EVERSOURCE ENERGY, 10-Q filed on 8/6/2019
Quarterly Report
v3.19.2
DOCUMENT AND ENTITY INFORMATION - shares
6 Months Ended
Jun. 30, 2019
Jul. 31, 2019
Document And Entity [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Fiscal Period Focus Q2  
Document Quarterly Report true  
Document Period End Date Jun. 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)   323,602,045
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
v3.19.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Current Assets:    
Cash $ 20,578 $ 108,068
Receivables, Net 964,314 994,055
Unbilled Revenues 154,920 176,285
Fuel, Materials, Supplies and Inventory 174,124 238,042
Regulatory Assets 515,265 514,779
Prepayments and Other Current Assets 302,496 260,995
Total Current Assets 2,131,697 2,292,224
Property, Plant and Equipment, Net 26,304,446 25,610,428
Deferred Debits and Other Assets:    
Regulatory Assets 4,404,176 4,631,137
Goodwill 4,427,266 4,427,266
Investments in Unconsolidated Affiliates 748,705 464,286
Marketable Securities 401,231 417,508
Other Long-Term Assets 578,385 398,407
Total Deferred Debits and Other Assets 10,559,763 10,338,604
Total Assets 38,995,906 38,241,256
Current Liabilities:    
Notes Payable 729,000 910,000
Long-Term Debt – Current Portion 779,289 837,319
Rate Reduction Bonds – Current Portion 43,210 52,332
Accounts Payable 903,431 1,119,995
Regulatory Liabilities 379,850 370,230
Other Current Liabilities 677,341 823,006
Total Current Liabilities 3,512,121 4,112,882
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 3,549,922 3,506,030
Regulatory Liabilities 3,639,792 3,609,475
Derivative Liabilities 363,848 379,562
Accrued Pension, SERP and PBOP 955,092 962,510
Other Long-Term Liabilities 1,264,061 1,196,336
Total Deferred Credits and Other Liabilities 9,772,715 9,653,913
Long-Term Debt 13,039,180 12,248,743
Rate Reduction Bonds 561,727 583,331
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 6,659,009 6,241,222
Retained Earnings 3,954,492 3,953,974
Accumulated Other Comprehensive Loss (53,641) (60,000)
Treasury Stock (304,559) (317,771)
Common Shareholders' Equity 11,954,593 11,486,817
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization 38,995,906 38,241,256
The Connecticut Light and Power Company    
Current Assets:    
Cash 2,191 87,721
Receivables, Net 415,542 397,026
Accounts Receivable from Affiliated Companies 33,519 23,082
Unbilled Revenues 53,670 56,971
Fuel, Materials, Supplies and Inventory 55,243 44,529
Regulatory Assets 175,706 125,155
Prepayments and Other Current Assets 23,390 60,279
Total Current Assets 759,261 794,763
Property, Plant and Equipment, Net 9,285,633 8,909,701
Deferred Debits and Other Assets:    
Regulatory Assets 1,432,827 1,505,488
Other Long-Term Assets 221,860 199,767
Total Deferred Debits and Other Assets 1,654,687 1,705,255
Total Assets 11,699,581 11,409,719
Current Liabilities:    
Notes Payable to Eversource Parent 259,400 0
Long-Term Debt – Current Portion 0 250,000
Accounts Payable 287,984 324,983
Accounts Payable to Affiliated Companies 76,792 26,452
Obligations to Third Party Suppliers 52,100 56,248
Regulatory Liabilities 112,414 109,614
Derivative Liabilities 62,075 55,058
Other Current Liabilities 147,764 161,088
Total Current Liabilities 998,529 983,443
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 1,192,646 1,166,784
Regulatory Liabilities 1,153,360 1,122,157
Derivative Liabilities 363,717 379,536
Accrued Pension, SERP and PBOP 275,358 282,771
Other Long-Term Liabilities 153,878 155,495
Total Deferred Credits and Other Liabilities 3,138,959 3,106,743
Long-Term Debt 3,309,455 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 1,664,995 1,727,899
Accumulated Other Comprehensive Loss 326 301
Common Shareholders' Equity 4,136,438 4,199,317
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization 11,699,581 11,409,719
NSTAR Electric Company    
Current Assets:    
Cash 177 1,606
Receivables, Net 346,428 361,296
Accounts Receivable from Affiliated Companies 25,071 31,344
Unbilled Revenues 42,144 34,518
Fuel, Materials, Supplies and Inventory 64,513 114,202
Regulatory Assets 210,032 241,747
Prepayments and Other Current Assets 21,289 51,960
Total Current Assets 709,654 836,673
Property, Plant and Equipment, Net 9,075,789 8,794,700
Deferred Debits and Other Assets:    
Regulatory Assets 1,178,974 1,196,512
Prepaid PBOP 146,717 132,810
Other Long-Term Assets 142,573 109,764
