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REGULATORY ACCOUNTING
 9 Months Ended
Sep. 30, 2021
Regulated Operations [Abstract]  
REGULATORY ACCOUNTING REGULATORY ACCOUNTING
Eversource's utility companies are subject to rate regulation that is based on cost recovery and meets the criteria for application of accounting guidance for rate-regulated operations, which considers the effect of regulation on the timing of the recognition of certain revenues and expenses. The regulated companies' financial statements reflect the effects of the rate-making process.  The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, plus a return on investment.

The application of accounting guidance for rate-regulated enterprises results in recording regulatory assets and liabilities. Regulatory assets represent the deferral of incurred costs that are probable of future recovery in customer rates. Regulatory assets are amortized as the incurred costs are recovered through customer rates. Regulatory liabilities represent either revenues received from customers to fund expected costs that have not yet been incurred or probable future refunds to customers.

Management believes it is probable that each of the regulated companies will recover its respective investments in long-lived assets and the regulatory assets that have been recorded.  If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the applicable costs would be charged to net income in the period in which the determination is made.
Regulatory Assets:  The components of regulatory assets were as follows:
 As of September 30, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHEversourceCL&PNSTAR
Electric		PSNH
Benefit Costs$2,566.1 $540.2 $638.4 $249.7 $2,794.2 $632.3 $690.0 $267.6 
Income Taxes, Net756.4 458.1 113.8 18.7 747.1 458.9 110.4 15.2 
Securitized Stranded Costs489.7 — — 489.7 522.1 — — 522.1 
Storm Restoration Costs, Net944.2 674.2 198.1 71.9 765.6 515.1 186.4 64.1 
Regulatory Tracker Mechanisms883.0 304.6 320.0 76.8 850.5 246.6 332.2 95.3 
Derivative Liabilities265.3 265.3 — — 296.3 293.1 — — 
Goodwill-related302.0 — 259.3 — 314.7 — 270.2 — 
Asset Retirement Obligations121.6 33.7 57.8 4.0 118.4 32.1 58.6 3.9 
Other Regulatory Assets146.9 31.0 48.7 16.9 161.0 33.7 56.1 20.9 
Total Regulatory Assets6,475.2 2,307.1 1,636.1 927.7 6,569.9 2,211.8 1,703.9 989.1 
Less:  Current Portion1,016.3 325.3 388.4 97.9 1,076.6 345.6 399.9 115.9 
Total Long-Term Regulatory Assets$5,458.9 $1,981.8 $1,247.7 $829.8 $5,493.3 $1,866.2 $1,304.0 $873.2 

CL&P Deferred Storm Costs: In 2021 and 2020, multiple tropical and severe storms caused extensive damage to CL&P’s electric distribution systems and customer outages, along with significant pre-staging costs. These storms resulted in deferred pre-staging and storm restoration costs of $195 million for 2021 storms and $344 million for 2020 storms, including the catastrophic impact of Tropical Storm Isaias in August 2020, among others. Management believes all these storm costs were prudently incurred and meet the criteria for specific cost recovery.

Regulatory Costs in Long-Term Assets:  Eversource's regulated companies had $260.6 million (including $111.2 million for CL&P, $85.1 million for NSTAR Electric and $3.2 million for PSNH) and $196.9 million (including $84.1 million for CL&P, $69.8 million for NSTAR Electric and $4.3 million for PSNH) of additional regulatory costs as of September 30, 2021 and December 31, 2020, respectively, that were included in long-term assets on the balance sheets.  These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency.  However, based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates.

As of September 30, 2021 and December 31, 2020, these regulatory costs included net incremental COVID-19 related costs deferred of $41.3 million and $24.0 million at Eversource, respectively, of which, $34.5 million and $15.8 million, respectively, related to non-tracked uncollectible expense and the remainder related to facilities and fleet cleaning, sanitizing costs and supplies for personal protective equipment. Net incremental COVID-19 related costs deferred at CL&P and NSTAR Electric totaled $15.9 million and $10.9 million, respectively, as of September 30, 2021, and $4.7 million and $11.9 million, respectively, as of December 31, 2020, and primarily related to deferred non-tracked uncollectible expense.

Regulatory Liabilities:  The components of regulatory liabilities were as follows:
 As of September 30, 2021As of December 31, 2020
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHEversourceCL&PNSTAR
Electric		PSNH
EDIT due to Tax Cuts and Jobs Act of 2017$2,737.1 $1,001.5 $1,025.6 $363.9 $2,778.6 $1,010.7 $1,044.0 $371.5 
Cost of Removal676.7 117.0 384.1 19.0 624.8 98.4 363.6 12.9 
Benefit Costs65.9 — 56.5 — 83.6 — 72.5 — 
Regulatory Tracker Mechanisms484.5 208.9 180.6 87.5 366.5 148.9 139.7 47.8 
AFUDC - Transmission79.6 43.6 36.0 — 76.8 44.6 32.2 — 
CL&P Settlement Agreement and Storm
  Performance Penalty		103.4 103.4 — — — — — — 
Other Regulatory Liabilities373.3 50.4 84.6 15.8 309.9 39.5 63.2 9.8 
Total Regulatory Liabilities4,520.5 1,524.8 1,767.4 486.2 4,240.2 1,342.1 1,715.2 442.0 
Less:  Current Portion612.9 311.3 205.8 96.8 389.4 137.2 164.8 58.8 
Total Long-Term Regulatory Liabilities$3,907.6 $1,213.5 $1,561.6 $389.4 $3,850.8 $1,204.9 $1,550.4 $383.2 
Recent Regulatory Developments:

CL&P Tropical Storm Isaias Costs: On August 4, 2020, Tropical Storm Isaias caused catastrophic damage to our electric distribution system, which resulted in significant numbers and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. PURA will investigate the prudence of costs incurred by CL&P to restore service in response to Tropical Storm Isaias. That investigation is expected to occur either in a separate proceeding not yet initiated or as part of CL&P’s next rate review proceeding. Tropical Storm Isaias resulted in deferred storm restoration costs of approximately $234 million at CL&P and $251 million at Eversource as of September 30, 2021. The estimated cost of restoration may continue to change as additional cost information becomes available and final post-storm costs are deferred or capitalized. Although PURA found that CL&P’s performance in its preparation for and response to Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it will be able to present credible evidence in a future proceeding demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While it is possible that some amount of storm costs may be disallowed by PURA in a future proceeding, any such amount cannot be estimated at this time. Eversource and CL&P continue to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery; and as a result, management does not expect the storm cost review by PURA to have a material impact on the financial position or results of operations of Eversource or CL&P.

CL&P Tropical Storm Isaias Response Investigation: On April 28, 2021, PURA issued a final decision on CL&P’s compliance with its emergency response plan that concluded CL&P failed to comply with certain storm performance standards and was imprudent in certain instances. The $28.4 million performance penalty assessed by PURA was recorded within current regulatory liabilities on CL&P’s balance sheet. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.
CL&P Settlement Agreement: On October 1, 2021, CL&P entered into a settlement agreement with the DEEP, Office of Consumer Counsel (OCC), Office of the Attorney General (AG) and the Connecticut Industrial Energy Consumers, resolving certain issues that arose in pending regulatory proceedings initiated by the PURA. In the third quarter of 2021, CL&P recorded a current regulatory liability of $75 million on the balance sheet associated with the provisions of the settlement agreement. See Note 9G, “Commitments and Contingencies - CL&P Regulatory Matters,” for further information.