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 results of PSNH's generation facilities and NSTAR Electric's solar power facilities. 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. On December 4, 2017, Eversource acquired Aquarion, which was considered to be a new operating segment, water. Financial statement results, however, were not considered material as a result of a short period of ownership by Eversource, and were not reported separately. Therefore, the results of the water operating segment have been included in Other for the year ended December 31, 2017.

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, 4) the results of Aquarion's water business from the date of the acquisition on December 4, 2017 through December 31, 2017; and 5) 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 certain natural 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.

Each of Eversource's subsidiaries, including CL&P, NSTAR Electric and PSNH, has one reportable segment.

The Electric Transmission segment includes a reduction to Operations and Maintenance expense of $27.5 million in 2016 for costs incurred in previous years that was recovered in transmission rates over the period June 1, 2016 through May 31, 2017. These costs were associated with the merger of Northeast Utilities and NSTAR.

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 segment information is as follows:



	For the Year Ended December 31, 2017
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	5,542.9		$	947.3		$	1,301.7		$	946.9		$	(986.8	)	$	7,752.0
Depreciation and Amortization	(542.6		)	(72.9		)	(209.4		)	(41.1		)	2.2			(863.8		)
Other Operating Expenses	(4,046.0		)	(713.5		)	(382.6		)	(814.6		)	986.7			(4,970.0		)
Operating Income	954.3			160.9			709.7			91.2			2.1			1,918.2
Interest Expense	(186.3		)	(43.1		)	(115.1		)	(93.1		)	15.8			(421.8		)
Interest Income	7.3			0.1			1.8			15.8			(16.7		)	8.3
Other Income, Net	15.0			0.9			27.1			1,112.7			(1,086.0		)	69.7
Income Tax Expense	(288.3		)	(44.2		)	(228.7		)	(17.6		)	(0.1		)	(578.9		)
Net Income	502.0			74.6			394.8			1,109.0			(1,084.9		)	995.5
Net Income Attributable to Noncontrolling Interests	(4.6		)	—			(2.9		)	—			—			(7.5		)
Net Income Attributable to Common Shareholders	$	497.4		$	74.6		$	391.9		$	1,109.0		$	(1,084.9	)	$	988.0
Total Assets (as of)	$	19,250.4		$	3,595.2		$	9,401.2		$	18,403.8		$	(14,430.2	)	$	36,220.4
Cash Flows Used for Investments in Plant	$	1,020.7		$	298.2		$	867.6		$	161.6		$	—		$	2,348.1



	For the Year Ended December 31, 2016
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	5,594.3		$	857.7		$	1,210.0		$	870.4		$	(893.3	)	$	7,639.1
Depreciation and Amortization	(504.7		)	(65.3		)	(185.8		)	(33.5		)	2.2			(787.1		)
Other Operating Expenses	(4,155.1		)	(628.9		)	(321.8		)	(778.1		)	891.8			(4,992.1		)
Operating Income	934.5			163.5			702.4			58.8			0.7			1,859.9
Interest Expense	(193.1		)	(41.3		)	(110.0		)	(63.5		)	6.9			(401.0		)
Interest Income	10.0			0.1			1.2			7.0			(7.3		)	11.0
Other Income, Net	4.8			0.6			18.3			1,020.1			(1,008.9		)	34.9
Income Tax (Expense)/Benefit	(288.8		)	(45.2		)	(238.2		)	16.5			0.7			(555.0		)
Net Income	467.4			77.7			373.7			1,038.9			(1,007.9		)	949.8
Net Income Attributable to Noncontrolling Interests	(4.6		)	—			(2.9		)	—			—			(7.5		)
Net Income Attributable to Common Shareholders	$	462.8		$	77.7		$	370.8		$	1,038.9		$	(1,007.9	)	$	942.3
Total Assets (as of)	$	18,367.5		$	3,303.8		$	8,751.5		$	14,493.1		$	(12,862.7	)	$	32,053.2
Cash Flows Used for Investments in Plant	$	812.6		$	255.3		$	801.0		$	108.0		$	—		$	1,976.9



	For the Year Ended December 31, 2015
Eversource (Millions of Dollars)	Electric Distribution			Natural Gas Distribution			Electric Transmission			Other			Eliminations			Total
Operating Revenues	$	5,903.6		$	995.5		$	1,069.1		$	863.6		$	(877.0	)	$	7,954.8
Depreciation and Amortization	(425.2		)	(70.5		)	(165.6		)	(29.0		)	2.1			(688.2		)
Other Operating Expenses	(4,470.2		)	(776.7		)	(314.9		)	(817.9		)	877.3			(5,502.4		)
Operating Income	1,008.2			148.3			588.6			16.7			2.4			1,764.2
Interest Expense	(186.3		)	(36.9		)	(105.8		)	(48.0		)	4.6			(372.4		)
Interest Income	5.7			0.1			1.6			4.4			(5.1		)	6.7
Other Income, Net	7.2			0.8			14.5			977.8			(972.8		)	27.5
Income Tax (Expense)/Benefit	(322.8		)	(40.1		)	(191.6		)	14.5			—			(540.0		)
Net Income	512.0			72.2			307.3			965.4			(970.9		)	886.0
Net Income Attributable to Noncontrolling Interests	(4.7		)	—			(2.8		)	—			—			(7.5		)
Net Income Attributable to Common Shareholders	$	507.3		$	72.2		$	304.5		$	965.4		$	(970.9	)	$	878.5
Cash Flows Used for Investments in Plant	$	718.9		$	182.2		$	749.1		$	73.9		$	—		$	1,724.1