Total Deferred Debits and Other Assets 1,468,264 1,439,086
Total Assets 11,253,707 11,070,459
Current Liabilities:    
Notes Payable 163,000 278,500
Notes Payable to Eversource Parent 40,300 0
Long-Term Debt – Current Portion 95,000 0
Accounts Payable 288,153 384,398
Accounts Payable to Affiliated Companies 72,174 89,636
Obligations to Third Party Suppliers 95,360 109,547
Renewable Portfolio Standards Compliance Obligations 66,370 139,898
Regulatory Liabilities 170,970 190,620
Other Current Liabilities 61,710 74,872
Total Current Liabilities 1,053,037 1,267,471
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 1,318,267 1,294,467
Regulatory Liabilities 1,514,845 1,513,279
Accrued Pension, SERP and PBOP 29,323 14,145
Other Long-Term Liabilities 297,346 263,096
Total Deferred Credits and Other Liabilities 3,159,781 3,084,987
Long-Term Debt 3,246,535 2,944,846
Noncontrolling Interest – Preferred Stock of Subsidiaries 43,000 43,000
Common Shareholders' Equity:    
Common Shares 0 0
Capital Surplus, Paid In 1,653,442 1,633,442
Retained Earnings 2,099,059 2,098,091
Accumulated Other Comprehensive Loss (1,147) (1,378)
Common Shareholders' Equity 3,751,354 3,730,155
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization 11,253,707 11,070,459
Public Service Company of New Hampshire    
Current Assets:    
Cash 343 1,439
Receivables, Net 99,416 104,854
Accounts Receivable from Affiliated Companies 11,476 8,444
Unbilled Revenues 39,665 47,145
Taxes Receivable 6,985 25,913
Fuel, Materials, Supplies and Inventory 23,280 37,504
Regulatory Assets 77,854 67,228
Special Deposits 35,017 47,498
Prepayments and Other Current Assets 17,293 17,564
Total Current Assets 311,329 357,589
Property, Plant and Equipment, Net 2,969,347 2,880,073
Deferred Debits and Other Assets:    
Regulatory Assets 827,898 862,288
Other Long-Term Assets 32,428 27,406
Total Deferred Debits and Other Assets 860,326 889,694
Total Assets 4,141,002 4,127,356
Current Liabilities:    
Notes Payable to Eversource Parent 20,100 57,000
Long-Term Debt – Current Portion 150,000 150,000
Rate Reduction Bonds – Current Portion 43,210 52,332
Accounts Payable 103,749 111,292
Accounts Payable to Affiliated Companies 27,195 26,029
Regulatory Liabilities 54,183 55,526
Other Current Liabilities 45,414 64,046
Total Current Liabilities 443,851 516,225
Deferred Credits and Other Liabilities:    
Accumulated Deferred Income Taxes 496,223 481,221
Regulatory Liabilities 416,999 428,069
Accrued Pension, SERP and PBOP 107,007 124,457
Other Long-Term Liabilities 33,584 36,339
Total Deferred Credits and Other Liabilities 1,053,813 1,070,086
Long-Term Debt 951,834 655,173
Rate Reduction Bonds 561,727 583,331
Common Shareholders' Equity:    
Common Shares 0 0
Capital Surplus, Paid In 678,134 678,134
Retained Earnings 453,891 627,258
Accumulated Other Comprehensive Loss (2,248) (2,851)
Common Shareholders' Equity 1,129,777 1,302,541
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 4,141,002 $ 4,127,356
v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Operating Revenues $ 1,884,495 $ 1,853,856 $ 4,300,287 $ 4,141,818
Operating Expenses:        
Purchased Power, Fuel and Transmission 620,904 653,915 1,595,786 1,600,662
Operations and Maintenance 328,010 293,858 663,606 626,406
Depreciation 219,084 199,140 434,032 403,406
Amortization 38,945 36,203 109,906 81,397
Energy Efficiency Programs 105,837 101,955 245,953 236,196
Taxes Other Than Income Taxes 181,083 177,431 365,672 359,865
Impairment of Northern Pass Transmission 239,644 0 239,644 0
Total Operating Expenses 1,733,507 1,462,502 3,654,599 3,307,932
Operating Income/(Loss) 150,988 391,354 645,688 833,886
Interest Expense 132,705 126,404 264,438 247,533
Other Income, Net 45,866 50,149 76,850 83,938
Income Before Income Tax Expense 64,149 315,099 458,100 670,291
Income Tax Expense 30,815 70,452 114,209 154,219
Net Income 33,334 244,647 343,891 516,072
Net Income Attributable to Noncontrolling Interests 1,880 1,880 3,759 3,759
Net Income Attributable to Common Shareholders $ 31,454 $ 242,767 $ 340,132 $ 512,313
Basic and Diluted Earnings Per Common Share (in dollars per share) $ 0.10 $ 0.76 $ 1.07 $ 1.61
Weighted Average Common Shares Outstanding:        
Basic (in shares) 319,664,998 317,344,596 318,644,796 317,370,825
Diluted (in shares) 320,388,490 317,885,187 319,352,287 317,939,094
The Connecticut Light and Power Company        
Operating Revenues $ 740,846 $ 694,892 $ 1,590,092 $ 1,479,875
