INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

The components of income tax expense are as follows:


Eversource (Millions of Dollars)	For the Years Ended December 31,
	2023		2022		2021
Current Income Taxes:
Federal	$	75.8	$	95.8	$	21.5
State	0.6		13.6		(21.6)
Total Current	76.4		109.4		(0.1)
Deferred Income Taxes, Net:
Federal	(0.9)		198.8		199.7
State	86.3		148.0		147.4
Total Deferred	85.4		346.8		347.1
Investment Tax Credits, Net	(2.1)		(2.6)		(2.8)
Income Tax Expense	$	159.7	$	453.6	$	344.2


	For the Years Ended December 31,
	2023						2022						2021
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Current Income Taxes:
Federal	$	(10.8)	$	50.7	$	(40.0)	$	106.2	$	55.0	$	29.6	$	15.0	$	52.3	$	43.1
State	(2.3)		7.8		(20.0)		20.1		8.7		5.9		(7.0)		6.2		10.8
Total Current	(13.1)		58.5		(60.0)		126.3		63.7		35.5		8.0		58.5		53.9
Deferred Income Taxes, Net:
Federal	130.3		50.1		81.2		17.2		35.6		5.9		76.3		16.3		(14.9)
State	53.7		46.1		37.8		28.2		42.4		9.9		47.6		41.2		0.4
Total Deferred	184.0		96.2		119.0		45.4		78.0		15.8		123.9		57.5		(14.5)
Investment Tax Credits, Net	—		(1.7)		—		(0.5)		(1.7)		—		(0.6)		(1.7)		—
Income Tax Expense	$	170.9	$	153.0	$	59.0	$	171.2	$	140.0	$	51.3	$	131.3	$	114.3	$	39.4

Summary of Reconciliation Between Income Tax Expense and Expected Tax

A reconciliation between income tax expense and the expected tax expense at the statutory rate is as follows:


Eversource (Millions of Dollars, except percentages)	For the Years Ended December 31,
	2023			2022			2021
(Loss)/Income Before Income Tax Expense	$	(275.0)		$	1,866.0		$	1,572.3

Statutory Federal Income Tax Expense at 21%	(57.7)			391.9			330.2
Tax Effect of Differences:
Depreciation	(25.8)			(17.1)			(18.1)
Investment Tax Credit Amortization	(2.1)			(2.6)			(2.8)
State Income Taxes, Net of Federal Impact	(11.4)			75.9			54.4
Dividends on ESOP	(5.3)			(5.1)			(5.1)
Tax Asset Valuation Allowance/Reserve Adjustments	295.8			51.6			44.6
Tax Deficiency/(Excess Stock Benefit)	0.5			(2.1)			(4.0)
EDIT Amortization	(51.5)			(49.1)			(69.1)
Other, Net	17.2			10.2			14.1
Income Tax Expense	$	159.7		$	453.6		$	344.2
Effective Tax Rate	(58.1)		%	24.3		%	21.9		%


	For the Years Ended December 31,
	2023									2022									2021
(Millions of Dollars, except percentages)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Income Before Income Tax Expense	$	689.6		$	697.5		$	254.7		$	704.1		$	632.4		$	222.9		$	533.0		$	590.9		$	189.8

Statutory Federal Income Tax Expense at 21%	144.9			146.5			53.5			147.9			132.8			46.8			111.9			124.1			39.9
Tax Effect of Differences:
Depreciation	(5.6)			(8.8)			(1.0)			(3.7)			(4.2)			0.9			(6.4)			(3.4)			(0.2)
Investment Tax Credit Amortization	—			(1.7)			—			(0.5)			(1.7)			—			(0.6)			(1.7)			—
State Income Taxes, Net of Federal Impact	(10.7)			42.5			14.1			(6.6)			40.3			12.5			(4.6)			37.5			8.9
Tax Asset Valuation Allowance/Reserve Adjustments	51.3			—			—			44.7			—			—			36.7			—			—
Tax Deficiency/(Excess Stock Benefit)	0.2			0.2			0.1			(0.7)			(0.8)			(0.3)			(1.5)			(1.4)			(0.5)
EDIT Amortization	(10.5)			(28.4)			(6.8)			(9.2)			(29.2)			(7.7)			(9.8)			(43.2)			(10.5)
Other, Net	1.3			2.7			(0.9)			(0.7)			2.8			(0.9)			5.6			2.4			1.8
Income Tax Expense	$	170.9		$	153.0		$	59.0		$	171.2		$	140.0		$	51.3		$	131.3		$	114.3		$	39.4
Effective Tax Rate	24.8		%	21.9		%	23.2		%	24.3		%	22.1		%	23.0		%	24.6		%	19.3		%	20.8		%

Schedule of Accumulated Deferred Income Tax Obligations

The tax effects of temporary differences that give rise to the net accumulated deferred income tax obligations are as follows:


