CONNECTICUT LIGHT & POWER CO

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 six months ended June 30, 2026 and 2025 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 $55.6 million at CL&P, increased $185.8 million at NSTAR Electric and $66.4 million at PSNH for the six month period.

Base Distribution Revenues: Base distribution rates are the approved, regulated charges to recover the utility’s cost of service, including operations and building and maintaining infrastructure, that allow utilities to recover investments and earn a reasonable return. Base distribution rates are established in base rate proceedings and approved by state regulators. Fluctuations in base distribution revenues impact earnings. Base distribution revenues include the impact of the revenue decoupling mechanism, which qualifies as an ARP. The increases at NSTAR Electric and PSNH are due to base distribution rate increases effective January 1, 2026 and August 1, 2025, respectively.

Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates on a fully reconciling basis through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings. Costs recovered through cost tracking mechanisms include, among others,

•energy supply procurement;

•retail transmission charges;

•state-mandated charges incurred in furtherance of grid reliability, affordability, clean energy and other energy policy directives from the state, such as energy purchase agreements required by legislation and regulation and other energy-related costs, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), hardship and low income programs, net metering for distributed generation, and additionally for NSTAR Electric solar-related programs; and

•other delivery costs, such as certain capital tracking mechanisms for infrastructure improvements, and additionally for NSTAR Electric, pension and PBOP benefits.

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. 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 is due primarily to the following:

Operating Revenues do not directly correlate to charges on a customer’s bill and cannot be used to determine the percentage of a customer’s bill that contributes to various charges or programs. Differences between total company operating revenues and rates on a customer’s bill can arise due to customer class allocations and rate design, application of regulatory accounting, and other factors. For customers who have contracted with competitive third-party suppliers, revenue is not recorded for the sale of the electricity commodity, which, for those customers, represents a significant portion of a bill but is not reflected in total company operating revenues.

Fluctuations in retail tariff tracked revenues are driven by adjustments to retail rates to recover costs and changes in sales volumes.

Energy supply procurement: The increase in energy supply procurement at CL&P and PSNH for the six month period was driven by higher average prices and higher average supply-related sales volumes. The decrease in energy supply procurement at NSTAR Electric for the six month period was driven by lower average supply-related sales volumes, partially offset by higher average prices.

State-mandated charges: The variance in state-mandated charges for the six month period was primarily driven by changes in the retail NBFMCC rate at CL&P and the retail LTRCA rate at NSTAR Electric. The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state mandated energy purchase contracts with the Millstone and Seabrook nuclear power plants, net of the benefits received from selling this energy into the ISO-NE wholesale market. The NBFMCC rate changes primarily resulted from the timing of recovery of net costs associated with these power purchase agreements. The NSTAR Electric LTRCA rate includes recovery of costs incurred under the long-term state mandated energy purchase contract with Hydro-Québec that began in the first quarter of 2026, net of the benefits received from selling this energy into the ISO-NE wholesale market.

CL&P is required by both state legislation and regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered in 2019. NSTAR Electric is required by both state legislation and regulation to purchase renewable hydroelectric energy and renewable energy attributes from Hydro-Québec under a DPU-approved PPA entered in 2018. CL&P and NSTAR Electric do not have legislative authority to use this purchased output to serve their customer loads and therefore they sell the energy into the wholesale market and use the proceeds from the energy sales to offset the contract costs. The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the CL&P retail FMCC rate and the retail LTRCA rate at NSTAR Electric. CL&P and NSTAR Electric do not earn any margin or return from the sale of these contracted outputs, which solely offsets the cost of the legislatively required purchases from Millstone and Seabrook for CL&P and Hydro-Québec for NSTAR Electric. Changes in CL&P’s NBFMCC and NSTAR Electric’s LTRCA retail revenues and CL&P’s and NSTAR Electric’s wholesale market sales, as compared to the actual costs incurred, are deferred on the income statement by an offset to amortization expense (for CL&P) or purchased power expense (for NSTAR Electric).

Wholesale market sales revenue: The increase in CL&P’s wholesale market sales revenue for the six month period was due primarily to higher average electricity market prices received for wholesale sales. ISO-NE average market prices received for CL&P’s wholesale sales increased to an average price of $83.01 per MWh for the six months ended June 30, 2026, as compared to $72.46 per MWh for the same period in 2025. The increase in the ISO-NE average market prices was driven primarily by higher natural gas prices in New England. The increase in wholesale market revenues at NSTAR Electric is due primarily to the sale of output from the Hydro-Québec PPA, which began in the first quarter of 2026.

Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA with CL&P and the Hydro-Québec PPA with NSTAR Electric.

Transmission Revenues: Transmission revenues increased $19.2 million at CL&P, $16.8 million at NSTAR Electric, and $13.2 million at PSNH for the six month period, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. These increases were partially offset by the impact of a regulatory liability established for revenues subject to refund that was recorded in the first quarter of 2026 as a result of the March 19, 2026 FERC decision in the FERC base ROE complaints of $15.4 million, $12.6 million, and $3.9 million for CL&P, NSTAR Electric and PSNH, respectively, and the impact from the March FERC decision that lowered the allowed ROE from 10.57 percent to 9.57 percent. For further information, see "FERC Regulatory Matters - FERC ROE Complaints" in this Management's Discussion and Analysis of Financial Condition and Results of Operations.

Eliminations: Eliminations are 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 $23.8 million at CL&P, $6.1 million at NSTAR Electric, and $2.4 million at PSNH for the six 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 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 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, partially offset by lower net metering costs, at CL&P is due to lower long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism, and at PSNH is due to a decrease in transition costs resulting from higher RGGI proceeds received, which are credited back to customers.

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 system.

