cost approximately $3 billion to construct, with Eversource Energy's investment share at approximately $1.2 billion. As of June 30, 2017, we have invested $31.1 million in this project.

On June 29, 2017, Enbridge, Eversource and National Grid withdrew the Access Northeast project from the FERC pre-filing process. Once the project partners determine how to address inconsistent energy policy and natural gas pipeline constraints in the New England states, they will re-engage in the FERC pre-file process. In the meantime, the final design, cost, and in-service date of Access Northeast will continue to be refined.

Bay State Wind: Bay State Wind is a proposed offshore wind project being jointly developed by Eversource and Denmark-based DONG Energy. Bay State Wind will be located in a 300-square-mile area approximately 15 to 25 miles south of Martha's Vineyard that has the ultimate potential to generate more than 2,000 MW of energy. Both Eversource and DONG Energy hold a 50 percent ownership interest in Bay State Wind. In August 2016, Massachusetts passed clean energy legislation that requires EDCs to jointly solicit RFPs and enter into long-term contracts for offshore wind, creating RFP opportunities for projects like Bay State Wind. On June 29, 2017, the Bureau of Ocean Energy Management ("BOEM") approved the project’s Site Assessment Plan ("SAP"), the first BOEM approval of an offshore wind SAP in the U.S.

On June 29, 2017, the Massachusetts RFP was issued, seeking bids for a minimum of 400 MW of offshore wind capacity. The RFP states that bids of up to 800 MW would be considered, provided they demonstrate significant net economic benefits to customers. Bay State Wind submitted a Notice of Intent to Bid on July 26, 2017 and will submit a proposal by the December 20, 2017 due date.

Consolidated Capital Expenditures: Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized portions of pension expense (all of which are non-cash factors), totaled $1.0 billion in the first half of 2017, compared to $905.0 million in the first half of 2016.  These amounts included $58.6 million and $58.0 million in the first half of 2017 and 2016, 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 increased by $14.4 million in the first half of 2017, as compared to the first half of 2016.  A summary of electric transmission capital expenditures by company is as follows:  

	For the Six Months Ended June 30,
(Millions of Dollars)	2017		2016
CL&P	$	185.7	$	140.9
NSTAR Electric	78.9		107.6
PSNH	50.6		50.4
WMECO	39.1		46.1
NPT	21.1		16.0
Total Electric Transmission Segment	$	375.4	$	361.0

Northern Pass: Northern Pass is NPT's planned high-voltage direct-current ("HVDC") transmission line from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire.  Northern Pass will interconnect at the Québec-New Hampshire border with a planned HQ HVDC transmission line.   The DOE is expected to issue the final Environmental Impact Statement for Northern Pass during the third quarter of 2017. Siting and permitting at both the state and federal levels is well advanced, with all required permits expected in the second half of 2017.

On August 18, 2015, NPT announced the Forward NH Plan, which is expected to deliver substantial energy cost savings and other benefits to New Hampshire, including a commitment to contribute $200 million to projects associated with economic development, tourism, community betterment and clean energy innovations to benefit the state of New Hampshire. The Forward NH Plan is contingent upon the Northern Pass transmission line going into commercial operation.

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On October 14, 2016, the NHPUC approved a settlement agreement between NPT and the NHPUC staff and granted NPT public utility status, conditioned on final project permitting.

In April 2017, the NHPUC determined that no language in the easement deeds precludes PSNH from leasing the use of its existing rights-of-way to NPT. The NHPUC will now consider whether the terms of that lease are reasonable and in the public interest. A decision is expected by December 31, 2017. In addition, on June 16, 2017, the NHPUC approved NPT's application for a license to allow NPT to cross public roads and waterways.

The Society for the Protection of New Hampshire Forests ("SPNHF") filed a lawsuit against NPT in November 2015 alleging that NPT does not have the right to install underground transmission lines in the public highway right of way without the permission of the abutting landowners, such as the SPNHF. On January 31, 2017, the New Hampshire Supreme Court upheld a lower court's ruling confirming that NPT has the right to install underground transmission lines along and beneath public highways in New Hampshire with approval of the New Hampshire Department of Transportation.

The New Hampshire Site Evaluation Committee ("NH SEC") commenced final adjudicative hearings on April 13, 2017 and they are scheduled to continue until September 29, 2017. The NH SEC is expected to issue a written order in the fourth quarter of 2017. The DOE is expected to act on a Presidential Permit for Northern Pass after the final NH SEC order is released and is expected to issue an approval before the end of 2017. Northern Pass has been targeted for completion and to be placed in service in the second half of 2020.

In August 2016, Massachusetts enacted clean energy legislation that requires EDCs to solicit proposals jointly and enter into long-term contracts for energy, such as hydropower. The RFP was issued on March 31, 2017 and on July 27, 2017, Eversource Energy Transmission Ventures, Inc. and HQ jointly submitted proposals for Northern Pass into the Massachusetts clean energy RFP. Northern Pass is expected to be placed in service in the second half of 2020.

Greater Boston Reliability Solution: In February 2015, ISO-NE selected the Greater Boston and New Hampshire Solution (the "Solution"), proposed by Eversource and National Grid, to satisfy the requirements identified in the Greater Boston study.  The Solution consists of a portfolio of electric transmission upgrades covering southern New Hampshire and northern Massachusetts in the Merrimack Valley and continuing into the greater Boston metropolitan area, of which 28 are in Eversource's service territory. The NH SEC issued its written order approving the New Hampshire upgrades on October 4, 2016. We are currently pursuing the necessary regulatory and siting application approvals in Massachusetts. To date, we have received approval for one of these projects from the Massachusetts Energy Facilities Siting Board. Construction has also begun on several smaller projects not requiring siting approval. All upgrades are expected to be completed by the end of 2019.  We estimate our portion of the investment in the Solution will be approximately $560 million, of which $167.8 million has been capitalized through June 30, 2017.

GHCC:  The Greater Hartford Central Connecticut ("GHCC") projects, which have been approved by ISO-NE, consist of 27 projects with an expected investment of approximately $350 million that are expected to be placed in service through 2018.  Fourteen projects have been placed in service, and nine projects are in active construction.  As of June 30, 2017, CL&P had capitalized $176.5 million in costs associated with GHCC.

Seacoast Reliability Project:  On April 12, 2016, PSNH filed a siting application with the NH SEC for the Seacoast Reliability Project, a 13-mile, 115kV transmission line within several New Hampshire communities, which proposes to use a combination of overhead, underground and underwater line design to help meet the growing demand for electricity in the Seacoast region.  In June 2016, the NH SEC accepted our application as complete and we expect the NH SEC decision by late 2017.  This project is expected to be completed by the end of 2018.  We estimate our investment in this project will be approximately $84 million, of which $18.0 million has been capitalized through June 30, 2017.

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Distribution Business:

A summary of distribution capital expenditures is as follows:

	For the Six Months Ended June 30,
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO			Total Electric		Natural Gas		Total Electric and Natural Gas Distribution Segment
2017
Basic Business	$	106.8	$	68.8	$	37.7	$	11.2		$	224.5	$	35.3	$	259.8
Aging Infrastructure	77.9		30.8		42.1		9.4			160.2		81.4		241.6
Load Growth (1)	26.4		35.7		8.1		(3.5		)	66.7		15.9		82.6
Total Distribution	211.1		135.3		87.9		17.1			451.4		132.6		584.0
Generation (2)	—		4.4		4.5		2.8			11.7		—		11.7
Total Electric and Natural Gas Distribution Segment	$	211.1	$	139.7	$	92.4	$	19.9		$	463.1	$	132.6	$	595.7
2016
Basic Business	$	84.1	$	54.6	$	32.2	$	7.8		$	178.7	$	35.2	$	213.9
Aging Infrastructure	62.3		35.6		39.4		9.8			147.1		59.9		207.0
Load Growth (1)	16.9		26.2		5.4		(0.4		)	48.1		14.3		62.4
Total Distribution	163.3		116.4		77.0		17.2			373.9		109.4		483.3
Generation	—		—		2.7		—			2.7		—		2.7
Total Electric and Natural Gas Distribution Segment	$	163.3	$	116.4	$	79.7	$	17.2		$	376.6	$	109.4	$	486.0

⁽¹⁾ For the six months ended June 30, 2017 and June 30, 2016, WMECO had $10.3 million and $2.3 million, respectively, of total contributions in aid of construction, which were credits to capital expenditures for those periods.

⁽²⁾ In 2017, NSTAR Electric and WMECO incurred capital expenditures related to the construction of solar generation facilities.

For the electric distribution business, basic business includes 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 includes requests for new business and capacity additions on distribution lines and substation additions and expansions.  

For the natural gas distribution segment, 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 reflects growth in existing service territories including new developments, installation of services, and expansion.

The natural gas distribution segment's capital spending program increased by $23.2 million in the first half of 2017, as compared to the first half of 2016, primarily due to an increased investment in system replacement and reliability, as well as upgrades to our LNG facilities. We expect the LNG facility upgrades to cost approximately $200 million and to be placed in service in late 2019.

FERC Regulatory Matters

FERC ROE Complaints: Four separate complaints have been 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, 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 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.

In response to appeals of the FERC decision in the first complaint filed by the NETOs and the Complainants, the U.S. Court of Appeals for the D.C. Circuit (the "Court") issued a decision on April 14, 2017 vacating and remanding the FERC's decision. The Court found that the FERC failed to make an explicit finding that the 11.14 percent base ROE was unjust and unreasonable, as required under Section 206 of the Federal Power Act, before it set a new base ROE. The Court also found that the FERC did not provide a rational connection between the record evidence and its decision to select the midpoint of the upper half of the zone of reasonableness for the new base ROE.

On May 26, 2017, the Chief Administrative Law Judge ("ALJ") issued an order that the fourth complaint will continue to trial in December 2017 with an ALJ initial decision expected in March of 2018.

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A summary of the four separate complaints and the base ROEs pertinent to those complaints are as follows:

Complaint	15-Month Time Period of Complaint (Beginning as of Complaint Filing Date)	Original Base ROE Authorized by FERC at Time of Complaint Filing Date (1)	Base ROE Subsequently Authorized by FERC for First Complaint Period and also Effective from October 16, 2014 through April 14, 2017 (1)	Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		FERC ALJ Recommendation of Base ROE on Second and Third Complaints (Issued March 22, 2016)
First	10/1/2011 - 12/31/2012	11.14%	10.57%	$—	(2)	N/A
Second	12/27/2012 - 3/26/2014	11.14%	N/A	39.1	(3)	9.59%
Third	7/31/2014 - 10/30/2015	11.14%	10.57%	—		10.90%
Fourth	4/29/2016 - 7/28/2017	10.57%	10.57%	—		N/A

⁽¹⁾ The billed ROE (base plus incentives) between October 1, 2011 and October 15, 2014 was within a range of 11.14 percent to 13.1 percent. On October 16, 2014, the FERC set the incentive cap at 11.74 percent for the first complaint period and also effective from October 16, 2014 through April 14, 2017, at which time the Court vacated this FERC order.

⁽²⁾ CL&P, NSTAR Electric, PSNH and WMECO have refunded all amounts associated with the first complaint period, totaling $38.9 million (pre-tax and excluding interest) at Eversource (including $22.4 million at CL&P, $8.4 million at NSTAR Electric, $2.8 million at PSNH, and $5.3 million at WMECO), reflecting both the base ROE and incentive cap prescribed by the FERC order.

⁽³⁾ The reserve represents the difference between the ROEs billed during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve was $21.4 million for CL&P, $8.5 million for NSTAR Electric, $3.1 million for PSNH, and $6.1 million for WMECO as of June 30, 2017.

On June 5, 2017, the NETOs, including Eversource, submitted a filing at the FERC to reinstate the base ROE of 11.14 percent with an associated ROE incentive cap of 13.5 percent effective June 8, 2017, as these were the last ROEs lawfully in effect for transmission billing purposes prior to the FERC order vacated by the Court on April 14, 2017. The NETOs have voluntarily delayed the date on which they will begin billing the reinstated ROEs until 60 days after the FERC has a quorum again. If the FERC takes no action within that 60-day period, the NETOs will begin billing the reinstated ROEs, subject to refund. The Company will continue to recognize transmission revenues as billed utilizing a base ROE of 10.57 percent with an incentive cap of 11.74 percent, until further FERC action or upon expiration of the 60-day period with no FERC action. The Company will change the amounts it is using to recognize transmission revenues only upon a change in the rates billed to its customers.

The average impact of a 10 basis point change to the base ROE for each of the 15-month complaint periods would affect Eversource's after-tax earnings by approximately $3 million.

NSTAR Electric and WMECO Merger FERC Filings: On January 13, 2017, Eversource made two filings with FERC related to the proposed merger of WMECO into NSTAR Electric with an anticipated effective date of January 1, 2018. One filing requests FERC approval of the merger, and the other filing requests FERC approval of NSTAR Electric's assumption of WMECO's short-term debt obligations. The FERC approved the merger on March 2, 2017 and will act on the assumption of debt filing later in 2017.

Regulatory Developments and Rate Matters

Electric and Natural Gas 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 half of 2017, changes made to the Regulated companies’ rates did not have a material impact on their earnings, financial position, or cash flows.  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 2016 Form 10-K.

Connecticut:

On April 20, 2017, PURA approved the joint request of CL&P, the Connecticut Office of Consumer Counsel and the Connecticut Attorney General to amend the deadline to establish new electric distribution rates in the 2012 Connecticut merger settlement agreement from "no later than December 1, 2017" to "no later than July 1, 2018."

Massachusetts:

Eversource and NSTAR Electric Boston Harbor Civil Action:On July 15, 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts under provisions of the Rivers and Harbors Act of 1899 and the Clean Water Act against NSTAR Electric, Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric ("HEEC"), and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants").  The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor.  The action sought an order to force HEEC to comply with cable depth requirements in the United States Army

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Corps of Engineers' permit or alternatively to remove the electric distribution cable and cease unauthorized work in U.S. waterways.  The action also sought civil penalties and other costs.  

After substantial negotiations, the parties reached a settlement whereby HEEC will install a new 115kV distribution cable across Boston Harbor to Deer Island, utilizing a different route, and will remove portions of the existing cable. Upon the installation and completion of the new cable and the removal of the portions of the existing cable, all issues surrounding the current permit from the United States Army Corps of Engineers are expected to be resolved, and such litigation is expected to be dismissed with prejudice.

In the second quarter of 2017, as a result of the settlement, NSTAR Electric expensed $4.9 million (pre-tax) of previously incurred capitalized costs associated with engineering work performed on the existing cable that will no longer be used. In addition, NSTAR Electric agreed to provide a rate base credit of $17.5 millionthat will be credited to the rates charged to the Massachusetts Water Resources Authority for the new cable. This negotiated credit will result in the initial $17.5 million of construction costs on the new cable to be expensed as incurred. Construction of the new cable will be completed in 2019.

Massachusetts RFPs:On March 31, 2017, pursuant to a comprehensive energy law enacted in 2016, "An Act to Promote Energy Diversity," (the "Act") the Massachusetts EDCs, including NSTAR Electric and WMECO, and the DOER issued a joint RFP for 9.45 terawatt hours of clean energy per year, such as hydropower, land-based wind or solar. The RFP seeks proposals for long-term contracts of 15 to 20 years to provide the state's electric distribution companies with clean energy generation. The proposal submission due date was July 27, 2017. Contracts will be selected in January 2018, with an expectation to submit executed long-term contracts to the DPU for final approval in April 2018. On July 27, 2017, Eversource Energy Transmission Ventures, Inc. and HQ jointly submitted proposals for Northern Pass into the Massachusetts clean energy RFP. Northern Pass is expected to be placed in service in the second half of 2020.

On June 29, 2017, pursuant to the Act, the Massachusetts EDCs, including NSTAR Electric and WMECO, and the DOER issued a joint RFP for long-term contracts for offshore wind energy projects, seeking bids for a minimum of 400 MW of offshore wind capacity. The Offshore Wind Energy RFP states that bids of up to 800 MW would be considered, provided they demonstrate significant net economic benefits to customers. Bay State Wind submitted a Notice of Intent to Bid on July 26, 2017 and will submit a proposal by the December 20, 2017 due date.

NSTAR Electric and WMECO Rate Case: On January 17, 2017, NSTAR Electric and WMECO jointly filed an application (the "Joint Applicants") with the DPU for approval of a combined $96 million increase in base distribution rates, effective January 1, 2018. As part of this filing, the Joint Applicants are presenting a grid-wise performance plan, including the implementation of a performance-based rate-making mechanism in conjunction with a grid modernization base commitment of $400 million in incremental capital investment over a period of five years, commencing January 1, 2018. In addition, the Joint Applicants proposed to streamline and align rate classifications between NSTAR Electric and WMECO, and requested a revenue decoupling rate mechanism for NSTAR Electric. WMECO has a revenue decoupling mechanism in place. The DPU will also be reviewing the proposed merger of NSTAR Electric and WMECO as part of the rate case. A final decision from the DPU is expected in late 2017, with new rates anticipated to be effective January 1, 2018.

New Hampshire:

Generation Divestiture:  On June 10, 2015, Eversource and PSNH entered into the 2015 Public Service Company of New Hampshire Restructuring and Rate Stabilization Agreement (the "Agreement") with the New Hampshire Office of Energy and Planning, certain members of the NHPUC staff, the Office of Consumer Advocate, two State Senators, and several other parties.  Under the terms of the Agreement, PSNH agreed to divest its generation assets, subject to NHPUC approval.  The Agreement provided for a resolution of issues pertaining to PSNH's generation assets in pending regulatory proceedings before the NHPUC.  The Agreement provided for the Clean Air Project prudence proceeding to be resolved and all remaining Clean Air Project costs to be included in rates effective January 1, 2016.  As part of the Agreement, PSNH agreed to forego recovery of $25 million of the equity return related to the Clean Air Project.  

On July 1, 2016, the NHPUC approved the Agreement in an order that, among other things, instructed PSNH to begin the process of divesting its generation assets.  The NHPUC selected an auction adviser to assist with the divestiture, and the final plan and auction process were approved by the NHPUC in November 2016.  An intervening appeal alleging that the auction process and schedule were unreasonable was rejected by the New Hampshire Supreme Court in February 2017. In late March 2017, the formal divestiture process began. We expect the transaction to be approved by the end of 2017.

As of June 30, 2017, PSNH's energy service rate base subject to divestiture was approximately $616 million. This rate base will be reduced by the amount of the sales proceeds from the generation assets that are divested and sold. Upon completion of the divestiture process, full recovery of PSNH's generation assets is probable through a combination of cash flows during the remaining operating period, sales proceeds upon divestiture, and recovery of stranded costs via bonds that will be secured by a non-bypassable charge or through recoveries in future rates billed to PSNH's customers.

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 communicates to and 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 2016 Form 10-K.  There have been no material changes with regard to these critical accounting policies.

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Other Matters

Accounting Standards:  For information regarding new accounting standards, see Note 1B, "Summary of Significant Accounting Policies –Accounting Standards," to the financial statements.

Contractual Obligations and Commercial Commitments:  There have been no material contractual obligations identified and no material changes with regard to the contractual obligations and commercial commitments previously disclosed in the Eversource 2016 Form 10-K.

Web Site:  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, PSNH's and WMECO'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.

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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 six months ended June 30, 2017 and 2016 included in this combined Quarterly Report on Form 10-Q:  

	For the Three Months Ended June 30,											For the Six Months Ended June 30,
(Millions of Dollars)	2017			2016			Increase/ (Decrease)			Percent		2017		2016		Increase/ (Decrease)			Percent
Operating Revenues	$	1,762.8		$	1,767.2		$	(4.4	)	(0.2	)%	$	3,867.9	$	3,822.8	$	45.1		1.2	%
Operating Expenses:
Purchased Power, Fuel and Transmission	549.7			581.3			(31.6		)	(5.4	)	1,303.3		1,336.1		(32.8		)	(2.5	)
Operations and Maintenance	302.7			320.7			(18.0		)	(5.6	)	633.0		640.9		(7.9		)	(1.2	)
Depreciation	189.9			176.5			13.4			7.6		376.7		350.5		26.2			7.5
Amortization of Regulatory Assets/(Liabilities),   Net	(7.8		)	(8.7		)	0.9			(10.3	)	16.2		12.3		3.9			31.7
Energy Efficiency Programs	116.4			119.7			(3.3		)	(2.8	)	262.6		256.8		5.8			2.3
Taxes Other Than Income Taxes	156.2			154.3			1.9			1.2		311.4		314.2		(2.8		)	(0.9	)
Total Operating Expenses	1,307.1			1,343.8			(36.7		)	(2.7	)	2,903.2		2,910.8		(7.6		)	(0.3	)
Operating Income	455.7			423.4			32.3			7.6		964.7		912.0		52.7			5.8
Interest Expense	107.3			100.5			6.8			6.8		210.7		198.7		12.0			6.0
Other Income, Net	21.5			8.1			13.4			(a)		35.1		10.0		25.1			(a)
Income Before Income Tax Expense	369.9			331.0			38.9			11.8		789.1		723.3		65.8			9.1
Income Tax Expense	137.3			125.5			11.8			9.4		295.1		271.7		23.4			8.6
Net Income	232.6			205.5			27.1			13.2		494.0		451.6		42.4			9.4
Net Income Attributable to Noncontrolling Interests	1.9			1.9			—			—		3.8		3.8		—			—
Net Income Attributable to Common Shareholders	$	230.7		$	203.6		$	27.1		13.3	%	$	490.2	$	447.8	$	42.4		9.5	%

(a) Percent greater than 100 not shown as it is not meaningful.

Operating Revenues

A summary of our Operating Revenues by segment is as follows:

	For the Three Months Ended June 30,											For the Six Months Ended June 30,
(Millions of Dollars)	2017			2016			Increase/ (Decrease)			Percent		2017			2016			Increase/ (Decrease)			Percent
Electric Distribution	$	1,275.9		$	1,303.1		$	(27.2	)	(2.1	)%	$	2,677.0		$	2,739.2		$	(62.2	)	(2.3	)%
Natural Gas Distribution	186.0			180.4			5.6			3.1		589.6			523.0			66.6			12.7
Electric Transmission	324.6			302.5			22.1			7.3		641.5			585.8			55.7			9.5
Other and Eliminations	(23.7		)	(18.8		)	(4.9		)	26.1		(40.2		)	(25.2		)	(15.0		)	59.5
Total Operating Revenues	$	1,762.8		$	1,767.2		$	(4.4	)	(0.2	)%	$	3,867.9		$	3,822.8		$	45.1		1.2	%

A summary of our retail electric GWh sales volumes and our firm natural gas sales volumes in MMcf were as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017	2016	Decrease		Percent		2017	2016	Increase/ (Decrease)		Percent
Electric
Traditional	6,524	6,605	(81	)	(1.2	)%	13,495	13,601	(106	)	(0.8	)%
Decoupled	5,640	5,798	(158	)	(2.7	)	11,840	12,022	(182	)	(1.5	)
Total Electric	12,164	12,403	(239	)	(1.9	)	25,335	25,623	(288	)	(1.1	)
Firm Natural Gas
Traditional	7,778	8,315	(537	)	(6.5	)	26,683	26,300	383		1.5
Decoupled and Special Contracts	9,238	9,521	(283	)	(3.0	)	31,479	30,884	595		1.9
Total Firm Natural Gas	17,016	17,836	(820	)	(4.6	)%	58,162	57,184	978		1.7	%

Three Months Ended:

Operating Revenues, which primarily consist of base electric and natural gas distribution revenues and tracked revenues further described below, decreased by $4.4 million for the three months ended June 30, 2017, as compared to the same period in 2016.  

Base electric and natural gas distribution revenues:  Base electric distribution segment revenues, excluding LBR, increased $4.6 million for the three months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher demand revenues driven by heat waves

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during the second quarter of 2017 at NSTAR Electric. Operating Revenues increased $4.9 million for the three months ended June 30, 2017, as compared to the same period in 2016, as a result of higher LBR revenues. 

Base natural gas distribution revenues decreased $3.2 million for the three months ended June 30, 2017, as compared to the same period in 2016, driven by lower firm natural gas sales volumes due to warmer weather in Connecticut in the spring of 2017, as compared to the same period in 2016, and lower demand revenues in Connecticut driven by lower peak usage in 2017 as compared to 2016.

Fluctuations in CL&P's, WMECO's and NSTAR Gas' sales volumes do not impact the level of base distribution revenue realized or earnings due to their respective regulatory commission approved revenue decoupling mechanisms.  The revenue decoupling mechanisms permit recovery of a base amount of distribution revenues and break the relationship between sales volumes and revenues recognized.  Revenue decoupling mechanisms result in the recovery of our approved base distribution revenue requirements.  

Tracked distribution revenues: Tracked revenues consist of certain costs that are recovered from customers in rates through regulatory commission-approved cost tracking mechanisms and therefore, have no impact on earnings.  Costs recovered through cost tracking mechanisms include energy supply procurement costs and other energy-related costs for our electric and natural gas customers, retail transmission charges, energy efficiency program costs, and restructuring and stranded cost recovery revenues.  In addition, tracked revenues include certain incentives earned and carrying charges. Tracked natural gas distribution segment revenues increased as a result of an increase in natural gas supply costs ($3.9 million) and an increase in energy efficiency program revenues ($4.9 million). Tracked electric distribution revenues decreased as a result of a decrease in electric energy supply costs ($34.7 million), driven by decreased average retail prices, a decrease in stranded costs recovery revenues ($9.3 million), a decrease in pension rate adjustment mechanisms ($5.2 million), and a decrease in retail electric transmission charges ($4.3 million). Partially offsetting these decreases were increases in tracked electric distribution revenues related to federally-mandated congestion charges ($7.7 million), revenues related to renewable energy requirements ($6.6 million) and net metering revenues ($7.2 million).

Electric transmission revenues:  The electric transmission segment revenues increased by $22.1 million due primarily to the recovery of higher revenue requirements associated with ongoing investments in our transmission infrastructure.

Other: Other revenues decreased due primarily to the sale of Eversource's unregulated telecommunication business on December 31, 2016 ($5.0 million).

Six Months Ended:

Operating Revenues increased by $45.1 million for the six months ended June 30, 2017, as compared to the same period in 2016.  

Base electric and natural gas distribution revenues:  Base electric distribution segment revenues, excluding LBR, increased $7.8 million for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher demand revenues driven by heat waves during the second quarter of 2017 at NSTAR Electric. Operating Revenues increased $9.1 million for the six months ended June 30, 2017, as compared to the same period in 2016, as a result of higher LBR revenues. 

Base natural gas distribution revenues remained relatively unchanged for the six months ended June 30, 2017, as compared to the same period in 2016. The impact of higher firm natural gas sales volumes was offset by lower demand revenues in Connecticut driven by lower peak usage in 2017 as compared to 2016.

Tracked distribution revenues: Tracked natural gas distribution segment revenues increased as a result of an increase in natural gas supply costs ($50.3 million) and an increase in energy efficiency program revenues ($14.9 million). Tracked electric distribution revenues decreased as a result of a decrease in electric energy supply costs ($88.3 million), driven by decreased average retail prices, a decrease in stranded costs recovery revenues ($16.1 million), a decrease in pension rate adjustment mechanisms ($9.2 million), and a decrease in retail electric transmission charges ($6.1 million). Partially offsetting these decreases were increases in tracked electric distribution revenues related to federally-mandated congestion charges ($20.2 million), net metering revenues ($15.4 million) and revenues related to renewable energy requirements ($5.9 million).

Electric transmission revenues:  The electric transmission segment revenues increased by $55.7 million due primarily to the recovery of higher revenue requirements associated with ongoing investments in our transmission infrastructure.

Other: Other revenues decreased due primarily to the sale of Eversource's unregulated telecommunication business on December 31, 2016 ($10.0 million).

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Purchased Power, Fuel and Transmission expense includes costs associated with purchasing electricity and natural gas on behalf of our customers.  These energy supply costs are recovered from customers in rates through cost tracking mechanisms, which have no impact on earnings (tracked costs).  Purchased Power, Fuel and Transmission expense decreased for the three and six months ended June 30, 2017, as compared to the same periods in 2016, due primarily to the following:

(Millions of Dollars)	Three Months Ended Increase/(Decrease)			Six Months Ended Increase/(Decrease)
Electric Distribution	$	(46.6	)	$	(108.8	)
Natural Gas Distribution	2.0			43.2
Transmission	13.0			32.8
Total Purchased Power, Fuel and Transmission	$	(31.6	)	$	(32.8	)

The decrease in purchased power expense at the electric distribution business was driven by lower prices associated with the procurement of energy supply for the three and six months ended June 30, 2017, as compared to the same periods in 2016.  The increase in purchased power expense at the natural gas distribution business was due to higher average natural gas prices.  The increase in transmission costs was primarily the result of an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over Eversource’s local transmission network.