	As of December 31,
	2023								2022
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Deferred Tax Assets:
Employee Benefits	$	244.5	$	29.9	$	66.8	$	13.0	$	228.9	$	25.3	$	57.4	$	11.6
Derivative Liabilities	33.0		33.0		—		—		53.8		53.8		—		—
Regulatory Deferrals - Liabilities	452.0		94.4		291.5		23.8		529.5		146.6		285.7		42.1
Allowance for Uncollectible Accounts	143.8		79.6		21.5		3.9		125.5		60.5		20.7		7.9
Tax Effect - Tax Regulatory Liabilities	739.0		320.7		227.1		95.5		762.9		324.6		241.8		97.8
Net Operating Loss Carryforwards	13.8		—		—		—		16.7		—		—		—
Purchase Accounting Adjustment	56.7		—		—		—		62.0		—		—		—
Equity Method Wind Investments	584.9		—		—		—		—		—		—		—
Other	200.1		125.3		25.0		23.4		176.6		109.5		20.5		21.3
Total Deferred Tax Assets	2,467.8		682.9		631.9		159.6		1,955.9		720.3		626.1		180.7
Less: Valuation Allowance (1)	328.1		80.6		—		—		82.8		63.3		—		—
Net Deferred Tax Assets	$	2,139.7	$	602.3	$	631.9	$	159.6	$	1,873.1	$	657.0	$	626.1	$	180.7
Deferred Tax Liabilities:
Accelerated Depreciation and Other Plant-Related Differences	$	5,103.3	$	1,703.4	$	1,728.6	$	566.5	$	4,793.7	$	1,602.0	$	1,643.7	$	523.8
Property Tax Accruals	95.0		42.0		39.8		6.3		95.3		40.7		41.3		6.7
Regulatory Amounts:
Regulatory Deferrals - Assets	1,512.3		470.0		474.5		250.3		1,251.9		406.4		407.9		165.2
Tax Effect - Tax Regulatory Assets	284.0		191.9		10.5		8.3		271.7		185.6		10.7		7.9
Goodwill-related Regulatory Asset - 1999 Merger	72.2		—		61.9		—		76.8		—		65.9		—
Employee Benefits	282.0		38.8		146.7		16.8		305.5		45.0		140.8		18.7
Derivative Assets	6.4		6.4		—		—		10.5		10.5		—		—
Other	88.2		9.9		19.5		2.9		135.6		6.8		16.7		21.2
Total Deferred Tax Liabilities	$	7,443.4	$	2,462.4	$	2,481.5	$	851.1	$	6,941.0	$	2,297.0	$	2,327.0	$	743.5

(1) As of December 31, 2023, the Eversource Valuation Allowance of $328.1 million includes $224.0 million related to the impairment of Eversource’s offshore wind investments.

Summary of Tax Credits and Loss Carryforwards

The following table provides the amounts and expiration dates of state tax credit and loss carryforwards and federal tax credit and net operating loss carryforwards:


	As of December 31,
	2023									2022
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Expiration Range	Eversource		CL&P		NSTAR Electric		PSNH		Expiration Range

State Net Operating Loss	$	243.4	$	—	$	—	$	—	2023 - 2041	$	288.1	$	—	$	—	$	—	2022 - 2041
State Tax Credit	228.5		157.5		—		—		2023 - 2028	204.5		137.7		—		—		2022 - 2027
State Charitable Contribution	7.9		—		—		—		2023 - 2027	20.1		—		—		—		2022 - 2026

Summary of Income Tax Contingencies

A reconciliation of the activity in unrecognized tax benefits, all of which would impact the effective tax rate if recognized, is as follows:


(Millions of Dollars)	Eversource		CL&P
Balance as of January 1, 2021	$	61.8	$	25.8
Gross Increases - Current Year	11.3		3.8
Gross Decreases - Prior Year	(0.3)		(0.6)
Lapse of Statute of Limitations	(7.0)		(2.8)
Balance as of December 31, 2021	65.8		26.2
Gross Increases - Current Year	11.5		3.5
Gross Decreases - Prior Year	(2.4)		(0.9)
Lapse of Statute of Limitations	(7.8)		(3.3)
Balance as of December 31, 2022	67.1		25.5
Gross Increases - Current Year	23.4		4.0
Gross Increases - Prior Year	0.1		0.1
Gross Decreases - Prior Year	(0.1)		—
Lapse of Statute of Limitations	(9.2)		(3.8)
Balance as of December 31, 2023	$	81.3	$	25.8

Summary of Income Tax Examinations

The following table summarizes Eversource, CL&P, NSTAR Electric, and PSNH's tax years that remain subject to examination by major tax jurisdictions as of December 31, 2023:


Description			Tax Years
Federal			2023
Connecticut			2020 - 2023
Massachusetts			2020 - 2023
New Hampshire			2020 - 2023