SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Provision for uncollectible accounts and uncollectible hardship accounts

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



	Total Provision for Uncollectible Accounts				Uncollectible Hardship
	As of December 31,				As of December 31,
(Millions of Dollars)	2018		2017		2018		2017
Eversource	$	212.7	$	195.7	$	131.5	$	122.5
CL&P	88.0		78.9		71.9		65.5
NSTAR Electric	74.5		69.7		42.5		40.3
PSNH	11.1		10.5		—		—

In accordance with new revenue accounting guidance, uncollectible expense associated with customers' accounts receivable included in Operations and Maintenance expense on the statements of income is as follows:



	For the Years Ended December 31,
(Millions of Dollars)	2018		2017		2016
Eversource	$	61.3	$	44.5	$	69.5
CL&P	15.8		5.3		17.6
NSTAR Electric	22.3		21.3		31.7
PSNH	6.4		6.7		7.3

Schedule of Utility Inventory

The carrying amounts of fuel, materials and supplies, and RECs, which are included in Current Assets on the balance sheets, were as follows:



	As of December 31,
	2018								2017
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Fuel	$	33.1	$	—	$	—	$	—	$	29.7	$	—	$	—	$	—
Materials and Supplies	126.1		44.5		48.6		24.3		117.1		44.4		45.1		18.5
RECs	78.8		—		65.6		13.2		76.3		4.0		50.4		21.8
Total - Current	$	238.0	$	44.5	$	114.2	$	37.5	$	223.1	$	48.4	$	95.5	$	40.3

Costs related to fuel and natural gas

Costs related to fuel and natural gas included in Purchased Power, Fuel and Transmission on the statements of income were as follows:



	For the Years Ended December 31,
(Millions of Dollars)	2018		2017		2016
Eversource - Natural Gas and Fuel	$	442.6	$	432.5	$	372.2
PSNH - Fuel	7.9		43.4		45.0

PSNH completed the sale of its generation assets in 2018.

Weighted-average AFUDC rates

AFUDC costs and the weighted-average AFUDC rates were as follows:



Eversource	For the Years Ended December 31,
(Millions of Dollars, except percentages)	2018			2017			2016
Borrowed Funds	$	19.7		$	12.5		$	10.8
Equity Funds	44.0			34.4			26.2
Total AFUDC	$	63.7		$	46.9		$	37.0
Average AFUDC Rate	4.9		%	5.1		%	4.4		%



	For the Years Ended December 31,
	2018									2017									2016
(Millions of Dollars, except percentages)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Borrowed Funds	$	6.3		$	7.8		$	1.3		$	5.1		$	4.8		$	0.7		$	3.3		$	5.3		$	0.8
Equity Funds	12.2			15.6			—			12.1			10.2			—			6.3			10.2			0.3
Total AFUDC	$	18.5		$	23.4		$	1.3		$	17.2		$	15.0		$	0.7		$	9.6		$	15.5		$	1.1
Average AFUDC Rate	5.8		%	5.0		%	0.7		%	6.2		%	5.0		%	0.7		%	4.7		%	3.2		%	1.0		%

Other Income, Net

The components of Other Income, Net on the statements of income were as follows:



Eversource	For the Years Ended December 31,
(Millions of Dollars)	2018			2017		2016
Pension, SERP and PBOP Non-Service Income Components ⁽¹⁾	$	60.8		$	29.9	$	18.6
AFUDC Equity	44.0			34.4		26.2
Equity in Earnings, Net of Impairment ⁽²⁾	3.8			27.4		0.2
Investment Income/(Loss)	(4.0		)	7.5		8.5
Interest Income ⁽³⁾	18.1			8.3		11.0
Gains on Sales of Property	5.1			—		—
Other	0.6			0.4		—
Total Other Income, Net ⁽¹⁾	$	128.4		$	107.9	$	64.5



