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EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The following tables provide information on the plan benefit obligations, fair values of plan assets, and funded status:


	Pension and SERP
	As of December 31,
	2020								2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Change in Benefit Obligation:
Benefit Obligation as of Beginning of Year	$	(6,321.7)	$	(1,331.3)	$	(1,397.3)	$	(692.6)	$	(5,520.0)	$	(1,160.4)	$	(1,236.5)	$	(610.7)
Service Cost	(76.2)		(21.8)		(15.4)		(8.2)		(67.7)		(18.0)		(14.6)		(7.1)
Interest Cost	(177.8)		(37.3)		(38.6)		(19.4)		(219.0)		(45.7)		(49.0)		(24.0)
Actuarial Loss	(658.2)		(152.3)		(139.5)		(62.1)		(815.3)		(176.6)		(181.0)		(84.5)
Benefits Paid - Pension	279.3		63.6		59.4		33.5		273.0		60.2		67.1		30.3
Benefits Paid - Lump Sum	23.4		—		13.1		—		20.0		—		12.9		—
Benefits Paid - SERP	7.3		0.3		0.2		0.4		7.3		0.3		0.1		0.4
Employee Transfers	—		1.5		0.2		(0.3)		—		8.9		3.7		3.0
Increase due to acquisition of CMA	(121.4)		—		—		—		—		—		—		—
Benefit Obligation as of End of Year	$	(7,045.3)	$	(1,477.3)	$	(1,517.9)	$	(748.7)	$	(6,321.7)	$	(1,331.3)	$	(1,397.3)	$	(692.6)
Change in Pension Plan Assets:
Fair Value of Pension Plan Assets as of Beginning of Year	$	4,968.6	$	986.2	$	1,288.8	$	551.6	$	4,573.9	$	918.4	$	1,222.1	$	506.6
Employer Contributions	109.6		23.2		0.7		19.5		112.5		24.0		0.4		15.4
Actual Return on Pension Plan Assets	512.3		98.8		128.3		55.8		575.2		112.9		150.0		62.9
Benefits Paid - Pension	(279.3)		(63.6)		(59.4)		(33.5)		(273.0)		(60.2)		(67.1)		(30.3)
Benefits Paid - Lump Sum	(23.4)		—		(13.1)		—		(20.0)		—		(12.9)		—
Employee Transfers	—		(1.5)		(0.2)		0.3		—		(8.9)		(3.7)		(3.0)
Increase due to acquisition of CMA	121.4		—		—		—		—		—		—		—
Fair Value of Pension Plan Assets as of End of Year	$	5,409.2	$	1,043.1	$	1,345.1	$	593.7	$	4,968.6	$	986.2	$	1,288.8	$	551.6
Funded Status as of December 31st	$	(1,636.1)	$	(434.2)	$	(172.8)	$	(155.0)	$	(1,353.1)	$	(345.1)	$	(108.5)	$	(141.0)


	PBOP
	As of December 31,
	2020								2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Change in Benefit Obligation:
Benefit Obligation as of Beginning of Year	$	(899.0)	$	(172.7)	$	(258.3)	$	(93.0)	$	(841.5)	$	(161.7)	$	(246.3)	$	(91.9)
Service Cost	(10.2)		(1.7)		(2.1)		(0.9)		(7.8)		(1.4)		(1.7)		(0.7)
Interest Cost	(24.6)		(4.4)		(6.6)		(2.8)		(32.7)		(6.3)		(9.5)		(3.4)
Actuarial Loss	(82.8)		(8.6)		(7.4)		(19.0)		(67.0)		(13.4)		(15.2)		(3.1)
Benefits Paid	50.2		10.1		14.9		6.1		50.0		10.8		15.4		5.6
Employee Transfers	—		(1.3)		(1.0)		0.1		—		(0.7)		(1.0)		0.5
Increase due to acquisition of CMA	(27.5)		—		—		—		—		—		—		—
Benefit Obligation as of End of Year	$	(993.9)	$	(178.6)	$	(260.5)	$	(109.5)	$	(899.0)	$	(172.7)	$	(258.3)	$	(93.0)
Change in Plan Assets:
Fair Value of Plan Assets as of Beginning of Year	$	935.9	$	126.3	$	424.4	$	76.0	$	849.6	$	120.6	$	379.1	$	71.2
Actual Return on Plan Assets	116.5		15.7		53.3		9.3		127.0		17.1		57.0		10.0
Employer Contributions	1.9		—		—		—		9.3		—		6.0		—
Benefits Paid	(50.2)		(10.1)		(14.9)		(6.1)		(50.0)		(10.8)		(15.4)		(5.6)
Employee Transfers	—		2.2		1.8		0.2		—		(0.6)		(2.3)		0.4
Fair Value of Plan Assets as of End of Year	$	1,004.1	$	134.1	$	464.6	$	79.4	$	935.9	$	126.3	$	424.4	$	76.0
Funded Status as of December 31st	$	10.2	$	(44.5)	$	204.1	$	(30.1)	$	36.9	$	(46.4)	$	166.1	$	(17.0)

