EVERSOURCE ENERGY, 10-Q filed on 11/7/2019
Quarterly Report
v3.19.3
DOCUMENT AND ENTITY INFORMATION - shares
9 Months Ended
Sep. 30, 2019
Oct. 31, 2019
Document And Entity [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Fiscal Period Focus Q3  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2019  
Document Fiscal Year Focus 2019  
Current Fiscal Year End Date --12-31  
Document Transition Report false  
Entity Registrant Name EVERSOURCE ENERGY  
Entity Incorporation, State or Country Code MA  
Entity Central Index Key 0000072741  
Entity Address, Address Line One 300 Cadwell Drive  
Entity Address, City or Town Springfield  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 01104  
City Area Code 800  
Local Phone Number 286-5000  
Entity File Number 1-5324  
Entity Tax Identification Number 04-2147929  
Title of 12(b) Security Common Shares, $5.00 par value per share  
Trading Symbol ES  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   323,761,393
The Connecticut Light and Power Company    
Document And Entity [Line Items]    
Current Fiscal Year End Date --12-31  
Entity Registrant Name THE CONNECTICUT LIGHT AND POWER COMPANY  
Entity Incorporation, State or Country Code CT  
Entity Central Index Key 0000023426  
Entity Address, Address Line One 107 Selden Street  
Entity Address, City or Town Berlin  
Entity Address, State or Province CT  
Entity Address, Postal Zip Code 06037-1616  
City Area Code 800  
Local Phone Number 286-5000  
Entity File Number 0-00404  
Entity Tax Identification Number 06-0303850  
Entity Filer Category Non-accelerated Filer  
Entity Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   6,035,205
NSTAR Electric Company    
Document And Entity [Line Items]    
Current Fiscal Year End Date --12-31  
Entity Registrant Name NSTAR ELECTRIC COMPANY  
Entity Incorporation, State or Country Code MA  
Entity Central Index Key 0000013372  
Entity Address, Address Line One 800 Boylston Street  
Entity Address, City or Town Boston  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02199  
City Area Code 800  
Local Phone Number 286-5000  
Entity File Number 1-02301  
Entity Tax Identification Number 04-1278810  
Entity Filer Category Non-accelerated Filer  
Entity Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   200
Public Service Company of New Hampshire    
Document And Entity [Line Items]    
Current Fiscal Year End Date --12-31  
Entity Registrant Name PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE  
Entity Incorporation, State or Country Code NH  
Entity Central Index Key 0000315256  
Entity Address, Address Line One Energy Park  
Entity Address, Address Line Two 780 North Commercial Street  
Entity Address, City or Town Manchester  
Entity Address, State or Province NH  
Entity Address, Postal Zip Code 03101-1134  
City Area Code 800  
Local Phone Number 286-5000  
Entity File Number 1-6392  
Entity Tax Identification Number 02-0181050  
Entity Filer Category Non-accelerated Filer  
Entity Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   301
v3.19.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Current Assets:    
Cash $ 22,688 $ 108,068
Receivables, Net 993,396 994,055
Unbilled Revenues 150,394 176,285
Fuel, Materials, Supplies and REC Inventory 204,012 238,042
Regulatory Assets 538,162 514,779
Prepayments and Other Current Assets 312,253 260,995
Total Current Assets 2,220,905 2,292,224
Property, Plant and Equipment, Net 26,911,877 25,610,428
Deferred Debits and Other Assets:    
Regulatory Assets 4,292,560 4,631,137
Goodwill 4,427,266 4,427,266
Investments in Unconsolidated Affiliates 861,687 464,286
Marketable Securities 404,804 417,508
Other Long-Term Assets 606,295 398,407
Total Deferred Debits and Other Assets 10,592,612 10,338,604
Total Assets 39,725,394 38,241,256
Current Liabilities:    
Notes Payable 712,500 910,000
Long-Term Debt – Current Portion 853,066 837,319
Rate Reduction Bonds – Current Portion 43,210 52,332
Accounts Payable 892,106 1,119,995
Regulatory Liabilities 441,189 370,230
Other Current Liabilities 806,839 823,006
Total Current Liabilities 3,748,910 4,112,882
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 3,604,791 3,506,030
Regulatory Liabilities 3,644,477 3,609,475
Derivative Liabilities 357,869 379,562
Accrued Pension, SERP and PBOP 821,172 962,510
Other Long-Term Liabilities 1,290,704 1,196,336
Total Deferred Credits and Other Liabilities 9,719,013 9,653,913
Long-Term Debt 13,440,165 12,248,743
Rate Reduction Bonds 540,122 583,331
Noncontrolling Interest – Preferred Stock of Subsidiaries 155,570 155,570
Common Shareholders' Equity:    
Common Shares 1,699,292 1,669,392
Capital Surplus, Paid In 6,675,889 6,241,222
Retained Earnings 4,100,220 3,953,974
Accumulated Other Comprehensive Income (Loss) (52,017) (60,000)
Treasury Stock (301,770) (317,771)
Common Shareholders' Equity 12,121,614 11,486,817
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization 39,725,394 38,241,256
The Connecticut Light and Power Company    
Current Assets:    
Cash 9,286 87,721
Receivables, Net 428,050 397,026
Accounts Receivable from Affiliated Companies 34,702 23,082
Unbilled Revenues 48,211 56,971
Fuel, Materials, Supplies and REC Inventory 52,209 44,529
Regulatory Assets 173,339 125,155
Prepaid Property Taxes 66,510 19,555
Prepayments and Other Current Assets 24,236 40,724
Total Current Assets 836,543 794,763
Property, Plant and Equipment, Net 9,456,562 8,909,701
Deferred Debits and Other Assets:    
Regulatory Assets 1,404,502 1,505,488
Other Long-Term Assets 229,092 199,767
Total Deferred Debits and Other Assets 1,633,594 1,705,255
Total Assets 11,926,699 11,409,719
Current Liabilities:    
Notes Payable to Eversource Parent 173,100 0
Long-Term Debt – Current Portion 0 250,000
Accounts Payable 280,463 324,983
Accounts Payable to Affiliated Companies 76,916 26,452
Obligations to Third Party Suppliers 57,823 56,248
Regulatory Liabilities 168,053 109,614
Derivative Liabilities 64,572 55,058
Other Current Liabilities 169,600 161,088
Total Current Liabilities 990,527 983,443
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 1,205,687 1,166,784
Regulatory Liabilities 1,159,909 1,122,157
Derivative Liabilities 357,728 379,536
Accrued Pension, SERP and PBOP 248,557 282,771
Other Long-Term Liabilities 149,293 155,495
Total Deferred Credits and Other Liabilities 3,121,174 3,106,743
Long-Term Debt 3,518,464 3,004,016
Noncontrolling Interest – Preferred Stock of Subsidiaries 116,200 116,200
Common Shareholders' Equity:    
Common Shares 60,352 60,352
Capital Surplus, Paid In 2,410,765 2,410,765
Retained Earnings 1,708,892 1,727,899
Accumulated Other Comprehensive Income (Loss) 325 301
Common Shareholders' Equity 4,180,334 4,199,317
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization 11,926,699 11,409,719
NSTAR Electric Company    
Current Assets:    
Cash 264 1,606
Receivables, Net 385,689 361,296
