Eversource Energy Q3 2026 earnings fall to $0.92 a share
CL&P recorded a $40.8 million storm-cost disallowance, while Eversource reported $2.334 billion in proceeds from the completed Aquarion sale.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Rhea-AI Filing Summary
Eversource Energy (ES) reported third-quarter 2026 operating revenue of $2.979 billion, down from $3.221 billion a year earlier, and net income attributable to common shareholders of $346.014 million, compared with $367.549 million. Diluted earnings per common share were $0.92, versus $0.99. For the first nine months, common-shareholder net income was $1.007 billion, compared with $1.271 billion; operating revenue was $10.386 billion, versus $10.177 billion.
Eversource completed the sale of Aquarion on June 30, 2026; nine-month investing cash flows included $2.334 billion in sale proceeds. A July 29 PURA decision approved $869.4 million of CL&P storm costs, postponed review of $63.3 million, and disallowed $40.8 million, which CL&P recorded as third-quarter operations and maintenance expense. The decision identified $667.9 million of approved costs for future securitization, excluding costs previously collected through base rates and costs approved in an April 2026 rate proceeding. CL&P filed an appeal on October 15; it remains pending.
1 point · 1 major0 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major pointAquarion sale proceeds totaled $2.334 billion in the first nine months. 8.6% of market cap
Negative
- Moderate pointThird-quarter operating revenue fell to $2.979 billion from $3.221 billion.
- Moderate pointNine-month common-shareholder net income fell to $1.007 billion from $1.271 billion.
- Moderate pointCL&P recorded a $40.8 million storm-cost disallowance in third-quarter 2026.
Filing Explained
The filing adds potential utility borrowing capacity and reports a higher common-share count, an ownership-dilution mechanism.
The report says CL&P received approval on
These are issuance limits sought or approved, not amounts already borrowed: the report identifies the CL&P amount as authorized and the other two as requests.
Eversource reported 376,913,101 common shares at
The reported increase in shares outstanding reflects an ownership-dilution mechanism: issuing additional shares reduces existing holders’ percentage ownership absent offsetting changes.
Key Figures
Third-quarter operating revenue: $2.979 billion
Third-quarter net income attributable to common shareholders: $346.014 million
Diluted earnings per common share: $0.92
+5 more
8 metrics
Third-quarter operating revenue
$2.979 billion
Three months ended September 30, 2026; $3.221 billion in 2025
Third-quarter net income attributable to common shareholders
$346.014 million
Three months ended September 30, 2026; $367.549 million in 2025
Diluted earnings per common share
$0.92
Three months ended September 30, 2026; $0.99 in 2025
Nine-month operating revenue
$10.386 billion
Nine months ended September 30, 2026; $10.177 billion in 2025
Nine-month net income attributable to common shareholders
$1.007 billion
Nine months ended September 30, 2026; $1.271 billion in 2025
Aquarion sale proceeds
$2.334 billion
Nine-month investing cash flows
CL&P storm-cost disallowance
$40.8 million
Recorded as third-quarter 2026 operations and maintenance expense
Approved storm costs for future securitization
$667.9 million
CL&P costs identified for future securitization, subject to the stated exclusions
Key Terms
Regulatory assets, securitization, Level 3, power purchase agreement
4 terms
Regulatory assets financial
"Regulatory assets represent the deferral of incurred costs"
Costs or expenses that a regulated company is allowed by a regulator to recover from customers in future rates, recorded on the balance sheet as assets because the company expects to collect them later. Think of it like an IOU the regulator permits the company to collect from future bills; it matters to investors because it affects reported assets, future cash flow timing, and the risk that some or all of those costs may not be approved for recovery.
securitization financial
"Total approved storm costs to be considered by PURA for future securitization"
Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.
Level 3 financial
"unobservable inputs utilized in the valuation"
Level 3 describes the lowest-confidence category in the accounting “fair value” hierarchy, covering assets or liabilities whose prices are not observable in the market and must be estimated using judgment and internal models. For investors, Level 3 items matter because they can introduce greater uncertainty and potential valuation swings—like valuing a unique antique versus checking a price tag on a supermarket shelf—so they signal higher model risk and lower liquidity.
power purchase agreement technical
"entered into a 20-year power purchase agreement"
A power purchase agreement (PPA) is a long-term contract in which a buyer agrees to purchase electricity from a generator at an agreed price and schedule, similar to a multi-year subscription for power or a long-term lease of an energy source. Investors care because PPAs provide predictable revenue and cash flow for the generator, reduce market-price exposure, and shift credit and performance risk to the buyer, all of which affect valuation, financing and perceived investment stability.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Eversource ES's third-quarter 2026 revenue and earnings?
Eversource reported third-quarter operating revenue of $2.979 billion and net income attributable to common shareholders of $346.014 million. The comparable 2025 figures were $3.221 billion and $367.549 million; diluted earnings per common share were $0.92, compared with $0.99.
How much did Eversource receive from the Aquarion sale?
Eversource completed the Aquarion sale on June 30, 2026, and its nine-month investing cash flows included $2.334 billion in proceeds from the sale.
What did PURA decide about CL&P's storm costs?
PURA's July 29, 2026 decision approved $869.4 million of storm costs, postponed review of $63.3 million, and disallowed $40.8 million. It identified $667.9 million of approved costs for future securitization, excluding $101.5 million previously collected through base rates and $100 million approved in the April 2026 rate proceeding. CL&P's appeal remains pending.
AI-generated analysis. How Rhea-AI works. Not financial advice.
 | ||||||||
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 | ||||||||
| FORM | ||||||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
| For the Quarterly Period Ended | ||||||||
| 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.
(a Massachusetts voluntary association)
Telephone: (800 ) 286-5000
Commission File Number: 001-05324
I.R.S. Employer Identification No. 04-2147929
(a Connecticut corporation)
Telephone: (800 ) 286-5000
Commission File Number: 000-00404
I.R.S. Employer Identification No. 06-0303850
(a Massachusetts corporation)
Telephone: (800 ) 286-5000
Commission File Number: 001-02301
I.R.S. Employer Identification No. 04-1278810
(a New Hampshire corporation)
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 | ||||||||||||
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.
| 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).
| 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 | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||||||||||||||||
| The Connecticut Light and Power Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | ☒ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||||||||||||||||
| NSTAR Electric Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | ☒ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||||||||||||||||
| Public Service Company of New Hampshire | Large accelerated filer | ☐ | 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, 2026 | |||||||
| Eversource Energy Common Shares, $5.00 par value | shares | |||||||
| The Connecticut Light and Power Company Common Stock, $10.00 par value | shares | |||||||
| NSTAR Electric Company Common Stock, $1.00 par value | shares | |||||||
| Public Service Company of New Hampshire Common Stock, $1.00 par value | 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.
The Connecticut Light and Power Company, 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, 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 and post-sale obligations from its previous offshore wind investments | ||||
| 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 | ||||
| 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, the solar power facilities of NSTAR Electric, and Aquarion’s water distribution businesses until sale on June 30, 2026 | ||||
| Regulators and Government Agencies: | |||||
| 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 2025 Form 10-K | The Eversource Energy and Subsidiaries 2025 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 | ||||
i
| GSEP | Gas System Enhancement Program | ||||
| 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) | ||||
| kWh | Kilowatt-Hours | ||||
| 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 Service, 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 | ||||
| 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 | ||||
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 | 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 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 | 43 | |||||||
The Connecticut Light and Power Company, NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries | 63 | |||||||
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk | 68 | ||||||
ITEM 4. | Controls and Procedures | 69 | ||||||
| PART II – OTHER INFORMATION | ||||||||
ITEM 1. | Legal Proceedings | 69 | ||||||
ITEM 1A. | Risk Factors | 69 | ||||||
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 70 | ||||||
| ITEM 3. | Defaults Upon Senior Securities | 70 | ||||||
| ITEM 4. | Mine Safety Disclosures | 70 | ||||||
| ITEM 5. | Other Information | 70 | ||||||
ITEM 6. | Exhibits | 71 | ||||||
SIGNATURES | 72 | |||||||
iii
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (Thousands of Dollars) | As of September 30, 2026 | As of December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and Cash Equivalents | $ | $ | |||||||||
Receivables, Net (net of allowance for uncollectible accounts of $ and $ | |||||||||||
| Unbilled Revenues | |||||||||||
| Materials, Supplies, Natural Gas and REC Inventory | |||||||||||
| Regulatory Assets | |||||||||||
| Prepayments and Other Current Assets | |||||||||||
| Total Current Assets | |||||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Deferred Debits and Other Assets: | |||||||||||
| Regulatory Assets | |||||||||||
| Goodwill | |||||||||||
| Prepaid Pension and PBOP | |||||||||||
| Marketable Securities | |||||||||||
| Other Long-Term Assets | |||||||||||
| Total Deferred Debits and Other Assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES AND CAPITALIZATION | |||||||||||
| Current Liabilities: | |||||||||||
| Notes Payable | $ | $ | |||||||||
| Long-Term Debt – Current Portion | |||||||||||
| Rate Reduction Bonds – Current Portion | |||||||||||
| Accounts Payable | |||||||||||
| Regulatory Liabilities | |||||||||||
| Offshore Wind Contingent Liability | |||||||||||
| Other Current Liabilities | |||||||||||
| Total Current Liabilities | |||||||||||
| Deferred Credits and Other Liabilities: | |||||||||||
| Accumulated Deferred Income Taxes | |||||||||||
| Regulatory Liabilities | |||||||||||
| Derivative Liabilities | |||||||||||
| Asset Retirement Obligations | |||||||||||
| Accrued SERP and PBOP | |||||||||||
| Other Long-Term Liabilities | |||||||||||
| Total Deferred Credits and Other Liabilities | |||||||||||
| Long-Term Debt | |||||||||||
| Rate Reduction Bonds | |||||||||||
| Noncontrolling Interest – Preferred Stock of Subsidiaries | |||||||||||
| Common Shareholders' Equity: | |||||||||||
| Common Shares | |||||||||||
| Capital Surplus, Paid In | |||||||||||
| Retained Earnings | |||||||||||
| Accumulated Other Comprehensive Loss | ( | ( | |||||||||
| Treasury Stock | ( | ( | |||||||||
| Common Shareholders' Equity | |||||||||||
| Commitments and Contingencies (Note 9) | |||||||||||
| Total Liabilities and Capitalization | $ | $ | |||||||||
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 September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| (Thousands of Dollars, Except Share Information) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Purchased Power, Purchased Natural Gas and Transmission | |||||||||||||||||||||||
| Operations and Maintenance | |||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||
| Amortization | ( | ||||||||||||||||||||||
| Energy Efficiency Programs | |||||||||||||||||||||||
| Taxes Other Than Income Taxes | |||||||||||||||||||||||
| Sale of Aquarion | |||||||||||||||||||||||
| Total Operating Expenses | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Losses on Offshore Wind | |||||||||||||||||||||||
| Other Income, Net | |||||||||||||||||||||||
| Income Before Income Tax Expense | |||||||||||||||||||||||
| Income Tax Expense/(Benefit) | ( | ||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | |||||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Basic and Diluted Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
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) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Other Comprehensive Income, Net of Tax: | |||||||||||||||||||||||
| Qualified Cash Flow Hedging Instruments | |||||||||||||||||||||||
| Changes in Funded Status of Pension, SERP and PBOP Benefit Plans | |||||||||||||||||||||||
| Other Comprehensive Income, Net of Tax | |||||||||||||||||||||||
| Comprehensive Income Attributable to Noncontrolling Interests | ( | ( | ( | ( | |||||||||||||||||||
| Comprehensive Income Attributable to Common Shareholders | $ | $ | $ | $ | |||||||||||||||||||
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)
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||
| 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, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
| Net Income | |||||||||||||||||||||||
Dividends on Common Shares - $ | ( | ( | |||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||
| Long-Term Incentive Plan Activity | ( | ( | |||||||||||||||||||||
| Issuance of Treasury Shares | |||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||
| Balance as of March 31, 2026 | ( | ( | |||||||||||||||||||||
| Net Income | |||||||||||||||||||||||
Dividends on Common Shares - $ | ( | ( | |||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||
Issuance of Common Shares - $ | |||||||||||||||||||||||
| Capital Stock Expense | ( | ( | |||||||||||||||||||||
| Long-Term Incentive Plan Activity | |||||||||||||||||||||||
| Issuance of Treasury Shares | |||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||
| Balance as of June 30, 2026 | ( | ( | |||||||||||||||||||||
| Net Income | |||||||||||||||||||||||
Dividends on Common Shares - $ | ( | ( | |||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||
| Capital Stock Expense | ( | ( | |||||||||||||||||||||
| Long-Term Incentive Plan Activity | |||||||||||||||||||||||
| Issuance of Treasury Shares | |||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(Unaudited)
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||
| 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, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
| Net Income | |||||||||||||||||||||||
Dividends on Common Shares - $ | ( | ( | |||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||
| Long-Term Incentive Plan Activity | ( | ( | |||||||||||||||||||||
| Issuance of Treasury Shares | |||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||
| Balance as of March 31, 2025 | ( | ( | |||||||||||||||||||||
| Net Income | |||||||||||||||||||||||
Dividends on Common Shares - $ | ( | ( | |||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||
Issuance of Common Shares - $ | |||||||||||||||||||||||
| Capital Stock Expense | ( | ( | |||||||||||||||||||||
| Long-Term Incentive Plan Activity | |||||||||||||||||||||||
| Issuance of Treasury Shares | |||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||
| Balance as of June 30, 2025 | ( | ( | |||||||||||||||||||||
| Net Income | |||||||||||||||||||||||
Dividends on Common Shares - $ | ( | ( | |||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||
Issuance of Common Shares - $ | |||||||||||||||||||||||
| Capital Stock Expense | ( | ( | |||||||||||||||||||||
| Long-Term Incentive Plan Activity | |||||||||||||||||||||||
| Issuance of Treasury Shares | |||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Nine Months Ended September 30, | |||||||||||
| (Thousands of Dollars) | 2026 | 2025 | |||||||||
| Operating Activities: | |||||||||||
| Net Income | $ | $ | |||||||||
| Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities: | |||||||||||
| Depreciation | |||||||||||
| Deferred Income Taxes | |||||||||||
| Uncollectible Expense | |||||||||||
| Pension, SERP and PBOP Income, Net | ( | ( | |||||||||
| Regulatory Over Recoveries, Net | |||||||||||
| Amortization | |||||||||||
| Cost of Removal Expenditures | ( | ( | |||||||||
| Sale of Aquarion | |||||||||||
| Losses on Offshore Wind | |||||||||||
| Other | |||||||||||
| Changes in Current Assets and Liabilities: | |||||||||||
| Receivables and Unbilled Revenues, Net | |||||||||||
| Taxes Receivable/Accrued, Net | ( | ||||||||||
| Accounts Payable | ( | ( | |||||||||
| Other Current Assets and Liabilities, Net | ( | ( | |||||||||
| Net Cash Flows Provided by Operating Activities | |||||||||||
| Investing Activities: | |||||||||||
| Investments in Property, Plant and Equipment | ( | ( | |||||||||
| Proceeds from Sales of Marketable Securities | |||||||||||
| Purchases of Marketable Securities | ( | ( | |||||||||
| Payments for Offshore Wind Contingent Liability | ( | ( | |||||||||
| Investments in Unconsolidated Affiliates | ( | ||||||||||
| Proceeds from Sale of Aquarion | |||||||||||
| Other Investing Activities | |||||||||||
| Net Cash Flows Used in Investing Activities | ( | ( | |||||||||
| Financing Activities: | |||||||||||
| Issuance of Common Shares, Net of Issuance Costs | |||||||||||
| Cash Dividends on Common Shares | ( | ( | |||||||||
| Cash Dividends on Preferred Stock | ( | ( | |||||||||
| Decrease in Notes Payable | ( | ( | |||||||||
| Repayment of Rate Reduction Bonds | ( | ( | |||||||||
| Issuance of Long-Term Debt | |||||||||||
| Retirement of Long-Term Debt | ( | ( | |||||||||
| Other Financing Activities | ( | ( | |||||||||
| Net Cash Flows (Used in)/Provided by Financing Activities | ( | ||||||||||
| Net Increase in Cash, Cash Equivalents and Restricted Cash | |||||||||||
| Cash, Cash Equivalents and Restricted Cash - Beginning of Period | |||||||||||
| Cash, Cash Equivalents and Restricted Cash - End of Period | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
| (Thousands of Dollars) | As of September 30, 2026 | As of December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash | $ | $ | |||||||||
Receivables, Net (net of allowance for uncollectible accounts of $ $ | |||||||||||
| Accounts Receivable from Affiliated Companies | |||||||||||
| Unbilled Revenues | |||||||||||
| Materials and Supplies | |||||||||||
| Regulatory Assets | |||||||||||
| Prepayments and Other Current Assets | |||||||||||
| Total Current Assets | |||||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Deferred Debits and Other Assets: | |||||||||||
| Regulatory Assets | |||||||||||
| Prepaid Pension and PBOP | |||||||||||
| Other Long-Term Assets | |||||||||||
| Total Deferred Debits and Other Assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES AND CAPITALIZATION | |||||||||||
| Current Liabilities: | |||||||||||
| Notes Payable to Eversource Parent | $ | $ | |||||||||
| Long-Term Debt – Current Portion | |||||||||||
| Accounts Payable | |||||||||||
| Accounts Payable to Affiliated Companies | |||||||||||
| Accrued Taxes | |||||||||||
| Regulatory Liabilities | |||||||||||
| Other Current Liabilities | |||||||||||
| Total Current Liabilities | |||||||||||
| Deferred Credits and Other Liabilities: | |||||||||||
| Accumulated Deferred Income Taxes | |||||||||||
| Regulatory Liabilities | |||||||||||
| Other Long-Term Liabilities | |||||||||||
| Total Deferred Credits and Other Liabilities | |||||||||||
| Long-Term Debt | |||||||||||
| Preferred Stock Not Subject to Mandatory Redemption | |||||||||||
| Common Stockholder's Equity: | |||||||||||
| Common Stock | |||||||||||
| Capital Surplus, Paid In | |||||||||||
| Retained Earnings | |||||||||||
| Accumulated Other Comprehensive Income | |||||||||||
| Common Stockholder's Equity | |||||||||||
| Commitments and Contingencies (Note 9) | |||||||||||
| Total Liabilities and Capitalization | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
6
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| (Thousands of Dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Purchased Power and Transmission | |||||||||||||||||||||||
| Operations and Maintenance | |||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||
| Amortization of Regulatory (Liabilities)/Assets, Net | ( | ||||||||||||||||||||||
| Energy Efficiency Programs | |||||||||||||||||||||||
| Taxes Other Than Income Taxes | |||||||||||||||||||||||
| Total Operating Expenses | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Other Income, Net | |||||||||||||||||||||||
| Income Before Income Tax Expense | |||||||||||||||||||||||
| Income Tax Expense | |||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| (Thousands of Dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Other Comprehensive Loss, Net of Tax: | |||||||||||||||||||||||
| Qualified Cash Flow Hedging Instruments | ( | ( | ( | ( | |||||||||||||||||||
| Other Comprehensive Loss, Net of Tax | ( | ( | ( | ( | |||||||||||||||||||
| Comprehensive Income | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
7
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Common Stock | Capital Surplus, Paid In | Retained Earnings | Accumulated Other Comprehensive Income | Total Common Stockholder's Equity | |||||||||||||||||||||||||||||||
| (Thousands of Dollars, Except Stock Information) | Stock | Amount | |||||||||||||||||||||||||||||||||