Operations and Maintenance expense includes tracked costs and costs that are part of base electric and natural gas distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense decreased for the three and six months ended June 30, 2017, as compared to the same periods in 2016, due primarily to the following:

(Millions of Dollars)	Three Months Ended Increase/(Decrease)			Six Months Ended Increase/(Decrease)
Base Electric Distribution:
Employee-related expenses, including labor and benefits	$	(22.4	)	$	(31.2	)
Bad debt expense	(9.5		)	(12.7		)
Shared corporate costs (including computer software depreciation at Eversource Service)	4.1			9.6
Storm restoration costs	(0.9		)	7.1
Boston Harbor civil action settlement charge recorded in the second quarter of 2017	4.9			4.9
System resiliency project costs at CL&P	0.4			2.6
Other operations and maintenance	3.3			3.9
Total Base Electric Distribution	(20.1		)	(15.8		)
Total Base Natural Gas Distribution:
Shared corporate costs (including computer software depreciation at Eversource Service)	1.1			2.4
Other operations and maintenance	0.4			2.6
Total Base Natural Gas Distribution	1.5			5.0
Total Tracked costs (Electric Distribution, Electric Transmission and Natural Gas Distribution)	3.3			12.6
Other and eliminations:
Eversource Parent and Other Companies	3.9			1.9
Eliminations	(6.6		)	(11.6		)
Total Operations and Maintenance	$	(18.0	)	$	(7.9	)

Depreciation expense increased for the three and six months ended June 30, 2017, as compared to the same periods in 2016, due primarily to higher utility plant in service balances.

Amortization of Regulatory (Liabilities)/Assets, Net expense includes the deferral of energy supply and energy-related costs included in certain regulatory-approved tracking mechanisms, and the amortization of certain costs.  The deferral adjusts expense to match the corresponding revenues. Amortization of Regulatory (Liabilities)/Assets, Net, increased for the six months ended June 30, 2017 as compared to the same period in 2016, due primarily to the deferral of energy supply and energy-related costs which can fluctuate from period to period based on the timing of costs incurred and the related rate changes to recover these costs.  Energy supply and energy-related costs at CL&P, NSTAR Electric, PSNH and WMECO, which are the primary drivers in amortization, are recovered from customers in rates and have no impact on earnings.  

Interest Expense increased for the three and six months ended June 30, 2017, as compared to the same periods in 2016, due primarily to higher interest on long-term debt ($5.2 million and $10.1 million, respectively) as a result of new debt issuances and higher interest on short-term debt ($1.4 million and $2.3 million, respectively).

Other Income, Net increased for the three and six months ended June 30, 2017, as compared to the same periods in 2016, due primarily to an increase in second quarter equity in earnings recorded in our equity method investments ($15.6 million and $20.2 million, respectively), primarily related to Eversource's investment in a renewable energy fund, higher AFUDC related to equity funds ($1.2 million and $3.8 million, respectively), and market value changes related to the deferred compensation plans ($0.3 million and $2.2 million, respectively).

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Income Tax Expense increased for the three months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher pre-tax earnings ($13.6 million) and higher state taxes ($1.0 million), partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($2.8 million).

Income Tax Expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher pre-tax earnings ($23.0 million), the absence of tax credits in 2017 ($1.6 million), and higher state taxes ($1.4 million), partially offset by items that impact our tax rate as a result of flow-through items and permanent differences ($2.6 million).

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RESULTS OF OPERATIONS – THE CONNECTICUT LIGHT AND POWER COMPANY

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P for the three and six months ended June 30, 2017 and 2016 included in this combined Quarterly Report on Form 10-Q:  

	For the Three Months Ended June 30,										For the Six Months Ended June 30,
(Millions of Dollars)	2017		2016			Increase/ (Decrease)			Percent		2017		2016		Increase/ (Decrease)			Percent
Operating Revenues	$	666.6	$	679.8		$	(13.2	)	(1.9	)%	$	1,398.9	$	1,415.1	$	(16.2	)	(1.1	)%
Operating Expenses:
Purchased Power and Transmission	207.2		234.5			(27.3		)	(11.6	)	452.1		507.1		(55.0		)	(10.8	)
Operations and Maintenance	108.5		122.5			(14.0		)	(11.4	)	236.7		233.4		3.3			1.4
Depreciation	60.8		57.5			3.3			5.7		120.6		114.5		6.1			5.3
Amortization of Regulatory Assets/(Liabilities), Net	11.4		(2.9		)	14.3			(a)		24.2		6.9		17.3			(a)
Energy Efficiency Programs	32.2		35.5			(3.3		)	(9.3	)	68.8		73.6		(4.8		)	(6.5	)
Taxes Other Than Income Taxes	70.5		70.6			(0.1		)	(0.1	)	144.4		146.0		(1.6		)	(1.1	)
Total Operating Expenses	490.6		517.7			(27.1		)	(5.2	)	1,046.8		1,081.5		(34.7		)	(3.2	)
Operating Income	176.0		162.1			13.9			8.6		352.1		333.6		18.5			5.5
Interest Expense	35.3		36.0			(0.7		)	(1.9	)	70.3		72.5		(2.2		)	(3.0	)
Other Income, Net	3.8		6.3			(2.5		)	(39.7	)	6.6		7.2		(0.6		)	(8.3	)
Income Before Income Tax Expense	144.5		132.4			12.1			9.1		288.4		268.3		20.1			7.5
Income Tax Expense	53.2		49.5			3.7			7.5		106.9		98.4		8.5			8.6
Net Income	$	91.3	$	82.9		$	8.4		10.1	%	$	181.5	$	169.9	$	11.6		6.8	%

(a) Percent greater than 100 not shown as it is not meaningful.

Operating Revenues

CL&P's retail sales volumes were as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017	2016	Decrease		Percent		2017	2016	Decrease		Percent
Retail Sales Volumes in GWh	4,838	4,966	(128	)	(2.6	)%	10,168	10,316	(148	)	(1.4	)%

Three Months Ended:

CL&P's Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, decreased by $13.2 million for the three months ended June 30, 2017, as compared to the same period in 2016.

Fluctuations in CL&P's sales volumes do not impact the level of base distribution revenue realized or earnings due to the PURA-approved revenue decoupling mechanism.  CL&P's revenue decoupling mechanism permits recovery of a base amount of distribution revenues ($1.059 billion annually) and breaks the relationship between sales volumes and revenues recognized.  The revenue decoupling mechanism results in the recovery of approved base distribution revenue requirements.  

Fluctuations in the overall level of operating revenues are primarily related to tracked revenues.  Tracked revenues consist of certain costs that are recovered from customers in rates through PURA-approved cost tracking mechanisms and therefore, have no impact on earnings.  Costs recovered through cost tracking mechanisms include energy supply procurement and other energy-related costs, retail transmission charges, energy efficiency program costs and restructuring and stranded cost recovery revenues.  In addition, tracked revenues include certain incentives earned and carrying charges. Tracked distribution revenues decreased primarily as a result of a decrease in energy supply costs ($22.1 million) driven by decreased average retail prices. In addition, there was a $6.2 million decrease in stranded cost recovery revenue. Partially offsetting these decreases were increases in federally-mandated congestion charges ($7.7 million) and retail transmission charges ($6.3 million).

Transmission revenues increased by $2.0 million due primarily to higher revenue requirements associated with ongoing investments in our transmission infrastructure.

Six Months Ended:

CL&P's Operating Revenues decreased by $16.2 million for the six months ended June 30, 2017, as compared to the same period in 2016.

Tracked distribution revenues decreased primarily as a result of a decrease in energy supply costs ($52.1 million) driven by decreased average retail prices. In addition, there was a $10.2 million decrease in stranded cost recovery revenue. Partially offsetting these decreases was an increase in federally-mandated congestion charges ($20.2 million).

Transmission revenues increased by $20.9 million due primarily to higher revenue requirements associated with ongoing investments in our transmission infrastructure.

48

Purchased Power and Transmission expense includes costs associated with purchasing electricity on behalf of CL&P's customers.  These energy supply costs are recovered from customers in PURA-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power and Transmission expense decreased for the three and six months ended June 30, 2017, as compared to the same periods in 2016, due primarily to the following:

(Millions of Dollars)	Three Months Ended Increase/(Decrease)			Six Months Ended Increase/(Decrease)
Purchased Power Costs	$	(35.6	)	$	(73.9	)
Transmission Costs	8.3			18.9
Total Purchased Power and Transmission	$	(27.3	)	$	(55.0	)

Included in purchased power costs are the costs associated with CL&P's GSC and deferred energy supply costs.  The GSC recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to third party suppliers.  The decrease in purchased power costs for the three and six months ended June 30, 2017, compared to the same periods in 2016, was due primarily to a decrease in the price of standard offer supply. The increase in transmission costs was primarily the result of an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over Eversource’s local transmission network. 

Depreciation expense increased for the three and six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher utility plant in service balances.  

Amortization of Regulatory (Liabilities)/Assets, Net expense includes the deferral to expense of energy supply costs and the amortization of certain costs, which are recovered from customers in rates and have no impact on earnings.  The increase for the three and six months ended June 30, 2017, as compared to the same periods in 2016, was due primarily to the deferral adjustment of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.  The deferral adjusts expense to match the corresponding revenues.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense decreased for the three months ended June 30, 2017, as compared to the same period in 2016, driven by a $12.4 million decrease in non-tracked costs, which was primarily attributable to lower employee-related expenses and lower bad debt expense, as well as a $1.6 million decrease in tracked costs, which was primarily attributable to lower tracked bad debt expense, partially offset by higher transmission expenses.

Operations and Maintenance expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, driven by a $6.7 million increase in tracked costs, which was primarily attributable to higher transmission expenses, partially offset by lower tracked bad debt expense. Non-tracked costs decreased $3.4 million, which was primarily attributable to lower employee-related expenses and lower bad debt expense, partially offset by higher storm restoration costs, higher shared corporate costs and higher system resiliency project costs.

Interest Expense decreased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to lower interest on regulatory deferral mechanisms ($1.4 million) and an increase in AFUDC attributable to borrowed funds ($0.7 million).

Income Tax Expense increased for the three months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher pre-tax earnings ($4.2 million) and higher state taxes ($1.0 million), partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.5 million).

Income Tax Expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher pre-tax earnings ($7.0 million) and higher state taxes ($1.9 million), partially offset by items that impact our tax rate as a result of flow-through items and permanent differences ($0.4 million).

EARNINGS SUMMARY

CL&P's earnings increased $8.4 millionfor the three months ended June 30, 2017, as compared to the same period in 2016, due primarily to lower operations and maintenance expense and higher distribution revenues due in part to a higher rate base for the system resiliency program.  These favorable earnings impacts were partially offset by higher depreciation expense.

CL&P's earnings increased $11.6 million for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to an increase in transmission earnings driven by a higher transmission rate base, higher distribution revenues due in part to a higher rate base for the system resiliency program, and lower operations and maintenance expense.  These favorable earnings impacts were partially offset by higher depreciation expense.

49

LIQUIDITY

Cash totaled $5.8 million as of June 30, 2017, compared with $6.6 million as of December 31, 2016.

CL&P had cash flows provided by operating activities of $353.9 million for the six months ended June 30, 2017, as compared to $429.4 million in the same period of 2016.  The decrease in operating cash flows was due primarily to $117.1 million in lower income tax refunds received in 2017, as compared to 2016, and the timing of payments of working capital items. Partially offsetting this decrease was the favorable impact of the timing of regulatory recoveries.

Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt, with intercompany loans to certain subsidiaries, including CL&P.  The weighted-average interest rate on the commercial paper borrowings as of June 30, 2017 and December 31, 2016 was 1.34 percent and 0.88 percent, respectively.  As of June 30, 2017 and December 31, 2016, there were intercompany loans from Eversource parent to CL&P of $101.1 million and $80.1 million, respectively. Eversource parent, and certain of its subsidiaries, including CL&P, are parties to a five-year $1.45 billion revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016. The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.

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 portions of pension expense.  CL&P's investments in property, plant and equipment totaled $419.9 million for the six months ended June 30, 2017.

50

RESULTS OF OPERATIONS – NSTAR ELECTRIC COMPANY AND SUBSIDIARY

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for NSTAR Electric for the six months ended June 30, 2017 and 2016 included in this combined Quarterly Report on Form 10-Q:  

	For the Six Months Ended June 30,
(Millions of Dollars)	2017		2016		Increase/ (Decrease)			Percent
Operating Revenues	$	1,187.8	$	1,205.5	$	(17.7	)	(1.5	)%
Operating Expenses:
Purchased Power and Transmission	430.4		473.5		(43.1		)	(9.1	)
Operations and Maintenance	173.6		183.7		(10.1		)	(5.5	)
Depreciation	111.4		104.5		6.9			6.6
Amortization of Regulatory Assets, Net	8.0		8.7		(0.7		)	(8.0	)
Energy Efficiency Programs	127.2		128.1		(0.9		)	(0.7	)
Taxes Other Than Income Taxes	62.0		66.7		(4.7		)	(7.0	)
Total Operating Expenses	912.6		965.2		(52.6		)	(5.4	)
Operating Income	275.2		240.3		34.9			14.5
Interest Expense	45.5		41.1		4.4			10.7
Other Income, Net	5.3		2.5		2.8			(a)
Income Before Income Tax Expense	235.0		201.7		33.3			16.5
Income Tax Expense	91.5		79.0		12.5			15.8
Net Income	$	143.5	$	122.7	$	20.8		17.0	%

(a) Percent greater than 100 not shown as it is not meaningful.

Operating Revenues

NSTAR Electric's retail sales volumes were as follows:

	For the Six Months Ended June 30,
	2017	2016	Decrease		Percent
Retail Sales Volumes in GWh	9,680	9,781	(101	)	(1.0	)%

NSTAR Electric's Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, decreased by $17.7 million for the six months ended June 30, 2017, as compared to the same period in 2016.  

Base distribution revenues:  Base distribution revenues, excluding LBR, increased $3.3 million for the six months ended June 30, 2017, as compared to the same period in 2016, as a result of an increase in demand revenues driven by heat waves during the second quarter of 2017, partially offset by lower sales volumes in 2017, as compared to 2016. Operating Revenues increased $9.1 million for the six months ended June 30, 2017, as compared to the same period in 2016, as a result of higher LBR revenues. 

Tracked revenues:  Tracked revenues consist of certain costs that are recovered from customers in rates through DPU-approved cost tracking mechanisms and therefore, have no impact on earnings.  Costs recovered through cost tracking mechanisms include energy supply costs, retail transmission charges, energy efficiency program costs, net metering for distributed generation and transition cost recovery revenues.  In addition, tracked revenues include certain incentives earned and carrying charges. Tracked distribution revenues decreased primarily as a result of a decrease in energy supply costs ($35.5 million) driven by decreased average retail prices, a decrease in retail transmission charges ($23.4 million), a decrease in the pension rate adjustment mechanism ($8.3 million), and a decrease in transition cost recovery revenues ($6.7 million).  Partially offsetting these decreases were an increase in net metering revenues ($13.9 million), an increase in revenues related to renewable energy requirements ($14.7 million), and an increase in energy efficiency program revenues ($5.9 million).

Transmission revenues increased by $14.1 million due primarily to the recovery of higher revenue requirements associated with ongoing investments in our transmission infrastructure.

Purchased Power and Transmission expense includes costs associated with purchasing electricity on behalf of NSTAR Electric's customers. These energy supply costs are recovered from customers in DPU-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  Purchased Power and Transmission expense decreased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to the following:  

(Millions of Dollars)	Decrease
Purchased Power Costs	$	(33.8	)
Transmission Costs	(9.3		)
Total Purchased Power and Transmission	$	(43.1	)

51

Included in purchased power costs are the costs associated with NSTAR Electric's basic service charge and deferred energy supply costs.  The basic service charge recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to third party suppliers.  The decrease in purchased power costs was due primarily to lower prices associated with the procurement of energy supply.  The decrease in transmission costs was primarily the result of a decrease in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense decreased for the six months ended June 30, 2017, as compared to the same period in 2016, driven by a $12.5 million decrease in non-tracked costs, which was primarily attributable to lower employee-related expenses and lower bad debt expense, partially offset by a $4.9 million charge recorded in the second quarter of 2017 related to the Boston Harbor civil action settlement and higher shared corporate costs. Tracked costs increased $2.4 million, which was primarily attributable to higher transmission expenses and higher tracked bad debt expense, partially offset by lower tracked employee-related expenses.

Depreciation expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher utility plant in service balances.  

Taxes Other Than Income Taxes expense decreased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to a decrease in property tax rates and lower employment-related taxes.

Interest Expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher interest on long-term debt.

Other Income, Net increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to an increase related to officer insurance policies ($1.5 million) and market value changes related to deferred compensation plans ($1.0 million).

Income Tax Expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher pre-tax earnings ($11.7 million) and higher state taxes ($1.5 million), partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.7 million).

EARNINGS SUMMARY

NSTAR Electric's earnings increased $20.8 million for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to lower operations and maintenance expense, higher distribution revenues as a result of higher LBR and higher demand revenues, and lower property and other tax expense. These favorable earnings impacts were partially offset by higher depreciation expense and higher interest expense.

LIQUIDITY

NSTAR Electric had cash flows provided by operating activities of $138.5 million for the six months ended June 30, 2017, as compared to $165.1 million in the same period of 2016.  The decrease in operating cash flows was due primarily to the unfavorable impact related to changes in the timing of working capital items driven primarily by the timing of accounts payable payments, a decrease in regulatory overrrecoveries due to purchased power costs in excess of collections from customers, and $7.6 million in lower income tax refunds received in 2017, as compared to 2016. Partially offsetting these decreases was a favorable impact related to the timing of collections of accounts receivable.

NSTAR Electric has a $450 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. As of June 30, 2017, NSTAR Electric had no short-term borrowings outstanding and as of December 31, 2016, NSTAR Electric had $126.5 million in short-term borrowings outstanding under its commercial paper program, leaving $450.0 million and $323.5 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively.  The weighted-average interest rate on these borrowings as of December 31, 2016 was 0.71 percent.  NSTAR Electric is a party to a five-year $450 million revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop NSTAR Electric's $450 million commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

52

RESULTS OF OPERATIONS – PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for PSNH for the six months ended June 30, 2017 and 2016 included in this combined Quarterly Report on Form 10-Q:  

	For the Six Months Ended June 30,
(Millions of Dollars)	2017			2016		Increase/ (Decrease)			Percent
Operating Revenues	$	483.5		$	460.8	$	22.7		4.9	%
Operating Expenses:
Purchased Power, Fuel and Transmission	122.2			95.9		26.3			27.4
Operations and Maintenance	127.5			123.0		4.5			3.7
Depreciation	63.2			56.9		6.3			11.1
Amortization of Regulatory (Liabilities)/Assets, Net	(13.5		)	0.3		(13.8		)	(a)
Energy Efficiency Programs	7.0			6.9		0.1			1.4
Taxes Other Than Income Taxes	44.0			44.0		—			—
Total Operating Expenses	350.4			327.0		23.4			7.2
Operating Income	133.1			133.8		(0.7		)	(0.5	)
Interest Expense	25.8			25.0		0.8			3.2
Other Income, Net	1.7			0.4		1.3			(a)
Income Before Income Tax Expense	109.0			109.2		(0.2		)	(0.2	)
Income Tax Expense	43.1			41.9		1.2			2.9
Net Income	$	65.9		$	67.3	$	(1.4	)	(2.1	)%

(a) Percent greater than 100 not shown as it is not meaningful.

Operating Revenues

PSNH's retail sales volumes were as follows:

	For the Six Months Ended June 30,
	2017	2016	Decrease		Percent
Retail Sales Volumes in GWh	3,815	3,818	(3	)	(0.1	)%

PSNH's Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased by $22.7 million for the six months ended June 30, 2017, as compared to the same period in 2016.

Base distribution revenues:  Base distribution revenues increased $4.5 million due primarily to a $1.9 million distribution rate increase effective July 1, 2016 and higher demand revenues in 2017.

Tracked revenues: Tracked revenues consist of certain costs that are recovered from customers in rates through NHPUC-approved cost tracking mechanisms and therefore, have no impact on earnings.  Costs recovered through cost tracking mechanisms include energy supply costs and costs associated with the generation of electricity for customers, retail transmission charges, energy efficiency program costs and stranded cost recovery revenues.  In addition, tracked revenues include certain incentives earned and carrying charges. Tracked distribution revenues increased primarily as a result of an increase in retail transmission charges ($9.5 million) and an increase in both energy supply costs and wholesale generation revenues (totaling $8.4 million) for the six months ended June 30, 2017, as compared to the same period in 2016. The increase in energy supply costs was driven by increased average retail prices. Partially offsetting these increases was a decrease in revenues related to the timing of the sale of RECs ($13.9 million).

Transmission revenues increased by $11.3 million due primarily to higher revenue requirements associated with ongoing investments in our transmission infrastructure.

Purchased Power, Fuel and Transmission expense includes costs associated with PSNH's generation of electricity, as well as purchasing electricity on behalf of its customers.  These generation and energy supply costs are recovered from customers in NHPUC-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  Purchased Power, Fuel and Transmission expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to the following:

(Millions of Dollars)	Increase
Purchased Power and Generation Fuel Costs	$	8.8
Transmission Costs	17.5
Total Purchased Power, Fuel and Transmission	$	26.3

53

In order to meet the demand of customers who have not migrated to third party suppliers, PSNH procures power through power supply contracts and spot purchases in the competitive New England wholesale power market and/or produces power through its own generation.  The increase in purchased power and generation fuel costs was due primarily to higher purchased power energy expenses recovered in the Energy Service rate, and Regional Greenhouse Gas Initiative related expenses recovered in the SCRC. The increase in transmission costs was primarily the result of an increase in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, driven by a $3.7 million increase in tracked costs, which was primarily attributable to higher transmission expenses, as well as a $0.8 million increase in non-tracked costs, which was primarily attributable to higher shared corporate costs and higher storm restoration costs, partially offset by lower employee-related expenses.

Depreciation expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher utility plant in service balances.  

Amortization of Regulatory (Liabilities)/Assets, Net expense includes the deferral to expense of energy supply costs and the amortization of certain costs, which are recovered from customers in rates and have no impact on earnings.  The decrease for the six months ended June 30, 2017, as compared to the same period in 2016, was due primarily to the deferral adjustment of the energy service charge.  The deferral adjusts expense to match the corresponding revenues.  

Income Tax Expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to the absence of tax credits in 2017 ($1.6 million), partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.4 million).

EARNINGS SUMMARY

PSNH's earnings decreased $1.4 million for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to lower generation earnings and higher depreciation expense, partially offset by higher distribution revenues due primarily to a distribution rate increase effective July 1, 2016 and an increase in transmission earnings driven by a higher transmission rate base.

LIQUIDITY

PSNH had cash flows provided by operating activities of $142.1 million for the six months ended June 30, 2017, as compared to $204.3 million in the same period of 2016.  The decrease in operating cash flows was due primarily to income tax payments of $26.5 million made in 2017, as compared to income tax refunds of $37.3 million received in the same period of 2016. Partially offsetting this decrease was $9.8 million of lower Pension Plan contributions made in 2017, as compared to 2016, and the favorable impacts related to the timing of regulatory recoveries.

54

RESULTS OF OPERATIONS – WESTERN MASSACHUSETTS ELECTRIC COMPANY

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for WMECO for the six months ended June 30, 2017 and 2016 included in this combined Quarterly Report on Form 10-Q:  

	For the Six Months Ended June 30,
(Millions of Dollars)	2017			2016		Increase/ (Decrease)			Percent
Operating Revenues	$	250.9		$	244.5	$	6.4		2.6	%
Operating Expenses:
Purchased Power and Transmission	74.7			72.2		2.5			3.5
Operations and Maintenance	44.2			43.9		0.3			0.7
Depreciation	24.3			22.9		1.4			6.1
Amortization of Regulatory (Liabilities)/Assets, Net	(0.8		)	2.2		(3.0		)	(a)
Energy Efficiency Programs	18.7			21.2		(2.5		)	(11.8	)
Taxes Other Than Income Taxes	20.7			19.8		0.9			4.5
Total Operating Expenses	181.8			182.2		(0.4		)	(0.2	)
Operating Income	69.1			62.3		6.8			10.9
Interest Expense	12.4			12.1		0.3			2.5
Other Income/(Loss), Net	0.3			—		0.3			(a)
Income Before Income Tax Expense	57.0			50.2		6.8			13.5
Income Tax Expense	22.2			20.1		2.1			10.4
Net Income	$	34.8		$	30.1	$	4.7		15.6	%

(a) Percent greater than 100 not shown as it is not meaningful.    

Operating Revenues

WMECO's retail sales volumes were as follows:

	For the Six Months Ended June 30,
	2017	2016	Decrease		Percent
Retail Sales Volumes in GWh	1,673	1,707	(34	)	(2.0	)%

WMECO's Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased by $6.4 million for the six months ended June 30, 2017, as compared to the same period in 2016.

Fluctuations in WMECO's sales volumes do not impact the level of base distribution revenue realized or earnings due to the DPU-approved revenue decoupling mechanism.  WMECO's revenue decoupling mechanism permits recovery of a base amount of distribution revenues ($132.4 million annually) and breaks the relationship between sales volumes and revenues recognized.  The revenue decoupling mechanism results in the recovery of approved base distribution revenue requirements.  

Fluctuations in the overall level of operating revenues are primarily related to tracked revenues.  Tracked revenues consist of certain costs that are recovered from customers in rates through DPU-approved cost tracking mechanisms and therefore, have no impact on earnings.  Costs recovered through cost tracking mechanisms include energy supply costs, retail transmission charges, energy efficiency program costs, low income assistance programs, and restructuring and stranded cost recovery revenues.  In addition, tracked revenues include certain incentives earned and carrying charges. Tracked revenues decreased due primarily to a decrease in energy supply costs ($9.2 million) driven by decreased average retail prices, partially offset by increases in retail transmission charges, revenues related to renewable energy requirements and net metering charges ($4.1 million, $3.0 million and $1.5 million, respectively).

Transmission revenues increased by $9.5 million due primarily to higher revenue requirements associated with ongoing investments in our transmission infrastructure.

Purchased Power and Transmission expense includes costs associated with the purchasing of energy supply on behalf of WMECO's customers. These energy supply costs are recovered from customers in DPU-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  Purchased Power and Transmission expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to the following:

(Millions of Dollars)	Increase/(Decrease)
Purchased Power Costs	$	(3.1	)
Transmission Costs	5.6
Total Purchased Power and Transmission	$	2.5

55

Included in purchased power costs are the costs associated with WMECO's basic service charge and deferred energy supply costs.  The basic service charge recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to third party suppliers.  The decrease in purchased power costs was due primarily to lower prices associated with the procurement of energy supply. The increase in transmission costs was primarily the result of an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over Eversource’s local transmission network.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, driven by a $1.0 million increase in tracked costs, which was primarily attributable to higher transmission expenses, partially offset by the deferral adjustment for RECs generated and sold by the WMECO solar program, and lower tracked employee-related expenses. Non-tracked costs decreased $0.7 million, which was primarily attributable to lower employee-related expenses, partially offset by higher shared corporate costs and higher storm restoration costs.

Amortization of Regulatory (Liabilities)/Assets, Net expense decreased for the six months ended June 30, 2017, as compared to the same period in 2016, due to the timing of refunds or recovery of tracked costs to/from customers in rates.  These costs have no impact on earnings.

Income Tax Expense increased for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to higher pre-tax earnings ($2.4 million) partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.3 million).

EARNINGS SUMMARY

WMECO's earnings increased $4.7 million for the six months ended June 30, 2017, as compared to the same period in 2016, due primarily to an increase in transmission earnings driven by a higher transmission rate base, and higher energy efficiency incentives earned, partially offset by higher depreciation expense.

LIQUIDITY

WMECO had cash flows provided by operating activities of $77.7 million for the six months ended June 30, 2017, as compared to $95.9 million in the same period of 2016.  The decrease in operating cash flows was due primarily to a decrease of $20.6 million in income tax refunds in 2017, as compared to 2016, and changes in the timing of working capital items.

56

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.

Other Risk Management Activities

Interest Rate Risk Management:  We manage our interest rate risk exposure in accordance with our written policies and procedures by maintaining a mix of fixed and variable rate long-term debt.  

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 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 June 30, 2017, our Regulated companies did not hold collateral (letters of credit) from counterparties related to our standard service contracts.  As of June 30, 2017, Eversource had $24.4 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 2016 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 2016 Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Management, on behalf of Eversource, CL&P, NSTAR Electric, PSNH and WMECO, evaluated the design and operation of the disclosure controls and procedures as of June 30, 2017 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, PSNH and WMECO 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, PSNH and WMECO during the quarter ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

57

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are parties to various legal proceedings.  We have disclosed these legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our 2016 Form 10-K.  These disclosures are incorporated herein by reference.  