Operating Expenses:        
Purchased Power, Fuel and Transmission 246,540 234,335 566,373 536,223
Operations and Maintenance 133,351 109,685 263,989 226,977
Depreciation 74,555 69,383 147,844 136,881
Amortization of Regulatory Assets, Net 12,376 15,400 48,047 43,405
Energy Efficiency Programs 20,780 18,606 46,768 41,366
Taxes Other Than Income Taxes 86,465 84,375 178,463 174,676
Total Operating Expenses 574,067 531,784 1,251,484 1,159,528
Operating Income/(Loss) 166,779 163,108 338,608 320,347
Interest Expense 36,972 38,674 72,754 75,498
Other Income, Net 2,853 7,063 6,733 13,623
Income Before Income Tax Expense 132,660 131,497 272,587 258,472
Income Tax Expense 27,856 31,785 57,312 60,192
Net Income 104,804 99,712 215,275 198,280
NSTAR Electric Company        
Operating Revenues 681,893 690,737 1,479,505 1,460,865
Operating Expenses:        
Purchased Power, Fuel and Transmission 228,397 266,108 558,501 598,687
Operations and Maintenance 108,924 102,163 221,887 220,844
Depreciation 73,055 64,051 145,639 134,593
Amortization of Regulatory Assets, Net 23,184 11,954 45,768 18,318
Energy Efficiency Programs 65,904 65,184 142,633 139,978
Taxes Other Than Income Taxes 48,226 47,627 93,047 95,815
Total Operating Expenses 547,690 557,087 1,207,475 1,208,235
Operating Income/(Loss) 134,203 133,650 272,030 252,630
Interest Expense 28,238 27,359 56,120 53,822
Other Income, Net 10,657 14,269 21,743 26,870
Income Before Income Tax Expense 116,622 120,560 237,653 225,678
Income Tax Expense 26,888 32,639 53,906 60,607
Net Income 89,734 87,921 183,747 165,071
Public Service Company of New Hampshire        
Operating Revenues 240,900 235,146 517,335 502,497
Operating Expenses:        
Purchased Power, Fuel and Transmission 85,768 83,494 199,299 193,212
Operations and Maintenance 52,729 46,487 105,359 97,867
Depreciation 23,261 22,808 46,180 46,301
Amortization of Regulatory Assets, Net 5,857 8,926 19,523 13,961
Energy Efficiency Programs 6,215 4,674 12,929 9,831
Taxes Other Than Income Taxes 20,725 21,879 38,037 38,680
Total Operating Expenses 194,555 188,268 421,327 399,852
Operating Income/(Loss) 46,345 46,878 96,008 102,645
Interest Expense 13,909 14,612 28,276 27,386
Other Income, Net 2,984 3,409 10,006 8,159
Income Before Income Tax Expense 35,420 35,675 77,738 83,418
Income Tax Expense 8,568 9,896 18,104 22,547
Net Income $ 26,852 $ 25,779 $ 59,634 $ 60,871
v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net Income $ 33,334 $ 244,647 $ 343,891 $ 516,072
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments 262   578  
Qualified Cash Flow Hedging Instruments   471   1,195
Changes in Unrealized Gains/(Losses) on Marketable Securities 444 (144) 1,099 (588)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 3,457 1,815 4,682 4,808
Other Comprehensive Income, Net of Tax 4,163 2,142 6,359 5,415
Comprehensive Income Attributable to Noncontrolling Interests (1,880) (1,880) (3,759) (3,759)
Comprehensive Income Attributable to Common Shareholders 35,617 244,909 346,491 517,728
The Connecticut Light and Power Company        
Net Income 104,804 99,712 215,275 198,280
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments (7)   (13)  
Qualified Cash Flow Hedging Instruments   13   65
Changes in Unrealized Gains/(Losses) on Marketable Securities 15 (4) 38 (16)
Other Comprehensive Income, Net of Tax 8 9 25 49
Comprehensive Income Attributable to Common Shareholders 104,812 99,721 215,300 198,329
NSTAR Electric Company        
Net Income 89,734 87,921 183,747 165,071
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments 109   219  
Qualified Cash Flow Hedging Instruments   109   218
Changes in Unrealized Gains/(Losses) on Marketable Securities 4 (1) 10 (5)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 1 1 2 2
Other Comprehensive Income, Net of Tax 114 109 231 215
Comprehensive Income Attributable to Common Shareholders 89,848 88,030 183,978 165,286
Public Service Company of New Hampshire        
Net Income 26,852 25,779 59,634 60,871
Other Comprehensive Income, Net of Tax:        
Qualified Cash Flow Hedging Instruments 269   538  
Qualified Cash Flow Hedging Instruments   277   567
Changes in Unrealized Gains/(Losses) on Marketable Securities 27 (8) 65 (29)
Other Comprehensive Income, Net of Tax 296 269 603 538
Comprehensive Income Attributable to Common Shareholders $ 27,148 $ 26,048 $ 60,237 $ 61,409
v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Shares
Capital Surplus, Paid In