| Balance as of January 1, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Common Stock | Capital Surplus, Paid In | Retained Earnings | Accumulated Other Comprehensive Income | Total Common Stockholder's Equity | |||||||||||||||||||||||||||||||
| (Thousands of Dollars, Except Stock Information) | Stock | Amount | |||||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
8
THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Nine Months Ended September 30, | |||||||||||
| (Thousands of Dollars) | 2026 | 2025 | |||||||||
| Operating Activities: | |||||||||||
| Net Income | $ | $ | |||||||||
| Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities: | |||||||||||
| Depreciation | |||||||||||
| Deferred Income Taxes | ( | ||||||||||
| Uncollectible Expense | |||||||||||
| Pension, SERP, and PBOP Income, Net | ( | ( | |||||||||
| Regulatory Over Recoveries, Net | |||||||||||
| Amortization of Regulatory Assets, Net | |||||||||||
| Cost of Removal Expenditures | ( | ( | |||||||||
| Other | ( | ||||||||||
| Changes in Current Assets and Liabilities: | |||||||||||
| Receivables and Unbilled Revenues, Net | |||||||||||
| Taxes Receivable/Accrued, Net | ( | ||||||||||
| Accounts Payable | ( | ( | |||||||||
| Other Current Assets and Liabilities, Net | ( | ( | |||||||||
| Net Cash Flows Provided by Operating Activities | |||||||||||
| Investing Activities: | |||||||||||
| Investments in Property, Plant and Equipment | ( | ( | |||||||||
| Net Cash Flows Used in Investing Activities | ( | ( | |||||||||
| Financing Activities: | |||||||||||
| Cash Dividends on Common Stock | ( | ( | |||||||||
| Cash Dividends on Preferred Stock | ( | ( | |||||||||
| Issuance of Long-Term Debt | |||||||||||
| Increase/(Decrease) in Notes Payable to Eversource Parent | ( | ||||||||||
| Other Financing Activities | ( | ( | |||||||||
| Net Cash Flows Used in Financing Activities | ( | ( | |||||||||
| Net (Decrease)/Increase in Cash and Restricted Cash | ( | ||||||||||
| Cash and Restricted Cash - Beginning of Period | |||||||||||
| Cash and Restricted Cash - End of Period | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
9
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (Thousands of Dollars) | As of September 30, 2026 | As of December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and Cash Equivalents | $ | $ | |||||||||
Receivables, Net (net of allowance for uncollectible accounts of $ $ | |||||||||||
| Accounts Receivable from Affiliated Companies | |||||||||||
| Unbilled Revenues | |||||||||||
| Materials, Supplies and REC Inventory | |||||||||||
| Regulatory Assets | |||||||||||
| Derivative Assets | |||||||||||
| Prepayments and Other Current Assets | |||||||||||
| Total Current Assets | |||||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Deferred Debits and Other Assets: | |||||||||||
| Regulatory Assets | |||||||||||
| Prepaid Pension and PBOP | |||||||||||
| Other Long-Term Assets | |||||||||||
| Total Deferred Debits and Other Assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES AND CAPITALIZATION | |||||||||||
| Current Liabilities: | |||||||||||
| Notes Payable | $ | $ | |||||||||
| Long-Term Debt – Current Portion | |||||||||||
| Accounts Payable | |||||||||||
| Accounts Payable to Affiliated Companies | |||||||||||
| Obligations to Third-Party Suppliers | |||||||||||
| Regulatory Liabilities | |||||||||||
| Other Current Liabilities | |||||||||||
| Total Current Liabilities | |||||||||||
| Deferred Credits and Other Liabilities: | |||||||||||
| Accumulated Deferred Income Taxes | |||||||||||
| Regulatory Liabilities | |||||||||||
| Derivative Liabilities | |||||||||||
| Other Long-Term Liabilities | |||||||||||
| Total Deferred Credits and Other Liabilities | |||||||||||
| Long-Term Debt | |||||||||||
| Preferred Stock Not Subject to Mandatory Redemption | |||||||||||
| Common Stockholder's Equity: | |||||||||||
| Common Stock | |||||||||||
| Capital Surplus, Paid In | |||||||||||
| Retained Earnings | |||||||||||
| Accumulated Other Comprehensive Income | |||||||||||
| Common Stockholder's Equity | |||||||||||
| Commitments and Contingencies (Note 9) | |||||||||||
| Total Liabilities and Capitalization | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| (Thousands of Dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Purchased Power and Transmission | |||||||||||||||||||||||
| Operations and Maintenance | |||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||
| Amortization of Regulatory Assets, Net | |||||||||||||||||||||||
| Energy Efficiency Programs | |||||||||||||||||||||||
| Taxes Other Than Income Taxes | |||||||||||||||||||||||
| Total Operating Expenses | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Other Income, Net | |||||||||||||||||||||||
| Income Before Income Tax Expense | |||||||||||||||||||||||
| Income Tax Expense | |||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
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) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Other Comprehensive (Loss)/Income, Net of Tax: | |||||||||||||||||||||||
| Changes in Funded Status of SERP Benefit Plan | ( | ( | ( | ( | |||||||||||||||||||
| Qualified Cash Flow Hedging Instruments | |||||||||||||||||||||||
| Other Comprehensive (Loss)/Income, Net of Tax | ( | ( | ( | ||||||||||||||||||||
| Comprehensive Income | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
11
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Common Stock | Capital Surplus, Paid In | Retained Earnings | Accumulated Other Comprehensive Income | Total Common Stockholder's Equity | |||||||||||||||||||||||||||||||
| (Thousands of Dollars, Except Stock Information) | Stock | Amount | |||||||||||||||||||||||||||||||||
| Balance as of January 1, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Capital Contributions from Eversource Parent | |||||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Capital Contributions from Eversource Parent | |||||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Common Stock | Capital Surplus, Paid In | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholder's Equity | |||||||||||||||||||||||||||||||
| (Thousands of Dollars, Except Stock Information) | Stock | Amount | |||||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Capital Contributions from Eversource Parent | |||||||||||||||||||||||||||||||||||
| Other Comprehensive Loss | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | ( | ||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | ( | ||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Dividends on Preferred Stock | ( | ( | |||||||||||||||||||||||||||||||||
| Other Comprehensive Income | |||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
12
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Nine Months Ended September 30, | |||||||||||
| (Thousands of Dollars) | 2026 | 2025 | |||||||||
| Operating Activities: | |||||||||||
| Net Income | $ | $ | |||||||||
| Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities: | |||||||||||
| Depreciation | |||||||||||
| Deferred Income Taxes | |||||||||||
| Uncollectible Expense | |||||||||||
| Pension, SERP and PBOP Income, Net | ( | ( | |||||||||
| Regulatory (Under)/Over Recoveries, Net | ( | ||||||||||
| Amortization of Regulatory Assets, Net | |||||||||||
| Cost of Removal Expenditures | ( | ( | |||||||||
| Other | ( | ( | |||||||||
| Changes in Current Assets and Liabilities: | |||||||||||
| Receivables and Unbilled Revenues, Net | ( | ||||||||||
| Taxes Receivable/Accrued, Net | |||||||||||
| Accounts Payable | ( | ( | |||||||||
| Other Current Assets and Liabilities, Net | ( | ( | |||||||||
| Net Cash Flows Provided by Operating Activities | |||||||||||
| Investing Activities: | |||||||||||
| Investments in Property, Plant and Equipment | ( | ( | |||||||||
| Other Investing Activities | ( | ||||||||||
| Net Cash Flows Used in Investing Activities | ( | ( | |||||||||
| Financing Activities: | |||||||||||
| Cash Dividends on Common Stock | ( | ( | |||||||||
| Cash Dividends on Preferred Stock | ( | ( | |||||||||
| Issuance of Long-Term Debt | |||||||||||
| Retirement of Long-Term Debt | ( | ||||||||||
| Capital Contributions from Eversource Parent | |||||||||||
| Decrease in Notes Payable | ( | ( | |||||||||
| Other Financing Activities | ( | ( | |||||||||
| Net Cash Flows Provided by Financing Activities | |||||||||||
| Net Increase in Cash, Cash Equivalents and Restricted Cash | |||||||||||
| Cash, Cash Equivalents and Restricted Cash - Beginning of Period | |||||||||||
| Cash, Cash Equivalents and Restricted Cash - End of Period | $ | $ | |||||||||
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 BALANCE SHEETS
(Unaudited)
| (Thousands of Dollars) | As of September 30, 2026 | As of December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and Cash Equivalents | $ | $ | |||||||||
Receivables, Net (net of allowance for uncollectible accounts of $ as of September 30, 2026 and December 31, 2025, respectively) | |||||||||||
| Accounts Receivable from Affiliated Companies | |||||||||||
| Unbilled Revenues | |||||||||||
| Materials, Supplies and REC Inventory | |||||||||||
| Regulatory Assets | |||||||||||
| Special Deposits | |||||||||||
| Prepayments and Other Current Assets | |||||||||||
| Total Current Assets | |||||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Deferred Debits and Other Assets: | |||||||||||
| Regulatory Assets | |||||||||||
| Prepaid Pension and PBOP | |||||||||||
| Other Long-Term Assets | |||||||||||
| Total Deferred Debits and Other Assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES AND CAPITALIZATION | |||||||||||
| Current Liabilities: | |||||||||||
| Notes Payable to Eversource Parent | $ | $ | |||||||||
| Rate Reduction Bonds – Current Portion | |||||||||||
| Accounts Payable | |||||||||||
| Accounts Payable to Affiliated Companies | |||||||||||
| Obligations to Third-Party Suppliers | |||||||||||
| Accrued Interest | |||||||||||
| Regulatory Liabilities | |||||||||||
| Other Current Liabilities | |||||||||||
| Total Current Liabilities | |||||||||||
| Deferred Credits and Other Liabilities: | |||||||||||
| Accumulated Deferred Income Taxes | |||||||||||
| Regulatory Liabilities | |||||||||||
| Other Long-Term Liabilities | |||||||||||
| Total Deferred Credits and Other Liabilities | |||||||||||
| Long-Term Debt | |||||||||||
| Rate Reduction Bonds | |||||||||||
| Common Stockholder's Equity: | |||||||||||
| Common Stock | |||||||||||
| Capital Surplus, Paid In | |||||||||||
| Retained Earnings | |||||||||||
| Common Stockholder's Equity | |||||||||||
| Commitments and Contingencies (Note 9) | |||||||||||
| Total Liabilities and Capitalization | $ | $ | |||||||||
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 INCOME
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| (Thousands of Dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Purchased Power and Transmission | |||||||||||||||||||||||
| Operations and Maintenance | |||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||
| Amortization of Regulatory Assets/(Liabilities), Net | ( | ||||||||||||||||||||||
| Energy Efficiency Programs | |||||||||||||||||||||||
| Taxes Other Than Income Taxes | |||||||||||||||||||||||
| Total Operating Expenses | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Other Income, Net | |||||||||||||||||||||||
| Income Before Income Tax Expense | |||||||||||||||||||||||
| Income Tax Expense | |||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
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 COMMON STOCKHOLDER'S EQUITY
(Unaudited)
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Common Stock | Capital Surplus, Paid In | Retained Earnings | Total Common Stockholder's Equity | ||||||||||||||||||||||||||
| (Thousands of Dollars, Except Stock Information) | Stock | Amount | |||||||||||||||||||||||||||
| Balance as of January 1, 2026 | $ | $ | $ | $ | |||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||
| Balance as of March 31, 2026 | |||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||
| Balance as of June 30, 2026 | |||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | $ | |||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Common Stock | Capital Surplus, Paid In | Retained Earnings | Total Common Stockholder's Equity | ||||||||||||||||||||||||||
| (Thousands of Dollars, Except Stock Information) | Stock | Amount | |||||||||||||||||||||||||||
| Balance as of January 1, 2025 | $ | $ | $ | $ | |||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||
| Capital Contributions from Eversource Parent | |||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | |||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||
| Dividends on Common Stock | ( | ( | |||||||||||||||||||||||||||
| Balance as of June 30, 2025 | |||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | $ | |||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
16
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Nine Months Ended September 30, | |||||||||||
| (Thousands of Dollars) | 2026 | 2025 | |||||||||
| Operating Activities: | |||||||||||
| Net Income | $ | $ | |||||||||
| Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities: | |||||||||||
| Depreciation | |||||||||||
| Deferred Income Taxes | |||||||||||
| Uncollectible Expense | ( | ||||||||||
| Pension, SERP and PBOP Income, Net | ( | ( | |||||||||
| Regulatory Over/(Under) Recoveries, Net | ( | ||||||||||
| Amortization of Regulatory Assets, Net | |||||||||||
| Cost of Removal Expenditures | ( | ( | |||||||||
| Other | ( | ( | |||||||||
| Changes in Current Assets and Liabilities: | |||||||||||
| Receivables and Unbilled Revenues, Net | ( | ( | |||||||||
| Taxes Receivable/Accrued, Net | ( | ( | |||||||||
| Accounts Payable | ( | ( | |||||||||
| Other Current Assets and Liabilities, Net | |||||||||||
| Net Cash Flows Provided by Operating Activities | |||||||||||
| Investing Activities: | |||||||||||
| Investments in Property, Plant and Equipment | ( | ( | |||||||||
| Net Cash Flows Used in Investing Activities | ( | ( | |||||||||
| Financing Activities: | |||||||||||
| Cash Dividends on Common Stock | ( | ( | |||||||||
| Capital Contributions from Eversource Parent | |||||||||||
| Issuance of Long-Term Debt | |||||||||||
| Repayment of Rate Reduction Bonds | ( | ( | |||||||||
| Decrease in Notes Payable to Eversource Parent | ( | ( | |||||||||
| Other Financing Activities | ( | ||||||||||
| Net Cash Flows (Used in)/Provided by Financing Activities | ( | ||||||||||
| Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash | ( | ||||||||||
| Cash, Cash Equivalents and Restricted Cash - Beginning of Period | |||||||||||
| Cash, Cash Equivalents and Restricted Cash - End of Period | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
17
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), and Yankee Gas, NSTAR Gas and EGMA (natural gas utilities). Eversource provides energy delivery service to approximately 4.4 million electric and natural gas 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 2025 Form 10-K, which was filed with the SEC on February 17, 2026. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of September 30, 2026 and December 31, 2025, the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, 2026 and 2025, and the cash flows for the nine months ended September 30, 2026 and 2025. The results of operations and comprehensive income for the three and nine months ended September 30, 2026 and 2025 and the cash flows for the nine months ended September 30, 2026 and 2025 are not necessarily indicative of the results expected for a full year.
CYAPC and YAEC are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. Eversource consolidates the operations of CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership and voting interests in each of these entities is greater than 50 percent. Intercompany transactions between CL&P, NSTAR Electric, PSNH and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.
Eversource's utility subsidiaries' 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.
On June 30, 2026, Eversource completed the sale of Aquarion consistent with all regulatory terms and requirements. The assets and liabilities associated with the sale of the water distribution business were previously reflected in the Water Distribution segment and reporting unit. Management has elected to continue presenting the results of the Aquarion water distribution business as a separate reportable segment for comparative prior periods. See Note 17, "Segment Information" and Note 18, "Sale of Aquarion Water Distribution Business," for further information.
Certain reclassifications of prior period data were made in the accompanying financial statements to conform to the current period presentation.
B. Accounting Standards
Accounting Standards Issued but Not Yet Adopted: In September 2025, the Financial Accounting Standards Board issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software, to modernize and clarify the accounting for software costs. The ASU’s provisions change the criteria for capitalization of software development costs by eliminating consideration of “project development stages” and instead requiring consideration of the probability of software project completion for its intended use. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. Entities are permitted to apply one of three transition approaches: prospective, modified transition that is based on the status of the project and whether software costs were capitalized before the date of adoption, or retrospective. Eversource is currently reviewing the requirements of ASU 2025-06.
18
In May 2026, the Financial Accounting Standards Board issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), to establish a comprehensive model for the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. Entities should apply the amendments on a retrospective basis through a cumulative-effect adjustment on the opening balance of retained earnings. Eversource is currently reviewing the requirements of ASU 2026-02.
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). The current expected credit loss (CECL) model is 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 various judgments and factors, including an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category. Factors in determining credit loss include historical collection, write-off experience, analysis of delinquency statistics, and management's assessment of collectability from customers, including current economic conditions, customer payment trends, the impact on customer bills because of energy usage trends and changes in rates, flexible payment plans and financial hardship arrearage management programs offered to customers, reasonable forecasts, and expectations of future collectability and collection efforts. Management continuously assesses the collectability of receivables and adjusts estimates based on actual experience and future expectations based on economic conditions, collection efforts and other factors. 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. Management concluded that the reserve balance as of September 30, 2026 adequately reflected the collection risk and net realizable value for its receivables.
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, NSTAR Gas and EGMA 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. Management uses a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.
| Eversource | CL&P | NSTAR Electric | PSNH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Hardship Accounts | Retail (Non-Hardship), Wholesale, and Other | Total Allowance | Hardship Accounts | Retail (Non-Hardship), Wholesale, and Other | Total Allowance | Hardship Accounts | Retail (Non-Hardship), Wholesale, and Other | Total Allowance | Total Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 1, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Uncollectible Costs Deferred (1) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Write-Offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries Collected | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Uncollectible Costs Deferred (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Write-Offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries Collected | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Aquarion (2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
19
| Eversource | CL&P | NSTAR Electric | PSNH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Hardship Accounts | Retail (Non-Hardship), Wholesale, and Other | Total Allowance | Hardship Accounts | Retail (Non-Hardship), Wholesale, and Other | Total Allowance | Hardship Accounts | Retail (Non-Hardship), Wholesale, and Other | Total Allowance | Total Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 1, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Uncollectible Costs Deferred (1) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Write-Offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries Collected | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Uncollectible Costs Deferred (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Write-Offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries Collected | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
(1) These expected credit losses are deferred as regulatory costs on the balance sheets, as these amounts are ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to uncollectible energy supply costs.
(2) On June 30, 2026, Eversource completed the sale of Aquarion. For further information, see Note 18, "Sale of Aquarion Water Distribution Business."
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 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, equity method investments, AROs, and in the valuation of business combinations and asset acquisitions. The fair value measurement guidance was also applied in estimating the 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 levels of the fair value hierarchy are described below:
Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 - Inputs are quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable.
Level 3 - Quoted market prices are not available. Fair value is derived from valuation techniques in which one or more significant inputs or assumptions are unobservable. Where possible, valuation techniques incorporate observable market inputs that can be validated to external sources such as industry exchanges, including prices of energy and energy-related products.
