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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

The activity in the allowance for uncollectible accounts by portfolio segment is as follows:


	As of December 31, 2020
	Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other Receivables		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale and Other Receivables		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other Receivables		Total Allowance		Total Allowance
Beginning Balance	$	143.3	$	81.5	$	224.8	$	80.1	$	17.2	$	97.3	$	43.9	$	31.5	$	75.4	$	10.5
ASU 2016-13 Implementation Impact on January 1, 2020	21.6		2.2		23.8		21.3		0.9		22.2		(1.6)		0.3		(1.3)		0.3
Increase due to CMA asset acquisition	—		24.2		24.2		—		—		—		—		—		—		—
Uncollectible Expense (1)	—		53.5		53.5		—		12.9		12.9		—		15.3		15.3		5.2
Uncollectible Costs Deferred (2)	43.1		53.9		97.0		38.2		10.8		49.0		(1.7)		26.4		24.7		7.4
Write-Offs	(14.7)		(63.3)		(78.0)		(11.9)		(17.8)		(29.7)		(0.9)		(26.3)		(27.2)		(6.9)
Recoveries Collected	1.5		12.1		13.6		1.4		4.3		5.7		—		4.7		4.7		0.7
Ending Balance	$	194.8	$	164.1	$	358.9	$	129.1	$	28.3	$	157.4	$	39.7	$	51.9	$	91.6	$	17.2

(1) Uncollectible expense associated with customer and other accounts receivable is included in Operations and Maintenance expense on the statements of income. For the years ended December 31, 2019 and 2018, uncollectible expense included in Operations and Maintenance Expense was $63.4 million and $61.3 million for Eversource, $15.9 million and $15.8 million for CL&P, $25.1 million and $22.3 million for NSTAR Electric and $6.7 million and $6.4 million for PSNH, respectively.

(2) The current period provision for expected credit losses is deferred as a regulatory cost on the balance sheets, as this amount is ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to COVID-19.

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,
	2020								2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Fuel	$	38.2	$	—	$	—	$	—	$	26.7	$	—	$	—	$	—
Materials and Supplies	151.3		57.9		62.1		22.5		132.9		50.7		54.7		18.5
RECs	76.1		—		71.8		4.3		75.9		—		69.4		6.5
Total	$	265.6	$	57.9	$	133.9	$	26.8	$	235.5	$	50.7	$	124.1	$	25.0

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)	2020		2019		2018
Eversource - Natural Gas and Fuel	$	464.2	$	462.1	$	442.6
PSNH - Fuel (1)	—		—		7.9

(1) 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)	2020			2019			2018
Borrowed Funds	$	23.7		$	25.6		$	19.7
Equity Funds	42.0			45.0			44.0
Total AFUDC	$	65.7		$	70.6		$	63.7
Average AFUDC Rate	5.0		%	5.4		%	4.9		%


	For the Years Ended December 31,
	2020									2019									2018
(Millions of Dollars, except percentages)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Borrowed Funds	$	6.6		$	9.1		$	2.1		$	7.1		$	10.4		$	2.8		$	6.3		$	7.8		$	1.3
Equity Funds	13.8			21.5			4.2			13.2			19.8			3.4			12.2			15.6			—
Total AFUDC	$	20.4		$	30.6		$	6.3		$	20.3		$	30.2		$	6.2		$	18.5		$	23.4		$	1.3
Average AFUDC Rate	5.9		%	5.7		%	4.7		%	6.3		%	5.7		%	4.6		%	5.8		%	5.0		%	0.7		%

Components of 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)	2020		2019		2018
Pension, SERP and PBOP Non-Service Income Components	$	44.4	$	31.3	$	60.8
AFUDC Equity	42.0		45.0		44.0
Equity in Earnings of Unconsolidated Affiliates (1)	14.2		42.2		3.8
Investment Income/(Loss)	1.1		0.8		(4.0)
Interest Income	4.8		12.8		18.1
Gains on Sales of Property	1.8		0.3		5.1
Other	0.3		0.4		0.6
Total Other Income, Net	$	108.6	$	132.8	$	128.4


	For the Years Ended December 31,
	2020						2019						2018
(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	$	3.8	$	29.3	$	7.0	$	0.5	$	23.5	$	4.9	$	9.5	$	36.0	$	9.9
AFUDC Equity	13.8		21.5		4.2		13.2		19.8		3.4		12.2		15.6		—
Equity in Earnings of Unconsolidated Affiliates	—		0.4		—		0.1		0.7		—		0.1		0.7		—
Investment Income/(Loss)	1.1		(0.8)		0.1		2.3		(0.4)		0.3		(3.0)		(0.5)		(0.8)
Interest Income	2.0		0.9		2.4		1.5		0.7		10.5		3.7		0.8		14.1
Gains on Sales of Property	—		0.3		—		—		0.1		—		—		0.5		4.4
Other	0.1		0.4		0.1		(0.1)		0.2		0.1		0.2		—		0.1
Total Other Income, Net	$	20.8	$	52.0	$	13.8	$	17.5	$	44.6	$	19.2	$	22.7	$	53.1	$	27.7

(1) Equity in earnings of unconsolidated affiliates includes other-than-temporary impairments of $2.8 million related to a write-off of an investment within a renewable energy fund, and $32.9 million of the Access Northeast project investment for the years ended December 31, 2020 and 2018, respectively. See Note 6, "Investments in Unconsolidated Affiliates," for further information. Equity in earnings includes $2.4 million of primarily realized gains, and $20.4 million and $17.6 million of pre-tax unrealized gains, for the years ended December 31, 2020, 2019 and 2018, respectively, associated with an equity method investment in a renewable energy fund.

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)	2020		2019		2018
Eversource	$	170.6	$	163.1	$	161.9
CL&P	149.9		141.1		141.4

Supplemental Cash Flow Information


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
	2020		2019		2018
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	518.0	$	532.4	$	503.2
Income Taxes	48.9		56.0		158.8
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	367.2		379.4		389.3


	As of and For the Years Ended December 31,
	2020						2019						2018
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	149.0	$	129.4	$	54.5	$	144.6	$	121.9	$	56.9	$	149.7	$	122.1	$	40.5
Income Taxes	10.9		110.7		34.2		80.6		77.9		3.4		66.1		120.0		27.3
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	101.8		103.2		33.3		111.3		116.4		49.9		106.1		116.5		35.1

Cash and Cash Equivalents as Reported on the Balance Sheet

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


	As of December 31,
	2020								2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash as reported on the Balance Sheets	$	106.6	$	90.8	$	0.1	$	0.1	$	15.4	$	—	$	0.1	$	0.4
Restricted cash included in:
Special Deposits	73.6		8.7		17.2		36.8		52.5		4.6		6.2		32.5
Marketable Securities	41.2		0.3		0.1		0.6		46.0		0.4		—		0.6
Other Long-Term Assets	43.6		—		—		2.1		3.2		—		—		3.2
Cash and Restricted Cash reported on the Statements of Cash Flows	$	265.0	$	99.8	$	17.4	$	39.6	$	117.1	$	5.0	$	6.3	$	36.7