Equibles

10-Q

NSTAR ELECTRIC CO (NSARO)

10-Q 2020-05-08 For: 2020-03-31
View Original
Added on April 06, 2026
UNITED STATES SECURITIES AND EXCHANGE COMMISSION<br><br>WASHINGTON, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE<br><br>SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2020
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     <br>SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________

Registrant; State of Incorporation; Address; Telephone Number;

Commission File Number; and I.R.S. Employer Identification No.

EVERSOURCE ENERGY

(a Massachusetts voluntary association)

300 Cadwell Drive, Springfield, Massachusetts

01104

Telephone: (800) 286-5000

Commission File Number: 1-5324

I.R.S. Employer Identification No. 04-2147929

THE CONNECTICUT LIGHT AND POWER COMPANY

(a Connecticut corporation)

107 Selden Street, Berlin, Connecticut

06037-1616

Telephone: (800) 286-5000

Commission File Number: 0-00404

I.R.S. Employer Identification No. 06-0303850

NSTAR ELECTRIC COMPANY

(a Massachusetts corporation)

800 Boylston Street, Boston, Massachusetts

02199

Telephone: (800) 286-5000

Commission File Number: 1-02301

I.R.S. Employer Identification No. 04-1278810

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

(a New Hampshire corporation)

Energy Park

780 North Commercial Street, Manchester, New Hampshire

03101-1134

Telephone: (800) 286-5000

Commission File Number: 1-6392

I.R.S. Employer Identification No. 02-0181050

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares, $5.00 par value per share ES New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

Yes No
☒ ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files).

Yes No
☒ ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Eversource Energy Large accelerated filer ☒ Accelerated<br><br>filer ☐ Non-accelerated<br><br>filer ☐ Smaller reporting company ☐ Emerging growth company ☐
The Connecticut Light and Power Company Large accelerated filer ☐ Accelerated<br><br>filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐
NSTAR Electric Company Large accelerated filer ☐ Accelerated<br><br>filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐
Public Service Company of New Hampshire Large accelerated filer ☐ Accelerated<br><br>filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):

Yes No
Eversource Energy ☐ ☒
The Connecticut Light and Power Company ☐ ☒
NSTAR Electric Company ☐ ☒
Public Service Company of New Hampshire ☐ ☒

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

Company - Class of Stock Outstanding as of April 30, 2020
Eversource Energy Common Shares, $5.00 par value 336,442,541 shares
The Connecticut Light and Power Company Common Stock, $10.00 par value 6,035,205 shares
NSTAR Electric Company Common Stock, $1.00 par value 200 shares
Public Service Company of New Hampshire Common Stock, $1.00 par value 301 shares

Eversource Energy holds all of the

6,035,205

shares,

200

shares, and

301

shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire, respectively.

NSTAR Electric Company and Public Service Company of New Hampshire each meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10‑Q.

Eversource Energy, The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire each separately file this combined Form 10-Q.  Information contained herein relating to any individual registrant is filed by such registrant on its own behalf.  Each registrant makes no representation as to information relating to the other registrants.

GLOSSARY OF TERMS

The following is a glossary of abbreviations and acronyms that are found in this report: Current or former Eversource Energy companies, segments or investments:
Eversource, ES or the Company Eversource Energy and subsidiaries
Eversource parent or ES parent Eversource Energy, a public utility holding company
ES parent and other companies ES parent and other companies are comprised of Eversource parent, Eversource Service, Eversource Water Ventures, Inc. (parent company of Aquarion), and other subsidiaries, which primarily includes our unregulated businesses, HWP Company, The Rocky River Realty Company (a real estate subsidiary), the consolidated operations of CYAPC and YAEC, and Eversource parent's equity ownership interests that are not consolidated
CL&P The Connecticut Light and Power Company
NSTAR Electric NSTAR Electric Company
PSNH Public Service Company of New Hampshire
PSNH Funding PSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH
NSTAR Gas NSTAR Gas Company
Yankee Gas Yankee Gas Services Company
Aquarion Eversource Aquarion Holdings, Inc. and its subsidiaries
NPT Northern Pass Transmission LLC
Northern Pass The HVDC and associated alternating-current transmission line project from Canada into New Hampshire
HEEC Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric
Eversource Service Eversource Energy Service Company
Bay State Wind Bay State Wind LLC, an offshore wind business being developed jointly by Eversource and Denmark-based Ørsted, which holds the Sunrise Wind project
North East Offshore North East Offshore, LLC, an offshore wind business holding company being developed jointly by Eversource and Denmark-based Ørsted, which holds the Revolution Wind and South Fork Wind projects
CYAPC Connecticut Yankee Atomic Power Company
MYAPC Maine Yankee Atomic Power Company
YAEC Yankee Atomic Electric Company
Yankee Companies CYAPC, YAEC and MYAPC
Regulated companies The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, NPT, Aquarion, and the solar power facilities of NSTAR Electric
Regulators:
DEEP Connecticut Department of Energy and Environmental Protection
DOE U.S. Department of Energy
DOER Massachusetts Department of Energy Resources
DPU Massachusetts Department of Public Utilities
EPA U.S. Environmental Protection Agency
FERC Federal Energy Regulatory Commission
ISO-NE ISO New England, Inc., the New England Independent System Operator
MA DEP Massachusetts Department of Environmental Protection
NHPUC New Hampshire Public Utilities Commission
PURA Connecticut Public Utilities Regulatory Authority
SEC U.S. Securities and Exchange Commission
SJC Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
ADIT Accumulated Deferred Income Taxes
AFUDC Allowance For Funds Used During Construction
AOCI Accumulated Other Comprehensive Income
ARO Asset Retirement Obligation
Bcf Billion cubic feet
C&LM Conservation and Load Management
CfD Contract for Differences
CTA Competitive Transition Assessment
CWIP Construction Work in Progress
EDC Electric distribution company
EDIT Excess Deferred Income Taxes
EPS Earnings Per Share
ERISA Employee Retirement Income Security Act of 1974

i

ESOP Employee Stock Ownership Plan
Eversource 2019 Form 10-K The Eversource Energy and Subsidiaries 2019 combined Annual Report on Form 10-K as filed with the SEC
Fitch Fitch Ratings
FMCC Federally Mandated Congestion Charge
FTR Financial Transmission Rights
GAAP Accounting principles generally accepted in the United States of America
GSC Generation Service Charge
GSRP Greater Springfield Reliability Project
GWh Gigawatt-Hours
HQ Hydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDC High-voltage direct current
Hydro Renewable Energy Hydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec
IPP Independent Power Producers
ISO-NE Tariff ISO-NE FERC Transmission, Markets and Services Tariff
kV Kilovolt
kVa Kilovolt-ampere
kW Kilowatt (equal to one thousand watts)
LBR Lost Base Revenue
LNG Liquefied natural gas
LRS Supplier of last resort service
MG Million gallons
MGP Manufactured Gas Plant
MMBtu One million British thermal units
MMcf Million cubic feet
Moody's Moody's Investors Services, Inc.
MW Megawatt
MWh Megawatt-Hours
NEEWS New England East-West Solution
NETOs New England Transmission Owners (including Eversource, National Grid and Avangrid)
OCI Other Comprehensive Income/(Loss)
PAM Pension and PBOP Rate Adjustment Mechanism
PBOP Postretirement Benefits Other Than Pension
PBOP Plan Postretirement Benefits Other Than Pension Plan
Pension Plan Single uniform noncontributory defined benefit retirement plan
PPA Power purchase agreement
RECs Renewable Energy Certificates
Regulatory ROE The average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment
ROE Return on Equity
RRBs Rate Reduction Bonds or Rate Reduction Certificates
RSUs Restricted share units
S&P Standard & Poor's Financial Services LLC
SBC Systems Benefits Charge
SCRC Stranded Cost Recovery Charge
SERP Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SS Standard service
TCAM Transmission Cost Adjustment Mechanism
TSA Transmission Service Agreement
UI The United Illuminating Company
VIE Variable Interest Entity

ii

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

TABLE OF CONTENTS

Page
PART I – FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Eversource Energy and Subsidiaries (Unaudited)
Condensed Consolidated Balance Sheets 1
Condensed Consolidated Statements of Income 2
Condensed Consolidated Statements of Comprehensive Income 2
Condensed Consolidated Statements of Common Shareholders' Equity 3
Condensed Consolidated Statements of Cash Flows 4
The Connecticut Light and Power Company (Unaudited)
Condensed Balance Sheets 5
Condensed Statements of Income 6
Condensed Statements of Comprehensive Income 6
Condensed Statements of Common Stockholder's Equity 7
Condensed Statements of Cash Flows 8
NSTAR Electric Company and Subsidiary (Unaudited)
Condensed Consolidated Balance Sheets 9
Condensed Consolidated Statements of Income 10
Condensed Consolidated Statements of Comprehensive Income 10
Condensed Consolidated Statements of Common Stockholder's Equity 11
Condensed Consolidated Statements of Cash Flows 12
Public Service Company of New Hampshire and Subsidiaries (Unaudited)
Condensed Consolidated Balance Sheets 13
Condensed Consolidated Statements of Income 14
Condensed Consolidated Statements of Comprehensive Income 14
Condensed Consolidated Statements of Common Stockholder's Equity 15
Condensed Consolidated Statements of Cash Flows 16
Combined Notes to Condensed Financial Statements (Unaudited) 17
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Eversource Energy and Subsidiaries 37
The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and<br><br>Public Service Company of New Hampshire and Subsidiaries 53
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 57
ITEM 4. Controls and Procedures 57
PART II – OTHER INFORMATION
ITEM 1. Legal Proceedings 58
ITEM 1A. Risk Factors 58
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 59
ITEM 6. Exhibits 60
SIGNATURES 62

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (Thousands of Dollars) As of March 31, 2020 As of December 31, 2019
ASSETS
Current Assets:
Cash $ 47,425 $ 15,432
Receivables, Net (net of allowance for uncollectible accounts of $262,078 and $224,821 as of March 31, 2020 and December 31, 2019, respectively) 1,018,941 989,383
Unbilled Revenues 155,224 181,006
Fuel, Materials, Supplies and REC Inventory 286,498 235,471
Regulatory Assets 785,125 651,112
Prepayments and Other Current Assets 269,457 342,135
Total Current Assets 2,562,670 2,414,539
Property, Plant and Equipment, Net 28,041,356 27,585,470
Deferred Debits and Other Assets:
Regulatory Assets 4,778,321 4,863,639
Goodwill 4,427,266 4,427,266
Investments in Unconsolidated Affiliates 876,328 871,633
Marketable Securities 418,715 449,130
Other Long-Term Assets 544,330 512,238
Total Deferred Debits and Other Assets 11,044,960 11,123,906
Total Assets $ 41,648,986 $ 41,123,915
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable $ 661,420 $ 889,084
Long-Term Debt – Current Portion 532,440 327,411
Rate Reduction Bonds – Current Portion 43,210 43,210
Accounts Payable 914,333 1,147,872
Renewable Portfolio Standards Compliance Obligations 192,660 160,149
Regulatory Liabilities 439,859 361,152
Other Current Liabilities 611,706 676,685
Total Current Liabilities 3,395,628 3,605,563
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 3,816,988 3,755,777
Regulatory Liabilities 3,668,158 3,658,042
Derivative Liabilities 342,990 338,710
Asset Retirement Obligations 489,519 488,511
Accrued Pension, SERP and PBOP 1,331,884 1,370,245
Other Long-Term Liabilities 821,195 810,553
Total Deferred Credits and Other Liabilities 10,470,734 10,421,838
Long-Term Debt 13,898,581 13,770,828
Rate Reduction Bonds 518,517 540,122
Noncontrolling Interest – Preferred Stock of Subsidiaries 155,570 155,570
Common Shareholders' Equity:
Common Shares 1,759,092 1,729,292
Capital Surplus, Paid In 7,479,689 7,087,768
Retained Earnings 4,322,825 4,177,048
Accumulated Other Comprehensive Loss (63,111 ) (65,059 )
Treasury Stock (288,539 ) (299,055 )
Common Shareholders' Equity 13,209,956 12,629,994
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 41,648,986 $ 41,123,915

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information) 2020 2019
Operating Revenues $ 2,373,726 $ 2,415,792
Operating Expenses:
Purchased Power, Fuel and Transmission 876,570 974,882
Operations and Maintenance 342,062 335,597
Depreciation 236,211 214,948
Amortization 49,776 70,961
Energy Efficiency Programs 148,393 140,116
Taxes Other Than Income Taxes 181,594 184,588
Total Operating Expenses 1,834,606 1,921,092
Operating Income 539,120 494,700
Interest Expense 134,715 131,734
Other Income, Net 24,104 30,985
Income Before Income Tax Expense 428,509 393,951
Income Tax Expense 91,876 83,393
Net Income 336,633 310,558
Net Income Attributable to Noncontrolling Interests 1,880 1,880
Net Income Attributable to Common Shareholders $ 334,753 $ 308,678
Basic and Diluted Earnings Per Common Share $ 1.01 $ 0.97
Weighted Average Common Shares Outstanding:
Basic 331,102,237 317,624,593
Diluted 332,937,153 318,316,082

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Net Income $ 336,633 $ 310,558
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments 229 316
Changes in Unrealized Gains on Marketable Securities 160 655
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 1,559 1,225
Other Comprehensive Income, Net of Tax 1,948 2,196
Comprehensive Income Attributable to Noncontrolling Interests (1,880 ) (1,880 )
Comprehensive Income Attributable to Common Shareholders $ 336,701 $ 310,874

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)
Capital<br><br>Surplus,<br><br>Paid In Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information) Amount
Balance as of January 1, 2020 $ 1,729,292 $ 7,087,768 $ 4,177,048 $ (65,059 ) $ (299,055 ) $ 12,629,994
Net Income 336,633 336,633
Dividends on Common Shares - 0.5675 Per Share (187,462 ) (187,462 )
Dividends on Preferred Stock (1,880 ) (1,880 )
Issuance of Common Shares - 5 par value 29,800 402,300 432,100
Long-Term Incentive Plan Activity (15,295 ) (15,295 )
Issuance of Treasury Shares 17,230 10,516 27,746
Capital Stock Expense (12,314 ) (12,314 )
Adoption of New Accounting Standard (See Note 1B) (1,514 ) (1,514 )
Other Comprehensive Income 1,948 1,948
Balance as of March 31, 2020 $ 1,759,092 $ 7,479,689 $ 4,322,825 $ (63,111 ) $ (288,539 ) $ 13,209,956

All values are in US Dollars.
Capital<br><br>Surplus,<br><br>Paid In Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information) Amount
Balance as of January 1, 2019 $ 1,669,392 $ 6,241,222 $ 3,953,974 $ (60,000 ) $ (317,771 ) $ 11,486,817
Net Income 310,558 310,558
Dividends on Common Shares - 0.535 Per Share (169,757 ) (169,757 )
Dividends on Preferred Stock (1,880 ) (1,880 )
Long-Term Incentive Plan Activity (16,609 ) (16,609 )
Issuance of Treasury Shares 17,476 8,633 26,109
Other Comprehensive Income 2,196 2,196
Balance as of March 31, 2019 $ 1,669,392 $ 6,242,089 $ 4,092,895 $ (57,804 ) $ (309,138 ) $ 11,637,434

All values are in US Dollars.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Activities:
Net Income $ 336,633 $ 310,558
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 236,211 214,948
Deferred Income Taxes 44,201 18,085
Uncollectible Expense 11,353 18,565
Pension, SERP and PBOP Expense, Net 1,953 8,428
Pension and PBOP Contributions (723 ) (4,700 )
Regulatory Underrecoveries, Net (22,288 ) (19,232 )
Amortization 49,776 70,961
Other (33,317 ) (37,310 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (55,290 ) (155,823 )
Fuel, Materials, Supplies and REC Inventory (51,027 ) (39,063 )
Taxes Receivable/Accrued, Net 92,140 126,381
Accounts Payable (127,366 ) (60,121 )
Other Current Assets and Liabilities, Net (61,950 ) (70,242 )
Net Cash Flows Provided by Operating Activities 420,306 381,435
Investing Activities:
Investments in Property, Plant and Equipment (725,520 ) (628,129 )
Proceeds from Sales of Marketable Securities 58,627 234,497
Purchases of Marketable Securities (50,723 ) (237,794 )
Investments in Unconsolidated Affiliates, Net (6,113 ) (249,138 )
Other Investing Activities 6,119 4,893
Net Cash Flows Used in Investing Activities (717,610 ) (875,671 )
Financing Activities:
Issuance of Common Shares, Net of Issuance Costs 419,786 —
Cash Dividends on Common Shares (181,608 ) (169,757 )
Cash Dividends on Preferred Stock (1,880 ) (1,880 )
(Decrease)/Increase in Notes Payable (408,950 ) 829,430
Repayment of Rate Reduction Bonds (21,605 ) (30,727 )
Issuance of Long-Term Debt 750,000 —
Retirement of Long-Term Debt (220,253 ) (250,215 )
Other Financing Activities (21,560 ) 16,433
Net Cash Flows Provided by Financing Activities 313,930 393,284
Net Increase/(Decrease) in Cash and Restricted Cash 16,626 (100,952 )
Cash and Restricted Cash - Beginning of Period 117,063 209,324
Cash and Restricted Cash - End of Period $ 133,689 $ 108,372

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars) As of March 31, 2020 As of December 31, 2019
ASSETS
Current Assets:
Cash $ 3,785 $ —
Receivables, Net (net of allowance for uncollectible accounts of $130,876 and $97,348 as of March 31, 2020 and December 31, 2019, respectively) 389,102 400,927
Accounts Receivable from Affiliated Companies 33,701 24,577
Unbilled Revenues 49,982 56,465
Materials and Supplies 49,962 50,700
Regulatory Assets 290,630 178,607
Prepayments and Other Current Assets 69,767 73,184
Total Current Assets 886,929 784,460
Property, Plant and Equipment, Net 9,760,890 9,625,765
Deferred Debits and Other Assets:
Regulatory Assets 1,529,003 1,557,261
Other Long-Term Assets 250,243 217,705
Total Deferred Debits and Other Assets 1,779,246 1,774,966
Total Assets $ 12,427,065 $ 12,185,191
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent $ 219,000 $ 63,800
Accounts Payable 331,491 374,698
Accounts Payable to Affiliated Companies 88,553 97,793
Obligations to Third Party Suppliers 50,335 56,952
Regulatory Liabilities 119,283 82,763
Derivative Liabilities 69,631 67,804
Other Current Liabilities 152,138 132,339
Total Current Liabilities 1,030,431 876,149
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 1,270,025 1,244,551
Regulatory Liabilities 1,179,663 1,164,991
Derivative Liabilities 342,701 338,594
Accrued Pension, SERP and PBOP 385,451 391,159
Other Long-Term Liabilities 149,693 147,586
Total Deferred Credits and Other Liabilities 3,327,533 3,286,881
Long-Term Debt 3,518,129 3,518,136
Preferred Stock Not Subject to Mandatory Redemption 116,200 116,200
Common Stockholder's Equity:
Common Stock 60,352 60,352
Capital Surplus, Paid In 2,535,765 2,535,765
Retained Earnings 1,838,340 1,791,392
Accumulated Other Comprehensive Income 315 316
Common Stockholder's Equity 4,434,772 4,387,825
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 12,427,065 $ 12,185,191

The accompanying notes are an integral part of these unaudited condensed financial statements.

5

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Revenues $ 899,703 $ 849,246
Operating Expenses:
Purchased Power and Transmission 374,717 319,833
Operations and Maintenance 135,597 130,637
Depreciation 78,435 73,289
Amortization of Regulatory Assets, Net 6,548 35,671
Energy Efficiency Programs 35,479 25,988
Taxes Other Than Income Taxes 82,987 92,000
Total Operating Expenses 713,763 677,418
Operating Income 185,940 171,828
Interest Expense 37,883 35,781
Other Income, Net 1,898 3,880
Income Before Income Tax Expense 149,955 139,927
Income Tax Expense 31,217 29,456
Net Income $ 118,738 $ 110,471

The accompanying notes are an integral part of these unaudited condensed financial statements.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Net Income $ 118,738 $ 110,471
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments (7 ) (6 )
Changes in Unrealized Gains on Marketable Securities 6 23
Other Comprehensive (Loss)/Income, Net of Tax (1 ) 17
Comprehensive Income $ 118,737 $ 110,488

The accompanying notes are an integral part of these unaudited condensed financial statements.

6

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)

For the Three Months Ended March 31, 2020
Common Stock Capital<br><br>Surplus,<br><br>Paid In Retained<br><br>Earnings Accumulated<br><br>Other<br><br>Comprehensive<br><br>Income Total<br><br>Common<br><br>Stockholder's<br><br>Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2020 6,035,205 $ 60,352 $ 2,535,765 $ 1,791,392 $ 316 $ 4,387,825
Net Income 118,738 118,738
Dividends on Preferred Stock (1,390 ) (1,390 )
Dividends on Common Stock (69,500 ) (69,500 )
Adoption of New Accounting Standard (See Note 1B) (900 ) (900 )
Other Comprehensive Loss (1 ) (1 )
Balance as of March 31, 2020 6,035,205 $ 60,352 $ 2,535,765 $ 1,838,340 $ 315 $ 4,434,772 For the Three Months Ended March 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Common Stock Capital<br><br>Surplus,<br><br>Paid In Retained<br><br>Earnings Accumulated<br><br>Other<br><br>Comprehensive<br><br>Income Total<br><br>Common<br><br>Stockholder's<br><br>Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2019 6,035,205 $ 60,352 $ 2,410,765 $ 1,727,899 $ 301 $ 4,199,317
Net Income 110,471 110,471
Dividends on Preferred Stock (1,390 ) (1,390 )
Dividends on Common Stock (99,000 ) (99,000 )
Other Comprehensive Income 17 17
Balance as of March 31, 2019 6,035,205 $ 60,352 $ 2,410,765 $ 1,737,980 $ 318 $ 4,209,415

The accompanying notes are an integral part of these unaudited condensed financial statements.