Accounts Receivable from Affiliated Companies 39,386 31,344
Unbilled Revenues 42,794 34,518
Fuel, Materials, Supplies and REC Inventory 90,169 114,202
Regulatory Assets 201,215 241,747
Prepayments and Other Current Assets 11,564 51,960
Total Current Assets 771,081 836,673
Property, Plant and Equipment, Net 9,264,180 8,794,700
Deferred Debits and Other Assets:    
Regulatory Assets 1,159,056 1,196,512
Prepaid PBOP 152,978 132,810
Other Long-Term Assets 149,785 109,764
Total Deferred Debits and Other Assets 1,461,819 1,439,086
Total Assets 11,497,080 11,070,459
Current Liabilities:    
Notes Payable 28,000 278,500
Notes Payable to Eversource Parent 48,700 0
Long-Term Debt – Current Portion 95,000 0
Accounts Payable 304,346 384,398
Accounts Payable to Affiliated Companies 84,898 89,636
Obligations to Third Party Suppliers 110,243 109,547
Renewable Portfolio Standards Compliance Obligations 113,330 139,898
Regulatory Liabilities 199,381 190,620
Other Current Liabilities 112,577 74,872
Total Current Liabilities 1,096,475 1,267,471
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 1,329,266 1,294,467
Regulatory Liabilities 1,519,631 1,513,279
Accrued Pension, SERP and PBOP 20,544 14,145
Other Long-Term Liabilities 325,617 263,096
Total Deferred Credits and Other Liabilities 3,195,058 3,084,987
Long-Term Debt 3,246,631 2,944,846
Noncontrolling Interest – Preferred Stock of Subsidiaries 43,000 43,000
Common Shareholders' Equity:    
Common Shares 0 0
Capital Surplus, Paid In 1,663,442 1,633,442
Retained Earnings 2,253,509 2,098,091
Accumulated Other Comprehensive Income (Loss) (1,035) (1,378)
Common Shareholders' Equity 3,915,916 3,730,155
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization 11,497,080 11,070,459
Public Service Company of New Hampshire    
Current Assets:    
Cash 1,647 1,439
Receivables, Net 107,096 104,854
Accounts Receivable from Affiliated Companies 23,882 8,444
Unbilled Revenues 38,901 47,145
Taxes Receivable 1,111 25,913
Fuel, Materials, Supplies and REC Inventory 23,960 37,504
Regulatory Assets 78,097 67,228
Special Deposits 18,526 47,498
Prepayments and Other Current Assets 2,726 17,564
Total Current Assets 295,946 357,589
Property, Plant and Equipment, Net 3,031,985 2,880,073
Deferred Debits and Other Assets:    
Regulatory Assets 792,332 862,288
Other Long-Term Assets 40,890 27,406
Total Deferred Debits and Other Assets 833,222 889,694
Total Assets 4,161,153 4,127,356
Current Liabilities:    
Notes Payable to Eversource Parent 42,100 57,000
Long-Term Debt – Current Portion 150,000 150,000
Rate Reduction Bonds – Current Portion 43,210 52,332
Accounts Payable 89,992 111,292
Accounts Payable to Affiliated Companies 35,940 26,029
Regulatory Liabilities 54,681 55,526
Other Current Liabilities 61,260 64,046
Total Current Liabilities 477,183 516,225
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 500,391 481,221
Regulatory Liabilities 418,106 428,069
Accrued Pension, SERP and PBOP 88,492 124,457
Other Long-Term Liabilities 33,454 36,339
Total Deferred Credits and Other Liabilities 1,040,443 1,070,086
Long-Term Debt 951,471 655,173
Rate Reduction Bonds 540,122 583,331
Common Shareholders' Equity:    
Common Shares 0 0
Capital Surplus, Paid In 678,134 678,134
Retained Earnings 475,770 627,258
Accumulated Other Comprehensive Income (Loss) (1,970) (2,851)
Common Shareholders' Equity 1,151,934 1,302,541
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 4,161,153 $ 4,127,356
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Operating Revenues $ 2,175,797 $ 2,271,425 $ 6,476,084 $ 6,413,243
Operating Expenses:        
Purchased Power, Fuel and Transmission 730,255 842,291 2,326,041 2,442,953
Operations and Maintenance 331,054 344,475 994,660 970,881
Depreciation 222,599 208,671 656,632 612,077
Amortization 73,854 92,711 183,760 174,108
Energy Efficiency Programs 136,832 129,965 382,785 366,162
Taxes Other Than Income Taxes 171,965 187,291 537,636 547,155
Impairment of Northern Pass Transmission 0 0 239,644 0
Total Operating Expenses 1,666,559 1,805,404 5,321,158 5,113,336
Operating Income/(Loss) 509,238 466,021 1,154,926 1,299,907
Interest Expense 135,216 125,201 399,654 372,734
Other Income, Net 26,968 16,718 103,818 100,656
Income Before Income Tax Expense 400,990 357,538 859,090 1,027,829
Income Tax Expense 80,226 66,278 194,435 220,497
Net Income 320,764 291,260 664,655 807,332
Net Income Attributable to Noncontrolling Interests 1,880 1,880 5,639 5,639
Net Income Attributable to Common Shareholders $ 318,884 $ 289,380 $ 659,016 $ 801,693
Basic Earnings Per Common Share (in dollars per share) $ 0.98 $ 0.91 $ 2.06 $ 2.53
Diluted Earnings Per Common Share (in dollars per share) $ 0.98 $ 0.91 $ 2.05 $ 2.52
Weighted Average Common Shares Outstanding:        
Basic (in shares) 324,037,169 317,360,110 320,442,253 317,367,252
Diluted (in shares) 326,008,342 317,967,311 321,570,926 317,948,498
The Connecticut Light and Power Company        
Operating Revenues $ 853,943 $ 865,028 $ 2,444,034 $ 2,344,903
Operating Expenses:        
Purchased Power, Fuel and Transmission 299,017 314,571 865,389 850,794
Operations and Maintenance 135,077 128,523 399,065 355,500
Depreciation 76,250 72,017 224,095 208,899
Amortization of Regulatory Assets, Net 30,406 54,031 78,453 97,437
Energy Efficiency Programs 40,129 30,240 86,897 71,606
Taxes Other Than Income Taxes 82,781 92,987 261,244 267,662
Total Operating Expenses 663,660 692,369 1,915,143 1,851,898
Operating Income/(Loss) 190,283 172,659 528,891 493,005
Interest Expense 39,520 37,609 112,274 113,107
Other Income, Net 4,831 7,098 11,564 20,722
Income Before Income Tax Expense 155,594 142,148 428,181 400,620
Income Tax Expense 43,907 41,818 101,219 102,010
Net Income 111,687 100,330 326,962 298,610
NSTAR Electric Company        
Operating Revenues 878,669 939,460 2,358,174 2,400,324
Operating Expenses:        
Purchased Power, Fuel and Transmission 300,726 383,208 859,227 981,895
Operations and Maintenance 120,917 123,634 342,804 344,478
Depreciation 74,664 70,616 220,303 205,210
Amortization of Regulatory Assets, Net 27,296 17,149 73,064 35,467
Energy Efficiency Programs 84,409 89,430 227,042 229,408
Taxes Other Than Income Taxes 51,266 49,927 144,314 145,740
Total Operating Expenses 659,278 733,964 1,866,754 1,942,198
Operating Income/(Loss) 219,391 205,496 491,420 458,126
Interest Expense 29,322 26,958 85,442 80,780
Other Income, Net 10,735 13,697 32,479 40,567
Income Before Income Tax Expense 200,804 192,235 438,457 417,913
Income Tax Expense 45,864 51,640 99,769 112,247
Net Income 154,940 140,595 338,688 305,666
Public Service Company of New Hampshire        
Operating Revenues 280,431 290,203 797,766 792,700
Operating Expenses:        
Purchased Power, Fuel and Transmission 101,381 100,763 300,680 293,975
Operations and Maintenance 50,838 55,429 156,197 153,296
Depreciation 23,539 23,223 69,720 69,524
Amortization of Regulatory Assets, Net 20,421 27,357 39,944 41,318