Retained Earnings
Accumulated Other Comprehensive 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 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 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 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 516,072           198,280         165,071         60,871        
Dividends on Preferred Stock (3,800)                                        
Other Comprehensive Income 5,415           49         215         538        
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)
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)
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 343,891           215,275         183,747         59,634        
Dividends on Preferred Stock (3,800)                                        
Other Comprehensive Income $ 6,359           25         231         603        
Balance (in shares) at Jun. 30, 2019 323,574,439 323,574,439           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)
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 323,574,439 323,574,439           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)
v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
3 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]        
Dividends on Common Shares (in dollars per share) $ 0.535 $ 0.535 $ 0.505 $ 0.505
Issuance of Common Shares, par value (in dollars per share) $ 5      
v3.19.2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Operating Activities:    
Net Income $ 343,891 $ 516,072
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 434,032 403,406
Deferred Income Taxes 36,535 161,883
Uncollectible Expense 31,546 29,250
Pension, SERP and PBOP Expense, Net 13,227 3,317
Pension and PBOP Contributions (6,648) (179,002)
Regulatory (Under)/Over Recoveries, Net 23,830 36,669
Amortization 109,906 81,397
Proceeds from DOE Spent Nuclear Fuel Litigation 68,840 0
Impairment of Northern Pass Transmission 239,644 0
Other (137,428) (103,256)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net 6,357 (52,923)
Fuel, Materials, Supplies and Inventory 63,918 65,609
Taxes Receivable/Accrued, Net (6,883) (132,999)
Accounts Payable (156,077) (80,059)
Other Current Assets and Liabilities, Net (140,103) (51,229)
Net Cash Flows Provided by Operating Activities 924,587 698,135
Investing Activities:    
Investments in Property, Plant and Equipment (1,377,753) (1,251,678)
Proceeds from Sales of Marketable Securities 348,904 316,252
Purchases of Marketable Securities (302,950) (314,406)
Proceeds from the Sale of PSNH Generation Assets 0 116,809
Investments in Unconsolidated Affiliates (265,955) (13,220)
Other Investing Activities 4,055 (902)
Net Cash Flows Used in Investing Activities (1,593,699) (1,147,145)
Financing Activities:    
Issuance of Common Shares, Net of Issuance Costs 426,902 0
Cash Dividends on Common Shares (323,346) (320,055)
Cash Dividends on Preferred Stock (3,759) (3,759)
(Decrease)/Increase in Notes Payable (181,000) (98,500)
Issuance of Rate Reduction Bonds 0 635,663
Repayment of Rate Reduction Bonds (30,727) 0
Issuance of Long-Term Debt 1,000,000 1,150,000
Retirement of Long-Term Debt (250,437) (860,421)
Other Financing Activities (10,682) (17,958)
Net Cash Flows Provided by Financing Activities 626,951 484,970
Net (Decrease)/Increase in Cash and Restricted Cash (42,161) 35,960
Cash and Restricted Cash - Beginning of Period 209,324 85,890
Cash and Restricted Cash - End of Period 167,163 121,850
The Connecticut Light and Power Company    
Operating Activities:    
Net Income 215,275 198,280
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 147,844 136,881
Deferred Income Taxes 16,513 50,915
Uncollectible Expense 7,627 7,747
Pension, SERP and PBOP Expense, Net 6,926 3,861
Pension Contributions 0 (41,150)
Regulatory (Under)/Over Recoveries, Net (40,460) (39,908)
Amortization of Regulatory Assets, Net 48,047 43,405
Other (40,290) (40,825)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net (37,101) (34,772)
Taxes Receivable/Accrued, Net 19,701 105
Accounts Payable 5,443 (30,805)
Other Current Assets and Liabilities, Net (3,941) 14,377
Net Cash Flows Provided by Operating Activities 345,584 268,111
Investing Activities:    
Investments in Property, Plant and Equipment (466,112) (457,677)
Other Investing Activities 551 110
Net Cash Flows Used in Investing Activities (465,561) (457,567)
Financing Activities:    
Cash Dividends on Common Shares (275,400) (60,000)
