CONNECTICUT LIGHT & POWER CO
For the period ended Jun 30, 2026. Filed Aug 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 3, 2026
ES$69.84-2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-032278
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0001628280-26-051906
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 170 previous paragraphs and 197 current paragraphs.
88 unchanged; 69 reworded; 38 added; 13 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
•We earned $53.7 million, or $0.14 per share, in the second quarter of 2026, compared with $352.7 million, or $0.96 per share, in the second quarter of 2025. We earned $660.5 million, or $1.75 per share, in the first half of 2026, compared with $903.5 million, or $2.45 per share, in the first half of 2025.
Current report
•On June 30, 2026, Eversource completed the sale of Aquarion consistent with all regulatory terms and requirements. The total transaction purchase price was approximately $2.4 billion, which included approximately $650 million of long-term debt that was either repaid at closing or transferred to the buyer. The adjusted net equity proceeds of approximately $1.7 billion will be used to reduce Eversource parent debt. As a result of the sale, Eversource recognized a non-cash, non-recurring charge, after-tax charge of $111.4 million in the second quarter of 2026.
Current report
•On July 14, 2026, CL&P filed an application with PURA to request an increase in base distribution rates to provide additional revenues of approximately $451 million annually, exclusive of the impact of catastrophic storms and pre‑staging events occurring between January 2018 and March 2025. As part of the rate case, CL&P proposes to implement a performance-based multi-year rate plan that would adjust rates annually over a four-year term from July 1, 2027 through June 30, 2031, with a corresponding stay out provision. The plan includes a revenue-cap formula adjusted for inflation, a supplemental capital adjustment formula to support CL&P’s planned capital infrastructure improvements, an exogenous events recovery mechanism, performance metrics and an earnings sharing mechanism, among other proposals. The proposed revenue requirement includes a regulatory return on equity of 10.25 percent with a 53.86 percent common equity ratio for CL&P’s capital structure. A decision by PURA is expected by June 29, 2027.
Current report
•On July 29, 2026, PURA issued a final decision on CL&P’s request for recovery of deferred storm costs totaling $974.2 million plus carrying costs. PURA approved the vast majority of requested storm costs totaling $869.4 million of catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023 and postponed review of $63.3 million of storm costs to a future proceeding. The final decision also authorized the accrual of carrying costs on unrecovered, approved storm costs beginning on the date of the final decision. CL&P is currently evaluating the impact of costs not allowed for recovery in the decision and potential legal courses of action. The impact of the decision will be recorded in the third quarter of 2026.
Current report
(1) In the second quarter of 2026, we recorded a non-cash, after-tax charge of $111.4 million resulting from the loss on the June 30, 2026 sale of Aquarion. For further information, see the “Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Current report
(2) In the second quarter of 2026, we recorded a pre-tax charge of $194 million ($164 million after-tax) associated with increasing our offshore wind contingent liability for expected future payments under the terms of the 2024 sale agreement with GIP for the Revolution Wind project. For further information, see the “Offshore Wind Contingent Liability” section below included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Current report
Our electric transmission segment earnings decreased $24.3 million in the second quarter of 2026, as compared to the second quarter of 2025, due primarily to the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent, as well as higher interest expense, partially offset by continued investment in our transmission infrastructure.
Current report
Our natural gas distribution segment earnings decreased $5.6 million in the second quarter of 2026, as compared to the second quarter of 2025, due primarily to the absence of a benefit in 2025 from previously expensed costs allowed for recovery, higher depreciation and higher property taxes, partially offset by higher revenues from the base distribution rate increase effective November 1, 2025 at Yankee Gas and from capital tracking mechanisms due to continued investments in natural gas infrastructure.
Current report
Our water distribution segment earnings decreased $114.2 million and $111.4 million in the second quarter and the first half of 2026, respectively, as compared to the second quarter and the first half of 2025, due primarily to the $111.4 million after-tax charge on the sale of Aquarion. Excluding this charge, our water distribution segment earnings decreased $2.8 million in the second quarter of 2026, as compared to the second quarter of 2025, due primarily to higher operations and maintenance expense and higher depreciation, partially offset by higher revenues. Excluding this charge, water distribution segment earnings remained flat in the first half of 2026, as compared to the first half of 2025. For further information on the sale, see the “Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Current report
Offshore Wind Contingent Liability: On September, 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind Projects to Global Infrastructure Partners (GIP). Eversource recorded a contingent liability relating to expected future payments to GIP as part of the sale of the South Fork Wind and Revolution Wind projects. As part of the definitive agreement with GIP, Eversource is responsible for certain post-closing purchase price adjustments. This obligation included an expected cost overrun sharing obligation, an expected obligation to maintain GIP’s internal rate of return, and an obligation for other future costs.
Current report
In the second quarter of 2026, Eversource received revised projections of total construction costs associated with Revolution Wind, which included quantifiable cost increases. As a result, Eversource recognized a pre-tax charge of $194 million in the second quarter of 2026 to increase the liability for purchase price adjustments associated with the Revolution Wind project. Payments made in the first half of 2026 and 2025 of $233.0 million and $68.6 million, respectively, reduced the contingent liability and were reflected within investing activities on the statement of cash flows. Payments made in 2026 related to cost overruns for the Revolution Wind project paid to GIP and payment in 2025 related to a purchase price adjustment payment for the South Fork Wind project paid to GIP.
Current report
Eversource continually evaluates the contingent liability and will reassess the balance as new information becomes available. Based on most recent updates on the construction status of Revolution Wind and other information currently available, Eversource believes that the contingent liability balance as of June 30, 2026 is an adequate estimate to cover this contingent liability for purchase price adjustments. As of June 30, 2026 and December 31, 2025, the contingent liability totaled $409.2 million and $448.2 million, respectively, and is recorded as a current liability on Eversource’s balance sheets, based upon the timing of expected payments to GIP.
Current report
Eversource relies on information that it receives from the project owners for the construction-related, delay-related, and insurance-related costs of Revolution Wind. Eversource uses its judgment to adjust, as needed, its expected obligations to GIP while construction of Revolution Wind is completed.
Current report
New information or future developments that arise as the construction of Revolution Wind progresses will necessitate a reassessment of the estimated liability to GIP. The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted.
Current report
It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, there could be additional losses and increases to the offshore wind contingent liability, which could be material. The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.
Current report
Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events. Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the timing and extent of construction delays, which would impact the economics associated with the purchase price adjustment, and the eligibility for federal investment tax credits for Revolution Wind at a value lower than assumed and included in the purchase price. The purchase price of Revolution Wind included the sales value related to a 40 percent level of federal investment tax credits. A change in the expected value or qualification of investment tax credit adders could result in a significant loss in a future period.
Current report
Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.
Current report
The June 30, 2026 Cash and Cash Equivalents balance includes approximately $1.7 billion of net proceeds received from the June 30, 2026 sale of Aquarion. The Company expects to utilize the net proceeds to reduce Eversource parent debt.