Energy Efficiency Programs 7,300 5,863 20,229 15,694
Taxes Other Than Income Taxes 12,487 21,095 50,523 59,775
Total Operating Expenses 215,966 233,730 637,293 633,582
Operating Income/(Loss) 64,465 56,473 160,473 159,118
Interest Expense 16,378 16,593 44,654 43,977
Other Income, Net 4,634 16,095 14,640 24,253
Income Before Income Tax Expense 52,721 55,975 130,459 139,394
Income Tax Expense 11,842 15,309 29,947 37,857
Net Income $ 40,879 $ 40,666 $ 100,512 $ 101,537
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Net Income $ 320,764 $ 291,260 $ 664,655 $ 807,332
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments 367   945  
Qualified Cash Flow Hedging Instruments   432   1,627
Changes in Unrealized Gains/(Losses) on Marketable Securities 169 (136) 1,268 (724)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 1,088 1,110 5,770 5,918
Other Comprehensive Income (Loss), Net of Tax 1,624 1,406 7,983 6,821
Comprehensive Income Attributable to Noncontrolling Interests (1,880) (1,880) (5,639) (5,639)
Comprehensive Income Attributable to Common Shareholders 320,508 290,786 666,999 808,514
The Connecticut Light and Power Company        
Net Income 111,687 100,330 326,962 298,610
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments (7)   (20)  
Qualified Cash Flow Hedging Instruments   (7)   58
Changes in Unrealized Gains/(Losses) on Marketable Securities 6 (5) 44 (21)
Other Comprehensive Income (Loss), Net of Tax (1) (12) 24 37
Comprehensive Income Attributable to Common Shareholders 111,686 100,318 326,986 298,647
NSTAR Electric Company        
Net Income 154,940 140,595 338,688 305,666
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments 109   328  
Qualified Cash Flow Hedging Instruments   110   328
Changes in Unrealized Gains/(Losses) on Marketable Securities 2 (1) 12 (6)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 1 1 3 3
Other Comprehensive Income (Loss), Net of Tax 112 110 343 325
Comprehensive Income Attributable to Common Shareholders 155,052 140,705 339,031 305,991
Public Service Company of New Hampshire        
Net Income 40,879 40,666 100,512 101,537
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments 268   806  
Qualified Cash Flow Hedging Instruments   268   835
Changes in Unrealized Gains/(Losses) on Marketable Securities 10 (7) 75 (36)
Other Comprehensive Income (Loss), Net of Tax 278 261 881 799
Comprehensive Income Attributable to Common Shareholders $ 41,157 $ 40,927 $ 101,393 $ 102,336
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Shares
Capital Surplus, Paid In
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
The Connecticut Light and Power Company
The Connecticut Light and Power Company
Common Shares
The Connecticut Light and Power Company
Capital Surplus, Paid In
The Connecticut Light and Power Company
Retained Earnings
The Connecticut Light and Power Company
Accumulated Other Comprehensive Income (Loss)
NSTAR Electric Company
NSTAR Electric Company
Common Shares
NSTAR Electric Company
Capital Surplus, Paid In
NSTAR Electric Company
Retained Earnings
NSTAR Electric Company
Accumulated Other Comprehensive Income (Loss)
Public Service Company of New Hampshire
Public Service Company of New Hampshire
Common Shares
Public Service Company of New Hampshire
Capital Surplus, Paid In
Public Service Company of New Hampshire
Retained Earnings
Public Service Company of New Hampshire
Accumulated Other Comprehensive Income (Loss)
Balance (in shares) at Dec. 31, 2017   316,885,808           6,035,205         200         301      
Balance at Dec. 31, 2017 $ 11,086,242 $ 1,669,392 $ 6,239,940 $ 3,561,084 $ (66,403) $ (317,771) $ 3,587,127 $ 60,352 $ 2,110,765 $ 1,415,741 $ 269 $ 3,446,080 $ 0 $ 1,502,942 $ 1,944,961 $ (1,823) $ 1,350,594 $ 0 $ 843,134 $ 511,382 $ (3,922)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 271,426     271,426     98,568     98,568   77,149     77,149   35,093     35,093  
Dividends on Common Shares (160,027)     (160,027)     (60,000)     (60,000)   (161,000)     (161,000)            
Dividends on Preferred Stock (1,880)     (1,880)     (1,390)     (1,390)   (490)     (490)            
Long-Term Incentive Plan Activity (15,320)   (15,320)                                    
Capital Contributions from Eversource Parent             9,000   9,000     92,500   92,500              
Other                       1     1            
Other Comprehensive Income 3,273       3,273   40       40 106       106 269       269
Balance (in shares) at Mar. 31, 2018   316,885,808           6,035,205         200         301      
Balance at Mar. 31, 2018 11,183,714 $ 1,669,392 6,224,620 3,670,603 (63,130) (317,771) 3,633,345 $ 60,352 2,119,765 1,452,919 309 3,454,346 $ 0 1,595,442 1,860,621 (1,717) 1,385,956 $ 0 843,134 546,475 (3,653)
Balance (in shares) at Dec. 31, 2017   316,885,808           6,035,205         200         301      
Balance at Dec. 31, 2017 11,086,242 $ 1,669,392 6,239,940 3,561,084 (66,403) (317,771) 3,587,127 $ 60,352 2,110,765 1,415,741 269 3,446,080 $ 0 1,502,942 1,944,961 (1,823) 1,350,594 $ 0 843,134 511,382 (3,922)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 807,332           298,610         305,666         101,537        
Dividends on Preferred Stock (5,600)                                        
Other Comprehensive Income 6,821           37         325         799        
Balance (in shares) at Sep. 30, 2018   316,885,808           6,035,205         200         301      
Balance at Sep. 30, 2018 11,408,778 $ 1,669,392 6,234,044 3,882,695 (59,582) (317,771) 3,921,605 $ 60,352 2,210,765 1,650,182 306 3,695,101 $ 0 1,608,442 2,088,157 (1,498) 1,147,930 $ 0 538,134 612,919 (3,123)
Balance (in shares) at Mar. 31, 2018   316,885,808           6,035,205         200         301      
Balance at Mar. 31, 2018 11,183,714 $ 1,669,392 6,224,620 3,670,603 (63,130) (317,771) 3,633,345 $ 60,352 2,119,765 1,452,919 309 3,454,346 $ 0 1,595,442 1,860,621 (1,717) 1,385,956 $ 0 843,134 546,475 (3,653)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 244,647     244,647     99,712     99,712   87,921     87,921   25,779     25,779  
Dividends on Common Shares (160,027)     (160,027)                                  
Dividends on Preferred Stock (1,880)     (1,880)     (1,390)     (1,390)   (490)     (490)            
Long-Term Incentive Plan Activity 4,627   4,627                                    
Capital Contributions from Eversource Parent             91,000   91,000     8,000   8,000     225,000   225,000    
Return of Capital                                 (530,000)   (530,000)    
Other                                 (1)     (1)  
Other Comprehensive Income 2,142       2,142   9       9 109       109 269       269
Balance (in shares) at Jun. 30, 2018   316,885,808           6,035,205         200         301      