Uncategorized - Investments that are measured at net asset value are not categorized within the fair value hierarchy.
Determination of Fair Value: The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 4, "Derivative Instruments," Note 5, "Marketable Securities," and Note 11, "Fair Value of Financial Instruments," to the financial statements.
20
E. Other Income, Net
The components of Other Income, Net on the statements of income were as follows:
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
AFUDC Equity (1) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity in Earnings of Unconsolidated Affiliates | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment Income/(Loss) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Income, Net | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| AFUDC Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Equity in Earnings of Unconsolidated Affiliates | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment (Loss)/Income | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||||||||||||||||||||||
Other (2) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Income, Net | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
(1) As part of the annual FERC Transmission Formula Rate protocols process, the AFUDC calculation methodology utilized in formula transmission rates was updated effective January 1, 2025. This calculation methodology resulted in an adjustment to the AFUDC equity and AFUDC debt amounts recognized on the statement of income in the third quarter of 2025 in accordance with the AFUDC policy.
(2) In the second quarter of 2026, Eversource completed the sale of an intangible asset. The transaction resulted in proceeds of $36.0 million, which was recognized as a gain on sale within Other Income. The gain is reflected in the Parent and Other Companies segment and the cash proceeds from sale are presented within Other investing activities on the statement of cash flows.
F. Other Taxes
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| (Millions of Dollars) | September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||
| Eversource | $ | $ | $ | $ | |||||||||||||||||||
| CL&P | |||||||||||||||||||||||
G. Supplemental Cash Flow Information
Non-cash investing activities include plant additions included in Accounts Payable as follows:
| (Millions of Dollars) | As of September 30, 2026 | As of September 30, 2025 | |||||||||
| Eversource | $ | $ | |||||||||
| CL&P | |||||||||||
| NSTAR Electric | |||||||||||
| PSNH | |||||||||||
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The following table reconciles cash and cash equivalents as reported on the balance sheets to the cash, cash equivalents and restricted cash balance as reported on the statements of cash flows:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents as reported on the Balance Sheets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Restricted cash included in: | |||||||||||||||||||||||||||||||||||||||||||||||
| Special Deposits | |||||||||||||||||||||||||||||||||||||||||||||||
| Marketable Securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Other Long-Term Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, cash held in escrow accounts, 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 restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations.
Eversource’s restricted cash also includes an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley established under the terms of an EGMA 2020 settlement agreement. This restricted cash held in escrow accounts included $7.2 million and $21.4 million recorded as short-term in Special Deposits as of September 30, 2026 and December 31, 2025, respectively.
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, including 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 and the regulatory assets that have been recorded. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the applicable costs would be charged to net income in the period in which the determination is made.
Regulatory Assets: The components of regulatory assets were as follows:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Storm Costs, Net | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Regulatory Tracking Mechanisms | |||||||||||||||||||||||||||||||||||||||||||||||
| Benefit Costs | |||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes, Net | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Contracts | |||||||||||||||||||||||||||||||||||||||||||||||
| Securitized Stranded Costs | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of Removal | |||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill-related | |||||||||||||||||||||||||||||||||||||||||||||||
| Asset Retirement Obligations | |||||||||||||||||||||||||||||||||||||||||||||||
| Environmental Remediation Costs | |||||||||||||||||||||||||||||||||||||||||||||||
| EGMA Acquisition and Integration Costs | |||||||||||||||||||||||||||||||||||||||||||||||
| Other Regulatory Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Regulatory Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Current Portion | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Long-Term Regulatory Assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
On June 30, 2026, Eversource completed the sale of Aquarion. Regulatory Assets as of December 31, 2025 included in the table above related to the Water Distribution Business were $234.7 million. For further information, see Note 18, "Sale of Aquarion Water Distribution Business."
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CL&P Storm Proceeding: On March 28, 2024, PURA established a prudency review proceeding to evaluate costs reported by CL&P for catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023. Storm costs requested by CL&P for this six-year period totaled $974.2 million. CL&P additionally requested approval to recover carrying costs calculated at the weighted average cost of capital on the deferred storm costs totaling $397 million. These carrying costs reflect CL&P’s actual financing costs on the unrecovered storm costs from the date the deferred storm costs were incurred through June 1, 2027, the expected date of securitization. The $397 million of carrying costs have not been deferred on the balance sheet.
On July 29, 2026, PURA issued a final decision approving $869.4 million of prudently incurred catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023 and postponing review of $63.3 million of storm costs to a future proceeding. The final decision resulted in a disallowance of $40.8 million of storm costs that were previously deferred as a regulatory asset on CL&P’s balance sheet. The disallowance was recorded as an increase to Operations and Maintenance expense on CL&P’s statement of income in the third quarter of 2026. Total approved storm costs to be considered by PURA for future securitization are $667.9 million, which excludes $101.5 million of costs that were previously collected from customers through base distribution rates and $100 million approved in the April 2026 RAM proceeding to be collected through the CTA rate from May 1, 2026 through April 30, 2027.
PURA did not approve the recovery of carrying costs from the date the deferred storm costs were incurred through the date of the final decision. PURA approved the accrual of carrying costs on the unrecovered, approved storm costs beginning on the date of the final decision through the date of securitization or other recovery authorized in the CL&P distribution rate case proceeding. On October 15, 2026, CL&P filed an appeal in Connecticut Superior Court challenging certain aspects of PURA's final decision, including PURA's denial of recovery of carrying costs on deferred storm costs incurred prior to the date of the final decision and certain disallowed storm restoration costs. The appeal remains pending.
On May 4, 2026, PURA issued a notice of proceeding to consider whether the issuance of rate reduction bonds for the securitization of approved storm costs is in the best interest of rate payers. A final decision in this proceeding is expected on January 20, 2027.
Regulatory Costs in Other Long-Term Assets: Eversource's regulated companies had $252.8 million (including $116.2 million for CL&P, $53.0 million for NSTAR Electric and $15.2 million for PSNH) and $244.2 million (including $127.1 million for CL&P, $51.0 million for NSTAR Electric and $5.4 million for PSNH) of additional regulatory costs not yet specifically approved as of September 30, 2026 and December 31, 2025, respectively, that were included in Other Long-Term Assets on the balance sheets. These amounts will be reclassified to Regulatory Assets upon approval by the applicable regulatory agency. 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. As of September 30, 2026 and December 31, 2025, these regulatory costs included $122.2 million (including $45.9 million for CL&P and $37.0 million for NSTAR Electric) and $123.2 million (including $57.0 million for CL&P and $34.0 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs.
Regulatory Liabilities: The components of regulatory liabilities were as follows:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| EDIT due to Tax Cuts and Jobs Act of 2017 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Regulatory Tracking Mechanisms | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of Removal | |||||||||||||||||||||||||||||||||||||||||||||||
| Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP | |||||||||||||||||||||||||||||||||||||||||||||||
| AFUDC - Transmission | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Contract | |||||||||||||||||||||||||||||||||||||||||||||||
| Benefit Costs | |||||||||||||||||||||||||||||||||||||||||||||||
| Other Regulatory Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Regulatory Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Current Portion | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Long-Term Regulatory Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
On June 30, 2026, Eversource completed the sale of Aquarion. Regulatory Liabilities as of December 31, 2025 included in the table above related to the Water Distribution Business were $150.8 million. For further information, see Note 18, "Sale of Aquarion Water Distribution Business."
FERC ROE Complaints: As of September 30, 2026, Eversource has a regulatory liability for revenues subject to refund of $63.0 million (pre-tax) as a result of the March 19, 2026 FERC decision in the FERC ROE complaint proceedings, which is reflected within Regulatory Tracking Mechanisms in the table above. The regulatory liability totaled $30.2 million for CL&P, $25.0 million for NSTAR Electric, and $7.8 million for PSNH. The liability recorded reflects the difference between the billed ROE and the replacement ROE for the first complaint period, including interest. Eversource does not have any other reserves recorded for the other complaint periods, as these remaining complaints were dismissed in the decision. See Note 9C, "Commitments and Contingencies – FERC ROE Complaints," for further information on the FERC ROE decision.
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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 September 30, 2026 | As of December 31, 2025 | |||||||||
| (Millions of Dollars) | |||||||||||
| Distribution - Electric | $ | $ | |||||||||
| Distribution - Natural Gas | |||||||||||
| Transmission - Electric | |||||||||||
Distribution - Water (1) | |||||||||||
| Solar | |||||||||||
| Utility | |||||||||||
Other (2) | |||||||||||
| Property, Plant and Equipment, Gross | |||||||||||
| Less: Accumulated Depreciation | |||||||||||
| Utility | ( | ( | |||||||||
| Other | ( | ( | |||||||||
| Total Accumulated Depreciation | ( | ( | |||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Construction Work in Progress | |||||||||||
| Total Property, Plant and Equipment, Net | $ | $ | |||||||||
(1) On June 30, 2026, Eversource completed the sale of Aquarion. For further information, see Note 18, "Sale of Aquarion Water Distribution Business."
(2) These assets are primarily comprised of computer software, hardware and equipment at Eversource Service and buildings at The Rocky River Realty Company.
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||
| Distribution - Electric | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Transmission - Electric | |||||||||||||||||||||||||||||||||||
| Solar | |||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Gross | |||||||||||||||||||||||||||||||||||
Less: Accumulated Depreciation | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | |||||||||||||||||||||||||||||||||||
Construction Work in Progress | |||||||||||||||||||||||||||||||||||
Total Property, Plant and Equipment, Net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
As part of the 2020 rate settlement approved by the DPU that enabled the acquisition of EGMA, the DPU required a rate base offset to be recorded, which would be amortized over time and be periodically adjusted in future rate filings for the build-up of deferred tax liabilities. The unamortized rate base offset is reflected as a reduction to Property, Plant and Equipment, Net on Eversource’s balance sheet. As of September 30, 2026, the rate base offset has been reduced by $40.0 million to reflect the build-up of the new deferred tax liabilities. The rate base offset reduction resulted in a reduction to depreciation expense on Eversource’s income statement in the third quarter of 2026. This benefit is presented within Eversource Parent and Other Companies in Note 17, “Segment Information,” consistent with past presentation of acquisition-related items.
4. DERIVATIVE INSTRUMENTS
The electric and natural gas companies enter into contracts to purchase and procure energy and energy-related products for their customers, which are subject to price volatility. 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 electricity or natural gas is delivered.
Derivative contracts that are not designated as normal are recorded at fair value as derivative assets or 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 amounts are recovered from, or refunded to, customers in their respective energy supply rates. The mark to market unrealized losses or gains of these derivative contracts are deferred as regulatory assets (if the derivative is a liability) or as regulatory liabilities (if the derivative is an asset).
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The following table presents the fair values of derivative contracts, categorized by risk type, which are recorded as current or long-term derivative assets or liabilities:
NSTAR Electric (Millions of Dollars) | Fair Value Hierarchy | Commodity Supply and Price Risk Management | |||||||||||||||
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||
| Current Derivative Assets | Level 3 | $ | $ | ||||||||||||||
| Long-Term Derivative Assets | Level 3 | ||||||||||||||||
| Long-Term Derivative Liabilities | Level 3 | ( | |||||||||||||||
Derivative Contracts at Fair Value with Offsetting Regulatory Amounts
Commodity Supply and Price Risk Management: In accordance with Massachusetts clean energy legislation and under the Massachusetts Clean Energy 83D procurement, in June 2018, NSTAR Electric entered into a 20-year power purchase agreement for the purchase of renewable hydroelectric energy and renewable energy attributes from Hydro-Québec. The agreement requires NSTAR Electric to purchase 579 MW of energy per hour through January 2046. Upon notice of commercial operation of the transmission line needed to deliver this energy, received on December 31, 2025, the power purchase agreement was marked to market on the balance sheet. As of September 30, 2026, the current and long-term portions of the contract were recorded as derivative assets and were offset by current and long-term regulatory liabilities reflecting a full refund to NSTAR Electric’s customers. As of December 31, 2025, the current and long-term portions of the contract were recorded as derivative assets and derivative liabilities, respectively, and were offset by current and long-term regulatory liabilities and regulatory assets, respectively, reflecting full recovery from or refund to NSTAR Electric’s customers. As of September 30, 2026, the long-term portion of the contract has changed from a derivative liability to an asset due to an increase in forward energy prices.
Fair Value Measurements of Derivative Instruments
The fair value of derivative contracts utilizes both observable and unobservable inputs. The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions related to exit price. Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding future energy and energy-related prices, the timing and likelihood of scheduled payments, selection of a discount rate, 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 also give consideration to premiums or discounts that would be required by a market participant to arrive at an exit price. Future energy prices that are not quoted in an active market are based on available market data with assumptions of future market dynamics and inflation to address the full time period of the contract. Fair value measurements are prepared and reviewed by individuals with expertise in valuation techniques, pricing of energy-related products, and accounting requirements.
For NSTAR Electric’s derivative contract, unobservable inputs for future energy prices using a forward electricity bid price curve are significant to the valuation and are classified as Level 3. Level 3 unobservable inputs utilized in the valuation of NSTAR Electric’s power purchase agreement include energy prices as of September 30, 2026 ranging from $31.72 per MWh through $176.97 per MWh, or a weighted average of $64.91 per MWh, and as of December 31, 2025 ranging from $24.65 per MWh through $145.33 per MWh, or a weighted average of $53.44 per MWh, over the remaining contractual period through 2046.
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 in the following table.
NSTAR Electric (Millions of Dollars) | For the Three Months Ended | For the Nine Months Ended | |||||||||
| September 30, 2026 | September 30, 2026 | ||||||||||
| Derivatives, Net: | |||||||||||
| Fair Value as of Beginning of Period | $ | ( | $ | ( | |||||||
| Net Realized/Unrealized Gains Included in Regulatory Assets and Liabilities | |||||||||||
| Settlements | ( | ||||||||||
| Fair Value as of End of Period | $ | $ | |||||||||
5. MARKETABLE SECURITIES
Eversource’s marketable securities include the CYAPC and YAEC legally restricted trusts that each hold equity and available-for-sale debt securities to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities. Equity and available-for-sale debt marketable securities are recorded at fair value. CYAPC and YAEC’s spent nuclear fuel trusts are restricted and are classified in long-term Marketable Securities on the balance sheets.
Equity Securities: Eversource's equity securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of $169.1 million and $161.8 million as of September 30, 2026 and December 31, 2025, 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 long-term liabilities on the balance sheets, with no impact on the statements of income.
Eversource also holds a trust used to fund certain non-qualified executive benefits. As of September 30, 2026 and December 31, 2025, the securities held in this trust were valued at $3.2 million and $3.5 million, respectively, and were classified as Marketable Securities on the Eversource balance sheets. There were unrealized gains of $0.2 million for the nine months ended September 30, 2026, and there were unrealized losses of $0.8 million and $0.9 million for the three and nine months ended September 30, 2025, respectively, recorded in Other Income, Net, related to these equity securities.
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Available-for-Sale Debt Securities: The following is a summary of available-for-sale debt securities, which are held in CYAPC’s and YAEC’s spent nuclear fuel trusts:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Amortized Cost | Pre-Tax Unrealized Gains | Pre-Tax Unrealized Losses | Fair Value | Amortized Cost | Pre-Tax Unrealized Gains | Pre-Tax Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||||||||||
| Debt Securities | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Unrealized gains and losses for available-for-sale debt securities included in the CYAPC and YAEC spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to long-term liabilities on the balance sheets, with no impact on the statements of income.
As of September 30, 2026, the contractual maturities of available-for-sale debt securities were as follows:
Eversource (Millions of Dollars) | Amortized Cost | Fair Value | |||||||||
Less than one year | $ | $ | |||||||||
| One to five years | |||||||||||
| Six to ten years | |||||||||||
| Greater than ten years | |||||||||||
| Total Debt Securities | $ | $ | |||||||||
Realized Gains and Losses: Realized gains and losses are offset in long-term liabilities for CYAPC and YAEC and are recorded in Other Income, Net for Eversource's benefit trusts. Eversource utilizes the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts.
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 (Millions of Dollars) | As of September 30, 2026 | As of December 31, 2025 | |||||||||
| Level 1: | |||||||||||
| Mutual Funds and Equities | $ | $ | |||||||||
| Money Market Funds | |||||||||||
| Total Level 1 | $ | $ | |||||||||
| Level 2: | |||||||||||
| U.S. Government Issued Debt Securities (Agency and Treasury) | $ | $ | |||||||||
| Corporate Debt Securities | |||||||||||
| Asset-Backed Debt Securities | |||||||||||
| Municipal Bonds | |||||||||||
| Other Fixed Income Securities | |||||||||||
| Total Level 2 | $ | $ | |||||||||
| Total Marketable Securities | $ | $ | |||||||||
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 $2.00 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 EGMA are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2026, the revolving credit facility’s termination date was extended for additional year to October 11, 2031, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 billion commercial paper program.
26
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. Effective October 11, 2026, the revolving credit facility’s termination date was extended for one additional year to October 11, 2031, pursuant to the extension provisions contained in the existing credit agreement. This 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 | |||||||||||||||||||||||||||||||||
| September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||
| (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
| Eversource Parent Commercial Paper Program | $ | $ | $ | $ | % | % | |||||||||||||||||||||||||||||
| NSTAR Electric Commercial Paper Program | % | % | |||||||||||||||||||||||||||||||||
There were no
CL&P and PSNH have uncommitted line of credit agreements totaling $375 million and $250 million, respectively, all of which will expire in either May 2027, September 2027 or October 2027. There are no
Amounts outstanding under the commercial paper programs 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.
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 September 30, 2026 and December 31, 2025, there were intercompany loans from Eversource parent to PSNH of $2.1 million and $49.3 million, respectively. As of September 30, 2026, there were intercompany loans from Eversource parent to CL&P of $293.7 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. 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, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Sources and Uses of Cash: 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.
Long-Term Debt Issuance Authorizations: On May 6, 2026, the NHPUC approved PSNH’s request for authorization to issue up to $200.0 million in long-term debt through December 31, 2026. PSNH has utilized its long-term debt authorizations in place with the NHPUC. On July 17, 2026, NSTAR Electric filed a petition with the DPU requesting authorization to issue up to $3.2 billion in long-term debt through December 31, 2029. On September 30, 2026, EGMA filed a petition with the DPU requesting authorization to issue up to $550 million in long-term debt through December 31, 2029. On November 4, 2026, PURA approved CL&P’s request for authorization to issue up to $1.15 billion in long-term debt through December 31, 2027.