Current report
In connection with the sale of Aquarion on June 30, 2026, $612.4 million of long-term debt was repaid at closing.
Current report
As a result of the Yankee Gas long-term debt issuances on July 15, 2026, $90.0 million of current portion of long-term debt was reclassified to Long-Term Debt on Eversource parent’s balance sheet as of June 30, 2026.
Current report
Credit Ratings: On July 6, 2026, Moody’s revised the outlook of both Eversource parent and NSTAR Electric from negative to stable due to the closing of the sale of Aquarion and the approval of storm costs in Connecticut.
Current report
ISO-NE Longer-Term Transmission Planning RFP: On March 31, 2025, ISO-NE issued the 2025 Longer-Term Transmission Planning Request for Proposal (RFP) to address longer-term needs that the New England States Committee on Electricity (NESCOE) identified in a December 13, 2024 request for ISO-NE to issue a longer-term transmission RFP. Following a full evaluation of the transmission tariff and RFP requirements, on July 22, 2026, ISO-NE selected a joint proposal submitted by Eversource (for NSTAR Electric and PSNH) and Central Maine Power as the preliminary preferred solution. This transmission project is designed to increase transmission capacity between Maine and New Hampshire while strengthening the transmission interface between northern and southern New England and accommodating interconnection of at least 1,200 MW of onshore wind. Eversource’s share of the total estimated $2.2 billion project cost is approximately $700 million and the project has an anticipated in-service date in 2032. After stakeholder input due in August 2026, ISO-NE will select the preferred solution for development and NESCOE will then determine whether to allow the process to proceed.
Current report
On June 30, 2026, Eversource completed the sale of Aquarion consistent with all regulatory terms and requirements. The total transaction purchase price was approximately $2.4 billion, which included approximately $650 million of long-term debt that was either repaid at closing or transferred to the buyer. The adjusted net equity proceeds of approximately $1.7 billion will be used to reduce Eversource parent debt.
Current report
FERC Connecticut RTO Adder Complaint: On June 11, 2026, DEEP, Connecticut Office of Consumer Counsel, PURA, and the Connecticut Attorney General (collectively, the CT Agencies) filed a complaint at FERC against CL&P and The United Illuminating Company, requesting FERC to: (1) find that CL&P’s and UI’s collection of the 50-basis points ROE adder for Regional Transmission Organization (RTO) participation is unjust and unreasonable because Connecticut law now requires RTO membership and such an incentive should not be awarded for behavior required by law; (2) direct tariff revisions to eliminate the adder in the formula rate; and (3) direct refunds of adder-related charges imposed after the refund effective date of the complaint. On June 29, 2026, CL&P and UI filed a complaint in U.S. District Court in Connecticut asserting that Connecticut Public Act 25-173 is unconstitutional in requiring ISO-NE membership. On July 1, 2026, CL&P and UI filed a motion requesting the CT RTO Adder Complaint proceeding be held in abeyance until the U.S. District Court proceeding in Connecticut is resolved. We cannot predict the outcome of the complaints at this time.
Current report
CL&P Distribution Rate Case: On July 14, 2026, CL&P filed an application with PURA to request an increase in base distribution rates. The application proposed to amend rates to provide additional revenues of approximately $451 million annually, exclusive of the impact of catastrophic storms and pre‑staging events occurring between January 2018 and March 2025. The total revenue deficiency inclusive of the impact of these storm costs is approximately $727 million. In connection with storm cost recovery proposals, CL&P is requesting (1) the securitization of storm restoration costs incurred for catastrophic weather and pre-staging events between 2018 and 2023 (PURA is currently evaluating this proposal under separate proceedings) and (2) a prudence review of storm restoration costs incurred for catastrophic weather events between January 2024 and March 2025. Amounts deemed prudent through this review would be recovered from customers through a newly proposed storm cost recovery adjustment factor, designed to provide for annual reviews of deferred storm costs, allowing for more consistent and timely cost recovery while mitigating potential rate shock for customers.
Current report
As part of the rate case, CL&P proposes to implement a performance-based multi-year rate plan that would adjust rates annually over a four-year term from July 1, 2027 through June 30, 2031, with a corresponding stay out provision. The plan includes a revenue-cap formula adjusted for inflation, a supplemental capital adjustment formula to support CL&P’s planned capital infrastructure improvements, an exogenous events recovery mechanism, performance metrics and an earnings sharing mechanism, among other proposals. The proposed revenue requirement includes a regulatory return on equity of 10.25 percent with a 53.86 percent common equity ratio for CL&P’s capital structure. PURA is permitted up to 350 days in all to investigate the proposed rates and issue a final order. A decision by PURA is expected by June 29, 2027.
Current report
On July 29, 2026, PURA issued a final decision approving $869.4 million of prudently incurred catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023 and postponing review of $63.3 million of storm costs to a future proceeding. PURA did not approve the recovery of carrying costs from the date the deferred storm costs were incurred through the date of the final decision. PURA approved the accrual of carrying costs on the unrecovered, approved storm costs beginning on the date of the final decision through the date of securitization or other recovery authorized in the CL&P distribution rate case proceeding. Total approved storm costs to be considered by PURA for future securitization are $667.9 million, which excludes $101.5 million of costs that were previously collected from customers through base distribution rates and $100 million approved in the April 2026 RAM proceeding to be collected through the CTA rate from May 1, 2026 through April 30, 2027. CL&P is currently evaluating the impact of costs not allowed for recovery in the decision and potential legal courses of action. The impact of the decision will be recorded in the third quarter of 2026.
Current report
CL&P Advanced Metering Infrastructure Filing: On January 3, 2024, PURA issued a final decision regarding CL&P’s Advanced Metering Infrastructure (AMI) investment and implementation plan. In CL&P’s view, the final decision did not provide a reasonable path for cost recovery and would delay implementation. In addition, in CL&P’s view, the final decision modifies the prudence standard for recovery of costs expended on the project, improperly linking recovery to outcomes not known at the outset of the project. On January 18, 2024, CL&P submitted a motion for reconsideration to PURA, asking that the agency modify these aspects of the decision, which PURA subsequently denied on February 14, 2024. On March 6, 2024, CL&P filed written comments citing four major problems associated with PURA’s guidelines for recovery of the costs of AMI implementation, which if not addressed, represent obstacles to AMI implementation in Connecticut. On April 16, 2024, PURA issued a procedural order directing Eversource and inviting all parties and intervenors to submit pre-filed testimony pertaining to AMI.