On May 22, 2017, each of the Yankee Companies filed subsequent lawsuits against the DOE in the Court of Federal Claims seeking damages totaling approximately $100 million for CYAPC, YAEC and MYAPC, covering the years from 2013 to 2016 (“DOE Phase IV”). The DOE Phase IV trial is expected to begin in 2018. For a further discussion of the Yankee Companies v. U.S. Department of Energy, see Part I, Item 3, “Legal Proceedings” of our 2016 Form 10-K.

Other than as set forth above, there have been no additional material legal proceedings identified and no further material changes with regard to the legal proceedings previously disclosed in our 2016 Form 10-K.

ITEM 1A. RISK FACTORS

We are subject to a variety of significant risks in addition to the matters set forth under "Forward-Looking Statements," 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 2016 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 2016 Form 10-K.

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 shares awarded under the Company's Incentive Plan and Dividend Reinvestment Plan and 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)
April 1 - April 30, 2017	99,603	$	58.97	—	—
May 1 - May 31, 2017	87,838	61.50		—	—
June 1 - June 30, 2017	99,022	62.10		—	—
Total	286,463	$	60.83	—	—

58

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)
	12	Ratio of Earnings to Fixed Charges
	31	Certification by the 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 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)
	12	Ratio of Earnings to Fixed Charges
	31	Certification by the Chairman 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 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)
*	4.1	A Form of 3.20% Debenture due 2027 (Exhibit 4, NSTAR Electric Company Current Report on Form 8-K filed on May 18, 2017 (Exhibit 4, File No. 001-02301)
	12	Ratio of Earnings to Fixed Charges
	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)
	12	Ratio of Earnings to Fixed Charges
	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

59

Listing of Exhibits (WMECO)
12	Ratio of Earnings to Fixed Charges
31	Certification by the Chairman of Western Massachusetts Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1	Certification by the Chief Financial Officer of Western Massachusetts Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification by the Chairman and the Chief Financial Officer of Western Massachusetts 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 (Eversource, CL&P, NSTAR Electric, PSNH, WMECO)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation

60

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
August 4, 2017	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
August 4, 2017	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
August 4, 2017	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

61

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
August 4, 2017	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.

	WESTERN MASSACHUSETTS ELECTRIC COMPANY
August 4, 2017	By:	/s/ Jay S. Buth
		Jay S. Buth
		Vice President, Controller and Chief Accounting Officer

62

EX-12

Eversource Energy and Subsidiaries																Exhibit 12
Ratio of Earnings to Fixed Charges
(Unaudited)
	Six Months Ended June 30, 2017
				For the Years Ended December 31,
(Thousands of Dollars)				2016			2015			2014			2013			2012 (a)
Earnings, as defined:
Net income	$	493,966		$	949,821		$	886,004		$	827,065		$	793,689		$	533,077
Income tax expense	295,103			554,997			539,967			468,297			426,941			274,926
Equity in earnings of equity investees	(17,889		)	(243		)	(883		)	(1,044		)	(1,318		)	(1,154		)
Dividends received from equity investees	9,389			120			—			—			582			733
Fixed charges, as below	224,606			429,406			397,392			386,451			362,403			353,616
Less: Interest capitalized (including AFUDC)	(5,022		)	(10,791		)	(7,221		)	(5,766		)	(4,062		)	(5,261		)
Preferred dividend security requirements   of consolidated subsidiaries (pre-tax)	(6,265		)	(12,532		)	(12,532		)	(12,532		)	(12,803		)	(11,715		)
Total earnings, as defined	$	993,888		$	1,910,778		$	1,802,727		$	1,662,471		$	1,565,432		$	1,144,222
Fixed charges, as defined:
Interest Expense	$	210,758		$	400,961		$	372,420		$	362,106		$	338,699		$	329,945
Rental interest factor	2,561			5,122			5,219			6,047			6,839			6,695
Preferred dividend security requirements   of consolidated subsidiaries (pre-tax)	6,265			12,532			12,532			12,532			12,803			11,715
Interest capitalized (including AFUDC)	5,022			10,791			7,221			5,766			4,062			5,261
Total fixed charges, as defined	$	224,606		$	429,406		$	397,392		$	386,451		$	362,403		$	353,616
Ratio of Earnings to Fixed Charges	4.43			4.45			4.54			4.30			4.32			3.24
(a) NSTAR amounts were included in Eversource beginning April 10, 2012.

EX-31

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Eversource Energy (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	James J. Judge
	James J. Judge
	Chairman, President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Eversource Energy (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Eversource Energy (the registrant) for the period ending June 30, 2017 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman, President and Chief Executive Officer of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/	James J. Judge
	James J. Judge
	Chairman, President and Chief Executive Officer

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer

Date:  August 4, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-12

The Connecticut Light and Power Company																Exhibit 12
Ratio of Earnings to Fixed Charges
(Unaudited)
	Six Months Ended June 30, 2017
				For the Years Ended December 31,
(Thousands of Dollars)				2016			2015			2014			2013			2012
Earnings, as defined:
Net income	$	181,501		$	334,254		$	299,360		$	287,754		$	279,412		$	209,725
Income tax expense	106,855			208,308			177,396			133,451			141,663			94,437
Equity in earnings of equity investees	(20		)	(61		)	(31		)	(32		)	(67		)	(40		)
Dividends received from equity investees	—			60			—			—			289			—
Fixed charges, as below	74,938			152,635			153,751			152,513			139,929			139,982
Less: Interest capitalized (including AFUDC)	(2,071		)	(3,319		)	(2,630		)	(1,867		)	(2,249		)	(2,456		)
Total earnings, as defined	$	361,203		$	691,877		$	627,846		$	571,819		$	558,977		$	441,648
Fixed charges, as defined:
Interest Expense	$	70,264		$	144,110		$	145,795		$	147,421		$	133,650		$	133,127
Rental interest factor	2,603			5,206			5,326			3,225			4,030			4,399
Interest capitalized (including AFUDC)	2,071			3,319			2,630			1,867			2,249			2,456
Total fixed charges, as defined	$	74,938		$	152,635		$	153,751		$	152,513		$	139,929		$	139,982
Ratio of Earnings to Fixed Charges	4.82			4.53			4.08			3.75			3.99			3.16

EX-31

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of The Connecticut Light and Power Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	James J. Judge
	James J. Judge
	Chairman
	(Principal Executive Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of The Connecticut Light and Power Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of The Connecticut Light and Power Company (the registrant) for the period ending June 30, 2017 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/	James J. Judge
	James J. Judge
	Chairman

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer

Date:  August 4, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-12

NSTAR Electric Company and Subsidiary																Exhibit 12
Ratio of Earnings to Fixed Charges
(Unaudited)
	Six Months Ended June 30, 2017
				For the Years Ended December 31,
(Thousands of Dollars)				2016			2015			2014			2013			2012
Earnings, as defined:
Net income	$	143,525		$	292,705		$	344,542		$	303,088		$	268,546		$	190,242
Income tax expense	91,524			187,767			228,044			201,981			172,866			123,966
Equity in earnings of equity investees	73			(309		)	(343		)	(408		)	(550		)	(412		)
Dividends received from equity investees	—			20			—			—			344			286
Fixed charges, as below	48,675			91,766			80,536			82,503			73,115			72,364
Less: Interest capitalized (including AFUDC)	(1,638		)	(4,634		)	(1,980		)	(2,027		)	(511		)	(259		)
Total earnings, as defined	$	282,159		$	567,315		$	650,799		$	585,137		$	513,810		$	386,187
Fixed charges, as defined:
Interest Expense	$	45,473		$	84,005		$	75,347		$	77,878		$	70,383		$	70,054
Rental interest factor	1,564			3,127			3,209			2,598			2,221			2,051
Interest capitalized (including AFUDC)	1,638			4,634			1,980			2,027			511			259
Total fixed charges, as defined	$	48,675		$	91,766		$	80,536		$	82,503		$	73,115		$	72,364
Ratio of Earnings to Fixed Charges	5.80			6.18			8.08			7.09			7.03			5.34

EX-31

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of NSTAR Electric Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	James J. Judge
	James J. Judge
	Chairman
	(Principal Executive Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of NSTAR Electric Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of NSTAR Electric Company (the registrant) for the period ending June 30, 2017 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/	James J. Judge
	James J. Judge
	Chairman

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer

Date:  August 4, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-12

Public Service Company of New Hampshire and Subsidiary																Exhibit 12
Ratio of Earnings to Fixed Charges
(Unaudited)
	Six Months Ended June 30, 2017
				For the Years Ended December 31,
(Thousands of Dollars)				2016			2015			2014			2013			2012
Earnings, as defined:
Net income	$	65,903		$	131,985		$	114,442		$	113,944		$	111,397		$	96,882
Income tax expense	43,116			82,364			73,060			72,135			71,101			60,993
Equity in earnings of equity investees	(4		)	(15		)	(8		)	(8		)	(12		)	(8		)
Dividends received from equity investees	—			25			—			—			42			—
Fixed charges, as below	26,613			51,843			47,949			46,530			47,318			52,769
Less: Interest capitalized (including AFUDC)	(325		)	(787		)	(994		)	(640		)	(500		)	(1,579		)
Total earnings, as defined	$	135,303		$	265,415		$	234,449		$	231,961		$	229,346		$	209,057
Fixed charges, as defined:
Interest Expense	$	25,780		$	50,040		$	45,990		$	45,349		$	46,176		$	50,228
Rental interest factor	508			1,016			965			541			642			962
Interest capitalized (including AFUDC)	325			787			994			640			500			1,579
Total fixed charges, as defined	$	26,613		$	51,843		$	47,949		$	46,530		$	47,318		$	52,769
Ratio of Earnings to Fixed Charges	5.08			5.12			4.89			4.99			4.85			3.96

EX-31

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Public Service Company of New Hampshire (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	James J. Judge
	James J. Judge
	Chairman
	(Principal Executive Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Public Service Company of New Hampshire (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Public Service Company of New Hampshire (the registrant) for the period ending June 30, 2017 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/	James J. Judge
	James J. Judge
	Chairman

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer

Date:  August 4, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-12

Western Massachusetts Electric Company																Exhibit 12
Ratio of Earnings to Fixed Charges
(Unaudited)
	Six Months Ended June 30, 2017
				For the Years Ended December 31,
(Thousands of Dollars)				2016			2015			2014			2013			2012
Earnings, as defined:
Net income	$	34,839		$	58,072		$	56,506		$	57,819		$	60,438		$	54,503
Income tax expense	22,176			38,022			36,970			37,268			37,368			32,140
Equity in earnings of equity investees	(5		)	(16		)	(8		)	(8		)	(18		)	(11		)
Dividends received from equity investees	—			15			—			—			80			—
Fixed charges, as below	13,147			25,776			26,553			26,202			26,316			28,162
Less: Interest capitalized (including AFUDC)	(362		)	(644		)	(1,042		)	(864		)	(498		)	(534		)
Total earnings, as defined	$	69,795		$	121,225		$	118,979		$	120,417		$	123,686		$	114,260
Fixed charges, as defined:
Interest Expense	$	12,431		$	24,425		$	24,792		$	24,931		$	24,851		$	26,634
Rental interest factor	354			707			719			407			967			994
Interest capitalized (including AFUDC)	362			644			1,042			864			498			534
Total fixed charges, as defined	$	13,147		$	25,776		$	26,553		$	26,202		$	26,316		$	28,162
Ratio of Earnings to Fixed Charges	5.31			4.70			4.48			4.60			4.70			4.06

EX-31

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Western Massachusetts Electric Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	James J. Judge
	James J. Judge
	Chairman
	(Principal Executive Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Western Massachusetts Electric Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 4, 2017

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Western Massachusetts Electric Company (the registrant) for the period ending June 30, 2017 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/	James J. Judge
	James J. Judge
	Chairman

/s/	Philip J. Lembo
	Philip J. Lembo
	Executive Vice President and Chief Financial Officer

Date:  August 4, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

XML

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity [Line Items]
Entity Registrant Name	Eversource Energy
Entity Central Index Key	0000072741
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Trading Symbol	ES
Entity Common Stock, Shares Outstanding (in shares)		316,885,808
The Connecticut Light And Power Company [Member]
Document And Entity [Line Items]
Entity Registrant Name	The Connecticut Light and Power Company
Entity Central Index Key	0000023426
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		6,035,205
Public Service Company Of New Hampshire [Member]
Document And Entity [Line Items]
Entity Registrant Name	Public Service Company of New Hampshire
Entity Central Index Key	0000315256
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		301
Western Massachusetts Electric Company [Member]
Document And Entity [Line Items]
Entity Registrant Name	Western Massachusetts Electric Company
Entity Central Index Key	0000106170
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		434,653
NSTAR Electric Company [Member]
Document And Entity [Line Items]
Entity Registrant Name	NSTAR Electric Company
Entity Central Index Key	0000013372
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		100

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and Cash Equivalents	$ 24,638	$ 30,251
Receivables, Net	833,945	847,301
Unbilled Revenues	158,183	168,490
Fuel, Materials, Supplies and Inventory	286,296	328,721
Regulatory Assets	870,393	887,625
Prepayments and Other Current Assets	157,359	215,284
Total Current Assets	2,330,814	2,477,672
Property, Plant and Equipment, Net	22,071,496	21,350,510
Deferred Debits and Other Assets:
Regulatory Assets	3,580,981	3,638,688
Goodwill	3,519,401	3,519,401
Marketable Securities	565,460	544,642
Other Long-Term Assets	590,688	522,260
Total Deferred Debits and Other Assets	8,256,530	8,224,991
Total Assets	32,658,840	32,053,173
Current Liabilities:
Notes Payable	937,500	1,148,500
Long-Term Debt – Current Portion	1,483,883	773,883
Accounts Payable	587,174	884,521
Regulatory Liabilities	185,930	146,787
Other Current Liabilities	591,222	684,914
Total Current Liabilities	3,785,709	3,638,605
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	5,900,052	5,607,207
Regulatory Liabilities	696,740	702,255
Derivative Liabilities	402,138	413,676
Accrued Pension and SERP	1,073,510	1,141,514
Other Long-Term Liabilities	860,579	853,260
Total Deferred Credits and Other Liabilities	8,933,019	8,717,912
Capitalization:
Long-Term Debt	8,899,021	8,829,354
Noncontrolling Interest - Preferred Stock of Subsidiaries	155,568	155,568
Common Shareholders' Equity:
Common Shares	1,669,392	1,669,392
Capital Surplus, Paid In	6,232,501	6,250,224
Retained Earnings	3,364,336	3,175,171
Accumulated Other Comprehensive Loss	(62,935)	(65,282)
Treasury Stock	(317,771)	(317,771)
Common Stockholder's Equity	10,885,523	10,711,734
Total Capitalization	19,940,112	19,696,656
Total Liabilities and Capitalization	32,658,840	32,053,173
The Connecticut Light And Power Company [Member]
Current Assets:
Cash and Cash Equivalents	5,837	6,579
Receivables, Net	371,504	359,132
Accounts Receivable from Affiliated Companies	22,805	16,851
Unbilled Revenues	50,436	50,373
Materials, Supplies and Inventory	57,324	52,050
Regulatory Assets	346,520	335,526
Prepayments and Other Current Assets	14,608	52,670
Total Current Assets	869,034	873,181
Property, Plant and Equipment, Net	7,940,398	7,632,392
Deferred Debits and Other Assets:
Regulatory Assets	1,343,011	1,391,564
Other Long-Term Assets	138,405	137,907
Total Deferred Debits and Other Assets	1,481,416	1,529,471
Total Assets	10,290,848	10,035,044
Current Liabilities:
Notes Payable to Eversource Parent	101,100	80,100
Long-Term Debt – Current Portion	400,000	250,000
Accounts Payable	229,435	289,532
Accounts Payable to Affiliated Companies	54,046	88,075
Obligations to Third Party Suppliers	52,854	55,520
Regulatory Liabilities	62,195	47,055
Derivative Liabilities	64,301	77,765
Other Current Liabilities	143,998	120,399
Total Current Liabilities	1,107,929	1,008,446
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	2,071,421	1,987,661
Regulatory Liabilities	101,863	100,138
Derivative Liabilities	402,002	412,750
Accrued Pension and SERP	301,691	300,208
Other Long-Term Liabilities	125,996	123,244
Total Deferred Credits and Other Liabilities	3,002,973	2,924,001
Capitalization:
Long-Term Debt	2,513,522	2,516,010
Noncontrolling Interest - Preferred Stock of Subsidiaries	116,200	116,200
Common Shareholders' Equity:
Common Shares	60,352	60,352
Capital Surplus, Paid In	2,110,739	2,110,714
Retained Earnings	1,378,895	1,299,374
Accumulated Other Comprehensive Loss	238	(53)
Common Stockholder's Equity	3,550,224	3,470,387
Total Capitalization	6,179,946	6,102,597
Total Liabilities and Capitalization	10,290,848	10,035,044
NSTAR Electric Company [Member]
Current Assets:
Cash and Cash Equivalents	4,475	3,494
Receivables, Net	261,344	257,557
Accounts Receivable from Affiliated Companies	28,619	8,581
Unbilled Revenues	40,163	31,632
Taxes Receivable	3,532	39,738
Fuel, Materials, Supplies and Inventory	35,067	62,288
Regulatory Assets	270,230	289,400
Prepayments and Other Current Assets	17,730	14,906
Total Current Assets	661,160	707,596
Property, Plant and Equipment, Net	6,188,535	6,051,835
Deferred Debits and Other Assets:
Regulatory Assets	1,064,099	1,057,746
Prepaid PBOP	109,658	95,073
Other Long-Term Assets	71,657	60,572
Total Deferred Debits and Other Assets	1,245,414	1,213,391
Total Assets	8,095,109	7,972,822
Current Liabilities:
Notes Payable	0	126,500
Long-Term Debt – Current Portion	400,000	400,000
Accounts Payable	151,056	232,599
Accounts Payable to Affiliated Companies	8,389	91,532
Obligations to Third Party Suppliers	67,254	55,863
Renewable Portfolio Standards Compliance Obligations	44,258	75,571
Regulatory Liabilities	48,350	63,653
Other Current Liabilities	48,736	71,122
Total Current Liabilities	768,043	1,116,840
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	1,898,526	1,836,292
Regulatory Liabilities	394,527	391,823
Accrued Pension and SERP	111,994	111,827
Other Long-Term Liabilities	130,023	123,194
Total Deferred Credits and Other Liabilities	2,535,070	2,463,136
Capitalization:
Long-Term Debt	2,025,929	1,678,116
Noncontrolling Interest - Preferred Stock of Subsidiaries	43,000	43,000
Common Shareholders' Equity:
Common Shares	0	0
Capital Surplus, Paid In	1,047,178	1,045,378
Retained Earnings	1,675,529	1,625,984
Accumulated Other Comprehensive Loss	360	368
Common Stockholder's Equity	2,723,067	2,671,730
Total Capitalization	4,791,996	4,392,846
Total Liabilities and Capitalization	8,095,109	7,972,822
Public Service Company Of New Hampshire [Member]
Current Assets:
Cash and Cash Equivalents	192	4,646
Receivables, Net	81,937	84,450
Accounts Receivable from Affiliated Companies	3,781	4,185
Unbilled Revenues	41,723	41,004
Taxes Receivable	27,122	6,177
Fuel, Materials, Supplies and Inventory	150,066	162,354
Regulatory Assets	132,424	117,240
Prepayments and Other Current Assets	20,514	22,731
Total Current Assets	457,759	442,787
Property, Plant and Equipment, Net	3,118,456	3,039,313
Deferred Debits and Other Assets:
Regulatory Assets	249,612	245,525
Other Long-Term Assets	47,075	37,720
Total Deferred Debits and Other Assets	296,687	283,245
Total Assets	3,872,902	3,765,345
Current Liabilities:
Notes Payable to Eversource Parent	194,100	160,900
Long-Term Debt – Current Portion	180,000	70,000
Accounts Payable	78,218	85,716
Accounts Payable to Affiliated Companies	21,207	29,154
Regulatory Liabilities	13,696	12,659
Other Current Liabilities	46,415	43,253
Total Current Liabilities	533,636	401,682
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	821,799	785,385
Regulatory Liabilities	43,845	44,779
Accrued Pension and SERP	101,143	94,652
Other Long-Term Liabilities	50,051	49,442
Total Deferred Credits and Other Liabilities	1,016,838	974,258
Capitalization:
Long-Term Debt	892,333	1,002,048
Common Shareholders' Equity:
Common Shares	0	0
Capital Surplus, Paid In	843,134	843,134
Retained Earnings	591,288	549,286
Accumulated Other Comprehensive Loss	(4,327)	(5,063)
Common Stockholder's Equity	1,430,095	1,387,357
Total Capitalization	2,322,428	2,389,405
Total Liabilities and Capitalization	3,872,902	3,765,345
Western Massachusetts Electric Company [Member]
Current Assets:
Cash and Cash Equivalents	0	0
Receivables, Net	54,178	54,940
Accounts Receivable from Affiliated Companies	11,393	14,425
Unbilled Revenues	17,335	15,329
Fuel, Materials, Supplies and Inventory	5,784	8,618
Regulatory Assets	67,310	64,123
Prepayments and Other Current Assets	1,821	2,595
Total Current Assets	157,821	160,030
Property, Plant and Equipment, Net	1,719,824	1,678,262
Deferred Debits and Other Assets:
Regulatory Assets	124,899	127,291
Other Long-Term Assets	33,780	29,062
Total Deferred Debits and Other Assets	158,679	156,353
Total Assets	2,036,324	1,994,645
Current Liabilities:
Notes Payable to Eversource Parent	68,700	51,000
Accounts Payable	32,258	56,036
Accounts Payable to Affiliated Companies	28,484	19,478
Obligations to Third Party Suppliers	9,458	10,508
Renewable Portfolio Standards Compliance Obligations	11,114	20,383
Regulatory Liabilities	11,062	14,888
Other Current Liabilities	12,574	14,984
Total Current Liabilities	173,650	187,277
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	523,028	490,793
Regulatory Liabilities	20,887	17,227
Accrued Pension and SERP	19,798	20,390
Other Long-Term Liabilities	45,471	41,308
Total Deferred Credits and Other Liabilities	609,184	569,718
Capitalization:
Long-Term Debt	566,293	566,536
Common Shareholders' Equity:
Common Shares	10,866	10,866
Capital Surplus, Paid In	444,398	444,398
Retained Earnings	234,051	218,212
Accumulated Other Comprehensive Loss	(2,118)	(2,362)
Common Stockholder's Equity	687,197	671,114
Total Capitalization	1,253,490	1,237,650
Total Liabilities and Capitalization	$ 2,036,324	$ 1,994,645

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating Revenues	$ 1,762,811	$ 1,767,184	$ 3,867,946	$ 3,822,819
Operating Expenses:
Purchased Power, Fuel and Transmission	549,704	581,260	1,303,353	1,336,119
Operations and Maintenance	302,714	320,714	632,979	640,850
Depreciation	189,881	176,507	376,686	350,492
Amortization of Regulatory (Liabilities)/Assets, Net	(7,807)	(8,716)	16,210	12,281
Energy Efficiency Programs	116,398	119,667	262,556	256,842
Taxes Other Than Income Taxes	156,234	154,330	311,455	314,277
Total Operating Expenses	1,307,124	1,343,762	2,903,239	2,910,861
Operating Income	455,687	423,422	964,707	911,958
Interest Expense	107,329	100,492	210,758	198,703
Other Income/(Loss), Net	21,543	8,038	35,120	10,049
Income Before Income Tax Expense	369,901	330,968	789,069	723,304
Income Tax Expense	137,272	125,439	295,103	271,742
Net Income	232,629	205,529	493,966	451,562
Net Income Attributable to Noncontrolling Interests	1,880	1,880	3,759	3,759
Net Income Attributable to Common Shareholders	$ 230,749	$ 203,649	$ 490,207	$ 447,803
Basic and Diluted Earnings Per Common Share (in dollars per share)	$ 0.72	$ 0.64	$ 1.54	$ 1.41
Dividends Declared Per Common Share (in dollars per share)	$ 0.48	$ 0.45	$ 0.95	$ 0.89
Weighted Average Common Shares Outstanding:
Basic (in shares)	317,391,365	317,785,495	317,427,258	317,651,319
Diluted (in shares)	317,947,194	318,476,699	318,035,864	318,478,876
The Connecticut Light And Power Company [Member]
Operating Revenues	$ 666,558	$ 679,787	$ 1,398,867	$ 1,415,103
Operating Expenses:
Purchased Power, Fuel and Transmission	207,211	234,504	452,149	507,104
Operations and Maintenance	108,501	122,532	236,727	233,375
Depreciation	60,797	57,532	120,549	114,500
Amortization of Regulatory (Liabilities)/Assets, Net	11,422	(2,988)	24,225	6,891
Energy Efficiency Programs	32,153	35,498	68,744	73,589
Taxes Other Than Income Taxes	70,437	70,568	144,414	146,030
Total Operating Expenses	490,521	517,646	1,046,808	1,081,489
Operating Income	176,037	162,141	352,059	333,614
Interest Expense	35,299	35,978	70,264	72,477
Other Income/(Loss), Net	3,804	6,275	6,561	7,211
Income Before Income Tax Expense	144,542	132,438	288,356	268,348
Income Tax Expense	53,249	49,563	106,855	98,427
Net Income	91,293	82,875	181,501	169,921
NSTAR Electric Company [Member]
Operating Revenues	584,069	591,301	1,187,848	1,205,517
Operating Expenses:
Purchased Power, Fuel and Transmission	197,291	219,189	430,384	473,525
Operations and Maintenance	85,281	88,954	173,632	183,650
Depreciation	56,181	52,571	111,397	104,457
Amortization of Regulatory (Liabilities)/Assets, Net	2,984	3,971	7,961	8,654
Energy Efficiency Programs	59,876	61,922	127,188	128,165
Taxes Other Than Income Taxes	34,648	34,194	62,041	66,750
Total Operating Expenses	436,261	460,801	912,603	965,201
Operating Income	147,808	130,500	275,245	240,316
Interest Expense	23,445	20,216	45,473	41,104
Other Income/(Loss), Net	2,029	2,836	5,277	2,502
Income Before Income Tax Expense	126,392	113,120	235,049	201,714
Income Tax Expense	49,029	44,953	91,524	79,053
Net Income	77,363	68,167	143,525	122,661
Public Service Company Of New Hampshire [Member]
Operating Revenues	230,383	218,517	483,541	460,807
Operating Expenses:
Purchased Power, Fuel and Transmission	60,442	45,653	122,189	95,867
Operations and Maintenance	65,134	63,788	127,484	123,001
Depreciation	32,447	28,644	63,182	56,879
Amortization of Regulatory (Liabilities)/Assets, Net	(18,937)	(8,186)	(13,492)	332
Energy Efficiency Programs	3,287	3,259	7,032	6,879
Taxes Other Than Income Taxes	23,118	22,287	44,001	44,082
Total Operating Expenses	165,491	155,445	350,396	327,040
Operating Income	64,892	63,072	133,145	133,767
Interest Expense	12,970	12,526	25,780	24,987
Other Income/(Loss), Net	456	282	1,654	432
Income Before Income Tax Expense	52,378	50,828	109,019	109,212
Income Tax Expense	20,787	19,573	43,116	41,899
Net Income	31,591	31,255	65,903	67,313
Western Massachusetts Electric Company [Member]
Operating Revenues	120,744	116,396	250,879	244,491
Operating Expenses:
Purchased Power, Fuel and Transmission	33,858	32,665	74,724	72,228
Operations and Maintenance	21,743	22,088	44,242	43,893
Depreciation	12,296	11,476	24,298	22,847
Amortization of Regulatory (Liabilities)/Assets, Net	(361)	992	(849)	2,203
Energy Efficiency Programs	8,079	10,347	18,743	21,203
Taxes Other Than Income Taxes	10,197	9,600	20,624	19,833
Total Operating Expenses	85,812	87,168	181,782	182,207
Operating Income	34,932	29,228	69,097	62,284
Interest Expense	6,182	6,072	12,431	12,075
Other Income/(Loss), Net	272	104	349	(46)
Income Before Income Tax Expense	29,022	23,260	57,015	50,163
Income Tax Expense	11,401	9,995	22,176	20,071
Net Income	$ 17,621	$ 13,265	$ 34,839	$ 30,092

