CONNECTICUT LIGHT & POWER CO

We are subject to a variety of significant risks in addition to the matters set forth under our forward-looking statements section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Quarterly Report on Form 10-Q. We have identified a number of these risk factors in Part I, Item 1A, "Risk Factors," in our 2025 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. The following risk factor update should be read in conjunction with the risk factors described in the 2025 Form 10-K.

Eversource and other transmission-owning electric companies within ISO-NE have been subject to complaints challenging the reasonableness of our allowed ROEs since 2011. On March 19, 2026, FERC issued an order finding that the base ROE was unjust and unreasonable and setting a new base ROE for the first complaint period and prospectively from October 2014. FERC ordered refunds with interest for those historical refund periods, which are material to us, and dismissed the other three complaints. The material amount of the refunds required by FERC’s order is driven primarily by the length of the retroactive refund period, which spans nearly 12 years. Application of the revised base ROE to revenues collected over this extended historical period substantially increased the aggregate refund obligation compared to what would have resulted from a shorter refund period. The order adversely affects our financial position, results of operations, liquidity, and cash flows. Eversource has appealed the FERC order, however, there can be no assurance that the appeal will result in modification or reversal of the FERC order, and we cannot predict the ultimate outcome of this proceeding or its timing.

Although we have estimated a range of reasonably possible refund exposure and recorded a liability representing the low end of that range, additional losses significantly exceeding amounts currently recorded remain reasonably possible. As we continue to refine the refund calculation and coordinate the refund process with other New England transmission owners and ISO-NE, additional losses for the retroactive refund period may be recognized in future periods. Such losses would have a material adverse effect on our financial position, results of operations, liquidity and cash flows. Under the refund timing currently required by FERC, refunds will be required before completion of the appellate process, resulting in significant cash outflows prior to final judicial resolution. The calculation and processing of refunds involve significant complexity, are time-intensive, and require coordination among the NETOs and ISO-NE, which may affect the amount and timing of refunds. Additionally, the methodologies and conclusions reflected in the FERC order may influence future transmission ROE proceedings and could result in lower authorized returns on existing and future transmission investments.

See "FERC Regulatory Matters - FERC ROE Complaints," in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 9C, “Commitments and Contingencies - FERC ROE Complaints,” to the financial statements for additional information regarding the financial impact of this order.

Other than as set forth above, there have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our 2025 Form 10-K.

The following table discloses purchases of our common shares made by us or on our behalf for the periods shown below. The common shares purchased consist of open market purchases made by the Company or an independent agent. These share transactions related to matching contributions under the Eversource 401k Plan.

Not applicable.

Not applicable.