7

THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Activities:
Net Income $ 118,738 $ 110,471
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 78,435 73,289
Deferred Income Taxes 19,910 15,188
Uncollectible Expense 3,230 4,116
Pension, SERP, and PBOP Expense, Net 3,315 4,063
Regulatory Underrecoveries, Net (34,198 ) (54,671 )
Amortization of Regulatory Assets, Net 6,548 35,671
Other (27,239 ) (5,848 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (27,969 ) (60,506 )
Taxes Receivable/Accrued, Net 40,505 41,399
Accounts Payable (27,298 ) 75,373
Other Current Assets and Liabilities, Net (21,801 ) (40,274 )
Net Cash Flows Provided by Operating Activities 132,176 198,271
Investing Activities:
Investments in Property, Plant and Equipment (212,374 ) (189,423 )
Other Investing Activities 74 59
Net Cash Flows Used in Investing Activities (212,300 ) (189,364 )
Financing Activities:
Cash Dividends on Common Stock (69,500 ) (99,000 )
Cash Dividends on Preferred Stock (1,390 ) (1,390 )
Retirement of Long-Term Debt — (250,000 )
Increase in Notes Payable to Eversource Parent 155,200 261,600
Other Financing Activities (390 ) (326 )
Net Cash Flows Provided by/(Used in) Financing Activities 83,920 (89,116 )
Net Increase/(Decrease) in Cash and Restricted Cash 3,796 (80,209 )
Cash and Restricted Cash - Beginning of Period 4,971 91,613
Cash and Restricted Cash - End of Period $ 8,767 $ 11,404

The accompanying notes are an integral part of these unaudited condensed financial statements.

8

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars) As of March 31, 2020 As of December 31, 2019
ASSETS
Current Assets:
Cash $ 2,844 $ 52
Receivables, Net (net of allowance for uncollectible accounts of $71,111 and $75,406 as of March 31, 2020 and December 31, 2019, respectively) 375,587 346,785
Accounts Receivable from Affiliated Companies 66,838 29,914
Unbilled Revenues 32,629 37,482
Materials, Supplies and REC Inventory 178,510 124,060
Regulatory Assets 304,007 285,591
Prepayments and Other Current Assets 16,305 31,150
Total Current Assets 976,720 855,034
Property, Plant and Equipment, Net 9,614,555 9,472,770
Deferred Debits and Other Assets:
Regulatory Assets 1,225,314 1,250,029
Prepaid PBOP 172,244 166,058
Other Long-Term Assets 139,304 144,368
Total Deferred Debits and Other Assets 1,536,862 1,560,455
Total Assets $ 12,128,137 $ 11,888,259
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable $ 88,000 $ 10,500
Notes Payable to Eversource Parent 38,400 30,300
Long-Term Debt – Current Portion — 95,000
Accounts Payable 264,148 363,691
Accounts Payable to Affiliated Companies 93,344 96,307
Obligations to Third Party Suppliers 107,341 108,827
Renewable Portfolio Standards Compliance Obligations 179,075 150,429
Regulatory Liabilities 219,872 209,180
Other Current Liabilities 68,463 71,333
Total Current Liabilities 1,058,643 1,135,567
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 1,374,963 1,357,265
Regulatory Liabilities 1,515,732 1,516,585
Accrued Pension and SERP 95,746 108,243
Other Long-Term Liabilities 334,538 320,629
Total Deferred Credits and Other Liabilities 3,320,979 3,302,722
Long-Term Debt 3,642,325 3,247,086
Preferred Stock Not Subject to Mandatory Redemption 43,000 43,000
Common Stockholder's Equity:
Common Stock — —
Capital Surplus, Paid In 1,813,442 1,813,442
Retained Earnings 2,249,526 2,346,287
Accumulated Other Comprehensive Income 222 155
Common Stockholder's Equity 4,063,190 4,159,884
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 12,128,137 $ 11,888,259

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

9

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Revenues $ 733,833 $ 797,612
Operating Expenses:
Purchased Power and Transmission 242,439 330,104
Operations and Maintenance 122,318 112,963
Depreciation 78,345 72,584
Amortization of Regulatory Assets, Net 27,008 22,584
Energy Efficiency Programs 68,667 76,729
Taxes Other Than Income Taxes 48,722 44,822
Total Operating Expenses 587,499 659,786
Operating Income 146,334 137,826
Interest Expense 31,017 27,881
Other Income, Net 12,238 11,086
Income Before Income Tax Expense 127,555 121,031
Income Tax Expense 27,165 27,017
Net Income $ 100,390 $ 94,014

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Net Income $ 100,390 $ 94,014
Other Comprehensive Income, Net of Tax:
Changes in Funded Status of SERP Benefit Plan (43 ) 1
Qualified Cash Flow Hedging Instruments 109 110
Changes in Unrealized Gains on Marketable Securities 1 6
Other Comprehensive Income, Net of Tax 67 117
Comprehensive Income $ 100,457 $ 94,131

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

10

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)

For the Three Months Ended March 31, 2020
Common Stock Capital<br><br>Surplus,<br><br>Paid In Retained<br><br>Earnings Accumulated<br><br>Other<br><br>Comprehensive<br><br>Income Total<br><br>Common<br><br>Stockholder's<br><br>Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2020 200 $ — $ 1,813,442 $ 2,346,287 $ 155 $ 4,159,884
Net Income 100,390 100,390
Dividends on Preferred Stock (490 ) (490 )
Dividends on Common Stock (196,500 ) (196,500 )
Adoption of New Accounting Standard (See Note 1B) (161 ) (161 )
Other Comprehensive Income 67 67
Balance as of March 31, 2020 200 $ — $ 1,813,442 $ 2,249,526 $ 222 $ 4,063,190 For the Three Months Ended March 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Common Stock Capital<br><br>Surplus,<br><br>Paid In Retained<br><br>Earnings Accumulated<br><br>Other<br><br>Comprehensive<br><br>Loss Total<br><br>Common<br><br>Stockholder's<br><br>Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2019 200 $ — $ 1,633,442 $ 2,098,091 $ (1,378 ) $ 3,730,155
Net Income 94,014 94,014
Dividends on Preferred Stock (490 ) (490 )
Dividends on Common Stock (60,600 ) (60,600 )
Capital Contributions from Eversource Parent 20,000 20,000
Other Comprehensive Income 117 117
Balance as of March 31, 2019 200 $ — $ 1,653,442 $ 2,131,015 $ (1,261 ) $ 3,783,196

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

11

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Activities:
Net Income $ 100,390 $ 94,014
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 78,345 72,584
Deferred Income Taxes 9,775 3,722
Uncollectible Expense 3,704 5,953
Pension, SERP and PBOP Income, Net (4,754 ) (4,279 )
Pension and PBOP Contributions — (1,503 )
Regulatory (Under)/Over Recoveries, Net (17,434 ) 4,329
Amortization of Regulatory Assets, Net 27,008 22,584
Other (1,643 ) (8,043 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (64,951 ) (29,220 )
Materials, Supplies and REC Inventory (54,450 ) (46,020 )
Taxes Receivable/Accrued, Net 32,135 29,483
Accounts Payable (53,462 ) (18,109 )
Other Current Assets and Liabilities, Net 7,033 11,466
Net Cash Flows Provided by Operating Activities 61,696 136,961
Investing Activities:
Investments in Property, Plant and Equipment (247,549 ) (208,540 )
Other Investing Activities 21 17
Net Cash Flows Used in Investing Activities (247,528 ) (208,523 )
Financing Activities:
Cash Dividends on Common Stock (196,500 ) (60,600 )
Cash Dividends on Preferred Stock (490 ) (490 )
Issuance of Long-Term Debt 400,000 —
Retirement of Long-Term Debt (95,000 ) —
Capital Contributions from Eversource Parent — 20,000
Increase in Notes Payable to Eversource Parent 8,100 22,300
Increase in Notes Payable 77,500 89,930
Other Financing Activities (4,961 ) 668
Net Cash Flows Provided by Financing Activities 188,649 71,808
Net Increase in Cash and Restricted Cash 2,817 246
Cash and Restricted Cash - Beginning of Period 6,312 14,659
Cash and Restricted Cash - End of Period $ 9,129 $ 14,905

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

12

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (Thousands of Dollars) As of March 31, 2020 As of December 31, 2019
ASSETS
Current Assets:
Cash $ 19 $ 413
Receivables, Net (net of allowance for uncollectible accounts of $11,154 and $10,497 as of March 31, 2020 and December 31, 2019, respectively) 99,792 99,934
Accounts Receivable from Affiliated Companies 10,176 6,763
Unbilled Revenues 42,344 48,146
Materials, Supplies and REC Inventory 28,483 24,957
Regulatory Assets 102,438 84,053
Special Deposits 16,627 32,513
Prepayments and Other Current Assets 6,268 19,431
Total Current Assets 306,147 316,210
Property, Plant and Equipment, Net 3,187,282 3,129,506
Deferred Debits and Other Assets:
Regulatory Assets 843,904 861,672
Other Long-Term Assets 41,564 43,270
Total Deferred Debits and Other Assets 885,468 904,942
Total Assets $ 4,378,897 $ 4,350,658
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent $ 84,700 $ 27,000
Rate Reduction Bonds – Current Portion 43,210 43,210
Accounts Payable 103,551 127,081
Accounts Payable to Affiliated Companies 32,707 37,946
Regulatory Liabilities 69,042 65,766
Accrued Interest 14,323 19,138
Other Current Liabilities 39,636 32,736
Total Current Liabilities 387,169 352,877
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 511,822 506,212
Regulatory Liabilities 411,959 413,381
Accrued Pension, SERP and PBOP 152,649 157,638
Other Long-Term Liabilities 36,022 37,075
Total Deferred Credits and Other Liabilities 1,112,452 1,114,306
Long-Term Debt 951,747 951,620
Rate Reduction Bonds 518,517 540,122
Common Stockholder's Equity:
Common Stock — —
Capital Surplus, Paid In 903,134 903,134
Retained Earnings 507,307 490,306
Accumulated Other Comprehensive Loss (1,429 ) (1,707 )
Common Stockholder's Equity 1,409,012 1,391,733
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization $ 4,378,897 $ 4,350,658

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

13

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Revenues $ 276,368 $ 276,435
Operating Expenses:
Purchased Power and Transmission 94,138 113,531
Operations and Maintenance 47,128 52,630
Depreciation 24,334 22,919
Amortization of Regulatory Assets, Net 20,110 13,667
Energy Efficiency Programs 9,364 6,714
Taxes Other Than Income Taxes 19,701 17,311
Total Operating Expenses 214,775 226,772
Operating Income 61,593 49,663
Interest Expense 14,479 14,367
Other Income, Net 3,190 7,022
Income Before Income Tax Expense 50,304 42,318
Income Tax Expense 10,703 9,537
Net Income $ 39,601 $ 32,781

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Net Income $ 39,601 $ 32,781
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments 269 269
Changes in Unrealized Gains on Marketable Securities 9 38
Other Comprehensive Income, Net of Tax 278 307
Comprehensive Income $ 39,879 $ 33,088

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

14

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY

(Unaudited)

For the Three Months Ended March 31, 2020
Common Stock Capital<br><br>Surplus,<br><br>Paid In Retained<br><br>Earnings Accumulated<br><br>Other<br><br>Comprehensive<br><br>Loss Total<br><br>Common<br><br>Stockholder's<br><br>Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2020 301 $ — $ 903,134 $ 490,306 $ (1,707 ) $ 1,391,733
Net Income 39,601 39,601
Dividends on Common Stock (22,300 ) (22,300 )
Adoption of New Accounting Standard (See Note 1B) (300 ) (300 )
Other Comprehensive Income 278 278
Balance as of March 31, 2020 301 $ — $ 903,134 $ 507,307 $ (1,429 ) $ 1,409,012 For the Three Months Ended March 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Common Stock Capital<br><br>Surplus,<br><br>Paid In Retained<br><br>Earnings Accumulated<br><br>Other<br><br>Comprehensive<br><br>Loss Total<br><br>Common<br><br>Stockholder's<br><br>Equity
(Thousands of Dollars, Except Stock Information) Stock Amount
Balance as of January 1, 2019 301 $ — $ 678,134 $ 627,258 $ (2,851 ) $ 1,302,541
Net Income 32,781 32,781
Dividends on Common Stock (19,000 ) (19,000 )
Other Comprehensive Income 307 307
Balance as of March 31, 2019 301 $ — $ 678,134 $ 641,039 $ (2,544 ) $ 1,316,629

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

15

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended March 31,
(Thousands of Dollars) 2020 2019
Operating Activities:
Net Income $ 39,601 $ 32,781
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation 24,334 22,919
Deferred Income Taxes 4,167 6,541
Uncollectible Expense 666 1,725
Regulatory Underrecoveries, Net (22,977 ) (26,986 )
Amortization of Regulatory Assets, Net 20,110 13,667
Other (3,885 ) (1,621 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net 2,843 1,103
Materials, Supplies and REC Inventory (3,526 ) 144
Taxes Receivable/Accrued, Net 6,110 17,572
Accounts Payable (18,064 ) 11,762
Other Current Assets and Liabilities, Net 9,118 6,472
Net Cash Flows Provided by Operating Activities 58,497 86,079
Investing Activities:
Investments in Property, Plant and Equipment (88,694 ) (64,361 )
Other Investing Activities 126 102
Net Cash Flows Used in Investing Activities (88,568 ) (64,259 )
Financing Activities:
Cash Dividends on Common Stock (22,300 ) (19,000 )
Repayment of Rate Reduction Bonds (21,605 ) (30,727 )
Increase in Notes Payable to Eversource Parent 57,700 4,000
Other Financing Activities (22 ) (20 )
Net Cash Flows Provided by/(Used in) Financing Activities 13,773 (45,747 )
Net Decrease in Cash and Restricted Cash (16,298 ) (23,927 )
Cash and Restricted Cash - Beginning of Period 36,688 52,723
Cash and Restricted Cash - End of Period $ 20,390 $ 28,796

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

16

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

COMBINED NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)

Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout the combined notes to the unaudited condensed financial statements.

1.    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 2019 Form 10-K, which was filed with the SEC on February 27, 2020. 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 March 31, 2020 and December 31, 2019, and the results of operations, comprehensive income, common shareholders' equity, and cash flows for the three months ended March 31, 2020 and 2019. The results of operations, comprehensive income, and cash flows for the three months ended March 31, 2020 and 2019 are not necessarily indicative of the results expected for a full year.

Eversource consolidates the operations of CYAPC and YAEC, both of which are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. 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 holds several equity ownership interests that are not consolidated and are accounted for under the equity method.

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.

In March 2020, the World Health Organization declared the outbreak of the 2019 novel coronavirus (COVID-19) a pandemic and President Trump declared a national emergency affecting the entire United States where each state qualifies as being part of a national disaster. The spread of COVID-19 has adversely affected workforces, the overall economy and caused significant volatility in the financial markets. To date, Eversource has not experienced significant operational or financial impacts directly related to the pandemic. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, management will continue to closely monitor how COVID-19 related developments affect Eversource. As of the date of our filing and based on information available, management is unable to predict the impacts that the COVID-19 pandemic will have on future operations, financial position, results of operations, and cash flows. The extent of the impact in the future will vary and depend in large part on the duration, scope and severity of a national and global economic slowdown, risk of inflation, governmental and regulatory actions, the maintenance of a strong regional and national healthcare system, and the continued spread of the virus, which is mitigated through social distancing measures.

17

Our customer receivable balances and uncollectible accounts have not been materially impacted by COVID-19. We believe that we will be able to develop a successful structure with our respective state regulatory commissions to recover our costs associated with COVID-19, while balancing the impact on our customers’ bills. See Note 1C, "Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts," for further discussion of our evaluation of the allowance for doubtful accounts as of March 31, 2020 in light of the COVID-19 pandemic.

An extended economic slowdown could result in lower demand for electricity, natural gas and/or water by our commercial and industrial customers. However, fluctuations in retail sales volumes for CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and our Connecticut water distribution business are not expected to materially impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms. The revenue decoupling mechanisms mitigate the impact of lower demand and resulting lost sales revenues by allowing for a true-up to occur as part of each company’s annual decoupling filing. These revenue decoupling mechanisms qualify as alternative revenue programs in accordance with accounting guidance for rate-regulated operations.

As of March 31, 2020, we did not have indicators of triggering events for impairments to our goodwill, long-lived assets, available-for-sale debt securities, or equity method investment carrying values.

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

The Eversource and PSNH 2019 statements of cash flows and the 2019 segment footnote were revised to correct an error in the presentation of non-cash capital additions.  The impact of this revision on the statement of cash flows is a decrease to operating cash inflows in Accounts Payable of $46.6 million and a corresponding decrease to investing cash outflows in Investments in Property, Plant and Equipment for the quarter ended March 31, 2019.  This revision is not deemed material, individually or in the aggregate, to the previously issued financial statements.

B.    Accounting Standards

Accounting Standards Issued but Not Yet Effective: In December 2019, the FASB issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the general principles of current income tax guidance in ASC 740 and simplifies and improves consistency in application of that income tax guidance through clarifications of and amendments to ASC 740. The guidance is effective in the first quarter of 2021. The ASU is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric and PSNH.

Accounting Standards Recently Adopted: On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides a model for recognizing credit losses on financial instruments based on an estimate of current expected losses, requiring immediate recognition of credit losses expected over the life of a financial instrument. The Company determined the impacts of this standard on the allowance for credit losses on its financial instruments, primarily accounts receivable.  As of January 1, 2020, the Company recorded increases to the allowance for uncollectible accounts for late fees and other receivable amounts of $1.6 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively. The impact to retained earnings, net of tax, was $1.5 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively.

The Company also adjusted the allowance for uncollectible amounts of hardship receivables and other low-income assistance programs, which are ultimately collectible in rates at specified points in time under approved regulatory mechanisms. The impact on the allowance, which was offset in other long-term assets on the balance sheets, was an increase of $22.2 million and $21.3 million at Eversource and CL&P, respectively, and a decrease of $1.5 million at NSTAR Electric. See Note 1C, “Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts,” for further information.

The Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment as of January 1, 2020. The ASU simplified the accounting for goodwill impairment by removing a complex step in the goodwill impairment test. Under the guidance, goodwill impairment is measured as the amount by which its carrying value exceeds its fair value. The ASU is not expected to have an impact on the financial statements of Eversource.

On January 1, 2020, the Company adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligned the requirements for capitalizing costs incurred to implement a cloud computing arrangement with existing internal-use software guidance. The prospective implementation of this standard did not have any impact on the financial statements of Eversource, CL&P, NSTAR Electric or PSNH for the period ending March 31, 2020.

On January 1, 2020, the Company prospectively adopted ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modified fair value disclosure requirements. The standard includes new disclosure requirements for Level 3 unobservable inputs and eliminated the requirement to disclose certain information relating to transfers between levels. The modified disclosures are included in Note 1D, “Summary of Significant Accounting Policies - Fair Value Measurements,” and Note 4, “Derivative Instruments.”

18

C.    Allowance for Uncollectible Accounts

Receivables, Net on the balance sheets primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs and property rentals. Receivables, Net also includes customer receivables for the purchase of electricity from a competitive third party supplier, the current portion of customer energy efficiency loans, property damage receivables and other miscellaneous receivables. There is no material concentration of receivables. Receivables are recorded at amortized cost, net of a credit loss provision (or allowance for uncollectible accounts).

Receivables are presented net of expected credit losses at estimated net realizable value by maintaining an allowance for uncollectible accounts. Effective January 1, 2020, the current expected credit loss (CECL) model was applied to receivables for purposes of calculating the allowance for uncollectible accounts. This model is based on expected losses and results in the recognition of estimated expected credit losses, including uncollectible amounts for both billed and unbilled revenues, over the life of the receivable at the time a receivable is recorded.

The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category.  Factors in determining credit loss include historical collection, write-off experience, and management's assessment of collectibility from customers, including current conditions, reasonable forecasts, and expectations of future collectibility and collection efforts. Management continuously assesses the collectibility of receivables and adjusts estimates based on actual experience and future expectations based on economic indicators.  Management also monitors the aging analysis of receivables to determine if there are changes in the collections of accounts receivable. Receivable balances are written off against the allowance for uncollectible accounts when the customer accounts are no longer in service and these balances are deemed to be uncollectible.

As of March 31, 2020, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the economic downturn to date. This evaluation included an analysis of collection and customer payment trends in 2020, economic conditions, flexible payment plans and financial hardship arrearage management programs being offered to customers, and the impacts of federal governmental pandemic relief programs for our customers and the expansion of unemployment benefits initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment. Based upon the evaluation performed, management concluded that the reserve balance as of March 31, 2020 adequately reflected the collection risk and net realizable value for Eversource’s receivables. Management will continue to evaluate the adequacy of the uncollectible allowance in future reporting periods based on an ongoing assessment of accounts receivable collections, delinquency statistics, and analysis of aging-based quantitative assessments.

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. Hardship customers are protected from shut-off in certain circumstances, and historical collection experience has reflected a higher default risk as compared to the rest of the receivable population. As a result of the adoption of ASU 2016-13, management aligned the allowance for uncollectible hardship accounts across all regulatory jurisdictions, using a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. Implementation impacts of the accounting standard on the allowance for uncollectible hardship accounts are reflected in the rollforward of the uncollectible allowance in the table below. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.

The total allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The activity in the allowance for uncollectible accounts by portfolio segment is as follows:

For the Three Months Ended March 31, 2020
Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Hardship Accounts Retail (Non-Hardship),<br><br>Wholesale, and Other Receivables Total Allowance Hardship Accounts Retail (Non-Hardship),<br><br>Wholesale and Other Receivables Total Allowance Hardship Accounts Retail (Non-Hardship),<br><br>Wholesale, and Other Receivables Total Allowance Total Allowance
Beginning Balance $ 143.3 $ 81.5 $ 224.8 $ 80.1 $ 17.2 $ 97.3 $ 43.9 $ 31.5 $ 75.4 $ 10.5
ASU 2016-13 Implementation Impact on January 1, 2020 21.6 2.2 23.8 21.3 0.9 22.2 (1.6 ) 0.3 (1.3 ) 0.3
Uncollectible Expense ^(1)^ — 11.4 11.4 — 3.2 3.2 — 3.7 3.7 0.7
Uncollectible Costs Deferred ^(2)^ 11.8 8.5 20.3 12.9 1.8 14.7 (3.4 ) 3.4 — 1.3
Write-Offs (4.7 ) (16.8 ) (21.5 ) (3.8 ) (3.5 ) (7.3 ) (0.4 ) (8.0 ) (8.4 ) (1.7 )
Recoveries Collected 0.2 3.1 3.3 0.2 0.6 0.8 — 1.7 1.7 0.1
Ending Balance $ 172.2 $ 89.9 $ 262.1 $ 110.7 $ 20.2 $ 130.9 $ 38.5 $ 32.6 $ 71.1 $ 11.2

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^(1)^Uncollectible expense associated with customer and other accounts receivable is included in Operations and Maintenance expense on the statements of income. For the three months ended March 31, 2019, uncollectible expense included in Operations and Maintenance Expense was $18.6 million, $4.1 million, $6.0 million and $1.7 million for Eversource, CL&P, NSTAR Electric and PSNH, respectively.

^(2)^The current period provision for expected credit losses for hardship accounts and other customer receivables that are ultimately recovered in rates is deferred as a regulatory cost on the balance sheets.

