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RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES
 12 Months Ended
Dec. 31, 2023
Rate Reduction Bonds and Variable Interest Entity [Abstract]  
RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES
Rate Reduction Bonds: In May 2018, PSNH Funding, a wholly-owned subsidiary of PSNH, issued $635.7 million of securitized RRBs in multiple tranches with a weighted average interest rate of 3.66 percent, and final maturity dates ranging from 2026 to 2035.  The RRBs are expected to be repaid by February 1, 2033. RRB payments consist of principal and interest and are paid semi-annually, beginning on February 1, 2019. The RRBs were issued pursuant to a finance order issued by the NHPUC in January 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.

The proceeds were used by PSNH Funding to purchase PSNH’s stranded cost asset-recovery property, including its vested property right to bill, collect and adjust a non-bypassable stranded cost recovery charge from PSNH’s retail customers. The collections are used to pay principal, interest and other costs in connection with the RRBs. The RRBs are secured by the stranded cost asset-recovery property. Cash collections from the stranded cost recovery charges and funds on deposit in trust accounts are the sole source of funds to satisfy the debt obligation. PSNH is not the owner of the RRBs, and PSNH Funding’s assets and revenues are not available to pay PSNH’s creditors. The RRBs are non-recourse senior secured obligations of PSNH Funding and are not insured or guaranteed by PSNH or Eversource Energy.

PSNH Funding was formed solely to issue RRBs to finance PSNH's unrecovered remaining costs associated with the divestiture of its generation assets. PSNH Funding is considered a VIE primarily because the equity capitalization is insufficient to support its operations. PSNH has the power to direct the significant activities of the VIE and is most closely associated with the VIE as compared to other interest holders. Therefore, PSNH is considered the primary beneficiary and consolidates PSNH Funding in its consolidated financial statements. The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:
(Millions of Dollars)As of December 31,
PSNH Balance Sheets:20232022
Restricted Cash - Current Portion (included in Current Assets)$30.0 $32.4 
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)3.2 3.2 
Securitized Stranded Cost (included in Regulatory Assets)392.5 435.7 
Other Regulatory Liabilities (included in Regulatory Liabilities)5.3 6.0 
Accrued Interest (included in Other Current Liabilities)6.3 6.9 
Rate Reduction Bonds - Current Portion43.2 43.2 
Rate Reduction Bonds - Long-Term Portion367.3 410.5 
(Millions of Dollars)
PSNH Income Statements:
For the Years Ended December 31,
202320222021
Amortization of RRB Principal (included in Amortization of Regulatory (Liabilities)/Assets, Net)$43.2 $43.2 $43.2 
Interest Expense on RRB Principal (included in Interest Expense)15.7 17.0 18.4 

Estimated principal payments on RRBs as of December 31, 2023, is summarized annually through 2028 and thereafter as follows:
(Millions of Dollars)20242025202620272028ThereafterTotal
PSNH$43.2 $43.2 $43.2 $43.2 $43.2 $194.5 $410.5 

Variable Interest Entities - Other: The Company's variable interests outside of the consolidated group include contracts that are required by regulation and provide for regulatory recovery of contract costs and benefits through customer rates.  Eversource, CL&P and NSTAR Electric hold variable interests in VIEs through agreements with certain entities that own single renewable energy or peaking generation power plants, with other independent power producers and with transmission businesses.  Eversource, CL&P and NSTAR Electric do not control the activities that are economically significant to these VIEs or provide financial or other support to these VIEs.  Therefore, Eversource, CL&P and NSTAR Electric do not consolidate these VIEs.