Cash Dividends on Preferred Stock (2,779) (2,779)
Capital Contributions from Eversource Parent 0 100,000
Issuance of Long-Term Debt 300,000 500,000
Retirement of Long-Term Debt (250,000) (300,000)
Increase/(Decrease) in Notes Payable to Eversource Parent 259,400 (45,500)
Other Financing Activities 4,237 (6,189)
Net Cash Flows Provided by Financing Activities 35,458 185,532
Net (Decrease)/Increase in Cash and Restricted Cash (84,519) (3,924)
Cash and Restricted Cash - Beginning of Period 91,613 9,619
Cash and Restricted Cash - End of Period 7,094 5,695
NSTAR Electric Company    
Operating Activities:    
Net Income 183,747 165,071
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 145,639 134,593
Deferred Income Taxes 11,603 29,238
Uncollectible Expense 11,605 11,301
Pension, SERP and PBOP Income, Net (7,052) (19,785)
Pension and PBOP Contributions (3,007) (59,156)
Regulatory (Under)/Over Recoveries, Net 17,063 34,090
Amortization of Regulatory Assets, Net 45,768 18,318
Other (36,973) (14,646)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net (6,769) (40,073)
Fuel, Materials, Supplies and Inventory 49,688 45,058
Taxes Receivable/Accrued, Net 25,572 (37,268)
Accounts Payable (82,326) (17,194)
Other Current Assets and Liabilities, Net (103,054) (46,861)
Net Cash Flows Provided by Operating Activities 251,504 202,686
Investing Activities:    
Investments in Property, Plant and Equipment (418,571) (356,497)
Other Investing Activities 41 31
Net Cash Flows Used in Investing Activities (418,530) (356,466)
Financing Activities:    
Cash Dividends on Common Shares (181,800) (161,000)
Cash Dividends on Preferred Stock (980) (980)
Capital Contributions from Eversource Parent 20,000 100,500
Increase in Notes Payable to Eversource Parent 40,300 0
(Decrease)/Increase in Notes Payable (115,500) 213,810
Issuance of Long-Term Debt 400,000 0
Other Financing Activities (3,287) (158)
Net Cash Flows Provided by Financing Activities 158,733 152,172
Net (Decrease)/Increase in Cash and Restricted Cash (8,293) (1,608)
Cash and Restricted Cash - Beginning of Period 14,659 14,708
Cash and Restricted Cash - End of Period 6,366 13,100
Public Service Company of New Hampshire    
Operating Activities:    
Net Income 59,634 60,871
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:    
Depreciation 46,180 46,301
Deferred Income Taxes 12,030 41,981
Uncollectible Expense 3,100 3,200
Regulatory (Under)/Over Recoveries, Net (29,377) (29,816)
Amortization of Regulatory Assets, Net 19,523 13,961
Other (7,381) (3,428)
Changes in Current Assets and Liabilities:    
Receivables and Unbilled Revenues, Net 7,658 (10,510)
Fuel, Materials, Supplies and Inventory 14,225 21,803
Taxes Receivable/Accrued, Net 18,029 (15,475)
Accounts Payable (1,159) (4,843)
Other Current Assets and Liabilities, Net (17,620) (8,050)
Net Cash Flows Provided by Operating Activities 121,742 112,795
Investing Activities:    
Investments in Property, Plant and Equipment (132,791) (149,925)
Proceeds from the Sale of PSNH Generation Assets 0 116,809
Other Investing Activities 743 243
Net Cash Flows Used in Investing Activities (132,048) (32,873)
Financing Activities:    
Cash Dividends on Common Shares (233,000) (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 (30,727) 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 (36,900) (144,200)
Other Financing Activities (2,703) (75)
Net Cash Flows Provided by Financing Activities (3,330) (73,612)
Net (Decrease)/Increase in Cash and Restricted Cash (13,636) 6,310
Cash and Restricted Cash - Beginning of Period 52,723 2,191
Cash and Restricted Cash - End of Period $ 39,087 $ 8,501
v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 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 June 30, 2019 and December 31, 2018, and the results of operations, comprehensive income and common shareholders' equity for the three and six months ended June 30, 2019 and 2018, and the cash flows for the six months ended June 30, 2019 and 2018. The results of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018 and the cash flows for the six months ended June 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 new standard also revises the other-than-temporary impairment model for available-for-sale debt securities. The standard is effective January 1, 2020, and requires a modified retrospective transition approach 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.