Current report
On October 17, 2024, PURA issued a proposed final decision on recovery of the costs for AMI implementation. On October 31, 2024, CL&P filed written exceptions focused on three main aspects of the proposed decision, which included (1) clarifying the prudence standard to be used in evaluating AMI investments, (2) timing of prudency reviews, and (3) cost recovery related to incremental O&M expenses. On December 4, 2024, PURA issued a final decision on the recovery of costs for AMI implementation. On December 9, 2024, CL&P filed a petition for reconsideration because PURA had not fully resolved the issues CL&P raised in its October 31, 2024 written exceptions. On November 25, 2025, PURA issued correspondence in connection with CL&P’s October 31, 2025 annual AMI compliance filing asserting that it was no longer evaluating the merits of CL&P’s petition for reconsideration, that PURA approval is not required for CL&P to deploy AMI, and that CL&P may invest in AMI at any time and seek cost recovery under the AMI tariff after meeting established filing criteria. On December 19, 2025, CL&P filed a motion responding to the legal issues raised in PURA’s correspondence and requested that PURA reopen the prior proceeding for the purpose of lawfully acting upon CL&P’s December 9, 2024 petition for reconsideration and resolving the open questions on AMI cost recovery.
Current report
On July 1, 2026, PURA issued a final decision rescinding the previously approved December 2024 interim AMI cost recovery tariff framework resulting from the delay in AMI implementation, CL&P’s impending base distribution rate proceeding and the passing of legislation permitting the securitization of AMI costs. On July 14, 2026, CL&P formally submitted its AMI implementation and cost recovery proposals in conjunction with its base distribution rate case filing. In the rate case proceeding, CL&P requested approval of a new cost recovery framework to support accelerated AMI deployment, leveraging a proposed PBR capital funding mechanism and future securitization for incremental O&M and stranded legacy meter costs. On July 21, 2026, CL&P petitioned for a separate, uncontested proceeding to secure timely authorization to advance the physical deployment schedule. CL&P witnesses filed testimony, including an updated estimate of $1.3 billion for capital costs and operating expenses. CL&P requested a determination from PURA by November 2026.
Current report
NSTAR Gas Distribution Rates: NSTAR Gas’ PBR mechanism allows for an annual adjustment to base distribution rates for inflation and exogenous events. On June 15, 2026, NSTAR Gas submitted its annual PBR Adjustment filing reflecting a $19.8 million increase to base distribution rates, of which, $19.7 million was associated with an inflation-based adjustment and the remainder for a prior period exogenous cost adjustment, for effect on November 1, 2026. DPU approval is expected by October 30, 2026.
Current report
New Hampshire:
Current report
PSNH Distribution Rates: PSNH’s alternative regulatory framework allows three formulaic annual revenue adjustments on August 1, 2026, 2027 and 2028. On April 1, 2026, PSNH submitted its first annual alternative regulatory framework filing reflecting a calculated $23.6 million in supplemental revenue support to be included in base distribution rates, for effect August 1, 2026. On July 21, 2026, the NHPUC approved this filing.
Current report
The increase at Electric Distribution for the three and six month periods is due primarily to base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025. The increase at Natural Gas Distribution for the three and six month periods is due primarily to base distribution rate increases effective November 1, 2025 at Yankee Gas, NSTAR Gas and EGMA, and also a shift in recovery of certain GSEP investments from tracked revenues into base rates, which does not impact total revenues or earnings.
Current report
Other delivery: The decrease in other delivery for the three and six month periods at the natural gas distribution business is due primarily to a shift in recovery of certain GSEP investments into base rates, which does not impact total revenues or earnings.
Current report
Sale of Aquarion relates to a charge of $111.4 million associated with the loss on the sale of the Aquarion water distribution business. See “Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information.
Current report
Interest Expense increased for thethree and six month periods due to the following:
Current report
Loss on Offshore Wind relates to the pre-tax charge of $194 million in the second quarter of 2026 associated with increasing our offshore wind contingent liability for expected future payments associated with the Revolution Wind project. See “Earnings Overview - Offshore Wind Contingent Liability” included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information.
Removed paragraphs (13)
Previous report
•adequacy, contamination of, or disruption in, our water supplies,
Previous report
•On March 19, 2026, FERC issued an order in the NETO ROE proceedings, attempting to resolve all four pending complaints dating back to 2011. In the decision, FERC applied a revised ROE methodology and found the NETOs’ then-existing base ROE of 11.14 percent was unjust and unreasonable and established a replacement base ROE of 9.57 percent, with an incentive cap of 12.09 percent, for the first complaint period (October 1, 2011 through December 31, 2012), and prospectively effective October 16, 2014. FERC directed the NETOs to issue refunds with interest for applicable refund periods, subsequently extended the refund deadline to May 20, 2027, and dismissed the remaining complaints. As a result of the FERC decision, we determined that a loss is probable and estimated a range of reasonably possible pre-tax losses of $60.4 million to $932 million. We recorded a current regulatory liability of $60.4 million (pre-tax) as of March 31, 2026, which represents the low end of the range as no amount within this range is considered a better estimate. The NETOs have filed a request for rehearing with FERC. Eversource and Avangrid have filed a joint motion requesting a stay of the retroactive refund obligation applicable to the period October 16, 2014 through March 19, 2026 with the U.S. Court of Appeals for the D.C. Circuit Court. While we continue to challenge the March 19, 2026 FERC decision, we cannot predict the ultimate outcome of these proceedings.
Previous report
•On April 30, 2026, the NETOs submitted a Federal Power Act Section 205 filing to FERC proposing a replacement base ROE of 11.39 percent, resulting in a cap of 12.89 percent including incentives, based on current market data utilizing FERC’s revised ROE methodology. The NETOs requested an effective date of June 30, 2026. FERC has 60 days to act on the rate proposal and can suspend the proposed rate change for up to five months after the initial 60-day notice. If a settlement is not reached among the parties to the FERC proceeding, Eversource would begin billing the proposed ROE by December 2026 on a subject-to-refund basis after the completion of a hearing on the matter.
Previous report
•On March 25, 2026, PURA approved the sale of the Aquarion water business to the Aquarion Water Authority following remand from the Connecticut Superior Court. The closing of the transaction remains subject to appeals, regulatory processes, and customary closing conditions.
Previous report
Our water distribution segment earnings increased $2.8 million in the first quarter of 2026, as compared to the first quarter of 2025, due primarily to higher revenues, partially offset by higher depreciation expense.
Previous report
Credit Ratings: On February 23, 2026, the junior subordinated debt of Eversource parent was assigned new ratings from S&P of BBB-, Moody’s of Baa3 and Fitch of BB+.
Previous report
On November 19, 2025, PURA denied the application to approve the sale, finding that the transaction did not meet managerial suitability and responsibility requirements due to concerns with governance and oversight structure over Aquarion and its consumer advocate. On December 2, 2025, the denial was appealed to the Connecticut Superior Court. On January 15, 2026, the Court issued its decision, sustaining the appeal and remanding back to PURA, finding that PURA acted illegally in denying the application as those disputed governance elements were mandated under Connecticut law. The Court upheld that operational aspects of the consumer advocate were within PURA’s statutory authority and regulatory discretion.