D.    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, long-lived assets 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. 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 10, "Fair Value of Financial Instruments," to the financial statements.

E.    Other Income, Net

The components of Other Income, Net on the statements of income were as follows: For the Three Months Ended
March 31, 2020 March 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Pension, SERP and PBOP Non-Service<br><br>Income/(Expense) Components $ 12.7 $ 1.1 $ 7.9 $ 1.9 $ 7.4 $ (0.6 ) $ 7.0 $ 0.5
AFUDC Equity 10.6 3.9 5.0 1.5 10.9 2.6 4.0 0.2
Equity in Earnings of Unconsolidated Affiliates 4.0 — 0.1 — 5.0 — 0.2 —
Investment Income/(Loss) (4.3 ) (3.4 ) (1.3 ) (0.5 ) 1.2 1.7 (0.3 ) 0.4
Interest Income 0.7 0.3 0.1 0.3 6.5 0.4 0.2 5.9
Other 0.4 — 0.4 — — (0.2 ) — —
Total Other Income, Net $ 24.1 $ 1.9 $ 12.2 $ 3.2 $ 31.0 $ 3.9 $ 11.1 $ 7.0

F.    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
(Millions of Dollars) March 31, 2020 March 31, 2019
Eversource $ 43.1 $ 45.0
CL&P 35.5 36.2

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Separate from above were amounts recorded as Taxes Other Than Income Taxes at CL&P related to the remittance to the State of Connecticut of energy efficiency funds collected from customers of $10.7 million for the three months ended March 31, 2019. 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.

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.

G.    Supplemental Cash Flow Information

Non-cash investing activities include plant additions included in Accounts Payable as follows:

(Millions of Dollars) As of March 31, 2020 As of March 31, 2019
Eversource $ 273.7 $ 336.3
CL&P 85.0 121.9
NSTAR Electric 70.2 83.2
PSNH 37.9 30.4
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 March 31, 2020 As of December 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Cash as reported on the Balance Sheets $ 47.4 $ 3.8 $ 2.8 $ — $ 15.4 $ — $ 0.1 $ 0.4
Restricted cash included in:
Special Deposits 39.0 4.7 6.2 16.6 52.5 4.6 6.2 32.5
Marketable Securities 44.1 0.3 0.1 0.6 46.0 0.4 — 0.6
Other Long-Term Assets 3.2 — — 3.2 3.2 — — 3.2
Cash and Restricted Cash reported on the<br><br>Statements of Cash Flows $ 133.7 $ 8.8 $ 9.1 $ 20.4 $ 117.1 $ 5.0 $ 6.3 $ 36.7

Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, and CYAPC and YAEC cash balances. Special Deposits are included in Current Assets on the balance sheets. 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 obligations.

H.     Pending Acquisition of Assets of Columbia Gas of Massachusetts

On February 26, 2020, Eversource and NiSource Inc. entered into an asset purchase agreement (the Agreement) pursuant to which Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in Massachusetts, which is doing business as Columbia Gas of Massachusetts (CMA). The purchase price of $1.1 billion includes a target working capital amount that is subject to adjustment to reflect actual working capital as of the closing date.

The liabilities to be assumed by Eversource under the Agreement specifically exclude any liabilities (past or future) arising out of, or related to, the fires and explosions that occurred on September 13, 2018 in Lawrence, Andover and North Andover, Massachusetts related to the delivery of natural gas by CMA, including certain subsequent events, all as described and in the DPU's Order on Scope dated December 23, 2019 (D.P.U. 19-141) (the Greater Lawrence Incident or GLI). The liabilities to be assumed also exclude any further emergency events prior to the closing of the acquisition related to the restoration and reconstruction with respect to the GLI, including any losses arising out of, or related to, any litigation, demand, cause of action, claim, suit, investigation, proceeding, indemnification agreements or rights. Eversource is not assuming any of CMA's or NiSource Inc.'s debt.

The transaction requires approval from the DPU, the Maine Public Utilities Commission, the FERC, and the Federal Communications Commission, and it is subject to review under the Hart-Scott-Rodino Act, for which the relevant review period has expired. The resulting rate plan also requires DPU approval. Eversource expects to finance the asset acquisition through a combination of debt and equity issuances in a ratio that is consistent with our current consolidated capital structure. The transaction is expected to close by the end of the third quarter of 2020.

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2.    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, plus a return on investment.

The application of accounting guidance for rate-regulated enterprises results in recording regulatory assets and liabilities. Regulatory assets represent the deferral of incurred costs that are probable of future recovery in customer rates. Regulatory assets are amortized as the incurred costs are recovered through customer rates. Regulatory liabilities represent either revenues received from customers to fund expected costs that have not yet been incurred or probable future refunds to customers.

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 March 31, 2020 As of December 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR<br><br>Electric PSNH Eversource CL&P NSTAR<br><br>Electric PSNH
Benefit Costs $ 2,334.3 $ 528.3 $ 616.3 $ 213.9 $ 2,382.9 $ 539.0 $ 629.8 $ 218.2
Income Taxes, Net 727.2 458.9 108.5 12.8 725.8 458.8 108.0 12.8
Securitized Stranded Costs 554.5 — — 554.5 565.3 — — 565.3
Storm Restoration Costs, Net 497.6 251.6 183.0 63.0 540.6 274.6 200.6 65.4
Regulatory Tracker Mechanisms 551.5 191.0 227.4 84.6 411.5 78.3 207.1 65.8
Derivative Liabilities 335.2 333.8 — — 334.5 329.2 — —
Goodwill-related 327.3 — 281.0 — 331.5 — 284.6 —
Asset Retirement Obligations 99.3 31.2 51.5 3.7 97.2 30.8 50.3 3.6
Other Regulatory Assets 136.5 24.8 61.6 13.8 125.4 25.2 55.2 14.7
Total Regulatory Assets 5,563.4 1,819.6 1,529.3 946.3 5,514.7 1,735.9 1,535.6 945.8
Less:  Current Portion 785.1 290.6 304.0 102.4 651.1 178.6 285.6 84.1
Total Long-Term Regulatory Assets $ 4,778.3 $ 1,529.0 $ 1,225.3 $ 843.9 $ 4,863.6 $ 1,557.3 $ 1,250.0 $ 861.7

Regulatory Costs in Long-Term Assets:  Eversource's regulated companies had $171.3 million (including $82.6 million for CL&P, $50.3 million for NSTAR Electric and $16.9 million for PSNH) and $146.0 million (including $51.8 million for CL&P, $55.7 million for NSTAR Electric and $18.0 million for PSNH) of additional regulatory costs as of March 31, 2020 and December 31, 2019, 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 March 31, 2020 As of December 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR<br><br>Electric PSNH Eversource CL&P NSTAR<br><br>Electric PSNH
EDIT due to Tax Cuts and Jobs Act $ 2,831.2 $ 1,019.8 $ 1,063.9 $ 391.4 $ 2,844.6 $ 1,022.8 $ 1,071.2 $ 392.8
Cost of Removal 579.3 77.4 337.2 14.8 559.8 64.6 330.6 16.3
Benefit Costs 80.1 — 68.6 — 84.5 — 72.2 —
Regulatory Tracker Mechanisms 412.5 121.7 189.8 64.1 325.1 94.8 165.6 57.0
AFUDC - Transmission 74.4 45.7 28.7 — 73.2 46.0 27.2 —
Other Regulatory Liabilities 130.6 34.4 47.4 10.7 132.0 19.6 59.0 13.1
Total Regulatory Liabilities 4,108.1 1,299.0 1,735.6 481.0 4,019.2 1,247.8 1,725.8 479.2
Less:  Current Portion 439.9 119.3 219.9 69.0 361.2 82.8 209.2 65.8
Total Long-Term Regulatory Liabilities $ 3,668.2 $ 1,179.7 $ 1,515.7 $ 412.0 $ 3,658.0 $ 1,165.0 $ 1,516.6 $ 413.4

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3.    PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

The following tables summarize property, plant and equipment by asset category:

Eversource As of March 31, 2020 As of December 31, 2019
(Millions of Dollars)
Distribution - Electric $ 16,117.4 $ 15,880.0
Distribution - Natural Gas 3,984.2 3,931.1
Transmission - Electric 11,059.4 10,958.4
Distribution - Water 1,730.2 1,726.5
Solar 200.5 200.2
Utility 33,091.7 32,696.2
Other ^(1)^ 1,073.2 1,025.6
Property, Plant and Equipment, Gross 34,164.9 33,721.8
Less:  Accumulated Depreciation
Utility (7,572.4 ) (7,483.5 )
Other (408.0 ) (387.4 )
Total Accumulated Depreciation (7,980.4 ) (7,870.9 )
Property, Plant and Equipment, Net 26,184.5 25,850.9
Construction Work in Progress 1,856.9 1,734.6
Total Property, Plant and Equipment, Net $ 28,041.4 $ 27,585.5
As of March 31, 2020 As of December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Millions of Dollars) CL&P NSTAR<br><br>Electric PSNH CL&P NSTAR<br><br>Electric PSNH
Distribution - Electric $ 6,607.8 $ 7,250.8 $ 2,299.1 $ 6,485.5 $ 7,163.7 $ 2,271.1
Transmission - Electric 5,094.1 4,444.7 1,515.8 5,043.0 4,411.9 1,498.7
Solar — 200.5 — — 200.2 —
Property, Plant and Equipment, Gross 11,701.9 11,896.0 3,814.9 11,528.5 11,775.8 3,769.8
Less:  Accumulated Depreciation (2,413.6 ) (2,925.2 ) (810.1 ) (2,385.7 ) (2,895.3 ) (799.9 )
Property, Plant and Equipment, Net 9,288.3 8,970.8 3,004.8 9,142.8 8,880.5 2,969.9
Construction Work in Progress 472.6 643.8 182.5 483.0 592.3 159.6
Total Property, Plant and Equipment, Net $ 9,760.9 $ 9,614.6 $ 3,187.3 $ 9,625.8 $ 9,472.8 $ 3,129.5
^(1)^ These assets are primarily comprised of computer software, hardware and equipment at Eversource Service and buildings at The Rocky River Realty Company.
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4.    DERIVATIVE INSTRUMENTS

The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers.  The costs associated with supplying energy to customers are recoverable from customers in future rates.  These regulated companies manage the risks associated with the price volatility of energy and energy-related products through the use of derivative and non-derivative contracts.

Many of the derivative contracts meet the definition of, and are designated as, normal and qualify for accrual accounting under the applicable accounting guidance.  The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses on the statements of income, as applicable, as electricity or natural gas is delivered.

Derivative contracts that are not designated as normal are recorded at fair value as current or long-term Derivative Assets or Derivative Liabilities on the balance sheets.  For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract settlement amounts are recovered from, or refunded to, customers in their respective energy supply rates.

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The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative Liabilities, with current and long-term portions, on the balance sheets.  The following table presents the gross fair values of contracts, categorized by risk type, and the net amounts recorded as current or long-term derivative assets or liabilities:

As of March 31, 2020 As of December 31, 2019
(Millions of Dollars) Fair Value Hierarchy Commodity Supply and Price Risk<br><br>Management Netting ^(1)^ Net Amount<br><br>Recorded as a Derivative Commodity Supply and Price Risk <br>Management Netting ^(1)^ Net Amount<br><br>Recorded as<br><br>a Derivative
Current Derivative Assets:
CL&P Level 3 $ 12.8 $ (0.4 ) $ 12.4 $ 12.2 $ (0.4 ) $ 11.8
Long-Term Derivative Assets:
CL&P Level 3 68.2 (2.1 ) 66.1 67.5 (2.1 ) 65.4
Current Derivative Liabilities:
CL&P Level 3 (69.6 ) — (69.6 ) (67.8 ) — (67.8 )
Other Level 2 (1.4 ) 0.3 (1.1 ) (5.2 ) — (5.2 )
Long-Term Derivative Liabilities:
CL&P Level 3 (342.7 ) — (342.7 ) (338.6 ) — (338.6 )
Other Level 2 (0.3 ) — (0.3 ) (0.1 ) — (0.1 )
^(1)^ Amounts represent derivative assets and liabilities that Eversource elected to record net on the balance sheets.  These amounts are subject to master netting agreements or similar agreements for which the right of offset exists.
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For further information on the fair value of derivative contracts, see Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," to the financial statements.

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management:  As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities.  CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI.  The combined capacities of these contracts as of both March 31, 2020 and December 31, 2019, were

676

MW. The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets. In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.

As of March 31, 2020 and December 31, 2019, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of 3.5 million and 9.6 million MMBtu of natural gas, respectively.

For the three months ended March 31, 2020 and 2019, there were losses of $18.0 million and $5.2 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts.

Fair Value Measurements of Derivative Instruments

Derivative contracts classified as Level 2 in the fair value hierarchy relate to the financial contracts for natural gas futures.  Prices are obtained from broker quotes and are based on actual market activity.  The contracts are valued using NYMEX natural gas prices.  Valuations of these contracts also incorporate discount rates using the yield curve approach.

The fair value of derivative contracts classified as Level 3 utilizes significant unobservable inputs.  The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions related to exit price.  Significant observable inputs for valuations of these contracts include energy and energy-related product prices in future years for which quoted prices in an active market exist.  Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy and energy-related products, and accounting requirements.  The future capacity prices for periods that are not quoted in an active market or established at auction are based on available market data and are escalated based on estimates of inflation in order to address the full term of the contract.

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled payments and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty's credit rating for assets and the Company's credit rating for liabilities.  Valuations incorporate estimates of premiums or discounts that would be required by a market participant to arrive at an exit price, using historical market transactions adjusted for the terms of the contract.

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The following is a summary of Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts:

As of March 31, 2020 As of December 31, 2019
CL&P Range Weighted Average ^(1)^ Period Covered Range Period Covered
Capacity Prices $ 4.30 — $5.82 $ 4.81 per kW-Month 2024 - 2026 $ 3.01 — $7.34 per kW-Month 2023 - 2026
Forward Reserve Prices 0.80 — 1.90 1.35 per kW-Month 2020 - 2024 0.80 — 1.90 per kW-Month 2020 - 2024
^(1)^ Unobservable inputs were weighted by the relative future capacity and forward reserve prices and contractual MWs over the periods covered.
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Exit price premiums of 1.5 percent through 13 percent, or a weighted average of 11.9 percent, are also applied to these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts. The risk premium was weighted by the relative fair value of the net derivative instruments.

Significant increases or decreases in future capacity or forward reserve prices in isolation would decrease or increase, respectively, the fair value of the derivative liability.  Any increases in risk premiums would increase the fair value of the derivative liability.  Changes in these fair values are recorded as a regulatory asset or liability and do not impact net income.

Valuations using significant unobservable inputs:  The following table presents changes in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis.  The derivative assets and liabilities are presented on a net basis. CL&P For the Three Months Ended March 31,
(Millions of Dollars) 2020 2019
Derivatives, Net:
Fair Value as of Beginning of Period $ (329.2 ) $ (356.5 )
Net Realized/Unrealized Losses Included<br><br>in Regulatory Assets (16.4 ) (5.3 )
Settlements 11.8 8.7
Fair Value as of End of Period $ (333.8 ) $ (353.1 )

5.    MARKETABLE SECURITIES

Eversource holds marketable securities that are primarily used to fund certain non-qualified executive benefits. The trusts that hold marketable securities are not subject to regulatory oversight by state or federal agencies.  CYAPC and YAEC maintain legally restricted trusts, each of which holds marketable securities, to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Equity Securities: Unrealized gains and losses on equity securities held in Eversource's non-qualified executive benefit trust are recorded in Other Income, Net on the statements of income. The fair value of these equity securities as of March 31, 2020 and December 31, 2019 was $34.8 million and $45.7 million, respectively.  For the three months ended March 31, 2020 and 2019, there were unrealized losses of $9.1 million and unrealized gains of $1.0 million, respectively, recorded in Other Income, Net related to these equity securities.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of $162.0 million and $182.8 million as of March 31, 2020 and December 31, 2019, respectively.  Unrealized gains and losses for these spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.

Available-for-Sale Debt Securities: The following is a summary of the available-for-sale debt securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.

As of March 31, 2020 As of December 31, 2019
Eversource<br><br>(Millions of Dollars) Amortized Cost Pre-Tax<br><br>Unrealized Gains Pre-Tax<br><br>Unrealized<br><br>Losses Fair Value Amortized Cost Pre-Tax<br><br>Unrealized Gains Pre-Tax<br><br>Unrealized<br><br>Losses Fair Value
Debt Securities $ 224.2 $ 10.9 $ (0.6 ) $ 234.5 $ 228.4 $ 5.8 $ (0.1 ) $ 234.1

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of $198.7 million and $198.1 million as of March 31, 2020 and December 31, 2019, respectively.

Unrealized gains and losses on available-for-sale debt securities held in Eversource's non-qualified benefit trust are recorded in Accumulated Other Comprehensive Income, excluding amounts related to credit losses or losses on securities intended to be sold, which are recorded in Other Income, Net. There have been no significant unrealized losses and no credit losses for the three months ended March 31, 2020 and 2019, and no allowance for credit losses as of March 31, 2020. Factors considered in determining whether a credit loss exists include adverse conditions specifically affecting the issuer, the payment history, ratings and rating changes of the security, and the severity of the impairment.  For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated. Debt securities included in Eversource's non-qualified benefit trust portfolio are investment-grade bonds with a lower default risk based on their credit quality.

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As of March 31, 2020, the contractual maturities of available-for-sale debt securities were as follows:

Eversource<br><br>(Millions of Dollars) Amortized Cost Fair Value
Less than one year^(1)^ $ 56.5 $ 56.6
One to five years 40.1 41.7
Six to ten years 38.6 41.4
Greater than ten years 89.0 94.8
Total Debt Securities $ 224.2 $ 234.5
^(1)^ Amounts in the Less than one year category include securities in the CYAPC and YAEC spent nuclear fuel trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.
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Realized Gains and Losses:  Realized gains and losses are recorded in Other Income, Net for Eversource's benefit trust and are offset in Other Long-Term Liabilities for CYAPC and YAEC.  Eversource utilizes the specific identification basis method for the Eversource non-qualified benefit trust, and the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts to compute the realized gains and losses on the sale of marketable securities.

Fair Value Measurements:  The following table presents the marketable securities recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:

Eversource<br><br>(Millions of Dollars) As of March 31, 2020 As of December 31, 2019
Level 1:
Mutual Funds and Equities $ 196.8 $ 228.5
Money Market Funds 44.1 46.0
Total Level 1 $ 240.9 $ 274.5
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury) $ 100.9 $ 96.8
Corporate Debt Securities 45.9 44.0
Asset-Backed Debt Securities 13.7 12.9
Municipal Bonds 22.2 26.7
Other Fixed Income Securities 7.7 7.7
Total Level 2 $ 190.4 $ 188.1
Total Marketable Securities $ 431.3 $ 462.6

U.S. government issued debt securities are valued using market approaches that incorporate transactions for the same or similar bonds and adjustments for yields and maturity dates.  Corporate debt securities are valued using a market approach, utilizing recent trades of the same or similar instruments and also incorporating yield curves, credit spreads and specific bond terms and conditions.  Asset-backed debt securities include collateralized mortgage obligations, commercial mortgage backed securities, and securities collateralized by auto loans, credit card loans or receivables.  Asset-backed debt securities are valued using recent trades of similar instruments, prepayment assumptions, yield curves, issuance and maturity dates, and tranche information.  Municipal bonds are valued using a market approach that incorporates reported trades and benchmark yields.  Other fixed income securities are valued using pricing models, quoted prices of securities with similar characteristics, and discounted cash flows.

6.    SHORT-TERM AND LONG-TERM DEBT

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.  Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas and Aquarion Water Company of Connecticut are also parties to a five-year $1.45 billion revolving credit facility, which terminates on December 6, 2024. The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility, which terminates on December 6, 2024. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.

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The amount of borrowings outstanding and available under the commercial paper programs were as follows:

Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 738.4 $ 1,224.9 $ 711.6 $ 225.1 3.38 % 1.98 %
NSTAR Electric Commercial Paper Program 88.0 10.5 562.0 639.5 1.25 % 1.63 %

There were no borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, 2020 or December 31, 2019.

Amounts outstanding under the commercial paper programs and revolving credit facilities are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time. As a result of the NSTAR Gas long-term debt issuances in May 2020, $25.0 million of the current portion of long-term debt and $165.0 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of March 31, 2020.

The Company expects the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, 2020, there were intercompany loans from Eversource parent to CL&P of $219.0 million, to PSNH of $84.7 million, and to a subsidiary of NSTAR Electric of $38.4 million. As of December 31, 2019, there were intercompany loans from Eversource parent to CL&P of $63.8 million, to PSNH of $27.0 million, and to a subsidiary of NSTAR Electric of $30.3 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.

Long-Term Debt Issuance Authorization: On January 27, 2020, the DPU approved NSTAR Gas' request for authorization to issue up to $270 million in long-term debt through December 31, 2021.

Long-Term Debt: The following table summarizes long-term debt issuances and repayments:

(Millions of Dollars) Issuance/(Repayment) Issue Date or Repayment Date Maturity Date Use of Proceeds for Issuance/<br>Repayment Information
NSTAR Electric:
3.95% 2020 Debentures $ 400.0 March 2020 April 2030 Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes (95.0 ) March 2020 March 2020 Paid at maturity
Other:
Eversource Parent 3.45% Series P Senior Notes 350.0 January 2020 January 2050 Paid short-term borrowings
NSTAR Gas 4.46% Series N First Mortgage Bonds (125.0 ) January 2020 January 2020 Paid at maturity
Yankee Gas 4.87% Series K First Mortgage Bonds (50.0 ) April 2020 April 2020 Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds 75.0 May 2020 May 2025 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds 115.0 May 2020 May 2050 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes

7.    RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

Rate Reduction Bonds: On May 8, 2018, PSNH Funding, a wholly-owned subsidiary of PSNH, issued $635.7 million of securitized RRBs in multiple tranches with a weighted average interest rate of 3.66 percent, and final maturity dates ranging from 2026 to 2035.  The RRBs are expected to be repaid by February 1, 2033. RRB payments consist of principal and interest and are paid semi-annually, beginning on February 1, 2019. The RRBs were issued pursuant to a finance order issued by the NHPUC on January 30, 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.