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net Income	$ 232,629	$ 205,529	$ 493,966	$ 451,562
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	514	534	1,048	1,068
Changes in Unrealized Gains/(Losses) on Marketable Securities	960	1,061	2,605	1,325
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	(2,268)	(1,784)	(1,306)	(913)
Net OCI	(794)	(189)	2,347	1,480
Comprehensive Income Attributable to Noncontrolling Interests	(1,880)	(1,880)	(3,759)	(3,759)
Comprehensive Income Attributable to Common Shareholders	229,955	203,460	492,554	449,283
The Connecticut Light And Power Company [Member]
Net Income	91,293	82,875	181,501	169,921
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	91	111	202	222
Changes in Unrealized Gains/(Losses) on Marketable Securities	33	36	89	45
Net OCI	124	147	291	267
Comprehensive Income Attributable to Common Shareholders	91,417	83,022	181,792	170,188
NSTAR Electric Company [Member]
Net Income	77,363	68,167	143,525	122,661
Other Comprehensive (Loss)/Income, Net of Tax:
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	(4)	(11)	(8)	(21)
Net OCI	(4)	(11)	(8)	(21)
Comprehensive Income Attributable to Common Shareholders	77,359	68,156	143,517	122,640
Public Service Company Of New Hampshire [Member]
Net Income	31,591	31,255	65,903	67,313
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	290	291	581	581
Changes in Unrealized Gains/(Losses) on Marketable Securities	58	63	155	79
Net OCI	348	354	736	660
Comprehensive Income Attributable to Common Shareholders	31,939	31,609	66,639	67,973
Western Massachusetts Electric Company [Member]
Net Income	17,621	13,265	34,839	30,092
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	110	110	219	219
Changes in Unrealized Gains/(Losses) on Marketable Securities	9	10	25	13
Net OCI	119	120	244	232
Comprehensive Income Attributable to Common Shareholders	$ 17,740	$ 13,385	$ 35,083	$ 30,324

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities:
Net Income	$ 493,966	$ 451,562
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	376,686	350,492
Deferred Income Taxes	269,505	250,851
Pension, SERP and PBOP Expense, Net	11,242	22,659
Pension and PBOP Contributions	(91,400)	(65,929)
Regulatory (Under)/Over Recoveries, Net	85,792	(5,768)
Amortization of Regulatory (Liabilities)/Assets, Net	16,210	12,281
Other	(94,666)	(10,808)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(7,660)	(76,751)
Fuel, Materials, Supplies and Inventory	42,425	43,930
Taxes Receivable/Accrued, Net	23,980	230,075
Accounts Payable	(168,221)	(151,996)
Other Current Assets and Liabilities, Net	(49,889)	(72,160)
Net Cash Flows Provided by Operating Activities	907,970	978,438
Investing Activities:
Investments in Property, Plant and Equipment	(1,146,952)	(869,168)
Proceeds from Sales of Marketable Securities	373,853	327,581
Purchases of Marketable Securities	(394,379)	(322,244)
Other Investing Activities	(11,050)	(2,991)
Net Cash Flows Used in Investing Activities	(1,178,528)	(866,822)
Financing Activities:
Cash Dividends on Common Shares	(301,042)	(282,314)
Cash Dividends on Preferred Stock	(3,759)	(3,759)
Decrease in Notes Payable	(211,000)	(393,953)
Issuance of Long-Term Debt	950,000	800,000
Retirements of Long-Term Debt	(150,000)	(200,000)
Other Financing Activities	(19,254)	(16,811)
Net Cash Flows Provided by/(Used in) Financing Activities	264,945	(96,837)
Net Increase (decrease) in Cash and Cash Equivalents	(5,613)	14,779
Cash and Cash Equivalents - Beginning of Period	30,251	23,947
Cash and Cash Equivalents - End of Period	24,638	38,726
The Connecticut Light And Power Company [Member]
Operating Activities:
Net Income	181,501	169,921
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	120,549	114,500
Deferred Income Taxes	73,277	97,913
Pension, SERP and PBOP (Benefits)/Expense, Net	3,071	3,325
Regulatory (Under)/Over Recoveries, Net	9,762	(40,386)
Amortization of Regulatory (Liabilities)/Assets, Net	24,225	6,891
Other	(27,623)	(4,477)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(22,333)	(26,729)
Taxes Receivable/Accrued, Net	41,733	145,852
Accounts Payable	(63,813)	(38,137)
Other Current Assets and Liabilities, Net	13,541	774
Net Cash Flows Provided by Operating Activities	353,890	429,447
Investing Activities:
Investments in Property, Plant and Equipment	(419,891)	(288,630)
Proceeds from the Sale of Property, Plant and Equipment	0	9,047
Other Investing Activities	132	205
Net Cash Flows Used in Investing Activities	(419,759)	(279,378)
Financing Activities:
Cash Dividends on Common Shares	(99,200)	(99,800)
Capital Contributions from Eversource Parent	0	145,700
Cash Dividends on Preferred Stock	(2,779)	(2,779)
Increase/(Decrease) in Notes Payable to Eversource Parent	21,000	(184,400)
Issuance of Long-Term Debt	300,000	0
Retirements of Long-Term Debt	(150,000)	0
Other Financing Activities	(3,894)	(398)
Net Cash Flows Provided by/(Used in) Financing Activities	65,127	(141,677)
Net Increase (decrease) in Cash and Cash Equivalents	(742)	8,392
Cash and Cash Equivalents - Beginning of Period	6,579	1,057
Cash and Cash Equivalents - End of Period	5,837	9,449
NSTAR Electric Company [Member]
Operating Activities:
Net Income	143,525	122,661
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	111,397	104,457
Deferred Income Taxes	60,673	48,505
Pension and PBOP Contributions	(15,360)	(15,428)
Pension, SERP and PBOP (Benefits)/Expense, Net	(4,944)	2,192
Regulatory (Under)/Over Recoveries, Net	8,257	26,277
Amortization of Regulatory (Liabilities)/Assets, Net	7,961	8,654
Other	(15,309)	(3,978)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(42,050)	(56,140)
Fuel, Materials, Supplies and Inventory	27,221	35,194
Taxes Receivable/Accrued, Net	36,207	45,608
Accounts Payable	(133,614)	(88,774)
Other Current Assets and Liabilities, Net	(45,430)	(64,084)
Net Cash Flows Provided by Operating Activities	138,534	165,144
Investing Activities:
Investments in Property, Plant and Equipment	(262,097)	(199,824)
Other Investing Activities	(3,617)	0
Net Cash Flows Used in Investing Activities	(265,714)	(199,824)
Financing Activities:
Cash Dividends on Common Shares	(93,000)	(278,300)
Capital Contributions from Eversource Parent	1,800	0
Cash Dividends on Preferred Stock	(980)	(980)
Decrease in Notes Payable	(126,500)	266,500
Issuance of Long-Term Debt	350,000	250,000
Retirements of Long-Term Debt	0	(200,000)
Other Financing Activities	(3,159)	(2,495)
Net Cash Flows Provided by/(Used in) Financing Activities	128,161	34,725
Net Increase (decrease) in Cash and Cash Equivalents	981	45
Cash and Cash Equivalents - Beginning of Period	3,494	3,346
Cash and Cash Equivalents - End of Period	4,475	3,391
Public Service Company Of New Hampshire [Member]
Operating Activities:
Net Income	65,903	67,313
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	63,182	56,879
Deferred Income Taxes	37,670	45,976
Regulatory (Under)/Over Recoveries, Net	(1,964)	(10,740)
Amortization of Regulatory (Liabilities)/Assets, Net	(13,492)	332
Other	(6,763)	(8,484)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(1,427)	(5,247)
Fuel, Materials, Supplies and Inventory	12,288	5,394
Taxes Receivable/Accrued, Net	(20,945)	33,840
Accounts Payable	2,236	20,417
Other Current Assets and Liabilities, Net	5,419	(1,422)
Net Cash Flows Provided by Operating Activities	142,107	204,258
Investing Activities:
Investments in Property, Plant and Equipment	(155,737)	(138,713)
Other Investing Activities	26	172
Net Cash Flows Used in Investing Activities	(155,711)	(138,541)
Financing Activities:
Cash Dividends on Common Shares	(23,900)	(38,800)
Capital Contributions from Eversource Parent	0	83,000
Increase/(Decrease) in Notes Payable to Eversource Parent	33,200	(110,400)
Other Financing Activities	(150)	(166)
Net Cash Flows Provided by/(Used in) Financing Activities	9,150	(66,366)
Net Increase (decrease) in Cash and Cash Equivalents	(4,454)	(649)
Cash and Cash Equivalents - Beginning of Period	4,646	1,733
Cash and Cash Equivalents - End of Period	192	1,084
Western Massachusetts Electric Company [Member]
Operating Activities:
Net Income	34,839	30,092
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	24,298	22,847
Deferred Income Taxes	31,549	17,155
Regulatory (Under)/Over Recoveries, Net	1,170	(2,651)
Amortization of Regulatory (Liabilities)/Assets, Net	(849)	2,203
Other	(3,767)	(2,547)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(1,178)	6,500
Taxes Receivable/Accrued, Net	(177)	32,985
Accounts Payable	717	(13,176)
Other Current Assets and Liabilities, Net	(8,942)	2,502
Net Cash Flows Provided by Operating Activities	77,660	95,910
Investing Activities:
Investments in Property, Plant and Equipment	(76,397)	(71,459)
Proceeds from Sales of Marketable Securities	863	1,484
Purchases of Marketable Securities	(826)	(1,457)
Net Cash Flows Used in Investing Activities	(76,360)	(71,432)
Financing Activities:
Cash Dividends on Common Shares	(19,000)	(19,000)
Capital Contributions from Eversource Parent	0	35,000
Increase/(Decrease) in Notes Payable to Eversource Parent	17,700	(89,700)
Issuance of Long-Term Debt	0	50,000
Other Financing Activities	0	(191)
Net Cash Flows Provided by/(Used in) Financing Activities	(1,300)	(23,891)
Net Increase (decrease) in Cash and Cash Equivalents	0	587
Cash and Cash Equivalents - Beginning of Period	0	834
Cash and Cash Equivalents - End of Period	$ 0	$ 1,421

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, PSNH, WMECO, Yankee Gas and NSTAR Gas.  Eversource provides energy delivery service to approximately 3.7 million electric and natural gas customers through these six regulated utilities in Connecticut, Massachusetts and New Hampshire.  

On June 2, 2017, Eversource announced that it had entered into an agreement to acquire Aquarion Water Company ("Aquarion") from Macquarie Infrastructure Partners for $1.675 billion, consisting of approximately $880 million in cash and $795 million of assumed Aquarion debt. The transaction requires approval from PURA, the DPU, the NHPUC, the Maine PUC, and the Federal Communications Commission, and is also subject to a review under the Hart-Scott-Rodino Act. On June 29, 2017, Eversource and Aquarion filed joint applications with regulatory agencies in Connecticut, Massachusetts, New Hampshire and Maine requesting approval of the transaction. The transaction is expected to close by December 31, 2017.

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 and WMECO 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 Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2016 Form 10-K, which was filed with the SEC.  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, PSNH's and WMECO's financial position as of June 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016, and the cash flows for the six months ended June 30, 2017 and 2016.  The results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and the cash flows for the six months ended June 30, 2017 and 2016 are not necessarily indicative of the results expected for a full year.  

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's, PSNH's and WMECO's combined ownership interest in each of these entities is greater than 50 percent.  Intercompany transactions between CL&P, NSTAR Electric, PSNH and WMECO and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource's utility subsidiaries' distribution (including generation assets) 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 Effective:  In May 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which amends existing revenue recognition guidance and is required to be applied retrospectively (either to each reporting period presented or cumulatively at the date of initial application).  The Company is evaluating the requirements and potential impacts of ASU 2014-09 and will implement the standard in the first quarter of 2018 cumulatively at the date of initial application. While the guidance continues to be interpreted on an industry specific level, implementation of the ASU is not currently expected to have a material effect on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities, which is required to be implemented in the first quarter of 2018.  The ASU will remove the available-for-sale designation for equity securities, whereby changes in fair value are recorded in accumulated other comprehensive income within shareholders' equity, and will require changes in fair value of all equity securities to be recorded in earnings beginning on January 1, 2018, with the unrealized gain or loss on available-for-sale equity securities as of that date reclassified to retained earnings as a cumulative effect of adoption.  The fair value of available-for-sale equity securities subject to this guidance as of June 30, 2017 was approximately $49 million.  The remaining available-for-sale equity securities included in marketable securities on the balance sheet are held in nuclear decommissioning trusts and are subject to regulatory accounting treatment and will not be impacted by this guidance. Implementation of the ASU for other financial instruments is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

In February 2016, the FASB issued ASU 2016-02, Leases, which changes existing lease accounting guidance and is required to be applied in the first quarter of 2019, with earlier application permitted.  The ASU is required to be implemented for leases beginning on the date of initial application. For prior periods presented, leases are required to be recognized and measured using a modified retrospective approach.  The Company is reviewing the requirements of ASU 2016-02, including balance sheet recognition of leases previously deemed operating leases, and expects to implement the ASU in the first quarter of 2019.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, required to be implemented in the first quarter of 2018. The ASU requires separate presentation of service cost from other components of net pension and PBOP costs, with the other components presented as non-operating income and not subject to capitalization. The Company is assessing the impacts of the ASU on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO; however, implementation of the ASU is not expected to have a material impact on the net income of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

C.    Provision for Uncollectible Accounts

Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, presents its receivables at estimated net realizable value by maintaining a provision for uncollectible accounts.  This provision is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category.  The estimate is based upon historical collection and write-off experience and management's assessment of collectability from customers.  Management continuously assesses the collectability of receivables and adjusts collectability estimates based on actual experience.  Receivable balances are written off against the provision for uncollectible accounts when the customer accounts are terminated and these balances are deemed to be uncollectible.

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 WMECO and NSTAR Gas also to recover in rates, amounts associated with certain uncollectible hardship accounts receivable.  Certain of NSTAR Electric's uncollectible hardship accounts receivable are expected to be recovered in future rates, similar to WMECO and NSTAR Gas. These uncollectible customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets.

The total provision for uncollectible accounts and for uncollectible hardship accounts, which is included in the total provision, is included in Receivables, Net on the balance sheets, and was as follows:

	Total Provision for Uncollectible Accounts				Uncollectible Hardship
(Millions of Dollars)	As of June 30, 2017		As of December 31, 2016		As of June 30, 2017		As of December 31, 2016
Eversource	$	199.0	$	200.6	$	124.5	$	119.9
CL&P	77.5		86.4		64.5		67.7
NSTAR Electric	54.5		54.8		30.7		26.2
PSNH	11.0		9.9		—		—
WMECO	16.4		15.5		10.6		9.9

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 the 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 and AROs, and the estimated fair value of preferred stock and long-term debt.

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, and Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.  The three 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.  

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 10, "Fair Value of Financial Instruments," to the financial statements.

E.    Other Income, Net

Items included within Other Income, Net on the statements of income primarily consist of investment income/(loss), interest income, AFUDC related to equity funds, and income/(loss) related to equity method investments.  Investment income/(loss) primarily relates to debt and equity securities held in trust.  For further information, see Note 5, "Marketable Securities," to the financial statements.  For the three and six months ended June 30, 2017, Eversource had equity in earnings of $13.3 million and $17.9 million, respectively, related to its equity method investments.

F.    Other Taxes

Gross receipts taxes levied by the state of Connecticut are collected by CL&P and Yankee Gas from their respective customers.  These gross receipts taxes are shown 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 Six Months Ended
(Millions of Dollars)	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Eversource	$	35.7	$	37.5	$	77.9	$	79.8
CL&P	31.8		33.6		65.7		69.6

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 June 30, 2017		As of June 30, 2016
Eversource	$	172.0	$	186.3
CL&P	85.9		59.5
NSTAR Electric	29.5		38.5
PSNH	20.2		31.1
WMECO	10.6		14.6

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REGULATORY ACCOUNTING

6 Months Ended

Jun. 30, 2017

Regulated Operations [Abstract]

REGULATORY ACCOUNTING

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 its 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:

Eversource	As of June 30, 2017		As of December 31, 2016
(Millions of Dollars)
Benefit Costs	$	1,833.6	$	1,817.8
Derivative Liabilities	398.1		423.3
Income Taxes, Net	652.5		644.5
Storm Restoration Costs	352.9		385.3
Goodwill-related	454.2		464.4
Regulatory Tracker Mechanisms	584.3		576.6
Asset Retirement Obligations	103.0		99.3
Other Regulatory Assets	72.8		115.1
Total Regulatory Assets	4,451.4		4,526.3
Less:  Current Portion	870.4		887.6
Total Long-Term Regulatory Assets	$	3,581.0	$	3,638.7

	As of June 30, 2017								As of December 31, 2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO		CL&P		NSTAR Electric		PSNH		WMECO
Benefit Costs	$	423.5	$	445.6	$	189.7	$	86.4	$	429.3	$	438.6	$	184.2	$	86.7
Derivative Liabilities	394.8		2.3		—		—		420.5		2.8		—		—
Income Taxes, Net	440.7		91.2		22.4		31.2		437.0		89.7		24.2		30.8
Storm Restoration Costs	210.3		115.3		12.9		14.4		239.8		112.5		17.1		15.9
Goodwill-related	—		389.9		—		—		—		398.7		—		—
Regulatory Tracker Mechanisms	153.0		240.7		125.7		50.5		123.9		257.3		104.5		46.7
Asset Retirement Obligations	34.5		33.2		16.6		4.4		33.2		31.9		16.2		4.2
Other Regulatory Assets	32.7		16.1		14.7		5.3		43.4		15.6		16.5		7.1
Total Regulatory Assets	1,689.5		1,334.3		382.0		192.2		1,727.1		1,347.1		362.7		191.4
Less:  Current Portion	346.5		270.2		132.4		67.3		335.5		289.4		117.2		64.1
Total Long-Term Regulatory Assets	$	1,343.0	$	1,064.1	$	249.6	$	124.9	$	1,391.6	$	1,057.7	$	245.5	$	127.3

Regulatory Costs in Other Long-Term Assets:  Eversource's Regulated companies had $103.0 million (including $3.5 million for CL&P, $40.1 million for NSTAR Electric, $16.4 million for PSNH, and $24.3 million for WMECO) and $86.3 million (including $5.9 million for CL&P, $35.0 million for NSTAR Electric, $8.2 million for PSNH, and $20.1 million for WMECO) of additional regulatory costs as of June 30, 2017 and December 31, 2016, 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:

Eversource	As of June 30, 2017		As of December 31, 2016
(Millions of Dollars)
Cost of Removal	$	474.4	$	459.7
Benefit Costs	129.5		136.2
Regulatory Tracker Mechanisms	176.3		145.3
AFUDC - Transmission	65.6		65.8
Other Regulatory Liabilities	36.8		42.1
Total Regulatory Liabilities	882.6		849.1
Less:  Current Portion	185.9		146.8
Total Long-Term Regulatory Liabilities	$	696.7	$	702.3

	As of June 30, 2017								As of December 31, 2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO		CL&P		NSTAR Electric		PSNH		WMECO
Cost of Removal	$	43.4	$	277.4	$	42.8	$	12.4	$	38.8	$	271.6	$	44.1	$	8.6
Benefit Costs	—		109.4		—		—		—		113.1		—		—
Regulatory Tracker Mechanisms	47.5		48.4		11.7		10.9		37.2		63.7		10.7		14.7
AFUDC - Transmission	49.5		7.4		—		8.7		50.2		6.9		—		8.7
Other Regulatory Liabilities	23.7		0.3		3.0		—		21.0		0.2		2.7		0.1
Total Regulatory Liabilities	164.1		442.9		57.5		32.0		147.2		455.5		57.5		32.1
Less:  Current Portion	62.2		48.4		13.7		11.1		47.1		63.7		12.7		14.9
Total Long-Term Regulatory Liabilities	$	101.9	$	394.5	$	43.8	$	20.9	$	100.1	$	391.8	$	44.8	$	17.2

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PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize utility property, plant and equipment by asset category:

Eversource	As of June 30, 2017			As of December 31, 2016
(Millions of Dollars)
Distribution - Electric	$	14,012.6		$	13,716.9
Distribution - Natural Gas	3,094.3			3,010.4
Transmission - Electric	8,817.6			8,517.4
Generation	1,215.4			1,224.2
Electric and Natural Gas Utility	27,139.9			26,468.9
Other (1)	594.0			591.6
Property, Plant and Equipment, Gross	27,733.9			27,060.5
Less:  Accumulated Depreciation
Electric and Natural Gas Utility	(6,706.6		)	(6,480.4		)
Other	(262.8		)	(242.0		)
Total Accumulated Depreciation	(6,969.4		)	(6,722.4		)
Property, Plant and Equipment, Net	20,764.5			20,338.1
Construction Work in Progress (2)	1,307.0			1,012.4
Total Property, Plant and Equipment, Net	$	22,071.5		$	21,350.5

⁽¹⁾ These assets are primarily comprised of building improvements, computer software, hardware and equipment at Eversource Service.

⁽²⁾ As of June 30, 2017, the total CWIP related to NPT was approximately $190 million.

	As of June 30, 2017												As of December 31, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Distribution	$	5,717.1		$	5,453.3		$	2,018.6		$	863.6		$	5,562.9		$	5,402.3		$	1,949.8		$	841.9
Transmission	4,016.4			2,530.3			1,103.1			1,119.4			3,912.9			2,435.8			1,059.3			1,061.1
Generation	—			—			1,179.4			36.0			—			—			1,188.2			36.0
Property, Plant and Equipment, Gross	9,733.5			7,983.6			4,301.1			2,019.0			9,475.8			7,838.1			4,197.3			1,939.0
Less:  Accumulated Depreciation	(2,156.7		)	(2,104.2		)	(1,290.1		)	(352.0		)	(2,082.4		)	(2,025.4		)	(1,254.7		)	(338.8		)
Property, Plant and Equipment, Net	7,576.8			5,879.4			3,011.0			1,667.0			7,393.4			5,812.7			2,942.6			1,600.2
Construction Work in Progress	363.6			309.1			107.5			52.8			239.0			239.1			96.7			78.1
Total Property, Plant and Equipment, Net	$	7,940.4		$	6,188.5		$	3,118.5		$	1,719.8		$	7,632.4		$	6,051.8		$	3,039.3		$	1,678.3

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DERIVATIVE INSTRUMENTS

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

The Regulated 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.  The 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 or Operating Revenues on the statements of income, as applicable, as electricity or natural gas is delivered.

Derivative contracts that are not designated as normal are recorded at fair value as current or long-term Derivative Assets or Derivative Liabilities on the balance sheets.  For the Regulated 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 June 30, 2017									As of December 31, 2016
(Millions of Dollars)	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:
Eversource	$	—		$	—		$	—		$	6.0		$	—		$	6.0
Level 3:
Eversource, CL&P	11.2			(7.7		)	3.5			13.9			(9.4		)	4.5
Long-Term Derivative Assets:
Level 2:
Eversource	$	—		$	—		$	—		$	0.3		$	(0.1	)	$	0.2
Level 3:
Eversource, CL&P	76.0			(8.0		)	68.0			77.3			(11.7		)	65.6
Current Derivative Liabilities:
Level 2:
Eversource	$	(1.1	)	$	0.1		$	(1.0	)	$	—		$	—		$	—
Level 3:
Eversource	(66.5		)	—			(66.5		)	(79.7		)	—			(79.7		)
CL&P	(64.3		)	—			(64.3		)	(77.8		)	—			(77.8		)
NSTAR Electric	(2.2		)	—			(2.2		)	(1.9		)	—			(1.9		)
Long-Term Derivative Liabilities:
Level 3:
Eversource	$	(402.1	)	$	—		$	(402.1	)	$	(413.7	)	$	—		$	(413.7	)
CL&P	(402.0		)	—			(402.0		)	(412.8		)	—			(412.8		)
NSTAR Electric	(0.1		)	—			(0.1		)	(0.9		)	—			(0.9		)

⁽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.

For further information on the fair value of derivative contracts, see Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," to the financial statements.

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 capacity of these contracts is 787 MW.  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.  In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.   

NSTAR Electric has a renewable energy contract to purchase 0.1 million MWh of energy per year through 2018 and a capacity-related contract to purchase up to 35 MW per year through 2019.

As of June 30, 2017 and December 31, 2016, Eversource had New York Mercantile Exchange ("NYMEX") financial contracts for natural gas futures in order to reduce variability associated with the purchase price of approximately 6.3 million and 9.2 million MMBtu of natural gas, respectively.

For the three months ended June 30, 2017 and 2016, there were losses of $4.4 million and $42.9 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts. For the six months ended June 30, 2017 and 2016, these losses were $30.9 million and $74.4 million, respectively.

Fair Value Measurements of Derivative Instruments

Derivative contracts classified as Level 2 in the fair value hierarchy relate to the financial contracts for natural gas futures.  Prices are obtained from broker quotes and are based on actual market activity.  The contracts are valued using NYMEX natural gas prices.  Valuations of these contracts also incorporate discount rates using the yield curve approach.  

The fair value of derivative contracts classified as Level 3 utilizes significant unobservable inputs.  The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions relating to exit price.  Significant observable inputs for valuations of these contracts include energy and energy-related product prices in future years for which quoted prices in an active market exist.  Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy and energy-related products, and accounting requirements.  The future power and capacity prices for periods that are not quoted in an active market or established at auction are based on available market data and are escalated based on estimates of inflation in order to address the full term of the contract.  

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled 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.  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.  

The following is a summary of Eversource's, including CL&P's and NSTAR Electric's, Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts:

	As of June 30, 2017						As of December 31, 2016
	Range					Period Covered	Range					Period Covered
Capacity Prices:
Eversource, CL&P	$	5.00	—	8.70	per kW-Month	2021 - 2026	$	5.50	—	8.70	per kW-Month	2020 - 2026
Forward Reserve:
Eversource, CL&P	$	1.40	—	2.00	per kW-Month	2017 - 2024	$	1.40	—	2.00	per kW-Month	2017 - 2024
REC Prices:
Eversource, NSTAR Electric	$	26.00	—	27.50	per REC	2017 - 2018	$	24.00	—	29.00	per REC	2017 - 2018

Exit price premiums of 2 percent through 19 percent are also applied on these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts.

Significant increases or decreases in future energy or capacity prices in isolation would decrease or increase, respectively, the fair value of the derivative liability.  Any increases in risk premiums would increase the fair value of the derivative liability.  Changes in these fair values are recorded as a regulatory asset or liability and do not impact net income.  

Valuations using significant unobservable inputs:  The following table presents changes in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis.  The derivative assets and liabilities are presented on a net basis.

	For the Three Months Ended June 30,
	2017									2016
(Millions of Dollars)	Eversource			CL&P			NSTAR   Electric			Eversource			CL&P			NSTAR   Electric
Derivatives, Net:
Fair Value as of Beginning of Period	$	(416.0	)	$	(413.5	)	$	(2.5	)	$	(387.7	)	$	(385.1	)	$	(2.6	)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets and Liabilities	(3.0		)	(0.6		)	(2.4		)	(46.6		)	(46.8		)	0.2
Settlements	21.9			19.3			2.6			21.7			20.6			1.1
Fair Value as of End of Period	$	(397.1	)	$	(394.8	)	$	(2.3	)	$	(412.6	)	$	(411.3	)	$	(1.3	)
	For the Six Months Ended June 30,
	2017									2016
(Millions of Dollars)	Eversource			CL&P			NSTAR   Electric			Eversource			CL&P			NSTAR   Electric
Derivatives, Net:
Fair Value as of Beginning of Period	$	(423.3	)	$	(420.5	)	$	(2.8	)	$	(380.9	)	$	(380.8	)	$	(0.1	)
Net Realized/Unrealized Losses Included in Regulatory Assets and Liabilities	(18.4		)	(15.2		)	(3.2		)	(76.6		)	(72.2		)	(4.4		)
Settlements	44.6			40.9			3.7			44.9			41.7			3.2
Fair Value as of End of Period	$	(397.1	)	$	(394.8	)	$	(2.3	)	$	(412.6	)	$	(411.3	)	$	(1.3	)

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MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

MARKETABLE SECURITIES

Eversource maintains trusts that hold marketable securities to fund certain non-qualified executive benefits. These trusts are not subject to regulatory oversight by state or federal agencies.  CYAPC and YAEC maintain legally restricted trusts, each of which holds marketable securities, to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Trading Securities:  Eversource has elected to record certain equity securities as trading securities, with the changes in fair values recorded in Other Income, Net on the statements of income.  As of December 31, 2016, these securities were classified as Level 1 in the fair value hierarchy and totaled $9.6 million.  These securities were sold during the first quarter of 2017 and were no longer held as of June 30, 2017. For the three and six months ended June 30, 2016, net gains on these securities of $0.2 million and $0.5 million, respectively, were recorded in Other Income, Net on the statements of income. Dividend income is recorded in Other Income, Net when dividends are declared.  

Available-for-Sale Securities:  The following is a summary of available-for-sale securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.

	As of June 30, 2017									As of December 31, 2016
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	$	290.3	$	4.7	$	(0.5	)	$	294.5	$	296.2	$	1.1	$	(2.1	)	$	295.2
Equity Securities	202.1		83.2		—			285.3		203.3		62.3		(1.2		)	264.4

Eversource's debt and equity securities include CYAPC's and YAEC's marketable securities held in nuclear decommissioning trusts in the amounts of $485.9 million and $466.7 million as of June 30, 2017 and December 31, 2016, respectively.  Unrealized gains and losses for these nuclear decommissioning trusts are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.  