Previous report
Despite PURA approval of the transaction, legal opposition, including the potential for appeals, introduces significant uncertainty regarding the ultimate timing and consummation of the sale. As a result, the Company cannot assert that the sale of Aquarion is probable and concluded that the held‑for‑sale criteria were not met as of March 31, 2026. Closing of the transaction remains subject to finalization of working capital and other transaction-related adjustments and final closing costs, which could result in a loss recognized either upon meeting held for sale classification and measurement or at the time of sale.
Previous report
Yankee Gas Distribution Rate Case: On March 11, 2026, PURA issued a final decision on its December 15, 2025 reconsideration in the Yankee Gas distribution rate case, increasing Yankee Gas' approved revenue requirement to $806.7 million annually, effective November 1, 2025. The $4.4 million increase reflects an authorized regulatory ROE of 9.48 percent, including removal of a 16 basis point ROE reduction, and the correction of certain computational errors identified in their November 5, 2025 distribution rate case final decision. The approved revenue requirement includes a previously recorded rate credit of $37.4 million plus carrying charges for non-firm margin credits over three years beginning November 1, 2025. Excluding the rate credit, the distribution rate increase totaled $100.1 million. PURA reaffirmed the disallowance of certain capitalized employee compensation costs. It also clarified that while there will be an annual cap on the contemporaneous cost recovery of aging infrastructure replacement through the Distribution Integrity Management Program rate tracking mechanism, any costs spent in excess of that annual cap will be deferred for recovery to the next rate case. The final decision on reconsideration resulted in a net pre-tax benefit to earnings of $3.2 million at Yankee Gas in the first quarter of 2026.
Previous report
Aquarion Water Company of Connecticut Distribution 2026 Rate Case: On March 2, 2026, Aquarion Water Company of Connecticut (AWC-CT) filed an application with PURA to amend its existing rate schedules to address an operating revenue deficiency. AWC-CT’s rate application requested approval of an increase to authorized revenues of $87.6 million for the rate year beginning November 25, 2026, comprised of a proposed base rate increase of $61.4 million inclusive of capital projects placed into service between 2022 and June 2026 and a surcharge revenue requirement of $26.2 million inclusive of capital additions between July 2026 and June 2027. On April 21, 2026, PURA issued correspondence in this proceeding revising the application date to April 8, 2026 and establishing a procedural schedule for the docket. Proposed and final decisions are expected from PURA on November 17, 2026 and December 23, 2026, respectively.
Previous report
Massachusetts 2026 Winter Bill Relief Program: In February 2026, NSTAR Electric, NSTAR Gas and EGMA implemented a winter electric and natural gas bill relief program, as approved by the DPU. Under this program, in February and March 2026, Massachusetts residential electric customers received an aggregate bill reduction of approximately 25 percent, a portion of which was funded by the Commonwealth of Massachusetts, and residential natural gas customers received an aggregate bill reduction of approximately 10 percent. These bill credits were deferred and will be recovered between April and December 2026 for electric customers and between May and October 2026 for natural gas customers. No carrying charges will be collected. The bill relief program results in delayed collections from customers, impacting the timing of cash flows. Proceeds of $84.1 million were received by NSTAR Electric from the Commonwealth of Massachusetts in January 2026 and reduced regulatory assets recorded on its balance sheet in the first quarter of 2026.
Previous report
Massachusetts: On March 16, 2026, Massachusetts Governor Healey signed Executive Order No. 654, which establishes a statewide plan to expand energy supply, affordability, and reliability. The order sets targets of ten GW of new energy resources and five GW of energy storage online or under development by 2035. Resources includes solar, wind, storage, nuclear, geothermal, natural gas, and demand‑side resources such as energy efficiency, virtual power plants, and managed EV charging. The order directs state agencies to streamline permitting, reform interconnection and procurement processes, diversify fuel supply, and strengthen grid resilience to ensure Massachusetts can meet projected load growth while keeping energy affordable and reliable. It directs the DPU to require electric distribution companies to accelerate interconnection, implement flexible interconnection and cost-recovery mechanisms, and advance time-of-use rates and distributed energy resources. The order also promotes coordination with utilities to streamline solar and storage deployment and modernize grid infrastructure. For natural gas, it underscores the continued role of existing infrastructure, while requiring evaluation of gas supply and storage capacity and delivery capabilities to promote energy affordability and reliability.
Previous report
Interest Expense increased for thethree month period due to the following:
Reworded paragraphs (69)
Previous wording
The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, as well as the Eversource 2025 combined Annual Report on Form 10-K. References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."
Current wording
The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, the combined Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as the Eversource 2025 combined Annual Report on Form 10-K. References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries. All per-share amounts are reported on a diluted basis. The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."
Previous wording
The only common equity securities that are publicly traded are common shares of Eversource. Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our first quarter 2026 earnings and EPS excluding a charge for the March 2026 FERC decision in the FERC base ROE complaints. EPS by business is also a non-GAAP financial measure and is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in our assets and liabilities as a whole.
Current wording
The only common equity securities that are publicly traded are common shares of Eversource. Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our 2026 earnings and EPS excluding a charge on the sale of the Aquarion water distribution business, a charge associated with increasing our offshore wind contingent liability, and a charge related to the March 2026 FERC decision in the FERC base ROE complaints. EPS by business is also a non-GAAP financial measure and is calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in our assets and liabilities as a whole.
Previous wording
We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our results without including this item. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the impact of the FERC ROE refund charge is not indicative of our ongoing costs and performance. We view this charge as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of this item on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.
Current wording
We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our results without including these items. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the charge on the sale of the Aquarion water distribution business, the charge associated with increasing our offshore wind contingent liability, and the charge related to the March 2026 FERC decision in the FERC base ROE complaints are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not indicators of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.
Previous wording
We do not provide a reconciliation of guidance from non-GAAP recurring EPS to the most directly comparable GAAP measure of EPS because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our Net Income Attributable to Common Shareholders or non-GAAP recurring earnings for the year ending December 31, 2026. These items are uncertain, depend on many factors and could have a material impact on our Net Income Attributable to Common Shareholders and non-GAAP recurring earnings for the year ending December 31, 2026, and therefore cannot be made available without unreasonable effort.
Current wording
We do not provide a reconciliation of guidance from non-GAAP recurring earnings or non-GAAP recurring EPS to the most directly comparable GAAP measures because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our Net Income Attributable to Common Shareholders or EPS for the year ending December 31, 2026. These items are uncertain, depend on many factors and could have a material impact on our Net Income Attributable to Common Shareholders and EPS for the year ending December 31, 2026, and therefore cannot be made available without unreasonable effort.
Previous wording
•physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems,
Current wording
•physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric and natural gas distribution systems,
Previous wording
Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and EGMA (natural gas utilities) and Aquarion (water utilities). Eversource is organized into the electric distribution, electric transmission, natural gas distribution, and water distribution reportable segments.