Schedule of Defined Benefit Plans

As of December 31, 2020 and 2019, the accumulated benefit obligation for the Pension and SERP Plans is as follows:


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2020	$	6,669.4	$	1,356.4	$	1,449.4	$	707.2
2019	5,963.4		1,205.4		1,340.8		646.7

Schedule of Assumptions Used

The following actuarial assumptions were used in calculating the Pension, SERP and PBOP Plans' year end funded status:


	Pension and SERP							PBOP
	As of December 31,							As of December 31,
		2020			2019			2020			2019
Discount Rate		2.4%	—	2.7%	3.0%	—	3.4%	2.5%	—	2.6%	3.2%	—	3.3%
Compensation/Progression Rate		3.5%	—	4.0%	3.5%	—	4.0%	N/A

The following actuarial assumptions were used to calculate Pension, SERP and PBOP expense amounts:


	Pension and SERP									PBOP
	For the Years Ended December 31,									For the Years Ended December 31,
	2020			2019			2018			2020			2019			2018
Discount Rate	2.6%	—	3.5%	2.7%	—	3.6%	3.9%	—	4.6%	2.7%	—	3.6%	3.9%	—	4.6%	3.3%	—	3.9%
Expected Long-Term Rate of Return	8.25%			8.25%			8.25%			8.25%			8.25%			8.25%
Compensation/Progression Rate	3.5%	—	4.0%	3.5%	—	4.0%	3.5%	—	4.0%	N/A			N/A			N/A

Schedule of Net Benefit Costs

The components of net periodic benefit expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets for future recovery, are shown below. The service cost component of net periodic benefit expense/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP expense reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include the intercompany allocations or the corresponding capitalized and deferred portion, as these amounts are cash settled on a short-term basis.


	Pension and SERP								PBOP
	For the Year Ended December 31, 2020								For the Year Ended December 31, 2020
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	76.2	$	21.8	$	15.4	$	8.2	$	10.2	$	1.7	$	2.1	$	0.9
Interest Cost	177.8		37.3		38.6		19.4		24.6		4.4		6.6		2.8
Expected Return on Plan Assets	(400.3)		(79.2)		(103.0)		(44.7)		(73.6)		(9.9)		(34.0)		(5.7)
Actuarial Loss	202.0		39.2		55.2		15.6		8.4		1.1		2.5		0.8
Prior Service Cost/(Credit)	1.2		—		0.3		—		(21.2)		1.1		(17.0)		0.4
Total Net Periodic Benefit Expense/(Income)	$	56.9	$	19.1	$	6.5	$	(1.5)	$	(51.6)	$	(1.6)	$	(39.8)	$	(0.8)
Intercompany Allocations	N/A		$	9.1	$	8.9	$	2.9	N/A		$	(1.1)	$	(1.4)	$	(0.5)


	Pension and SERP								PBOP
	For the Year Ended December 31, 2019								For the Year Ended December 31, 2019
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	67.7	$	18.0	$	14.6	$	7.1	$	7.8	$	1.4	$	1.7	$	0.7
Interest Cost	219.0		45.7		49.0		24.0		32.7		6.3		9.5		3.4
Expected Return on Plan Assets	(367.1)		(73.2)		(97.1)		(40.7)		(66.8)		(9.2)		(30.2)		(5.4)
Actuarial Loss	143.2		26.9		44.7		10.6		8.3		1.3		3.3		0.3
Prior Service Cost/(Credit)	0.9		—		0.3		—		(23.5)		1.1		(16.9)		0.4
Total Net Periodic Benefit Expense/(Income)	$	63.7	$	17.4	$	11.5	$	1.0	$	(41.5)	$	0.9	$	(32.6)	$	(0.6)
Intercompany Allocations	N/A		$	8.5	$	8.0	$	2.3	N/A		$	(0.9)	$	(1.2)	$	(0.4)