Balance at Jun. 30, 2018 11,273,223 $ 1,669,392 6,229,247 3,753,343 (60,988) (317,771) 3,822,676 $ 60,352 2,210,765 1,551,241 318 3,549,886 $ 0 1,603,442 1,948,052 (1,608) 1,107,003 $ 0 538,134 572,253 (3,384)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 291,260     291,260     100,330     100,330   140,595     140,595   40,666     40,666  
Dividends on Common Shares (160,028)     (160,028)                                  
Dividends on Preferred Stock (1,880)     (1,880)     (1,389)     (1,389)   (490)     (490)            
Long-Term Incentive Plan Activity 4,797   4,797                                    
Capital Contributions from Eversource Parent                       5,000   5,000              
Other Comprehensive Income 1,406       1,406   (12)       (12) 110       110 261       261
Balance (in shares) at Sep. 30, 2018   316,885,808           6,035,205         200         301      
Balance at Sep. 30, 2018 $ 11,408,778 $ 1,669,392 6,234,044 3,882,695 (59,582) (317,771) 3,921,605 $ 60,352 2,210,765 1,650,182 306 3,695,101 $ 0 1,608,442 2,088,157 (1,498) 1,147,930 $ 0 538,134 612,919 (3,123)
Balance (in shares) at Dec. 31, 2018 316,885,808 316,885,808           6,035,205         200         301      
Balance at Dec. 31, 2018 $ 11,486,817 $ 1,669,392 6,241,222 3,953,974 (60,000) (317,771) 4,199,317 $ 60,352 2,410,765 1,727,899 301 3,730,155 $ 0 1,633,442 2,098,091 (1,378) 1,302,541 $ 0 678,134 627,258 (2,851)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 310,558     310,558     110,471     110,471   94,014     94,014   32,781     32,781  
Dividends on Common Shares (169,757)     (169,757)     (99,000)     (99,000)   (60,600)     (60,600)   (19,000)     (19,000)  
Dividends on Preferred Stock (1,880)     (1,880)     (1,390)     (1,390)   (490)     (490)            
Long-Term Incentive Plan Activity (16,609)   (16,609)                                    
Issuance of Treasury Shares (in shares)   461,662                                      
Issuance of Treasury Shares 26,109   17,476     8,633                              
Capital Contributions from Eversource Parent                       20,000   20,000              
Other Comprehensive Income 2,196       2,196   17       17 117       117 307       307
Balance (in shares) at Mar. 31, 2019   317,347,470           6,035,205         200         301      
Balance at Mar. 31, 2019 $ 11,637,434 $ 1,669,392 6,242,089 4,092,895 (57,804) (309,138) 4,209,415 $ 60,352 2,410,765 1,737,980 318 3,783,196 $ 0 1,653,442 2,131,015 (1,261) 1,316,629 $ 0 678,134 641,039 (2,544)
Balance (in shares) at Dec. 31, 2018 316,885,808 316,885,808           6,035,205         200         301      
Balance at Dec. 31, 2018 $ 11,486,817 $ 1,669,392 6,241,222 3,953,974 (60,000) (317,771) 4,199,317 $ 60,352 2,410,765 1,727,899 301 3,730,155 $ 0 1,633,442 2,098,091 (1,378) 1,302,541 $ 0 678,134 627,258 (2,851)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 664,655           326,962         338,688         100,512        
Dividends on Preferred Stock (5,600)                                        
Other Comprehensive Income $ 7,983           24         343         881        
Balance (in shares) at Sep. 30, 2019 323,733,423 323,733,423           6,035,205         200         301      
Balance at Sep. 30, 2019 $ 12,121,614 $ 1,699,292 6,675,889 4,100,220 (52,017) (301,770) 4,180,334 $ 60,352 2,410,765 1,708,892 325 3,915,916 $ 0 1,663,442 2,253,509 (1,035) 1,151,934 $ 0 678,134 475,770 (1,970)
Balance (in shares) at Mar. 31, 2019   317,347,470           6,035,205         200         301      
Balance at Mar. 31, 2019 11,637,434 $ 1,669,392 6,242,089 4,092,895 (57,804) (309,138) 4,209,415 $ 60,352 2,410,765 1,737,980 318 3,783,196 $ 0 1,653,442 2,131,015 (1,261) 1,316,629 $ 0 678,134 641,039 (2,544)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 33,334     33,334     104,804     104,804   89,734     89,734   26,852     26,852  
Dividends on Common Shares (169,857)     (169,857)     (176,400)     (176,400)   (121,200)     (121,200)   (214,000)     (214,000)  
Dividends on Preferred Stock (1,880)     (1,880)     (1,390)     (1,390)   (490)     (490)            
Issuance of Common Shares (in shares)   5,980,000                                      
Issuance of Common Shares 433,550 $ 29,900 403,650                                    
Long-Term Incentive Plan Activity 6,470   6,470                                    
Issuance of Treasury Shares (in shares)   246,969                                      
Issuance of Treasury Shares 18,027   13,448     4,579                              
Capital Stock Expense (6,648)   (6,648)                                    
Other             1     1                      
Other Comprehensive Income 4,163       4,163   8       8 114       114 296       296
Balance (in shares) at Jun. 30, 2019   323,574,439           6,035,205         200         301      
Balance at Jun. 30, 2019 11,954,593 $ 1,699,292 6,659,009 3,954,492 (53,641) (304,559) 4,136,438 $ 60,352 2,410,765 1,664,995 326 3,751,354 $ 0 1,653,442 2,099,059 (1,147) 1,129,777 $ 0 678,134 453,891 (2,248)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Net Income 320,764     320,764     111,687     111,687   154,940     154,940   40,879     40,879  
Dividends on Common Shares (173,156)     (173,156)     (66,400)     (66,400)             (19,000)     (19,000)  
Dividends on Preferred Stock (1,880)     (1,880)     (1,390)     (1,390)   (490)     (490)            
Long-Term Incentive Plan Activity 6,697   6,697                                    
Issuance of Treasury Shares (in shares)   158,984                                      
Issuance of Treasury Shares 12,972   10,183     2,789                              
Capital Contributions from Eversource Parent                       10,000   10,000              
Other Comprehensive Income $ 1,624       1,624   (1)       (1) 112       112 278       278
Balance (in shares) at Sep. 30, 2019 323,733,423 323,733,423           6,035,205         200         301      
Balance at Sep. 30, 2019 $ 12,121,614 $ 1,699,292 $ 6,675,889 $ 4,100,220 $ (52,017) $ (301,770) $ 4,180,334 $ 60,352 $ 2,410,765 $ 1,708,892 $ 325 $ 3,915,916 $ 0 $ 1,663,442 $ 2,253,509 $ (1,035) $ 1,151,934 $ 0 $ 678,134 $ 475,770 $ (1,970)
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
3 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]            
Dividends on Common Shares (in dollars per share) $ 0.535 $ 0.535 $ 0.535 $ 0.505 $ 0.505 $ 0.505
Issuance of Common Shares, par value (in dollars per share) $ 5 $ 5        
v3.19.3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Operating Activities:    
Net Income $ 664,655 $ 807,332
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 656,632 612,077
Deferred Income Taxes 73,487 70,402
Uncollectible Expense 46,417 50,720
Pension, SERP and PBOP Expense, Net 18,507 5,192
Pension and PBOP Contributions (120,373) (188,874)
Regulatory Over/(Under) Recoveries, Net 80,688 189,932
Amortization 183,760 174,108