Current wording
Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities) and Yankee Gas, NSTAR Gas and EGMA (natural gas utilities). On June 30, 2026, Eversource completed the sale of the Aquarion water distribution business, which comprised its water distribution reportable segment. Eversource is organized into the electric distribution, electric transmission, and natural gas distribution reportable segments, and the water distribution reportable segment until the Aquarion sale.
Previous wording
•We earned $606.8 million, or $1.61 per share, in the first quarter of 2026, compared with $550.8 million, or $1.50 per share, in the first quarter of 2025. Our first quarter 2026 results include an after-tax charge of $43.9 million, or $0.12 per share, resulting from FERC’s March 19, 2026 order in the NETO ROE complaint proceedings, which was recorded within the Transmission segment. Excluding this charge, our non-GAAP earnings were $650.7 million, or $1.73 per share in the first quarter of 2026.
Current wording
•Our second quarter of 2026 and first half of 2026 results include a non-cash, after-tax charge of $111.4 million, or $0.30 per share, resulting from a loss on the June 30, 2026 sale of Aquarion, which was recorded within the Water Distribution segment. Those results also include an after-tax charge of $164.0 million, or $0.43 per share, resulting from increasing our offshore wind contingent liability for expected future payments under a 2024 sale agreement of our previous offshore wind investments. This charge was recorded within Eversource Parent and Other Companies. Our first half of 2026 results also include an after-tax charge of $43.9 million, or $0.12 per share, for estimated refunds resulting from FERC’s March 19, 2026 order in the NETO ROE complaint proceedings, which was recorded within the Transmission segment. Excluding these charges, our non-GAAP earnings were $329.1 million, or $0.87 per share, in the second quarter of 2026 and $979.8 million, or $2.60 per share, in the first half of 2026.
Previous wording
•We revised 2026 non-GAAP earnings guidance to be in the range of $4.57 per share and $4.72 per share taking into account the impact of the prospective reduction to the transmission ROE resulting from the March 19, 2026 FERC order and the potential Aquarion sale. We also expect that our cumulative long-term earnings per share growth rate will be within the range of 5 to 7 percent through 2030, using the adjusted 2026 non-GAAP earnings guidance mid-point of $4.65 per share as the base year. We expect annual earnings growth towards the upper half of the long-term guidance by 2028.
Current wording
•We reaffirmed our projection to earn within a 2026 non-GAAP recurring earnings guidance range of between $4.57 per share and $4.72 per share, which includes the impact of the prospective reduction to the transmission ROE resulting from the March 19, 2026 FERC order and the absence of Aquarion earnings in the second half of the year. We also reaffirmed that our cumulative long-term earnings per share growth rate will be within the range of 5 to 7 percent through 2030, using the adjusted 2026 non-GAAP earnings guidance mid-point of $4.65 per share as the base year. We expect annual earnings growth towards the upper half of the long-term guidance by 2028.
Previous wording
•Cash flows provided by operating activities totaled $1.32 billion in the first quarter of 2026, compared with $1.04 billion in the first quarter of 2025. Investments in property, plant and equipment totaled $1.01 billion in the first quarter of 2026, compared with $1.01 billion in the first quarter of 2025.
Current wording
•Cash flows provided by operating activities totaled $2.41 billion in the first half of 2026, compared with $2.10 billion in the first half of 2025. Investments in property, plant and equipment totaled $2.02 billion in the first half of 2026, compared with $2.05 billion in the first half of 2025.
Previous wording
•Cash totaled $270.2 million as of March 31, 2026, compared with $135.4 million as of December 31, 2025. Our available borrowing capacity under our commercial paper programs totaled $2.12 billion as of March 31, 2026.
Current wording
•Cash and Cash Equivalents totaled $1.82 billion as of June 30, 2026, compared with $135.4 million as of December 31, 2025. Our available borrowing capacity under our commercial paper programs totaled $2.16 billion as of June 30, 2026.
Previous wording
•In the first quarter of 2026, we issued $1.50 billion of new long-term debt and we repaid $250 million of long-term debt.
Current wording
•In the first half of 2026, we issued $2.40 billion of new long-term debt and we repaid $1.62 billion of long-term debt.
Previous wording
•On May 6, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on June 30, 2026 to shareholders of record as of May 18, 2026. On January 27, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, paid on March 31, 2026 to shareholders of record as of March 5, 2026.
Current wording
•On May 6, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on June 30, 2026 to shareholders of record as of May 18, 2026.
Previous wording
(1) In the first quarter of 2026, we recorded a pre-tax charge of $60.4 million as a result of the March 19, 2026 FERC decision in the FERC base ROE complaints. The charge reflects estimated refunds associated with the fifteen-month first complaint period, including interest accrued through March 31, 2026. For further information, see the “FERC Regulatory Matters” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Current wording
(3) In the first half of 2026, we recorded a pre-tax charge of $60.4 million ($43.9 million after-tax) as a result of the March 19, 2026 FERC decision in the FERC base ROE complaints. The charge reflects a liability recorded for refunds associated with the fifteen-month first complaint period (October 1, 2011 – December 31, 2012), including interest accrued from the refund period through March 31, 2026. For further information, see the “FERC Regulatory Matters” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Previous wording
The impact of higher shares outstanding resulted in $0.04 earnings per share dilution in the first quarter of 2026, as compared to the first quarter of 2025.
Current wording
The impact of higher shares outstanding resulted in $0.04 earnings per share dilution in the first half of 2026, as compared to the first half of 2025.
Previous wording
Our electric distribution segment earnings increased $14.4 million in the first quarter of 2026, as compared to the first quarter of 2025, due primarily to higher revenues from base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025, from CL&P's capital tracking mechanism due to increased electric system improvements and from NSTAR Electric’s Advanced Metering Infrastructure (AMI) capital tracking mechanism. Those earnings increases were partially offset by higher interest expense, higher depreciation expense, higher operations and maintenance expense and higher property tax expense.
Current wording
Our electric distribution segment earnings increased $8.9 million and $23.1 million in the second quarter and the first half of 2026, respectively, as compared to the second quarter and the first half of 2025, due primarily to higher revenues from base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025, and higher revenues from CL&P’s capital tracking mechanism due to increased electric system improvements and NSTAR Electric’s Advanced Metering Infrastructure (AMI) capital tracking mechanism. These benefits were partially offset by higher interest expense, higher depreciation and higher property taxes.
Previous wording
Our electric transmission segment earnings decreased $19.0 million in the first quarter of 2026, as compared to the first quarter of 2025, due primarily to the $43.9 million after-tax charge for the March 19, 2026 FERC decision in the FERC base ROE complaints. Excluding this charge, our electric transmission segment earnings increased $24.9 million in the first quarter of 2026, as compared to the first quarter of 2025, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure andhigher non-refundable transmission revenues, partially offset by higher interest expense.
