EVERSOURCE ENERGY

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the three months ended March 31, 2024 and 2023 included in this combined Quarterly Report on Form 10-Q:

Operating Revenues

Sales Volumes: A summary of our retail electric GWh sales volumes is as follows:

Fluctuations in retail electric sales volumes at PSNH impact earnings. For CL&P and NSTAR Electric, fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms.

Operating Revenues: Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, decreased $217.6 million at CL&P, $8.7 million at NSTAR Electric, and $94.1 million at PSNH for the three month period.

Base Distribution Revenues:

•CL&P's distribution revenues were flat.

•NSTAR Electric's distribution revenues increased $26.0 million for the three month period due primarily to a base distribution rate increase effective January 1, 2024.

•PSNH's distribution revenues increased $2.0 million for the three month period due primarily to an increase in sales volumes in 2024 compared to 2023.

Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings. Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply procurement and other energy-related costs, retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), certain capital tracking mechanisms for infrastructure improvements, and additionally for NSTAR Electric, pension and PBOP benefits, net metering for distributed generation, and solar-related programs. Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties.

Customers have the choice to purchase electricity from their Eversource electric utility or from a competitive third party supplier. For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third party supplier. For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement. CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues.

The variance in tracked distribution revenues for the three month period is due primarily to the following:

The decrease in energy supply procurement at CL&P, NSTAR Electric and PSNH for the three month period was driven by lower average prices and lower average supply-related sales volumes. Fluctuations in retail transmission revenues are driven by the recovery of the costs of our wholesale transmission business, such as those billed by ISO-NE and Local and Regional Network Service charges. For further information, see "Purchased Power and Transmission” expense below.

The increase in CL&P’s FMCC revenues was driven by an increase in the retail Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) rate. The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state approved energy contracts with the Millstone and Seabrook nuclear power plants, net of the benefits received from selling this energy into the ISO-NE wholesale market. Effective January 1, 2023, CL&P reduced the average NBFMCC rate to a credit of $0.01524 per kWh. The rate reduction returned to customers the net benefits of higher wholesale market sales received in the ISO-NE market for these energy contracts. Effective July 1, 2023, the average NBFMCC rate changed to $0.00000 per kWh. As a result of the 2023 CL&P RAM decision, the average NBFMCC rate changed to $0.00293 per kWh effective September 1, 2023.

The decrease in wholesale market sales revenue for the three month period was due primarily to lower average electricity market prices received for wholesale sales at CL&P, NSTAR Electric and PSNH. ISO-NE average market prices received for CL&P’s wholesale sales decreased to an average price of $39.65 per MWh for the three months ended March 31, 2024, as compared to $48.95 per MWh for the same period in 2023, driven primarily by lower natural gas prices in New England. CL&P’s volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA that CL&P entered into in 2019, as required by regulation. CL&P sells the energy purchased from Millstone and Seabrook into the wholesale market and uses the proceeds from the energy sales to offset the contract costs. The net sales or net cost amount is refunded to, or recovered from, customers in the non-bypassable component of the CL&P FMCC rate.

Transmission Revenues: Transmission revenues increased $16.1 million at CL&P, $22.7 million at NSTAR Electric, and $10.4 million at PSNH for the three month period, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

Eliminations: Eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business in rates charged to their customers. The impact of eliminations decreased revenues by $20.1 million at CL&P, $18.2 million at NSTAR Electric, and $4.7 million at PSNH for the three month period.

Purchased Power and Transmission expense includes costs associated with providing electric generation service supply to all customers who have not migrated to third party suppliers, the cost of energy purchase contracts entered into as required by regulation, and transmission costs. These energy supply procurement costs, other energy-related costs, and transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). The variance in Purchased Power and Transmission expense is due primarily to the following:

The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues). The variance in other electric distribution costs at NSTAR Electric is due to an increase in net metering costs and the variance at PSNH is due primarily to a decrease in long-term renewable energy purchase contract costs.

Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.

•The increase in transmission costs at CL&P and PSNH was due primarily to an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network, an increase resulting from the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers, and an increase in costs billed by ISO-NE that support regional grid investments.