Unrealized Losses and Other-than-Temporary Impairment:  There have been no significant unrealized losses, other-than-temporary impairments or credit losses for the three and six months ended June 30, 2017 and 2016. Factors considered in determining whether a credit loss exists include the duration and severity of the impairment, adverse conditions specifically affecting the issuer, and the payment history, ratings and rating changes of the security.  For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated.

Realized Gains and Losses:  Realized gains and losses on available-for-sale securities are recorded in Other Income, Net for Eversource's non-qualified benefit trust and are offset in Other Long-Term Liabilities for CYAPC and YAEC.  Eversource utilizes the specific identification basis method for the Eversource non-qualified benefit trust, and the average cost basis method for the CYAPC and YAEC nuclear decommissioning trusts to compute the realized gains and losses on the sale of available-for-sale securities.

Contractual Maturities:  As of June 30, 2017, the contractual maturities of available-for-sale debt securities were as follows:  

Eversource (Millions of Dollars)	Amortized Cost		Fair Value
Less than one year (1)	$	53.0	$	52.9
One to five years	52.6		53.4
Six to ten years	54.7		56.3
Greater than ten years	130.0		131.9
Total Debt Securities	$	290.3	$	294.5

⁽¹⁾  Amounts in the Less than one year category include securities in the CYAPC and YAEC nuclear decommissioning trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.

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 June 30, 2017		As of December 31, 2016
Level 1:
Mutual Funds and Equities	$	285.3	$	274.0
Money Market Funds	29.7		54.8
Total Level 1	$	315.0	$	328.8
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	53.9	$	63.0
Corporate Debt Securities	67.8		41.1
Asset-Backed Debt Securities	18.6		18.5
Municipal Bonds	113.1		107.5
Other Fixed Income Securities	11.4		10.3
Total Level 2	$	264.8	$	240.4
Total Marketable Securities	$	579.8	$	569.2

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 instrument 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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SHORT-TERM AND LONG-TERM DEBT

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT

Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.  As of June 30, 2017 and December 31, 2016, Eversource parent had $937.5 million and approximately $1.0 billion, respectively, in short-term borrowings outstanding under the Eversource parent commercial paper program, leaving $512.5 million and $428.0 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively. The weighted-average interest rate on these borrowings as of June 30, 2017 and December 31, 2016 was 1.34 percent and 0.88 percent, respectively. As of June 30, 2017, there were intercompany loans from Eversource parent of $101.1 million to CL&P, $194.1 million to PSNH, and $68.7 million to WMECO.  As of December 31, 2016, there were intercompany loans from Eversource parent of $80.1 million to CL&P, $160.9 million to PSNH and $51.0 million to WMECO.  Eversource parent, CL&P, PSNH, WMECO, NSTAR Gas and Yankee Gas are parties to a five-year $1.45 billion revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

NSTAR Electric has a $450 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. As of June 30, 2017, NSTAR Electric had no short-term borrowings outstanding and as of December 31, 2016, NSTAR Electric had $126.5 million in short-term borrowings outstanding under its commercial paper program, leaving $450.0 million and $323.5 million of available borrowing capacity as of June 30, 2017 and December 31, 2016, respectively.  The weighted-average interest rate on these borrowings as of December 31, 2016 was 0.71 percent.  NSTAR Electric is a party to a five-year $450 million revolving credit facility. The revolving credit facility's termination date is September 4, 2021.  The revolving credit facility serves to backstop NSTAR Electric's $450 million commercial paper program.  There were no borrowings outstanding on the revolving credit facility as of June 30, 2017 or December 31, 2016.

Amounts outstanding under the commercial paper programs are included in Notes Payable for Eversource and NSTAR Electric and are classified in current liabilities on the balance sheets as all borrowings are outstanding for no more than 364 days at one time.  Intercompany loans from Eversource parent to CL&P, PSNH and WMECO are included in Notes Payable to Eversource Parent and are classified in current liabilities on their respective balance sheets.  Intercompany loans from Eversource parent to CL&P, PSNH and WMECO are eliminated in consolidation on Eversource's balance sheets.

Long-Term Debt Issuances:  In March 2017, Eversource parent issued $300 million of 2.75 percent Series K Senior Notes due to mature in 2022. The proceeds, net of issuance costs, were used to repay short-term borrowings under the Eversource parent commercial paper program.

In March 2017, CL&P issued $300 million of 3.20 percent 2017 Series A First and Refunding Mortgage Bonds due to mature in 2027. The proceeds, net of issuance costs, were used to repay short-term borrowings.

In May 2017, NSTAR Electric issued $350 million of 3.20 percent Debentures due to mature in 2027. The proceeds, net of issuance costs, were used to repay short-term borrowings and fund capital expenditures and working capital.

Long-Term Debt Repayments:  In March 2017, CL&P repaid at maturity the $150 million5.375 percent 2007 Series A First and Refunding Mortgage Bonds, using short term borrowings.

Long-Term Debt Issuance Authorizations: On January 4, 2017, PURA approved CL&P's request for authorization to issue up to $1.325 billion in long-term debt through December 31, 2020. On March 30, 2017, the DPU approved NSTAR Electric's request for authorization to issue up to $700 million in long-term debt through December 31, 2018.

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PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

6 Months Ended

Jun. 30, 2017

Postemployment Benefits [Abstract]

PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

Eversource Service sponsors a defined benefit retirement plan ("Pension Plan") that covers eligible participants.  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.  Eversource Service also sponsors a defined benefit postretirement plan that provides 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 participants that meet certain age and service eligibility requirements ("PBOP Plan").

In August 2016, the Company amended its PBOP Plan, which standardized separate benefit structures that existed within the plan and made other benefit changes. The remeasurement resulted in a prior service credit of $5.3 million and $10.7 million for the three and six months ended June 30, 2017, which was reflected as a reduction to net periodic benefit expense for PBOP benefits. The majority of this amount will be deferred for future refund to customers.

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 portions of pension, SERP and PBOP amounts, are included in Operations and Maintenance expense on the statements of income.  Capitalized 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
Eversource	For the Three Months Ended						For the Six Months Ended
(Millions of Dollars)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Service Cost	$	17.4		$	18.7		$	36.4		$	37.9
Interest Cost	47.2			46.4			93.5			92.8
Expected Return on Pension Plan Assets	(83.5		)	(79.5		)	(167.0		)	(159.1		)
Actuarial Loss	33.9			31.3			67.5			63.0
Prior Service Cost	1.1			0.9			2.0			1.8
Total Net Periodic Benefit Expense	$	16.1		$	17.8		$	32.4		$	36.4
Capitalized Pension Expense	$	5.5		$	5.4		$	10.9		$	11.4
	PBOP
Eversource	For the Three Months Ended						For the Six Months Ended
(Millions of Dollars)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Service Cost	$	2.4		$	3.1		$	4.7		$	6.3
Interest Cost	6.3			9.4			13.5			19.0
Expected Return on Plan Assets	(16.0		)	(15.7		)	(31.9		)	(31.5		)
Actuarial Loss	2.5			0.9			4.6			2.1
Prior Service Credit	(5.3		)	—			(10.7		)	(0.1		)
Total Net Periodic Benefit Income	$	(10.1	)	$	(2.3	)	$	(19.8	)	$	(4.2	)
Capitalized PBOP Income	$	(4.9	)	$	(1.0	)	$	(9.5	)	$	(1.9	)

	Pension and SERP
	For the Three Months Ended June 30, 2017												For the Three Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	4.6		$	3.1		$	2.4		$	0.7		$	4.6		$	3.3		$	2.5		$	0.8
Interest Cost	10.5			8.6			5.3			2.1			10.2			8.5			5.1			2.1
Expected Return on Pension Plan Assets	(17.8		)	(17.5		)	(10.0		)	(4.4		)	(18.0		)	(16.9		)	(9.6		)	(4.4		)
Actuarial Loss	6.8			8.9			3.0			1.5			6.3			8.7			2.6			1.3
Prior Service Cost	0.4			0.1			0.1			0.1			0.4			—			0.1			0.1
Total Net Periodic Benefit Expense/(Income)	$	4.5		$	3.2		$	0.8		$	—		$	3.5		$	3.6		$	0.7		$	(0.1	)
Intercompany Allocations	$	2.4		$	1.8		$	0.8		$	0.5		$	3.5		$	2.2		$	1.0		$	0.6
Capitalized Pension Expense	$	2.4		$	1.9		$	0.4		$	0.1		$	2.2		$	2.0		$	0.4		$	0.1
	Pension and SERP
	For the Six Months Ended June 30, 2017												For the Six Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	9.3		$	6.3		$	4.9		$	1.5		$	9.6		$	6.7		$	5.0		$	1.6
Interest Cost	20.9			17.0			10.5			4.2			21.0			16.8			10.3			4.2
Expected Return on Pension Plan Assets	(36.0		)	(35.1		)	(19.9		)	(8.9		)	(36.2		)	(33.8		)	(19.3		)	(8.8		)
Actuarial Loss	13.9			17.5			5.8			3.0			13.0			17.0			4.9			2.8
Prior Service Cost	0.7			0.2			0.2			0.2			0.8			—			0.2			0.2
Total Net Periodic Benefit Expense	$	8.8		$	5.9		$	1.5		$	—		$	8.2		$	6.7		$	1.1		$	—
Intercompany Allocations	$	5.0		$	3.7		$	1.7		$	0.9		$	6.8		$	4.5		$	2.0		$	1.2
Capitalized Pension Expense	$	4.9		$	3.5		$	0.7		$	0.2		$	4.9		$	3.7		$	0.7		$	0.2

	PBOP
	For the Three Months Ended June 30, 2017												For the Three Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.5		$	0.3		$	0.3		$	0.1		$	0.4		$	1.0		$	0.3		$	0.1
Interest Cost	1.2			1.7			0.7			0.3			1.3			3.8			0.7			0.3
Expected Return on Plan Assets	(2.4		)	(6.6		)	(1.3		)	(0.6		)	(2.5		)	(6.4		)	(1.4		)	(0.6		)
Actuarial Loss	0.3			0.8			0.2			—			0.3			0.3			0.1			—
Prior Service Cost/(Credit)	0.3			(4.3		)	0.1			—			—			—			—			—
Total Net Periodic Benefit Income	$	(0.1	)	$	(8.1	)	$	—		$	(0.2	)	$	(0.5	)	$	(1.3	)	$	(0.3	)	$	(0.2	)
Intercompany Allocations	$	(0.1	)	$	(0.2	)	$	(0.1	)	$	—		$	0.2		$	0.1		$	—		$	—
Capitalized PBOP Income	$	(0.1	)	$	(4.1	)	$	—		$	(0.1	)	$	(0.2	)	$	(0.6	)	$	(0.1	)	$	(0.1	)
	PBOP
	For the Six Months Ended June 30, 2017												For the Six Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.9		$	0.7		$	0.6		$	0.2		$	0.9		$	1.8		$	0.6		$	0.2
Interest Cost	2.7			3.8			1.5			0.5			2.7			7.8			1.5			0.5
Expected Return on Plan Assets	(4.8		)	(13.2		)	(2.7		)	(1.1		)	(5.1		)	(12.7		)	(2.8		)	(1.1		)
Actuarial Loss	0.5			1.7			0.3			—			0.5			0.5			0.2			—
Prior Service Cost/(Credit)	0.5			(8.6		)	0.3			0.1			—			—			—			—
Total Net Periodic Benefit Income	$	(0.2	)	$	(15.6	)	$	—		$	(0.3	)	$	(1.0	)	$	(2.6	)	$	(0.5	)	$	(0.4	)
Intercompany Allocations	$	(0.4	)	$	(0.5	)	$	(0.2	)	$	(0.1	)	$	0.3		$	0.1		$	—		$	0.1
Capitalized PBOP Income	$	(0.2	)	$	(7.9	)	$	—		$	(0.2	)	$	(0.5	)	$	(1.1	)	$	(0.1	)	$	(0.2	)

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

A.    Environmental Matters

Eversource, CL&P, NSTAR Electric, PSNH and WMECO 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, PSNH and WMECO 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 June 30, 2017			As of December 31, 2016
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	58	$	57.7	61	$	65.8
CL&P	14	5.1		14	4.9
NSTAR Electric	11	2.2		13	3.2
PSNH	11	5.7		11	5.3
WMECO	4	0.7		4	0.6

Included in the Eversource number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured 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.  The reserve balances related to these former MGP sites were $51.7 million and $59.0 million as of June 30, 2017 and December 31, 2016, respectively, and related primarily to the natural gas business segment. The reduction in the reserve balance at the MGP sites was primarily due to a change in cost estimates at one site where actual contamination was less than originally estimated.

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, PSNH's, and WMECO'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 related environmental matters.  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, PSNH and WMECO, in the form of guarantees.   

Eversource parent issued a guaranty on behalf of its subsidiary, NPT, under which, beginning at the time the Northern Pass Transmission line goes into commercial operation, Eversource parent will guarantee the financial obligations of NPT under the TSA with HQ in an amount not to exceed $25 million.  Eversource parent's obligations under the guaranty expire upon the full, final and indefeasible payment of the guaranteed obligations. Eversource parent has also entered into a guaranty on behalf of NPT under which Eversource parent will guarantee NPT's obligations under a facility with a financial institution pursuant to which NPT may request letters of credit in an aggregate amount of up to approximately $14 million.

Eversource parent has also guaranteed certain indemnification and other obligations as a result of the sales of former unregulated subsidiaries and the termination of an unregulated business, with maximum exposures either not specified or not material.  

Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications.  

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries to external parties, as of June 30, 2017:  

Company	Description	Maximum  Exposure (in millions)		Expiration Dates
On behalf of subsidiaries:
Eversource Gas Transmission LLC	Access Northeast Project Capital Contributions    Guaranty (1)	$	185.1	2021
Various	Surety Bonds (2)	40.1		2017 - 2018
Eversource Service and Rocky River Realty Company	Lease Payments for Vehicles and Real Estate	8.5		2019 - 2024

⁽¹⁾  Eversource parent issued a declining balance guaranty on behalf of its subsidiary, Eversource Gas Transmission LLC, to guarantee the payment of the subsidiary's capital contributions for its investment in the Access Northeast project. The guaranty decreases as capital contributions are made. The guaranty will expire upon the earlier of the full performance of the guaranteed obligations or December 31, 2021.

⁽²⁾  Surety bond 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.  

C.    FERC ROE Complaints

Four separate complaints have been 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, 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 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.

In response to appeals of the FERC decision in the first complaint filed by the NETOs and the Complainants, the U.S. Court of Appeals for the D.C. Circuit (the "Court") issued a decision on April 14, 2017 vacating and remanding the FERC's decision. The Court found that the FERC failed to make an explicit finding that the 11.14 percent base ROE was unjust and unreasonable, as required under Section 206 of the Federal Power Act, before it set a new base ROE. The Court also found that the FERC did not provide a rational connection between the record evidence and its decision to select the midpoint of the upper half of the zone of reasonableness for the new base ROE.

On May 26, 2017, the Chief Administrative Law Judge ("ALJ") issued an order that the fourth complaint will continue to trial in December 2017 with an ALJ initial decision expected in March of 2018.

A summary of the four separate complaints and the base ROEs pertinent to those complaints are as follows:

Complaint	15-Month Time Period of Complaint (Beginning as of Complaint Filing Date)	Original Base ROE Authorized by FERC at Time of Complaint Filing Date (1)	Base ROE Subsequently Authorized by FERC for First Complaint Period and also Effective from October 16, 2014 through April 14, 2017 (1)	Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		FERC ALJ Recommendation of Base ROE on Second and Third Complaints (Issued March 22, 2016)
First	10/1/2011 - 12/31/2012	11.14%	10.57%	$—	(2)	N/A
Second	12/27/2012 - 3/26/2014	11.14%	N/A	39.1	(3)	9.59%
Third	7/31/2014 - 10/30/2015	11.14%	10.57%	—		10.90%
Fourth	4/29/2016 - 7/28/2017	10.57%	10.57%	—		N/A

⁽¹⁾ The billed ROE (base plus incentives) between October 1, 2011 and October 15, 2014 was within a range of 11.14 percent to 13.1 percent. On October 16, 2014, the FERC set the incentive cap at 11.74 percent for the first complaint period and also effective from October 16, 2014 through April 14, 2017, at which time the Court vacated this FERC order.

⁽²⁾ CL&P, NSTAR Electric, PSNH and WMECO have refunded all amounts associated with the first complaint period, totaling $38.9 million (pre-tax and excluding interest) at Eversource (including $22.4 million at CL&P, $8.4 million at NSTAR Electric, $2.8 million at PSNH, and $5.3 million at WMECO), reflecting both the base ROE and incentive cap prescribed by the FERC order.

⁽³⁾ The reserve represents the difference between the ROEs billed during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve was $21.4 million for CL&P, $8.5 million for NSTAR Electric, $3.1 million for PSNH, and $6.1 million for WMECO as of June 30, 2017.

On June 5, 2017, the NETOs, including Eversource, submitted a filing at the FERC to reinstate the base ROE of 11.14 percent with an associated ROE incentive cap of 13.5 percent effective June 8, 2017, as these were the last ROEs lawfully in effect for transmission billing purposes prior to the FERC order vacated by the Court on April 14, 2017. The NETOs have voluntarily delayed the date on which they will begin billing the reinstated ROEs until 60 days after the FERC has a quorum again. If the FERC takes no action within that 60-day period, the NETOs will begin billing the reinstated ROEs, subject to refund. The Company will continue to recognize transmission revenues as billed utilizing a base ROE of 10.57 percent with an incentive cap of 11.74 percent, until further FERC action or upon expiration of the 60-day period with no FERC action. The Company will change the amounts it is using to recognize transmission revenues only upon a change in the rates billed to its customers.

At this time, the Company cannot reasonably estimate a range of gain or loss for the complaint proceedings. The April 14, 2017 Court decision did not provide a reasonable basis for a change to the reserve balance of $39.1 million (pre-tax and excluding interest) for the second complaint period, and the Company has not changed its reserves or recognized ROEs for any of the complaint periods.

Management cannot at this time predict the ultimate effect of the Court decision on any of the complaint periods or the estimated impacts on the financial position, results of operations or cash flows of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

The average impact of a 10 basis point change to the base ROE for each of the 15-month complaint periods would affect Eversource's after-tax earnings by approximately $3 million.

D.    Eversource and NSTAR Electric Boston Harbor Civil Action

On July 15, 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts under provisions of the Rivers and Harbors Act of 1899 and the Clean Water Act against NSTAR Electric, Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric ("HEEC"), and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants").  The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor.  The action sought an order to force HEEC to comply with cable depth requirements in the United States Army Corps of Engineers' permit or alternatively to remove the electric distribution cable and cease unauthorized work in U.S. waterways.  The action also sought civil penalties and other costs.  

After substantial negotiations, the parties reached a settlement whereby HEEC will install a new 115kV distribution cable across Boston Harbor to Deer Island, utilizing a different route, and will remove portions of the existing cable. Upon the installation and completion of the new cable and the removal of the portions of the existing cable, all issues surrounding the current permit from the United States Army Corps of Engineers are expected to be resolved, and such litigation is expected to be dismissed with prejudice.

In the second quarter of 2017, as a result of the settlement, NSTAR Electric expensed $4.9 million (pre-tax) of previously incurred capitalized costs associated with engineering work performed on the existing cable that will no longer be used. In addition, NSTAR Electric agreed to provide a rate base credit of $17.5 millionthat will be credited to the rates charged to the Massachusetts Water Resources Authority for the new cable. This negotiated credit will result in the initial $17.5 million of construction costs on the new cable to be expensed as incurred. Construction of the new cable will be completed in 2019.

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PSNH GENERATION ASSET SALE

6 Months Ended

Jun. 30, 2017

Regulated Operations [Abstract]

PSNH GENERATION ASSET SALE

PSNH GENERATION ASSET SALE

On June 10, 2015, Eversource and PSNH entered into the 2015 Public Service Company of New Hampshire Restructuring and Rate Stabilization Agreement (the "Agreement") with the New Hampshire Office of Energy and Planning, certain members of the NHPUC staff, the Office of Consumer Advocate, two State Senators, and several other parties.  Under the terms of the Agreement, PSNH agreed to divest its generation assets, subject to NHPUC approval.  The Agreement provided for a resolution of issues pertaining to PSNH's generation assets in pending regulatory proceedings before the NHPUC.  The Agreement provided for the Clean Air Project prudence proceeding to be resolved and all remaining Clean Air Project costs to be included in rates effective January 1, 2016.  As part of the Agreement, PSNH agreed to forego recovery of $25 million of the equity return related to the Clean Air Project.  

On July 1, 2016, the NHPUC approved the Agreement in an order that, among other things, instructed PSNH to begin the process of divesting its generation assets.  The NHPUC selected an auction adviser to assist with the divestiture, and the final plan and auction process were approved by the NHPUC in November 2016.  An intervening appeal alleging that the auction process and schedule were unreasonable was rejected by the New Hampshire Supreme Court in February 2017. In late March 2017, the formal divestiture process began. The Company expects the transaction to be approved by the end of 2017.

The sales price of the generation assets could be less than the carrying value, but the Company believes that full recovery of PSNH's generation assets is probable through a combination of cash flows during the remaining operating period, sales proceeds upon divestiture, and recovery of stranded costs via bonds that will be secured by a non-bypassable charge or through recoveries in future rates billed to PSNH's customers.

As of June 30, 2017, PSNH's generation assets were as follows:

(Millions of Dollars)
Gross Plant	$	1,183.3
Accumulated Depreciation	(564.1		)
Net Plant	619.2
Fuel	94.6
Materials and Supplies	36.3
Emission Allowances	19.5
Total Generation Assets	$	769.6

As of June 30, 2017, current and long-term liabilities associated with PSNH's generation assets included Accounts Payable of $30.2 million, Other Current Liabilities of $17.6 million, AROs of $20.6 million, and Accrued Pension, SERP and PBOP of $23.9 million.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

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 and Long-Term Debt:  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 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 tables below are classified as Level 2 within the fair value hierarchy.  Carrying amounts and estimated fair values are as follows:

	As of June 30, 2017				As of December 31, 2016
Eversource (Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	158.4	$	155.6	$	158.3
Long-Term Debt	10,382.9		10,935.8		9,603.2		9,980.5

	CL&P				NSTAR Electric				PSNH				WMECO
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of June 30, 2017:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	115.0	$	43.0	$	43.4	$	—	$	—	$	—	$	—
Long-Term Debt	2,913.5		3,247.3		2,425.9		2,605.9		1,072.3		1,122.3		566.3		602.8
As of December 31, 2016:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	114.7	$	43.0	$	43.6	$	—	$	—	$	—	$	—
Long-Term Debt	2,766.0		3,049.6		2,078.1		2,201.6		1,072.0		1,109.7		566.5		589.0

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.

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ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, is as follows:

	For the Six Months Ended June 30, 2017											For the Six Months Ended June 30, 2016
	Qualified			Unrealized								Qualified			Unrealized
	Cash Flow			Gains								Cash Flow			Gains/(Losses)
Eversource (Millions of Dollars)	Hedging			on Marketable		Defined						Hedging			on Marketable			Defined
	Instruments			Securities		Benefit Plans			Total			Instruments			Securities			Benefit Plans			Total
Balance as of Beginning of Period	$	(8.2	)	$	0.4	$	(57.5	)	$	(65.3	)	$	(10.3	)	$	(1.9	)	$	(54.6	)	$	(66.8	)
OCI Before Reclassifications	—			2.6		(3.5		)	(0.9		)	—			1.3			(2.6		)	(1.3		)
Amounts Reclassified from AOCL	1.1			—		2.2			3.3			1.1			—			1.6			2.7
Net OCI	1.1			2.6		(1.3		)	2.4			1.1			1.3			(1.0		)	1.4
Balance as of End of Period	$	(7.1	)	$	3.0	$	(58.8	)	$	(62.9	)	$	(9.2	)	$	(0.6	)	$	(55.6	)	$	(65.4	)

Eversource's qualified cash flow hedging instruments represent interest rate swap agreements on debt issuances that were settled in prior years. The settlement amount was recorded in AOCL and is being amortized into Net Income over the term of the underlying debt instrument.  CL&P, PSNH and WMECO continue to amortize interest rate swaps settled in prior years from AOCL into Interest Expense over the remaining life of the associated long-term debt. Such interest rate swaps are not material to their respective financial statements.

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses and prior service costs that arose during the year and were recognized in AOCL. The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCL into Operations and Maintenance expense over the average future employee service period, and are reflected in amounts reclassified from AOCL.  For further information, see Note 7, "Pension Benefits and Postretirement Benefits Other Than Pensions."

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COMMON SHARES

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

COMMON SHARES

COMMON SHARES

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric, PSNH and WMECO that were authorized and issued, as well as the respective per share par values:  

	Shares
			Authorized as of June 30, 2017 and	Issued as of
	Par Value		December 31, 2016	June 30, 2017	December 31, 2016
Eversource	$	5	380,000,000	333,878,402	333,878,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	100	100
PSNH	$	1	100,000,000	301	301
WMECO	$	25	1,072,471	434,653	434,653

As of both June 30, 2017 and December 31, 2016, there were 16,992,594 Eversource common shares held as treasury shares.  As of both June 30, 2017 and December 31, 2016, Eversource common shares outstanding were 316,885,808.

COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for both of the three months ended June 30, 2017 and 2016, and $3.8 million for both of the six months ended June 30, 2017 and 2016. 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 June 30, 2017 and December 31, 2016. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to the parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

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COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

COMMON SHARES

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric, PSNH and WMECO that were authorized and issued, as well as the respective per share par values:  

	Shares
			Authorized as of June 30, 2017 and	Issued as of
	Par Value		December 31, 2016	June 30, 2017	December 31, 2016
Eversource	$	5	380,000,000	333,878,402	333,878,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	100	100
PSNH	$	1	100,000,000	301	301
WMECO	$	25	1,072,471	434,653	434,653

As of both June 30, 2017 and December 31, 2016, there were 16,992,594 Eversource common shares held as treasury shares.  As of both June 30, 2017 and December 31, 2016, Eversource common shares outstanding were 316,885,808.

COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for both of the three months ended June 30, 2017 and 2016, and $3.8 million for both of the six months ended June 30, 2017 and 2016. 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 June 30, 2017 and December 31, 2016. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to the parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period.  Diluted EPS 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 common shares.  The dilutive effect of unvested RSU and performance share awards and unexercised stock options 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 six months ended June 30, 2017 and 2016, there were no antidilutive share awards excluded from the computation of diluted EPS.

The following table sets forth the components of basic and diluted EPS:

Eversource (Millions of Dollars, except share information)	For the Three Months Ended				For the Six Months Ended
	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Net Income Attributable to Common Shareholders	$	230.7	$	203.6	$	490.2	$	447.8
Weighted Average Common Shares Outstanding:
Basic	317,391,365		317,785,495		317,427,258		317,651,319
Dilutive Effect	555,829		691,204		608,606		827,557
Diluted	317,947,194		318,476,699		318,035,864		318,478,876
Basic and Diluted EPS	$	0.72	$	0.64	$	1.54	$	1.41

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Presentation:  Eversource is organized among the Electric Distribution, Electric Transmission and Natural Gas 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.  These reportable segments represent substantially all of Eversource's total consolidated revenues.  Revenues from the sale of electricity and natural gas primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer.  The Electric Distribution reportable segment includes the generation activities of PSNH and WMECO.  

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, and 4) the results of other unregulated subsidiaries, which are not part of its core business. In addition, Other in the tables below includes Eversource parent's equity ownership interests in certainnatural gas pipeline projects owned by Enbridge, Inc., the Bay State Wind project, a renewable energy investment fund, and two companies that transmit hydroelectricity imported from the Hydro-Quebec system in Canada. In the ordinary course of business, Yankee Gas and NSTAR Gas purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline projects described above. These affiliate transaction costs total approximately $62.5 million annually and are classified as Purchased Power, Fuel and Transmission on the Eversource statements of income.

Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred but not paid, cost of removal, AFUDC related to equity funds, and the capitalized portions of pension expense.   

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.  Each of Eversource's subsidiaries, including CL&P, NSTAR Electric, PSNH and WMECO, has one reportable segment.  Eversource's operating segments and reporting units are consistent with its reportable business segments.

