XML 38 R18.htm IDEA: XBRL DOCUMENT v3.21.2
FAIR VALUE OF FINANCIAL INSTRUMENTS
9 Months Ended
Sep. 30, 2021
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, Long-Term Debt and Rate Reduction Bonds:  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 and RRB 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 table below are classified as Level 2 within the fair value hierarchy.  Carrying amounts and estimated fair values are as follows:
 EversourceCL&PNSTAR ElectricPSNH
(Millions of Dollars)Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
As of September 30, 2021:        
Preferred Stock Not Subject to Mandatory Redemption
$155.6 $165.5 $116.2 $121.4 $43.0 $44.1 $— $— 
Long-Term Debt18,219.2 19,810.9 4,215.1 4,865.2 3,984.7 4,494.3 1,163.6 1,228.9 
Rate Reduction Bonds496.9 555.8 — — — — 496.9 555.8 
As of December 31, 2020:        
Preferred Stock Not Subject to Mandatory Redemption
$155.6 $169.1 $116.2 $123.4 $43.0 $45.7 $— $— 
Long-Term Debt16,179.1 18,420.1 3,914.8 4,800.9 3,643.2 4,294.0 1,099.1 1,207.0 
Rate Reduction Bonds540.1 603.4 — — — — 540.1 603.4 

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.