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PSNH Funding was formed solely to issue RRBs to finance PSNH's unrecovered remaining costs associated with the divestiture of its generation assets. PSNH Funding is considered a VIE primarily because the equity capitalization is insufficient to support its operations. PSNH has the power to direct the significant activities of the VIE and is most closely associated with the VIE as compared to other interest holders. Therefore, PSNH is considered the primary beneficiary and consolidates PSNH Funding in its consolidated financial statements. The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements: (Millions of Dollars)
Balance Sheet: As of March 31, 2020 As of December 31, 2019
Restricted Cash - Current Portion (included in Current Assets) $ 16.6 $ 32.5
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets) 3.2 3.2
Securitized Stranded Cost (included in Regulatory Assets) 554.5 565.3
Other Regulatory Liabilities (included in Regulatory Liabilities) 6.0 5.6
Accrued Interest (included in Other Current Liabilities) 3.3 8.6
Rate Reduction Bonds - Current Portion 43.2 43.2
Rate Reduction Bonds - Long-Term Portion 518.5 540.1
(Millions of Dollars) For the Three Months Ended
--- --- --- --- ---
Income Statement: March 31, 2020 March 31, 2019
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net) $ 10.8 $ 10.6
Interest Expense on RRB Principal (included in Interest Expense) 5.0 5.4

8.    PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSION

Eversource provides defined benefit retirement plans (Pension Plans) that cover eligible employees.  In addition to the Pension Plans, Eversource maintains non-qualified defined benefit retirement plans (SERP Plans), which provide benefits in excess of Internal Revenue Code limitations to eligible participants consisting of current and retired employees. Eversource also provides defined benefit postretirement plans (PBOP Plans) that provide life insurance and a health reimbursement arrangement created for the purpose of reimbursing retirees and dependents for health insurance premiums and certain medical expenses to eligible employees that meet certain age and service eligibility requirements.

The components of net periodic benefit expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets for future recovery, are shown below.  The service cost component of net periodic benefit expense/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP expense reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include the intercompany allocations or the corresponding capitalized and deferred portion, as these amounts are cash settled on a short-term basis.

Pension and SERP PBOP
For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2020
(Millions of Dollars) Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH
Service Cost $ 19.6 $ 5.7 $ 3.8 $ 2.2 $ 2.6 $ 0.5 $ 0.6 $ 0.2
Interest Cost 44.3 9.5 9.6 4.9 6.1 1.2 1.7 0.6
Expected Return on Plan Assets (100.3 ) (20.0 ) (25.8 ) (11.3 ) (18.1 ) (2.4 ) (8.5 ) (1.4 )
Actuarial Loss 49.3 10.0 13.3 4.1 2.1 0.4 0.7 0.1
Prior Service Cost/(Credit) 0.3 — 0.1 — (5.4 ) 0.2 (4.2 ) 0.1
Total Net Periodic Benefit Expense/(Income) $ 13.2 $ 5.2 $ 1.0 $ (0.1 ) $ (12.7 ) $ (0.1 ) $ (9.7 ) $ (0.4 )
Intercompany Allocations N/A $ 1.9 $ 1.9 $ 0.6 N/A $ (0.4 ) $ (0.4 ) $ (0.2 ) Pension and SERP PBOP
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2019
(Millions of Dollars) Eversource CL&P NSTAR<br><br>Electric PSNH Eversource CL&P NSTAR<br><br>Electric PSNH
Service Cost $ 19.3 $ 4.8 $ 3.9 $ 2.6 $ 2.1 $ 0.4 $ 0.4 $ 0.2
Interest Cost 54.2 11.5 11.9 6.2 8.1 1.5 2.3 0.9
Expected Return on Plan Assets (92.3 ) (18.8 ) (24.4 ) (10.3 ) (16.6 ) (2.3 ) (7.5 ) (1.3 )
Actuarial Loss 35.8 8.1 9.4 3.5 2.5 0.4 0.9 0.2
Prior Service Cost/(Credit) 1.1 — 0.1 — (5.8 ) 0.3 (4.2 ) 0.1
Total Net Periodic Benefit Expense/(Income) $ 18.1 $ 5.6 $ 0.9 $ 2.0 $ (9.7 ) $ 0.3 $ (8.1 ) $ 0.1
Intercompany Allocations N/A $ 7.8 $ 3.0 $ 2.4 N/A $ (0.1 ) $ (0.2 ) $ (0.1 )

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9.    COMMITMENTS AND CONTINGENCIES

A.    Environmental Matters

Eversource, CL&P, NSTAR Electric and PSNH are subject to environmental laws and regulations intended to mitigate or remove the effect of past operations and improve or maintain the quality of the environment. These laws and regulations require the removal or the remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current and former operating sites. Eversource, CL&P, NSTAR Electric and PSNH have an active environmental auditing and training program and each believes it is substantially in compliance with all enacted laws and regulations.

The number of environmental sites and related reserves for which remediation or long-term monitoring, preliminary site work or site assessment is being performed are as follows:

As of March 31, 2020 As of December 31, 2019
Number of Sites Reserve<br><br>(in millions) Number of Sites Reserve<br><br>(in millions)
Eversource 55 $ 79.1 57 $ 81.0
CL&P 15 11.8 15 11.4
NSTAR Electric 13 6.2 15 8.0
PSNH 9 7.4 9 7.5

Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability.  The reserve balances related to these former MGP sites were $67.4 million and $67.9 million as of March 31, 2020 and December 31, 2019, respectively, and related primarily to the natural gas business segment.

These reserve estimates are subjective in nature as they take into consideration several different remediation options at each specific site.  The reliability and precision of these estimates can be affected by several factors, including new information concerning either the level of contamination at the site, the extent of Eversource's, CL&P's, NSTAR Electric's and PSNH's responsibility for remediation or the extent of remediation required, recently enacted laws and regulations or changes in cost estimates due to certain economic factors.  It is possible that new information or future developments could require a reassessment of the potential exposure to required environmental remediation.  As this information becomes available, management will continue to assess the potential exposure and adjust the reserves accordingly.

B.    Guarantees and Indemnifications

In the normal course of business, Eversource parent provides credit assurances on behalf of its subsidiaries, including CL&P, NSTAR Electric and PSNH, in the form of guarantees. Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications.  The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties as of March 31, 2020:

Company Description Maximum Exposure<br><br>(in millions) Expiration Dates
Various Surety Bonds^(1)^ $ 30.0 2020 - 2023
Rocky River Realty Company and Eversource Service Lease Payments for Real Estate 6.1 2024
Bay State Wind LLC Real Estate Purchase 2.5 2020
Sunrise Wind LLC Offshore Wind ^(2)^ 2.2 -
^(1)^ Surety bond expiration dates reflect termination dates, the majority of which will be renewed or extended.  Certain surety bonds contain credit ratings triggers that would require Eversource parent to post collateral in the event that the unsecured debt credit ratings of Eversource parent are downgraded.
--- ---
^(2)^ On October 25, 2019, Eversource parent issued a guaranty on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guaranty Sunrise Wind LLC’s performance of certain obligations, in an amount not to exceed $15.4 million, under the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement (the Agreement). The Agreement was executed on October 23, 2019, by and between the New York State Energy Research and Development Authority (NYSERDA) and Sunrise Wind LLC. The Company regularly reviews performance risk under this arrangement, and in the event it becomes probable that Eversource parent will be required to perform under the guarantee, the amount of probable payment will be recorded. As of March 31, 2020, the fair value of the guarantee was immaterial.
--- ---

C.     Spent Nuclear Fuel Obligations - Yankee Companies

CL&P, NSTAR Electric and PSNH have plant closure and fuel storage cost obligations to the Yankee Companies, which have each completed the physical decommissioning of their respective nuclear power facilities and are now engaged in the long-term storage of their spent fuel. The Yankee Companies fund these costs through litigation proceeds received from the DOE and, to the extent necessary, through wholesale, FERC-approved rates charged under power purchase agreements with several New England utilities, including CL&P, NSTAR Electric and PSNH. CL&P, NSTAR Electric and PSNH, in turn recover these costs from their customers through state regulatory commission-approved retail rates.

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The Yankee Companies collect amounts that management believes are adequate to recover the remaining plant closure and fuel storage cost estimates for the respective plants. Management believes CL&P and NSTAR Electric will recover their shares of these obligations from their customers. PSNH has recovered its total share of these costs from its customers.

Spent Nuclear Fuel Litigation:

The Yankee Companies have filed complaints against the DOE in the Court of Federal Claims seeking monetary damages resulting from the DOE's failure to accept delivery of, and provide for a permanent facility to store, spent nuclear fuel pursuant to the terms of the 1983 spent fuel and high-level waste disposal contracts between the Yankee Companies and the DOE. The court previously awarded the Yankee Companies damages for Phases I, II and III of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2012, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase IV Damages - On May 22, 2017, each of the Yankee Companies filed a fourth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies sought monetary damages totaling $104.4 million for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2013 to 2016 (DOE Phase IV). On February 21, 2019, the Yankee Companies received a partial summary judgment and partial final judgment in their favor for the undisputed amount of monetary damages of $103.2 million. The court awarded CYAPC, YAEC and MYAPC damages of $40.7 million, $28.1 million and $34.4 million, respectively. The DOE did not appeal the court's judgment and the decision became final on April 23, 2019. On June 12, 2019, each of the Yankee Companies received the damages proceeds. On June 12, 2019, the court accepted an offer of judgment in the amount of $0.5 million to settle the disputed amount of approximately $1 million in Phase IV contested damages. The Yankee Companies received the $0.5 million payment in July 2019.

In September 2019, the Yankee Companies made a required informational filing with FERC as to the use of proceeds, for which approval was received in the fourth quarter of 2019. In December 2019, YAEC and MYAPC returned proceeds of $5.4 million and $21.0 million, respectively, to its member companies, of which the Eversource utilities (CL&P, NSTAR Electric and PSNH) received a total of $2.8 million from YAEC and $5.0 million from MYAPC. The Eversource utilities refund these amounts received to their utility customers. Also, in December 2019, CYAPC paid $29.0 million to the DOE to partially settle its pre-1983 spent nuclear fuel obligation.

D.    FERC ROE Complaints

Four separate complaints were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive (incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.

The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, the FERC set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the Court).

All amounts associated with the first complaint period have been refunded, which totaled $38.9 million (pre-tax and excluding interest) at Eversource and reflected both the base ROE and incentive cap prescribed by the FERC order. The refund consisted of $22.4 million for CL&P, $13.7 million for NSTAR Electric and $2.8 million for PSNH.

Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of March 31, 2020 and December 31, 2019. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, 2020 and December 31, 2019.

On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.

The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

If the results of the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods. These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.

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On November 21, 2019, FERC issued an order concerning the transmission ROEs for the Midcontinent ISO transmission owners (MISO). In that order, FERC adopted another new methodology for determining base ROEs for MISO, which differed significantly from the methodology and framework set forth in its October 16, 2018 FERC order on the NETOs’ ROE dockets. On December 23, 2019, the NETOs filed a Supplemental Paper Hearing Brief and a Motion to supplement the record in the NETO ROE dockets to respond to the new methodology proposed in the MISO order, as there is uncertainty to whether it may be applied to the NETOs’ cases. On January 21, 2020, the FERC issued an order granting rehearing for further consideration to give the FERC more time to act on the substantive issues of the MISO ROE proceedings. Further changes to the methodology by FERC are possible as a result of the arguments in both the MISO and NETO proceedings.

Given the significant uncertainty relating to the October 2018 FERC order, the November 2019 FERC order to MISO, and the FERC's rehearing of the MISO order, the Company is unable to predict the potential effect of the MISO order on the NETO complaints or the outcome of the four complaints and concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time. Further, the Company cannot reasonably estimate a range of gain or loss for any of the four complaint proceedings.

Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.

A change of 10 basis points to the base ROE used to establish the reserves would impact Eversource's after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods.

E.    Eversource and NSTAR Electric Boston Harbor Civil Action

In 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts against NSTAR Electric, HEEC, and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants").  The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor.

The parties reached a settlement pursuant to which HEEC agreed to install a new

115

kV distribution cable across Boston Harbor to Deer Island, utilizing a different route, and remove portions of the existing cable. Construction of the new distribution cable was completed in August 2019 and removal of the portions of the existing cable was completed in January 2020. All issues surrounding the current permit from the United States Army Corps of Engineers are expected to be resolved, and such litigation is expected to be dismissed with prejudice.

10.    FAIR VALUE OF FINANCIAL INSTRUMENTS

The following methods and assumptions were used to estimate the fair value of each of the following financial instruments:

Preferred Stock, Long-Term Debt and Rate Reduction Bonds:  The fair value of CL&P's and NSTAR Electric's preferred stock is based upon pricing models that incorporate interest rates and other market factors, valuations or trades of similar securities and cash flow projections.  The fair value of long-term debt and RRB debt securities is based upon pricing models that incorporate quoted market prices for those issues or similar issues adjusted for market conditions, credit ratings of the respective companies and treasury benchmark yields.  The fair values provided in the table below are classified as Level 2 within the fair value hierarchy.  Carrying amounts and estimated fair values are as follows:

Eversource CL&P NSTAR Electric PSNH
(Millions of Dollars) Carrying<br><br>Amount Fair<br><br>Value Carrying<br><br>Amount Fair<br><br>Value Carrying<br><br>Amount Fair<br><br>Value Carrying<br><br>Amount Fair<br><br>Value
As of March 31, 2020:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6 $ 156.0 $ 116.2 $ 113.8 $ 43.0 $ 42.2 $ — $ —
Long-Term Debt 14,431.0 15,177.1 3,518.1 3,949.4 3,642.3 3,901.2 951.7 995.8
Rate Reduction Bonds 561.7 596.0 — — — — 561.7 596.0
As of December 31, 2019:
Preferred Stock Not Subject to Mandatory Redemption $ 155.6 $ 162.0 $ 116.2 $ 117.8 $ 43.0 $ 44.2 $ — $ —
Long-Term Debt 14,098.2 15,170.2 3,518.1 4,058.0 3,342.1 3,659.9 951.6 1,005.7
Rate Reduction Bonds 583.3 625.9 — — — — 583.3 625.9

Derivative Instruments and Marketable Securities: Derivative instruments and investments in marketable securities are carried at fair value.  For further information, see Note 4, "Derivative Instruments," and Note 5, "Marketable Securities," to the financial statements.

See Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," for the fair value measurement policy and the fair value hierarchy.

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11.    ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, are as follows:

For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019
Eversource<br><br>(Millions of Dollars) Qualified<br><br>Cash Flow<br><br>Hedging<br><br>Instruments Unrealized<br><br>Gains on Marketable<br><br>Securities Defined<br><br>Benefit Plans Total Qualified<br><br>Cash Flow<br><br>Hedging<br><br>Instruments Unrealized<br><br>Gains/(Losses)<br><br>on Marketable<br><br>Securities Defined<br><br>Benefit Plans Total
Balance as of January 1st $ (3.0 ) $ 0.7 $ (62.8 ) $ (65.1 ) $ (4.4 ) $ (0.5 ) $ (55.1 ) $ (60.0 )
OCI Before Reclassifications — 0.2 — 0.2 — 0.7 — 0.7
Amounts Reclassified from AOCI 0.2 — 1.6 1.8 0.3 — 1.2 1.5
Net OCI 0.2 0.2 1.6 2.0 0.3 0.7 1.2 2.2
Balance as of March 31st $ (2.8 ) $ 0.9 $ (61.2 ) $ (63.1 ) $ (4.1 ) $ 0.2 $ (53.9 ) $ (57.8 )

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses that arose during the year and were recognized in AOCI. The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCI into Other Income, Net over the average future employee service period, and are reflected in amounts reclassified from AOCI.

12.    COMMON SHARES

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric and PSNH that were authorized and issued, as well as the respective per share par values:

Shares
Authorized as of March 31, 2020 and December 31, 2019 Issued as of
Par Value March 31, 2020 December 31, 2019
Eversource $ 5 380,000,000 351,818,402 345,858,402
CL&P $ 10 24,500,000 6,035,205 6,035,205
NSTAR Electric $ 1 100,000,000 200 200
PSNH $ 1 100,000,000 301 301

Common Share Issuance and Forward Sale Agreement: In June 2019, Eversource completed an equity offering consisting of

5,980,000

common shares issued directly by the Company and

11,960,000

common shares issuable pursuant to a forward sale agreement with an investment bank. Under the forward sale agreement,

11,960,000

common shares were borrowed from third parties and sold by the underwriters. The forward sale agreement allowed Eversource, at its election and prior to May 29, 2020, to physically settle the forward sale agreement by issuing common shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreement (initially,

$71.48

per share) or, alternatively, to settle the forward sale agreement in whole or in part through the delivery or receipt of shares or cash. The forward sale price was subject to adjustment daily based on a floating interest rate factor and would decrease in respect of certain fixed amounts specified in the agreement, such as dividends.

Eversource previously issued

6,000,000

common shares under the forward sale agreement in December 2019. On March 23, 2020, Eversource physically settled a portion of the forward sale agreement by delivering

1,500,000

common shares in exchange for net proceeds of $105.7 million. Subsequently, on March 26, 2020, Eversource physically settled the remaining portion of the forward sale agreement by delivering

4,460,000

common shares in exchange for net proceeds of $314.1 million. The forward sale price used to determine the cash proceeds received by Eversource was calculated based on the initial forward sale price of

$71.48

per share, as adjusted in accordance with the forward sale agreement.

The 2020 issuances of

5,960,000

common shares resulted in proceeds of $419.8 million, net of issuance costs, and were reflected in shareholders' equity and as financing activities on the statement of cash flows.

Issuances of shares under the forward sale agreement are classified as equity transactions. Accordingly, no amounts relating to the forward sale agreement were recorded in the financial statements until settlements took place. Prior to any settlements, the only impact to the financial statements was the inclusion of incremental shares within the calculation of diluted EPS using the treasury stock method. See Note 14, "Earnings Per Share," to the financial statements for information on the forward sale agreement’s impact on the calculation of diluted EPS.

Eversource used the net proceeds received upon the direct issuance of common shares and the net proceeds received upon settlement of the forward sale agreement to repay short-term debt under the commercial paper program, to fund capital spending and clean energy initiatives, and for general corporate purposes.

Treasury Shares: As of March 31, 2020 and December 31, 2019, there were

15,407,215

and

15,977,757

Eversource common shares held as treasury shares, respectively. As of March 31, 2020 and December 31, 2019, Eversource common shares outstanding were

336,411,187

and

329,880,645

, respectively.

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Eversource issues 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.

13.    COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended March 31, 2020 and 2019. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest – Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of March 31, 2020 and December 31, 2019. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to Eversource parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

14.    EARNINGS PER SHARE

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period.  Diluted EPS is computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect of certain share-based compensation awards and the equity forward sale agreement, as if they were converted into outstanding common shares.  The dilutive effect of unvested RSU and performance share awards, as well as the equity forward sale agreement, is calculated using the treasury stock method.  RSU and performance share awards are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied.

As described in Note 12, "Common Shares," earnings per share dilution, if any, related to the forward sale agreement is determined under the treasury stock method until settlement of the forward sale agreement. Under this method, the number of Eversource common shares used in calculating diluted EPS is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreement less the number of shares that would be purchased by Eversource in the market (based on the average market price during the same reporting period) using the proceeds receivable upon settlement (based on the adjusted forward sale price at the end of that reporting period). Share dilution occurs when the average market price of Eversource's common shares is higher than the adjusted forward sale price.

The following table sets forth the components of basic and diluted EPS:

Eversource<br><br>(Millions of Dollars, except share information) For the Three Months Ended
March 31, 2020 March 31, 2019
Net Income Attributable to Common Shareholders $ 334.8 $ 308.7
Weighted Average Common Shares Outstanding:
Basic 331,102,237 317,624,593
Dilutive Effect of:
Share-Based Compensation Awards and Other 747,233 691,489
Equity Forward Sale Agreement 1,087,683 —
Total Dilutive Effect 1,834,916 691,489
Diluted 332,937,153 318,316,082
Basic and Diluted EPS $ 1.01 $ 0.97

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15.    REVENUES

The following tables present operating revenues disaggregated by revenue source:

For the Three Months Ended March 31, 2020
Eversource<br><br>(Millions of Dollars) Electric<br><br>Distribution Natural Gas<br><br>Distribution Electric<br><br>Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 963.8 $ 238.0 $ — $ 27.8 $ — $ — $ 1,229.6
Commercial 607.0 134.6 — 14.8 — (1.0 ) 755.4
Industrial 79.8 28.3 — 1.1 — (3.2 ) 106.0
Total Retail Tariff Sales Revenues 1,650.6 400.9 — 43.7 — (4.2 ) 2,091.0
Wholesale Transmission Revenues — — 336.3 — 17.3 (283.6 ) 70.0
Wholesale Market Sales Revenues 91.0 13.2 — 0.8 — — 105.0
Other Revenues from Contracts with Customers 19.1 0.9 3.4 1.9 277.3 (276.2 ) 26.4
Amortization/(Reserve) for Revenues<br><br>Subject to Refund 2.3 0.5 — (0.8 ) — — 2.0
Total Revenues from Contracts with Customers 1,763.0 415.5 339.7 45.6 294.6 (564.0 ) 2,294.4
Alternative Revenue Programs ^(1)^ 38.8 32.2 29.8 1.1 — (27.4 ) 74.5
Other Revenues ^(2)^ 3.5 0.9 0.2 0.2 — — 4.8
Total Operating Revenues $ 1,805.3 $ 448.6 $ 369.7 $ 46.9 $ 294.6 $ (591.4 ) $ 2,373.7
For the Three Months Ended March 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Eversource<br><br>(Millions of Dollars) Electric<br><br>Distribution Natural Gas<br><br>Distribution Electric<br><br>Transmission Water Distribution Other Eliminations Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 1,033.3 $ 258.9 $ — $ 27.0 $ — $ — $ 1,319.2
Commercial 652.6 143.8 — 14.3 — (1.1 ) 809.6
Industrial 82.1 30.9 — 1.1 — (2.7 ) 111.4
Total Retail Tariff Sales Revenues 1,768.0 433.6 — 42.4 — (3.8 ) 2,240.2
Wholesale Transmission Revenues — — 324.9 — 13.5 (270.8 ) 67.6
Wholesale Market Sales Revenues 51.5 21.7 — 1.0 — — 74.2
Other Revenues from Contracts with Customers 12.6 0.9 3.2 1.7 244.6 (245.4 ) 17.6
Amortization/(Reserve) for Revenues <br> Subject to Refund (3.1 ) 1.6 — (0.8 ) — — (2.3 )
Total Revenues from Contracts with Customers 1,829.0 457.8 328.1 44.3 258.1 (520.0 ) 2,397.3
Alternative Revenue Programs ^(1)^ 2.1 10.4 12.4 0.9 — (11.1 ) 14.7
Other Revenues ^(2)^ 2.8 0.7 — 0.3 — — 3.8
Total Operating Revenues $ 1,833.9 $ 468.9 $ 340.5 $ 45.5 $ 258.1 $ (531.1 ) $ 2,415.8 For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Millions of Dollars) CL&P NSTAR Electric PSNH CL&P NSTAR Electric PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential $ 489.9 $ 331.0 $ 142.9 $ 510.5 $ 371.0 $ 151.8
Commercial 226.4 301.9 79.1 236.7 336.5 79.8
Industrial 34.0 26.8 19.0 34.6 28.8 18.7
Total Retail Tariff Sales Revenues 750.3 659.7 241.0 781.8 736.3 250.3
Wholesale Transmission Revenues 151.8 134.8 49.7 154.8 122.6 47.5
Wholesale Market Sales Revenues 64.7 14.4 11.9 13.7 24.4 13.4
Other Revenues from Contracts with Customers 8.8 10.7 3.7 8.9 4.0 3.6
Amortization/(Reserve) for Revenues <br> Subject to Refund — — 2.3 — — (3.1 )
Total Revenues from Contracts with Customers 975.6 819.6 308.6 959.2 887.3 311.7
Alternative Revenue Programs ^(1)^ 44.6 19.3 4.7 5.7 7.3 1.5
Other Revenues ^(2)^ 1.7 1.4 0.6 1.0 1.5 0.3
Eliminations (122.2 ) (106.5 ) (37.5 ) (116.7 ) (98.5 ) (37.1 )
Total Operating Revenues $ 899.7 $ 733.8 $ 276.4 $ 849.2 $ 797.6 $ 276.4

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^(1)^ CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and the Connecticut water distribution business each have a revenue decoupling mechanism approved by a regulatory commission. The revenue decoupling mechanisms mitigate the impact of lower demand and resulting lost sales revenues by allowing for a true-up to occur as part of each company’s annual decoupling filing. These revenue decoupling mechanisms qualify as alternative revenue programs in accordance with accounting guidance for rate-regulated operations. The increase in revenues from Alternative Revenue Programs for the three months ended March 31, 2020, as compared to the three months ended March 31, 2019, was primarily the result of a higher decoupling deferral adjustment driven by lower distribution sales volumes in the first quarter of 2020. The decoupling deferral adjustment to revenues is recorded as a regulatory tracker mechanism within Regulatory Assets on the balance sheets.
^(2)^ Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. Other revenues also includes lease revenues under lessor accounting guidance of $1.1 million (including $0.2 million at CL&P, and $0.7 million at NSTAR Electric) and $1.0 million (including $0.2 million at CL&P, and $0.6 million at NSTAR Electric) for the three months ended March 31, 2020 and March 31, 2019, respectively.
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16.    SEGMENT INFORMATION

Eversource is organized into the Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution reportable segments and Other based on a combination of factors, including the characteristics of each segments' services, the sources of operating revenues and expenses and the regulatory environment in which each segment operates.  These reportable segments represent substantially all of Eversource's total consolidated revenues.  Revenues from the sale of electricity, natural gas and water primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer.  The Electric Distribution reportable segment includes the results of NSTAR Electric's solar power facilities. Eversource's reportable segments are determined based upon the level at which Eversource's chief operating decision maker assesses performance and makes decisions about the allocation of company resources.