Eversource's segment information is as follows:

	For the Three Months Ended June 30, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	1,275.9		$	186.0		$	324.6		$	217.0		$	(240.7	)	$	1,762.8
Depreciation and Amortization	(105.4		)	(17.9		)	(51.4		)	(7.9		)	0.5			(182.1		)
Other Operating Expenses	(925.3		)	(150.0		)	(94.9		)	(195.9		)	241.1			(1,125.0		)
Operating Income	245.2			18.1			178.3			13.2			0.9			455.7
Interest Expense	(49.4		)	(10.9		)	(28.9		)	(21.6		)	3.5			(107.3		)
Other Income, Net	2.5			0.1			6.8			257.6			(245.5		)	21.5
Net Income Attributable to Common Shareholders	$	121.9		$	4.5		$	96.4		$	249.0		$	(241.1	)	$	230.7
	For the Six Months Ended June 30, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	2,677.0		$	589.6		$	641.5		$	453.4		$	(493.6	)	$	3,867.9
Depreciation and Amortization	(235.2		)	(39.6		)	(102.0		)	(17.2		)	1.1			(392.9		)
Other Operating Expenses	(1,967.3		)	(439.6		)	(184.8		)	(412.5		)	493.9			(2,510.3		)
Operating Income	474.5			110.4			354.7			23.7			1.4			964.7
Interest Expense	(97.6		)	(21.5		)	(57.0		)	(41.3		)	6.6			(210.8		)
Other Income, Net	7.4			0.4			11.7			586.5			(570.9		)	35.1
Net Income Attributable to Common Shareholders	$	236.0		$	55.3		$	190.6		$	571.2		$	(562.9	)	$	490.2
Cash Flows Used for Investments in Plant	$	515.0		$	139.7		$	415.6		$	76.7		$	—		$	1,147.0

	For the Three Months Ended June 30, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	1,303.1		$	180.4		$	302.5		$	211.1		$	(229.9	)	$	1,767.2
Depreciation and Amortization	(98.4		)	(16.8		)	(45.6		)	(7.5		)	0.5			(167.8		)
Other Operating Expenses	(994.4		)	(141.1		)	(82.5		)	(188.1		)	230.1			(1,176.0		)
Operating Income	210.3			22.5			174.4			15.5			0.7			423.4
Interest Expense	(47.6		)	(10.4		)	(27.4		)	(16.6		)	1.5			(100.5		)
Other Income, Net	6.3			0.1			5.3			219.0			(222.6		)	8.1
Net Income Attributable to Common Shareholders	$	102.8		$	8.0		$	92.5		$	220.7		$	(220.4	)	$	203.6
	For the Six Months Ended June 30, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	2,739.2		$	523.0		$	585.8		$	425.3		$	(450.5	)	$	3,822.8
Depreciation and Amortization	(226.1		)	(32.7		)	(90.7		)	(14.4		)	1.1			(362.8		)
Other Operating Expenses	(2,083.3		)	(374.5		)	(155.5		)	(385.4		)	450.7			(2,548.0		)
Operating Income	429.8			115.8			339.6			25.5			1.3			912.0
Interest Expense	(95.6		)	(20.5		)	(55.3		)	(30.7		)	3.4			(198.7		)
Other Income/(Loss), Net	6.3			(0.2		)	7.9			524.4			(528.4		)	10.0
Net Income Attributable to Common Shareholders	$	211.3		$	58.9		$	178.2		$	523.1		$	(523.7	)	$	447.8
Cash Flows Used for Investments in Plant	$	362.0		$	105.0		$	349.1		$	53.1		$	—		$	869.2

The following table summarizes Eversource's segmented total assets:

Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Other		Eliminations			Total
As of June 30, 2017	$	18,663.7	$	3,337.0	$	9,003.4	$	14,657.1	$	(13,002.4	)	$	32,658.8
As of December 31, 2016	18,367.5		3,303.8		8,751.5		14,493.1		(12,862.7		)	32,053.2

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

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, PSNH, WMECO, Yankee Gas and NSTAR Gas.  Eversource provides energy delivery service to approximately 3.7 million electric and natural gas customers through these six regulated utilities in Connecticut, Massachusetts and New Hampshire.  

On June 2, 2017, Eversource announced that it had entered into an agreement to acquire Aquarion Water Company ("Aquarion") from Macquarie Infrastructure Partners for $1.675 billion, consisting of approximately $880 million in cash and $795 million of assumed Aquarion debt. The transaction requires approval from PURA, the DPU, the NHPUC, the Maine PUC, and the Federal Communications Commission, and is also subject to a review under the Hart-Scott-Rodino Act. On June 29, 2017, Eversource and Aquarion filed joint applications with regulatory agencies in Connecticut, Massachusetts, New Hampshire and Maine requesting approval of the transaction. The transaction is expected to close by December 31, 2017.

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 and WMECO 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 Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2016 Form 10-K, which was filed with the SEC.  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, PSNH's and WMECO's financial position as of June 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016, and the cash flows for the six months ended June 30, 2017 and 2016.  The results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and the cash flows for the six months ended June 30, 2017 and 2016 are not necessarily indicative of the results expected for a full year.  

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's, PSNH's and WMECO's combined ownership interest in each of these entities is greater than 50 percent.  Intercompany transactions between CL&P, NSTAR Electric, PSNH and WMECO and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource's utility subsidiaries' distribution (including generation assets) 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

Accounting Standards

Accounting Standards

Accounting Standards Issued but Not Yet Effective:  In May 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which amends existing revenue recognition guidance and is required to be applied retrospectively (either to each reporting period presented or cumulatively at the date of initial application).  The Company is evaluating the requirements and potential impacts of ASU 2014-09 and will implement the standard in the first quarter of 2018 cumulatively at the date of initial application. While the guidance continues to be interpreted on an industry specific level, implementation of the ASU is not currently expected to have a material effect on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities, which is required to be implemented in the first quarter of 2018.  The ASU will remove the available-for-sale designation for equity securities, whereby changes in fair value are recorded in accumulated other comprehensive income within shareholders' equity, and will require changes in fair value of all equity securities to be recorded in earnings beginning on January 1, 2018, with the unrealized gain or loss on available-for-sale equity securities as of that date reclassified to retained earnings as a cumulative effect of adoption.  The fair value of available-for-sale equity securities subject to this guidance as of June 30, 2017 was approximately $49 million.  The remaining available-for-sale equity securities included in marketable securities on the balance sheet are held in nuclear decommissioning trusts and are subject to regulatory accounting treatment and will not be impacted by this guidance. Implementation of the ASU for other financial instruments is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

In February 2016, the FASB issued ASU 2016-02, Leases, which changes existing lease accounting guidance and is required to be applied in the first quarter of 2019, with earlier application permitted.  The ASU is required to be implemented for leases beginning on the date of initial application. For prior periods presented, leases are required to be recognized and measured using a modified retrospective approach.  The Company is reviewing the requirements of ASU 2016-02, including balance sheet recognition of leases previously deemed operating leases, and expects to implement the ASU in the first quarter of 2019.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, required to be implemented in the first quarter of 2018. The ASU requires separate presentation of service cost from other components of net pension and PBOP costs, with the other components presented as non-operating income and not subject to capitalization. The Company is assessing the impacts of the ASU on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO; however, implementation of the ASU is not expected to have a material impact on the net income of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

Provision for Uncollectible Accounts

Provision for Uncollectible Accounts

Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, presents its receivables at estimated net realizable value by maintaining a provision for uncollectible accounts.  This provision is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category.  The estimate is based upon historical collection and write-off experience and management's assessment of collectability from customers.  Management continuously assesses the collectability of receivables and adjusts collectability estimates based on actual experience.  Receivable balances are written off against the provision for uncollectible accounts when the customer accounts are terminated and these balances are deemed to be uncollectible.

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 WMECO and NSTAR Gas also to recover in rates, amounts associated with certain uncollectible hardship accounts receivable.  Certain of NSTAR Electric's uncollectible hardship accounts receivable are expected to be recovered in future rates, similar to WMECO and NSTAR Gas. These uncollectible customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets.

Fair Value Measurements

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 the 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 and AROs, and the estimated fair value of preferred stock and long-term debt.

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, and Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.  The three 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.  

Other Income, Net

Other Income, Net

Items included within Other Income, Net on the statements of income primarily consist of investment income/(loss), interest income, AFUDC related to equity funds, and income/(loss) related to equity method investments.  Investment income/(loss) primarily relates to debt and equity securities held in trust.

Other Taxes

Other Taxes

Gross receipts taxes levied by the state of Connecticut are collected by CL&P and Yankee Gas from their respective customers.

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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The total provision for uncollectible accounts and for uncollectible hardship accounts, which is included in the total provision, is included in Receivables, Net on the balance sheets, and was as follows:

	Total Provision for Uncollectible Accounts				Uncollectible Hardship
(Millions of Dollars)	As of June 30, 2017		As of December 31, 2016		As of June 30, 2017		As of December 31, 2016
Eversource	$	199.0	$	200.6	$	124.5	$	119.9
CL&P	77.5		86.4		64.5		67.7
NSTAR Electric	54.5		54.8		30.7		26.2
PSNH	11.0		9.9		—		—
WMECO	16.4		15.5		10.6		9.9

State Of Connecticut Gross Earnings Taxes

These gross receipts taxes are shown 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 Six Months Ended
(Millions of Dollars)	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Eversource	$	35.7	$	37.5	$	77.9	$	79.8
CL&P	31.8		33.6		65.7		69.6

Schedule of Supplemental Cash Flow Information

Non-cash investing activities include plant additions included in Accounts Payable as follows:

(Millions of Dollars)	As of June 30, 2017		As of June 30, 2016
Eversource	$	172.0	$	186.3
CL&P	85.9		59.5
NSTAR Electric	29.5		38.5
PSNH	20.2		31.1
WMECO	10.6		14.6

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REGULATORY ACCOUNTING (Tables)

6 Months Ended

Jun. 30, 2017

Regulated Operations [Abstract]

Schedule of Regulatory Assets

The components of regulatory assets were as follows:

Eversource	As of June 30, 2017		As of December 31, 2016
(Millions of Dollars)
Benefit Costs	$	1,833.6	$	1,817.8
Derivative Liabilities	398.1		423.3
Income Taxes, Net	652.5		644.5
Storm Restoration Costs	352.9		385.3
Goodwill-related	454.2		464.4
Regulatory Tracker Mechanisms	584.3		576.6
Asset Retirement Obligations	103.0		99.3
Other Regulatory Assets	72.8		115.1
Total Regulatory Assets	4,451.4		4,526.3
Less:  Current Portion	870.4		887.6
Total Long-Term Regulatory Assets	$	3,581.0	$	3,638.7

	As of June 30, 2017								As of December 31, 2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO		CL&P		NSTAR Electric		PSNH		WMECO
Benefit Costs	$	423.5	$	445.6	$	189.7	$	86.4	$	429.3	$	438.6	$	184.2	$	86.7
Derivative Liabilities	394.8		2.3		—		—		420.5		2.8		—		—
Income Taxes, Net	440.7		91.2		22.4		31.2		437.0		89.7		24.2		30.8
Storm Restoration Costs	210.3		115.3		12.9		14.4		239.8		112.5		17.1		15.9
Goodwill-related	—		389.9		—		—		—		398.7		—		—
Regulatory Tracker Mechanisms	153.0		240.7		125.7		50.5		123.9		257.3		104.5		46.7
Asset Retirement Obligations	34.5		33.2		16.6		4.4		33.2		31.9		16.2		4.2
Other Regulatory Assets	32.7		16.1		14.7		5.3		43.4		15.6		16.5		7.1
Total Regulatory Assets	1,689.5		1,334.3		382.0		192.2		1,727.1		1,347.1		362.7		191.4
Less:  Current Portion	346.5		270.2		132.4		67.3		335.5		289.4		117.2		64.1
Total Long-Term Regulatory Assets	$	1,343.0	$	1,064.1	$	249.6	$	124.9	$	1,391.6	$	1,057.7	$	245.5	$	127.3

Schedule of Regulatory Liabilities

The components of regulatory liabilities were as follows:

Eversource	As of June 30, 2017		As of December 31, 2016
(Millions of Dollars)
Cost of Removal	$	474.4	$	459.7
Benefit Costs	129.5		136.2
Regulatory Tracker Mechanisms	176.3		145.3
AFUDC - Transmission	65.6		65.8
Other Regulatory Liabilities	36.8		42.1
Total Regulatory Liabilities	882.6		849.1
Less:  Current Portion	185.9		146.8
Total Long-Term Regulatory Liabilities	$	696.7	$	702.3

	As of June 30, 2017								As of December 31, 2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		WMECO		CL&P		NSTAR Electric		PSNH		WMECO
Cost of Removal	$	43.4	$	277.4	$	42.8	$	12.4	$	38.8	$	271.6	$	44.1	$	8.6
Benefit Costs	—		109.4		—		—		—		113.1		—		—
Regulatory Tracker Mechanisms	47.5		48.4		11.7		10.9		37.2		63.7		10.7		14.7
AFUDC - Transmission	49.5		7.4		—		8.7		50.2		6.9		—		8.7
Other Regulatory Liabilities	23.7		0.3		3.0		—		21.0		0.2		2.7		0.1
Total Regulatory Liabilities	164.1		442.9		57.5		32.0		147.2		455.5		57.5		32.1
Less:  Current Portion	62.2		48.4		13.7		11.1		47.1		63.7		12.7		14.9
Total Long-Term Regulatory Liabilities	$	101.9	$	394.5	$	43.8	$	20.9	$	100.1	$	391.8	$	44.8	$	17.2

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PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION (Tables)

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Public Utility Property, Plant, and Equipment

The following tables summarize utility property, plant and equipment by asset category:

Eversource	As of June 30, 2017			As of December 31, 2016
(Millions of Dollars)
Distribution - Electric	$	14,012.6		$	13,716.9
Distribution - Natural Gas	3,094.3			3,010.4
Transmission - Electric	8,817.6			8,517.4
Generation	1,215.4			1,224.2
Electric and Natural Gas Utility	27,139.9			26,468.9
Other (1)	594.0			591.6
Property, Plant and Equipment, Gross	27,733.9			27,060.5
Less:  Accumulated Depreciation
Electric and Natural Gas Utility	(6,706.6		)	(6,480.4		)
Other	(262.8		)	(242.0		)
Total Accumulated Depreciation	(6,969.4		)	(6,722.4		)
Property, Plant and Equipment, Net	20,764.5			20,338.1
Construction Work in Progress (2)	1,307.0			1,012.4
Total Property, Plant and Equipment, Net	$	22,071.5		$	21,350.5

⁽¹⁾ These assets are primarily comprised of building improvements, computer software, hardware and equipment at Eversource Service.

⁽²⁾ As of June 30, 2017, the total CWIP related to NPT was approximately $190 million.

	As of June 30, 2017												As of December 31, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Distribution	$	5,717.1		$	5,453.3		$	2,018.6		$	863.6		$	5,562.9		$	5,402.3		$	1,949.8		$	841.9
Transmission	4,016.4			2,530.3			1,103.1			1,119.4			3,912.9			2,435.8			1,059.3			1,061.1
Generation	—			—			1,179.4			36.0			—			—			1,188.2			36.0
Property, Plant and Equipment, Gross	9,733.5			7,983.6			4,301.1			2,019.0			9,475.8			7,838.1			4,197.3			1,939.0
Less:  Accumulated Depreciation	(2,156.7		)	(2,104.2		)	(1,290.1		)	(352.0		)	(2,082.4		)	(2,025.4		)	(1,254.7		)	(338.8		)
Property, Plant and Equipment, Net	7,576.8			5,879.4			3,011.0			1,667.0			7,393.4			5,812.7			2,942.6			1,600.2
Construction Work in Progress	363.6			309.1			107.5			52.8			239.0			239.1			96.7			78.1
Total Property, Plant and Equipment, Net	$	7,940.4		$	6,188.5		$	3,118.5		$	1,719.8		$	7,632.4		$	6,051.8		$	3,039.3		$	1,678.3

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DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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 June 30, 2017									As of December 31, 2016
(Millions of Dollars)	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:
Eversource	$	—		$	—		$	—		$	6.0		$	—		$	6.0
Level 3:
Eversource, CL&P	11.2			(7.7		)	3.5			13.9			(9.4		)	4.5
Long-Term Derivative Assets:
Level 2:
Eversource	$	—		$	—		$	—		$	0.3		$	(0.1	)	$	0.2
Level 3:
Eversource, CL&P	76.0			(8.0		)	68.0			77.3			(11.7		)	65.6
Current Derivative Liabilities:
Level 2:
Eversource	$	(1.1	)	$	0.1		$	(1.0	)	$	—		$	—		$	—
Level 3:
Eversource	(66.5		)	—			(66.5		)	(79.7		)	—			(79.7		)
CL&P	(64.3		)	—			(64.3		)	(77.8		)	—			(77.8		)
NSTAR Electric	(2.2		)	—			(2.2		)	(1.9		)	—			(1.9		)
Long-Term Derivative Liabilities:
Level 3:
Eversource	$	(402.1	)	$	—		$	(402.1	)	$	(413.7	)	$	—		$	(413.7	)
CL&P	(402.0		)	—			(402.0		)	(412.8		)	—			(412.8		)
NSTAR Electric	(0.1		)	—			(0.1		)	(0.9		)	—			(0.9		)

⁽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.

Fair Value Inputs, Liabilities, Quantitative Information

The following is a summary of Eversource's, including CL&P's and NSTAR Electric's, Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts:

	As of June 30, 2017						As of December 31, 2016
	Range					Period Covered	Range					Period Covered
Capacity Prices:
Eversource, CL&P	$	5.00	—	8.70	per kW-Month	2021 - 2026	$	5.50	—	8.70	per kW-Month	2020 - 2026
Forward Reserve:
Eversource, CL&P	$	1.40	—	2.00	per kW-Month	2017 - 2024	$	1.40	—	2.00	per kW-Month	2017 - 2024
REC Prices:
Eversource, NSTAR Electric	$	26.00	—	27.50	per REC	2017 - 2018	$	24.00	—	29.00	per REC	2017 - 2018

Rollforward Of Net Derivative Asset Liabilities Valued Using Unobservable Inputs

The following table presents changes in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis.  The derivative assets and liabilities are presented on a net basis.

	For the Three Months Ended June 30,
	2017									2016
(Millions of Dollars)	Eversource			CL&P			NSTAR   Electric			Eversource			CL&P			NSTAR   Electric
Derivatives, Net:
Fair Value as of Beginning of Period	$	(416.0	)	$	(413.5	)	$	(2.5	)	$	(387.7	)	$	(385.1	)	$	(2.6	)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets and Liabilities	(3.0		)	(0.6		)	(2.4		)	(46.6		)	(46.8		)	0.2
Settlements	21.9			19.3			2.6			21.7			20.6			1.1
Fair Value as of End of Period	$	(397.1	)	$	(394.8	)	$	(2.3	)	$	(412.6	)	$	(411.3	)	$	(1.3	)
	For the Six Months Ended June 30,
	2017									2016
(Millions of Dollars)	Eversource			CL&P			NSTAR   Electric			Eversource			CL&P			NSTAR   Electric
Derivatives, Net:
Fair Value as of Beginning of Period	$	(423.3	)	$	(420.5	)	$	(2.8	)	$	(380.9	)	$	(380.8	)	$	(0.1	)
Net Realized/Unrealized Losses Included in Regulatory Assets and Liabilities	(18.4		)	(15.2		)	(3.2		)	(76.6		)	(72.2		)	(4.4		)
Settlements	44.6			40.9			3.7			44.9			41.7			3.2
Fair Value as of End of Period	$	(397.1	)	$	(394.8	)	$	(2.3	)	$	(412.6	)	$	(411.3	)	$	(1.3	)

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MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following is a summary of available-for-sale securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.

	As of June 30, 2017									As of December 31, 2016
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	$	290.3	$	4.7	$	(0.5	)	$	294.5	$	296.2	$	1.1	$	(2.1	)	$	295.2
Equity Securities	202.1		83.2		—			285.3		203.3		62.3		(1.2		)	264.4

Investments Classified by Contractual Maturity Date

As of June 30, 2017, the contractual maturities of available-for-sale debt securities were as follows:  

Eversource (Millions of Dollars)	Amortized Cost		Fair Value
Less than one year (1)	$	53.0	$	52.9
One to five years	52.6		53.4
Six to ten years	54.7		56.3
Greater than ten years	130.0		131.9
Total Debt Securities	$	290.3	$	294.5

⁽¹⁾  Amounts in the Less than one year category include securities in the CYAPC and YAEC nuclear decommissioning trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.

Fair Value on a Recurring Basis

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 June 30, 2017		As of December 31, 2016
Level 1:
Mutual Funds and Equities	$	285.3	$	274.0
Money Market Funds	29.7		54.8
Total Level 1	$	315.0	$	328.8
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	53.9	$	63.0
Corporate Debt Securities	67.8		41.1
Asset-Backed Debt Securities	18.6		18.5
Municipal Bonds	113.1		107.5
Other Fixed Income Securities	11.4		10.3
Total Level 2	$	264.8	$	240.4
Total Marketable Securities	$	579.8	$	569.2

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PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Tables)

6 Months Ended

Jun. 30, 2017

Postemployment Benefits [Abstract]

Schedule of Net Benefit Costs

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 portions of pension, SERP and PBOP amounts, are included in Operations and Maintenance expense on the statements of income.  Capitalized 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
Eversource	For the Three Months Ended						For the Six Months Ended
(Millions of Dollars)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Service Cost	$	17.4		$	18.7		$	36.4		$	37.9
Interest Cost	47.2			46.4			93.5			92.8
Expected Return on Pension Plan Assets	(83.5		)	(79.5		)	(167.0		)	(159.1		)
Actuarial Loss	33.9			31.3			67.5			63.0
Prior Service Cost	1.1			0.9			2.0			1.8
Total Net Periodic Benefit Expense	$	16.1		$	17.8		$	32.4		$	36.4
Capitalized Pension Expense	$	5.5		$	5.4		$	10.9		$	11.4
	PBOP
Eversource	For the Three Months Ended						For the Six Months Ended
(Millions of Dollars)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Service Cost	$	2.4		$	3.1		$	4.7		$	6.3
Interest Cost	6.3			9.4			13.5			19.0
Expected Return on Plan Assets	(16.0		)	(15.7		)	(31.9		)	(31.5		)
Actuarial Loss	2.5			0.9			4.6			2.1
Prior Service Credit	(5.3		)	—			(10.7		)	(0.1		)
Total Net Periodic Benefit Income	$	(10.1	)	$	(2.3	)	$	(19.8	)	$	(4.2	)
Capitalized PBOP Income	$	(4.9	)	$	(1.0	)	$	(9.5	)	$	(1.9	)

	Pension and SERP
	For the Three Months Ended June 30, 2017												For the Three Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	4.6		$	3.1		$	2.4		$	0.7		$	4.6		$	3.3		$	2.5		$	0.8
Interest Cost	10.5			8.6			5.3			2.1			10.2			8.5			5.1			2.1
Expected Return on Pension Plan Assets	(17.8		)	(17.5		)	(10.0		)	(4.4		)	(18.0		)	(16.9		)	(9.6		)	(4.4		)
Actuarial Loss	6.8			8.9			3.0			1.5			6.3			8.7			2.6			1.3
Prior Service Cost	0.4			0.1			0.1			0.1			0.4			—			0.1			0.1
Total Net Periodic Benefit Expense/(Income)	$	4.5		$	3.2		$	0.8		$	—		$	3.5		$	3.6		$	0.7		$	(0.1	)
Intercompany Allocations	$	2.4		$	1.8		$	0.8		$	0.5		$	3.5		$	2.2		$	1.0		$	0.6
Capitalized Pension Expense	$	2.4		$	1.9		$	0.4		$	0.1		$	2.2		$	2.0		$	0.4		$	0.1
	Pension and SERP
	For the Six Months Ended June 30, 2017												For the Six Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	9.3		$	6.3		$	4.9		$	1.5		$	9.6		$	6.7		$	5.0		$	1.6
Interest Cost	20.9			17.0			10.5			4.2			21.0			16.8			10.3			4.2
Expected Return on Pension Plan Assets	(36.0		)	(35.1		)	(19.9		)	(8.9		)	(36.2		)	(33.8		)	(19.3		)	(8.8		)
Actuarial Loss	13.9			17.5			5.8			3.0			13.0			17.0			4.9			2.8
Prior Service Cost	0.7			0.2			0.2			0.2			0.8			—			0.2			0.2
Total Net Periodic Benefit Expense	$	8.8		$	5.9		$	1.5		$	—		$	8.2		$	6.7		$	1.1		$	—
Intercompany Allocations	$	5.0		$	3.7		$	1.7		$	0.9		$	6.8		$	4.5		$	2.0		$	1.2
Capitalized Pension Expense	$	4.9		$	3.5		$	0.7		$	0.2		$	4.9		$	3.7		$	0.7		$	0.2

	PBOP
	For the Three Months Ended June 30, 2017												For the Three Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.5		$	0.3		$	0.3		$	0.1		$	0.4		$	1.0		$	0.3		$	0.1
Interest Cost	1.2			1.7			0.7			0.3			1.3			3.8			0.7			0.3
Expected Return on Plan Assets	(2.4		)	(6.6		)	(1.3		)	(0.6		)	(2.5		)	(6.4		)	(1.4		)	(0.6		)
Actuarial Loss	0.3			0.8			0.2			—			0.3			0.3			0.1			—
Prior Service Cost/(Credit)	0.3			(4.3		)	0.1			—			—			—			—			—
Total Net Periodic Benefit Income	$	(0.1	)	$	(8.1	)	$	—		$	(0.2	)	$	(0.5	)	$	(1.3	)	$	(0.3	)	$	(0.2	)
Intercompany Allocations	$	(0.1	)	$	(0.2	)	$	(0.1	)	$	—		$	0.2		$	0.1		$	—		$	—
Capitalized PBOP Income	$	(0.1	)	$	(4.1	)	$	—		$	(0.1	)	$	(0.2	)	$	(0.6	)	$	(0.1	)	$	(0.1	)
	PBOP
	For the Six Months Ended June 30, 2017												For the Six Months Ended June 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.9		$	0.7		$	0.6		$	0.2		$	0.9		$	1.8		$	0.6		$	0.2
Interest Cost	2.7			3.8			1.5			0.5			2.7			7.8			1.5			0.5
Expected Return on Plan Assets	(4.8		)	(13.2		)	(2.7		)	(1.1		)	(5.1		)	(12.7		)	(2.8		)	(1.1		)
Actuarial Loss	0.5			1.7			0.3			—			0.5			0.5			0.2			—
Prior Service Cost/(Credit)	0.5			(8.6		)	0.3			0.1			—			—			—			—
Total Net Periodic Benefit Income	$	(0.2	)	$	(15.6	)	$	—		$	(0.3	)	$	(1.0	)	$	(2.6	)	$	(0.5	)	$	(0.4	)
Intercompany Allocations	$	(0.4	)	$	(0.5	)	$	(0.2	)	$	(0.1	)	$	0.3		$	0.1		$	—		$	0.1
Capitalized PBOP Income	$	(0.2	)	$	(7.9	)	$	—		$	(0.2	)	$	(0.5	)	$	(1.1	)	$	(0.1	)	$	(0.2	)

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Loss Contingencies by Site

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 June 30, 2017			As of December 31, 2016
	Number of Sites	Reserve (in millions)		Number of Sites	Reserve (in millions)
Eversource	58	$	57.7	61	$	65.8
CL&P	14	5.1		14	4.9
NSTAR Electric	11	2.2		13	3.2
PSNH	11	5.7		11	5.3
WMECO	4	0.7		4	0.6

Schedule of Guarantor Obligations

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries to external parties, as of June 30, 2017:  

Company	Description	Maximum  Exposure (in millions)		Expiration Dates
On behalf of subsidiaries:
Eversource Gas Transmission LLC	Access Northeast Project Capital Contributions    Guaranty (1)	$	185.1	2021
Various	Surety Bonds (2)	40.1		2017 - 2018
Eversource Service and Rocky River Realty Company	Lease Payments for Vehicles and Real Estate	8.5		2019 - 2024

⁽¹⁾  Eversource parent issued a declining balance guaranty on behalf of its subsidiary, Eversource Gas Transmission LLC, to guarantee the payment of the subsidiary's capital contributions for its investment in the Access Northeast project. The guaranty decreases as capital contributions are made. The guaranty will expire upon the earlier of the full performance of the guaranteed obligations or December 31, 2021.

⁽²⁾  Surety bond 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.  

Schedule of Complaints and Base ROE

A summary of the four separate complaints and the base ROEs pertinent to those complaints are as follows:

Complaint	15-Month Time Period of Complaint (Beginning as of Complaint Filing Date)	Original Base ROE Authorized by FERC at Time of Complaint Filing Date (1)	Base ROE Subsequently Authorized by FERC for First Complaint Period and also Effective from October 16, 2014 through April 14, 2017 (1)	Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		FERC ALJ Recommendation of Base ROE on Second and Third Complaints (Issued March 22, 2016)
First	10/1/2011 - 12/31/2012	11.14%	10.57%	$—	(2)	N/A
Second	12/27/2012 - 3/26/2014	11.14%	N/A	39.1	(3)	9.59%
Third	7/31/2014 - 10/30/2015	11.14%	10.57%	—		10.90%
Fourth	4/29/2016 - 7/28/2017	10.57%	10.57%	—		N/A

⁽¹⁾ The billed ROE (base plus incentives) between October 1, 2011 and October 15, 2014 was within a range of 11.14 percent to 13.1 percent. On October 16, 2014, the FERC set the incentive cap at 11.74 percent for the first complaint period and also effective from October 16, 2014 through April 14, 2017, at which time the Court vacated this FERC order.