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Long-Term Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments:
| (Millions of Dollars) | Interest Rate | Issuance/(Repayment) | Issue Date or Repayment Date | Maturity Date | Use of Proceeds for Issuance/ Repayment Information | ||||||||||||||||||||||||
| NSTAR Electric Debentures | % | $ | May 2026 | May 2031 | Repaid | ||||||||||||||||||||||||
| NSTAR Electric Debentures | % | May 2026 | May 2036 | Repaid | |||||||||||||||||||||||||
| NSTAR Electric Debentures | % | ( | June 2026 | June 2026 | Paid at maturity | ||||||||||||||||||||||||
| NSTAR Electric Series H Senior Notes | % | ( | June 2026 | June 2026 | Paid at maturity | ||||||||||||||||||||||||
| PSNH Series X First Mortgage Bonds | % | June 2026 | October 2033 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||||||||
Eversource Parent Series A Junior Notes (1) | % | February 2026 | August 2056 | Repaid Series AA Senior Notes at maturity, repay Series U Senior Notes at maturity, repaid short-term debt, and for general corporate purposes | |||||||||||||||||||||||||
Eversource Parent Series B Junior Notes (2) | % | February 2026 | August 2056 | Repaid Series AA Senior Notes at maturity, repay Series U Senior Notes at maturity, repaid short-term debt, and for general corporate purposes | |||||||||||||||||||||||||
| Eversource Parent Series J Senior Notes | % | ( | March 2026 | March 2026 | Paid at maturity | ||||||||||||||||||||||||
| Eversource Parent Series AA Senior Notes | % | ( | May 2026 | May 2026 | Paid at maturity | ||||||||||||||||||||||||
| Eversource Parent Series U Senior Notes | % | ( | August 2026 | August 2026 | Paid at maturity | ||||||||||||||||||||||||
| NSTAR Gas Series AA First Mortgage Bonds | % | October 2026 | October 2036 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||||
| Yankee Gas Series AA First Mortgage Bonds | % | July 2026 | July 2031 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||||
| Yankee Gas Series BB First Mortgage Bonds | % | July 2026 | July 2036 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||||
| Yankee Gas Series S First Mortgage Bonds | % | ( | August 2026 | August 2026 | Paid at maturity | ||||||||||||||||||||||||
| EGMA Series G First Mortgage Bonds | % | July 2026 | July 2031 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||||
(1) The Eversource Parent Series A Junior Subordinated Notes bear interest at a fixed rate of 6.10 percent per year from the issuance date of February 26, 2026 to August 14, 2031. Thereafter, the interest rate resets every five years , commencing on August 15, 2031, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.521 percent.
(2) The Eversource Parent Series B Junior Subordinated Notes bear interest at a fixed rate of 6.35 percent per year from the issuance date of February 26, 2026 to August 14, 2036. Thereafter, the interest rate resets every five years , commencing on August 15, 2036, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.325 percent.
7. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES
Rate Reduction Bonds: In May 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 in January 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.
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.
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The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:
| (Millions of Dollars) | |||||||||||
| PSNH Balance Sheets: | As of September 30, 2026 | As of December 31, 2025 | |||||||||
| Restricted Cash - Current Portion (included in Special Deposits) | $ | $ | |||||||||
| Restricted Cash - Long-Term Portion (included in Other Long-Term Assets) | |||||||||||
| Securitized Stranded Cost (included in Regulatory Assets) | |||||||||||
| Other Regulatory Liabilities (included in Regulatory Liabilities) | |||||||||||
| Accrued Interest (included in Other Current Liabilities) | |||||||||||
| Rate Reduction Bonds - Current Portion | |||||||||||
| Rate Reduction Bonds - Long-Term Portion | |||||||||||
(Millions of Dollars) PSNH Income Statements: | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||
| Amortization of RRB Principal (included in Amortization of Regulatory Assets/(Liabilities), Net) | $ | $ | $ | $ | |||||||||||||||||||
| Interest Expense on RRB Principal (included in Interest Expense) | |||||||||||||||||||||||
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 plan expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets/(liabilities) for future recovery or refund, are shown below. The service cost component of net periodic benefit plan 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 plan expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP expense/(income) reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.
| Pension and SERP | PBOP | ||||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended September 30, 2026 | For the Three Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Service Cost | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Interest Cost | |||||||||||||||||||||||||||||||||||||||||||||||
| Expected Return on Plan Assets | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Actuarial Loss | |||||||||||||||||||||||||||||||||||||||||||||||
| Prior Service Cost/(Credit) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Total Net Periodic Benefit Plan Income | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
| Intercompany Income Allocations | N/A | $ | ( | $ | ( | $ | ( | N/A | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||
| Pension and SERP | PBOP | ||||||||||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2026 | For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Service Cost | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Interest Cost | |||||||||||||||||||||||||||||||||||||||||||||||
| Expected Return on Plan Assets | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Actuarial Loss/(Gain) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Prior Service Cost/(Credit) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Total Net Periodic Benefit Plan Income | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
| Intercompany Income Allocations | N/A | $ | ( | $ | ( | $ | ( | N/A | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||
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| Pension and SERP | PBOP | ||||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Service Cost | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Interest Cost | |||||||||||||||||||||||||||||||||||||||||||||||
| Expected Return on Plan Assets | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Actuarial Loss/(Gain) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Prior Service Cost/(Credit) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Total Net Periodic Benefit Plan Income | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
| Intercompany Income Allocations | N/A | $ | ( | $ | ( | $ | N/A | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||
| Pension and SERP | PBOP | ||||||||||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Eversource | CL&P | NSTAR Electric | PSNH | Eversource | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||
| Service Cost | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Interest Cost | |||||||||||||||||||||||||||||||||||||||||||||||
| Expected Return on Plan Assets | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Actuarial Loss/(Gain) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Prior Service Cost/(Credit) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Settlement Loss | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Net Periodic Benefit Plan Income | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
| Intercompany Income Allocations | N/A | $ | ( | $ | ( | $ | N/A | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||
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, maintenance and inspections, preliminary site work or site assessment is being performed are as follows:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||
| Number of Sites | Reserve (in millions) | Number of Sites | Reserve (in millions) | ||||||||||||||||||||
| Eversource | $ | $ | |||||||||||||||||||||
| CL&P | |||||||||||||||||||||||
| NSTAR Electric | |||||||||||||||||||||||
| PSNH | |||||||||||||||||||||||
Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured natural 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. Eversource’s reserve balances related to these former MGP sites were $146.5 million and $140.9 million as of September 30, 2026 and December 31, 2025, 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.
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Guarantees issued on behalf of unconsolidated entities, including equity method ownership interests, for which Eversource parent is the guarantor, are recorded at fair value as a liability on the balance sheet at the inception of the guarantee. The fair value of guarantees issued on behalf of unconsolidated entities are recorded within Other Long-Term Liabilities on the balance sheet, and were $0.5 million and $1.3 million as of September 30, 2026 and December 31, 2025, respectively. Eversource regularly reviews performance risk under these guarantee arrangements, and believes the likelihood of payments being required under the guarantees is remote. 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.
On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to affiliates of Global Infrastructure Partners (GIP). Under the agreement with GIP, Eversource’s existing and certain additional credit support obligations for Revolution Wind are expected to roll off as the project completes construction. On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted. Under the agreement with Ørsted, Eversource’s existing credit support obligations for Sunrise Wind were either terminated or indemnified by Ørsted as a result of the sale.
The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties, and primarily relates to its previously-owned offshore wind investments:
| As of September 30, 2026 | ||||||||||||||
| Company (Obligor) | Description | Maximum Exposure (in millions) | ||||||||||||
| Revolution Wind, LLC and TurbineCo, LLC | Offshore wind construction-related purchase agreements with third-party contractors (1) | $ | ||||||||||||
| Eversource Investment LLC, Eversource Investment Service Company LLC and South Fork Class B Member, LLC | Offshore wind funding and indemnification obligations (2) | |||||||||||||
| Eversource Investment LLC | Revolution Wind Tax Positions (3) | |||||||||||||
| Eversource TEI LLC | South Fork Wind Tax Equity (4) | |||||||||||||
| South Fork Wind, LLC | Power Purchase Agreement Security (5) | |||||||||||||
| Various Eversource subsidiaries | Surety bonds (6) | |||||||||||||
(1) Eversource parent issued guarantees on behalf of its previously 50 percent-owned affiliate, Revolution Wind, LLC, and on behalf of TurbineCo, LLC (successor in interest to North East Offshore, LLC (NEO)), under which Eversource parent agreed to guarantee each entity’s performance of obligations under certain construction-related purchase agreements with third-party contractors, in an aggregate amount not to exceed $848.3 million. The aggregate amount is reduced as performance is satisfied. Eversource parent’s obligations under the guarantees expire upon the earlier of (i) dates ranging between October 2027 and November 2027 and (ii) full performance of the guaranteed obligations.
(2) Eversource parent issued guarantees on behalf of its wholly-owned subsidiary Eversource Investment LLC (EI), which held Eversource's previous investments in offshore wind-related equity method investments until sale, and on behalf of its previously 50 percent-owned affiliate, South Fork Class B Member, LLC, whereby Eversource parent will guarantee each entity’s performance of certain funding obligations of the South Fork and Revolution Wind projects. Eversource parent also guaranteed certain indemnification obligations of EI associated with third-party credit support for EI’s investment in NEO. On September 30, 2024, Eversource parent issued a guaranty on behalf of its wholly-owned subsidiary, Eversource Investment Service Company LLC, whereby Eversource parent will guarantee Eversource Investment Service Company LLC’s performance of certain indemnification obligations during the onshore construction phase of the Revolution Wind project, in an amount not to exceed $100.0 million. These guarantees will not exceed $1.62 billion and are reduced as performance is satisfied. Guarantees expire upon the full performance of the guaranteed obligations.
(3) Eversource parent issued a guaranty on behalf of EI in an amount not to exceed $900 million, which was subsequently reduced to an amount not to exceed $300 million, to GIP in order to support certain tax positions related to Revolution Wind project through June 30, 2035.
(4) Eversource parent issued a guarantee on behalf of its wholly-owned subsidiary, Eversource TEI LLC, whereby Eversource parent will guarantee Eversource TEI LLC’s performance of certain obligations, in an amount not to exceed $50.0 million, in connection with any remaining obligations under the LLC agreement. Eversource parent’s obligations expire upon the full performance of the guaranteed obligations.
(5) Eversource parent issued a guarantee on behalf of its previously 50 percent-owned affiliate, South Fork Wind, LLC, whereby Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations, in an amount not to exceed $7.1 million, under a Power Purchase Agreement between the Long Island Power Authority and South Fork Wind, LLC (the Agreement). The guarantee expires upon the later of (i) the end of the Agreement term, January 2044, with the option to extend to January 2049 and (ii) full performance of the guaranteed obligations.
(6) Surety bonds expire in 2026 and 2027. 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.
Eversource parent entered into a guarantee on behalf of EI, under which Eversource parent would guarantee EI’s obligations under a letter of credit facility with a financial institution that EI may request in an aggregate amount of up to approximately $25 million. As of September 30, 2026, there are no letters of credit issued under this guarantee. The guarantee will remain in effect until full performance of the guaranteed obligations.
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On September 30, 2024, Eversource entered into an agreement with GIP and Ørsted to contingently provide future credit support up to a maximum of $850 million in guarantees, if required, to support third-party tax equity financing for Revolution Wind.
Eversource parent issued three guarantees in October 2026 on behalf of Revolution Wind TE Holdings, LLC. Eversource’s maximum exposure in connection with these guarantees is $972.0 million in order to support the sale of investment tax credits related to the Revolution Wind project.
C. FERC ROE Complaints
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, FERC issued Opinion No. 531-A and 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. The NETOs filed an appeal of this decision, which was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit Court). All amounts associated with Opinion No. 531-A on the first complaint period lowering the base ROE of 11.14 percent to 10.57 percent were refunded by 2015.
On October 16, 2018, FERC issued an order on all four complaints describing how it intended to address the issues that were remanded by the D.C. Circuit 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. 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, the preliminary just and reasonable base ROE for the NETOs, which FERC concludes are of average financial risk, is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.
On March 19, 2026, FERC issued Opinion No. 594 in the NETO ROE proceedings, attempting to resolve all four pending complaints dating back to 2011 and to respond to the D.C. Circuit Court’s April 14, 2017 decision vacating FERC’s prior decision in the first complaint, which found that the FERC had failed to (1) make an explicit, reasoned finding that the then-existing 11.14 percent base ROE was unjust and unreasonable before imposing a replacement ROE, and (2) adequately justify placing the ROE at the midpoint of the upper half of the zone of reasonableness.
In Opinion No. 594, FERC applied a revised ROE methodology that it believes is consistent with its 2024 ROE Order on remand to the Mid-continent ISO (MISO) transmission owners, to satisfy the first step in the FERC process to revise the ROE in a Section 206 proceeding by finding the NETOs’ base ROE of 11.14 percent is unjust and unreasonable. FERC then found the just and reasonable replacement base ROE to be 9.57 percent with an incentive cap of 12.09 percent for the first complaint period (October 1, 2011 – December 31, 2012) and applied this same ROE prospectively, effective October 16, 2014, the date of the first complaint order vacated by the D.C. Circuit Court. FERC directed the NETOs to issue refunds with interest for the applicable refund periods. This decision decreases the allowed base ROE of 10.57 percent with an incentive cap of 11.74 percent to a base ROE of 9.57 percent with an incentive cap of 12.09 percent. The second, third and fourth NETO ROE complaints were dismissed as part of the decision, and FERC did not direct any refunds for the periods associated with those proceedings.
On April 14, 2026, FERC granted an extension of the refund deadline to May 20, 2027. On April 14, 2026, Eversource and Avangrid filed a joint motion requesting a stay of the refund obligation applicable to the period October 16, 2014 through March 19, 2026 (retroactive refund period) with the D.C. Circuit Court. On August 28, 2026, the D.C. Circuit Court issued an order denying the joint motion requesting a stay of the retroactive refund period.
On April 20, 2026, the NETOs submitted to FERC a request for rehearing of Opinion No. 594 highlighting several deficiencies within the order. On May 21, 2026, FERC issued an order denying the request for rehearing by operation of law. On September 24, 2026, FERC issued its substantive order on rehearing, Opinion No. 594-A, addressing the merits of arguments raised by the NETOs and sustaining the result determined in Opinion No. 594.
On June 5, 2026, the NETOs filed an appeal of Opinion No. 594 and FERC’s denial of the rehearing with the D.C. Circuit Court. On October 19, 2026, the D.C. Circuit Court granted a joint unopposed motion on proposed briefing format with briefing to begin on November 13, 2026 and concluding on April 2, 2027. The NETOs’ appeal of Opinion No. 594 includes but is not limited to the unlawful retroactive refund period with interest extended beyond the 15-month statutory relief authority granted in Section 206(b) of the Federal Power Act, the FERC not proving that the previously approved 11.14 percent base ROE was unjust and unreasonable as remanded by the D.C. Circuit Court, the flawed methodologies applied in setting the replacement 9.57 percent base ROE, failing to comply with the requirement for FERC to use data that is relevant to the current period at the time of the decision for the NETOs’ prospective ROE, and procedural issues related to overlapping complaints. Refunds to wholesale transmission customers are currently required to be issued by May 2027, which would be prior to a ruling by the D.C. Circuit Court.
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On April 30, 2026, the NETOs submitted a Federal Power Act Section 205 filing to FERC, which is a formal request by a public utility to change the ROE rate prospectively and requires the utility to prove the proposed change is just and reasonable. The NETOs proposed a replacement base ROE of 11.39 percent, resulting in an incentive cap of 12.89 percent, which is based on current market data utilizing FERC’s ROE methodology from Opinion No. 594. The NETOs requested an effective date of June 30, 2026. On June 29, 2026, FERC issued an order finding the proposed ROE has not been shown to be just and reasonable, suspending the increase until November 30, 2026, subject to refund, and initiating paper hearing procedures. Initial briefs were submitted on August 28, 2026, and reply briefs were submitted on September 28, 2026.
As a result of the March 19, 2026 FERC decision, Eversource determined that a refund is probable and that a range of refunds is reasonably estimable. Based on Eversource’s current evaluation of the relevant facts and circumstances, the Company has estimated a range of reasonably possible pre-tax refunds of $63.0 million to approximately $965 million, which includes a range of interest of $31.1 million to $288 million, as of September 30, 2026. The estimated range for CL&P is $30.2 million to approximately $392 million, for NSTAR Electric is $25.0 million to approximately $401 million, and for PSNH is $7.8 million to approximately $172 million as of September 30, 2026. The low end of the estimated range reflects estimated refunds associated with the fifteen-month first complaint period, including interest. The high end of the Company’s estimated range includes the refunds associated with the first complaint period, as well as estimated refunds for the retroactive refund period from October 16, 2014 through March 19, 2026, including interest, in the pre-tax amount of $902 million. The range of refund estimates use the 9.57 percent replacement ROE and incentive cap of 12.09 percent prescribed in the March 19, 2026 FERC decision.
The Company has recorded a current regulatory liability for revenues subject to refund of $63.0 million (pre-tax) as of September 30, 2026, which reflects the difference between the billed 10.57 percent base ROE and the new 9.57 percent base ROE for the first complaint period, including interest. The regulatory liability represents the low end of the range, as no amount within the range is considered a better estimate as the Company is continuing to work through the refund calculation methodology. Eversource and the other NETOs are continuing to address the complexities of the refund calculations over the extensive time period as well as the amount and timing of refunds to transmission customers that must be coordinated with the other NETOs and the ISO-NE, which have not yet been finalized.
The $63.0 million liability consists of $30.2 million, $25.0 million and $7.8 million for CL&P, NSTAR Electric and PSNH, respectively, of which $14.9 million, $12.4 million and $3.8 million is accrued interest, respectively, as of September 30, 2026. The revenues subject to refund were recorded as a reduction to Operating Revenues, and the accrued interest was recorded as an increase to Interest Expense in the statements of income. Eversource does not have any other reserves recorded for the other complaint periods, as these remaining complaints were dismissed.
Eversource believes it has sound arguments against the refunds for the retroactive refund period based on the Company’s legal assessment of the Federal Power Act and the legal and regulatory deficiencies underlying the March 19, 2026 FERC decision, as identified in the NETOs’ appeal filed with the D.C. Circuit Court, including that the retroactive application is inconsistent with the statutory limitations under the Federal Power Act. Eversource continues to challenge the March 19, 2026 FERC decision and cannot predict the ultimate outcome of this proceeding or its timing, but Eversource believes that a court decision could be received in the second half of 2027.
The Company’s estimates are based on currently available information. The Company has accrued $63.0 million as of September 30, 2026, representing the low end of the estimated range of probable liabilities. The Company continues to assess its legal position, the complexities associated with the refund calculation methodology, its extensive coordination with the NETOs and ISO-NE for the processing of long-dated refunds, and the timing of these required refunds. While the Company believes it has sound legal arguments challenging the March 2026 FERC decision, the ongoing refund calculation and developments in the refund process are expected to result in recording additional liabilities related to the retroactive refund period prior to the conclusion of the appellate proceeding. If there is no court or FERC action or further delay as a result of coordination with ISO-NE, then the Company will commence its refunds early in 2027 through the ISO-NE resettlement process. The Company expects to record a liability for the retroactive refund period as the refund calculations are finalized. Due to the uncertainties of the calculations described above, the refund amount for the retroactive period is not reasonably estimable as of September 30, 2026. The ultimate amount recognized may exceed the amount accrued by up to approximately $900 million and could have a material impact on the financial condition and results of operations.