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 is 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. 

On March 30, 2018, the New Hampshire Site Evaluation Committee (“NHSEC”), one of the state regulatory agencies from which Northern Pass was required to obtain a siting permit, issued a written decision denying Northern Pass’ siting application. In the first quarter of 2018, Eversource conducted an impairment review of the Northern Pass project and concluded, at that time, that the recorded amount of project costs was recoverable. On July 12, 2018, the NHSEC issued a written decision denying Northern Pass’ April 2018 motion for rehearing, and on October 12, 2018, the New Hampshire Supreme Court accepted an appeal filed by Northern Pass that alleged that the NHSEC failed to follow applicable law in its review of the project. On July 19, 2019, the New Hampshire Supreme Court issued a decision denying Northern Pass’ appeal and affirming the NHSEC’s evaluation and decision that denied Northern Pass’ siting application.

Eversource evaluated the impact of the New Hampshire Supreme Court decision on the probability of construction and operation of Northern Pass. Eversource concluded that construction of the project was no longer probable and that substantially all of the capitalized project costs, which totaled $318 million, certain of which are subject to cost reimbursement agreements, were impaired. Eversource concluded that the New Hampshire Supreme Court decision is a subsequent event that required recognition in the financial statements as of and for the three and six months ended June 30, 2019.

Based on the conclusion that the construction of Northern Pass was not probable, Eversource recorded an impairment charge 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 three and six months ended June 30, 2019, and was reflected in the Electric Transmission segment. The after-tax impact of the 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 June 30, 2019
 