	Pension and SERP								PBOP
	For the Year Ended December 31, 2018								For the Year Ended December 31, 2018
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	84.8	$	21.4	$	17.4	$	11.2	$	10.0	$	1.9	$	2.0	$	1.1
Interest Cost	196.4		41.8		43.5		22.0		30.7		5.8		8.7		3.4
Expected Return on Plan Assets	(391.6)		(79.1)		(104.9)		(43.6)		(72.4)		(10.4)		(32.5)		(6.0)
Actuarial Loss	145.7		29.1		41.1		11.6		10.3		1.6		2.3		0.7
Prior Service Cost/(Credit)	4.3		1.1		0.2		0.4		(23.6)		1.1		(16.9)		0.5
Total Net Periodic Benefit Expense/(Income)	$	39.6	$	14.3	$	(2.7)	$	1.6	$	(45.0)	$	—	$	(36.4)	$	(0.3)
Intercompany Allocations	N/A		$	6.1	$	6.5	$	1.9	N/A		$	(1.0)	$	(1.3)	$	(0.4)

Schedule of Amounts Recognized in Regulatory Assets and OCI

The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and Other Comprehensive Income (OCI) as well as amounts in Regulatory Assets and OCI that were reclassified as net periodic benefit expense during the years presented:


	Pension and SERP								PBOP
	Regulatory Assets				OCI				Regulatory Assets				OCI
	For the Years Ended December 31,								For the Years Ended December 31,
(Millions of Dollars)	2020 (1)		2019		2020		2019		2020 (1)		2019		2020		2019
Actuarial Losses Arising During the Year	$	553.1	$	591.6	$	24.3	$	15.4	$	39.1	$	4.6	$	1.3	$	2.3
Actuarial Losses Reclassified as Net Periodic Benefit Expense	(194.3)		(137.8)		(7.7)		(5.4)		(8.0)		(8.0)		(0.4)		(0.3)
Prior Service Cost Arising During the Year	2.0		—		—		—		—		—		—		—
Prior Service (Cost)/Credit Reclassified as Net Periodic Benefit (Expense)/Income	(1.0)		(0.7)		(0.2)		(0.2)		21.3		25.1		(0.1)		(1.6)

(1) Amounts include the impact of the CMA asset acquisition from October 9, 2020 through December 31, 2020.

The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Income amounts that have not been recognized as components of net periodic benefit expense as of December 31, 2020 and 2019:


	Regulatory Assets as of December 31,				AOCI as of December 31,
(Millions of Dollars)	2020		2019		2020		2019
Pension and SERP
Actuarial Loss	$	2,620.2	$	2,261.4	$	107.4	$	90.8
Prior Service Cost	6.6		5.6		0.7		0.9
PBOP
Actuarial Loss	$	235.0	$	203.9	$	7.9	$	7.0
Prior Service (Credit)/Cost	(151.2)		(172.5)		0.9		1.0

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, are expected to be paid by the Pension, SERP and PBOP Plans:


(Millions of Dollars)	2021		2022		2023		2024		2025		2026 - 2030
Pension and SERP	$	346.9	$	355.6	$	362.9	$	397.5	$	373.8	$	1,883.2
PBOP	60.1		60.1		59.7		59.1		58.3		273.6

Schedule of Allocation of Plan Assets

These long-term rates of return are based on the assumed rates of return for the target asset allocations as follows:


	As of December 31,
	2020				2019
	Eversource Pension Plan and Tax-Exempt Assets Within PBOP Plan				Eversource Pension Plan and Tax-Exempt Assets Within PBOP Plan
	Target Asset Allocation		Assumed Rate of Return		Target Asset Allocation		Assumed Rate of Return
Equity Securities:
United States	15.0	%	8.5	%	15.0	%	8.5	%
Global	10.0	%	8.75	%	10.0	%	8.75	%
Non-United States	8.0	%	8.5	%	8.0	%	8.5	%
Emerging Markets	4.0	%	10.0	%	4.0	%	10.0	%
Debt Securities:
Fixed Income	13.0	%	4.0	%	13.0	%	4.0	%
Public High Yield Fixed Income	4.0	%	6.5	%	4.0	%	6.5	%
Private Debt	15.0	%	9.0	%	15.0	%	9.0	%
Private Equity	15.0	%	12.0	%	15.0	%	12.0	%
Real Assets	16.0	%	7.5	%	16.0	%	7.5	%

The following table presents, by asset category, the Pension and PBOP Plan assets recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:


	Pension Plan
	Fair Value Measurements as of December 31,
(Millions of Dollars)	2020								2019
Asset Category:	Level 1		Level 2		Uncategorized		Total		Level 1		Level 2		Uncategorized		Total
Equity Securities (1)	$	630.8	$	—	$	1,321.7	$	1,952.5	$	592.6	$	—	$	1,349.9	$	1,942.5
Fixed Income (2)	113.6		265.6		1,402.5		1,781.7		99.4		303.0		1,222.8		1,625.2
Private Equity	22.3		—		1,175.4		1,197.7		16.9		—		971.4		988.3
Real Assets (3)	158.4		—		580.8		739.2		58.7		—		615.0		673.7
Total	$	925.1	$	265.6	$	4,480.4	$	5,671.1	$	767.6	$	303.0	$	4,159.1	$	5,229.7
Less: 401(h) PBOP Assets (4)							(261.9)								(261.1)
Total Pension Assets							$	5,409.2							$	4,968.6


	PBOP Plan
	Fair Value Measurements as of December 31,
(Millions of Dollars)	2020								2019
Asset Category:	Level 1		Level 2		Uncategorized		Total		Level 1		Level 2		Uncategorized		Total
Equity Securities (1)	$	176.5	$	—	$	217.8	$	394.3	$	158.0	$	—	$	187.0	$	345.0
Fixed Income (2)	16.0		43.2		152.9		212.1		15.8		39.6		148.1		203.5
Private Equity	—		—		31.5		31.5		—		—		26.5		26.5
Real Assets (3)	82.1		—		22.2		104.3		51.2		—		48.6		99.8
Total	$	274.6	$	43.2	$	424.4	$	742.2	$	225.0	$	39.6	$	410.2	$	674.8
Add: 401(h) PBOP Assets (4)							261.9								261.1
Total PBOP Assets							$	1,004.1							$	935.9

(1) United States, Global, Non-United States and Emerging Markets equity securities that are uncategorized include investments in commingled funds and hedge funds that are overlaid with equity index swaps and futures contracts.

(2) Fixed Income investments that are uncategorized include investments in commingled funds, fixed income funds that invest in a variety of opportunistic and fixed income strategies, and hedge funds that are overlaid with fixed income futures.

(3) Real assets include real estate funds and hedge funds.

(4) The assets of the Pension Plan include a 401(h) account that has been allocated to provide health and welfare postretirement benefits under the PBOP Plan.

Schedule of Defined Contribution Plans

The total Eversource 401k Plan employer matching contributions, including the K-Vantage contributions, were as follows:


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2020	$	49.4	$	6.6	$	11.8	$	4.1
2019	41.6		5.5		10.3		3.5
2018	38.4		5.0		9.7		3.3

Summary of Share Transactions

A summary of RSU transactions is as follows:


	RSUs (Units)	Weighted Average Grant-Date Fair Value
Outstanding as of December 31, 2019	774,163	$	54.43
Granted	208,937	$	88.23
Shares Issued	(301,938)	$	57.61
Forfeited	(6,944)	$	60.95
Outstanding as of December 31, 2020	674,218	$	63.42

A summary of performance share transactions is as follows:


	Performance Shares (Units)	Weighted Average Grant-Date Fair Value
Outstanding as of December 31, 2019	486,907	$	60.30
Granted	211,224	$	75.36
Shares Issued	(249,922)	$	55.72
Forfeited	(404)	$	89.85
Outstanding as of December 31, 2020	447,805	$	69.93

Schedule of Compensation Expense and Income Tax Benefit

The total compensation expense and associated future income tax benefits recognized by Eversource, CL&P, NSTAR Electric and PSNH for share-based compensation awards were as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2020		2019		2018
Compensation Expense	$	33.9	$	27.3	$	21.4
Future Income Tax Benefit	8.9		7.0		5.4


	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
Compensation Expense	$	10.9	$	11.3	$	3.6	$	9.8	$	9.7	$	3.3	$	7.8	$	7.7	$	2.9
Future Income Tax Benefit	2.9		3.0		1.0		2.5		2.5		0.8		2.0		1.9		0.7

Schedule of Other Retirement Benefits

The liability and expense amounts are as follows:


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
	2020		2019		2018
Actuarially-Determined Liability	$	45.7	$	52.0	$	49.1
Other Retirement Benefits Expense	3.3		2.7		2.7


	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
Actuarially-Determined Liability	$	0.2	$	0.1	$	1.7	$	0.2	$	0.1	$	1.7	$	0.3	$	0.1	$	1.7
Other Retirement Benefits Expense	1.2		1.1		0.5		1.0		0.9		0.4		1.1		1.1		0.4