D. 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. 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, III, and IV of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2016, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.
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DOE Phase V Damages – In March 2021, the Yankee Companies filed Phase V lawsuits against the DOE seeking damages for its continued failure to accept spent nuclear fuel, later expanding the claims to include 2021 costs, bringing total claimed damages to $153.5 million. The parties reached a $145 million agreement in principle to settle the Phase V complaint, approved in November 2024. The Department of Justice filed a notice of appeal in January 2025 on an issue outside the scope of the settlement, which was decided by the Federal Circuit Court on September 4, 2026, affirming the damages awarded by the Court of Federal Claims. On November 4, 2026 CYAPC, YAEC and MYAPC received proceeds of $52.8 million, $43.8 million and $48.4 million, respectively.
DOE Phase VI Damages – On March 31, 2026, each of the Yankee Companies filed a sixth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies are seeking monetary damages for CYAPC, YAEC and MYAPC, resulting from the DOE’s failure to begin accepting spent nuclear fuel for disposal covering the years from 2022 to 2025 (DOE Phase VI).
E. Offshore Wind Sale and Contingent Liability
On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted for adjusted proceeds of $152 million. Ørsted paid Eversource $118 million at the closing of the sale transaction and remaining proceeds of $34 million will be paid after onshore construction is completed and certain other construction milestones are achieved. With completion of the sale, Eversource does not have any ongoing financial obligations associated with Sunrise Wind.
On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP for adjusted gross proceeds of $745 million, which were received at closing. As part of the sale, Eversource and GIP agreed to make certain post-closing purchase price adjustment payments that will impact the final purchase price. The post-closing purchase price adjustment payments include cost sharing obligations that require Eversource to share equally in GIP’s funding obligations up to an effective cap of approximately $240 million of incremental capital expenditure overruns incurred during the construction phase for Revolution Wind, after which Eversource will have responsibility for GIP’s obligations for any additional capital expenditure overruns in excess of this amount. The purchase price is also subject to post-closing adjustments as a result of final project economics, which includes Eversource’s obligation to maintain GIP’s internal rate of return through the construction period for each project as specified in the agreement.
Upon the completion of the sales in 2024, Eversource recorded a contingent liability of $365 million, reflecting its estimate of the future obligations under the terms of the sale to GIP. The total sales proceeds were compared to the carrying value of the investments, including the estimate of liability for-post-closing adjustment payments to GIP, and Eversource recognized an aggregate after-tax loss on the sales of its offshore wind investments of $524 million, which included a net $60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses in 2024.
In the third quarter of 2025, Eversource received an updated report on the construction status of Revolution Wind, which included revised projections of total construction costs. The revised cost projections reflected known and quantifiable cost increases, including those associated with the impacts of damage to the wind turbine installation vessel, insurance costs, tariff impacts, and costs incurred as a result of the stop-work order for Revolution Wind received on August 22, 2025 from the Bureau of Ocean Energy Management that halted all offshore wind construction activities through September 22, 2025. Based on those developments, Eversource recognized a pre-tax charge of $284 million in the third quarter of 2025 as a result of the aggregate impact of these items to increase the liability for purchase price adjustments associated with the offshore wind projects.
In the second quarter of 2026, Eversource received revised projections of total construction costs associated with Revolution Wind, which included quantifiable cost increases. As a result, Eversource recognized a pre-tax charge of $194 million in the second quarter of 2026 to increase the liability for purchase price adjustments associated with the Revolution Wind project.
Eversource continually evaluates the contingent liability based on the latest available information. Based on the most recent updates on the construction status of Revolution Wind and other information currently available, Eversource believes that the contingent liability balance as of September 30, 2026 is an adequate estimate to cover this contingent liability for purchase price adjustments. As of September 30, 2026 and December 31, 2025, the contingent liability totaled $409.2 million and $448.2 million, respectively, and is recorded as a current liability on Eversource’s balance sheets, based upon the timing of expected payments to GIP. Payments made in the first nine months of 2026 and 2025 of $233.0 million and $141.3 million, respectively, reduced the contingent liability and were reflected within investing activities on the statements of cash flows. Payments made in 2026 related to cost overruns for the Revolution Wind project paid to GIP, and payments made in 2025 related to a purchase price adjustment payment related to the South Fork Wind project paid to GIP, cost overruns for the Revolution Wind project paid to GIP, and insurance payments. South Fork Wind has achieved commercial operation, and Eversource made a purchase price adjustment payment related to this project in June 2025. All matters relating to South Fork Wind have been resolved with no material impacts.
Eversource relies on information that it receives from the project owners for the construction-related, delay-related, and insurance-related costs of Revolution Wind. Eversource uses its judgment to adjust, as needed, its expected obligations to GIP. New information or future developments that arise will necessitate a reassessment of the estimated liability to GIP. The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted. In November 2026, the project owners announced construction is complete for Revolution Wind. Under the terms of the purchase and sale agreement, the obligation to GIP for the post-closing adjustment will be determined based on the project’s completion date as defined under the agreement. The reconciliation process for the post-closing adjustment is expected to occur in 2027.
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Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events. Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the timing and extent of construction delays, which would impact the final project economics including the obligation to maintain GIP’s internal rate of return through the construction period specified in the purchase price adjustment, and the eligibility for federal investment tax credits for Revolution Wind at a value lower than assumed and included in the purchase price. The purchase price of Revolution Wind included the value related to a 40 percent level of federal investment tax credits. A change in the expected value or qualification of investment tax credits could result in a significant loss in a future period.
It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, there could be additional increases to the offshore wind contingent liability, which could be material. The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.
Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.
F. Leases
In the third quarter of 2026, EGMA entered into a land and building finance lease that is expected to commence in 2027. The lease contains a purchase option that the Company has determined is probable of being executed. In accordance with the accounting guidance for leases, the Company will recognize the right-of-use asset and corresponding lease liability, and will assess the purchase option as part of the lease fair value upon commencement. As of September 30, 2026, the lease agreement totaled $19.1 million and the estimated purchase option was $19.3 million.
10. INCOME TAXES
In the third quarter of 2026, as part of the 2025 tax return-to-provision process, Eversource recorded benefits associated with return true-ups of $41 million. The adjustment includes true-ups to state income taxes of $26 million as well as net operating loss carryforward adjustments of $15 million.
In the third quarter of 2025, as part of filing its 2024 tax return-to-provision process, Eversource partially reversed a valuation allowance recorded on deferred tax assets associated with the loss recorded from the offshore wind investments and recorded a benefit of $165 million as it reconciled the positions on the tax return to what was estimated as of December 31, 2024. The adjustment to the valuation allowance was required based on the reconciling of previously recorded tax losses to amounts included in applicable partnership income tax returns. The adjustment resulted from changes in tax estimates based on information from the partnership tax returns received in the third quarter of 2025. Eversource also recognized state tax benefits and certain tax credits of $118 million as part of the 2024 tax return-to-provision process. These adjustments totaling $283 million were recorded as a reduction to income tax expense on the statement of income in the third quarter of 2025.
11. 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 Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||
| As of September 30, 2026: | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock Not Subject to Mandatory Redemption | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Long-Term Debt | |||||||||||||||||||||||||||||||||||||||||||||||
| Rate Reduction Bonds | |||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025: | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock Not Subject to Mandatory Redemption | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Long-Term Debt | |||||||||||||||||||||||||||||||||||||||||||||||
| Rate Reduction Bonds | |||||||||||||||||||||||||||||||||||||||||||||||
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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12. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)
The changes in accumulated other comprehensive income/(loss) by component, net of tax, are as follows:
| For the Nine Months Ended September 30, 2026 | For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Qualified Cash Flow Hedging Instruments | Defined Benefit Plans | Total | Qualified Cash Flow Hedging Instruments | Defined Benefit Plans | Total | |||||||||||||||||||||||||||||
| Balance as of Beginning of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
OCI Before Reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
Amounts Reclassified from AOCI | |||||||||||||||||||||||||||||||||||
| Net OCI | |||||||||||||||||||||||||||||||||||
| Balance as of End of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
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. Defined benefit plan amounts reclassified from AOCI also include a settlement loss amortized into net periodic benefit plan expense/(income) for the nine months ended September 30, 2025. See Note 8, “Pension Benefits and Postretirement Benefits Other Than Pension,” for further information.
13. 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 September 30, 2026 and December 31, 2025 | Issued as of | ||||||||||||||||||||||
| Par Value | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||
| Eversource | $ | ||||||||||||||||||||||
| CL&P | $ | ||||||||||||||||||||||
| NSTAR Electric | $ | ||||||||||||||||||||||
| PSNH | $ | ||||||||||||||||||||||
Common Share Issuances: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an “at-the-market” (ATM) equity offering program. Eversource may issue and sell its common shares through its sales agents during the term of this agreement. Shares were offered in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise. Sales may be made at either market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. In 2025, Eversource issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. In the first nine months of 2026, Eversource issued 289,044 common shares, which resulted in proceeds of $19.9 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
Treasury Shares: As of September 30, 2026 and December 31, 2025, there were 6,230,444 and 7,437,621 Eversource common shares held as treasury shares, respectively. As of September 30, 2026 and December 31, 2025, there were 376,913,101 and 375,416,880 Eversource common shares outstanding, respectively.
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.
14. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS
Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 5.6 155.6
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15. EARNINGS PER SHARE
Basic earnings per share is computed based upon the weighted average number of common shares outstanding during each period. Diluted earnings per share 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 as if they were converted into outstanding common shares. The dilutive effect of unvested RSU and performance share awards 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. For the three and nine months ended September 30, 2026 and 2025, there were no
The following table sets forth the components of basic and diluted earnings per share:
Eversource (Millions of Dollars, except share information) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Dilutive Effect | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Basic and Diluted Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
16. REVENUES
The following tables present operating revenues disaggregated by revenue source:
| For the Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||||||||
| Retail Tariff Sales | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Commercial | ( | ||||||||||||||||||||||||||||||||||||||||
| Industrial | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Retail Tariff Sales Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Transmission Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenues | |||||||||||||||||||||||||||||||||||||||||
| Other Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Alternative Revenue Programs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Other Revenues | |||||||||||||||||||||||||||||||||||||||||
| Total Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||||||||
| Retail Tariff Sales | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Commercial | ( | ||||||||||||||||||||||||||||||||||||||||
| Industrial | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Retail Tariff Sales Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Transmission Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenues | |||||||||||||||||||||||||||||||||||||||||
| Other Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Alternative Revenue Programs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Other Revenues | |||||||||||||||||||||||||||||||||||||||||
| Total Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
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| For the Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||||||||
| Retail Tariff Sales | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Commercial | ( | ||||||||||||||||||||||||||||||||||||||||
| Industrial | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Retail Tariff Sales Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Transmission Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenues | |||||||||||||||||||||||||||||||||||||||||
| Other Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Alternative Revenue Programs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Other Revenues | |||||||||||||||||||||||||||||||||||||||||
| Total Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||||||||
| Retail Tariff Sales | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Commercial | ( | ||||||||||||||||||||||||||||||||||||||||
| Industrial | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Retail Tariff Sales Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Transmission Revenues | ( | ||||||||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenues | |||||||||||||||||||||||||||||||||||||||||
| Other Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues from Contracts with Customers | ( | ||||||||||||||||||||||||||||||||||||||||
| Alternative Revenue Programs | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Other Revenues | |||||||||||||||||||||||||||||||||||||||||
| Total Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| For the Three Months Ended September 30, 2026 | For the Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||
| Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||
| Retail Tariff Sales | |||||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Commercial | |||||||||||||||||||||||||||||||||||
| Industrial | |||||||||||||||||||||||||||||||||||
| Total Retail Tariff Sales Revenues | |||||||||||||||||||||||||||||||||||
| Wholesale Transmission Revenues | |||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenues | |||||||||||||||||||||||||||||||||||
| Other Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||
| Total Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||
| Alternative Revenue Programs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Other Revenues | |||||||||||||||||||||||||||||||||||
| Eliminations | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Total Operating Revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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| For the Nine Months Ended September 30, 2026 | For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||
| Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||
| Retail Tariff Sales | |||||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Commercial | |||||||||||||||||||||||||||||||||||
| Industrial | |||||||||||||||||||||||||||||||||||
| Total Retail Tariff Sales Revenues | |||||||||||||||||||||||||||||||||||
| Wholesale Transmission Revenues | |||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenues | |||||||||||||||||||||||||||||||||||
| Other Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||
| Total Revenues from Contracts with Customers | |||||||||||||||||||||||||||||||||||
| Alternative Revenue Programs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Other Revenues | |||||||||||||||||||||||||||||||||||
| Eliminations | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Total Operating Revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
17. 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. The Electric Distribution segment consists of the rate-regulated distribution businesses of CL&P, NSTAR Electric and PSNH, and includes the results of NSTAR Electric's solar power facilities. The Electric Transmission segment consists of the rate-regulated electric transmission businesses of CL&P, NSTAR Electric and PSNH. The Natural Gas Distribution segment consists of the rate-regulated businesses of Yankee Gas, NSTAR Gas and EGMA. These reportable segments represent substantially all of Eversource's total consolidated revenues. Revenues from the sale of electricity and natural gas and water primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer.
On June 30, 2026, Eversource completed the sale of Aquarion. The Water Distribution segment, which consists of the rate-regulated business of Aquarion, no longer qualifies as an active reportable segment following the sale. Management has elected to continue presenting the results of the Aquarion water distribution business as a separate reportable segment for the current periods and comparative prior periods. See Note 18, “Sale of Aquarion Water Distribution Business” for further information.
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 chief operating decision maker uses the net income of each reportable segment to evaluate return generated from assets and decide how to reinvest profits and allocate resources, to monitor budget-to-actual results, in the planning and forecasting process, in determining compensation achievement, and in benchmarking to Eversource’s peers. Eversource’s chief operating decision maker is its chief executive officer. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
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) the results of other unregulated subsidiaries, which are not part of its core business, and 5) Eversource parent's equity ownership interests that are not consolidated, which primarily include a natural gas pipeline owned by Enbridge, Inc, and its former offshore wind investments in three offshore wind projects that were sold in 2024 and post-sale obligations.
In the ordinary course of business, Yankee Gas, NSTAR Gas and EGMA purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $77.7 million annually and are classified as Purchased Power, Purchased Natural Gas and Transmission on the Eversource statements of income.
Each of Eversource's subsidiaries, including CL&P, NSTAR Electric and PSNH, has one
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Cash flows used for investments in plant included in the segment information below are cash capital expenditures that 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 income/expense. Eversource's segment information is as follows:
| For the Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Depreciation and Amortization | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Operations and Maintenance (1) | |||||||||||||||||||||||||||||||||||||||||
| Operations, Excluding Storm Costs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Corporate Shared Services | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Storm Costs | ( | ||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total Operations and Maintenance | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Operating Income/(Loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Interest Expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Interest Income | ( | ||||||||||||||||||||||||||||||||||||||||
| Other Income, Net | ( | ||||||||||||||||||||||||||||||||||||||||
| Income Tax (Expense)/Benefit | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) Attributable to Common Shareholders | $ | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Depreciation and Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operations and Maintenance (1) | |||||||||||||||||||||||||||||||||||||||||
| Operations, Excluding Storm Costs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Corporate Shared Services | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Storm Costs | ( | ||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total Operations and Maintenance | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Sale of Aquarion | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Operating Income/(Loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Interest Expense | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Loss on Offshore Wind | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Interest Income | ( | ||||||||||||||||||||||||||||||||||||||||
| Other Income, Net | ( | ||||||||||||||||||||||||||||||||||||||||
| Income Tax (Expense)/Benefit | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) | ( | ( | 1,012.1 | ||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) Attributable to Common Shareholders | $ | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
| Cash Flows Used for Investments in Plant | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
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| For the Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Depreciation and Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operations and Maintenance (1) | |||||||||||||||||||||||||||||||||||||||||
| Operations, Excluding Storm Costs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Corporate Shared Services | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Storm Costs | ( | ||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total Operations and Maintenance | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Operating Income/(Loss) | ( | ||||||||||||||||||||||||||||||||||||||||
| Interest Expense | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Loss on Offshore Wind | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Interest Income | ( | ||||||||||||||||||||||||||||||||||||||||
| Other Income, Net | ( | ||||||||||||||||||||||||||||||||||||||||
| Income Tax (Expense)/Benefit | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) Attributable to Common Shareholders | $ | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| Operating Revenues | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Depreciation and Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operations and Maintenance (1) | |||||||||||||||||||||||||||||||||||||||||
| Operations, Excluding Storm Costs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Corporate Shared Services | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Storm Costs | ( | ||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Uncollectible Expense | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total Operations and Maintenance | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||||||||
| Interest Expense | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Loss on Offshore Wind | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Interest Income | ( | ||||||||||||||||||||||||||||||||||||||||
| Other Income, Net | ( | ||||||||||||||||||||||||||||||||||||||||
| Income Tax (Expense)/Benefit | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Net Income | ( | ||||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Cash Flows Used for Investments in Plant | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Costs of the operations organization include labor and overtime, outside services, vehicles, vegetation management, employee expenses, fees and payments, regulatory assessments, and materials, partially offset by reimbursements. Corporate shared services include corporate centralized functions. Costs within these corporate functions primarily include labor, services by vendors, fees and payments, insurance, and regulatory assessments. Other includes information technology system depreciation at Eversource Service charged to the operating businesses, as well as storm funding, capitalization and various other corporate costs. The segment-level operating expense for information technology system depreciation is eliminated and reflected in depreciation in Eversource’s consolidation.
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For the previously-owned water distribution segment, the chief operating decision maker was provided with total operations and maintenance expense information to manage its operations. Operations and maintenance expenses primarily included employee costs, benefits, and outside services.
(2) Other segment line items for the electric distribution, electric transmission and natural gas distribution segments primarily include purchased power, purchased natural gas and transmission, taxes other than income taxes including property, payroll-related and Connecticut gross earnings taxes, and energy efficiency program expenses. Other segment line items for the water distribution business primarily include taxes other than income taxes.
The following table summarizes Eversource's segmented total assets:
Eversource (Millions of Dollars) | Electric Distribution | Natural Gas Distribution | Electric Transmission | Water Distribution | Other | Eliminations | Total | ||||||||||||||||||||||||||||||||||
| As of September 30, 2026 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| As of December 31, 2025 | ( | ||||||||||||||||||||||||||||||||||||||||
18. SALE OF AQUARION WATER DISTRIBUTION BUSINESS
On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority. In June 2024, a Connecticut law chartered AWA and enabled it to acquire, own, and operate Aquarion as a not-for-profit water authority. The sale was approved by PURA on March 25, 2026.
On June 30, 2026, Eversource completed the sale of Aquarion consistent with all regulatory terms and requirements. The total transaction purchase price was approximately $2.4 billion, which included approximately $650 million of long-term debt that was either repaid at closing or transferred to the buyer.