As of December 31, 2018
 
As of June 30, 2019
 
As of December 31, 2018
Eversource
$
226.4

 
$
212.7

 
$
137.9

 
$
131.5

CL&P
88.7

 
88.0

 
70.9

 
71.9

NSTAR Electric
81.8

 
74.5

 
47.7

 
42.5

PSNH
11.2

 
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 Six Months Ended
(Millions of Dollars)
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Eversource
$
13.0

 
$
9.5

 
$
31.5

 
$
29.3

CL&P
3.5

 
3.8

 
7.6

 
7.7

NSTAR Electric
5.7

 
3.8

 
11.6

 
11.3

PSNH
1.4

 
1.5

 
3.1

 
3.2



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 collectively hold power purchase agreements for the Revolution Wind and South Fork Wind projects and are in process of negotiating a power purchase agreement for the Sunrise Wind project. Eversource's offshore wind projects are being developed in partnership with Ørsted.

On February 8, 2019, Eversource and Ørsted entered into a 50-50 partnership for key offshore wind assets in the Northeast. Eversource's initial payment and contribution under the terms of the partnership agreements totaled approximately $225 million for a 50 percent interest in North East Offshore, which holds the Revolution Wind and South Fork Wind power projects, as well as a 257 square-mile lease off the coasts of Massachusetts and Rhode Island. Eversource also has a 50 percent ownership in Bay State Wind, which holds the Sunrise Wind power 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 June 30, 2019, Eversource's total equity investment balance in its offshore wind business was $499.5 million. In July 2019, Eversource made an additional capital contribution of $54.9 million.

G.    Other Income, Net
The components of Other Income, Net on the statements of income were as follows:
 
For the Three Months Ended
 
June 30, 2019
 
June 30, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
Pension, SERP and PBOP Non-Service
   Income/(Expense) Components
$
5.8

 
$
(0.9
)
 
$
5.4

 
$
1.5

 
$
14.6

 
$
2.4

 
$
9.5

 
$
2.1

AFUDC Equity
13.1

 
3.2

 
5.1

 
0.9

 
10.9

 
3.3

 
3.9

 

Equity in Earnings (1)
25.9

 
0.1

 
0.2

 

 
22.9

 

 
0.4

 

Investment Income/(Loss)
(0.6
)
 
(0.1
)
 
(0.3
)
 
(0.1
)
 
(0.3
)
 
0.4

 
0.3

 

Interest Income
1.3

 
0.5

 
0.2

 
0.7

 
1.9

 
1.0

 
0.2

 
1.3

Other
0.4

 
0.1

 
0.1

 

 
0.1

 

 

 

Total Other Income, Net
$
45.9

 
$
2.9

 
$
10.7

 
$
3.0

 
$
50.1

 
$
7.1

 
$
14.3

 
$
3.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended
 
June 30, 2019
 
June 30, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR Electric
 
PSNH
Pension, SERP and PBOP Non-Service
   Income/(Expense) Components
$
13.1

 
$
(1.6
)
 
$
12.4

 
$
2.0

 
$
29.8

 
$
5.3

 
$
17.9

 
$
4.4

AFUDC Equity
24.1

 
5.8

 
9.1

 
1.1

 
20.6

 
6.1

 
7.3

 

Equity in Earnings (1)
30.9

 
0.1

 
0.4

 

 
27.5

 

 
0.4

 

Investment Income/(Loss)
0.6

 
1.7

 
(0.6
)
 
0.2

 
0.4

 
0.2

 
0.9

 
0.1

Interest Income (2)
7.8

 
0.8

 
0.4

 
6.6

 
5.4

 
2.0

 
0.4

 
3.7

Other
0.4

 
(0.1
)
 

 
0.1

 
0.2

 

 

 

Total Other Income, Net
$
76.9

 
$
6.7

 
$
21.7

 
$
10.0

 
$
83.9

 
$
13.6

 
$
26.9

 
$
8.2


(1) Equity in earnings includes $20.4 million of unrealized gains associated with an investment in a renewable energy fund for both the three and six months ended June 30, 2019. For both the three and six months ended June 30, 2018, unrealized gains on this investment totaled $17.6 million.

(2) See Note 2, "Regulatory Accounting" for interest income recognized in 2019 for the equity return component of carrying charges on storm costs at PSNH.

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 Six Months Ended
(Millions of Dollars)
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Eversource
$
36.4

 
$
35.6

 
$
81.4

 
$
79.0

CL&P
31.8

 
31.5

 
68.0

 
67.1



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 are amounts recorded as Taxes Other than Income Taxes related to the future remittance to the State of Connecticut of energy efficiency funds collected from customers in Operating Revenues. These amounts are $10.7 million and $21.4 million for the three and six months ended June 30, 2019, respectively, and $12.7 million and $25.4 million for the three and six months ended June 30, 2018, respectively. These amounts are 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 June 30, 2019
 
As of June 30, 2018
Eversource
$
323.7

 
$
305.7

CL&P
114.0

 
110.9

NSTAR Electric
85.2

 
71.1

PSNH
29.9

 
46.6



Beginning in 2019, Eversource began issuing treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment 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 June 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
$
20.6

 
$
2.2

 
$
0.2

 
$
0.3

 
$
108.1

 
$
87.7

 
$
1.6

 
$
1.4

Restricted cash included in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepayments and Other Current Assets
54.1

 
4.6

 
6.1

 
35.0

 
72.1

 
3.5

 
13.0

 
47.5

Marketable Securities
20.5

 
0.3

 
0.1

 
0.6

 
25.9

 
0.4

 
0.1

 
0.6

Other Long-Term Assets
72.0

 