Proceeds from DOE Spent Nuclear Fuel Litigation 68,840 0
Impairment of Northern Pass Transmission 239,644 0
Other (185,625) (129,039)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net (57,011) (212,326)
Fuel, Materials, Supplies and REC Inventory 34,030 44,702
Taxes Receivable/Accrued, Net 53,687 70,885
Accounts Payable (157,355) (72,591)
Other Current Assets and Liabilities, Net (105,133) (14,858)
Net Cash Flows Provided by Operating Activities 1,494,850 1,407,662
Investing Activities:    
Investments in Property, Plant and Equipment (2,129,037) (1,885,081)
Proceeds from Sales of Marketable Securities 458,322 405,276
Purchases of Marketable Securities (405,095) (396,277)
Proceeds from the Sale of PSNH Generation Assets 0 193,924
Investments in Unconsolidated Affiliates, Net (374,913) (27,342)
Other Investing Activities (1,126) 3,937
Net Cash Flows Used in Investing Activities (2,451,849) (1,705,563)
Financing Activities:    
Issuance of Common Shares, Net of Issuance Costs 426,902 0
Cash Dividends on Common Shares (495,571) (480,082)
Cash Dividends on Preferred Stock (5,639) (5,639)
(Decrease)/Increase in Notes Payable (197,500) (222,110)
Issuance of Rate Reduction Bonds 0 635,663
Repayment of Rate Reduction Bonds (52,332) 0
Issuance of Long-Term Debt 1,475,000 1,300,000
Retirement of Long-Term Debt (250,855) (860,855)
Other Financing Activities (450) (20,361)
Net Cash Flows Provided by Financing Activities 899,555 346,616
Net (Decrease)/Increase in Cash and Restricted Cash (57,444) 48,715
Cash and Restricted Cash - Beginning of Period 209,324 85,890
Cash and Restricted Cash - End of Period 151,880 134,605
The Connecticut Light and Power Company    
Operating Activities:    
Net Income 326,962 298,610
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 224,095 208,899
Deferred Income Taxes 19,999 28,637
Uncollectible Expense 12,084 12,135
Pension, SERP and PBOP Expense, Net 9,843 6,594
Pension Contributions (24,000) (41,150)
Regulatory Over/(Under) Recoveries, Net 32,435 (1,136)
Amortization of Regulatory Assets, Net 78,453 97,437
Other (66,737) (55,827)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net (70,996) (126,513)
Taxes Receivable/Accrued, Net 32,708 72,702
Accounts Payable 8,604 (15,303)
Other Current Assets and Liabilities, Net (51,937) (33,965)
Net Cash Flows Provided by Operating Activities 531,513 451,120
Investing Activities:    
Investments in Property, Plant and Equipment (699,288) (660,673)
Other Investing Activities 645 167
Net Cash Flows Used in Investing Activities (698,643) (660,506)
Financing Activities:    
Cash Dividends on Common Shares (341,800) (60,000)
Cash Dividends on Preferred Stock (4,169) (4,169)
Capital Contributions from Eversource Parent 0 100,000
Issuance of Long-Term Debt 500,000 500,000
Retirement of Long-Term Debt (250,000) (300,000)
Increase/(Decrease) in Notes Payable to Eversource Parent 173,100 (23,600)
Other Financing Activities 12,667 (7,584)
Net Cash Flows Provided by Financing Activities 89,798 204,647
Net (Decrease)/Increase in Cash and Restricted Cash (77,332) (4,739)
Cash and Restricted Cash - Beginning of Period 91,613 9,619
Cash and Restricted Cash - End of Period 14,281 4,880
NSTAR Electric Company    
Operating Activities:    
Net Income 338,688 305,666
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 220,303 205,210
Deferred Income Taxes 11,080 16,203
Uncollectible Expense 18,598 20,433
Pension, SERP and PBOP Income, Net (9,779) (15,855)
Pension and PBOP Contributions (4,910) (60,454)
Regulatory Over/(Under) Recoveries, Net 46,543 180,797
Amortization of Regulatory Assets, Net 73,064 35,467
Other (50,685) (49,178)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net (68,167) (155,669)
Fuel, Materials, Supplies and REC Inventory 24,033 29,156
Taxes Receivable/Accrued, Net 66,917 42,148
Accounts Payable (47,256) (13,178)
Other Current Assets and Liabilities, Net (31,495) 33,543
Net Cash Flows Provided by Operating Activities 586,934 574,289
Investing Activities:    
Investments in Property, Plant and Equipment (636,214) (538,973)
Other Investing Activities 67 46
Net Cash Flows Used in Investing Activities (636,147) (538,927)
Financing Activities:    
Cash Dividends on Common Shares (181,800) (161,000)
Cash Dividends on Preferred Stock (1,470) (1,470)
Capital Contributions from Eversource Parent 30,000 105,500
Increase in Notes Payable to Eversource Parent 48,700 16,000
(Decrease)/Increase in Notes Payable (250,500) 6,500
Issuance of Long-Term Debt 400,000 0
Other Financing Activities (3,868) (239)
Net Cash Flows Provided by Financing Activities 41,062 (34,709)
Net (Decrease)/Increase in Cash and Restricted Cash (8,151) 653
Cash and Restricted Cash - Beginning of Period 14,659 14,708
Cash and Restricted Cash - End of Period 6,508 15,361
Public Service Company of New Hampshire    
Operating Activities:    
Net Income 100,512 101,537
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 69,720 69,524
Deferred Income Taxes 12,960 11,473
Uncollectible Expense 4,977 4,865
Pension, SERP and PBOP Expense, Net 683 1,106
Pension Contributions (15,400) 0
Regulatory Over/(Under) Recoveries, Net (13,347) (19,764)
Amortization of Regulatory Assets, Net 39,944 41,318
Other (23,865) (9,075)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net (13,498) (32,819)
Fuel, Materials, Supplies and REC Inventory 13,545 14,555
Taxes Receivable/Accrued, Net 31,909 10,929
Accounts Payable (12,100) (3,828)
Other Current Assets and Liabilities, Net 6,754 27,844
Net Cash Flows Provided by Operating Activities 202,794 217,665
Investing Activities:    
Investments in Property, Plant and Equipment (209,031) (236,206)
Proceeds from the Sale of PSNH Generation Assets 0 193,924
Other Investing Activities 904 5,149
Net Cash Flows Used in Investing Activities (208,127) (37,133)
Financing Activities:    
Cash Dividends on Common Shares (252,000) (150,000)
Capital Contributions from Eversource Parent 0 225,000
Return of Capital 0 (530,000)
Issuance of Rate Reduction Bonds 0 635,663
Repayment of Rate Reduction Bonds (52,332) 0
Issuance of Long-Term Debt 300,000 0
Retirement of Long-Term Debt 0 (110,000)
Increase/(Decrease) in Notes Payable to Eversource Parent (14,900) (216,300)
Other Financing Activities (4,146) 1,080
Net Cash Flows Provided by Financing Activities (23,378) (144,557)
Net (Decrease)/Increase in Cash and Restricted Cash (28,711) 35,975
Cash and Restricted Cash - Beginning of Period 52,723 2,191
Cash and Restricted Cash - End of Period $ 24,012 $ 38,166
v3.19.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.    Basis of Presentation
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 and NSTAR Gas (natural gas utilities) and Aquarion (water utilities).  Eversource provides energy delivery and/or water service to approximately four million electric, natural gas and water customers through eight regulated utilities in Connecticut, Massachusetts and New Hampshire.