⁽²⁾ CL&P, NSTAR Electric, PSNH and WMECO have refunded all amounts associated with the first complaint period, totaling $38.9 million (pre-tax and excluding interest) at Eversource (including $22.4 million at CL&P, $8.4 million at NSTAR Electric, $2.8 million at PSNH, and $5.3 million at WMECO), reflecting both the base ROE and incentive cap prescribed by the FERC order.

⁽³⁾ The reserve represents the difference between the ROEs billed during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve was $21.4 million for CL&P, $8.5 million for NSTAR Electric, $3.1 million for PSNH, and $6.1 million for WMECO as of June 30, 2017.

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PSNH GENERATION ASSET SALE - (Tables)

6 Months Ended

Jun. 30, 2017

Regulated Operations [Abstract]

Schedule of Generation Assets and Liabilities

As of June 30, 2017, PSNH's generation assets were as follows:

(Millions of Dollars)
Gross Plant	$	1,183.3
Accumulated Depreciation	(564.1		)
Net Plant	619.2
Fuel	94.6
Materials and Supplies	36.3
Emission Allowances	19.5
Total Generation Assets	$	769.6

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

Carrying amounts and estimated fair values are as follows:

	As of June 30, 2017				As of December 31, 2016
Eversource (Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	158.4	$	155.6	$	158.3
Long-Term Debt	10,382.9		10,935.8		9,603.2		9,980.5

	CL&P				NSTAR Electric				PSNH				WMECO
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of June 30, 2017:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	115.0	$	43.0	$	43.4	$	—	$	—	$	—	$	—
Long-Term Debt	2,913.5		3,247.3		2,425.9		2,605.9		1,072.3		1,122.3		566.3		602.8
As of December 31, 2016:
Preferred Stock Not Subject to Mandatory Redemption	$	116.2	$	114.7	$	43.0	$	43.6	$	—	$	—	$	—	$	—
Long-Term Debt	2,766.0		3,049.6		2,078.1		2,201.6		1,072.0		1,109.7		566.5		589.0

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ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, is as follows:

	For the Six Months Ended June 30, 2017											For the Six Months Ended June 30, 2016
	Qualified			Unrealized								Qualified			Unrealized
	Cash Flow			Gains								Cash Flow			Gains/(Losses)
Eversource (Millions of Dollars)	Hedging			on Marketable		Defined						Hedging			on Marketable			Defined
	Instruments			Securities		Benefit Plans			Total			Instruments			Securities			Benefit Plans			Total
Balance as of Beginning of Period	$	(8.2	)	$	0.4	$	(57.5	)	$	(65.3	)	$	(10.3	)	$	(1.9	)	$	(54.6	)	$	(66.8	)
OCI Before Reclassifications	—			2.6		(3.5		)	(0.9		)	—			1.3			(2.6		)	(1.3		)
Amounts Reclassified from AOCL	1.1			—		2.2			3.3			1.1			—			1.6			2.7
Net OCI	1.1			2.6		(1.3		)	2.4			1.1			1.3			(1.0		)	1.4
Balance as of End of Period	$	(7.1	)	$	3.0	$	(58.8	)	$	(62.9	)	$	(9.2	)	$	(0.6	)	$	(55.6	)	$	(65.4	)

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COMMON SHARES (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Schedule of Stock by Class

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric, PSNH and WMECO that were authorized and issued, as well as the respective per share par values:  

	Shares
			Authorized as of June 30, 2017 and	Issued as of
	Par Value		December 31, 2016	June 30, 2017	December 31, 2016
Eversource	$	5	380,000,000	333,878,402	333,878,402
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	100	100
PSNH	$	1	100,000,000	301	301
WMECO	$	25	1,072,471	434,653	434,653

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the components of basic and diluted EPS:

Eversource (Millions of Dollars, except share information)	For the Three Months Ended				For the Six Months Ended
	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Net Income Attributable to Common Shareholders	$	230.7	$	203.6	$	490.2	$	447.8
Weighted Average Common Shares Outstanding:
Basic	317,391,365		317,785,495		317,427,258		317,651,319
Dilutive Effect	555,829		691,204		608,606		827,557
Diluted	317,947,194		318,476,699		318,035,864		318,478,876
Basic and Diluted EPS	$	0.72	$	0.64	$	1.54	$	1.41

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Eversource's segment information is as follows:

	For the Three Months Ended June 30, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	1,275.9		$	186.0		$	324.6		$	217.0		$	(240.7	)	$	1,762.8
Depreciation and Amortization	(105.4		)	(17.9		)	(51.4		)	(7.9		)	0.5			(182.1		)
Other Operating Expenses	(925.3		)	(150.0		)	(94.9		)	(195.9		)	241.1			(1,125.0		)
Operating Income	245.2			18.1			178.3			13.2			0.9			455.7
Interest Expense	(49.4		)	(10.9		)	(28.9		)	(21.6		)	3.5			(107.3		)
Other Income, Net	2.5			0.1			6.8			257.6			(245.5		)	21.5
Net Income Attributable to Common Shareholders	$	121.9		$	4.5		$	96.4		$	249.0		$	(241.1	)	$	230.7
	For the Six Months Ended June 30, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	2,677.0		$	589.6		$	641.5		$	453.4		$	(493.6	)	$	3,867.9
Depreciation and Amortization	(235.2		)	(39.6		)	(102.0		)	(17.2		)	1.1			(392.9		)
Other Operating Expenses	(1,967.3		)	(439.6		)	(184.8		)	(412.5		)	493.9			(2,510.3		)
Operating Income	474.5			110.4			354.7			23.7			1.4			964.7
Interest Expense	(97.6		)	(21.5		)	(57.0		)	(41.3		)	6.6			(210.8		)
Other Income, Net	7.4			0.4			11.7			586.5			(570.9		)	35.1
Net Income Attributable to Common Shareholders	$	236.0		$	55.3		$	190.6		$	571.2		$	(562.9	)	$	490.2
Cash Flows Used for Investments in Plant	$	515.0		$	139.7		$	415.6		$	76.7		$	—		$	1,147.0

	For the Three Months Ended June 30, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	1,303.1		$	180.4		$	302.5		$	211.1		$	(229.9	)	$	1,767.2
Depreciation and Amortization	(98.4		)	(16.8		)	(45.6		)	(7.5		)	0.5			(167.8		)
Other Operating Expenses	(994.4		)	(141.1		)	(82.5		)	(188.1		)	230.1			(1,176.0		)
Operating Income	210.3			22.5			174.4			15.5			0.7			423.4
Interest Expense	(47.6		)	(10.4		)	(27.4		)	(16.6		)	1.5			(100.5		)
Other Income, Net	6.3			0.1			5.3			219.0			(222.6		)	8.1
Net Income Attributable to Common Shareholders	$	102.8		$	8.0		$	92.5		$	220.7		$	(220.4	)	$	203.6
	For the Six Months Ended June 30, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	2,739.2		$	523.0		$	585.8		$	425.3		$	(450.5	)	$	3,822.8
Depreciation and Amortization	(226.1		)	(32.7		)	(90.7		)	(14.4		)	1.1			(362.8		)
Other Operating Expenses	(2,083.3		)	(374.5		)	(155.5		)	(385.4		)	450.7			(2,548.0		)
Operating Income	429.8			115.8			339.6			25.5			1.3			912.0
Interest Expense	(95.6		)	(20.5		)	(55.3		)	(30.7		)	3.4			(198.7		)
Other Income/(Loss), Net	6.3			(0.2		)	7.9			524.4			(528.4		)	10.0
Net Income Attributable to Common Shareholders	$	211.3		$	58.9		$	178.2		$	523.1		$	(523.7	)	$	447.8
Cash Flows Used for Investments in Plant	$	362.0		$	105.0		$	349.1		$	53.1		$	—		$	869.2

The following table summarizes Eversource's segmented total assets:

Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Other		Eliminations			Total
As of June 30, 2017	$	18,663.7	$	3,337.0	$	9,003.4	$	14,657.1	$	(13,002.4	)	$	32,658.8
As of December 31, 2016	18,367.5		3,303.8		8,751.5		14,493.1		(12,862.7		)	32,053.2

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details) customer in Millions, $ in Millions		6 Months Ended
	Jun. 02, 2017 USD ($)	Jun. 30, 2017 customer utility
Schedule of Equity Method Investments [Line Items]
Number of electric and natural gas customers | customer		3.7
Connecticut, Massachusetts and New Hampshire [Member]
Schedule of Equity Method Investments [Line Items]
Number of regulated utilities | utility		6
Aquarion Water Company [Member]
Schedule of Equity Method Investments [Line Items]
Amount involved in acquisition of Aquarion	$ 1,675
Cash paid to acquire Aquarion	880
Liability assumed in acquisition of Aquarion	$ 795

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards (Details) $ in Millions	Jun. 30, 2017 USD ($)
Accounting Policies [Abstract]
Available for sale securities subject to new accounting guidance	$ 49

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Provision for Uncollectible Accounts Narrative (Details)	6 Months Ended
	Jun. 30, 2017
Maximum [Member] | The Connecticut Light And Power Company [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period of accounts receivable recoverable under financial or medical duress	180 days
Minimum [Member] | Yankee Gas Services Company [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period of accounts receivable recoverable under financial or medical duress	90 days

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Provision for Uncollectible Accounts (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Provision for Uncollectible Accounts	$ 199.0	$ 200.6
Uncollectible Hardship	124.5	119.9
The Connecticut Light And Power Company [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Provision for Uncollectible Accounts	77.5	86.4
Uncollectible Hardship	64.5	67.7
NSTAR Electric Company [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Provision for Uncollectible Accounts	54.5	54.8
Uncollectible Hardship	30.7	26.2
Public Service Company Of New Hampshire [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Provision for Uncollectible Accounts	11.0	9.9
Uncollectible Hardship	0.0	0.0
Western Massachusetts Electric Company [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Provision for Uncollectible Accounts	16.4	15.5
Uncollectible Hardship	$ 10.6	$ 9.9

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Income, Net Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Income, Net [Line Items]
Other Income/(Loss), Net	$ 21,543	$ 8,038	$ 35,120	$ 10,049
Equity Method Investments
Other Income, Net [Line Items]
Other Income/(Loss), Net	$ 13,300		$ 17,900

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Gross Tax Receipts [Line Items]
Excise and sales taxes	$ 35.7	$ 37.5	$ 77.9	$ 79.8
The Connecticut Light And Power Company [Member]
Schedule of Gross Tax Receipts [Line Items]
Excise and sales taxes	$ 31.8	$ 33.6	$ 65.7	$ 69.6

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Schedule of Supplemental Cash Flow [Line Items]
Capital expenditures incurred but not yet paid	$ 172.0	$ 186.3
The Connecticut Light And Power Company [Member]
Schedule of Supplemental Cash Flow [Line Items]
Capital expenditures incurred but not yet paid	85.9	59.5
NSTAR Electric Company [Member]
Schedule of Supplemental Cash Flow [Line Items]
Capital expenditures incurred but not yet paid	29.5	38.5
Public Service Company Of New Hampshire [Member]
Schedule of Supplemental Cash Flow [Line Items]
Capital expenditures incurred but not yet paid	20.2	31.1
Western Massachusetts Electric Company [Member]
Schedule of Supplemental Cash Flow [Line Items]
Capital expenditures incurred but not yet paid	$ 10.6	$ 14.6

XML

REGULATORY ACCOUNTING - Components of Regulatory Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Regulatory Assets [Line Items]
Total Regulatory Assets	$ 4,451,400	$ 4,526,300
Less: Current Portion	870,393	887,625
Total Long-Term Regulatory Assets	3,580,981	3,638,688
Benefit Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	1,833,600	1,817,800
Derivative Liabilities [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	398,100	423,300
Income Taxes, Net [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	652,500	644,500
Storm Restoration Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	352,900	385,300
Goodwill-related [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	454,200	464,400
Regulatory Tracker Mechanisms [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	584,300	576,600
Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	103,000	99,300
Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	72,800	115,100
The Connecticut Light And Power Company [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	1,689,500	1,727,100
Less: Current Portion	346,520	335,526
Total Long-Term Regulatory Assets	1,343,011	1,391,564
The Connecticut Light And Power Company [Member] | Benefit Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	423,500	429,300
The Connecticut Light And Power Company [Member] | Derivative Liabilities [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	394,800	420,500
The Connecticut Light And Power Company [Member] | Income Taxes, Net [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	440,700	437,000
The Connecticut Light And Power Company [Member] | Storm Restoration Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	210,300	239,800
The Connecticut Light And Power Company [Member] | Goodwill-related [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	0	0
The Connecticut Light And Power Company [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	153,000	123,900
The Connecticut Light And Power Company [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	34,500	33,200
The Connecticut Light And Power Company [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	32,700	43,400
NSTAR Electric Company [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	1,334,300	1,347,100
Less: Current Portion	270,230	289,400
Total Long-Term Regulatory Assets	1,064,099	1,057,746
NSTAR Electric Company [Member] | Benefit Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	445,600	438,600
NSTAR Electric Company [Member] | Derivative Liabilities [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	2,300	2,800
NSTAR Electric Company [Member] | Income Taxes, Net [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	91,200	89,700
NSTAR Electric Company [Member] | Storm Restoration Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	115,300	112,500
NSTAR Electric Company [Member] | Goodwill-related [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	389,900	398,700
NSTAR Electric Company [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	240,700	257,300
NSTAR Electric Company [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	33,200	31,900
NSTAR Electric Company [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	16,100	15,600
Public Service Company Of New Hampshire [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	382,000	362,700
Less: Current Portion	132,424	117,240
Total Long-Term Regulatory Assets	249,612	245,525
Public Service Company Of New Hampshire [Member] | Benefit Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	189,700	184,200
Public Service Company Of New Hampshire [Member] | Derivative Liabilities [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	0	0
Public Service Company Of New Hampshire [Member] | Income Taxes, Net [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	22,400	24,200
Public Service Company Of New Hampshire [Member] | Storm Restoration Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	12,900	17,100
Public Service Company Of New Hampshire [Member] | Goodwill-related [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	0	0
Public Service Company Of New Hampshire [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	125,700	104,500
Public Service Company Of New Hampshire [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	16,600	16,200
Public Service Company Of New Hampshire [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	14,700	16,500
Western Massachusetts Electric Company [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	192,200	191,400
Less: Current Portion	67,310	64,123
Total Long-Term Regulatory Assets	124,899	127,291
Western Massachusetts Electric Company [Member] | Benefit Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	86,400	86,700
Western Massachusetts Electric Company [Member] | Derivative Liabilities [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	0	0
Western Massachusetts Electric Company [Member] | Income Taxes, Net [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	31,200	30,800
Western Massachusetts Electric Company [Member] | Storm Restoration Costs [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	14,400	15,900
Western Massachusetts Electric Company [Member] | Goodwill-related [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	0	0
Western Massachusetts Electric Company [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	50,500	46,700
Western Massachusetts Electric Company [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	4,400	4,200
Western Massachusetts Electric Company [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Total Regulatory Assets	$ 5,300	$ 7,100

XML

REGULATORY ACCOUNTING - Regulatory Costs in Other Long-Term Assets (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Regulatory Assets [Line Items]
Amount of regulatory costs not yet approved	$ 103.0	$ 86.3
The Connecticut Light And Power Company [Member]
Regulatory Assets [Line Items]
Amount of regulatory costs not yet approved	3.5	5.9
NSTAR Electric Company [Member]
Regulatory Assets [Line Items]
Amount of regulatory costs not yet approved	40.1	35.0
Public Service Company Of New Hampshire [Member]
Regulatory Assets [Line Items]
Amount of regulatory costs not yet approved	16.4	8.2
Western Massachusetts Electric Company [Member]
Regulatory Assets [Line Items]
Amount of regulatory costs not yet approved	$ 24.3	$ 20.1

XML

REGULATORY ACCOUNTING - Components of Regulatory Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	$ 882,600	$ 849,100
Less: Current Portion	185,930	146,787
Total Long-Term Regulatory Liabilities	696,740	702,255
Cost of Removal [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	474,400	459,700
Benefit Costs [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	129,500	136,200
Regulatory Tracker Mechanisms [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	176,300	145,300
AFUDC - Transmission [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	65,600	65,800
Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	36,800	42,100
The Connecticut Light And Power Company [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	164,100	147,200
Less: Current Portion	62,195	47,055
Total Long-Term Regulatory Liabilities	101,863	100,138
The Connecticut Light And Power Company [Member] | Cost of Removal [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	43,400	38,800
The Connecticut Light And Power Company [Member] | Benefit Costs [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	0	0
The Connecticut Light And Power Company [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	47,500	37,200
The Connecticut Light And Power Company [Member] | AFUDC - Transmission [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	49,500	50,200
The Connecticut Light And Power Company [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	23,700	21,000
NSTAR Electric Company [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	442,900	455,500
Less: Current Portion	48,350	63,653
Total Long-Term Regulatory Liabilities	394,527	391,823
NSTAR Electric Company [Member] | Cost of Removal [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	277,400	271,600
NSTAR Electric Company [Member] | Benefit Costs [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	109,400	113,100
NSTAR Electric Company [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	48,400	63,700
NSTAR Electric Company [Member] | AFUDC - Transmission [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	7,400	6,900
NSTAR Electric Company [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	300	200
Public Service Company Of New Hampshire [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	57,500	57,500
Less: Current Portion	13,696	12,659
Total Long-Term Regulatory Liabilities	43,845	44,779
Public Service Company Of New Hampshire [Member] | Cost of Removal [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	42,800	44,100
Public Service Company Of New Hampshire [Member] | Benefit Costs [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	0	0
Public Service Company Of New Hampshire [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	11,700	10,700
Public Service Company Of New Hampshire [Member] | AFUDC - Transmission [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	0	0
Public Service Company Of New Hampshire [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	3,000	2,700
Western Massachusetts Electric Company [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	32,000	32,100
Less: Current Portion	11,062	14,888
Total Long-Term Regulatory Liabilities	20,887	17,227
Western Massachusetts Electric Company [Member] | Cost of Removal [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	12,400	8,600
Western Massachusetts Electric Company [Member] | Benefit Costs [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	0	0
Western Massachusetts Electric Company [Member] | Regulatory Tracker Mechanisms [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	10,900	14,700
Western Massachusetts Electric Company [Member] | AFUDC - Transmission [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	8,700	8,700
Western Massachusetts Electric Company [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Total Regulatory Liabilities	$ 0	$ 100

XML

PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION - Investment in Utility Property, plant and equipment by asset (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Public Utility, Property, Plant and Equipment [Line Items]
Distribution - Electric	$ 14,012,600	$ 13,716,900
Distribution - Natural Gas	3,094,300	3,010,400
Transmission	8,817,600	8,517,400
Generation	1,215,400	1,224,200
Electric and Natural Gas Utility	27,139,900	26,468,900
Other	594,000	591,600
Property, Plant and Equipment, Gross	27,733,900	27,060,500
Less: Accumulated Depreciation
Electric and Natural Gas Utility	(6,706,600)	(6,480,400)
Other	(262,800)	(242,000)
Total Accumulated Depreciation	(6,969,400)	(6,722,400)
Property, Plant and Equipment, Net	20,764,500	20,338,100
Construction Work in Progress	1,307,000	1,012,400
Net Plant	22,071,496	21,350,510
Construction work in progress related to NPT	190,000
The Connecticut Light And Power Company [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Distribution - Electric	5,717,100	5,562,900
Transmission	4,016,400	3,912,900
Generation	0	0
Property, Plant and Equipment, Gross	9,733,500	9,475,800
Less: Accumulated Depreciation
Total Accumulated Depreciation	(2,156,700)	(2,082,400)
Property, Plant and Equipment, Net	7,576,800	7,393,400
Construction Work in Progress	363,600	239,000
Net Plant	7,940,398	7,632,392
NSTAR Electric Company [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Distribution - Electric	5,453,300	5,402,300
Transmission	2,530,300	2,435,800
Generation	0	0
Property, Plant and Equipment, Gross	7,983,600	7,838,100
Less: Accumulated Depreciation
Total Accumulated Depreciation	(2,104,200)	(2,025,400)
Property, Plant and Equipment, Net	5,879,400	5,812,700
Construction Work in Progress	309,100	239,100
Net Plant	6,188,535	6,051,835
Public Service Company Of New Hampshire [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Distribution - Electric	2,018,600	1,949,800
Transmission	1,103,100	1,059,300
Generation	1,179,400	1,188,200
Property, Plant and Equipment, Gross	4,301,100	4,197,300
Less: Accumulated Depreciation
Total Accumulated Depreciation	(1,290,100)	(1,254,700)
Property, Plant and Equipment, Net	3,011,000	2,942,600
Construction Work in Progress	107,500	96,700
Net Plant	3,118,456	3,039,313
Western Massachusetts Electric Company [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Distribution - Electric	863,600	841,900
Transmission	1,119,400	1,061,100
Generation	36,000	36,000
Property, Plant and Equipment, Gross	2,019,000	1,939,000
Less: Accumulated Depreciation
Total Accumulated Depreciation	(352,000)	(338,800)
Property, Plant and Equipment, Net	1,667,000	1,600,200
Construction Work in Progress	52,800	78,100
Net Plant	$ 1,719,824	$ 1,678,262

XML

DERIVATIVE INSTRUMENTS - Gross Fair Value of Contracts (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Current Derivative Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Commodity Supply and Price Risk Management	$ 0.0	$ 6.0
Netting	0.0	0.0
Net Amount Recorded as a Derivative	0.0	6.0
Current Derivative Assets [Member] | Eversource and The Connecticut Light And Power Company [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Commodity Supply and Price Risk Management	11.2	13.9
Netting	(7.7)	(9.4)
Net Amount Recorded as a Derivative	3.5	4.5
Long-term Derivative Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Commodity Supply and Price Risk Management	0.0	0.3
Netting	0.0	(0.1)
Net Amount Recorded as a Derivative	0.0	0.2
Long-term Derivative Assets [Member] | Eversource and The Connecticut Light And Power Company [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Commodity Supply and Price Risk Management	76.0	77.3
Netting	(8.0)	(11.7)
Net Amount Recorded as a Derivative	68.0	65.6
Current Derivative Liabilities [Member] | Fair Value, Inputs, Level 2 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(1.1)	0.0
Netting	0.1	0.0
Net Amount Recorded as a Derivative	(1.0)	0.0
Current Derivative Liabilities [Member] | Fair Value, Inputs, Level 3 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(66.5)	(79.7)
Netting	0.0	0.0
Net Amount Recorded as a Derivative	(66.5)	(79.7)
Current Derivative Liabilities [Member] | The Connecticut Light And Power Company [Member] | Fair Value, Inputs, Level 3 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(64.3)	(77.8)
Netting	0.0	0.0
Net Amount Recorded as a Derivative	(64.3)	(77.8)
Current Derivative Liabilities [Member] | NSTAR Electric Company [Member] | Fair Value, Inputs, Level 3 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(2.2)	(1.9)
Netting	0.0	0.0
Net Amount Recorded as a Derivative	(2.2)	(1.9)
Long-Term Derivative Liabilities [Member] | Fair Value, Inputs, Level 3 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(402.1)	(413.7)
Netting	0.0	0.0
Net Amount Recorded as a Derivative	(402.1)	(413.7)
Long-Term Derivative Liabilities [Member] | The Connecticut Light And Power Company [Member] | Fair Value, Inputs, Level 3 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(402.0)	(412.8)
Netting	0.0	0.0
Net Amount Recorded as a Derivative	(402.0)	(412.8)
Long-Term Derivative Liabilities [Member] | NSTAR Electric Company [Member] | Fair Value, Inputs, Level 3 [Member]
Current and Long-Term Derivative Liabilities
Commodity Supply and Price Risk Management	(0.1)	(0.9)
Netting	0.0	0.0
Net Amount Recorded as a Derivative	$ (0.1)	$ (0.9)

XML

DERIVATIVE INSTRUMENTS - Derivative Contracts at Fair Value (Details) MWh in Millions, MMBTU in Millions, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) MMBTU MWh MW	Jun. 30, 2016 USD ($)	Dec. 31, 2016 MMBTU
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percentage of costs or benefits borne under capacity-related contracts by United Illuminated Company			20.00%
Amount of power to be purchased under capacity-related contract (up to) | MW			787
Amount of natural gas to be purchased under futures contracts | MMBTU			6.3		9.2
Losses deferred as regulatory costs | $	$ (4.4)	$ (42.9)	$ (30.9)	$ (74.4)
The Connecticut Light And Power Company [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percentage of costs or benefits borne under capacity-related contracts			80.00%
Amount of energy to be purchased under renewable energy contract (in mwh) | MWh			0.1
NSTAR Electric Company [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of power to be purchased under capacity-related contract (up to) | MW			35
Amount of energy to be purchased under renewable energy contract (in mwh) | MWh			0.1

XML

DERIVATIVE INSTRUMENTS - Unobservable Inputs Utilized (Details) - Fair Value, Inputs, Level 3 [Member] - $ / KWmo	Jun. 30, 2017	Dec. 31, 2016
Eversource and The Connecticut Light And Power Company [Member] | Minimum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Capacity Prices (in USDPerKiloWattMonth)	5.00	5.50
Forward Reserve (in USDPerKiloWattMonth)	1.40	1.40
Eversource and The Connecticut Light And Power Company [Member] | Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Capacity Prices (in USDPerKiloWattMonth)	8.70	8.70
Forward Reserve (in USDPerKiloWattMonth)	2.00	2.00
Eversource and NSTAR Electric Company [Member] | Minimum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
REC Prices (in USDPerKiloWattMonth)	26.00	24.00
Eversource and NSTAR Electric Company [Member] | Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
REC Prices (in USDPerKiloWattMonth)	27.50	29.00

XML

DERIVATIVE INSTRUMENTS - Unobservable Inputs Narrative (Details) - Fair Value, Inputs, Level 3 [Member]	6 Months Ended
	Jun. 30, 2017
Minimum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percentage of exit price premiums related to derivative contracts	2.00%
Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percentage of exit price premiums related to derivative contracts	19.00%

XML

DERIVATIVE INSTRUMENTS - Derivative Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivatives, Net [Rollforward]
Fair Value as of Beginning of Period	$ (416.0)	$ (387.7)	$ (423.3)	$ (380.9)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets and Liabilities	(3.0)	(46.6)	(18.4)	(76.6)
Settlements	21.9	21.7	44.6	44.9
Fair Value as of End of Period	(397.1)	(412.6)	(397.1)	(412.6)
The Connecticut Light And Power Company [Member]
Derivatives, Net [Rollforward]
Fair Value as of Beginning of Period	(413.5)	(385.1)	(420.5)	(380.8)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets and Liabilities	(0.6)	(46.8)	(15.2)	(72.2)
Settlements	19.3	20.6	40.9	41.7
Fair Value as of End of Period	(394.8)	(411.3)	(394.8)	(411.3)
NSTAR Electric Company [Member]
Derivatives, Net [Rollforward]
Fair Value as of Beginning of Period	(2.5)	(2.6)	(2.8)	(0.1)
Net Realized/Unrealized Gains/(Losses) Included in Regulatory Assets and Liabilities	(2.4)	0.2	(3.2)	(4.4)
Settlements	2.6	1.1	3.7	3.2
Fair Value as of End of Period	$ (2.3)	$ (1.3)	$ (2.3)	$ (1.3)

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MARKETABLE SECURITIES - Trading Securities (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Fair value of securities under fair value option			$ 9.6
Other Income [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Net gain (loss) under fair value option	$ 0.2	$ 0.5

XML

MARKETABLE SECURITIES - Schedule of Available for Sale Securities (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 290.3	$ 296.2
Pre-Tax Unrealized Gains	4.7	1.1
Pre-Tax Unrealized Losses	(0.5)	(2.1)
Fair Value	294.5	295.2
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	202.1	203.3
Pre-Tax Unrealized Gains	83.2	62.3
Pre-Tax Unrealized Losses	0.0	(1.2)
Fair Value	$ 285.3	$ 264.4

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MARKETABLE SECURITIES - Available for Sale Securities Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Debt, equity and marketable securities held in nuclear decommissioning trust	$ 485.9	$ 466.7

XML

MARKETABLE SECURITIES - Schedule of Contractual Maturities (Details) $ in Millions	Jun. 30, 2017 USD ($)
Amortized Cost
Less than one year	$ 53.0
One to five years	52.6
Six to ten years	54.7
Greater than ten years	130.0
Total Debt Securities	290.3
Fair Value
Less than one year	52.9
One to five years	53.4
Six to ten years	56.3
Greater than ten years	131.9
Total Debt Securities	$ 294.5

XML

MARKETABLE SECURITIES - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	$ 579.8	$ 569.2
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	315.0	328.8
Fair Value, Inputs, Level 1 [Member] | Mutual Funds and Equities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	285.3	274.0
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	29.7	54.8
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	264.8	240.4
Fair Value, Inputs, Level 2 [Member] | U.S. Government Issued Debt Securities (Agency and Treasury) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	53.9	63.0
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	67.8	41.1
Fair Value, Inputs, Level 2 [Member] | Asset-Backed Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	18.6	18.5
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	113.1	107.5
Fair Value, Inputs, Level 2 [Member] | Other Fixed Income Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities recorded at fair value on a recurring basis	$ 11.4	$ 10.3