As a result of the sale, Eversource recognized a non-cash, after-tax charge of $111.4 million in the second quarter of 2026, which is presented separately within Operating Expenses on the Eversource statement of income. The carrying value of the water distribution reporting unit included net property, plant and equipment of approximately $2.0 billion and goodwill of $662.4 million that was derecognized upon sale. As conditions of PURA’s approval, Eversource contributed $10 million into a rate stabilization fund for the future benefit of Aquarion customers and returned to customers $5.8 million of revenues collected and held in escrow related to the 2022 rate case appeal. Additional transaction costs resulting from the sale were $29 million. The assets and liabilities associated with the sale of the water distribution business were previously reflected in the Water Distribution segment and reporting unit.
Eversource has no post-closing obligations under the purchase and sale agreement with AWA other than a working capital true-up to the purchase price and no continued involvement with the divested subsidiaries. The final purchase price adjustment will be recorded upon resolution of the working capital true-up calculation, which is expected to occur in the fourth quarter.
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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, the combined Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, as well as the Eversource 2025 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. Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our earnings and EPS excluding a 2026 charge on the sale of the Aquarion water distribution business, 2026 and 2025 charges associated with increasing our offshore wind contingent liability, and a 2026 charge related to the March 2026 FERC decision in the FERC base ROE complaints. EPS by business is also a non-GAAP financial measure and is 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. The earnings and EPS of each business 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.
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 results without including these items. This information is among the primary indicators we use as a basis for evaluating performance and planning and forecasting of future periods. We believe the charge on the sale of the Aquarion water distribution business, the charges associated with increasing our offshore wind contingent liability, and the charge related to the March 2026 FERC decision in the FERC base ROE complaints are not indicative of our ongoing costs and performance. We view these charges as not directly related to the ongoing operations of the business and therefore not indicators of baseline operating performance. Due to the nature and significance of the effect of these items on Net Income Attributable to Common Shareholders and EPS, 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 alternatives to reported Net Income Attributable to Common Shareholders or EPS determined in accordance with GAAP as indicators of operating performance.
We do not provide a reconciliation of guidance from non-GAAP recurring earnings or non-GAAP recurring EPS to the most directly comparable GAAP measures because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our Net Income Attributable to Common Shareholders or EPS for the year ending December 31, 2026. These items are uncertain, depend on many factors and could have a material impact on our Net Income Attributable to Common Shareholders and EPS for the year ending December 31, 2026, and therefore cannot be made available without unreasonable effort.
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 U.S. federal securities laws. You can generally identify our forward-looking statements through the use of words or phrases such as "estimate," "expect," "pending," "anticipate," "intend," "plan," "project," "believe," "forecast," "would," "should," "could," and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in our forward-looking statements. 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 may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to:
• cyber events or breaches, including acts of war or terrorism, affecting our systems or the systems of third parties on which we rely,
•unauthorized access to, and the misappropriation of, confidential and proprietary Company, customer, employee, financial or system operating information,
•actions or inaction of local, state and federal regulatory, public policy and taxing bodies,
•changes in laws, regulations, Presidential executive orders or regulatory policy, including compliance with laws and regulations, which may impact the cost of compliance and strategic initiatives of the Company,
•adverse publicity, which can harm our reputation, influence legislative and regulatory bodies, and result in unfavorable outcomes,
•variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects as it relates to the purchase price post-closing adjustment under the terms of the sale agreement for these projects,
•the ability to qualify for investment tax credits,
•extreme weather, including severe storms, due to the impacts of climate change, and fluctuations in weather patterns,
•physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric and natural gas distribution systems,
•ability or inability to commence and complete our major strategic development projects and opportunities,
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•breakdown, failure of, or damage to operating equipment, information technology systems, or processes of our transmission and distribution systems,
•changes in levels or timing of capital expenditures, including unplanned expenditures and increased capital expenditure requirements,
•changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model,
•substandard performance of third-party suppliers and service providers, or counterparties not meeting their obligations,
•limits on our access to, or increases in, the cost of capital, including disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly,
•changes in economic conditions, including impact on interest rates, tax policies, tariffs and customer demand and payment ability,
•changes in accounting standards and financial reporting regulations,
•actions of rating agencies, and
•other presently unknown or unforeseen factors.
Other risk factors are detailed in our reports filed with the SEC and are updated as necessary and available on our Investor Relations website at investors.eversource.com and on the SEC’s website at www.sec.gov, 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 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 2025 combined Annual Report on Form 10-K. This combined Quarterly Report on Form 10-Q and Eversource's 2025 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
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) and Yankee Gas, NSTAR Gas and EGMA (natural gas utilities). On June 30, 2026, Eversource completed the sale of the Aquarion water distribution business, which comprised its water distribution reportable segment. Eversource is organized into the electric distribution, electric transmission, and natural gas distribution reportable segments, and the water distribution reportable segment until the Aquarion sale.
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 $346.0 million, or $0.92 per share, in the third quarter of 2026, compared with $367.5 million, or $0.99 per share, in the third quarter of 2025. We earned $1.01 billion, or $2.67 per share, in the first nine months of 2026, compared with $1.27 billion, or $3.44 per share, in the first nine months of 2025.
•Our first nine months of 2026 results include a non-cash, after-tax charge of $111.4 million, or $0.30 per share, resulting from a loss on the June 30, 2026 sale of Aquarion, which was recorded within the Water Distribution segment. Those results also include an after-tax charge of $164.0 million, or $0.43 per share, resulting from increasing our offshore wind contingent liability for expected future payments under a 2024 sale agreement of our previous offshore wind investments, which was recorded within Eversource Parent and Other Companies. Our first nine months of 2026 results also include an after-tax charge of $43.9 million, or $0.12 per share, for estimated refunds resulting from FERC’s March 19, 2026 order in the NETO ROE complaint proceedings, which was recorded within the Transmission segment. Excluding these charges, our non-GAAP earnings were $1.33 billion, or $3.52 per share, in the first nine months of 2026.
•We are narrowing our annual guidance for 2026 non-GAAP recurring earnings between $4.62 per share and $4.70 per share. We also reaffirm that our cumulative long-term earnings per share growth rate will be within the range of 5 to 7 percent through 2030, using the narrowed 2026 non-GAAP earnings guidance mid-point of $4.66 per share as the base year. We expect annual earnings growth towards the upper half of the long-term guidance by 2028.
Liquidity:
•Cash flows provided by operating activities totaled $3.07 billion in the first nine months of 2026, compared with $3.20 billion in the first nine months of 2025. Investments in property, plant and equipment totaled $3.05 billion in the first nine months of 2026, compared with $3.18 billion in the first nine months of 2025.
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•Cash and Cash Equivalents totaled $525.4 million as of September 30, 2026, compared with $135.4 million as of December 31, 2025. Our available borrowing capacity under our commercial paper programs totaled $2.65 billion as of September 30, 2026.
•In the first nine months of 2026, we issued $2.68 billion of new long-term debt and we repaid $2.01 billion of long-term debt.
•On September 10, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on September 30, 2026 to shareholders of record as of September 21, 2026.
Regulatory Developments:
•On July 29, 2026, PURA issued a final decision on CL&P’s request for recovery of deferred storm costs totaling $974.2 million plus carrying costs. PURA approved the vast majority of requested storm costs totaling $869.4 million of catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023 and postponed review of $63.3 million of storm costs to a future proceeding. The final decision also authorized the accrual of carrying costs on the unrecovered, approved storm costs beginning on the date of the final decision. The final decision resulted in a pre-tax charge to earnings of $40.8 million in the third quarter of 2026. On October 15, 2026, CL&P filed an appeal in Connecticut Superior Court challenging certain aspects of PURA's final decision, including PURA's denial of recovery of carrying costs on deferred storm costs incurred prior to the date of the final decision and certain disallowed storm restoration costs. The appeal remains pending.
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 September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars, Except Per Share Amounts) | Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Common Shareholders (GAAP) | $ | 346.0 | $ | 0.92 | $ | 367.5 | $ | 0.99 | $ | 1,006.5 | $ | 2.67 | $ | 1,271.1 | $ | 3.44 | |||||||||||||||||||||||||||||||
| Regulated Companies (Non-GAAP) | $ | 339.5 | $ | 0.90 | $ | 409.2 | $ | 1.10 | $ | 1,463.6 | $ | 3.89 | $ | 1,438.3 | $ | 3.89 | |||||||||||||||||||||||||||||||
| Eversource Parent and Other Companies (Non-GAAP) | 6.5 | 0.02 | 33.3 | 0.09 | (137.8) | (0.37) | (92.2) | (0.25) | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP Earnings | $ | 346.0 | $ | 0.92 | $ | 442.5 | $ | 1.19 | $ | 1,325.8 | $ | 3.52 | $ | 1,346.1 | $ | 3.64 | |||||||||||||||||||||||||||||||
Sale of Aquarion (after-tax) (1) | — | — | — | — | (111.4) | (0.30) | — | — | |||||||||||||||||||||||||||||||||||||||
Losses on Offshore Wind (after-tax) (2) | — | — | (75.0) | (0.20) | (164.0) | (0.43) | (75.0) | (0.20) | |||||||||||||||||||||||||||||||||||||||
FERC ROE Refund Charge (after-tax) (3) | — | — | — | — | (43.9) | (0.12) | — | — | |||||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Common Shareholders (GAAP) | $ | 346.0 | $ | 0.92 | $ | 367.5 | $ | 0.99 | $ | 1,006.5 | $ | 2.67 | $ | 1,271.1 | $ | 3.44 | |||||||||||||||||||||||||||||||
(1) In the second quarter of 2026, we recorded a non-cash, after-tax charge of $111.4 million resulting from the loss on the June 30, 2026 sale of Aquarion. For further information, see the “Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(2) In the second quarter of 2026, we recorded a pre-tax charge of $194 million ($164.0 million after-tax) associated with increasing our offshore wind contingent liability for expected future payments under the terms of the 2024 sale agreement with Global Infrastructure Partners (GIP) for the Revolution Wind project. In the third quarter of 2025, we recorded a pre-tax charge of $284 million associated with increasing the offshore wind contingent liability, offset by expected tax benefits from the offshore wind sale of $209 million ($75.0 million after-tax). For further information, see the “Offshore Wind Contingent Liability” section below included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(3) In the first quarter of 2026, we recorded a pre-tax charge of $60.4 million ($43.9 million after-tax) as a result of the March 19, 2026 FERC decision in the FERC base ROE complaints. The charge reflects a liability recorded for refunds associated with the fifteen-month first complaint period (October 1, 2011 – December 31, 2012), including interest accrued from the refund period through March 31, 2026. For further information, see the “FERC Regulatory Matters” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The impact of higher shares outstanding resulted in $0.01 and $0.05 earnings per share dilution in the third quarter and first nine months of 2026, as compared to the third quarter and first nine months of 2025, respectively.
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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 September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars, Except Per Share Amounts) | Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||||||||||||||||
| Net Income - Regulated Companies (GAAP) | $ | 339.5 | $ | 0.90 | $ | 409.2 | $ | 1.10 | $ | 1,308.3 | $ | 3.47 | $ | 1,438.3 | $ | 3.89 | |||||||||||||||||||||||||||||||
| Electric Distribution | $ | 200.9 | $ | 0.53 | $ | 221.6 | $ | 0.60 | $ | 574.1 | $ | 1.52 | $ | 571.6 | $ | 1.55 | |||||||||||||||||||||||||||||||
| Electric Transmission, excluding FERC ROE Refund Charge (Non-GAAP) | 182.0 | 0.48 | 185.5 | 0.50 | 590.0 | 1.57 | 593.0 | 1.60 | |||||||||||||||||||||||||||||||||||||||
| Natural Gas Distribution | (43.4) | (0.11) | (16.8) | (0.05) | 281.6 | 0.75 | 236.9 | 0.64 | |||||||||||||||||||||||||||||||||||||||
| Water Distribution, excluding Sale of Aquarion (Non-GAAP) | — | — | 18.9 | 0.05 | 17.9 | 0.05 | 36.8 | 0.10 | |||||||||||||||||||||||||||||||||||||||
| Net Income - Regulated Companies (Non-GAAP) | $ | 339.5 | $ | 0.90 | $ | 409.2 | $ | 1.10 | $ | 1,463.6 | $ | 3.89 | $ | 1,438.3 | $ | 3.89 | |||||||||||||||||||||||||||||||
| Sale of Aquarion (after-tax) | — | — | — | — | (111.4) | (0.30) | — | — | |||||||||||||||||||||||||||||||||||||||
| FERC ROE Refund Charge (after-tax) | — | — | — | — | (43.9) | (0.12) | — | — | |||||||||||||||||||||||||||||||||||||||
| Net Income - Regulated Companies (GAAP) | $ | 339.5 | $ | 0.90 | $ | 409.2 | $ | 1.10 | $ | 1,308.3 | $ | 3.47 | $ | 1,438.3 | $ | 3.89 | |||||||||||||||||||||||||||||||
Our electric distribution segment earnings decreased $20.7 million in the third quarter of 2026, as compared to the third quarter of 2025, due primarily to the impact of PURA’s July 2026 final decision on CL&P’s storm prudency proceeding that disallowed certain storm costs from recovery, higher depreciation, the absence in 2026 of a benefit from the impact of the PSNH rate case decision in July 2025, higher interest expense, and higher property taxes. These earnings decreases were partially offset by higher revenues from base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025 and August 1, 2026, higher revenues from CL&P’s capital tracking mechanism due to increased electric system improvements and NSTAR Electric’s Advanced Metering Infrastructure (AMI) capital tracking mechanism, and a lower effective tax rate.
Our electric distribution segment earnings increased $2.5 million in the first nine months of 2026, as compared to the first nine months of 2025, due primarily to higher revenues from base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025 and August 1, 2026, higher revenues from CL&P’s capital tracking mechanism and NSTAR Electric’s AMI capital tracking mechanism, and a lower effective tax rate. These benefits were partially offset by the impact of PURA’s July 2026 final decision on CL&P’s storm prudency proceeding that disallowed certain storm costs from recovery that was recorded in the third quarter of 2026, higher depreciation, higher interest expense, the absence in 2026 of a benefit from the impact of the PSNH rate case decision in July 2025, and higher property taxes.
Our electric transmission segment earnings decreased $3.5 million in the third quarter of 2026, as compared to the third quarter of 2025, due primarily to the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent, as well as higher interest expense, partially offset by continued investment in our transmission infrastructure.
Our electric transmission segment earnings decreased $46.9 million in the first nine months of 2026, as compared to the first nine months of 2025, due primarily to the first quarter 2026 after-tax charge of $43.9 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints in which the Company recorded a liability for refunds for the fifteen-month first complaint period, including interest. Excluding this charge, our electric transmission segment earnings decreased $3.0 million in the first nine months of 2026, as compared to the first nine months of 2025, due primarily to the prospective impact of the decrease in the allowed ROE from 10.57 percent to 9.57 percent and higher interest expense, partially offset by higher transmission rate base as a result of our continued investment in our transmission infrastructure and higher non-refundable transmission revenues.
Our natural gas distribution segment losses increased $26.6 million in the third quarter of 2026, as compared to the third quarter of 2025, due primarily to lower revenues at EGMA and NSTAR Gas driven by a change in the seasonal rate design that shifted the recovery of quarterly revenues, higher depreciation, higher interest expense, and higher operations and maintenance expense, partially offset by higher revenues from capital tracking mechanisms due to continued investments in natural gas infrastructure and the base distribution rate increase effective November 1, 2025 at Yankee Gas.
Our natural gas distribution segment earnings increased $44.7 million in the first nine months of 2026, as compared to the first nine months of 2025, due primarily to higher revenues from base distribution rate increases effective November 1, 2025 at Yankee Gas, NSTAR Gas and EGMA, and from capital tracking mechanisms due to continued investments in natural gas infrastructure. Those earnings increases were partially offset by higher depreciation, higher operations and maintenance expense, the absence of a benefit in 2025 from previously expensed costs allowed for recovery, higher property taxes, higher interest expense, and a higher effective income tax rate.
Our water distribution segment earnings decreased $18.9 million in the third quarter of 2026, as compared to the third quarter of 2025, due to the absence of earnings in the third quarter of 2026 resulting from the June 30, 2026 sale of Aquarion.
Our water distribution segment earnings decreased $130.3 million in the first nine months of 2026, as compared to the first nine months of 2025, due primarily to the $111.4 million after-tax charge recorded on the June 30, 2026 sale of Aquarion. Excluding this charge, our water distribution segment earnings decreased $18.9 million due to the absence of earnings in the third quarter of 2026. For further information on the sale, see the
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“Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Eversource Parent and Other Companies: Eversource parent and other companies earnings increased by $48.2 million in the third quarter of 2026, as compared to the third quarter of 2025, due primarily to the absence of the aggregate net after-tax charge of $75.0 million recorded in 2025 resulting from an increase to the offshore wind contingent liability, net of tax benefits associated with the tax losses on the sales of its offshore wind investments. Excluding this charge, Eversource parent and other companies earnings decreased by $26.8 million in the third quarter of 2026, as compared to the third quarter of 2025, driven by a higher effective income tax rate resulting from lower benefits from the tax return-to-provision adjustment in the third quarter of 2026, as compared to the recognition of state tax benefits and certain tax credits as a result of the tax return-to-provision adjustment in the third quarter of 2025. Third quarter results were also driven by higher interest expense, partially offset by a benefit resulting from the reduction of a rate base offset established in purchase accounting for the EGMA acquisition.
As part of the 2020 rate settlement approved by the DPU that enabled the acquisition of EGMA, the DPU required a rate base offset to be recorded, which would be amortized over time and be periodically adjusted in future rate filings for the build-up of deferred tax liabilities. The unamortized rate base offset is reflected as a reduction to Property, Plant and Equipment, Net on Eversource’s balance sheet. As of September 30, 2026, the rate base offset has been reduced by $40.0 million to reflect the build-up of the new deferred tax liabilities. The rate base offset reduction resulted in a reduction to depreciation expense on Eversource’s income statement in the third quarter of 2026. This benefit is presented within Eversource Parent and Other Companies, consistent with past presentation of acquisition-related items.
Eversource parent and other companies losses increased by $134.6 million in the first nine months of 2026, as compared to the first nine months of 2025, due primarily to the after-tax charge of $164.0 million recorded in the second quarter of 2026 resulting from an increase to the offshore wind contingent liability, as compared to the $75.0 million after-tax offshore wind charge recorded in the third quarter of 2025. Excluding these charges, Eversource parent and other companies losses increased by $45.6 million in the first nine months of 2026, as compared to the first nine months of 2025, driven by a higher effective income tax rate and higher interest expense, partially offset by the benefit resulting from the reduction of the rate base offset established in purchase accounting for the EGMA acquisition.
Offshore Wind Contingent Liability: On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind Projects to Global Infrastructure Partners (GIP). Eversource recorded a contingent liability relating to expected future payments to GIP as part of the sale of the South Fork Wind and Revolution Wind projects. As part of the definitive agreement with GIP, Eversource is responsible for certain post-closing purchase price adjustments. This obligation included an expected cost overrun sharing obligation, an expected obligation to maintain GIP’s internal rate of return, and an obligation for other future costs.
