SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

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



	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
Three Months Ended
Beginning Balance	$	175.5		$	94.5		$	270.0		$	116.3		$	20.4		$	136.7		$	34.6		$	34.1		$	68.7		$	11.8
Uncollectible Expense ⁽¹⁾	—			10.5			10.5			—			3.8			3.8			—			4.5			4.5			0.8
Uncollectible Costs Deferred ⁽²⁾	10.1			20.4			30.5			11.2			4.9			16.1			(1.3		)	10.4			9.1			3.2
Write-Offs	(7.3		)	(11.8		)	(19.1		)	(2.6		)	(4.6		)	(7.2		)	(0.2		)	(6.3		)	(6.5		)	(2.0		)
Recoveries Collected	0.4			2.7			3.1			0.3			1.1			1.4			—			1.0			1.0			0.2
Ending Balance	$	178.7		$	116.3		$	295.0		$	125.2		$	25.6		$	150.8		$	33.1		$	43.7		$	76.8		$	14.0

Nine Months Ended
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
Uncollectible Expense ⁽¹⁾	—			31.1			31.1			—			10.0			10.0			—			11.3			11.3			2.1
Uncollectible Costs Deferred ⁽²⁾	24.9			41.5			66.4			32.7			8.3			41.0			(8.4		)	17.3			8.9			5.6
Write-Offs	(12.3		)	(49.3		)	(61.6		)	(10.0		)	(14.0		)	(24.0		)	(0.8		)	(20.5		)	(21.3		)	(5.0		)
Recoveries Collected	1.2			9.3			10.5			1.1			3.2			4.3			—			3.8			3.8			0.5
Ending Balance	$	178.7		$	116.3		$	295.0		$	125.2		$	25.6		$	150.8		$	33.1		$	43.7		$	76.8		$	14.0

⁽¹⁾Uncollectible expense associated with customer and other accounts receivable is included in Operations and Maintenance expense on the statements of income. For the three and nine months ended September 30, 2019, uncollectible expense included in Operations and Maintenance Expense was $14.9 million and $46.4 million for Eversource, $4.5 million and $12.1 million for CL&P, $7.0 million and $18.6 million for NSTAR Electric and $1.8 million and $5.0 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.

Components of Other Income, Net

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



	For the Three Months Ended
	September 30, 2020										September 30, 2019
(Millions of Dollars)	Eversource			CL&P		NSTAR Electric			PSNH		Eversource			CL&P			NSTAR Electric			PSNH
Pension, SERP and PBOP Non-Service Income Components	$	11.0		$	0.9	$	7.2		$	1.8	$	10.1		$	1.7		$	5.6		$	1.4
AFUDC Equity	10.3			3.5		5.5			0.9		10.5			3.6			5.6			1.0
Equity in Earnings of Unconsolidated Affiliates ⁽¹⁾	3.9			—		0.1			—		6.1			—			0.2			—
Investment Income/(Loss)	1.0			1.3		(0.2		)	0.2		(2.8		)	(0.8		)	(0.9		)	(0.3		)
Interest Income	1.5			0.2		0.1			1.2		2.9			0.3			0.1			2.5
Gain on Sale of Property	1.5			—		—			—		—			—			—			—
Other	—			—		0.1			—		0.2			—			0.1			—
Total Other Income, Net	$	29.2		$	5.9	$	12.8		$	4.1	$	27.0		$	4.8		$	10.7		$	4.6

	For the Nine Months Ended
	September 30, 2020										September 30, 2019
(Millions of Dollars)	Eversource			CL&P		NSTAR Electric			PSNH		Eversource			CL&P			NSTAR Electric			PSNH
Pension, SERP and PBOP Non-Service Income Components	$	34.3		$	3.0	$	22.2		$	5.2	$	23.2		$	0.1		$	18.0		$	3.5
AFUDC Equity	31.8			11.4		15.8			3.5		34.5			9.4			14.7			2.1
Equity in Earnings of Unconsolidated Affiliates ⁽¹⁾	13.8			—		0.4			—		37.0			0.2			0.6			—
Investment (Loss)/Income	(1.5		)	—		(1.5		)	0.1		(2.3		)	0.9			(1.5		)	—
Interest Income	3.3			1.8		0.7			2.0		10.8			1.1			0.5			9.0
Gain on Sale of Property	1.8			—		0.3			—		0.2			—			—			—
Other	0.1			0.1		0.3			0.1		0.4			(0.1		)	0.2			—
Total Other Income, Net	$	83.6		$	16.3	$	38.2		$	10.9	$	103.8		$	11.6		$	32.5		$	14.6


⁽¹⁾	Equity in Earnings of Unconsolidated Affiliates includes $2.4 million of primarily realized gains associated with an investment in a renewable energy fund for the nine months ended September 30, 2020. For the nine months ended September 30, 2019, unrealized gains on this investment totaled $20.4 million.

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 Three Months Ended				For the Nine Months Ended
(Millions of Dollars)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Eversource	$	48.4	$	42.6	$	129.1	$	124.0
CL&P	45.6		39.8		114.2		107.8

Non-cash Investing Activities

Non-cash investing activities include plant additions included in Accounts Payable as follows:



(Millions of Dollars)	As of September 30, 2020		As of September 30, 2019
Eversource	$	357.4	$	317.8
CL&P	97.8		107.6
NSTAR Electric	92.6		79.0
PSNH	50.0		35.8

Reconciliation of Cash Balances to Cash and Restricted Cash

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



	As of September 30, 2020								As of December 31, 2019
(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	$	730.0	$	8.2	$	0.1	$	0.8	$	15.4	$	—	$	0.1	$	0.4
Restricted cash included in:
Special Deposits	51.3		8.6		12.2		19.1		52.5		4.6		6.2		32.5
Marketable Securities	45.6		0.4		0.1		0.6		46.0		0.4		—		0.6
Other Long-Term Assets	2.1		—		—		2.1		3.2		—		—		3.2
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows	$	829.0	$	17.2	$	12.4	$	22.6	$	117.1	$	5.0	$	6.3	$	36.7