The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH include the accounts of each of their respective subsidiaries.  Intercompany transactions have been eliminated in consolidation.  The accompanying 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."

The combined notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations.  The accompanying financial statements should be read in conjunction with the Combined Notes to Financial Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2018 Form 10-K, which was filed with the SEC on February 26, 2019. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of September 30, 2019 and December 31, 2018, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, 2019 and 2018, and the cash flows for the nine months ended September 30, 2019 and 2018. The results of operations and comprehensive income for the three and nine months ended September 30, 2019 and 2018 and the cash flows for the nine months ended September 30, 2019 and 2018 are not necessarily indicative of the results expected for a full year.  

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership and voting interests in each of these entities is greater than 50 percent.  Intercompany transactions between CL&P, NSTAR Electric, PSNH and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource's utility subsidiaries' electric, natural gas and water distribution and transmission businesses are subject to rate-regulation that is based on cost recovery and meets the criteria for application of accounting guidance for entities with rate-regulated operations, which considers the effect of regulation on the differences in the timing of the recognition of certain revenues and expenses from those of other businesses and industries. See Note 2, "Regulatory Accounting," for further information.

Certain reclassifications of prior period data were made in the accompanying financial statements to conform to the current period presentation.

B.    Accounting Standards
Accounting Standards Issued but Not Yet Effective: In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Under the new guidance, immediate recognition of all credit losses expected over the life of a financial instrument is required. The standard is effective January 1, 2020 and requires a modified retrospective method through a cumulative effect adjustment to retained earnings. The Company is assessing the impacts of this standard on the accounting for credit losses on its financial instruments, including accounts receivable, and does not expect it to have a material impact on the financial statements.

Accounting Standards Recently Adopted: On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), which amended existing lease accounting guidance. The Company applied the Topic 842 lease criteria to new leases and lease renewals entered into effective on or after January 1, 2019.  The ASU required balance sheet recognition of leases deemed to be operating leases as well as additional disclosure requirements.  The recognition, measurement and presentation of expenses and cash flows were not significantly changed.

The Company also adopted the modified retrospective transition method allowed in ASU 2018-11, Leases (Topic 842) - Targeted Improvements, which allowed the Company to adopt the new leases standard as of January 1, 2019, with prior periods presented in the financial statements continuing to follow existing lease accounting guidance under Topic 840 (Leases) in the accounting literature.  Implementation of ASU 2018-11 had no effect on retained earnings, and the requirements of the new lease standard (Topic 842) are reflected in the 2019 financial statements and footnotes.

The Company elected the practical expedient package whereby it did not need to reassess whether or not an existing contract is or contains a lease or whether a lease is an operating or capital lease, and it did not need to reassess initial direct costs for leases. Election of this practical expedient allowed us to carry forward our historical lease classifications. The Company elected the practical expedient to not reevaluate land easements existing at adoption if they were not previously accounted for as leases. The Company also elected to use the discount rate as of the January 1, 2019 implementation date to discount its operating lease liabilities. The Company did not elect the hindsight practical expedient to determine the lease term for existing leases.

The Company determined the impact the ASUs had on its financial statements by reviewing its lease population and identifying lease data needed for the disclosure requirements. The Company implemented a new lease accounting system in 2019 to ensure ongoing compliance with the ASU’s requirements. Adoption of the new standard resulted in the recording of operating lease liabilities and right-of-use assets on the balance sheet upon transition at January 1, 2019 of $58.0 million at Eversource, $25.3 million at NSTAR Electric, $0.6 million at CL&P, and $0.6 million at PSNH. Implementation of the new guidance did not have an impact on each company’s results of operations or cash flows.

C.    Impairment of Northern Pass Transmission
Northern Pass was Eversource's planned 1,090 MW HVDC transmission line that would interconnect from the Québec-New Hampshire border to Franklin, New Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire.  As a result of a final decision received on July 19, 2019 from the New Hampshire Supreme Court, whereby the court issued a decision denying Northern Pass’ appeal and affirming the NHSEC’s evaluation and decision that denied Northern Pass’ siting application on NPT, Eversource concluded that construction of NPT was no longer probable. As a result, substantially all of the capitalized project costs, which totaled $318 million, certain of which are subject to cost reimbursement agreements, were impaired.

Based on the conclusion that the construction of Northern Pass was not probable, Eversource recorded an impairment charge in the second quarter of 2019 for all of the project costs associated with Northern Pass, which were primarily engineering design, siting, permitting and legal costs, along with appropriate allowances for funds used during construction, and recognized a receivable for certain cost reimbursement agreements. Additionally, Eversource recorded an impairment charge associated with the land acquired to construct Northern Pass in order to recognize the land at its estimated fair value based on assessed values and transaction costs. In total, this resulted in a pre-tax impairment charge of $239.6 million within Operating Income on the statement of income for the nine months ended September 30, 2019, and was reflected in the Electric Transmission segment. The after-tax impact of the second quarter impairment charge was $204.4 million, or $0.64 per share, after giving effect to the estimated fair value of the related land, reimbursement agreements, and the impact of expected income tax benefits associated with the impairment charge. Eversource does not expect any significant estimated future cash expenditures associated with this impairment charge.

D.    Provision for Uncollectible Accounts
Eversource, including CL&P, NSTAR Electric and PSNH, presents its receivables at estimated net realizable value by maintaining a provision for uncollectible accounts.  This provision is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category.  The estimate is based upon historical collection and write-off experience and management's assessment of collectability from customers.  Management continuously assesses the collectability of receivables and adjusts collectability estimates based on actual experience.  Receivable balances are written off against the provision for uncollectible accounts when the customer accounts are terminated and these balances are deemed to be uncollectible.

The PURA allows CL&P and Yankee Gas to accelerate the recovery of accounts receivable balances attributable to qualified customers under financial or medical duress (uncollectible hardship accounts receivable) outstanding for greater than 180 days and 90 days, respectively.  The DPU allows NSTAR Electric and NSTAR Gas to recover in rates amounts associated with certain uncollectible hardship accounts receivable. These uncollectible hardship customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets.

The total provision for uncollectible accounts is included in Receivables, Net on the balance sheets. The provision for uncollectible hardship accounts is included in the total uncollectible provision balance. The provision balances are as follows:
 
Total Provision for Uncollectible Accounts
 
Provision for Uncollectible Hardship Accounts
(Millions of Dollars)
As of September 30, 2019
 
As of December 31, 2018
 
As of September 30, 2019
 
As of December 31, 2018
Eversource
$
225.5

 
$
212.7

 
$
146.5

 
$
131.5

CL&P
94.1

 
88.0

 
77.8

 
71.9

NSTAR Electric
80.7

 
74.5

 
49.4

 
42.5

PSNH
10.6

 
11.1

 

 



Uncollectible expense associated with customers' accounts receivable included in Operations and Maintenance expense on the statements of income is as follows:
 
For the Three Months Ended
 
For the Nine Months Ended
(Millions of Dollars)
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Eversource
$
14.9

 
$
21.5

 
$
46.4

 
$
50.7

CL&P
4.5

 
4.4

 
12.1

 
12.1

NSTAR Electric
7.0

 
9.1

 
18.6

 
20.4

PSNH
1.8

 
1.6

 
5.0

 
4.9



E.    Fair Value Measurements
Fair value measurement guidance is applied to derivative contracts that are not elected or designated as "normal purchases" or "normal sales" ("normal") and to the marketable securities held in trusts.  Fair value measurement guidance is also applied to valuations of the investments used to calculate the funded status of pension and PBOP plans, the nonrecurring fair value measurements of nonfinancial assets such as goodwill and AROs, and the estimated fair value of preferred stock, long-term debt and RRBs.

