SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

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		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Total Allowance
Balance as of January 1, 2020	$	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
Increase due to CMA acquisition	—		24.2		24.2		—		—		—		—		—		—		—
Uncollectible Expense	—		53.5		53.5		—		12.9		12.9		—		15.3		15.3		5.2
Uncollectible Costs Deferred (1)	43.1		53.9		97.0		38.2		10.8		49.0		(1.7)		26.4		24.7		7.4
Write-Offs	(14.7)		(63.3)		(78.0)		(11.9)		(17.8)		(29.7)		(0.9)		(26.3)		(27.2)		(6.9)
Recoveries Collected	1.5		12.1		13.6		1.4		4.3		5.7		—		4.7		4.7		0.7
Balance as of December 31, 2020	$	194.8	$	164.1	$	358.9	$	129.1	$	28.3	$	157.4	$	39.7	$	51.9	$	91.6	$	17.2
Uncollectible Expense	—		60.9		60.9		—		13.5		13.5		—		16.6		16.6		13.1
Uncollectible Costs Deferred (1)	51.9		58.7		110.6		32.3		25.5		57.8		4.3		15.8		20.1		3.1
Write-Offs	(22.0)		(107.7)		(129.7)		(18.0)		(36.2)		(54.2)		(0.7)		(36.3)		(37.0)		(10.0)
Recoveries Collected	1.4		15.3		16.7		1.2		5.6		6.8		—		5.7		5.7		0.9
Balance as of December 31, 2021	$	226.1	$	191.3	$	417.4	$	144.6	$	36.7	$	181.3	$	43.3	$	53.7	$	97.0	$	24.3
Uncollectible Expense	—		61.9		61.9		—		15.6		15.6		—		21.6		21.6		9.2
Uncollectible Costs Deferred (1)	77.8		34.7		112.5		58.3		1.2		59.5		1.5		10.9		12.4		2.5
Write-Offs	(21.3)		(102.7)		(124.0)		(15.3)		(23.0)		(38.3)		(1.1)		(41.2)		(42.3)		(7.7)
Recoveries Collected	1.8		16.7		18.5		1.3		5.9		7.2		—		6.3		6.3		0.9
Balance as of December 31, 2022	$	284.4	$	201.9	$	486.3	$	188.9	$	36.4	$	225.3	$	43.7	$	51.3	$	95.0	$	29.2

(1) These expected credit losses are deferred as regulatory costs on the balance sheets, as these amounts are ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to uncollectible energy supply costs and COVID-19. The increase in the allowance for uncollectible hardship accounts in 2022 at Eversource and CL&P primarily relates to increased customer enrollment in disconnection prevention programs in Connecticut.

Schedule of Utility Inventory

The carrying amounts of materials and supplies, natural gas inventory, and RECs, which are included in Current Assets on the balance sheets, were as follows:


	As of December 31,
	2022								2021
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Materials and Supplies	$	221.0	$	88.2	$	81.0	$	34.4	$	148.9	$	60.3	$	55.0	$	25.2
Natural Gas	95.9		—		—		—		56.2		—		—		—
RECs	57.5		—		57.4		0.1		62.4		—		61.7		0.7
Total	$	374.4	$	88.2	$	138.4	$	34.5	$	267.5	$	60.3	$	116.7	$	25.9

Costs Related to Fuel and Natural Gas

The cost of natural gas included in Purchased Power, Purchased Natural Gas and Transmission on the statements of income were as follows:


	For the Years Ended December 31,
(Millions of Dollars)	2022		2021		2020
Eversource - Cost of Natural Gas	$	1,010.2	$	718.6	$	464.2

Weighted-Average AFUDC Rates

AFUDC costs and the weighted-average AFUDC rates were as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars, except percentages)	2022			2021			2020
Borrowed Funds	$	21.8		$	18.4		$	23.7
Equity Funds	47.3			37.3			42.0
Total AFUDC	$	69.1		$	55.7		$	65.7
Average AFUDC Rate	4.7		%	4.2		%	5.0		%