Current wording
Our electric transmission segment earnings decreased $43.4 million in the first half of 2026, as compared to the first half of 2025, due primarily to the first quarter 2026 after-tax charge of $43.9 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints in which the Company recorded a liability for refunds for the fifteen-month first complaint period, including interest. Excluding this charge, our electric transmission segment earnings increased $0.5 million in the first half of 2026, as compared to the first half of 2025, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure and higher non-refundable transmission revenues, partially offset by the impact of the decrease in the allowed ROE from 10.57 percent to 9.57 percent and higher interest expense.
Previous wording
Our natural gas distribution segment earnings increased $76.9 million in the first quarter of 2026, as compared to the first quarter of 2025, due primarily to higher revenues from base distribution rate increases effective November 1, 2025 at Yankee Gas, at NSTAR Gas and at EGMA, and from capital tracking mechanisms due to continued investments in natural gas infrastructure. Those earnings increases were partially offset by higher operations and maintenance, higher depreciation expense, higher property tax expense, a higher effective tax rate and higher interest expense.
Current wording
Our natural gas distribution segment earnings increased $71.4 million in the first half of 2026, as compared to the first half of 2025, due primarily to higher revenues from base distribution rate increases effective November 1, 2025 at Yankee Gas, NSTAR Gas and EGMA, and from capital tracking mechanisms due to continued investments in natural gas infrastructure. Those earnings increases were partially offset by higher operations and maintenance expense, higher depreciation, the absence of a benefit in 2025 from previously expensed costs allowed for recovery, higher property taxes, a higher effective income tax rate, and higher interest expense.
Previous wording
Eversource Parent and Other Companies: Eversource parent and other companies losses increased by $19.1 million in the first quarter of 2026, as compared to the first quarter of 2025, due primarily to higher income tax expense and higher interest expense.
Current wording
Eversource Parent and Other Companies: Eversource parent and other companies losses increased by $163.8 million and $182.7 million in the second quarter and the first half of 2026, respectively, as compared to the second quarter and the first half of 2025, due primarily to the after-tax charge of $164.0 million resulting from an increase to the offshore wind contingent liability. Excluding this charge, Eversource parent and other companies losses decreased by $0.2 million in the second quarter of 2026, as compared to the second quarter of 2025, and increased by $18.7 million in the first half of 2026, as compared to the first half of 2025. Results in both periods were driven by higher interest expense and a higher effective income tax rate.
Previous wording
Cash totaled $270.2 million as of March 31, 2026, compared with $135.4 million as of December 31, 2025.
Current wording
Cash and Cash Equivalents totaled $1.82 billion as of June 30, 2026, compared with $135.4 million as of December 31, 2025.
Previous wording
Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2025, the revolving credit facility’s termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.
Current wording
Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas and EGMA are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2025, the revolving credit facility’s termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.
Previous wording
Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time.
Current wording
Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time. As a result of the Yankee Gas long-term debt issuances on July 15, 2026, $62.3 million of commercial paper borrowings under the Eversource parent commercial paper program were reclassified to Long-Term Debt on Eversource parent’s balance sheet as of June 30, 2026. As a result of the EGMA long-term debt issuances on July 15, 2026, $39.0 million of commercial paper borrowings under the Eversource parent commercial paper program were reclassified to Long-Term Debt on Eversource parent’s balance sheet as of June 30, 2026.
Previous wording
Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, 2026 and December 31, 2025, there were intercompany loans from Eversource parent to PSNH of $79.4 million and $49.3 million, respectively. As of March 31, 2026, there were intercompany loans from Eversource parent to CL&P of $39.0 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Current wording
Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of June 30, 2026 and December 31, 2025, there were intercompany loans from Eversource parent to PSNH of $2.1 million and $49.3 million, respectively. As of June 30, 2026, there were intercompany loans from Eversource parent to CL&P of $107.0 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Previous wording
Long-Term Debt Issuance Authorizations: On March 3, 2026, PSNH filed a petition with the NHPUC requesting authorization to issue up to $200.0 million in long-term debt through December 31, 2026.
Current wording
Long-Term Debt Issuance Authorizations: On March 3, 2026, PSNH filed a petition with the NHPUC requesting authorization to issue up to $200.0 million in long-term debt through December 31, 2026. PSNH has utilized its long-term debt authorizations in place with the NHPUC. On July 17, 2026, NSTAR Electric filed a petition with the DPU requesting authorization to issue up to $3.2 billion in long-term debt through December 31, 2029.
Previous wording
(1)The Eversource Parent Series A Junior Subordinated Notes bear interest at a fixed rate of 6.10 percent per year from August 15, 2026 to August 14, 2031. Thereafter, the interest rate resets every five years, commencing on August 15, 2031, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.521 percent.
Current wording
(1)The Eversource Parent Series A Junior Subordinated Notes bear interest at a fixed rate of 6.10 percent per year from the issuance date of February 26, 2026 to August 14, 2031. Thereafter, the interest rate resets every five years, commencing on August 15, 2031, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.521 percent.
Previous wording
(2) The Eversource Parent Series B Junior Subordinated Notes bear interest at a fixed rate of 6.35 percent per year from August 15, 2026 to August 14, 2036. Thereafter, the interest rate resets every five years, commencing on August 15, 2036, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.325 percent.
Current wording
(2) The Eversource Parent Series B Junior Subordinated Notes bear interest at a fixed rate of 6.35 percent per year from the issuance date of February 26, 2026 to August 14, 2036. Thereafter, the interest rate resets every five years, commencing on August 15, 2036, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.325 percent.
Previous wording
Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $21.6 million of RRB principal payments and $6.1 million of interest payments in the first quarter of 2026, and paid $21.6 million of RRB principal payments and $6.9 million of interest payments in the first quarter of 2025.
Current wording
Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $21.6 million of RRB principal payments and $6.1 million of interest payments in the first half of 2026, and paid $21.6 million of RRB principal payments and $6.9 million of interest payments in the first half of 2025.
Previous wording
Common Share Issuances and Equity Distribution Agreement: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an ATM equity offering program. In 2025, we issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
Current wording
Common Share Issuances and Equity Distribution Agreement: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an ATM equity offering program. In 2025, we issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. In the second quarter of 2026, Eversource issued 289,044 common shares, which resulted in proceeds of $20.2 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
Previous wording
Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas and water. Cash flows provided by operating activities totaled $1.32 billion in the first quarter of 2026, compared with $1.04 billion in the first quarter of 2025. Operating cash flows were favorably impacted by a $65.0 million increase in income tax refunds received in 2026 compared to 2025, an increase in regulatory recoveries for retail and wholesale transmission costs driven by the timing of collections, a $26.2 million decrease in cost of removal expenditures, the timing of cash collections on our accounts receivable, a $17.9 million decrease in cash payments to vendors for storm costs, and the timing of other working capital items. These favorable impacts were partially offset by a decrease in regulatory recoveries for CL&P’s SBC and natural gas regul atory cost tracking mechanisms driven primarily by the timing of collections and the timing of cash payments made on our accounts payable. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization on the statements of cash flows. Additionally, under a winter electric bill relief program in Massachusetts, bill credits were provided to electric and natural gas customers in the first quarter of 2026, which resulted in delayed collections that will be recovered later in 2026, and were partially offset by proceeds of $84.1 million received from the Commonwealth of Massachusetts at NSTAR Electric in January 2026 to fund a portion of the bill relief.