In the third quarter of 2025, Eversource received an updated report on the construction status of Revolution Wind, which included revised projections of total construction costs. The revised cost projections reflected known and quantifiable cost increases, including those associated with the impacts of damage to the wind turbine installation vessel, insurance costs, tariff impacts, and costs incurred as a result of the stop-work order for Revolution Wind received on August 22, 2025 from the Bureau of Ocean Energy Management that halted all offshore wind construction activities through September 22, 2025. Based on those developments, Eversource recognized a pre-tax charge of $284 million in the third quarter of 2025 as a result of the aggregate impact of these items to increase the liability for purchase price adjustments associated with the offshore wind projects. Eversource recognized an aggregate, net after-tax charge of $75.0 million, or $0.20 per share, in the third quarter of 2025, which consisted of the pre-tax $284 million increase to the offshore wind contingent liability, offset by $209 million of tax benefits associated with tax losses on the sale of the South Fork Wind and Revolution Wind projects that Eversource expects to realize.
In the second quarter of 2026, Eversource received revised projections of total construction costs associated with Revolution Wind, which included quantifiable cost increases. As a result, Eversource recognized a pre-tax charge of $194 million in the second quarter of 2026 to increase the liability for purchase price adjustments associated with the Revolution Wind project.
Eversource continually evaluates the contingent liability based on the latest available information. Based on the most recent updates on the construction status of Revolution Wind and other information currently available, Eversource believes that the contingent liability balance as of September 30, 2026 is an adequate estimate to cover this contingent liability for purchase price adjustments. As of September 30, 2026 and December 31, 2025, the contingent liability totaled $409.2 million and $448.2 million, respectively, and is recorded as a current liability on Eversource’s balance sheets, based upon the timing of expected payments to GIP. Payments made in the first nine months of 2026 and 2025 of $233.0 million and $141.3 million, respectively, reduced the contingent liability and were reflected within investing activities on the statements of cash flows. Payments made in 2026 related to cost overruns for the Revolution Wind project paid to GIP, and payments made in 2025 related to a purchase price adjustment payment related to the South Fork Wind project paid to GIP, cost overruns for the Revolution Wind project paid to GIP, and insurance payments. South Fork Wind has achieved commercial operation, and Eversource made a purchase price adjustment payment related to this project in June 2025. All matters relating to South Fork Wind have been resolved with no material impacts.
Eversource relies on information that it receives from the project owners for the construction-related, delay-related, and insurance-related costs of Revolution Wind. Eversource uses its judgment to adjust, as needed, its expected obligations to GIP. New information or future developments that arise will necessitate a reassessment of the estimated liability to GIP. The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted. In November 2026, the project owners announced construction is complete for Revolution Wind. Under the terms of the purchase and sale agreement, the obligation to GIP for the post-closing adjustment will be determined based on the project’s completion date as defined under the agreement. The reconciliation process for the post-closing adjustment is expected to occur in 2027.
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Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events. Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the timing and extent of construction delays, which would impact the final project economics including the obligation to maintain GIP’s internal rate of return through the construction period specified in the purchase price adjustment, and the eligibility for federal investment tax credits for Revolution Wind at a value lower than assumed and included in the purchase price. The purchase price of Revolution Wind included the value related to a 40 percent level of federal investment tax credits. A change in the expected value or qualification of investment tax credits could result in a significant loss in a future period.
It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, there could be additional increases to the offshore wind contingent liability, which could be material. The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.
Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.
Liquidity
Sources and Uses of Cash: Eversource’s regulated business is capital intensive and requires considerable capital resources. Eversource’s regulated companies’ capital resources are provided by cash flows generated from operations, short-term borrowings, long-term debt issuances, capital contributions from Eversource parent, and existing cash, and are used to fund their liquidity and capital requirements. Eversource’s regulated companies typically maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements. Short-term borrowings are also used as a bridge to long-term debt financings. The levels of short-term borrowing may vary significantly over the course of the year due to the impact of fluctuations in cash flows from operations (including timing of storm costs and regulatory recoveries), dividends paid, capital contributions received and the timing of long-term debt financings.
Eversource, CL&P, NSTAR Electric and PSNH each uses its available capital resources to fund its respective construction expenditures, meet debt requirements, pay operating costs, including storm-related costs, pay dividends, and fund corporate obligations. Eversource's regulated companies recover their electric, natural gas and water distribution construction expenditures as the related project costs are depreciated over the life of the assets. This impacts the timing of the revenue stream designed to fully recover the total investment including a return on the equity and debt used to finance the investments. Eversource's regulated companies spend a significant amount of cash on capital improvements and construction projects that have a long-term return on investment and recovery period.
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.
Cash and Cash Equivalents totaled $525.4 million as of September 30, 2026, compared with $135.4 million as of December 31, 2025.
Short-Term Debt - Commercial Paper Programs and Credit Agreements: Eversource parent has a $2.00 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 EGMA are parties to a five-year $2.00 billion revolving credit facility. Effective October 11, 2026, the revolving credit facility’s termination date was extended for one additional year to October 11, 2031, pursuant to the extension provisions contained in the existing credit agreement. This revolving credit facility serves to backstop Eversource parent's $2.00 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. Effective October 11, 2026, the revolving credit facility’s termination date was extended for one additional year to October 11, 2031, pursuant to the extension provisions contained in the existing credit agreement. This 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 | |||||||||||||||||||||||||||||||||
| September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||
| (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
| Eversource Parent Commercial Paper Program | $ | — | $ | 1,280.0 | $ | 2,000.0 | $ | 720.0 | — | % | 3.98 | % | |||||||||||||||||||||||
| NSTAR Electric Commercial Paper Program | — | 245.4 | 650.0 | 404.6 | — | % | 3.87 | % | |||||||||||||||||||||||||||
There were no borrowings outstanding on the revolving credit facilities as of September 30, 2026 and December 31, 2025.
CL&P and PSNH have uncommitted line of credit agreements totaling $375 million and $250 million, respectively, all of which will expire in either May 2027, September 2027 or October 2027. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, 2026 and December 31, 2025.
Amounts outstanding under the commercial paper programs 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.
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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 September 30, 2026 and December 31, 2025, there were intercompany loans from Eversource parent to PSNH of $2.1 million and $49.3 million, respectively. As of September 30, 2026, there were intercompany loans from Eversource parent to CL&P of $293.7 million. Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program. 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, as these intercompany borrowings are outstanding for no more than 364 days at one time.
Long-Term Debt Issuance Authorizations: On May 6, 2026, the NHPUC approved PSNH’s request for authorization to issue up to $200.0 million in long-term debt through December 31, 2026. PSNH has utilized its long-term debt authorizations in place with the NHPUC. On July 17, 2026, NSTAR Electric filed a petition with the DPU requesting authorization to issue up to $3.2 billion in long-term debt through December 31, 2029. On September 30, 2026, EGMA filed a petition with the DPU requesting authorization to issue up to $550 million in long-term debt through December 31, 2029. On November 4, 2026, PURA approved CL&P’s request for authorization to issue up to $1.15 billion in long-term debt through December 31, 2027.
Long-Term Debt Issuances and Repayments: The following table summarizes long-term debt issuances and repayments:
| (Millions of Dollars) | Interest Rate | Issuance/(Repayment) | Issue Date or Repayment Date | Maturity Date | Use of Proceeds for Issuance/ Repayment Information | ||||||||||||||||||||||||
| NSTAR Electric Debentures | 4.65 | % | $ | 350.0 | May 2026 | May 2031 | Repaid 2.70% Debentures at maturity, repaid Series H Senior Notes at maturity, repaid short-term debt, paid capital expenditures and working capital | ||||||||||||||||||||||
| NSTAR Electric Debentures | 5.20 | % | 350.0 | May 2026 | May 2036 | Repaid 2.70% Debentures at maturity, repaid Series H Senior Notes at maturity, repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||||||
| NSTAR Electric Debentures | 2.70 | % | (250.0) | June 2026 | June 2026 | Paid at maturity | |||||||||||||||||||||||
| NSTAR Electric Series H Senior Notes | 2.75 | % | (50.0) | June 2026 | June 2026 | Paid at maturity | |||||||||||||||||||||||
| PSNH Series X First Mortgage Bonds | 5.35 | % | 200.0 | June 2026 | October 2033 | Repaid short-term debt, paid capital expenditures and working capital | |||||||||||||||||||||||
Eversource Parent Series A Junior Notes (1) | 6.10 | % | 750.0 | February 2026 | August 2056 | Repaid Series AA Senior Notes at maturity, repay Series U Senior Notes at maturity, repaid short-term debt, and for general corporate purposes | |||||||||||||||||||||||
Eversource Parent Series B Junior Notes (2) | 6.35 | % | 750.0 | February 2026 | August 2056 | Repaid Series AA Senior Notes at maturity, repay Series U Senior Notes at maturity, repaid short-term debt, and for general corporate purposes | |||||||||||||||||||||||
| Eversource Parent Series J Senior Notes | 3.35 | % | (250.0) | March 2026 | March 2026 | Paid at maturity | |||||||||||||||||||||||
| Eversource Parent Series AA Senior Notes | 4.75 | % | (450.0) | May 2026 | May 2026 | Paid at maturity | |||||||||||||||||||||||
| Eversource Parent Series U Senior Notes | 1.40 | % | (300.0) | August 2026 | August 2026 | Paid at maturity | |||||||||||||||||||||||
| NSTAR Gas Series AA First Mortgage Bonds | 5.75 | % | 100.0 | October 2026 | October 2036 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||
| Yankee Gas Series AA First Mortgage Bonds | 5.22 | % | 75.0 | July 2026 | July 2031 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||
| Yankee Gas Series BB First Mortgage Bonds | 5.61 | % | 100.0 | July 2026 | July 2036 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||
| Yankee Gas Series S First Mortgage Bonds | 1.38 | % | (90.0) | August 2026 | August 2026 | Paid at maturity | |||||||||||||||||||||||
| EGMA Series G First Mortgage Bonds | 5.12 | % | 100.0 | July 2026 | July 2031 | Refinance existing indebtedness, fund capital expenditures, and for general corporate purposes | |||||||||||||||||||||||
(1) The Eversource Parent Series A Junior Subordinated Notes bear interest at a fixed rate of 6.10 percent per year from the issuance date of February 26, 2026 to August 14, 2031. Thereafter, the interest rate resets every five years, commencing on August 15, 2031, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.521 percent.
(2) The Eversource Parent Series B Junior Subordinated Notes bear interest at a fixed rate of 6.35 percent per year from the issuance date of February 26, 2026 to August 14, 2036. Thereafter, the interest rate resets every five years, commencing on August 15, 2036, at a rate per year equal to the five-year U.S. Treasury Rate plus a spread of 2.325 percent.
In connection with the sale of Aquarion on June 30, 2026, $612.4 million of long-term debt was repaid at closing.
Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually. PSNH paid $43.2 million of RRB principal payments and $11.9 million of interest payments in the first nine months of 2026, and paid $43.2 million of RRB principal payments and $13.4 million of interest payments in the first nine months of 2025.
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Common Share Issuances and Equity Distribution Agreement: On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $1.2 billion of its common shares from time to time through an ATM equity offering program. In 2025, Eversource issued 7,130,134 common shares, which resulted in proceeds of $465.4 million, net of issuance costs. In the first nine months of 2026, Eversource issued 289,044 common shares, which resulted in proceeds of $19.9 million, net of issuance costs. Eversource used the net proceeds received for general corporate purposes.
Cash Flows: Cash flows from operating activities primarily result from the transmission and distribution of electricity, and the distribution of natural gas. Cash flows provided by operating activities totaled $3.07 billion in the first nine months of 2026, compared with $3.20 billion in the first nine months of 2025. Operating cash flows were unfavorably impacted by a decrease in regulatory recoveries for CL&P’s non-bypassable FMCC and SBC cost tracking mechanisms driven primarily by the timing of collections. The decrease in these regulatory recoveries totaled $334.1 million for the CL&P non-bypassable FMCC mechanism and $180.8 million for the CL&P SBC mechanism. Operating cash flows were also unfavorably impacted by a $54.2 million increase in cash payments to vendors for storm costs, the timing of cash payments made on our accounts payable, and the timing of other working capital items. These unfavorable impacts were partially offset by the timing of cash collections on our accounts receivable, an improvement in regulatory recoveries for retail and wholesale transmission costs, energy efficiency costs, and natural gas regulatory cost tracking mechanisms driven by the timing of collections, a $37.0 million decrease in cost of removal expenditures, and a $10.6 million increase in income tax refunds received in 2026 compared to 2025. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization on the statements of cash flows.
On September 10, 2026, our Board of Trustees approved a common share dividend payment of $0.7875 per share, payable on September 30, 2026 to shareholders of record as of September 21, 2026. In the first nine months of 2026, we paid cash dividends of $871.3 million and issued non-cash dividends of $17.6 million in the form of treasury shares, totaling dividends of $888.9 million. In the first nine months of 2025, we paid cash dividends of $816.4 million and issued non-cash dividends of $17.7 million in the form of treasury shares, totaling dividends of $834.1 million.
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.
In the first nine months of 2026, CL&P, NSTAR Electric and PSNH paid $290.2 million, $331.0 million, and $166.8 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 income/expense. In the first nine months of 2026, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $3.05 billion, $748.3 million, $1.18 billion, and $298.0 million, respectively. Capital expenditures were primarily for continuing projects to maintain and improve infrastructure and operations, including enhancing reliability to the transmission and distribution systems.
Contractual Obligations: Our cash requirements from contractual obligations were reported in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of the Eversource 2025 Form 10-K. There have been no material changes to our cash requirements from contractual obligations and payment schedules previously disclosed in our 2025 Form 10-K.
Credit Ratings: On August 14, 2026, Fitch revised the outlooks from negative to stable for Eversource parent, CL&P, NSTAR Electric and PSNH due to the closing of the sale of Aquarion and greater confidence that Revolution Wind will reach commercial operation by year-end 2026.
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 income/expense (all of which are non-cash factors), totaled $3.14 billion in the first nine months of 2026, compared to $3.34 billion in the first nine months of 2025. These amounts included $141.9 million and $171.8 million in the first nine months of 2026 and 2025, respectively, at Eversource Service and The Rocky River Realty Company primarily for information technology and facilities upgrades.
Electric Transmission Business: Our consolidated electric transmission business capital expenditures decreased by $25.3 million in the first nine months of 2026, as compared to the first nine months of 2025. A summary of electric transmission capital expenditures by company is as follows:
| For the Nine Months Ended September 30, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | |||||||||
| CL&P | $ | 328.7 | $ | 255.3 | |||||||
| NSTAR Electric | 312.8 | 342.7 | |||||||||
| PSNH | 141.8 | 210.6 | |||||||||
| Total Electric Transmission | $ | 783.3 | $ | 808.6 | |||||||
Our transmission projects are designed to improve the reliability of the electric grid, meet customer demand for power, and strengthen the electric grid's resilience against extreme weather and other safety and security threats. In Connecticut, Massachusetts and New Hampshire, our transmission projects include transmission line upgrades, the installation of new transmission interconnection facilities, substations and lines, and transmission substation enhancements.
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Greater Cambridge Energy Program: The Greater Cambridge Energy Program is constructing Eversource’s first underground transmission substation in Cambridge, Massachusetts, along with associated transmission and distribution lines. The project is designed to address the increased electric demand in the region, enhance the resiliency of the transmission system, and ensure a flexible grid to reliably serve customers. The flexibility to transmit and distribute mixed energy sources supports the decarbonization and electrification goals of both the City of Cambridge and the state of Massachusetts. The new 115/13.8-kV, 35,000 square foot substation will be located in an underground vault and includes three distribution power transformers supplying thirty-six distribution circuits. The project also includes five underground duct banks housing eight new 115-kV transmission lines. The Massachusetts Energy Facilities Siting Board approved the project on June 28, 2024. Environmental permits are acquired to support ongoing construction activities. Additional required permits for transmission line trenchless crossings, including a license from the MA DEP, are expected to be approved by the end of 2026. The initial in-service date for the project is June 2029, which includes two 115-kV transmission lines and the transmission portion of the substation. The first distribution circuits and substation distribution will be placed in-service by the end of 2029. The remaining transmission and distribution circuits will be placed in-service throughout 2030 and into 2031. The total estimated project cost is approximately $1.84 billion, with $1.38 billion allocated for transmission and $460 million for distribution. As of September 30, 2026, $300.4 million has been spent on the project, with $234.8 million for transmission and $65.6 million for distribution.
ISO-NE Longer-Term Transmission Planning RFP: On March 31, 2025, ISO-NE issued the 2025 Longer-Term Transmission Planning Request for Proposal (RFP) to address longer-term needs that the New England States Committee on Electricity (NESCOE) identified in a December 13, 2024 request for ISO-NE to issue a longer-term transmission RFP. Following a full evaluation of the transmission tariff and RFP requirements, in September 2026, ISO-NE selected a joint proposal submitted by Eversource (for NSTAR Electric and PSNH) and Central Maine Power as the final preferred solution. This transmission project is designed to increase transmission capacity between Maine and New Hampshire while strengthening the transmission interface between northern and southern New England and accommodating interconnection of at least 1,200 MW of onshore wind. Eversource’s share of the total estimated $2.2 billion project cost is approximately $700 million and the project has an anticipated in-service date in 2032.
Distribution Business: A summary of distribution capital expenditures is as follows:
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | Total Electric | Natural Gas | Water | Total | ||||||||||||||||||||||||||||||||||
| 2026 | |||||||||||||||||||||||||||||||||||||||||
| Basic Business | $ | 250.9 | $ | 439.8 | $ | 73.8 | $ | 764.5 | $ | 141.2 | $ | 10.2 | $ | 915.9 | |||||||||||||||||||||||||||
| Aging Infrastructure | 109.4 | 333.0 | 72.0 | 514.4 | 463.0 | 70.7 | 1,048.1 | ||||||||||||||||||||||||||||||||||
| Load Growth and Other | 105.9 | 96.2 | 17.6 | 219.7 | 26.0 | 0.4 | 246.1 | ||||||||||||||||||||||||||||||||||
| Total Distribution | $ | 466.2 | $ | 869.0 | $ | 163.4 | $ | 1,498.6 | $ | 630.2 | $ | 81.3 | $ | 2,210.1 | |||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||||||||
| Basic Business | $ | 241.8 | $ | 418.8 | $ | 97.2 | $ | 757.8 | $ | 141.1 | $ | 14.8 | $ | 913.7 | |||||||||||||||||||||||||||
| Aging Infrastructure | 109.1 | 293.7 | 66.7 | 469.5 | 537.4 | 104.2 | 1,111.1 | ||||||||||||||||||||||||||||||||||
| Load Growth and Other | 82.6 | 172.4 | 46.5 | 301.5 | 36.1 | 0.6 | 338.2 | ||||||||||||||||||||||||||||||||||
| Total Distribution | $ | 433.5 | $ | 884.9 | $ | 210.4 | $ | 1,528.8 | $ | 714.6 | $ | 119.6 | $ | 2,363.0 | |||||||||||||||||||||||||||
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. We are also focused on making strategic AI investments currently in outage discovery, maintenance management and data analytics to better maintain our system and provide value to our customers.