•The increase in transmission costs at NSTAR Electric was due primarily to an increase in Local Network Service charges and an increase resulting from the retail transmission cost deferral. These increases were partially offset by a decrease in costs billed by ISO-NE.

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). The variance in Operations and Maintenance expense is due primarily to the following:

Depreciation expense increased for the three month period for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances.

Amortization of Regulatory (Liabilities)/Assets, Net expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. These costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates. The variance in Amortization of Regulatory (Liabilities)/Assets, Net for the three month period is due primarily to the following:

•The variance at CL&P was due primarily to the deferral adjustment of energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The CL&P non-bypassable FMCC retail rate increased in the first quarter of 2024, as compared to the first quarter of 2023, and the higher collections lowered the regulatory under-recovery deferral adjustment recorded in the first quarter of 2024 as compared to the deferral adjustment in the first quarter of 2023, resulting in an increase to amortization expense of $53.1 million.

•The increase in expense at NSTAR Electric was due to the deferral adjustment ofenergy-related and other tracked costs that are included in the transition and solar facilities regulatory mechanisms, and higher amortization of storm costs recovered in rates.

•The increase in expense at PSNH was due to the deferral adjustment of energy-related and other tracked costs that are included in the stranded cost recovery charge regulatory mechanism.

Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense includes adeferral adjustment that reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The variance in Energy Efficiency Programs expense for the three month period is due primarily to the following:

•The increase at CL&P was due to the deferral adjustment, partially offset by lower program spending.

•The decrease at NSTAR Electric was due to the deferral adjustment, partially offset by higher program spending.

•The increase at PSNH was due to higher program spending, partially offset by the deferral adjustment.

Taxes Other Than Income Taxes - the variance is dueprimarily to the following:

•The increase at CL&P was due primarily to higher property taxes as a result of higher utility plant balances.

•The increase at NSTAR Electric was due primarily to higher property taxes as a result of higher assessments and higher utility plant balances.

•The increase at PSNH was due primarily to higher property taxes as a result of higher utility plant balances, partially offset by lower mill rates.

Interest Expense - the variance is dueprimarily to the following:

•The increase at CL&P was due to higher interest on long-term debtas a result of new debt issuances($7.0 million), higher interest on short-term notes payable due to increased borrowings ($3.5 million), and higher amortization of debt discounts and premiums, net ($0.2 million), partially offset by an increase in capitalized AFUDC related to debt funds ($0.6 million) and a decrease in interest expense on regulatory deferrals ($0.4 million).

•The increase at NSTAR Electric was due to higher interest on short-term notes payable due to increased borrowings ($5.2 million), an increase in interest expense on regulatory deferrals ($3.3 million) and higher interest on long-term debtas a result of a new debt issuance ($1.3 million), partially offset by an increase in capitalized AFUDC related to debt funds ($5.4 million).

•The increase at PSNH was due to higher interest on short-term notes payable ($2.8 million) and higher interest on long-term debt due to higher interest rates ($1.6 million), partially offset by an increase in capitalized AFUDC related to debt funds ($1.7 million), a decrease in interest expense on regulatory deferrals ($0.7 million), a decrease in RRB interest expense ($0.3 million) andlower amortization of debt discounts and premiums, net ($0.2 million).

Other Income, Net - the variance is due primarily to the following:

•The increase at CL&P was due primarily to an increase in interest income primarily on regulatory deferrals ($2.8 million) and an increase in capitalized AFUDC related to equity funds ($1.9 million), partially offset by a decrease related to pension, SERP and PBOP non-service income components ($3.0 million).

•The increase at NSTAR Electric was due primarily to an increase in capitalized AFUDC related to equity funds ($6.7 million), an increase in interest income primarily on regulatory deferrals ($2.0 million) and investment income in 2024 compared to investment loss in 2023 driven by market volatility ($0.9 million), partially offset by a decrease related to pension, SERP and PBOP non-service income components ($2.4 million).

•The increase at PSNH was due primarily to an increase in capitalized AFUDC related to equity funds ($1.2 million) and an increase in interest income primarily on regulatory deferrals ($0.9 million), partially offset by a decrease related to pension, SERP and PBOP non-service income components ($0.6 million).