Current wording
Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas. Cash flows provided by operating activities totaled $2.41 billion in the first half of 2026, compared with $2.10 billion in the first half of 2025. Operating cash flows were favorably impacted by the timing of cash collections on our accounts receivable, an improvement in regulatory recoveries for retail and wholesale transmission costs and natural gas regulatory cost tracking mechanisms driven by the timing of collections, a $59.0 million decrease in cost of removal expenditures, a $56.7 million increase in income tax refunds received in 2026 compared to 2025, and the timing of other working capital items. These favorable impacts were partially offset by a decrease in regulatory recoveries for CL&P’s non-bypassable FMCC and SBC cost tracking mechanisms driven primarily by the timing of collections, the timing of cash payments made on our accounts payable, and a $13.3 million increase in cash payments to vendors for storm costs. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization on the statements of cash flows. Additionally, under a winter electric bill relief program in Massachusetts, bill credits were provided to electric and natural gas customers in the first quarter of 2026, which resulted in delayed collections that will be recovered later in 2026, and were partially offset by proceeds of $84.1 million received from the Commonwealth of Massachusetts at NSTAR Electric in January 2026 to fund a portion of the bill relief.
Previous wording
On May 6, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on June 30, 2026 to shareholders of record as of May 18, 2026. On January 27, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, paid on March 31, 2026 to shareholders of record as of March 5, 2026. In the first quarter of 2026, we paid cash dividends of $290.0 million and issued non-cash dividends of $6.0 million in the form of treasury shares, totaling dividends of $296.0 million. In the first quarter of 2025, we paid cash dividends of $270.2 million and issued non-cash dividends of $6.0 million in the form of treasury shares, totaling dividends of $276.2 million.
Current wording
On May 6, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on June 30, 2026 to shareholders of record as of May 18, 2026. In the first half of 2026, we paid cash dividends of $580.3 million and issued non-cash dividends of $11.9 million in the form of treasury shares, totaling dividends of $592.2 million. In the first half of 2025, we paid cash dividends of $540.9 million and issued non-cash dividends of $11.8 million in the form of treasury shares, totaling dividends of $552.7 million.
Previous wording
In the first quarter of 2026, CL&P and PSNH paid $88.4 million and $38.9 million, respectively, in common stock dividends to Eversource parent.
Current wording
In the first half of 2026, CL&P, NSTAR Electric and PSNH paid $176.8 million, $331.0 million, and $127.9 million, respectively, in common stock dividends to Eversource parent.
Previous wording
Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense. In the first quarter of 2026, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $1.01 billion, $248.4 million, $381.7 million, and $110.5 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.
Current wording
Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense. In the first half of 2026, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $2.02 billion, $511.5 million, $773.8 million, and $197.4 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.
Previous wording
For our offshore wind contingent liability, payments made in the first quarter of 2026 reduced the liability and were reflected within investing activities on the statement of cash flows. Payments related to cost overruns for the Revolution Wind project paid to GIP.
Current wording
For our offshore wind contingent liability, payments made in the first half of 2026 and 2025 reduced the liability and were reflected within investing activities on the statement of cash flows. Payments made in 2026 related to cost overruns for the Revolution Wind project paid to GIP and payment in 2025 related to a purchase price adjustment payment for the South Fork Wind project paid to GIP.
Previous wording
Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP income/expense (all of which are non-cash factors), totaled $813.1 million in the first quarter of 2026, compared to $1.04 billion in the first quarter of 2025. These amounts included$67.7 million and $51.4 million in the first quarter of 2026 and 2025, respectively, at Eversource Service and The Rocky River Realty Company primarily for information technology and facilities upgrades.
Current wording
Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP income/expense (all of which are non-cash factors), totaled $1.97 billion in the first half of 2026, compared to $2.15 billion in the first half of 2025. These amounts included$101.4 million and $104.4 million in the first half of 2026 and 2025, respectively, at Eversource Service and The Rocky River Realty Company primarily for information technology and facilities upgrades.
Previous wording
Electric Transmission Business: Our consolidated electric transmission business capital expenditures decreased by $17.0 million in the first quarter of 2026, as compared to the first quarter of 2025. A summary of electric transmission capital expenditures by company is as follows:
Current wording
Electric Transmission Business: Our consolidated electric transmission business capital expenditures decreased by $5.6 million in the first half of 2026, as compared to the first half of 2025. A summary of electric transmission capital expenditures by company is as follows:
Previous wording
Greater Cambridge Energy Program: The Greater Cambridge Energy Program will construct Eversource’s first underground transmission substation in Cambridge, Massachusetts, along with associated transmission and distribution lines. The project will address the increased electric demand in the region, enhance the resiliency of the transmission system, and ensure a flexible grid to reliably serve customers. The flexibility to transmit and distribute mixed energy sources will support the decarbonization and electrification goals of both the City of Cambridge and the state of Massachusetts. The new 115/13.8-kV, 35,000 square foot substation will be located in an underground vault and includes three distribution power transformers supplying thirty-six distribution circuits. The project also includes five underground duct banks housing eight new 115-kV transmission lines. The Massachusetts Energy Facilities Siting Board approved the project on June 28, 2024. Environmental permits are acquired to support ongoing construction activities. Additional required permits for transmission line trenchless crossings, including a license from the MA DEP, are expected to be approved by the end of 2026. The initial in-service date for the project is June 2029, which includes two 115-kV transmission lines and the transmission portion of the substation. The first distribution circuits and substation distribution will be placed in-service by the end of 2029. The remaining transmission and distribution circuits will be placed in-service throughout 2030 and into 2031. The total estimated project cost is approximately $1.84 billion, with $1.38 billion allocated for transmission and $460 million for distribution. As of March 31, 2026, $231.6 million has been spent on the project, with $180.0 million for transmission and $51.6 million for distribution.