Fair Value Hierarchy:  In measuring fair value, Eversource uses observable market data when available in order to minimize the use of unobservable inputs.  Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes.  The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement.  Eversource evaluates the classification of assets and liabilities measured at fair value on a quarterly basis, and Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.  The three levels of the fair value hierarchy are described below:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date.  Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.  

Level 2 - Inputs are quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable.

Level 3 - Quoted market prices are not available.  Fair value is derived from valuation techniques in which one or more significant inputs or assumptions are unobservable.  Where possible, valuation techniques incorporate observable market inputs that can be validated to external sources such as industry exchanges, including prices of energy and energy-related products.  

Uncategorized - Investments that are measured at net asset value are not categorized within the fair value hierarchy.

Determination of Fair Value:  The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 4, "Derivative Instruments," Note 5, "Marketable Securities," and Note 11, "Fair Value of Financial Instruments," to the financial statements.

F.    Investments in Unconsolidated Affiliates
Investments in Offshore Wind Business: Eversource's offshore wind business includes ownership interests in North East Offshore and Bay State Wind, which together hold power purchase agreements and contracts for the Revolution Wind, South Fork Wind and Sunrise Wind projects. Eversource's offshore wind projects are being developed in joint and equal partnership with Ørsted.

On February 8, 2019, Eversource and Ørsted entered into an equal partnership to acquire key offshore wind assets in the Northeast, where Eversource owns 50 percent of these assets. Eversource's initial payment and contribution under the terms of the partnership agreements totaled approximately $225 million for a 50 percent ownership interest in North East Offshore, which holds the Revolution Wind and South Fork Wind projects, as well as a 257 square-mile lease off the coasts of Massachusetts and Rhode Island. Eversource also has a 50 percent ownership interest in Bay State Wind, which holds the Sunrise Wind project. These equity investments are included in long-term assets on the balance sheet, and earnings impacts are included in Other Income, Net on the statement of income. As of September 30, 2019, Eversource's total equity investment balance in its offshore wind business was $637.2 million. In the third quarter of 2019, Eversource made additional capital contributions of $133.6 million.

G.    Other Income, Net
The components of Other Income, Net on the statements of income were as follows:
 
For the Three Months Ended
 
September 30, 2019
 
September 30, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
Pension, SERP and PBOP Non-Service
   Income Components
$
10.1

 
$
1.7

 
$
5.6

 
$
1.4

 
$
14.8

 
$
2.0

 
$
9.0

 
$
2.0

AFUDC Equity
10.5

 
3.6

 
5.6

 
1.0

 
12.0

 
3.3

 
4.2

 

Equity in Earnings/(Loss) and Impairment of Unconsolidated Affiliates (1)
6.1

 

 
0.2

 

 
(27.9
)
 

 
0.2

 

Investment Income/(Loss)
(2.8
)
 
(0.8
)
 
(0.9
)
 
(0.3
)
 
1.8

 
0.7

 
(0.4
)
 
0.1

Interest Income (2)
2.9

 
0.3

 
0.1

 
2.5

 
10.8

 
0.9

 
0.2

 
9.6

Gain on Sale of Property

 

 

 

 
5.0

 

 
0.5

 
4.4

Other
0.2

 

 
0.1

 

 
0.2

 
0.2

 

 

Total Other Income, Net
$
27.0

 
$
4.8

 
$
10.7

 
$
4.6

 
$
16.7

 
$
7.1

 
$
13.7

 
$
16.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Nine Months Ended
 
September 30, 2019
 
September 30, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
Pension, SERP and PBOP Non-Service
   Income Components
$
23.2

 
$
0.1

 
$
18.0

 
$
3.5

 
$
44.6

 
$
7.3

 
$
26.8

 
$
6.4

AFUDC Equity
34.5

 
9.4

 
14.7

 
2.1

 
32.6

 
9.4

 
11.5

 

Equity in Earnings/(Loss) and Impairment of Unconsolidated Affiliates (1)
37.0

 
0.2

 
0.6

 

 
(0.4
)
 

 
0.6

 

Investment Income/(Loss)
(2.3
)
 
0.9

 
(1.5
)
 

 
2.2

 
0.9

 
0.6

 
0.2

Interest Income (2)
10.8

 
1.1

 
0.5

 
9.0

 
16.2

 
2.9

 
0.6

 
13.3

Gain on Sale of Property
0.2

 

 

 

 
5.0

 

 
0.5

 
4.4

Other
0.4

 
(0.1
)
 
0.2

 

 
0.5

 
0.2

 

 

Total Other Income, Net
$
103.8

 
$
11.6

 
$
32.5

 
$
14.6

 
$
100.7

 
$
20.7

 
$
40.6

 
$
24.3


(1) For the three and nine months ended September 30, 2018, equity in earnings/(loss) and impairment of unconsolidated affiliates includes an other-than-temporary impairment of $32.9 million of the Access Northeast project investment. For the nine months ended September 30, 2019 and 2018, equity in earnings includes $20.4 million and $17.6 million, respectively, of unrealized gains associated with an investment in a renewable energy fund.

(2) For the nine months ended September 30, 2019, see Note 2, "Regulatory Accounting," for further information on $5.2 million of interest income recognized in 2019 for the equity return component of carrying charges on storm costs at PSNH. For the three and nine months ended September 30, 2018, PSNH recognized $8.7 million for the equity return component of carrying charges on storm costs incurred from August 2011 through March 2013.

H.    Other Taxes
Eversource's companies that serve customers in Connecticut collect gross receipts taxes levied by the state of Connecticut from their customers. These gross receipts taxes are recorded separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of income as follows:
 
For the Three Months Ended
 
For the Nine Months Ended
(Millions of Dollars)
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Eversource
$
42.6

 
$
43.5

 
$
124.0

 
$
122.5

CL&P
39.8

 
40.6

 
107.8

 
107.7



As agents for state and local governments, Eversource's companies that serve customers in Connecticut and Massachusetts collect certain sales taxes that are recorded on a net basis with no impact on the statements of income.   

Separate from above were amounts recorded as Taxes Other Than Income Taxes related to the remittance to the State of Connecticut of energy efficiency funds collected from customers in Operating Revenues. These amounts were $21.4 million for the nine months ended September 30, 2019, and $10.7 million and $36.1 million for the three and nine months ended September 30, 2018, respectively. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. These amounts were recorded separately, with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the Eversource and CL&P statements of income.  

I.    Supplemental Cash Flow Information
Non-cash investing activities include plant additions included in Accounts Payable as follows:
(Millions of Dollars)
As of September 30, 2019
 
As of September 30, 2018
Eversource
$
317.8

 
$
303.7

CL&P
107.6

 
103.0

NSTAR Electric
79.0

 
62.5

PSNH
35.8

 
48.3



Beginning in 2019, Eversource began issuing treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan. The issuance of treasury shares represents a non-cash transaction, as the treasury shares were used to fulfill Eversource's obligations that require the issuance of common shares.