Income Tax Expense - the variance is due primarily to the following:

•The increase at CL&P was due primarily to a higher share-based payment tax deficiency ($0.6 million), a decrease in amortization of EDIT ($0.3 million), higher state taxes ($0.1 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.5 million), partially offset by lower pre-tax earnings ($2.0 million).

•The increase at NSTAR Electric was due primarily to higher pre-tax earnings ($8.3 million), higher state taxes ($2.2 million), a higher share-based payment tax deficiency ($0.6 million), and a decrease in amortization of EDIT ($3.5 million), partially offset by a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.4 million).

•The increase at PSNH was due primarily to higher pre-tax earnings ($2.4 million), higher state taxes ($0.6 million), and a decrease in amortization of EDIT ($0.5 million), partially offset by a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.2 million).

EARNINGS SUMMARY

CL&P's earnings decreased $10.0 million for the three month period due primarily to higher operations and maintenance expense, higher interest expense, and higher depreciation expense, partially offset by higher earnings from its capital tracking mechanism due to increased electric system improvements and an increase in transmission earnings driven by a higher transmission rate base.

NSTAR Electric's earnings increased $26.2 million for the three month period due primarily to higher revenues as a result of the base distribution rate increase effective January 1, 2024, an increase in transmission earnings driven by a higher transmission rate base, an increase in interest income primarily on regulatory deferrals, and lower operations and maintenance expense. The earnings increase was partially offset by higher interest expense, higher property tax expense, and higher depreciation expense.

PSNH's earnings increased $8.1 million for the three month period due primarily to an increase in transmission earnings driven by a higher transmission rate base, lower operations and maintenance expense, and higher sales volumes. The earnings increase was partially offset by higher depreciation expense and higher interest expense.

LIQUIDITY

Cash Flows: CL&P had cash flows used in operating activities of $26.6 million for the three months ended March 31, 2024, as compared to $73.6 million in the same period of 2023. The improvement in operating cash flows was due primarily to the timing of cash payments made on our accounts payable and a decrease in regulatory under-recoveries driven primarily by the timing of collections for the non-bypassable FMCC and other regulatory tracking mechanisms. The CL&P non-bypassable FMCC retail rate increased in the first quarter of 2024, as compared to the first quarter of 2023, which lowered the regulatory under-recovery deferral adjustment and resulted in an improvement to operating cash flows of $53.1 million. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Liabilities, Net on the statements of cash flows. These favorable impacts were partially offset by the timing of other working capital items, an $11.8 million increase in cash payments to vendors for storm costs, a $4.7 million increase in cost of removal expenditures, the timing of cash collections on our accounts receivable, and a $3.0 million decrease in income tax refunds received in 2024 compared to 2023.

NSTAR Electric had cash flows provided by operating activities of $152.6 million for the three months ended March 31, 2024, as compared to $140.8 million in the same period of 2023. The increase in operating cash flows was due primarily to a decrease in regulatory under-recoveries driven by the timing of collections for regulatory tracking mechanisms including net metering and energy efficiency costs, the timing of cash collections on our accounts receivable, and the timing of other working capital items. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows. These favorable impacts were partially offset by a $43.8 million increase in cash payments to vendors for storm costs, a $39.4 million decrease in operating cash flows due to income tax payments made in 2024 compared to income tax refunds received in 2023, and the timing of cash payments made on our accounts payable.

PSNH had cash flows provided by operating activities of $51.8 million for the three months ended March 31, 2024, as compared to cash flows used in operating activities of $72.9 million in the same period of 2023. The increase in operating cash flows was due primarily to a decrease in regulatory under-recoveries driven by the timing of collections for regulatory tracking mechanisms including energy supply and stranded costs, the timing of cash collections on our accounts receivable, and a $12.9 million decrease in cash payments to vendors for storm costs. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets/(Liabilities), Net on the statements of cash flows. These favorable impacts were partially offset by the timing of cash payments made on our accounts payable, an $11.7 million decrease in income tax refunds received in 2024 compared to 2023, and an $8.0 million increase in cost of removal expenditures.

For further information on CL&P's, NSTAR Electric's and PSNH's liquidity and capital resources, see "Liquidity" and "Business Development and Capital Expenditures" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.