 

 
3.2

 
3.2

 

 

 
3.2

Cash and Restricted Cash reported on the
   Statements of Cash Flows
$
167.2

 
$
7.1

 
$
6.4

 
$
39.1

 
$
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.
v3.19.2
REGULATORY ACCOUNTING
6 Months Ended
Jun. 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 June 30, 2019
 
As of December 31, 2018
(Millions of Dollars)
Eversource
 
CL&P
 
NSTAR
Electric
 
PSNH
 
Eversource
 
CL&P
 
NSTAR
Electric
 
PSNH
Benefit Costs
$
1,870.5

 
$
407.4

 
$
554.8

 
$
151.1

 
$
1,914.8

 
$
424.7

 
$
544.4

 
$
169.6

Income Taxes, Net
702.6

 
456.5

 
104.1

 
10.1

 
728.6

 
454.4

 
105.9

 
8.3

Securitized Stranded Costs
586.9

 

 

 
586.9

 
608.4

 

 

 
608.4

Storm Restoration Costs, Net
536.7

 
279.6

 
191.2

 
65.9

 
576.0

 
302.6

 
212.9

 
60.5

Regulatory Tracker Mechanisms
289.0

 
60.3

 
138.2

 
70.6

 
316.0

 
33.2

 
169.1

 
67.3

Derivative Liabilities
347.9

 
345.4

 

 

 
356.5

 
356.5

 

 

Goodwill-related
340.0

 

 
291.9

 

 
348.4

 

 
299.1

 

Asset Retirement Obligations
97.1

 
33.3

 
48.3

 
3.5

 
89.2

 
32.3

 
42.2

 
3.3

Other Regulatory Assets
148.8

 
26.0

 
60.5

 
17.7

 
208.0

 
27.0

 
64.6

 
12.1

Total Regulatory Assets
4,919.5

 
1,608.5


1,389.0


905.8


5,145.9

 
1,630.7


1,438.2


929.5

Less:  Current Portion
515.3

 
175.7

 
210.0

 
77.9

 
514.8

 
125.2

 
241.7

 
67.2

Total Long-Term Regulatory Assets
$
4,404.2

 
$
1,432.8


$
1,179.0


$
827.9


$
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. All approved amounts will be fully recoverable through specific mechanisms or through future rate cases.

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 $142.0 million (including $43.6 million for CL&P, $61.4 million for NSTAR Electric and $15.3 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 June 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 June 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
$
2,860.7

 
$
1,028.7

 
$
1,090.0

 
$
395.4

 
$
2,883.0

 
$
1,031.0

 
$
1,103.7

 
$
396.4

Cost of Removal
544.9

 
51.0

 
319.4

 
21.4

 
521.0

 
39.9

 
307.1

 
22.1

Benefit Costs
83.8

 

 
70.9

 

 
91.2

 

 
76.9

 

Regulatory Tracker Mechanisms
333.3

 
110.0

 
141.9

 
31.2

 
309.0

 
89.5

 
163.7

 
48.3

AFUDC - Transmission
71.7

 
46.7

 
25.0

 

 
70.7

 
47.4

 
23.3

 

Revenue Subject to Refund due to Tax Cuts
  and Jobs Act
29.2

 

 

 
19.1

 
24.6

 

 

 
12.6

Other Regulatory Liabilities
96.1

 
29.4

 
38.6

 
4.1

 
80.2

 
24.0

 
29.2

 
4.2

Total Regulatory Liabilities
4,019.7

 
1,265.8


1,685.8


471.2


3,979.7

 
1,231.8


1,703.9


483.6

Less:  Current Portion
379.9

 
112.4

 
171.0

 
54.2

 
370.2

 
109.6

 
190.6

 
55.5

Total Long-Term Regulatory Liabilities
$
3,639.8

 
$
1,153.4


$
1,514.8


$
417.0


$
3,609.5

 
$
1,122.2


$
1,513.3


$
428.1


v3.19.2
PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION
6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize property, plant and equipment by asset category:
Eversource
As of June 30, 2019
 
As of December 31, 2018
(Millions of Dollars)
 
Distribution - Electric
$
15,472.1

 
$
15,071.1

Distribution - Natural Gas
3,632.9

 
3,546.2

Transmission - Electric
10,449.5

 
10,153.9

Distribution - Water
1,664.1

 
1,639.8

Solar
196.9