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

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

•The increase in transmission costs at PSNH was due primarily to an increase in Local Network Service charges and an increase in the retail transmission cost deferral, 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 to the following:

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

Amortization of Regulatory 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 Assets, Net for the six 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 and the SBC 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 rates and the SBC retail rates in effect in the six month period of 2026 were lower than those in the six month period of 2025. These lower collections, as compared to the actual costs incurred, resulted in a decrease to amortization expense of $127.8 million for the CL&P non-bypassable FMCC mechanism and $86.7 million for the CL&P SBC deferral adjustment.

•The variance at NSTAR Electric was due primarily to the deferral adjustment of costs included in the solar facilities regulatory mechanism and higher recoveries of storm costs recovered in rates, partially offset by the deferral adjustment ofenergy-related and other tracked costs that are included in the advanced metering infrastructure regulatory mechanism.

•The variance at PSNH was due primarily to the completion of certain storm amortization and amortization of overcollections in the Pole Plant Adjustment Mechanism and the energy efficiency regulatory mechanisms, both of which were phased out as part of the 2025 NHPUC-approved distribution rate case and are being fully refunded to customers. These decreases were partially offset by an increase in the stranded cost recovery 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 six month period is due primarily to the following:

•The decrease at CL&P was due to lower program spending and the deferral adjustment.

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

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

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

•The increases at CL&P, NSTAR Electric and PSNH were due to higher property taxes as a result of higher utility plant balances.

Interest Expense - the variance is due to the following:

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

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

•The decrease at CL&P was due primarily to lower pre-tax earnings ($8.3 million), lower state taxes ($2.0 million), an increase in amortization of EDIT ($3.9 million), and lower share-based payment tax deficiency ($0.3 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 ($0.4 million).

•The decrease at NSTAR Electric was due primarily to lower pre-tax earnings ($5.2 million), lower state taxes ($1.6 million), lower share-based payment tax deficiency ($0.5 million), and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.0 million).

•The increase at PSNH was due primarily to higher pre-tax earnings ($6.0 million) and higher state taxes ($1.7 million) and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.3 million), partially offset by an increase in amortization of EDIT ($0.7 million).

EARNINGS SUMMARY

CL&P's earnings decreased $25.4 million for the six month period due primarily tothe after-tax first quarter 2026 charge of $20.8 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints for estimated refunds with interest for the fifteen-month first complaint period, 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 higher net interest expense on regulatory deferrals, higher depreciation expense and higher property tax expense. The earnings decrease was partially offset by a higher transmission rate base as a result of our continued investment in our transmission infrastructure, higher revenues from its capital tracking mechanism due to increased electric system improvements and lower operations and maintenance expense.

NSTAR Electric's earnings decreased $16.4 million for the six month period due primarily to the after-tax first quarter 2026 charge of $17.6 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints for estimated refunds with interest for the fifteen-month first complaint period, 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 depreciation expense, higher operations and maintenance expense, lower earnings from its grid modernization tracking mechanism, higher interest expense on long-term debt and higher net interest expense on regulatory deferrals. The earnings decrease was partially offset by higher revenues as a result of the base distribution rate increase effective January 1, 2026, a higher transmission rate base as a result of our continued investment in our transmission infrastructure and higher earnings from its AMI capital tracking mechanism.

PSNH's earnings increased $21.6 million for the six month period due primarily to higher revenues as a result of the base distribution rate increase effective August 1, 2025, a higher transmission rate base as a result of our continued investment in our transmission infrastructure, and lower operations and maintenance expense. The earnings increase was partially offset by the after-tax first quarter 2026 charge of $5.5 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints for estimated refunds with interest for the fifteen-month first complaint period, 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, higher interest expense on long-term debt and higher net interest expense on regulatory deferrals.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of $497.9 million for the six months ended June 30, 2026, as compared to $753.6 million in the same period of 2025. The decrease in operating cash flows was due primarily to a $195.1 million increase in income tax payments made in 2026 as compared to 2025, a decrease in recoveries of the non-bypassable FMCC and the SBC regulatory tracking mechanism driven by the timing of collections and the timing of cash payments made on our accounts payable. These unfavorable impacts were partially offset by an improvement in regulatory recoveries for retail and wholesale transmission costs and other regulatory cost tracking mechanisms driven by the timing of cash collections, the timing of cash collections on our accounts receivable, a $5.7 million decrease in cost of removal expenditures 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.

NSTAR Electric had cash flows provided by operating activities of $626.1 million for the six months ended June 30, 2026, as compared to $393.6 million in the same period of 2025. The increase in operating cash flows was due primarily to the timing of cash collections on our accounts receivable, an increase of $87.2 million in operating cash flows due to income tax refunds received in 2026 compared to income tax payments made in 2025, a $25.0 million decrease in cost of removal expenditures, and the timing of other working capital items. These favorable impacts were partially offset by the timing of cash payments made on our accounts payable, an increase of $42.8 million in cash payments to vendors for storm costs and an increase in regulatory recoveries driven primarily by the timing of collections for energy supply costs and other regulatory cost tracking mechanisms. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows. Additionally, under a winter electric bill relief program in Massachusetts, bill credits were provided to electric 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.

PSNH had cash flows provided by operating activities of $230.9 million for the six months ended June 30, 2026, as compared to $191.9 million in the same period of 2025. The increase in operating cash flows was due primarily to a decrease of $29.3 million in cash payments to vendors for storm costs, the timing of cash collections on our accounts receivable, and a $4.9 million decrease in cost of removal expenditures partially offset by the timing of cash payments made on our accounts payable, an increase in regulatory recoveries driven primarily by the timing of collections for energy supply costs and other regul atory cost tracking mechanisms, an increase of $7.5 million in tax payments made in 2026 compared to 2025 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.

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.