EVERSOURCE ENERGY [ES] Filings

10-Q 1 es-20230930.htm Q3 2023 FORM 10-Q es-20230930



	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
	FORM	10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended	September 30, 2023
	or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 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: 001-05324

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: 000-00404

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: 001-02301

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: 001-06392

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

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
filer

☐

Non-accelerated
filer

☐

Smaller reporting company

☐

Emerging growth company

☐

The Connecticut Light and Power Company

Large accelerated filer

☐

Accelerated
filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

NSTAR Electric Company

Large accelerated filer

☐

Accelerated
filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Public Service Company of New Hampshire

Large accelerated filer

☐

Accelerated
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 October 31, 2023

Eversource Energy Common Shares, $5.00 par value	349,326,209	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 Instruction 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, 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
EGMA			Eversource Gas Company of Massachusetts
Yankee Gas			Yankee Gas Services Company
Aquarion			Aquarion Company and its subsidiaries
HEEC			Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric
Eversource Service			Eversource Energy Service Company
North East Offshore			North East Offshore, LLC, an offshore wind business being developed jointly by Eversource and Denmark-based Ørsted
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, NSTAR Gas and EGMA, Aquarion’s water distribution businesses, and the solar power facilities of NSTAR Electric
Regulators and Government Agencies:
BOEM			U.S. Bureau of Ocean Energy Management
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
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
CfD			Contract for Differences
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
ESOP			Employee Stock Ownership Plan
Eversource 2022 Form 10-K			The Eversource Energy and Subsidiaries 2022 combined Annual Report on Form 10-K as filed with the SEC
Fitch			Fitch Ratings, Inc.


FMCC			Federally Mandated Congestion Charge
GAAP			Accounting principles generally accepted in the United States of America
GWh			Gigawatt-Hours
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)
LNG			Liquefied natural gas
LPG			Liquefied petroleum gas
LRS			Supplier of last resort service
MG			Million gallons
MGP			Manufactured Gas Plant
MMBtu			Million British thermal units
MMcf			Million cubic feet
Moody's			Moody's Investors Services, Inc.
MW			Megawatt
MWh			Megawatt-Hours
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
PPAM			Pole Plant Adjustment Mechanism
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
SERP			Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SS			Standard service
UI			The United Illuminating Company
VIE			Variable Interest Entity

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	5

	The Connecticut Light and Power Company (Unaudited)
	Condensed Balance Sheets	6
	Condensed Statements of Income	7
	Condensed Statements of Comprehensive Income	7
	Condensed Statements of Common Stockholder's Equity	8
	Condensed Statements of Cash Flows	9

	NSTAR Electric Company and Subsidiary (Unaudited)
	Condensed Consolidated Balance Sheets	10
	Condensed Consolidated Statements of Income	11
	Condensed Consolidated Statements of Comprehensive Income	11
	Condensed Consolidated Statements of Common Stockholder's Equity	12
	Condensed Consolidated Statements of Cash Flows	13

	Public Service Company of New Hampshire and Subsidiaries (Unaudited)
	Condensed Consolidated Balance Sheets	14
	Condensed Consolidated Statements of Income	15
	Condensed Consolidated Statements of Comprehensive Income	15
	Condensed Consolidated Statements of Common Stockholder's Equity	16
	Condensed Consolidated Statements of Cash Flows	17

	Combined Notes to Condensed Financial Statements (Unaudited)	18

ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Eversource Energy and Subsidiaries	40
	The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries	58

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	65

ITEM 4.	Controls and Procedures	65

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	66

ITEM 1A.	Risk Factors	66

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	66

ITEM 3.	Defaults Upon Senior Securities	66

ITEM 4.	Mine Safety Disclosures	66

ITEM 5.	Other Information	66

ITEM 6.	Exhibits	67

SIGNATURES		68

iii

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	As of September 30, 2023		As of December 31, 2022

ASSETS
Current Assets:
Cash	$	78,813	$	47,597
Cash Equivalents	—		327,006
Receivables, Net (net of allowance for uncollectible accounts of $542,746 and $486,297 as of September 30, 2023 and December 31, 2022, respectively)	1,430,183		1,517,138
Unbilled Revenues	171,934		238,968
Materials, Supplies, Natural Gas and REC Inventory	445,810		374,395
Regulatory Assets	1,507,888		1,335,491


Prepayments and Other Current Assets	374,471		382,603
Total Current Assets	4,009,099		4,223,198
Property, Plant and Equipment, Net	38,518,294		36,112,820
Deferred Debits and Other Assets:
Regulatory Assets	4,348,700		4,242,794
Goodwill	4,530,121		4,522,632
Investments in Unconsolidated Affiliates	2,723,931		2,176,080
Prepaid Pension and PBOP	1,238,512		1,045,524
Marketable Securities	327,381		366,508
Other Long-Term Assets	597,305		541,344
Total Deferred Debits and Other Assets	13,765,950		12,894,882
Total Assets	$	56,293,343	$	53,230,900

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	1,529,800	$	1,442,200
Long-Term Debt – Current Portion	2,071,862		1,320,129
Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	1,642,181		2,113,905