	For the Years Ended December 31,
	2018									2017						2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			CL&P		NSTAR Electric		PSNH		CL&P			NSTAR Electric			PSNH
Pension, SERP and PBOP Non-Service Income Components ⁽¹⁾	$	9.5		$	36.0		$	9.9		$	1.8	$	19.2	$	5.9	$	0.7		$	10.5		$	6.2
AFUDC Equity	12.2			15.6			—			12.1		10.2		—		6.3			10.2			0.3
Equity in Earnings	0.1			0.7			—			—		0.3		—		0.1			0.3			—
Investment Income/(Loss)	(3.0		)	(0.5		)	(0.8		)	4.5		2.6		1.6		(1.5		)	(0.3		)	(0.7		)
Interest Income ⁽³⁾	3.7			0.8			14.1			4.6		1.8		2.2		8.6			0.6			1.8
Gain on Sale of Property	—			0.5			4.4			—		—		—		—			—			—
Other	0.2			—			0.1			—		—		0.1		—			—			—
Total Other Income, Net ⁽¹⁾	$	22.7		$	53.1		$	27.7		$	23.0	$	34.1	$	9.8	$	14.2		$	21.3		$	7.6

⁽¹⁾

As a result of the adoption of new accounting guidance, the non-service related components of pension, SERP and PBOP benefit costs are presented as non-operating income and recorded in Other Income, Net on the statements of income. The 2017 and 2016 amounts, which were previously presented within Operations and Maintenance expense on the statements of income, have been retrospectively presented within Other Income, Net for the years ended December 31, 2017 and 2016. Eversource elected the practical expedient in the accounting guidance that allows the Company to use the amounts disclosed in its Pension Benefits and Postretirement Benefits Other Than Pension footnote for the prior period presentations as the estimation basis for applying the retrospective presentation requirements.

⁽²⁾For the year ended December 31, 2018, equity in earnings, net of impairment, of unconsolidated affiliates includes an other-than-temporary impairment of $32.9 million in the Access Northeast project investment. See Note 1K, "Summary of Significant Accounting Policies - Investments," for further information. Equity in earnings includes $17.6 million and $9.7 million of unrealized gains in 2018 and 2017, respectively, and $1.7 million of unrealized losses in 2016 associated with an equity method investment in a renewable energy fund.

⁽³⁾See Note 2, "Regulatory Accounting," for interest income recognized in 2018 for the equity return component of carrying charges on storm costs at PSNH.

Other Taxes

These gross receipts taxes are recorded separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of income as follows:



	For the Years Ended December 31,
(Millions of Dollars)	2018		2017		2016
Eversource	$	161.9	$	157.4	$	162.7
CL&P	141.4		137.5		145.2

Supplemental Cash Flow Information



Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
Eversource (Millions of Dollars)	2018		2017		2016
Cash Paid/(Received) During the Year for:
Interest, Net of Amounts Capitalized	$	503.2	$	419.1	$	398.1
Income Taxes	158.8		30.8		(135.5		)
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	435.9		379.5		301.5



	As of and For the Years Ended December 31,
	2018						2017						2016
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P			NSTAR Electric		PSNH
Cash Paid/(Received) During the Year for:
Interest, Net of Amounts Capitalized	$	149.7	$	122.1	$	40.5	$	144.6	$	124.6	$	45.9	$	143.3		$	112.9	$	46.5
Income Taxes	66.1		120.0		27.3		68.8		95.5		26.1		(73.9		)	66.0		(36.0		)
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	106.1		116.5		81.7		132.5		116.5		44.4		116.2			87.0		37.9

Cash and cash equivalents as reported on the balance sheet

The following table reconciles cash and cash equivalents as reported on the balance sheets to the cash, cash equivalents, and restricted cash as reported on the statements of cash flows:



	As of December 31,
	2018								2017
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash and Cash Equivalents as reported on the Balance Sheets	$	108.1	$	87.7	$	1.6	$	1.4	$	38.2	$	6.0	$	1.8	$	0.9
Restricted cash included in:
Prepayments and Other Current Assets	72.1		3.5		13.0		47.5		24.4		3.1		12.8		0.5
Marketable Securities	25.9		0.4		0.1		0.6		23.3		0.5		0.1		0.8
Other Long-Term Assets	3.2		—		—		3.2		—		—		—		—
Cash, Cash Equivalents, and Restricted Cash reported on the Statements of Cash Flows	$	209.3	$	91.6	$	14.7	$	52.7	$	85.9	$	9.6	$	14.7	$	2.2