The remainder of Eversource's operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of CYAPC and YAEC, 4) Eversource Water Ventures, Inc., parent company of Aquarion, 5) the results of other unregulated subsidiaries, which are not part of its core business, and 6) Eversource parent's equity ownership interests that are not consolidated, which primarily include the offshore wind business, a natural gas pipeline owned by Enbridge, Inc., and a renewable energy investment fund.

In the ordinary course of business, Yankee Gas and NSTAR Gas purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $62.5 million annually and are classified as Purchased Power, Fuel and Transmission on the Eversource statements of income.

Each of Eversource's subsidiaries, including CL&P, NSTAR Electric and PSNH, has one reportable segment.

Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred but not paid, cost of removal, AFUDC related to equity funds, and the capitalized portions of pension and PBOP expense.

Eversource's segment information is as follows:

For the Three Months Ended March 31, 2020
Eversource<br><br>(Millions of Dollars) Electric Distribution Natural Gas Distribution Electric Transmission Water Distribution Other Eliminations Total
Operating Revenues $ 1,805.3 $ 448.6 $ 369.7 $ 46.9 $ 294.6 $ (591.4 ) $ 2,373.7
Depreciation and Amortization (167.3 ) (19.1 ) (67.5 ) (11.4 ) (21.3 ) 0.6 (286.0 )
Other Operating Expenses (1,439.6 ) (311.6 ) (106.8 ) (25.0 ) (257.0 ) 591.4 (1,548.6 )
Operating Income $ 198.4 $ 117.9 $ 195.4 $ 10.5 $ 16.3 $ 0.6 $ 539.1
Interest Expense $ (53.1 ) $ (11.4 ) $ (30.6 ) $ (8.7 ) $ (42.7 ) $ 11.8 $ (134.7 )
Other Income, Net 12.5 1.4 5.2 0.1 468.1 (463.2 ) 24.1
Net Income Attributable to Common Shareholders 130.1 84.4 126.8 2.1 442.2 (450.8 ) 334.8
Cash Flows Used for Investments in Plant 315.8 99.1 232.8 18.5 59.3 — 725.5

35

For the Three Months Ended March 31, 2019
Eversource<br><br>(Millions of Dollars) Electric<br><br>Distribution Natural Gas<br><br>Distribution Electric<br><br>Transmission Water Distribution Other Eliminations Total
Operating Revenues $ 1,833.9 $ 468.9 $ 340.5 $ 45.5 $ 258.1 $ (531.1 ) $ 2,415.8
Depreciation and Amortization (179.2 ) (20.4 ) (61.5 ) (11.8 ) (13.6 ) 0.6 (285.9 )
Other Operating Expenses (1,475.6 ) (341.3 ) (98.8 ) (25.0 ) (225.5 ) 531.0 (1,635.2 )
Operating Income $ 179.1 $ 107.2 $ 180.2 $ 8.7 $ 19.0 $ 0.5 $ 494.7
Interest Expense $ (49.2 ) $ (11.7 ) $ (30.6 ) $ (8.6 ) $ (44.2 ) $ 12.6 $ (131.7 )
Other Income, Net 18.2 0.2 8.1 0.4 431.7 (427.6 ) 31.0
Net Income Attributable to Common Shareholders 120.1 76.5 118.2 0.9 407.5 (414.5 ) 308.7
Cash Flows Used for Investments in Plant ^(1)^ 279.3 87.4 184.8 20.7 55.9 — 628.1

The following table summarizes Eversource's segmented total assets:

Eversource<br><br>(Millions of Dollars) Electric<br><br>Distribution Natural Gas<br><br>Distribution Electric<br>Transmission Water Distribution Other Eliminations Total
As of March 31, 2020 $ 23,135.9 $ 4,430.4 $ 11,137.5 $ 2,368.7 $ 20,860.8 $ (20,284.3 ) $ 41,649.0
As of December 31, 2019 22,541.9 4,345.5 10,904.0 2,351.7 20,469.6 (19,488.8 ) 41,123.9
^(1)^ See Note 1A, "Summary of Significant Accounting Policies - Basis of Presentation," for information regarding the correction of cash investments in plant reported in 2019.
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36

EVERSOURCE ENERGY AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related combined notes included in this combined Quarterly Report on Form 10-Q, as well as the Eversource 2019 combined Annual Report on Form 10-K.  References in this combined Quarterly Report on Form 10-Q to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries.  All per-share amounts are reported on a diluted basis.  The unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."

Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations.

The only common equity securities that are publicly traded are common shares of Eversource.  The earnings and EPS of each business discussed below do not represent a direct legal interest in the assets and liabilities of such business but rather represent a direct interest in our assets and liabilities as a whole.  EPS by business is a financial measure not recognized under GAAP, calculated by dividing the Net Income Attributable to Common Shareholders of each business by the weighted average diluted Eversource common shares outstanding for the period.  Our earnings discussion also includes non-GAAP financial measures referencing our 2020 earnings and EPS excluding certain acquisition costs and our Q2 2019 earnings and EPS excluding the impairment charge for the NPT project.

We use these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain our 2020 and 2019 results without including these items. We believe the acquisition costs and the NPT impairment charge are not indicative of our ongoing costs and performance.  Due to the nature and significance of these items on Net Income Attributable to Common Shareholders, we believe that the non-GAAP presentation is a more meaningful representation of our financial performance and provides additional and useful information to readers of this report in analyzing historical and future performance of our business. These non-GAAP financial measures should not be considered as an alternative to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as an indicator of operating performance.

From time to time, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts.  These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  You can generally identify our forward-looking statements through the use of words or phrases such as "estimate," "expect," "anticipate," "intend," "plan," "project," "believe," "forecast," "should," "could," and other similar expressions.  Forward-looking statements are based on the current expectations, estimates, assumptions or projections of management and are not guarantees of future performance.  These expectations, estimates, assumptions or projections may vary materially from actual results.  Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that could cause our actual results to differ materially from those contained in our forward-looking statements, including, but not limited to:

• cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers,
• disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly,
--- ---
• the negative impacts of the novel coronavirus (COVID-19) pandemic on our customers, vendors, employees, regulators, and operations,
--- ---
• changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability,
--- ---
• ability or inability to commence and complete our major strategic development projects and opportunities,
--- ---
• acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems,
--- ---
• actions or inaction of local, state and federal regulatory, public policy and taxing bodies,
--- ---
• substandard performance of third-party suppliers and service providers,
--- ---
• fluctuations in weather patterns, including extreme weather due to climate change,
--- ---
• changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model,
--- ---
• contamination of, or disruption in, our water supplies,
--- ---
• changes in levels or timing of capital expenditures, including the Columbia Gas of Massachusetts asset acquisition;
--- ---
• changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations,
--- ---
• changes in accounting standards and financial reporting regulations,
--- ---
• actions of rating agencies, and
--- ---
• other presently unknown or unforeseen factors.
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Other risk factors are detailed in our reports filed with the SEC and updated as necessary, and we encourage you to consult such disclosures.

All such factors are difficult to predict and contain uncertainties that may materially affect our actual results, many of which are beyond our control.  You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.  New factors emerge from time to time and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business

37

or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see Item 1A, Risk Factors, included in this combined Quarterly Report on Form 10-Q and in Eversource's 2019 combined Annual Report on Form 10-K.  This combined Quarterly Report on Form 10-Q and Eversource's 2019 combined Annual Report on Form 10-K also describe material contingencies and critical accounting policies in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Combined Notes to Financial Statements.  We encourage you to review these items.

Financial Condition and Business Analysis

Executive Summary

The following items in this executive summary are explained in more detail in this combined Quarterly Report on Form 10-Q:

Earnings Overview and Future Outlook:

• We earned $334.8 million, or $1.01 per share, in the first quarter of 2020, compared with $308.7 million, or $0.97 per share, in the first quarter of 2019. Results for the first quarter of 2020 include after-tax acquisition costs related to our planned purchase of the assets of Columbia Gas of Massachusetts (CMA) of $3.5 million, or $0.01 per share. Excluding those acquisition costs, we earned $338.3 million, or $1.02 per share, in the first quarter of 2020.
• Our electric distribution segment earned $130.1 million, or $0.39 per share, in the first quarter of 2020, compared with $120.1 million, or $0.38 per share, in the first quarter of 2019.  Our electric transmission segment earned $126.8 million, or $0.38 per share, in the first quarter of 2020, compared with $118.2 million, or $0.37 per share, in the first quarter of 2019. Our natural gas distribution segment earned $84.4 million, or $0.25 per share, in the first quarter of 2020, compared with $76.5 million, or $0.24 per share, in the first quarter of 2019.  Our water distribution segment earned $2.1 million in the first quarter of 2020, compared with $0.9 million in the first quarter of 2019.
--- ---
• Eversource parent and other companies had a net loss of $8.6 million, or $0.02 per share, in the first quarter of 2020, compared with a net loss of $7.0 million, or $0.02 per share, in the first quarter of 2019. Excluding acquisition costs, Eversource parent and other companies had a net loss of $5.1 million, or $0.01 per share, in the first quarter of 2020.
--- ---
• We reaffirmed 2020 earnings of between $3.60 per share and $3.70 per share.
--- ---
• In March 2020, the World Health Organization declared the outbreak of the 2019 novel coronavirus (COVID-19) a pandemic. As of the date of our filing, the outbreak of COVID-19 has not resulted in a significant financial or operational impact. We are continuing to closely monitor for COVID-19 pandemic related changes, as well as operate under our pandemic response plan; however, we cannot at this time predict the impact that the COVID-19 pandemic will have on our future financial condition and operations.
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Liquidity:

• Cash flows provided by operating activities totaled $420.3 million in the first quarter of 2020, compared with $381.4 million in the first quarter of 2019. Investments in property, plant and equipment totaled $725.5 million in the first quarter of 2020, compared with $628.1 million in the first quarter of 2019.  Cash totaled $47.4 million as of March 31, 2020, compared with $15.4 million as of December 31, 2019. Our available borrowing capacity under our commercial paper programs totaled $1.27 billion as of March 31, 2020.
• In the first quarter of 2020, we issued 5,960,000 common shares, which resulted in proceeds of $419.8 million, net of issuance costs.
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• In the first quarter of 2020, we issued $750 million of new long-term debt, consisting of $400 million by NSTAR Electric and $350 million by Eversource parent. Proceeds from these new issuances were used primarily to refinance investments in eligible green expenditures at NSTAR Electric and to pay short-term borrowings at Eversource parent.
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• On May 6, 2020, our Board of Trustees approved a common share dividend payment of $0.5675 per share, payable on June 30, 2020 to shareholders of record as of May 20, 2020. On February 5, 2020, our Board of Trustees approved a common share dividend payment of $0.5675 per share, which was paid on March 31, 2020 to shareholders of record as of March 4, 2020.
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Strategic:

• On February 26, 2020, Eversource and NiSource Inc. entered into an asset purchase agreement where Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in Massachusetts for a purchase price of $1.1 billion. The liabilities to be assumed by Eversource specifically exclude any liabilities (past or future) arising out of, or related to, the fires and explosions that occurred on September 13, 2018 in Lawrence, Andover and North Andover, Massachusetts. The acquisition and resulting rate plan both require DPU and other approvals. The transaction is expected to close by the end of the third quarter of 2020.

38

Impact of COVID-19

In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic and President Trump declared a national emergency affecting the entire United States where each state qualifies as being part of a national disaster. The spread of COVID-19 has adversely affected workforces, the overall economy and caused significant volatility in the financial markets. To date, we have not experienced significant operational or financial impacts directly related to the pandemic. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we will continue to closely monitor how COVID-19 related developments affect Eversource. As of the date of our filing and based on information we have available, we are unable to predict the impacts that the COVID-19 pandemic will have on our future operations, financial position, results of operations, and cash flows. The extent of the impact to us in the future will vary and depend in large part on the duration, scope and severity of a national and global economic slowdown, risk of inflation, governmental and regulatory actions, the maintenance of a strong regional and national healthcare system, and the continued spread of the virus, which is mitigated through social distancing measures.

Operational: We provide a critical service to our customers and have taken extensive measures to maintain its reliability. We have implemented our company-wide pandemic plan, which guides our emergency response, business continuity, and the precautionary measures we are taking to ensure the safety, health, and well-being of our employees, our customers, and our communities. We continue to adjust our company-wide pandemic plan to assume various scenarios, including reduced workforce levels and limited mutual aid in the event of a significant storm event, and have implemented protective measures to mitigate the impact of COVID-19 on our workforce. We have implemented work from home policies where appropriate, resulting in nearly half of our employees working remotely. For our employees performing essential functions that are required onsite, such as field crews and system operations, we have taken significant safety measures, including establishing social distancing measures, enabling critical operations to be shifted to different control center locations if necessary, and increasing facility sanitization efforts and promoting both the availability and use of personal protective equipment. We have suspended non-critical work inside customer premises, which includes energy audits inside our customers’ homes and businesses; however, as of the date of our filing, we do not expect a significant impact on our 2020 energy efficiency program spending and efforts. At this time, our workforce staffing levels continue to enable us to safely and reliably deliver our critical services to customers. As of May 7, 2020, we had 31 confirmed employee cases of COVID-19. We had a total of 547 quarantined employees, of which 442 employees have returned to the workforce.

Financial: Overall, our future financial position, results of operations, and cash flows could be negatively impacted by COVID-19 as it relates to the valuation of customer receivables, collectibility estimates and customer payment plans, elimination of late payment revenues, lower sales volumes primarily from PSNH's commercial and industrial customers, market volatility on our equity and debt securities, access to, as well as cost of, capital resources, and the ability of various third-party vendors and suppliers to fulfill their obligations.

As of March 31, 2020, our allowance for uncollectible customer receivable balance of $262.1 million, of which $172.2 million relates to hardship accounts that are specifically recovered in rates charged to customers, adequately reflected the collection risk and net realizable value for our receivables and has not been materially impacted by COVID-19.  We will continue to evaluate the adequacy of the uncollectible allowance in future reporting periods based on an ongoing assessment of accounts receivable collections, delinquency statistics, COVID-19 developments, and analysis of aging-based quantitative assessments.  We are working closely with our state regulatory commissions and consumer advocates to develop several customer assistance measures, including more flexible and new payment plan options in order to mitigate the impact on customer rates in the future, as well as financial hardship and arrearage management programs for those customers who are unable to pay their utility bills. We are developing these long-term solutions for customers in order to help minimize the extent of the impact of COVID-19 on customer receivable balances and customers’ affordability in light of the current financial impact they may experience. In Connecticut, Massachusetts and New Hampshire, beginning in March, there is presently a moratorium on disconnections of residential and commercial customers for non-payment.  As of the date of our filing, although our operating companies are beginning to experience some lower cash collections from customers because of the moratorium on disconnections and the economic slowdown, it is not a significant reduction in customer payments. The ultimate amount and duration cannot be estimated at this time; however we anticipate that any potential reduction in operating cash flows will be mitigated by the use of our short-term borrowing facilities.  We believe that we will be able to develop a successful structure with our state regulatory commissions to recover our costs associated with COVID-19, while balancing the impact on our customers’ bills and our operating cash flows.  As such, as of the date of our filing, our uncollectible accounts have not been materially impacted.

An extended economic slowdown could result in lower demand for electricity, natural gas and/or water by our commercial and industrial customers. However, fluctuations in retail sales volumes for CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and our Connecticut water distribution business are not expected to materially impact earnings due to their respective state regulatory commission-approved distribution revenue decoupling mechanisms. Overall, we believe our risk of exposure to lower demand and resulting lost sales revenues is limited as our regulated utilities, with the exception of PSNH, are under cost-of-service rates with revenue decoupling mechanisms, allowing for a true-up to occur as part of each company’s annual decoupling filing, and a significant portion of uncollectible expenses are tracked for ultimate recovery.

As of March 31, 2020, we did not have indicators of triggering events for impairments to our goodwill, long-lived assets, available-for-sale debt securities, or equity method investment carrying values. As of the date of our filing, based on information we have available and the current market trends, we do not expect an impairment to these assets for the remainder of 2020.

We continue to monitor Eversource’s and our operating companies’ ability to access the global capital and credit markets. At the onset of the pandemic in the United States, liquidity in the commercial paper credit market began to deteriorate rapidly. However, federal legislative actions, including actions taken by the Federal Reserve, have provided sufficient liquidity and stabilization of the credit markets. An extended economic slowdown could result in Eversource and our operating companies finding difficulty in accessing necessary capital resources and incurring higher costs for those capital resources. As of the date of our filing, based on information we have available and the current market trends, we believe we will continue to have access to liquidity and capital resources to successfully execute our projected 2020 capital expenditures and strategies. In addition, the successful execution of our timeline for developing our offshore wind projects is based on several factors, including state and federal

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siting and permitting approvals. Currently, we are developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects. For further information, see "Business Development and Capital Expenditures - Offshore Wind Business" included in this Management’s Discussion and Analysis.

Pension and PBOP plan assets and obligations are remeasured annually using a December 31^st^ measurement date. Our future pension and PBOP obligations are highly dependent on benefit plan asset returns, interest rates, and discount rates, all of which could be materially impacted by the extended economic slowdown. Should these financial metrics be negatively impacted by COVID-19 as of December 31, 2020, it could result in the underperformance of our pension and PBOP plan investments, an increase in pension and PBOP obligations and employee benefit plan costs, and in a minimum pension funding requirement due by March 31, 2022 for the 2021 Plan year. We continue to monitor federal legislative pension developments that could provide additional pension funding relief. As of the date of our filing, it is difficult to determine whether the pandemic will have a material impact to our future pension and PBOP obligations and plan costs and minimum funding requirements. NSTAR Electric and NSTAR Gas recover qualified pension and PBOP expenses through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year. Our electric transmission companies' rates provide for an annual true-up of estimated to actual costs, which include pension and PBOP expenses.

Earnings Overview

Consolidated:  Below is a summary of our earnings by business, which also reconciles the non-GAAP financial measures of consolidated non-GAAP earnings and EPS, as well as EPS by business, to the most directly comparable GAAP measures of consolidated Net Income Attributable to Common Shareholders and diluted EPS.

For the Three Months Ended March 31,
2020 2019
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share
Net Income Attributable to Common<br><br>Shareholders (GAAP) $ 334.8 $ 1.01 $ 308.7 $ 0.97
Regulated Companies $ 343.4 $ 1.03 $ 315.7 $ 0.99
Eversource Parent and Other Companies (5.1 ) (0.01 ) (7.0 ) (0.02 )
Non-GAAP Earnings $ 338.3 $ 1.02 $ 308.7 $ 0.97
Acquisition-Related Costs (after-tax) ^(1)^ (3.5 ) (0.01 ) — —
Net Income Attributable to Common<br><br>Shareholders (GAAP) $ 334.8 $ 1.01 $ 308.7 $ 0.97

^(1)^ These costs are associated with our pending acquisition of the assets of Columbia Gas of Massachusetts.

Our consolidated earnings also include pre-tax COVID-19 related-charges of $2.1 million incurred in the first quarter of 2020.

Regulated Companies:  Our regulated companies comprise the electric distribution, electric transmission, natural gas distribution and water distribution segments. A summary of our segment earnings and EPS is as follows:

For the Three Months Ended March 31,
2020 2019
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share
Net Income - Regulated Companies $ 343.4 $ 1.03 $ 315.7 $ 0.99
Electric Distribution $ 130.1 $ 0.39 $ 120.1 $ 0.38
Electric Transmission 126.8 0.38 118.2 0.37
Natural Gas Distribution 84.4 0.25 76.5 0.24
Water Distribution 2.1 0.01 0.9 —
Net Income - Regulated Companies $ 343.4 $ 1.03 $ 315.7 $ 0.99

Our electric distribution segment earnings increased $10.0 million in the first quarter of 2020, as compared to the first quarter of 2019, due primarily to base distribution rate increases at CL&P effective May 1, 2019, at NSTAR Electric effective January 1, 2020, and at PSNH effective July 1, 2019, higher earnings from CL&P's capital tracker mechanism due to increased electric system improvements, and lower operations and maintenance expense. The earnings increase was partially offset by higher depreciation expense, higher interest expense, the absence of the first quarter 2019 recognition of carrying charges on PSNH's 2013 through 2016 storm costs approved for recovery, investment loss in 2020, as compared to investment income in 2019 driven by market volatility, and higher property tax expense.