Regulatory Liabilities	724,413		890,786
Other Current Liabilities	1,108,178		989,053
Total Current Liabilities	7,119,644		6,799,283
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	5,238,623		5,067,902
Regulatory Liabilities	4,021,830		3,930,305
Derivative Liabilities	85,322		143,929
Asset Retirement Obligations	504,671		502,713
Accrued Pension, SERP and PBOP	118,462		135,473
Other Long-Term Liabilities	908,731		888,081
Total Deferred Credits and Other Liabilities	10,877,639		10,668,403
Long-Term Debt	22,087,267		19,723,994
Rate Reduction Bonds	367,282		410,492
Noncontrolling Interest – Preferred Stock of Subsidiaries	155,570		155,570
Common Shareholders' Equity:
Common Shares	1,799,920		1,799,920
Capital Surplus, Paid In	8,443,820		8,401,731
Retained Earnings	5,666,861		5,527,153
Accumulated Other Comprehensive Loss	(24,022)		(39,421)
Treasury Stock	(200,638)		(216,225)
Common Shareholders' Equity	15,685,941		15,473,158
Commitments and Contingencies (Note 9)
Total Liabilities and Capitalization	$	56,293,343	$	53,230,900

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information)	2023		2022		2023		2022

Operating Revenues	$	2,791,482	$	3,215,645	$	9,216,467	$	9,259,596

Operating Expenses:
Purchased Power, Purchased Natural Gas and Transmission	1,168,599		1,388,041		4,232,912		3,718,278
Operations and Maintenance	500,711		454,289		1,382,563		1,378,897
Depreciation	329,528		302,143		962,477		885,711
Amortization	(143,979)		111,287		(438,460)		418,644
Energy Efficiency Programs	162,425		162,545		531,199		498,708
Taxes Other Than Income Taxes	243,645		240,047		704,989		683,441
Total Operating Expenses	2,260,929		2,658,352		7,375,680		7,583,679
Operating Income	530,553		557,293		1,840,787		1,675,917
Interest Expense	222,283		178,174		624,140		491,509
Impairment of Offshore Wind Investment	—		—		401,000		—
Other Income, Net	79,123		89,831		262,980		255,253
Income Before Income Tax Expense	387,393		468,950		1,078,627		1,439,661
Income Tax Expense	45,850		117,661		226,743		349,305
Net Income	341,543		351,289		851,884		1,090,356
Net Income Attributable to Noncontrolling Interests	1,880		1,880		5,639		5,639
Net Income Attributable to Common Shareholders	$	339,663	$	349,409	$	846,245	$	1,084,717

Basic Earnings Per Common Share	$	0.97	$	1.01	$	2.42	$	3.13

Diluted Earnings Per Common Share	$	0.97	$	1.00	$	2.42	$	3.13

Weighted Average Common Shares Outstanding:
Basic	349,704,155		347,297,411		349,461,219		346,115,823
Diluted	349,851,969		347,762,693		349,731,320		346,573,101

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 September 30,				For the Nine Months Ended September 30,
(Thousands of Dollars)	2023		2022		2023		2022

Net Income	$	341,543	$	351,289	$	851,884	$	1,090,356
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	5		5		15		15
Changes in Unrealized (Losses)/Gains on Marketable Securities	—		(667)		1,254		(1,990)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans	8,076		2,520		14,130		3,244
Other Comprehensive Income, Net of Tax	8,081		1,858		15,399		1,269
Comprehensive Income Attributable to Noncontrolling Interests	(1,880)		(1,880)		(5,639)		(5,639)
Comprehensive Income Attributable to Common Shareholders	$	347,744	$	351,267	$	861,644	$	1,085,986

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(Unaudited)


	For the Nine Months Ended September 30, 2023
	Common Shares			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)	Shares	Amount
Balance as of January 1, 2023	348,443,855	$	1,799,920	$	8,401,731	$	5,527,153	$	(39,421)	$	(216,225)	$	15,473,158
Net Income						493,039						493,039
Dividends on Common Shares - $0.675 Per Share						(235,354)						(235,354)
Dividends on Preferred Stock						(1,880)						(1,880)
Long-Term Incentive Plan Activity				(13,141)								(13,141)
Issuance of Treasury Shares	364,227			23,495						6,824		30,319

Other Comprehensive Income								3,230				3,230
Balance as of March 31, 2023	348,808,082	1,799,920		8,412,085		5,782,958		(36,191)		(209,401)		15,749,371
Net Income						17,302						17,302
Dividends on Common Shares - $0.675 Per Share						(235,491)						(235,491)
Dividends on Preferred Stock						(1,880)						(1,880)

Long-Term Incentive Plan Activity				5,155								5,155
Issuance of Treasury Shares	213,854			11,546						4,007		15,553

Other Comprehensive Income								4,088				4,088
Balance as of June 30, 2023	349,021,936	1,799,920		8,428,786		5,562,889		(32,103)		(205,394)		15,554,098
Net Income						341,543						341,543
Dividends on Common Shares - $0.675 Per Share						(235,691)						(235,691)
Dividends on Preferred Stock						(1,880)						(1,880)

Long-Term Incentive Plan Activity				3,075								3,075
Issuance of Treasury Shares	253,839			11,959						4,756		16,715

Other Comprehensive Income								8,081				8,081
Balance as of September 30, 2023	349,275,775	$