Current wording
Greater Cambridge Energy Program: The Greater Cambridge Energy Program will construct Eversource’s first underground transmission substation in Cambridge, Massachusetts, along with associated transmission and distribution lines. The project will address the increased electric demand in the region, enhance the resiliency of the transmission system, and ensure a flexible grid to reliably serve customers. The flexibility to transmit and distribute mixed energy sources will support the decarbonization and electrification goals of both the City of Cambridge and the state of Massachusetts. The new 115/13.8-kV, 35,000 square foot substation will be located in an underground vault and includes three distribution power transformers supplying thirty-six distribution circuits. The project also includes five underground duct banks housing eight new 115-kV transmission lines. The Massachusetts Energy Facilities Siting Board approved the project on June 28, 2024. Environmental permits are acquired to support ongoing construction activities. Additional required permits for transmission line trenchless crossings, including a license from the MA DEP, are expected to be approved by the end of 2026. The initial in-service date for the project is June 2029, which includes two 115-kV transmission lines and the transmission portion of the substation. The first distribution circuits and substation distribution will be placed in-service by the end of 2029. The remaining transmission and distribution circuits will be placed in-service throughout 2030 and into 2031. The total estimated project cost is approximately $1.84 billion, with $1.38 billion allocated for transmission and $460 million for distribution. As of June 30, 2026, $265.4 million has been spent on the project, with $208.0 million for transmission and $57.4 million for distribution.
Previous wording
Aquarion Sale Status: On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority. In June 2024, a Connecticut law chartered AWA and enabled it to acquire, own and operate Aquarion as a not-for-profit water authority. Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion in cash, which included approximately $1.6 billion for the equity and $800 million of net debt that will either be extinguished at closing or transferred to the buyer. Eversource plans to use the net proceeds from sale to pay down parent company debt.
Current wording
Sale of Aquarion Water Distribution Business: On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority. In June 2024, a Connecticut law chartered AWA and enabled it to acquire, own, and operate Aquarion as a not-for-profit water authority. The sale was approved by PURA on March 25, 2026.
Previous wording
On March 25, 2026, upon remand from the Connecticut Superior Court, PURA reversed its November 2025 decision and approved the sale of Aquarion to AWA. As conditions of PURA’s approval, prior to closing, Eversource will contribute $10 million into a rate stabilization fund for the future benefit of Aquarion customers and will return to customers revenues collected and held in escrow related to the 2022 rate case appeal.
Current wording
As a result of the sale, Eversource recognized a non-cash, after-tax charge of $111.4 million in the second quarter of 2026, which is presented separately within Operating Expenses on the Eversource statement of income. The carrying value of the water distribution reporting unit included net property, plant and equipment of approximately $2.0 billion and goodwill of $662.4 million that was derecognized upon sale. As conditions of PURA’s approval, Eversource contributed $10 million into a rate stabilization fund for the future benefit of Aquarion customers and returned to customers $5.8 million of revenues collected and held in escrow related to the 2022 rate case appeal. Additional transaction costs resulting from the sale were $29 million. The assets and liabilities associated with the sale of the water distribution business were previously reflected in the Water Distribution segment and reporting unit. Eversource has no post-closing obligations under the purchase and sale agreement with AWA other than a working capital true-up to the purchase price and no continued involvement with the divested subsidiaries.
Previous wording
The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, FERC issued Opinion No. 531-A and set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. The NETOs filed an appeal of this decision, which was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the D.C. Circuit Court). All amounts associated with Opinion No. 531-A on the first complaint period lowering the base ROE of 11.14 percent to 10.57 percent were refunded by 2015.
Current wording
The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, FERC issued Opinion No. 531-A and set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. The NETOs filed an appeal of this decision, which was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit Court). All amounts associated with Opinion No. 531-A on the first complaint period lowering the base ROE of 11.14 percent to 10.57 percent were refunded by 2015.
Previous wording
On April 20, 2026, the NETOs submitted to FERC a request for rehearing of Opinion No. 594 to reconsider its decision by highlighting several deficiencies including but not limited to the unlawful retroactive refund period with interest extended beyond the 15-month statutory relief authority granted in Section 206(b) of the Federal Power Act, the FERC not proving that the previously approved 11.14 percent base ROE was unjust and unreasonable as remanded by the D.C. Circuit Court, the flawed methodologies applied in setting the replacement 9.57 percent base ROE, failing to comply with the requirement for FERC to use data that is relevant to the current period at the time of the decision for the NETOs’ going forward ROE, and procedural issues related to overlapping complaints.
Current wording
On April 20, 2026, the NETOs submitted to FERC a request for rehearing of Opinion No. 594 highlighting several deficiencies including but not limited to the unlawful retroactive refund period with interest extended beyond the 15-month statutory relief authority granted in Section 206(b) of the Federal Power Act, the FERC not proving that the previously approved 11.14 percent base ROE was unjust and unreasonable as remanded by the D.C. Circuit Court, the flawed methodologies applied in setting the replacement 9.57 percent base ROE, failing to comply with the requirement for FERC to use data that is relevant to the current period at the time of the decision for the NETOs’ prospective ROE, and procedural issues related to overlapping complaints. On May 21, 2026, FERC issued an order denying the request for rehearing by operation of law. The NETOs filed an appeal of Opinion No. 594 and the FERC denial of rehearing by operation of law with the D.C. Circuit Court on June 5, 2026.
Previous wording
On April 30, 2026, the NETOs submitted a Federal Power Act Section 205 filing to FERC, which is a formal request by a public utility to change the ROE rate prospectively and requires the utility to prove the proposed change is just and reasonable. The NETOs proposed a replacement ROE of 11.39 percent, resulting in a cap of 12.89 percent including incentives, which is based on current market data utilizing FERC’s ROE methodology from Opinion No. 594. The NETOs requested an effective date of June 30, 2026. FERC has 60 days to act on the rate proposal and can suspend the proposed rate change for up to five months after the initial 60-day notice. If a settlement is not reached among the parties to the FERC proceeding, Eversource would begin billing the proposed ROE by December 2026 on a subject-to-refund basis after the completion of a hearing on the matter.
Current wording
On April 30, 2026, the NETOs submitted a Federal Power Act Section 205 filing to FERC, which is a formal request by a public utility to change the ROE rate prospectively and requires the utility to prove the proposed change is just and reasonable. The NETOs proposed a replacement base ROE of 11.39 percent, resulting in an incentive cap of 12.89 percent, which is based on current market data utilizing FERC’s ROE methodology from Opinion No. 594. The NETOs requested an effective date of June 30, 2026. On June 29, 2026, FERC issued an order finding the proposed ROE has not been shown to be just and reasonable, suspending the increase until November 30, 2026, subject to refund, and initiating paper hearing procedures. Initial briefs are due in the paper hearing on August 28, 2026, with reply briefs due on September 28, 2026.
Showing the first 40 of 69 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The increase in other electric distribution costs for the six month period is due primarily to an increase in the LTRCA related to NSTAR Electric’s PPA with Hydro-Québec, for which costs began in the first quarter of 2026. The increase was partially offset by lower net metering costs at NSTAR Electric, lower long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and a decrease in transition costs at PSNH resulting from higher Regional Greenhouse Gas Initiatives (RGGI) proceeds received, which are credited back to customers.
Current report — wording carried from elsewhere
Income Tax Expense decreased for the three month period due primarily to lower pre-tax earnings ($69.2 million), lower state taxes ($5.9 million), and an increase in amortization of EDIT ($3.6 million), partially offset by an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($48.0 million).