	For the Years Ended December 31,
	2022									2021									2020
(Millions of Dollars, except percentages)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Borrowed Funds	$	4.8		$	10.7		$	1.4		$	2.9		$	9.0		$	0.8		$	6.6		$	9.1		$	2.1
Equity Funds	13.6			24.6			2.5			7.7			20.4			1.6			13.8			21.5			4.2
Total AFUDC	$	18.4		$	35.3		$	3.9		$	10.6		$	29.4		$	2.4		$	20.4		$	30.6		$	6.3
Average AFUDC Rate	6.6		%	5.4		%	2.6		%	5.0		%	4.9		%	2.5		%	5.9		%	5.7		%	4.7		%

Components of Other Income, Net

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


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2022		2021		2020
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion (1)	$	219.8	$	84.4	$	44.4
AFUDC Equity	47.3		37.3		42.0
Equity in Earnings of Unconsolidated Affiliates (2)	22.9		14.2		14.2
Investment Income/(Loss)	1.9		(0.2)		1.1
Interest Income	50.5		25.6		4.8
Gain on Sale of Property	2.6		0.1		1.8
Other	1.1		(0.1)		0.3
Total Other Income, Net	$	346.1	$	161.3	$	108.6


	For the Years Ended December 31,
	2022						2021						2020
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion (1)	$	64.4	$	85.5	$	26.8	$	15.2	$	40.2	$	10.3	$	3.8	$	29.3	$	7.0
AFUDC Equity	13.6		24.6		2.5		7.7		20.4		1.6		13.8		21.5		4.2
Investment (Loss)/Income	(1.3)		1.2		0.2		1.3		0.1		0.1		1.1		(0.8)		0.1
Interest Income	6.5		30.7		3.1		5.9		13.4		2.4		2.0		0.9		2.4
Other	0.1		0.7		0.1		0.1		0.7		0.2		0.1		1.1		0.1
Total Other Income, Net	$	83.3	$	142.7	$	32.7	$	30.2	$	74.8	$	14.6	$	20.8	$	52.0	$	13.8

(1) See Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for the components of net periodic benefit income/expense for the Pension, SERP and PBOP Plans. The non-service related components of pension, SERP and PBOP benefit income/expense, after capitalization or deferral, are presented as non-operating income and recorded in Other Income, Net on the statements of income.

(2) Equity in earnings of unconsolidated affiliates includes $12.2 million and $2.1 million of pre-tax unrealized gains for the years ended December 31, 2022 and 2021, respectively, and $2.4 million of primarily realized gains for the year ended December 31, 2020, associated with an equity method investment in a renewable energy fund. Equity in earnings of unconsolidated affiliates for the year ended December 31, 2020 includes an other-than-temporary impairment of $2.8 million related to a write-off of an investment within a renewable energy fund. See Note 6, "Investments in Unconsolidated Affiliates," for Eversource’s equity method investments.

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 Years Ended December 31,
(Millions of Dollars)	2022		2021		2020
Eversource	$	194.7	$	181.9	$	170.6
CL&P	166.1		158.1		149.9

Supplemental Cash Flow Information


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
	2022		2021		2020
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	636.2	$	568.7	$	518.0
Income Taxes	77.9		121.6		48.9
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	586.9		467.9		367.2


	As of and For the Years Ended December 31,
	2022						2021						2020
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	167.2	$	152.8	$	58.3	$	161.5	$	141.6	$	56.5	$	149.0	$	129.4	$	54.5
Income Taxes	117.6		23.8		58.3		38.4		74.2		51.1		10.9		110.7		34.2
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	131.8		184.3		76.2		110.6		120.0		68.7		101.8		103.2		33.3

Cash and Cash Equivalents as Reported on the Balance Sheet


	As of December 31,
	2022								2021
(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	$	374.6	$	11.3	$	327.7	$	0.1	$	66.8	$	55.8	$	0.7	$	—
Restricted cash included in:
Special Deposits	102.2		8.8		17.5		33.1		78.2		18.7		17.4		31.4
Marketable Securities	25.4		0.2		0.1		0.4		31.3		0.3		0.1		0.5
Other Long-Term Assets	19.6		—		—		3.2		44.7		—		—		3.2
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows	$	521.8	$	20.3	$	345.3	$	36.8	$	221.0	$	74.8	$	18.2	$	35.1