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SHORT-TERM AND LONG-TERM DEBT - Commercial Paper Programs and Credit Agreements (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Eversource Parent [Member]
Line of Credit Facility [Line Items]
Amount outstanding during period	$ 0	$ 0
Eversource Parent [Member] | Commercial Paper [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,450,000,000
Short-term borrowings outstanding	937,500,000	1,000,000,000
Remaining borrowing capacity	$ 512,500,000	$ 428,000,000
Weighted average interest rate (as a percentage)	1.34%	0.88%
Eversource Parent [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,450,000,000
Debt instrument term	5 years
The Connecticut Light And Power Company [Member]
Line of Credit Facility [Line Items]
Notes payable to Eversource Parent	$ 101,100,000	$ 80,100,000
Public Service Company Of New Hampshire [Member]
Line of Credit Facility [Line Items]
Notes payable to Eversource Parent	194,100,000	160,900,000
Western Massachusetts Electric Company [Member]
Line of Credit Facility [Line Items]
Notes payable to Eversource Parent	68,700,000	51,000,000
NSTAR Electric Company [Member]
Line of Credit Facility [Line Items]
Amount outstanding during period	0	0
NSTAR Electric Company [Member] | Commercial Paper [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	450,000,000
Short-term borrowings outstanding	0	126,500,000
Remaining borrowing capacity	450,000,000	$ 323,500,000
Weighted average interest rate (as a percentage)		0.71%
NSTAR Electric Company [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 450,000,000
Debt instrument term	5 years

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SHORT-TERM AND LONG-TERM DEBT - Long-Term Debt Issuances (Details) - Senior Notes [Member] - USD ($)	May 31, 2017	Mar. 31, 2017
Eversource Parent [Member] | Series K Senior Notes Due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 300,000,000
Interest rate stated percentage		2.75%
The Connecticut Light And Power Company [Member] | 2017 Series A First and Refunding Mortgage Bonds Due 2027 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 300,000,000
Interest rate stated percentage		3.20%
NSTAR Electric Company [Member] | Unsecured Notes Due 2027 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 350,000,000
Interest rate stated percentage	3.20%

XML

SHORT-TERM AND LONG-TERM DEBT - Long-Term Debt Repayments (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Repayments of debt		$ 150,000	$ 200,000
The Connecticut Light And Power Company [Member]
Debt Instrument [Line Items]
Repayments of debt		$ 150,000	$ 0
2007 Series A First and Refunding Mortgage Bonds [Member] | Senior Notes [Member] | The Connecticut Light And Power Company [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 150,000
Interest rate stated percentage	5.375%

XML

SHORT-TERM AND LONG - Long-Term Debt Issuance Authorization (Details) - Senior Notes [Member] - USD ($) $ in Millions	Mar. 30, 2017	Jan. 04, 2017
The Connecticut Light And Power Company [Member]
Debt Instrument [Line Items]
Amount of debt authorized (up to)		$ 1,325
NSTAR Electric Company [Member]
Debt Instrument [Line Items]
Amount of debt authorized (up to)	$ 700

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PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Pension Plan [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Prior service credit as a result of remeasurement	$ 5.3	$ 10.7

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PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS - Components of Periodic Benefit Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	$ 17.4	$ 18.7	$ 36.4	$ 37.9
Interest Cost	47.2	46.4	93.5	92.8
Expected Return on Pension Plan Assets	(83.5)	(79.5)	(167.0)	(159.1)
Actuarial Loss	33.9	31.3	67.5	63.0
Prior Service Cost/(Credit)	1.1	0.9	2.0	1.8
Total Net Periodic Benefit Income	16.1	17.8	32.4	36.4
Capitalized PBOP Income/Expense	5.5	5.4	10.9	11.4
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	2.4	3.1	4.7	6.3
Interest Cost	6.3	9.4	13.5	19.0
Expected Return on Pension Plan Assets	(16.0)	(15.7)	(31.9)	(31.5)
Actuarial Loss	2.5	0.9	4.6	2.1
Prior Service Cost/(Credit)	(5.3)	0.0	(10.7)	(0.1)
Total Net Periodic Benefit Income	(10.1)	(2.3)	(19.8)	(4.2)
Capitalized PBOP Income/Expense	(4.9)	(1.0)	(9.5)	(1.9)
The Connecticut Light And Power Company [Member] | Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	4.6	4.6	9.3	9.6
Interest Cost	10.5	10.2	20.9	21.0
Expected Return on Pension Plan Assets	(17.8)	(18.0)	(36.0)	(36.2)
Actuarial Loss	6.8	6.3	13.9	13.0
Prior Service Cost/(Credit)	0.4	0.4	0.7	0.8
Total Net Periodic Benefit Income	4.5	3.5	8.8	8.2
Intercompany Allocations	2.4	3.5	5.0	6.8
Capitalized PBOP Income/Expense	2.4	2.2	4.9	4.9
The Connecticut Light And Power Company [Member] | Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	0.5	0.4	0.9	0.9
Interest Cost	1.2	1.3	2.7	2.7
Expected Return on Pension Plan Assets	(2.4)	(2.5)	(4.8)	(5.1)
Actuarial Loss	0.3	0.3	0.5	0.5
Prior Service Cost/(Credit)	0.3	0.0	0.5	0.0
Total Net Periodic Benefit Income	(0.1)	(0.5)	(0.2)	(1.0)
Intercompany Allocations	(0.1)	0.2	(0.4)	0.3
Capitalized PBOP Income/Expense	(0.1)	(0.2)	(0.2)	(0.5)
NSTAR Electric Company [Member] | Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	3.1	3.3	6.3	6.7
Interest Cost	8.6	8.5	17.0	16.8
Expected Return on Pension Plan Assets	(17.5)	(16.9)	(35.1)	(33.8)
Actuarial Loss	8.9	8.7	17.5	17.0
Prior Service Cost/(Credit)	0.1	0.0	0.2	0.0
Total Net Periodic Benefit Income	3.2	3.6	5.9	6.7
Intercompany Allocations	1.8	2.2	3.7	4.5
Capitalized PBOP Income/Expense	1.9	2.0	3.5	3.7
NSTAR Electric Company [Member] | Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	0.3	1.0	0.7	1.8
Interest Cost	1.7	3.8	3.8	7.8
Expected Return on Pension Plan Assets	(6.6)	(6.4)	(13.2)	(12.7)
Actuarial Loss	0.8	0.3	1.7	0.5
Prior Service Cost/(Credit)	(4.3)	0.0	(8.6)	0.0
Total Net Periodic Benefit Income	(8.1)	(1.3)	(15.6)	(2.6)
Intercompany Allocations	(0.2)	0.1	(0.5)	0.1
Capitalized PBOP Income/Expense	(4.1)	(0.6)	(7.9)	(1.1)
Public Service Company Of New Hampshire [Member] | Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	2.4	2.5	4.9	5.0
Interest Cost	5.3	5.1	10.5	10.3
Expected Return on Pension Plan Assets	(10.0)	(9.6)	(19.9)	(19.3)
Actuarial Loss	3.0	2.6	5.8	4.9
Prior Service Cost/(Credit)	0.1	0.1	0.2	0.2
Total Net Periodic Benefit Income	0.8	0.7	1.5	1.1
Intercompany Allocations	0.8	1.0	1.7	2.0
Capitalized PBOP Income/Expense	0.4	0.4	0.7	0.7
Public Service Company Of New Hampshire [Member] | Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	0.3	0.3	0.6	0.6
Interest Cost	0.7	0.7	1.5	1.5
Expected Return on Pension Plan Assets	(1.3)	(1.4)	(2.7)	(2.8)
Actuarial Loss	0.2	0.1	0.3	0.2
Prior Service Cost/(Credit)	0.1	0.0	0.3	0.0
Total Net Periodic Benefit Income	0.0	(0.3)	0.0	(0.5)
Intercompany Allocations	(0.1)	0.0	(0.2)	0.0
Capitalized PBOP Income/Expense	0.0	(0.1)	0.0	(0.1)
Western Massachusetts Electric Company [Member] | Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	0.7	0.8	1.5	1.6
Interest Cost	2.1	2.1	4.2	4.2
Expected Return on Pension Plan Assets	(4.4)	(4.4)	(8.9)	(8.8)
Actuarial Loss	1.5	1.3	3.0	2.8
Prior Service Cost/(Credit)	0.1	0.1	0.2	0.2
Total Net Periodic Benefit Income	0.0	(0.1)	0.0	0.0
Intercompany Allocations	0.5	0.6	0.9	1.2
Capitalized PBOP Income/Expense	0.1	0.1	0.2	0.2
Western Massachusetts Electric Company [Member] | Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service Cost	0.1	0.1	0.2	0.2
Interest Cost	0.3	0.3	0.5	0.5
Expected Return on Pension Plan Assets	(0.6)	(0.6)	(1.1)	(1.1)
Actuarial Loss	0.0	0.0	0.0	0.0
Prior Service Cost/(Credit)	0.0	0.0	0.1	0.0
Total Net Periodic Benefit Income	(0.2)	(0.2)	(0.3)	(0.4)
Intercompany Allocations	0.0	0.0	(0.1)	0.1
Capitalized PBOP Income/Expense	$ (0.1)	$ (0.1)	$ (0.2)	$ (0.2)

XML

COMMITMENTS AND CONTINGENCIES - Schedule of Environmental Matters (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017 USD ($) site	Dec. 31, 2016 USD ($) site
Site Contingency [Line Items]
Number of Sites | site	58	61
Reserve | $	$ 57.7	$ 65.8
The Connecticut Light And Power Company [Member]
Site Contingency [Line Items]
Number of Sites | site	14	14
Reserve | $	$ 5.1	$ 4.9
NSTAR Electric Company [Member]
Site Contingency [Line Items]
Number of Sites | site	11	13
Reserve | $	$ 2.2	$ 3.2
Public Service Company Of New Hampshire [Member]
Site Contingency [Line Items]
Number of Sites | site	11	11
Reserve | $	$ 5.7	$ 5.3
Western Massachusetts Electric Company [Member]
Site Contingency [Line Items]
Number of Sites | site	4	4
Reserve | $	$ 0.7	$ 0.6

XML

COMMITMENTS AND CONTINGENCIES - Environmental Matters Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Site Contingency [Line Items]
Reserve	$ 57.7	$ 65.8
MGP Site accrual [Member]
Site Contingency [Line Items]
Reserve	$ 51.7	$ 59.0

XML

COMMITMENTS AND CONTINGENCIES - Guarantees and Indemnifications Narrative (Details) $ in Millions	Jun. 30, 2017 USD ($)
Guarantee Of Financial Obligations Of Npt [Member]
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure (up to)	$ 25
Guarantee Of Npt Letters Of Credit [Member]
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure (up to)	$ 14

XML

COMMITMENTS AND CONTINGENCIES - Schedule of Guarantees and Indemnifications (Details) $ in Millions	Jun. 30, 2017 USD ($)
Eversource Gas Transmission LLC [Member]
Loss Contingencies [Line Items]
Maximum Exposure	$ 185.1
Various [Member]
Loss Contingencies [Line Items]
Maximum Exposure	40.1
Eversource Service and Rocky River Realty Company [Member]
Loss Contingencies [Line Items]
Maximum Exposure	$ 8.5

XML

COMMITMENTS AND CONTINGENCIES - FERC ROE Complaints (Details) - USD ($) $ in Millions				6 Months Ended	15 Months Ended	30 Months Ended
	Jun. 08, 2017	Apr. 14, 2017	Apr. 29, 2016	Jun. 30, 2017	Mar. 26, 2014	Apr. 14, 2017
FERC ROE First, Second and Third Complaints [Member]
Loss Contingencies [Line Items]
Base ROE percentage challenged by complainants	11.14%			11.14%
Percentage of maximum ROE for any incentive project	13.50%
Period of billing of reinstated ROE				60 days
FERC ROE Complaints [Member]
Loss Contingencies [Line Items]
Period of complaint				15 months
Basis point change				10.00%
Estimate of possible loss for each 10 basis point change to base ROE				$ 3.0
FERC ROE Fourth Complaint [Member]
Loss Contingencies [Line Items]
Base ROE percentage of complaint period			10.57%
Maximum percentage cap of ROE for incentive projects			11.74%
Loss contingency, estimate of possible earnings impact				$ 0.0
FERC ROE First Complaint [Member]
Loss Contingencies [Line Items]
Base ROE percentage challenged by complainants		11.14%		10.57%
Percentage of maximum ROE for any incentive project				11.74%		11.74%
Loss contingency, estimate of possible earnings impact				$ 0.0
FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Base ROE percentage of complaint period					10.57%
Percentage of maximum ROE for any incentive project					11.74%
Loss contingency, estimate of possible earnings impact				39.1
The Connecticut Light And Power Company [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible earnings impact				21.4
NSTAR Electric Company [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible earnings impact				8.5
Public Service Company Of New Hampshire [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible earnings impact				3.1
Western Massachusetts Electric Company [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible earnings impact				$ 6.1

XML

COMMITMENTS AND CONTINGENCIES - Schedule of Complaints and Base ROEs (Details) - USD ($) $ in Millions		6 Months Ended	15 Months Ended			16 Months Ended	30 Months Ended	36 Months Ended
	Jun. 08, 2017	Jun. 30, 2017	Jul. 28, 2017	Mar. 26, 2014	Dec. 31, 2012	Oct. 30, 2015	Apr. 14, 2017	Oct. 15, 2014
FERC ROE First Complaint [Member]
Loss Contingencies [Line Items]
Original Base ROE Authorized by FERC at Time of Complaint (in percentage)					11.14%
Base ROE Subsequently Authorized by FERC for first complaint period and prospectively from October 16, 2014 (in percentage)					10.57%
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		$ 0.0
Percentage of maximum ROE for any incentive project		11.74%					11.74%
Customer Refund Payments		$ 38.9
FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Original Base ROE Authorized by FERC at Time of Complaint (in percentage)				11.14%
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		39.1
FERC ALJ Recommendation of base ROE on Second and Third Complaints (Issued March 22, 2016) (in percentage)				9.59%
Percentage of maximum ROE for any incentive project				11.74%
FERC ROE Third Complaint [Member]
Loss Contingencies [Line Items]
Original Base ROE Authorized by FERC at Time of Complaint (in percentage)						11.14%
Base ROE Subsequently Authorized by FERC for first complaint period and prospectively from October 16, 2014 (in percentage)						10.57%
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		0.0
FERC ALJ Recommendation of base ROE on Second and Third Complaints (Issued March 22, 2016) (in percentage)						10.90%
FERC ROE Fourth Complaint [Member]
Loss Contingencies [Line Items]
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		0.0
FERC ROE First, Second and Third Complaints [Member]
Loss Contingencies [Line Items]
Percentage of maximum ROE for any incentive project	13.50%
The Connecticut Light And Power Company [Member] | FERC ROE First Complaint [Member]
Loss Contingencies [Line Items]
Customer Refund Payments		22.4
The Connecticut Light And Power Company [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		21.4
NSTAR Electric Company [Member] | FERC ROE First Complaint [Member]
Loss Contingencies [Line Items]
Customer Refund Payments		8.4
NSTAR Electric Company [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		8.5
Public Service Company Of New Hampshire [Member] | FERC ROE First Complaint [Member]
Loss Contingencies [Line Items]
Customer Refund Payments		2.8
Public Service Company Of New Hampshire [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		3.1
Western Massachusetts Electric Company [Member] | FERC ROE First Complaint [Member]
Loss Contingencies [Line Items]
Customer Refund Payments		5.3
Western Massachusetts Electric Company [Member] | FERC ROE Second Complaint [Member]
Loss Contingencies [Line Items]
Reserve (Pre-Tax and Excluding Interest) as of June 30, 2017 (in millions)		$ 6.1
Minimum [Member] | FERC ROE First, Second and Third Complaints [Member]
Loss Contingencies [Line Items]
Percentage of maximum ROE for any incentive project								11.14%
Maximum [Member] | FERC ROE First, Second and Third Complaints [Member]
Loss Contingencies [Line Items]
Percentage of maximum ROE for any incentive project								13.10%
Subsequent Event [Member] | FERC ROE Fourth Complaint [Member]
Loss Contingencies [Line Items]
Original Base ROE Authorized by FERC at Time of Complaint (in percentage)			10.57%
Base ROE Subsequently Authorized by FERC for first complaint period and prospectively from October 16, 2014 (in percentage)			10.57%

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COMMITMENTS AND CONTINGENCIES - Harbor Civil Action (Details) $ in Millions		3 Months Ended
	Jul. 15, 2016 MW	Jun. 30, 2017 USD ($)
Loss Contingencies [Line Items]
Amount of capacity required for installation of distribution cable (in volts) | MW	0.115
NSTAR Electric Company [Member]
Loss Contingencies [Line Items]
Charge relating to assets previously recognized as capital		$ 4.9
Base rate credit for new cable		$ 17.5
Period of provision of base rate credit		7 years

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PSNH GENERATION ASSET SALE - Narrative (Details) $ in Thousands	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 10, 2015 USD ($) senator
Regulatory Assets [Line Items]
Equity return related to clean air project forgone			$ 25,000
Other current liabilities	$ 591,222	$ 684,914
Accrued Pension and SERP	1,073,510	1,141,514
Public Service Company Of New Hampshire [Member]
Regulatory Assets [Line Items]
Other current liabilities	46,415	43,253
Accrued Pension and SERP	101,143	$ 94,652
Electricity Generation Plant, Non-Nuclear [Member] | Public Service Company Of New Hampshire [Member]
Regulatory Assets [Line Items]
Number of state senators | senator			2
Accounts payable	30,200
Other current liabilities	17,600
Asset retirement obligation	20,600
Accrued Pension and SERP	$ 23,900

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PSNH GENERATION ASSET SALE - PSNH Generation Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Regulatory Assets [Line Items]
Gross Plant	$ 27,733,900	$ 27,060,500
Accumulated Depreciation	(6,969,400)	(6,722,400)
Net Plant	22,071,496	21,350,510
Emission Allowances	286,296	328,721
Public Service Company Of New Hampshire [Member]
Regulatory Assets [Line Items]
Gross Plant	4,301,100	4,197,300
Accumulated Depreciation	(1,290,100)	(1,254,700)
Net Plant	3,118,456	3,039,313
Emission Allowances	150,066	$ 162,354
Electricity Generation Plant, Non-Nuclear [Member] | Public Service Company Of New Hampshire [Member]
Regulatory Assets [Line Items]
Gross Plant	1,183,300
Accumulated Depreciation	(564,100)
Net Plant	619,200
Fuel	94,600
Materials and Supplies	36,300
Emission Allowances	19,500
Total Generation Assets	$ 769,600

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amounts and Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	$ 155,568	$ 155,568
Carrying Amount | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	155,600	155,600
Long-Term Debt	10,382,900	9,603,200
Fair Value | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	158,400	158,300
Long-Term Debt	10,935,800	9,980,500
The Connecticut Light And Power Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	116,200	116,200
The Connecticut Light And Power Company [Member] | Carrying Amount | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	116,200	116,200
Long-Term Debt	2,913,500	2,766,000
The Connecticut Light And Power Company [Member] | Fair Value | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	115,000	114,700
Long-Term Debt	3,247,300	3,049,600
NSTAR Electric Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	43,000	43,000
NSTAR Electric Company [Member] | Carrying Amount | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	43,000	43,000
Long-Term Debt	2,425,900	2,078,100
NSTAR Electric Company [Member] | Fair Value | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	43,400	43,600
Long-Term Debt	2,605,900	2,201,600
Public Service Company Of New Hampshire [Member] | Carrying Amount | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	0	0
Long-Term Debt	1,072,300	1,072,000
Public Service Company Of New Hampshire [Member] | Fair Value | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	0	0
Long-Term Debt	1,122,300	1,109,700
Western Massachusetts Electric Company [Member] | Carrying Amount | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	0	0
Long-Term Debt	566,300	566,500
Western Massachusetts Electric Company [Member] | Fair Value | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred Stock Not Subject to Mandatory Redemption	0	0
Long-Term Debt	$ 602,800	$ 589,000

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ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) - Schedule of Accumulated Other Comprehensive Income (loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
AOCI Attributable to Parent [Roll Forward]
Beginning balance			$ 10,711,734
OCI Before Reclassifications				$ (1,300)
Amounts Reclassified from AOCL				2,700
Net OCI	$ (794)	$ (189)	2,347	1,480
Ending balance	10,885,523		10,885,523
AOCI Attributable to Parent [Member]
AOCI Attributable to Parent [Roll Forward]
Beginning balance			(65,300)	(66,800)
OCI Before Reclassifications			(900)
Amounts Reclassified from AOCL			3,300
Net OCI			2,400
Ending balance	(62,900)	(65,400)	(62,900)	(65,400)
Qualified Cash Flow Hedging Instruments [Member]
AOCI Attributable to Parent [Roll Forward]
Beginning balance			(8,200)	(10,300)
OCI Before Reclassifications			0	0
Amounts Reclassified from AOCL			1,100	1,100
Net OCI			1,100	1,100
Ending balance	(7,100)	(9,200)	(7,100)	(9,200)
Unrealized Gains/(Losses) on Marketable Securities [Member]
AOCI Attributable to Parent [Roll Forward]
Beginning balance			400	(1,900)
OCI Before Reclassifications			2,600	1,300
Amounts Reclassified from AOCL			0	0
Net OCI			2,600	1,300
Ending balance	3,000	(600)	3,000	(600)
Defined Benefit Plans [Member]
AOCI Attributable to Parent [Roll Forward]
Beginning balance			(57,500)	(54,600)
OCI Before Reclassifications			(3,500)	(2,600)
Amounts Reclassified from AOCL			2,200	1,600
Net OCI			(1,300)	(1,000)
Ending balance	$ (58,800)	$ (55,600)	$ (58,800)	$ (55,600)

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COMMON SHARES - Schedule of Common Shares (Details) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Per Value (in dollars per share)	$ 5	$ 5
Authorized (in shares)	380,000,000	380,000,000
Issued (in shares)	333,878,402	333,878,402
The Connecticut Light And Power Company [Member]
Class of Stock [Line Items]
Per Value (in dollars per share)	$ 10	$ 10
Authorized (in shares)	24,500,000	24,500,000
Issued (in shares)	6,035,205	6,035,205
NSTAR Electric Company [Member]
Class of Stock [Line Items]
Per Value (in dollars per share)	$ 1	$ 1
Authorized (in shares)	100,000,000	100,000,000
Issued (in shares)	100	100
Public Service Company Of New Hampshire [Member]
Class of Stock [Line Items]
Per Value (in dollars per share)	$ 1	$ 1
Authorized (in shares)	100,000,000	100,000,000
Issued (in shares)	301	301
Western Massachusetts Electric Company [Member]
Class of Stock [Line Items]
Per Value (in dollars per share)	$ 25	$ 25
Authorized (in shares)	1,072,471	1,072,471
Issued (in shares)	434,653	434,653

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COMMON SHARES - Narrative (Details) - shares	Jun. 30, 2017	Dec. 31, 2016
Equity [Abstract]
Treasury stock (in shares)	16,992,594	16,992,594
Common stock outstanding (in shares)	316,885,808	316,885,808

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COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Equity [Abstract]
Net income attributable to noncontrolling interests	$ 1,900	$ 1,900	$ 3,800	$ 3,800
Noncontrolling Interest - Preferred Stock of Subsidiaries	$ 155,568		$ 155,568		$ 155,568

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EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Antidilutive share awards excluded from computation (in shares)	0	0	0	0

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EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income Attributable to Common Shareholders	$ 230,749	$ 203,649	$ 490,207	$ 447,803
Weighted Average Common Shares Outstanding:
Basic (in shares)	317,391,365	317,785,495	317,427,258	317,651,319
Dilutive Effect (in shares)	555,829	691,204	608,606	827,557
Diluted (in shares)	317,947,194	318,476,699	318,035,864	318,478,876
Basic and Diluted EPS (in dollars per share)	$ 0.72	$ 0.64	$ 1.54	$ 1.41

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SEGMENT INFORMATION - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($) segment company
Segment Reporting Information [Line Items]
Number of companies that transmit hydro electricity imported from The Hydro-Quebec System in Canada | company	2
Amount of natural gas transmission purchased from Enbridge by Yankee Gas and NSTAR Gas | $	$ 62.5
The Connecticut Light And Power Company [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	1
NSTAR Electric Company [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	1
Public Service Company Of New Hampshire [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	1
Western Massachusetts Electric Company [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	1

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SEGMENT INFORMATION - Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Operating Revenues	$ 1,762,811	$ 1,767,184	$ 3,867,946	$ 3,822,819
Depreciation and Amortization	(182,100)	(167,800)	(392,900)	(362,800)
Other Operating Expenses	(1,125,000)	(1,176,000)	(2,510,300)	(2,548,000)
Operating Income	455,687	423,422	964,707	911,958
Interest Expense	(107,329)	(100,492)	(210,758)	(198,703)
Other Income/(Loss), Net	21,543	8,038	35,120	10,049
Net Income Attributable to Common Shareholders	230,749	203,649	490,207	447,803
Cash Flows Used for Investments in Plant			1,146,952	869,168
Assets	32,658,840		32,658,840		$ 32,053,173
Operating Segments [Member] | Electric Distribution [Member]
Segment Reporting Information [Line Items]
Operating Revenues	1,275,900	1,303,100	2,677,000	2,739,200
Depreciation and Amortization	(105,400)	(98,400)	(235,200)	(226,100)
Other Operating Expenses	(925,300)	(994,400)	(1,967,300)	(2,083,300)
Operating Income	245,200	210,300	474,500	429,800
Interest Expense	(49,400)	(47,600)	(97,600)	(95,600)
Other Income/(Loss), Net	2,500	6,300	7,400	6,300
Net Income Attributable to Common Shareholders	121,900	102,800	236,000	211,300
Cash Flows Used for Investments in Plant			515,000	362,000
Assets	18,663,700		18,663,700		18,367,500
Operating Segments [Member] | Natural Gas Distribution [Member]
Segment Reporting Information [Line Items]
Operating Revenues	186,000	180,400	589,600	523,000
Depreciation and Amortization	(17,900)	(16,800)	(39,600)	(32,700)
Other Operating Expenses	(150,000)	(141,100)	(439,600)	(374,500)
Operating Income	18,100	22,500	110,400	115,800
Interest Expense	(10,900)	(10,400)	(21,500)	(20,500)
Other Income/(Loss), Net	100	100	400	(200)
Net Income Attributable to Common Shareholders	4,500	8,000	55,300	58,900
Cash Flows Used for Investments in Plant			139,700	105,000
Assets	3,337,000		3,337,000		3,303,800
Operating Segments [Member] | Electric Transmission [Member]
Segment Reporting Information [Line Items]
Operating Revenues	324,600	302,500	641,500	585,800
Depreciation and Amortization	(51,400)	(45,600)	(102,000)	(90,700)
Other Operating Expenses	(94,900)	(82,500)	(184,800)	(155,500)
Operating Income	178,300	174,400	354,700	339,600
Interest Expense	(28,900)	(27,400)	(57,000)	(55,300)
Other Income/(Loss), Net	6,800	5,300	11,700	7,900
Net Income Attributable to Common Shareholders	96,400	92,500	190,600	178,200
Cash Flows Used for Investments in Plant			415,600	349,100
Assets	9,003,400		9,003,400		8,751,500
Operating Segments [Member] | Other [Member]
Segment Reporting Information [Line Items]
Operating Revenues	217,000	211,100	453,400	425,300
Depreciation and Amortization	(7,900)	(7,500)	(17,200)	(14,400)
Other Operating Expenses	(195,900)	(188,100)	(412,500)	(385,400)
Operating Income	13,200	15,500	23,700	25,500
Interest Expense	(21,600)	(16,600)	(41,300)	(30,700)
Other Income/(Loss), Net	257,600	219,000	586,500	524,400
Net Income Attributable to Common Shareholders	249,000	220,700	571,200	523,100
Cash Flows Used for Investments in Plant			76,700	53,100
Assets	14,657,100		14,657,100		14,493,100
Eliminations [Member]
Segment Reporting Information [Line Items]
Operating Revenues	(240,700)	(229,900)	(493,600)	(450,500)
Depreciation and Amortization	500	500	1,100	1,100
Other Operating Expenses	241,100	230,100	493,900	450,700
Operating Income	900	700	1,400	1,300
Interest Expense	3,500	1,500	6,600	3,400
Other Income/(Loss), Net	(245,500)	(222,600)	(570,900)	(528,400)
Net Income Attributable to Common Shareholders	(241,100)	$ (220,400)	(562,900)	(523,700)
Cash Flows Used for Investments in Plant			0	$ 0
Assets	$ (13,002,400)		$ (13,002,400)		$ (12,862,700)