Our electric transmission segment earnings increased $8.6 million in the first quarter of 2020, as compared to the first quarter of 2019, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure.

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Our natural gas distribution segment earnings increased $7.9 million in the first quarter of 2020, as compared to the first quarter of 2019, due primarily to a base distribution rate increase at Yankee Gas effective January 1, 2020 and higher earnings from capital tracker mechanisms due to continued investments in natural gas infrastructure. The earnings increase was partially offset by higher operations and maintenance expense and higher depreciation expense.

Our water distribution segment earnings increased $1.2 million in the first quarter of 2020, compared to the first quarter of 2019 due primarily to higher revenues from Connecticut's capital tracker mechanism due to increased infrastructure improvements and lower depreciation expense.

Eversource Parent and Other Companies:  Eversource parent and other companies had a net loss of $8.6 million, or $0.02 per share, in the first quarter of 2020, compared with a net loss of $7.0 million, or $0.02 per share, in the first quarter of 2019.  The increased loss was due primarily to acquisition costs related to the pending acquisition of the assets of Columbia Gas of Massachusetts of $3.5 million, or $0.01 per share, partially offset by a higher return at Eversource Service as a result of increased investments in property, plant and equipment and lower interest expense.

Liquidity

Cash totaled $47.4 million as of March 31, 2020, compared with $15.4 million as of December 31, 2019.

Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.  Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas and Aquarion Water Company of Connecticut are also parties to a five-year $1.45 billion revolving credit facility, which terminates on December 6, 2024. The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program.

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility, which terminates on December 6, 2024. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.

The amount of borrowings outstanding and available under the commercial paper programs were as follows:

Borrowings Outstanding as of Available Borrowing Capacity as of Weighted-Average Interest Rate as of
March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019
(Millions of Dollars)
Eversource Parent Commercial Paper Program $ 738.4 $ 1,224.9 $ 711.6 $ 225.1 3.38 % 1.98 %
NSTAR Electric Commercial Paper Program 88.0 10.5 562.0 639.5 1.25 % 1.63 %

There were no borrowings outstanding on either the Eversource parent or NSTAR Electric revolving credit facilities as of March 31, 2020 or December 31, 2019.

Amounts outstanding under the commercial paper programs and revolving credit facilities are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time. As a result of the NSTAR Gas long-term debt issuances in May 2020, $25.0 million of the current portion of long-term debt and $165.0 million of commercial paper borrowings under the Eversource parent commercial paper program were classified as Long-Term Debt as of March 31, 2020.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. As of March 31, 2020, there were intercompany loans from Eversource parent to CL&P of $219.0 million, to PSNH of $84.7 million, and to a subsidiary of NSTAR Electric of $38.4 million. As of December 31, 2019, there were intercompany loans from Eversource parent to CL&P of $63.8 million, to PSNH of $27.0 million, and to a subsidiary of NSTAR Electric of $30.3 million. Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets.

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Long-Term Debt: The following table summarizes long-term debt issuances and repayments:

(Millions of Dollars) Issuance/(Repayment) Issue Date or Repayment Date Maturity Date Use of Proceeds for Issuance/<br>Repayment Information
NSTAR Electric:
3.95% 2020 Debentures $ 400.0 March 2020 April 2030 Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes (95.0 ) March 2020 March 2020 Paid at maturity
Other:
Eversource Parent 3.45% Series P Senior Notes 350.0 January 2020 January 2050 Paid short-term borrowings
NSTAR Gas 4.46% Series N First Mortgage Bonds (125.0 ) January 2020 January 2020 Paid at maturity
Yankee Gas 4.87% Series K First Mortgage Bonds (50.0 ) April 2020 April 2020 Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds 75.0 May 2020 May 2025 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds 115.0 May 2020 May 2050 Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes

Long-Term Debt Issuance Authorization: On January 27, 2020, the DPU approved NSTAR Gas' request for authorization to issue up to $270 million in long-term debt through December 31, 2021.

Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $21.6 million of RRB principal payments and $10.3 million of interest payments in the first quarter of 2020 and paid $30.7 million of RRB principal payments and $16.2 million of interest payments in the first quarter of 2019.

Common Share Issuance and Forward Sale Agreement: In June 2019, Eversource completed an equity offering consisting of 5,980,000 common shares issued directly by the Company and 11,960,000 common shares issuable pursuant to a forward sale agreement with an investment bank. Under the forward sale agreement, 11,960,000 common shares were borrowed from third parties and sold by the underwriters. The forward sale agreement allowed Eversource, at its election and prior to May 29, 2020, to physically settle the forward sale agreement by issuing common shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreement (initially, $71.48 per share) or, alternatively, to settle the forward sale agreement in whole or in part through the delivery or receipt of shares or cash. The forward sale price was subject to adjustment daily based on a floating interest rate factor and would decrease in respect of certain fixed amounts specified in the agreement, such as dividends.

Eversource previously issued 6,000,000 common shares under the forward sale agreement in December 2019. On March 23, 2020, Eversource physically settled a portion of the forward sale agreement by delivering 1,500,000 common shares in exchange for net proceeds of $105.7 million. Subsequently, on March 26, 2020, Eversource physically settled the remaining portion of the forward sale agreement by delivering 4,460,000 common shares in exchange for net proceeds of $314.1 million. The forward sale price used to determine the cash proceeds received by Eversource was calculated based on the initial forward sale price of $71.48 per share, as adjusted in accordance with the forward sale agreement.

The 2020 issuances of 5,960,000 common shares resulted in proceeds of $419.8 million, net of issuance costs and were reflected in shareholders' equity and as financing activities on the statement of cash flows.

Issuances of shares under the forward sale agreement are classified as equity transactions. Accordingly, no amounts relating to the forward sale agreement were recorded in the financial statements until settlements took place. Prior to any settlements, the only impact to the financial statements was the inclusion of incremental shares within the calculation of diluted EPS using the treasury stock method. See Note 14, "Earnings Per Share," to the financial statements for information on the forward sale agreement’s impact on the calculation of diluted EPS.

Eversource used the net proceeds received upon the direct issuance of common shares and the net proceeds received upon settlement of the forward sale agreement to repay short-term debt under the commercial paper program, to fund capital spending and clean energy initiatives, and for general corporate purposes.

Cash Flows:  Cash flows provided by operating activities totaled $420.3 million in the first quarter of 2020, compared with $381.4 million in the first quarter of 2019. The increase in operating cash flows was due primarily to the timing of cash collections on our accounts receivables, partially offset by the timing of accounts payable cash payments and lower income tax refunds received in 2020 of $12.2 million.

On May 6, 2020, our Board of Trustees approved a common share dividend payment of $0.5675 per share, payable on June 30, 2020 to shareholders of record as of May 20, 2020. On February 5, 2020, our Board of Trustees approved a common share dividend payment of $0.5675 per share, which was paid on March 31, 2020 to shareholders of record as of March 4, 2020. In the first quarter of 2020, we paid cash dividends of $181.6 million and issued non-cash dividends of $5.9 million in the form of treasury shares, totaling dividends of $187.5 million, compared with cash dividends paid of $169.8 million in the first quarter of 2019.

Eversource issues 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.

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In the first quarter of 2020, CL&P, NSTAR Electric and PSNH paid $69.5 million, $196.5 million, and $22.3 million, respectively, in common stock dividends to Eversource parent.

Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP expense.  In the first quarter of 2020, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $725.5 million, $212.4 million, $247.5 million, and $88.7 million, respectively.

We expect the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with our existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.

Business Development and Capital Expenditures

Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized and deferred portions of pension and PBOP expense (all of which are non-cash factors), totaled $655.7 million in the first quarter of 2020, compared to $603.1 million in the first quarter of 2019.  These amounts included $55.4 million and $49.3 million in the first quarter of 2020 and 2019, respectively, related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company.

Electric Transmission Business:  Our consolidated electric transmission business capital expenditures increased by $3.6 million in the first quarter of 2020, as compared to the first quarter of 2019.  A summary of electric transmission capital expenditures by company is as follows:

For the Three Months Ended March 31,
(Millions of Dollars) 2020 2019
CL&P $ 84.8 $ 112.2
NSTAR Electric 76.7 59.3
PSNH 46.3 27.7
NPT — 5.0
Total Electric Transmission Segment $ 207.8 $ 204.2

Eastern Massachusetts Transmission Projects: These projects consist of a portfolio of electric transmission upgrades in southern New Hampshire, northern Massachusetts and continuing into the greater Boston metropolitan area, of which 28 upgrades are in Eversource's service territory (two in New Hampshire and 26 in Massachusetts). The two New Hampshire upgrades, including the Merrimack Valley Reliability Project, have been placed in service, and 20 Massachusetts upgrades have been placed in service. On December 17, 2019, the Massachusetts Siting Board issued a favorable decision on the Sudbury-Hudson Reliability Project, the last project requiring such approval. On January 17, 2020, the Town of Sudbury and Protect Sudbury, a community group, appealed the decision to the Massachusetts Supreme Judicial Court and oral arguments were conducted on March 17, 2020. The majority of the remaining upgrades are under construction and are expected to be placed in service in 2021.  We estimate our portion of the investment will be approximately $750 million, of which $449.9 million has been spent and capitalized through March 31, 2020.

Hartford-Area Transmission Projects:  These projects consist of 27 projects in the Hartford, Connecticut area with an expected investment of approximately $350 million. As of March 31, 2020, 25 projects have been placed in service, and two projects are in active construction and are expected to be placed in service in the fourth quarter of 2020.  As of March 31, 2020, CL&P had spent and capitalized $281.9 million in costs associated with these projects.

Seacoast Reliability Project:  The Seacoast Reliability Project consists of a 13-mile, 115kV transmission line within several New Hampshire communities, using a combination of overhead, underground and underwater line designs to help meet the growing demand for electricity in the Seacoast region. On December 10, 2018, the NHSEC indicated its unanimous approval of the project, and subsequently issued its written decision on January 31, 2019. On May 13, 2019, two appeals of the NHSEC's approval orders were filed with the New Hampshire Supreme Court. On December 17, 2019, the Conservation Law Foundation requested the Court to withdraw its appeal, and the Court granted the request on December 20, 2019. For the pending appeal by a small group of property owners located adjacent to the project, oral arguments were conducted on March 10, 2020. This project is under construction and is scheduled to be completed in the second quarter of 2020. We estimate the investment will be approximately $125 million, of which PSNH had spent and capitalized $103.7 million in costs through March 31, 2020.

All project costs are anticipated to be fully recoverable through transmission rates.

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Distribution Business:  A summary of distribution capital expenditures is as follows: For the Three Months Ended March 31,
(Millions of Dollars) CL&P NSTAR Electric PSNH Total Electric Natural Gas Water Total
2020
Basic Business $ 43.7 $ 59.6 $ 9.8 $ 113.1 $ 20.0 $ 1.9 $ 135.0
Aging Infrastructure 44.1 54.4 22.5 121.0 67.3 15.8 204.1
Load Growth and Other 15.0 24.0 3.1 42.1 10.8 0.1 53.0
Total Distribution 102.8 138.0 35.4 276.2 98.1 17.8 392.1
Solar — 0.4 — 0.4 — — 0.4
Total $ 102.8 $ 138.4 $ 35.4 $ 276.6 $ 98.1 $ 17.8 $ 392.5
2019
Basic Business $ 33.3 $ 66.8 $ 8.1 $ 108.2 $ 11.2 $ 2.1 $ 121.5
Aging Infrastructure 45.2 43.0 25.4 113.6 53.2 13.0 179.8
Load Growth and Other 14.3 17.4 3.9 35.6 10.0 0.4 46.0
Total Distribution 92.8 127.2 37.4 257.4 74.4 15.5 347.3
Solar — 2.3 — 2.3 — — 2.3
Total $ 92.8 $ 129.5 $ 37.4 $ 259.7 $ 74.4 $ 15.5 $ 349.6

For the electric distribution business, basic business includes the purchase of meters, tools, vehicles, information technology, transformer replacements, equipment facilities, and the relocation of plant.  Aging infrastructure relates to reliability and the replacement of overhead lines, plant substations, underground cable replacement, and equipment failures.  Load growth and other includes requests for new business and capacity additions on distribution lines and substation additions and expansions.

For the natural gas distribution business, basic business addresses daily operational needs including meters, pipe relocations due to public works projects, vehicles, and tools.  Aging infrastructure projects seek to improve the reliability of the system through enhancements related to cast iron and bare steel replacement of main and services, corrosion mediation, and station upgrades.  Load growth and other reflects growth in existing service territories including new developments, installation of services, and expansion.

For the water distribution business, basic business addresses daily operational needs including periodic meter replacement, water main relocation, facility maintenance, and tools. Aging infrastructure relates to reliability and the replacement of water mains, regulators, storage tanks, pumping stations, wellfields, reservoirs, and treatment facilities. Load growth and other reflects growth in our service territory, including improvements of acquisitions, installation of new services, and interconnections of systems.

Pending Acquisition of Assets of Columbia Gas of Massachusetts: On February 26, 2020, Eversource and NiSource Inc. entered into an asset purchase agreement (the Agreement) pursuant to which Eversource would acquire certain assets that comprise NiSource’s local natural gas distribution business in Massachusetts, which is doing business as Columbia Gas of Massachusetts (CMA). The purchase price of $1.1 billion includes a target working capital amount that is subject to adjustment to reflect actual working capital as of the closing date. Eversource would acquire approximately 330,000 residential, commercial, and industrial natural gas customers, as well as over 5,000 miles of natural gas distribution pipeline across more than 60 communities in Massachusetts.

The liabilities to be assumed by Eversource under the Agreement specifically exclude any liabilities (past or future) arising out of, or related to, the fires and explosions that occurred on September 13, 2018 in Lawrence, Andover and North Andover, Massachusetts related to the delivery of natural gas by CMA, including certain subsequent events, all as described and in the DPU's Order on Scope dated December 23, 2019 (D.P.U. 19-141) (the Greater Lawrence Incident or GLI). The liabilities to be assumed also exclude any further emergency events prior to the closing of the acquisition related to the restoration and reconstruction with respect to the GLI, including any losses arising out of, or related to, any litigation, demand, cause of action, claim, suit, investigation, proceeding, indemnification agreements or rights. Eversource is not assuming any of CMA's or NiSource Inc.'s debt.

The transaction requires approval from the DPU, the Maine Public Utilities Commission, the FERC, and the Federal Communications Commission, and it is subject to review under the Hart-Scott-Rodino Act, for which the relevant review period has expired. The resulting rate plan also requires DPU approval. Eversource expects to finance the asset acquisition through a combination of debt and equity issuances in a ratio that is consistent with our current consolidated capital structure. The transaction is expected to close by the end of the third quarter of 2020.

Offshore Wind Business: Our offshore wind business includes ownership interests in North East Offshore and Bay State Wind, which together hold PPAs and contracts for the Revolution Wind, South Fork Wind and Sunrise Wind projects, as well as offshore leases through BOEM. Our offshore wind projects are being developed and constructed through a joint and equal partnership with Ørsted. This partnership also participates in new procurement opportunities for offshore wind energy in the Northeast U.S.

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Eversource has 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. Bay State Wind's separate 300-square-mile ocean lease is located approximately 25 miles south of the coast of Massachusetts adjacent to the North East Offshore area. In aggregate, the Bay State Wind and the North East Offshore lease sites jointly-owned by Eversource and Ørsted could eventually develop at least 4,000 MW of clean, renewable offshore wind energy. As of March 31, 2020, Eversource's total equity investment balance in its offshore wind business was $655.0 million.

Currently we are concluding on final offshore and onshore project designs and advancing the appropriate federal, state and local siting and permitting processes, all of which is competitively sensitive. Subject to finalization of these designs and processes, all of which are subject to change and modification as a result of our investment decisions, permit approval timelines and final design decisions, we currently expect to make investments in our offshore wind business of approximately $300 million to $400 million during 2020.

The following table provides a summary of the Eversource and Ørsted major projects with announced contracts:

Wind Project State Servicing Size (MW) Term (Years) Price per MWh Pricing Terms Contract Status
Revolution Wind Rhode Island 400 20 $98.43 Fixed price contract; no price escalation Approved
Revolution Wind Connecticut 304 20 ^(1)^ Fixed price contracts; no price escalation Approved
South Fork Wind New York (LIPA) 90 20 $160.33 2 percent average price escalation Approved
South Fork Wind New York (LIPA) 40 20 $86.25 2 percent average price escalation ^(3)^
Sunrise Wind New York (NYSERDA) 880 25 $110.37 ^(2)^ Fixed price contract; no price escalation Approved
^(1)^ The pricing for the Revolution Wind contracts in Connecticut has not been publicly disclosed.
--- ---
^(2)^ Index Offshore Wind Renewable Energy Certificate (OREC) strike price.
--- ---
^(3)^ The Long Island Power Authority (LIPA) agreed to expand the original 20-year PPA from 90 MW to 130 MW through an amendment to the original agreement. Negotiations are currently underway, and a final amendment is expected in the second quarter of 2020.
--- ---

The completion dates for these projects are subject to federal permitting through BOEM, engineering, state siting and permitting in New York and Rhode Island, and finalizing a PPA amendment in New York. Significant delays in the siting and permitting process, including the timing of obtaining BOEM approval and the impact of COVID-19, could adversely impact the timing of these projects' in-service dates. At this time, we are unable to predict the impact of delays on the projects' in-service dates.

Currently, BOEM has indicated it will complete its Cumulative Impact Study as part of the Draft Supplemental Environmental Impact Statement (EIS) for a non-affiliated offshore wind project during the second quarter of 2020. The study is designed to assess the overall environmental impact of all offshore wind projects that are planned to be located in waters off of Rhode Island and Massachusetts.

Federal siting and permitting have commenced for the South Fork Wind project, as it has filed its Construction Operations Plan (COP) application with BOEM. South Fork Wind is designated as a “Covered Project” pursuant to Title 41 of the Fixing America’s Surface Transportation Act (“FAST41”) and a Major Infrastructure Project under Section 3(e) of Executive Order 13807, which provides greater federal attention on meeting the project’s permitting timelines. South Fork Wind previously filed federal and state applications in 2018. Although we have received BOEM's Notice of Intent for the South Fork Wind project (the first important milestone towards receiving the final permit), we have not received a confirmed permit schedule from BOEM outlining when the COP will be received.

On April 8, 2020, the state of New York Administrative Law Judge granted a 10-week delay to the South Fork Wind evidentiary hearing schedule, until September 30, 2020, due to ongoing COVID-19 work and travel restrictions. In addition, field work for South Fork Wind and Sunrise Wind in New York has been suspended due to COVID-19 restrictions. Currently, we are developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects, which include delays in New York state for performing offshore site investigations, and onshore environmental and geotechnical surveys, in order to limit the impact and risk to our project siting and permit filing timelines.

Given that we have not received a confirmed permit schedule from BOEM outlining when the South Fork Wind COP will be received and that BOEM has not completed its Cumulative Impact Study, combined with impacts from the COVID-19 related shut-downs in New York, these impacts will very likely delay the in-service date of the South Fork Wind project to beyond the projected end of 2022 in-service date.

Revolution Wind filed its COP application with BOEM in March 2020 and will seek FAST41 designation by the end of 2020. Sunrise Wind's COP filing is planned in 2020. State agencies also will review siting applications for Revolution Wind and Sunrise Wind in New York and Rhode Island, with application filings planned in 2020. For Revolution Wind, we are awaiting BOEM to issue its Notice of Intent, which will outline the timeline for COP approval. For Sunrise Wind, we are currently unable to progress our offshore site surveys due to COVID-19 restrictions, which adversely impacts our COP application process. At this time, for the Revolution Wind and Sunrise Wind projects, we are unable to predict the impact of delays on their projected in-service dates of end of 2023 and end of 2024, respectively.

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FERC Regulatory Matters

FERC ROE Complaints: Four separate complaints were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive (incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.

The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, the FERC set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the Court).

All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of March 31, 2020 and December 31, 2019. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of March 31, 2020 and December 31, 2019.

On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.

The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint. Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

If the results of the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods. These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.

On November 21, 2019, FERC issued an order concerning the transmission ROEs for the Midcontinent ISO transmission owners (MISO). In that order, FERC adopted another new methodology for determining base ROEs for MISO, which differed significantly from the methodology and framework set forth in its October 16, 2018 FERC order on the NETOs’ ROE dockets. On December 23, 2019, the NETOs filed a Supplemental Paper Hearing Brief and a Motion to supplement the record in the NETO ROE dockets to respond to the new methodology proposed in the MISO order, as there is uncertainty to whether it may be applied to the NETOs’ cases. On January 21, 2020, the FERC issued an order granting rehearing for further consideration to give the FERC more time to act on the substantive issues of the MISO ROE proceedings. Further changes to the methodology by FERC are possible as a result of the arguments in both the MISO and NETO proceedings.

Given the significant uncertainty relating to the October 2018 FERC order, the November 2019 FERC order to MISO, and the FERC's rehearing of the MISO order, the Company is unable to predict the potential effect of the MISO order on the NETO complaints or the outcome of the four complaints and concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time. Further, the Company cannot reasonably estimate a range of gain or loss for any of the four complaint proceedings.

Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.

A change of 10 basis points to the base ROE used to establish the reserves would impact Eversource's after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods.

FERC Notice of Inquiry on ROE: On March 21, 2019, FERC issued a Notice of Inquiry (NOI) seeking comments from all stakeholders on FERC's policies for evaluating ROEs for electric public utilities, and interstate natural gas and oil pipelines. On June 26, 2019, the NETOs jointly filed comments supporting the methodology established in the FERC’s October 16, 2018 order with minor enhancements going forward. The NETOs jointly filed reply comments in the FERC ROE NOI on July 26, 2019. At this time, Eversource cannot predict how this proceeding will affect its transmission ROEs.