The following table reconciles cash as reported on the balance sheets to the cash and restricted cash balance as reported on the statements of cash flows:
 
As of September 30, 2019
 
As of December 31, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
Cash as reported on the Balance Sheets
$
22.7

 
$
9.3

 
$
0.3

 
$
1.6

 
$
108.1

 
$
87.7

 
$
1.6

 
$
1.4

Restricted cash included in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepayments and Other Current Assets
37.7

 
4.6

 
6.1

 
18.5

 
72.1

 
3.5

 
13.0

 
47.5

Marketable Securities
19.6

 
0.4

 
0.1

 
0.7

 
25.9

 
0.4

 
0.1

 
0.6

Other Long-Term Assets
71.9

 

 

 
3.2

 
3.2

 

 

 
3.2

Cash and Restricted Cash reported on the
   Statements of Cash Flows
$
151.9

 
$
14.3

 
$
6.5

 
$
24.0

 
$
209.3

 
$
91.6

 
$
14.7

 
$
52.7



Restricted cash included in Prepayments and Other Current Assets primarily represents cash collections related to the PSNH RRB customer charges that are held in trust, and required ISO-NE cash deposits. Restricted cash included in Marketable Securities represents money market funds held in trusts to fund certain non-qualified executive benefits and restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage facilities obligations. Restricted cash included in Other Long-Term Assets at Eversource primarily relates to DOE Phase IV damages proceeds received at CYAPC and YAEC in the second quarter of 2019. See Note 9D, "Commitments and Contingencies - Spent Nuclear Fuel Obligations - Yankee Companies," for further information.
v3.19.3
REGULATORY ACCOUNTING
9 Months Ended
Sep. 30, 2019
Regulated Operations [Abstract]  
REGULATORY ACCOUNTING REGULATORY ACCOUNTING

Eversource's utility companies are subject to rate regulation that is based on cost recovery and meets the criteria for application of accounting guidance for rate-regulated operations, which considers the effect of regulation on the timing of the recognition of certain revenues and expenses. The regulated companies' financial statements reflect the effects of the rate-making process.  The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, including a return on investment.  

Management believes it is probable that each of the regulated companies will recover its respective investments in long-lived assets, including regulatory assets.  If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to any of the regulated companies' operations, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the costs would be charged to net income in the period in which the determination is made.

Regulatory Assets:  The components of regulatory assets were as follows:
 
As of September 30, 2019
 
As of December 31, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR
Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR
Electric
 
PSNH
Benefit Costs
$
1,835.1

 
$
400.5

 
$
542.8

 
$
148.5

 
$
1,914.8

 
$
424.7

 
$
544.4

 
$
169.6

Income Taxes, Net
713.4

 
460.2

 
108.6

 
11.4

 
728.6

 
454.4

 
105.9

 
8.3

Securitized Stranded Costs
576.1

 

 

 
576.1

 
608.4

 

 

 
608.4

Storm Restoration Costs, Net
508.9

 
258.9

 
190.2

 
59.8

 
576.0

 
302.6

 
212.9

 
60.5

Regulatory Tracker Mechanisms
282.7

 
56.5

 
121.1

 
58.1

 
316.0

 
33.2

 
169.1

 
67.3

Derivative Liabilities
345.8

 
342.3

 

 

 
356.5

 
356.5

 

 

Goodwill-related
335.7

 

 
288.3

 

 
348.4

 

 
299.1

 

Asset Retirement Obligations
101.3

 
33.8

 
51.7

 
3.5

 
89.2

 
32.3

 
42.2

 
3.3

Other Regulatory Assets
131.8

 
25.6

 
57.6

 
13.0

 
208.0

 
27.0

 
64.6

 
12.1

Total Regulatory Assets
4,830.8

 
1,577.8


1,360.3


870.4


5,145.9

 
1,630.7


1,438.2


929.5

Less:  Current Portion
538.2

 
173.3

 
201.2

 
78.1

 
514.8

 
125.2

 
241.7

 
67.2

Total Long-Term Regulatory Assets
$
4,292.6

 
$
1,404.5


$
1,159.1


$
792.3


$
4,631.1

 
$
1,505.5


$
1,196.5


$
862.3



Storm Filings: On November 16, 2018, CL&P filed for recovery of $153 million of storm costs incurred from October 2017 through May 2018, with recovery over six years to begin May 1, 2019.  Through the course of the proceeding, CL&P updated its request to $145.5 million to reflect final invoicing and capitalization amounts. On April 17, 2019, PURA authorized recovery of $141.0 million as part of storm cost recovery and the remainder to be recorded to plant or other balance sheet accounts. CL&P began recovery of the $141.0 million in distribution rates effective May 1, 2019.

On March 26, 2019, the NHPUC approved the recovery of $38.1 million, plus carrying charges, of storm costs incurred from December 2013 through April 2016 and the transfer of funding from PSNH’s major storm reserve to recover those costs. The costs of these storms (excluding the equity return component of the carrying charges) were deferred as regulatory assets, and the funding reserve collected from customers was accrued as a regulatory liability. As a result of the duration of time between incurring storm costs in December 2013 through April 2016 and final approval from the NHPUC in 2019, PSNH recognized $5.2 million (pre-tax) for the equity return component of the carrying charges within Other Income, Net on the statement of income in the first quarter of 2019, which has been collected from customers. Also included in the March 26, 2019 NHPUC approval is a prospective requirement for PSNH to annually net its storm funding reserve collected from customers against deferred storm costs.

In addition, on June 27, 2019, the NHPUC approved a temporary rate settlement that permits PSNH to recover approximately $68.5 million in unrecovered storm costs over a five-year period beginning August 1, 2019, with debt carrying charges.

Regulatory Costs in Long-Term Assets:  Eversource's regulated companies had $144.3 million (including $44.7 million for CL&P, $61.5 million for NSTAR Electric and $17.8 million for PSNH) and $122.9 million (including $42.1 million for CL&P, $49.3 million for NSTAR Electric and $12.2 million for PSNH) of additional regulatory costs as of September 30, 2019 and December 31, 2018, respectively, that were included in long-term assets on the balance sheets.  These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency.  However, based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates.

Regulatory Liabilities:  The components of regulatory liabilities were as follows:
 
As of September 30, 2019
 
As of December 31, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR
Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR
Electric
 
PSNH
EDIT due to Tax Cuts and Jobs Act
$
2,846.9

 
$
1,025.7

 
$
1,083.2

 
$
394.0

 
$
2,883.0

 
$
1,031.0

 
$
1,103.7

 
$
396.4

Cost of Removal
552.0

 
56.3

 
325.2

 
20.5

 
521.0

 
39.9

 
307.1

 
22.1

Benefit Costs
79.7

 

 
67.4

 

 
91.2

 

 
76.9

 

Regulatory Tracker Mechanisms
404.3

 
169.7

 
167.9

 
43.3

 
309.0

 
89.5

 
163.7

 
48.3

AFUDC - Transmission
72.6

 
46.4

 
26.2

 

 
70.7

 
47.4

 
23.3

 

Revenue Subject to Refund due to Tax Cuts
  and Jobs Act
18.3

 

 

 
9.0

 
24.6