FERC Notice of Inquiry and Proposed Rulemaking on Transmission Incentives: On March 21, 2019, FERC issued a NOI seeking comments on FERC's policies for implementing electric transmission incentives. On June 26, 2019, Eversource filed comments requesting that FERC retain policies that have been effective in encouraging new transmission investment and remain flexible enough to attract investment in new and emerging transmission technologies. Eversource filed reply comments on August 26, 2019. On March 20, 2020, FERC issued a Notice of Proposed Rulemaking (NOPR) on transmission incentives. The NOPR intends to revise FERC’s electric transmission incentive policies to reflect competing uses of transmission due to generation resource mix, technological innovation and shifts in load patterns. FERC proposes to grant transmission incentives based on measurable project economics and reliability benefits to consumers rather than its current project risks and

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challenges framework.  Comments from interested parties on the NOPR are due July 1, 2020. At this time, Eversource cannot predict how these proceedings will affect its transmission incentives.

FERC Transmission Rate Settlement: On December 28, 2015, FERC initiated a proceeding to review the NETOs' regional and local transmission formula rates due to a lack of transparency, finding that the formula rates appeared to lack sufficient details to determine how costs are derived and recovered in rates. This proceeding was set for hearing but held in abeyance to provide time for settlement judge procedures. On August 17, 2018, a signed Settlement Agreement between twenty-eight parties, including all six New England state regulatory commissions, the NETOs (including CL&P, NSTAR Electric and PSNH) and other settling parties, was filed at the FERC. The Settlement Agreement included, among other things, a new formula rate template in which all regional and local transmission revenue requirements will be determined through a single formula rate. The Settlement Agreement was contested by a group of municipal entities and the FERC Trial Staff. On May 22, 2019, FERC rejected the Settlement Agreement and remanded the proceeding for hearings. The parties have been engaged in further settlement negotiations and reached an agreement in principle on October 22, 2019.  The FERC Chief Administrative Law Judge has approved three suspensions of the schedule for the NETOs to review the terms with other active parties and finalize the settlement. The procedural schedule has been suspended to June 8, 2020.

U.S. Federal Corporate Income Taxes: Effective January 1, 2018, the local transmission service rates were updated to reflect the lower U.S. federal corporate income tax rate that resulted from the Tax Cuts and Jobs Act. On June 28, 2018, FERC granted a one-time waiver of tariff provisions related to the federal corporate income tax rate so that, effective June 1, 2018, the regional transmission service rates also reflected the reduced federal corporate income tax rate of 21 percent. The local and regional transmission service rates do not currently reflect amortization of excess ADIT (EDIT) balances that resulted from the Act. On November 15, 2018, FERC issued a Policy Statement and a separate Notice of Proposed Rulemaking addressing accounting and rate issues related to ADIT changes resulting from the Act. On November 21, 2019, FERC issued its final rule requiring public utilities with transmission formula rates to make adjustments to ADIT and EDIT. On February 24, 2020, FERC granted Eversource’s motion for extension to July 31, 2020 to submit compliance filings.

Regulatory Developments and Rate Matters

Electric, Natural Gas and Water Utility Base Distribution Rates: The regulated companies’ distribution rates are set by their respective state regulatory commissions, and their tariffs include mechanisms for periodically adjusting their rates for the recovery of specific incurred costs. Other than as described below, for the first quarter of 2020, changes made to the regulated companies’ rates did not have a material impact on their earnings, financial position, or cash flows.  For further information, see "Financial Condition and Business Analysis – Regulatory Developments and Rate Matters" included in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource 2019 Form 10-K.

COVID-19 Regulatory Dockets: Beginning in March 2020, in Connecticut, Massachusetts and New Hampshire, there is presently a moratorium on disconnections of residential and commercial customers for non-payment of utility service.  Our operating companies have also eliminated late payment charges. In general, these moratoriums will remain in place until the declared COVID-19 state of emergency is lifted by each respective state Governor or further direction is provided by the respective state regulatory commissions.

In Connecticut, PURA opened a docket to address COVID-19 developments, including issuing an order on March 18, 2020 and April 29, 2020 that authorized electric, natural gas and water utilities to establish a regulatory asset for COVID-19 uncollectible customer receivable expenses and related costs.  PURA’s order on April 29, 2020 also allowed the inclusion of working capital costs in the regulatory asset, and authorized electric, natural gas and water utilities to establish a payment plan program designed to assist any customer who requests financial assistance during the COVID-19 pandemic. Additionally, on April 17, 2020, PURA issued a letter to Connecticut’s Congressional delegation explaining that reliable utility services are critical services paramount to the economic performance of the state and advocated in favor of directing stimulus funds to regulated public service companies that would be used to directly offset uncollectible customer receivable expenses.

In Massachusetts, on March 31, 2020, the DPU issued a request for comments on, among other things, best practices that regulated utilities should utilize when customer shut-off activities resume.  On April 17, 2020, a coalition of electric, natural gas and water utilities submitted a comprehensive response to the DPU that would enable the state’s utilities to provide flexible payment arrangements to those customers who need financial assistance, while simultaneously maintaining the financial integrity necessary to continue to conduct and finance utility operations through appropriate ratemaking treatment and the establishment of a regulatory asset for COVID-19 related expenses, including uncollectible customer receivable expenses, among other proposals.

Consistent with the above-described developments in Connecticut and Massachusetts, Eversource is working closely with the NHPUC on COVID-19 developments impacting our New Hampshire electric and water utilities, including the proposed establishment of flexible payment plan options for those customers who need financial assistance in order to mitigate the size of the uncollectible customer receivable balances that would be borne by all customers in the future.

Massachusetts:

NSTAR Electric Distribution Rates: As part of an inflation-based mechanism, NSTAR Electric submitted its second annual Performance Based Rate Adjustment filing on September 16, 2019 and the DPU approved a $33.6 million increase to base distribution rates on December 19, 2019 for effect on January 1, 2020.

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NSTAR Gas Rate Case: On November 8, 2019, NSTAR Gas filed its application with the DPU, which sought a distribution rate increase of $38.0 million. As part of this filing, NSTAR Gas also proposed to continue its ongoing Gas System Enhancement Program (GSEP), include the GSEP investments since 2015 into base rates, and implement a performance-based ratemaking plan. A final decision from the DPU is expected by October 30, 2020, with rates effective November 1, 2020.

New Hampshire:

Distribution Rates: On April 26, 2019, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase, effective July 1, 2019. On June 27, 2019, the NHPUC approved a settlement agreement that was reached by PSNH, the NHPUC Staff, the Office of the Consumer Advocate, and another settling party, to implement a temporary annual base distribution rate increase of $28.3 million. Although new rates were implemented on August 1, 2019 to customers, the provisions of the temporary base distribution rate increase were effective July 1, 2019. The settlement agreement also 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, which is included in the temporary rate increase.

On May 28, 2019, PSNH filed an application with the NHPUC for a permanent increase in base distribution rates of approximately $70 million, effective July 1, 2020, which includes the temporary rate increase request.  The temporary rates are subject to reconciliation based on the outcome of the permanent rate case now before the NHPUC. The NHPUC is permitted up to twelve months to adjudicate the permanent rate application from the date of filing.  On April 24, 2020, Governor Sununu issued an emergency order, which extends the maximum adjudication period by six months, for a maximum of 18 months. A decision by the NHPUC is now expected in the fourth quarter of 2020.  Temporary rates will remain in effect with a reconciliation of permanent rates retroactive to July 1, 2019 once permanent rates are set.

Draft Audit Report of Generation Asset Divestiture-Related Costs: On May 4, 2020, the NHPUC Audit Staff issued a draft report on the audit of PSNH’s generation asset divestiture-related costs and resulting securitized and stranded costs.  Responses are due no later than May 12, 2020, with a final NHPUC audit report expected on May 15, 2020.  We are currently evaluating the NHPUC audit findings and continue to believe the amounts deferred are probable of recovery.

Legislative and Policy Matters

Federal: On March 27, 2020, President Trump signed the $2.2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act.  Among other provisions, the CARES Act provides for loans and other benefits to small and large businesses, expanded unemployment insurance, direct payments to those with wages middle-income and below, new appropriations funding for health care and other priorities, and tax changes like deferrals of employer payroll tax liabilities coupled with an employee retention tax credit and rollbacks of Tax Cuts and Jobs Act limitations on net operating losses and certain business interest limitation.  For the year ended December 31, 2020, we expect an estimated cash flow benefit of about $35 million related to the deferral of employer payroll tax liability provision.  We will continue to evaluate the CARES Act impact; however, other than the cash flow benefit described, we do not expect the CARES Act to have a material impact.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and, at times, difficult, subjective or complex judgments.  Changes in these estimates, assumptions and judgments, in and of themselves, could materially impact our financial position, results of operations or cash flows.  Our management communicates to and discusses with the Audit Committee of our Board of Trustees significant matters relating to critical accounting policies.  Our critical accounting policies that we believed were the most critical in nature were reported in the Eversource 2019 Form 10-K.  There have been no material changes with regard to these critical accounting policies.

Other Matters

Accounting Standards:  For information regarding new accounting standards, see Note 1B, "Summary of Significant Accounting Policies – Accounting Standards," to the financial statements.

Contractual Obligations and Commercial Commitments:  There have been no material contractual obligations identified and no material changes

with regard to the contractual obligations and commercial commitments previously disclosed in the Eversource 2019 Form 10-K.

Web Site:  Additional financial information is available through our website at www.eversource.com.  We make available through our website a link to the SEC's EDGAR website (http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site Eversource's, CL&P's, NSTAR Electric's and PSNH's combined Annual Reports on Form 10-K, combined Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be reviewed.  Information contained on the Company's website or that can be accessed through the website is not incorporated into and does not constitute a part of this combined Quarterly Report on Form 10-Q.

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RESULTS OF OPERATIONS – EVERSOURCE ENERGY AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for Eversource for the three months ended March 31, 2020 and 2019 included in this combined Quarterly Report on Form 10-Q:

For the Three Months Ended March 31,
(Millions of Dollars) 2020 2019 Increase/<br>(Decrease)
Operating Revenues $ 2,373.7 $ 2,415.8 $ (42.1 )
Operating Expenses:
Purchased Power, Fuel and Transmission 876.5 974.9 (98.4 )
Operations and Maintenance 342.1 335.6 6.5
Depreciation 236.2 214.9 21.3
Amortization 49.8 71.0 (21.2 )
Energy Efficiency Programs 148.4 140.1 8.3
Taxes Other Than Income Taxes 181.5 184.6 (3.1 )
Total Operating Expenses 1,834.5 1,921.1 (86.6 )
Operating Income 539.2 494.7 44.5
Interest Expense 134.7 131.7 3.0
Other Income, Net 24.1 31.0 (6.9 )
Income Before Income Tax Expense 428.6 394.0 34.6
Income Tax Expense 91.9 83.4 8.5
Net Income 336.7 310.6 26.1
Net Income Attributable to Noncontrolling Interests 1.9 1.9 —
Net Income Attributable to Common Shareholders $ 334.8 $ 308.7 $ 26.1

Operating Revenues

Sales Volumes: A summary of our retail electric GWh sales volumes, our firm natural gas MMcf sales volumes, and our water MG sales volumes, and percentage changes, is as follows:

Electric Firm Natural Gas Water
Sales Volumes (GWh) Percentage<br>Decrease Sales Volumes (MMcf) Percentage<br>Decrease Sales Volumes (MG) Percentage<br>Decrease
Three Months Ended March 31: 2020 2019 2020 2019 2020 2019
Traditional 1,906 1,968 (3.2 )% — — — % 434 451 (3.8 )%
Decoupled and Special Contracts ^(1)^ 10,465 11,183 (6.4 )% 39,062 45,376 (13.9 )% 4,372 4,378 (0.1 )%
Total Sales Volumes 12,371 13,151 (5.9 )% 39,062 45,376 (13.9 )% 4,806 4,829 (0.5 )%
^(1)^ Special contracts are unique to Yankee Gas natural gas distribution customers who take service under such an arrangement and generally specify the amount of distribution revenue to be paid to Yankee Gas regardless of the customers' usage.
--- ---

Weather, fluctuations in energy supply costs, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage and water consumption.  Industrial sales volumes are less sensitive to temperature variations than residential and commercial sales volumes.  In our service territories, weather impacts both electric and water sales volumes during the summer and both electric and natural gas sales volumes during the winter; however, natural gas sales volumes are more sensitive to temperature variations than electric sales volumes.  Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur.

Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table above).  For CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas and our Connecticut water distribution business, fluctuations in retail sales volumes do not materially impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms ("Decoupled" in the table above).  These distribution revenues are decoupled from their customer sales volumes, which breaks the relationship between sales volumes and revenues recognized.

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Operating Revenues: Operating Revenues by segment increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, as follows:

(Millions of Dollars) Three Months Ended
Electric Distribution $ (28.6 )
Natural Gas Distribution (20.3 )
Electric Transmission 29.2
Water Distribution 1.4
Other 36.5
Eliminations (60.3 )
Total Operating Revenues $ (42.1 )

Electric and Natural Gas Distribution Revenues:

Base Distribution Revenues:

• Base electric distribution revenues increased $31.8 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the impact of CL&P's base distribution rate increase effective May 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings, an NSTAR Electric base distribution rate increase effective January 1, 2020, and a PSNH temporary base distribution rate increase effective July 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.
• Base natural gas distribution revenues increased $8.6 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to a base distribution rate increase at Yankee Gas effective January 1, 2020.
--- ---

Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings.  However, tracked revenues do include certain incentives earned, return on rate base, and carrying charges that are billed in rates to customers, which do impact earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply and natural gas supply procurement and other energy-related costs, electric retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), and additionally for NSTAR Electric, pension and PBOP benefits and net metering for distributed generation. Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties.

Tracked distribution revenues increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

Electric Distribution Natural Gas Distribution
(Millions of Dollars) Three Months Ended Three Months Ended
Retail Tariff Tracked Revenues:
Energy supply procurement $ (111.0 ) $ (27.9 )
Retail transmission (13.3 ) N/A
Other distribution tracking mechanisms 12.4 10.8
Wholesale Market Sales Revenue 39.5 (8.5 )

The decrease in energy supply procurement within electric distribution was driven primarily by lower average sales volumes and lower average prices. The increase in wholesale market sales revenue within electric distribution was due primarily to a new zero-carbon PPA entered into by CL&P in 2019, as required by regulation, from which the energy purchased from Millstone Nuclear Power Station (Millstone) was sold into the market beginning in the fourth quarter of 2019.

Electric Transmission Revenues:  Electric transmission revenues increased $29.2 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to continued investment in our transmission infrastructure.

Other Revenues and Eliminations: Other revenues primarily include the revenues of Eversource's service company, most of which are eliminated in consolidation. Eliminations are also primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business.

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Purchased Power, Fuel and Transmission expense includes costs associated with purchasing electricity and natural gas on behalf of our customers.  These electric and natural gas supply costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs).  Purchased Power, Fuel and Transmission expense decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

(Millions of Dollars) Three Months Ended
Electric Distribution $ (23.9 )
Natural Gas Distribution (34.6 )
Transmission (14.3 )
Eliminations (25.6 )
Total Purchased Power, Fuel and Transmission $ (98.4 )

The decrease in purchased power expense at the electric distribution business for the three months ended March 31, 2020, as compared to the same period in 2019, was driven primarily by lower average sales volumes and lower average prices associated with the procurement of energy supply, partially offset by the impact of energy purchases from the new Millstone PPA. The decrease in natural gas supply costs at our natural gas distribution business for the three months ended March 31, 2020, as compared to the same period in 2019, was due primarily to lower average sales volumes and prices.

The decrease in transmission costs for the three months ended March 31, 2020, as compared to the same period in 2019, was primarily the result of a decrease in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers, and a decrease in costs billed by ISO-NE that support regional grid investments. This was partially offset by an increase in Local Network Service charges, which reflects the cost of transmission service provided by Eversource over our local transmission network.

Operations and Maintenance expense includes tracked costs and costs that are part of base electric, natural gas and water distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following: (Millions of Dollars) Three Months<br><br>Ended
Base Electric Distribution (Non-Tracked Costs):
Storm Restoration Costs $ (8.6 )
Employee-related expenses, including labor and benefits (2.4 )
Operations-related expenses, including vegetation management, vehicles, and outside services 0.5
Shared corporate costs (including computer software depreciation at Eversource Service) 5.2
Other non-tracked operations and maintenance 3.4
Total Base Electric Distribution (Non-Tracked Costs) (1.9 )
Base Natural Gas Distribution (Non-Tracked Costs) 1.2
Water Distribution (0.3 )
Tracked Costs (Electric Distribution, Electric Transmission and Natural Gas Distribution) - Increase due primarily to higher electric transmission expenses and employee-related costs 10.7
Other and eliminations:
Eversource Parent and Other Companies - other operations and maintenance 26.5
Acquisition costs related to our planned purchase of the assets of CMA 4.9
Eliminations (34.6 )
Total Operations and Maintenance $ 6.5

Depreciation expense increased for the three months ended March 31, 2020, as compared to the same period in 2019, due to higher utility plant in service balances.

Amortization expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms, and the amortization of certain costs as those costs are collected in rates.  This deferral adjusts expense to match the corresponding revenues. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the deferral of energy supply and energy-related costs and an increase in the recovery of PSNH storm costs.

Energy Efficiency Programs expense increased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to higher spending for CL&P's and PSNH's energy efficiency programs, partially offset by a decrease in spending on certain large energy efficiency projects in 2020 compared to 2019 at NSTAR Electric due to timing. The costs for the majority of the state energy policy initiatives and expanded energy efficiency programs are recovered from customers in rates and have no impact on earnings.

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Taxes Other Than Income Taxes expense decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to a decrease of $10.7 million related to CL&P's remittance of energy efficiency funds to the State of Connecticut. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. The decrease is partially offset by an increase in property taxes as a result of higher utility plant balances.

Interest Expense increased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to an increase in interest on long-term debt as a result of new debt issuances ($6.8 million). Partially offsetting this increase was an increase in AFUDC related to debt funds and other capitalized interest ($3.1 million) and a decrease in interest on notes payable ($2.2 million).

Other Income, Net decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the absence in 2020 of the recognition of the equity component of the carrying charges related to PSNH storm costs recorded in interest income in 2019 ($5.2 million), and investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($5.5 million). Partially offsetting these decreases was an increase related to pension, SERP and PBOP non-service income components ($5.3 million),

Income Tax Expense increased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to higher pre-tax earnings ($7.3 million), higher state taxes ($4.5 million), and items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($3.1 million), partially offset by an increase in share-based payment excess tax benefits ($4.8 million) and an increase in amortization of EDIT ($1.6 million).

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RESULTS OF OPERATIONS –

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

The following provides the amounts and variances in operating revenues and expense line items in the statements of income for CL&P, NSTAR Electric and PSNH for the three months ended March 31, 2020 and 2019 included in this combined Quarterly Report on Form 10-Q:

For the Three Months Ended March 31,
CL&P NSTAR Electric PSNH
(Millions of Dollars) 2020 2019 Increase/<br>(Decrease) 2020 2019 Increase/<br><br>(Decrease) 2020 2019 Increase/<br><br>(Decrease)
Operating Revenues $ 899.7 $ 849.2 $ 50.5 $ 733.8 $ 797.6 $ (63.8 ) $ 276.4 $ 276.4 $ —
Operating Expenses:
Purchased Power and Transmission 374.7 319.8 54.9 242.4 330.1 (87.7 ) 94.1 113.5 (19.4 )
Operations and Maintenance 135.6 130.6 5.0 122.3 113.0 9.3 47.1 52.6 (5.5 )
Depreciation 78.4 73.3 5.1 78.3 72.6 5.7 24.3 22.9 1.4
Amortization of Regulatory Assets, Net 6.6 35.7 (29.1 ) 27.0 22.6 4.4 20.1 13.7 6.4
Energy Efficiency Programs 35.5 26.0 9.5 68.7 76.7 (8.0 ) 9.4 6.7 2.7
Taxes Other Than Income Taxes 83.0 92.0 (9.0 ) 48.8 44.8 4.0 19.8 17.3 2.5
Total Operating Expenses 713.8 677.4 36.4 587.5 659.8 (72.3 ) 214.8 226.7 (11.9 )
Operating Income 185.9 171.8 14.1 146.3 137.8 8.5 61.6 49.7 11.9
Interest Expense 37.8 35.8 2.0 30.9 27.9 3.0 14.5 14.4 0.1
Other Income, Net 1.9 3.9 (2.0 ) 12.2 11.1 1.1 3.2 7.0 (3.8 )
Income Before Income Tax Expense 150.0 139.9 10.1 127.6 121.0 6.6 50.3 42.3 8.0
Income Tax Expense 31.3 29.4 1.9 27.2 27.0 0.2 10.7 9.5 1.2
Net Income $ 118.7 $ 110.5 $ 8.2 $ 100.4 $ 94.0 $ 6.4 $ 39.6 $ 32.8 $ 6.8

Operating Revenues

Sales Volumes: A summary of our retail electric GWh sales volumes is as follows:

For the Three Months Ended March 31,
2020 2019 Decrease Percentage Decrease
CL&P 4,941 5,350 (409 ) (7.6 )%
NSTAR Electric 5,524 5,833 (309 ) (5.3 )%
PSNH 1,906 1,968 (62 ) (3.2 )%

Fluctuations in retail electric sales volumes at PSNH impact earnings.  For CL&P and NSTAR Electric, fluctuations in retail electric sales volumes do not impact earnings due to their respective regulatory commission-approved distribution revenue decoupling mechanisms.

Operating Revenues: Operating Revenues, which consist of base distribution revenues and tracked revenues further described below, increased $50.5 million at CL&P, decreased $63.8 million at NSTAR Electric and was unchanged at PSNH, for the three months ended March 31, 2020, as compared to the same period in 2019.

Base Distribution Revenues:

• CL&P's distribution revenues increased $13.4 million due primarily to the impact of its base distribution rate increase effective May 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.
• NSTAR Electric's distribution revenues increased $7.6 million due primarily to the impact of its base distribution rate increase effective January 1, 2020.
--- ---
• PSNH's distribution revenues increased $10.8 million due primarily to the impact of its temporary base distribution rate increase effective July 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.
--- ---

Tracked Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings.  However, tracked revenues do include certain incentives earned, return on rate base, and carrying charges that are billed in rates to customers, which do impact earnings. Costs recovered through cost tracking mechanisms include, among others, energy supply procurement and other energy-related costs, retail transmission charges, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), and additionally for NSTAR Electric, pension and PBOP benefits and net metering for distributed generation.  Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market and the sale of RECs to various counterparties.

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Tracked revenues increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

(Millions of Dollars) CL&P NSTAR Electric PSNH
Retail Tariff Tracked Revenues:
Energy supply procurement $ (40.4 ) $ (57.1 ) $ (13.5 )
Retail transmission (10.5 ) (4.9 ) 2.1
Other distribution tracking mechanisms 30.4 (14.7 ) (3.3 )
Wholesale Market Sales Revenue 51.0 (10.0 ) (1.5 )

The decrease in energy supply procurement reflects both lower average sales volumes and lower average prices for the three months ended March 31, 2020, as compared to the same period in 2019.

Revenues from CL&P's other distribution tracking mechanisms include higher earnings from its capital tracker mechanism due to increased electric system improvements. CL&P's wholesale market sales revenue increased due primarily to energy sold in the wholesale market resulting from energy purchased from the new Millstone PPA.

Transmission Revenues: Transmission revenues increased $11.4 million at CL&P, $12.3 million at NSTAR Electric, and $5.5 million at PSNH for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to continued investment in our transmission infrastructure.

Eliminations: Eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business. The impact of eliminations decreased revenues by $5.5 million at CL&P, $8.0 million at NSTAR Electric and $0.4 million at PSNH for the three months ended March 31, 2020, as compared to the same period in 2019.

Purchased Power and Transmission expense includes costs associated with purchasing electricity on behalf of CL&P, NSTAR Electric and PSNH's customers.  These energy supply costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). Purchased Power and Transmission expense increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

(Millions of Dollars) CL&P NSTAR Electric PSNH
Purchased Power Costs $ 71.2 $ (74.7 ) $ (20.4 )
Transmission Costs (10.8 ) (4.9 ) 1.4
Eliminations (5.5 ) (8.1 ) (0.4 )
Total Purchased Power and Transmission $ 54.9 $ (87.7 ) $ (19.4 )

Purchased Power Costs: Included in purchased power costs are the costs associated with providing electric generation service supply to all customers who have not migrated to third party suppliers and the cost of energy purchase contracts, as required by regulation.

• The increase at CL&P was due primarily to the new Millstone PPA energy purchases, partially offset by lower average sales volumes and lower average prices associated with the procurement of energy supply.
• The decrease at both NSTAR Electric and PSNH was due primarily to lower average sales volumes of power procured on behalf of our customers, as well as lower average prices associated with the procurement of energy supply.
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Transmission Costs: Included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generation facilities to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.

• The decrease in transmission costs at CL&P and NSTAR Electric was due primarily to a reduction to the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers and a decrease in costs billed by ISO-NE that support regional grid investments. This was partially offset by an increase in Local Network Service charges, which reflects the cost of transmission service provided by Eversource over our local transmission network.
• The increase in transmission costs at PSNH was primarily the result of an increase in Local Network Service charges. This was partially offset by a decrease in costs billed by ISO-NE that support regional grid investments.
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54

Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs).  Operations and Maintenance expense increased/(decreased) for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

(Millions of Dollars) CL&P NSTAR Electric PSNH
Base Electric Distribution (Non-Tracked Costs):
Storm restoration costs $ (2.4 ) $ (4.4 ) $ (1.8 )
Employee-related expenses, including labor and benefits 0.2 (3.0 ) 0.4
Operations-related expenses, including vegetation management, vehicles, and outside services 3.7 0.8 (4.0 )
Shared corporate costs (including computer software depreciation at Eversource Service) 2.1 2.4 0.7
Other non-tracked operations and maintenance (2.1 ) 4.3 1.2
Total Base Electric Distribution (Non-Tracked Costs) 1.5 0.1 (3.5 )
Tracked Costs:
Transmission expenses (0.1 ) 4.2 (0.9 )
Other tracked operations and maintenance 3.6 5.0 (1.1 )
Total Tracked Costs 3.5 9.2 (2.0 )
Total Operations and Maintenance $ 5.0 $ 9.3 $ (5.5 )

Depreciation increased for the three months ended March 31, 2020, as compared to the same period in 2019, for CL&P, NSTAR Electric and PSNH due to higher net plant in service balances.

Amortization of Regulatory Assets, Net expense includes the deferral of energy supply, energy-related costs and other costs that are included in certain regulatory-approved cost tracking mechanisms, and the amortization of certain costs as those costs are collected in rates. This deferral adjusts expense to match the corresponding revenues. Energy supply and energy-related costs are recovered from customers in rates and have no impact on earnings. Amortization of Regulatory Assets, Net increased/decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

• The decrease at CL&P was driven primarily by the deferral of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.
• The increase at NSTAR Electric was driven primarily by the deferral of energy supply and energy-related costs, and an increase in the recovery of costs associated with low-income customer programs.
--- ---
• The increase at PSNH was due primarily to the deferral of energy supply and energy-related costs, and an increase in storm cost recovery.
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Energy Efficiency Programs expense includes costs of various state energy policy initiatives and expanded energy efficiency programs that are recovered from customers in rates, most of which have no impact on earnings. Energy Efficiency Programs expense increased/decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

• The increase at CL&P and PSNH was due to higher spending for energy efficiency programs.
• The decrease at NSTAR Electric was due to the timing of spending on certain large energy efficiency projects in 2020, as compared to 2019.
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Taxes Other Than Income Taxes increased/decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

• The decrease at CL&P was related to a $10.7 million decrease in the remittance of energy efficiency funds to the State of Connecticut. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. The decrease was partially offset by higher property taxes as a result of higher utility plant balances.
• The increases at NSTAR Electric and PSNH were due to higher property taxes as a result of higher utility plant balances.
--- ---

Interest Expense increased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

• The increase at CL&P was due to higher interest on long-term debt ($3.5 million), partially offset by a decrease in interest expense on regulatory deferrals ($0.3 million) and an increase in AFUDC related to debt funds ($0.4 million).
• The increase at NSTAR Electric was due to higher interest on long-term debt ($3.1 million).
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55

Other Income, Net increased/decreased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

• The decrease at CL&P was due to investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($5.1 million), partially offset by an increase related to pension, SERP and PBOP non-service income components ($1.7 million) and an increase in AFUDC related to equity funds ($1.3 million).
• The increase at NSTAR Electric was due to an increase in AFUDC related to equity funds ($1.0 million) and an increase related to pension, SERP and PBOP non-service income components ($0.9 million), partially offset by investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($1.0 million).
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• The decrease at PSNH was due to the absence in 2020 of the recognition of the equity component of the carrying charges related to storm costs recorded in interest income in 2019 ($5.2 million) and investment losses in 2020, as compared to investment income in 2019 driven by market volatility ($0.9 million). Partially offsetting these decreases were an increase related to pension, SERP and PBOP non-service income components ($1.4 million) and an increase in AFUDC related to equity funds ($1.3 million).
--- ---

Income Tax Expense increased for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the following:

• The increase at CL&P was due to higher pre-tax earnings ($2.0 million), higher state taxes ($1.0 million) and items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.5 million), partially offset by an increase in share-based payment excess tax benefits ($1.6 million).
• The increase at NSTAR Electric was due to higher pre-tax earnings ($1.2 million), higher state taxes ($0.5 million) and flow-through items and permanent differences ($0.2 million), partially offset by an increase in share-based payment excess tax benefits ($1.7 million).
--- ---
• The increase at PSNH was due to higher pre-tax earnings ($1.9 million) and higher state taxes ($0.5 million), partially offset by an increase in share-based payment excess tax benefits ($0.6 million) and flow-through items and permanent differences ($0.6 million).
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EARNINGS SUMMARY

CL&P's earnings increased $8.2 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the base distribution rate increase effective May 1, 2019, higher earnings from its capital tracker mechanism, and an increase in transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by investment loss in 2020 compared to investment income in 2019 driven by market volatility, higher depreciation expense, higher operations and maintenance expense, and higher interest expense.

NSTAR Electric's earnings increased $6.4 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the base distribution rate increase effective January 1, 2020 and an increase in transmission earnings driven by a higher transmission rate base. The earnings increase was partially offset by higher interest expense, higher depreciation expense, and higher property tax expense.

PSNH's earnings increased $6.8 million for the three months ended March 31, 2020, as compared to the same period in 2019, due primarily to the temporary base distribution rate increase effective July 1, 2019, an increase in transmission earnings driven by a higher transmission rate base, and lower operations and maintenance expense. The earnings increase was partially offset by the absence of the first quarter 2019 recognition of carrying charges on its 2013 through 2016 storm costs approved for recovery.

LIQUIDITY

Cash Flows: CL&P had cash flows provided by operating activities of $132.2 million for the three months ended March 31, 2020, as compared to $198.3 million in the same period of 2019.  The decrease in operating cash flows was due primarily to the timing of cash payments made on our accounts payable. Partially offsetting this unfavorable impact was the timing of cash collections for regulatory tracking mechanisms, the timing of collections on our accounts receivable, the timing of other working capital items and lower income tax refunds received of $5.2 million in 2020.

NSTAR Electric had cash flows provided by operating activities of $61.7 million for the three months ended March 31, 2020, as compared to $137.0 million in the same period of 2019.  The decrease in operating cash flows was due primarily to the timing of cash collections on our accounts receivable, the timing of cash payments made on our accounts payable and other working capital items, and the timing of collections for regulatory tracking mechanisms. In addition, there were lower income tax refunds received of $13.2 million in 2020.

PSNH had cash flows provided by operating activities of $58.5 million for the three months ended March 31, 2020, as compared to $86.1 million in the same period of 2019.  The decrease in operating cash flows was due primarily to income tax payments of $1.2 million in the first quarter of 2020, as compared to income tax refunds received of $20.3 million in the same period in 2019, and the timing of cash payments made on our accounts payable.

For further information on CL&P's, NSTAR Electric's and PSNH's liquidity and capital resources, see "Liquidity" and "Business Development and Capital Expenditures" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Information

Commodity Price Risk Management:  Our regulated companies enter into energy contracts to serve our customers, and the economic impacts of those contracts are passed on to our customers. Accordingly, the regulated companies have no exposure to loss of future earnings or fair values due to these market risk-sensitive instruments.  Eversource's Energy Supply Risk Committee, comprised of senior officers, reviews and approves all large-scale energy related transactions entered into by its regulated companies.

Other Risk Management Activities

Interest Rate Risk Management:  We manage our interest rate risk exposure in accordance with our written policies and procedures.

Credit Risk Management:  Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of our contractual obligations.  We serve a wide variety of customers and transact with suppliers that include IPPs, industrial companies, natural gas and electric utilities, oil and natural gas producers, financial institutions, and other energy marketers.  Margin accounts exist within this diverse group, and we realize interest receipts and payments related to balances outstanding in these margin accounts.  This wide customer and supplier mix generates a need for a variety of contractual structures, products and terms that, in turn, require us to manage the portfolio of market risk inherent in those transactions in a manner consistent with the parameters established by our risk management process.

Our regulated companies are subject to credit risk from certain long-term or high-volume supply contracts with energy marketing companies.  Our regulated companies manage the credit risk with these counterparties in accordance with established credit risk practices and monitor contracting risks, including credit risk.  As of March 31, 2020, our regulated companies held collateral (letters of credit or cash) of $15.0 million from counterparties related to our standard service contracts.  As of March 31, 2020, Eversource had $19.3 million of cash posted with ISO-NE related to energy transactions.

We have provided additional disclosures regarding interest rate risk management and credit risk management in Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," in Eversource's 2019 Form 10-K, which is incorporated herein by reference. There have been no additional risks identified and no material changes with regard to the items previously disclosed in the Eversource 2019 Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Management, on behalf of Eversource, CL&P, NSTAR Electric and PSNH, evaluated the design and operation of the disclosure controls and procedures as of March 31, 2020 to determine whether they are effective in ensuring that the disclosure of required information is made timely and in accordance with the Securities Exchange Act of 1934 and the rules and regulations of the SEC.  This evaluation was made under management's supervision and with management's participation, including the principal executive officer and principal financial officer as of the end of the period covered by this Quarterly Report on Form 10-Q.  There are inherent limitations of disclosure controls and procedures, including the possibility of human error and the circumventing or overriding of the controls and procedures.  Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.  The principal executive officer and principal financial officer have concluded, based on their review, that the disclosure controls and procedures of Eversource, CL&P, NSTAR Electric and PSNH are effective to ensure that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and regulations and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

There have been no changes in internal controls over financial reporting for Eversource, CL&P, NSTAR Electric and PSNH during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are parties to various legal proceedings.  We have disclosed certain legal proceedings in Part I, Item 3, "Legal Proceedings," and elsewhere in our 2019 Form 10-K.  These disclosures are incorporated herein by reference.

There have been no material legal proceedings identified and no material changes with regard to the legal proceedings previously disclosed in our 2019 Form 10-K.

ITEM 1A. RISK FACTORS

We are subject to a variety of significant risks in addition to the matters set forth under our forward-looking statements section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Quarterly Report on Form 10-Q.  We have identified a number of these risk factors in Part I, Item 1A, "Risk Factors," in our 2019 Form 10-K, which risk factors are incorporated herein by reference.  These risk factors should be considered carefully in evaluating our risk profile.  The following risk factor should be read in conjunction with the risk factors described in the 2019 Form 10-K.

The global pandemic of the 2019 novel coronavirus (COVID-19) has resulted in widespread disruption to the many systems and processes of daily life, as well as the overall economic market and outlook, which could cause various unfavorable impacts to our customers, vendors, employees, regulators, and operations and could adversely affect our financial position, results of operations and cash flows.

We are responding to COVID-19 by taking steps to mitigate the potential risks to Eversource posed by its spread. We provide a critical service to our customers, which means it is paramount that we keep our employees who operate our businesses safe and minimize unnecessary risk of exposure to COVID-19. We have updated and implemented our company-wide pandemic plan to address specific aspects of the COVID-19 pandemic. This plan guides our emergency response, business continuity, and the precautionary measures we are taking on behalf of employees and the public. As part of our pandemic plan, we are taking extra precautions to mitigate an adverse material impact to the following risk factors that we believe could continue to be impacted by COVID-19:

• Cybersecurity attacks: We have seen an increase in perimeter scanning for vulnerabilities, which can be leveraged to compromise a system, as well as phishing attempts targeted at our employees by outside parties to gain control of our systems and network. We continue to implement strong cybersecurity measures and educate our employees to ensure that our systems remain functional in order to both serve our operational needs with a remote workforce and keep them running to ensure uninterrupted service to our customers.
• Access to, or cost of, capital resources: We utilize the commercial paper market extensively for our short-term borrowing needs. At the onset of the pandemic in the United States, there had been reduced liquidity in the commercial paper credit market. However, federal legislative actions, as well as increased liquidity and the reduction in the federal funds rate by the Federal Reserve, have enabled the credit markets to function. We continue to monitor the ability for us to access the global capital and credit markets; however, we may find it difficult in the future should the economic slowdown continue.
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• Actions of regulators: In Connecticut, Massachusetts and New Hampshire, there is presently a moratorium on disconnections of residential and commercial customers for non-payment. We also eliminated late payment charges across all our operating companies. We are working closely with our state regulatory commissions and consumer advocates to develop several customer assistance measures, including more flexible and new payment plan options in order to mitigate the impact on customer rates in the future, as well as financial hardship and arrearage management programs for those customers who are unable to pay their utility bills. We are developing these long-term solutions for customers in order to help minimize the extent of the impact of COVID-19 on customer receivable balances and customers’ affordability in light of the current financial impact they may experience. We believe that we will be able to develop a successful structure with our state regulatory commissions to recover our costs associated with COVID-19, while balancing the impact on our customers’ bills.
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• Timing of strategic development opportunities: The successful execution of our timeline for developing our offshore wind projects is based on several factors, including state and federal siting and permitting approvals. Currently, there are delays in New York state for performing offshore site investigations, and onshore environmental and geotechnical surveys, which could have an impact on our project siting and permit filing timelines. On April 8, 2020, the state of New York Administrative Law Judge granted a ten-week delay until September 30, 2020 to the start of the South Fork Wind evidentiary hearing schedule due to ongoing COVID-19 work and travel restrictions. At this time, although we are unable to predict the impact of delays on our offshore wind projects, we are currently developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects.
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• Suppliers and Vendors: We have instituted measures to ensure our supply chain remains open to us; however, there could be global shortages that will impact our maintenance, capital programs, and storm response that we currently cannot anticipate.
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• Loss of key personnel: We continue to adjust our pandemic plan to assume various scenarios including reduced workforce levels and limited mutual aid in the event of a significant storm event. We have implemented remote work arrangements for our workforce by enabling nearly half of our employees to work from home and taking extra precautions for our field-based employees. We have taken significant safety measures to ensure adequate social distancing for our field crews to safely provide essential services to our customers. We have also adopted protocols to ensure the safety and health of those employees who work onsite in critical facilities. We continue to monitor COVID-19 developments affecting our workforce and will take additional precautions that we determine are necessary in order to mitigate the impacts.
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58

Although to date our workforce continues to be able to safely and reliably deliver our critical services to customers, we are unable to predict the extent of the impact of COVID-19 on our employees.

• Impact to Benefit Plans: As of March 31, 2020, under the Pension Protection Act, the funded status of our pension plan was approximately 100 percent, as compared to 111 percent as of December 31, 2019. The pension and PBOP plans' funded status is highly dependent on benefit plan asset returns, interest rates, and discount rates, all of which could be materially impacted by the extended economic slowdown. Should these financial metrics be negatively impacted by COVID-19 as of December 31, 2020, it could result in the underperformance of our pension and PBOP plan investments, an increase in pension and PBOP obligations and employee benefit plan costs, and in a minimum pension funding requirement due by March 31, 2022 for the 2021 Plan year. We continue to monitor federal legislative pension developments that could provide additional pension funding relief.

We currently cannot estimate the potential impact of COVID-19 to our financial position, results of operations and cash flows.

Other than as set forth above, there have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our 2019 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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

Period Total Number of<br><br>Shares Purchased Average Price<br><br>Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans and Programs (at month end)
January 1 - January 31, 2020 — $ — — —
February 1 - February 29, 2020 — — — —
March 1 - March 31, 2020 2,428 79.71 — —
Total 2,428 $ 79.71 — —

59

ITEM 6. EXHIBITS
Each document described below is filed herewith, unless designated with an asterisk (*), which exhibits are incorporated by reference by the registrant under whose name the exhibit appears. Exhibit No. Description
Listing of Exhibits (Eversource)
* 4 Twelfth Supplemental Indenture between Eversource Energy and The Bank of New York Trust Company N.A., as Trustee, dated as of January 1, 2020, relating to $350 million of Senior Notes, Series P, Due 2050 (Exhibit 4.1, Eversource Energy Current Report on Form 8-K filed January 16, 2020, File No. 001-05324)
31 Certification by the Chief Executive Officer of Eversource Energy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1 Certification by the Chief Financial Officer of Eversource Energy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32 Certification by the Chief Executive Officer and Chief Financial Officer of Eversource Energy pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (CL&P)
31 Certification by the Chairman of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1 Certification by the Chief Financial Officer of The Connecticut Light and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32 Certification by the Chairman and the Chief Financial Officer of The Connecticut Light and Power Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (NSTAR Electric Company)
* 4 Form of 3.95% Debenture due 2030 (Exhibit 4, NSTAR Electric Company Current Report on Form 8-K filed on March 26, 2020, File No. 001-02301)
31 Certification by the Chairman of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1 Certification by the Chief Financial Officer of NSTAR Electric Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32 Certification by the Chairman and the Chief Financial Officer of NSTAR Electric Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (PSNH)
31 Certification by the Chairman of Public Service Company of New Hampshire pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1 Certification by the Chief Financial Officer of Public Service Company of New Hampshire pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32 Certification by the Chairman and the Chief Financial Officer of Public Service Company of New Hampshire pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Listing of Exhibits (Eversource, CL&P, NSTAR Electric, PSNH)
101.INS Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document
101.SCH Inline XBRL Taxonomy Extension Schema
101.CAL Inline XBRL Taxonomy Extension Calculation
101.DEF Inline XBRL Taxonomy Extension Definition

60

101.LAB Inline XBRL Taxonomy Extension Labels
101.PRE Inline XBRL Taxonomy Extension Presentation
104 The cover page from the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL

61

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

EVERSOURCE ENERGY
May 8, 2020 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE CONNECTICUT LIGHT AND POWER COMPANY
May 8, 2020 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NSTAR ELECTRIC COMPANY
May 8, 2020 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
May 8, 2020 By: /s/ Jay S. Buth
Jay S. Buth
Vice President, Controller and Chief Accounting Officer

62

		Exhibit

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Eversource Energy (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ James J. Judge
James J. Judge
Chairman of the Board, President and Chief Executive Officer
(Principal Executive Officer) 
		Exhibit

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Eversource Energy (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ Philip J. Lembo
Philip J. Lembo
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) 
		Exhibit

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Eversource Energy (the registrant) for the period ending March 31, 2020 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the Board, President and Chief Executive Officer of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/ James J. Judge
James J. Judge
Chairman of the Board, President and Chief Executive Officer
/s/ Philip J. Lembo
--- ---
Philip J. Lembo
Executive Vice President and Chief Financial Officer

Date:  May 8, 2020

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

		Exhibit

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of The Connecticut Light and Power Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ James J. Judge
James J. Judge
Chairman
(Principal Executive Officer) 
		Exhibit

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of The Connecticut Light and Power Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ Philip J. Lembo
Philip J. Lembo
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) 
		Exhibit

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of The Connecticut Light and Power Company (the registrant) for the period ending March 31, 2020 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/ James J. Judge
James J. Judge
Chairman
/s/ Philip J. Lembo
--- ---
Philip J. Lembo
Executive Vice President and Chief Financial Officer

Date:  May 8, 2020

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

		Exhibit

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of NSTAR Electric Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ James J. Judge
James J. Judge
Chairman
(Principal Executive Officer) 
		Exhibit

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of NSTAR Electric Company (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ Philip J. Lembo
Philip J. Lembo
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) 
		Exhibit

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of NSTAR Electric Company (the registrant) for the period ending March 31, 2020 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/ James J. Judge
James J. Judge
Chairman
/s/ Philip J. Lembo
--- ---
Philip J. Lembo
Executive Vice President and Chief Financial Officer

Date:  May 8, 2020

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

		Exhibit

Exhibit 31

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Judge, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Public Service Company of New Hampshire (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ James J. Judge
James J. Judge
Chairman
(Principal Executive Officer) 
		Exhibit

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip J. Lembo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Public Service Company of New Hampshire (the registrant);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 8, 2020

/s/ Philip J. Lembo
Philip J. Lembo
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) 
		Exhibit

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Public Service Company of New Hampshire (the registrant) for the period ending March 31, 2020 as filed with the Securities and Exchange Commission (the Report), we, James J. Judge, Chairman of the registrant, and Philip J. Lembo, Executive Vice President and Chief Financial Officer of the registrant, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/ James J. Judge
James J. Judge
Chairman
/s/ Philip J. Lembo
--- ---
Philip J. Lembo
Executive Vice President and Chief Financial Officer

Date:  May 8, 2020

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

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