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 previously-owned water distribution business, basic business addressed daily operational needs including periodic meter replacement, water main relocation, facility maintenance, and tools. Aging infrastructure related to reliability and the replacement of water mains, regulators, storage tanks, pumping stations, wellfields, reservoirs, and treatment facilities. Load growth and other reflected growth in our service territory, including improvements of acquisitions, installation of new services, and interconnections of systems.
Sale of Aquarion Water Distribution Business: On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority. In June 2024, a Connecticut law chartered AWA and enabled it to acquire, own, and operate Aquarion as a not-for-profit water authority. The sale was approved by PURA on March 25, 2026.
On June 30, 2026, Eversource completed the sale of Aquarion consistent with all regulatory terms and requirements. The total transaction purchase price was approximately $2.4 billion, which included approximately $650 million of long-term debt that was either repaid at closing or transferred to the buyer.
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As a result of the sale, Eversource recognized a non-cash, after-tax charge of $111.4 million in the second quarter of 2026, which is presented separately within Operating Expenses on the Eversource statement of income. The carrying value of the water distribution reporting unit included net property, plant and equipment of approximately $2.0 billion and goodwill of $662.4 million that was derecognized upon sale. As conditions of PURA’s approval, Eversource contributed $10 million into a rate stabilization fund for the future benefit of Aquarion customers and returned to customers $5.8 million of revenues collected and held in escrow related to the 2022 rate case appeal. Additional transaction costs resulting from the sale were $29 million. The assets and liabilities associated with the sale of the water distribution business were previously reflected in the Water Distribution segment and reporting unit.
Eversource has no post-closing obligations under the purchase and sale agreement with AWA other than a working capital true-up to the purchase price and no continued involvement with the divested subsidiaries. The final purchase price adjustment will be recorded upon resolution of the working capital true-up calculation, which is expected to occur in the fourth quarter.
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 New England Transmission Owners’ (NETOs’) base return on equity (ROE) of 11.14 percent that had been utilized since 2006 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 including transmission incentives (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, FERC issued Opinion No. 531-A and 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. The NETOs filed an appeal of this decision, which was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit Court). All amounts associated with Opinion No. 531-A on the first complaint period lowering the base ROE of 11.14 percent to 10.57 percent were refunded by 2015.
On October 16, 2018, FERC issued an order on all four complaints describing how it intended to address the issues that were remanded by the D.C. Circuit 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. 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, the preliminary just and reasonable base ROE for the NETOs, which FERC concludes are of average financial risk, is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.
On March 19, 2026, FERC issued Opinion No. 594 in the NETO ROE proceedings, attempting to resolve all four pending complaints dating back to 2011 and to respond to the D.C. Circuit Court’s April 14, 2017 decision vacating FERC’s prior decision in the first complaint, which found that the FERC had failed to (1) make an explicit, reasoned finding that the then-existing 11.14 percent base ROE was unjust and unreasonable before imposing a replacement ROE, and (2) adequately justify placing the ROE at the midpoint of the upper half of the zone of reasonableness.
In Opinion No. 594, FERC applied a revised ROE methodology that it believes is consistent with its 2024 ROE Order on remand to the Mid-continent ISO (MISO) transmission owners, to satisfy the first step in the FERC process to revise the ROE in a Section 206 proceeding by finding the NETOs’ base ROE of 11.14 percent is unjust and unreasonable. FERC then found the just and reasonable replacement base ROE to be 9.57 percent with an incentive cap of 12.09 percent for the first complaint period (October 1, 2011 – December 31, 2012) and applied this same ROE prospectively, effective October 16, 2014, the date of the first complaint order vacated by the D.C. Circuit Court. FERC directed the NETOs to issue refunds with interest for the applicable refund periods. This decision decreases the allowed base ROE of 10.57 percent with an incentive cap of 11.74 percent to a base ROE of 9.57 percent with an incentive cap of 12.09 percent. The second, third and fourth NETO ROE complaints were dismissed as part of the decision, and FERC did not direct any refunds for the periods associated with those proceedings.
On April 14, 2026, FERC granted an extension of the refund deadline to May 20, 2027. On April 14, 2026, Eversource and Avangrid filed a joint motion requesting a stay of the refund obligation applicable to the period October 16, 2014 through March 19, 2026 (retroactive refund period) with the D.C. Circuit Court. On August 28, 2026, the D.C. Circuit Court issued an order denying the joint motion requesting a stay of the retroactive refund period.
On April 20, 2026, the NETOs submitted to FERC a request for rehearing of Opinion No. 594 highlighting several deficiencies within the order. On May 21, 2026, FERC issued an order denying the request for rehearing by operation of law. On September 24, 2026, FERC issued its substantive order on rehearing, Opinion No. 594-A, addressing the merits of arguments raised by the NETOs and sustaining the result determined in Opinion No. 594.
On June 5, 2026, the NETOs filed an appeal of Opinion No. 594 and FERC’s denial of the rehearing with the D.C. Circuit Court. On October 19, 2026, the D.C. Circuit Court granted a joint unopposed motion on proposed briefing format with briefing to begin on November 13, 2026 and concluding on April 2, 2027. The NETOs’ appeal of Opinion No. 594 includes but is not limited to the unlawful retroactive refund period with interest extended beyond the 15-month statutory relief authority granted in Section 206(b) of the Federal Power Act, the FERC not proving that the previously approved 11.14 percent base ROE was unjust and unreasonable as remanded by the D.C. Circuit Court, the flawed methodologies
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applied in setting the replacement 9.57 percent base ROE, failing to comply with the requirement for FERC to use data that is relevant to the current period at the time of the decision for the NETOs’ prospective ROE, and procedural issues related to overlapping complaints. Refunds to wholesale transmission customers are currently required to be issued by May 2027, which would be prior to a ruling by the D.C. Circuit Court.
On April 30, 2026, the NETOs submitted a Federal Power Act Section 205 filing to FERC, which is a formal request by a public utility to change the ROE rate prospectively and requires the utility to prove the proposed change is just and reasonable. The NETOs proposed a replacement base ROE of 11.39 percent, resulting in an incentive cap of 12.89 percent, which is based on current market data utilizing FERC’s ROE methodology from Opinion No. 594. The NETOs requested an effective date of June 30, 2026. On June 29, 2026, FERC issued an order finding the proposed ROE has not been shown to be just and reasonable, suspending the increase until November 30, 2026, subject to refund, and initiating paper hearing procedures. Initial briefs were submitted on August 28, 2026, and reply briefs were submitted on September 28, 2026.
As a result of the March 19, 2026 FERC decision, Eversource determined that a refund is probable and that a range of refunds is reasonably estimable. Based on Eversource’s current evaluation of the relevant facts and circumstances, the Company has estimated a range of reasonably possible pre-tax refunds of $63.0 million to approximately $965 million, which includes a range of interest of $31.1 million to $288 million, as of September 30, 2026. The estimated range for CL&P is $30.2 million to approximately $392 million, for NSTAR Electric is $25.0 million to approximately $401 million, and for PSNH is $7.8 million to approximately $172 million as of September 30, 2026. The low end of the estimated range reflects estimated refunds associated with the fifteen-month first complaint period, including interest. The high end of the Company’s estimated range includes the refunds associated with the first complaint period, as well as estimated refunds for the retroactive refund period from October 16, 2014 through March 19, 2026, including interest, in the pre-tax amount of $902 million. The range of refund estimates use the 9.57 percent replacement ROE and incentive cap of 12.09 percent prescribed in the March 19, 2026 FERC decision.
The Company has recorded a current regulatory liability for revenues subject to refund of $63.0 million (pre-tax) as of September 30, 2026, which reflects the difference between the billed 10.57 percent base ROE and the new 9.57 percent base ROE for the first complaint period, including interest. The regulatory liability represents the low end of the range, as no amount within the range is considered a better estimate as the Company is continuing to work through the refund calculation methodology. Eversource and the other NETOs are continuing to address the complexities of the refund calculations over the extensive time period as well as the amount and timing of refunds to transmission customers that must be coordinated with the other NETOs and the ISO-NE, which have not yet been finalized.
The $63.0 million liability consists of $30.2 million, $25.0 million and $7.8 million for CL&P, NSTAR Electric and PSNH, respectively, of which $14.9 million, $12.4 million and $3.8 million is accrued interest, respectively, as of September 30, 2026. The revenues subject to refund were recorded as a reduction to Operating Revenues, and the accrued interest was recorded as an increase to Interest Expense in the statements of income. Eversource does not have any other reserves recorded for the other complaint periods, as these remaining complaints were dismissed.
Eversource believes it has sound arguments against the refunds for the retroactive refund period based on the Company’s legal assessment of the Federal Power Act and the legal and regulatory deficiencies underlying the March 19, 2026 FERC decision, as identified in the NETOs’ appeal filed with the D.C. Circuit Court, including that the retroactive application is inconsistent with the statutory limitations under the Federal Power Act. Eversource continues to challenge the March 19, 2026 FERC decision and cannot predict the ultimate outcome of this proceeding or its timing, but Eversource believes that a court decision could be received in the second half of 2027.
The Company’s estimates are based on currently available information. The Company has accrued $63.0 million as of September 30, 2026, representing the low end of the estimated range of probable liabilities. The Company continues to assess its legal position, the complexities associated with the refund calculation methodology, its extensive coordination with the NETOs and ISO-NE for the processing of long-dated refunds, and the timing of these required refunds. While the Company believes it has sound legal arguments challenging the March 2026 FERC decision, the ongoing refund calculation and developments in the refund process are expected to result in recording additional liabilities related to the retroactive refund period prior to the conclusion of the appellate proceeding. If there is no court or FERC action or further delay as a result of coordination with ISO-NE, then the Company will commence its refunds early in 2027 through the ISO-NE resettlement process. The Company expects to record a liability for the retroactive refund period as the refund calculations are finalized. Due to the uncertainties of the calculations described above, the refund amount for the retroactive period is not reasonably estimable as of September 30, 2026. The ultimate amount recognized may exceed the amount accrued by up to approximately $900 million and could have a material impact on the financial condition and results of operations.
The reduction in the base ROE from 10.57 percent to 9.57 percent is expected to lower Eversource's future annual after-tax earnings by approximately $70 million, estimated using 2025 rate base, and excluding the new base ROE of 11.39 percent that will become effective on November 30, 2026, subject to the outcome of the FERC-ordered paper hearing. The impact to earnings would increase over time as we continue to invest in our transmission infrastructure. The change in the related specific transmission incentive adders due to the expanded incentive cap would offset the reduced annual after-tax earnings by approximately $5 million.
FERC Connecticut RTO Adder Complaint: On June 11, 2026, DEEP, Connecticut Office of Consumer Counsel, PURA, and the Connecticut Attorney General (collectively, the CT Agencies) filed a complaint at FERC against CL&P and The United Illuminating Company, requesting FERC to: (1) find that CL&P’s and UI’s collection of the 50-basis points ROE adder for Regional Transmission Organization (RTO) participation is unjust and unreasonable because Connecticut law now requires RTO membership and such an incentive should not be awarded for behavior required by law; (2) direct tariff revisions to eliminate the adder in the formula rate; and (3) direct refunds of adder-related charges imposed after the refund effective date of the complaint. On June 29, 2026, CL&P and UI filed a complaint in U.S. District Court in Connecticut asserting that Connecticut Public Act 25-173 is unconstitutional in requiring ISO-NE membership. On July 1, 2026, CL&P and UI filed a joint motion at FERC requesting the CT RTO Adder Complaint proceeding be held in abeyance until the U.S. District Court proceeding in Connecticut is resolved. On September 25, 2026, the CT Agencies filed a joint motion with the U.S. District Court requesting dismissal of the complaint and stay of discovery.
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If the FERC issues a final order eliminating the RTO ROE incentive as proposed in the CT RTO Adder Complaint, the estimated annual impact (using 2025 actual data) on Eversource’s after-tax earnings is approximately $12 million. We cannot predict the ultimate outcome of the regulatory or court complaints at this time.
Transmission Rates and Other Transmission Rates-Related Proceedings: CL&P, NSTAR Electric and PSNH transmission rates are calculated in accordance with a FERC-approved formula ratemaking framework, and each utility is required to file an annual update on or before July 31st with resulting rates effective January 1st the following year. The formula rate framework provides for an annual reconciliation of the prior calendar year actual costs incurred related to our transmission facilities, including an allowed ROE, plus forecasted information through the next rate period. The annual update process includes formula rate protocols that provide for disclosure of cost inputs, an opportunity for informal discovery procedures and a challenge process, which provides transparency to stakeholders.
From time to time, various matters are pending before FERC relating to transmission rates, incentives, interconnections and transmission planning. Depending on the outcome, any of these matters could materially impact our results of operations and financial condition. At this time, Eversource cannot predict the ultimate outcome of the matters currently pending before FERC, and the resulting impact on its transmission incentives or planning.
Regulatory Developments and Rate Matters
Electric and Natural Gas 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 nine months of 2026, changes made to the regulated companies’ rates did not have a material impact on their earnings. 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 2025 Form 10-K.
Connecticut:
CL&P Storm Proceeding: On March 28, 2024, PURA established a prudency review proceeding to evaluate costs reported by CL&P for catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023. Storm costs requested by CL&P for this six-year period totaled $974.2 million. CL&P additionally requested approval to recover carrying costs calculated at the weighted average cost of capital on the deferred storm costs totaling $397 million. These carrying costs reflect CL&P’s actual financing costs on the unrecovered storm costs from the date the deferred storm costs were incurred through June 1, 2027, the expected date of securitization. The $397 million of carrying costs have not been deferred on the balance sheet.
On July 29, 2026, PURA issued a final decision approving $869.4 million of prudently incurred catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023 and postponing review of $63.3 million of storm costs to a future proceeding. The final decision resulted in a disallowance of $40.8 million of storm costs that were previously deferred as a regulatory asset on CL&P’s balance sheet. The disallowance was recorded as an increase to Operations and Maintenance expense on CL&P’s statement of income in the third quarter of 2026. Total approved storm costs to be considered by PURA for future securitization are $667.9 million, which excludes $101.5 million of costs that were previously collected from customers through base distribution rates and $100 million approved in the April 2026 RAM proceeding to be collected through the CTA rate from May 1, 2026 through April 30, 2027.
PURA did not approve the recovery of carrying costs from the date the deferred storm costs were incurred through the date of the final decision. PURA approved the accrual of carrying costs on the unrecovered, approved storm costs beginning on the date of the final decision through the date of securitization or other recovery authorized in the CL&P distribution rate case proceeding. On October 15, 2026, CL&P filed an appeal in Connecticut Superior Court challenging certain aspects of PURA's final decision, including PURA's denial of recovery of carrying costs on deferred storm costs incurred prior to the date of the final decision and certain disallowed storm restoration costs. The appeal remains pending.
On May 4, 2026, PURA issued a notice of proceeding to consider whether the issuance of rate reduction bonds for the securitization of approved storm costs is in the best interest of rate payers. A final decision in this proceeding is expected on January 20, 2027.
CL&P Advanced Metering Infrastructure Filing: On January 3, 2024, PURA issued a final decision regarding CL&P’s Advanced Metering Infrastructure (AMI) investment and implementation plan. In CL&P’s view, the final decision did not provide a reasonable path for cost recovery and would delay implementation. In addition, in CL&P’s view, the final decision modifies the prudence standard for recovery of costs expended on the project, improperly linking recovery to outcomes not known at the outset of the project. On January 18, 2024, CL&P submitted a motion for reconsideration to PURA, asking that the agency modify these aspects of the decision, which PURA subsequently denied on February 14, 2024. On March 6, 2024, CL&P filed written comments citing four major problems associated with PURA’s guidelines for recovery of the costs of AMI implementation, which if not addressed, represent obstacles to AMI implementation in Connecticut. On April 16, 2024, PURA issued a procedural order directing Eversource and inviting all parties and intervenors to submit pre-filed testimony pertaining to AMI.
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On October 17, 2024, PURA issued a proposed final decision on recovery of the costs for AMI implementation. On October 31, 2024, CL&P filed written exceptions focused on three main aspects of the proposed decision, which included (1) clarifying the prudence standard to be used in evaluating AMI investments, (2) timing of prudency reviews, and (3) cost recovery related to incremental O&M expenses. On December 4, 2024, PURA issued a final decision on the recovery of costs for AMI implementation. On December 9, 2024, CL&P filed a petition for reconsideration because PURA had not fully resolved the issues CL&P raised in its October 31, 2024 written exceptions. On November 25, 2025, PURA issued correspondence in connection with CL&P’s October 31, 2025 annual AMI compliance filing asserting that it was no longer evaluating the merits of CL&P’s petition for reconsideration, that PURA approval is not required for CL&P to deploy AMI, and that CL&P may invest in AMI at any time and seek cost recovery under the AMI tariff after meeting established filing criteria. On December 19, 2025, CL&P filed a motion responding to the legal issues raised in PURA’s correspondence and requested that PURA reopen the prior proceeding for the purpose of lawfully acting upon CL&P’s December 9, 2024 petition for reconsideration and resolving the open questions on AMI cost recovery.
On July 1, 2026, PURA issued a final decision rescinding the previously approved December 2024 interim AMI cost recovery tariff framework resulting from the delay in AMI implementation, CL&P’s impending base distribution rate proceeding and the passing of legislation permitting the securitization of AMI costs. On July 14, 2026, CL&P formally submitted its AMI implementation and cost recovery proposals in conjunction with its base distribution rate case filing. In the rate case proceeding, CL&P requested approval of a new cost recovery framework to support accelerated AMI deployment, leveraging a proposed PBR capital funding mechanism and future securitization for incremental O&M and stranded legacy meter costs. On July 21, 2026, CL&P petitioned for a separate, uncontested proceeding to secure timely authorization to advance the physical deployment schedule. CL&P witnesses filed testimony, including an updated estimate of $1.3 billion for capital costs and operating expenses. PURA subsequently closed that separate proceeding petitioned by CL&P on July 21, 2026, and directed the Company to refile its request in an established docket. PURA has taken no action in the established docket, nor otherwise signaled that it will issue an authorization outside of the CL&P rate case. CL&P requested a determination from PURA by November 2026.
CL&P RAM Settlement: In connection with CL&P's 2021 Revenue Adjustment Mechanism (RAM) proceeding, PURA disallowed recovery through the Electric System Improvements (ESI) mechanism of certain storm-related capital investments. CL&P appealed PURA's decision to the Connecticut Superior Court and subsequently to the Connecticut Supreme Court. In May 2026, the Connecticut Supreme Court reversed the lower court's judgment and remanded the matter back to PURA.
On September 21, 2026, CL&P and the Office of Consumer Counsel filed an amended settlement agreement with PURA in order to resolve issues associated with PURA's prior disallowance of certain storm-related capital investments included in CL&P's ESI mechanism. Under the proposed settlement, CL&P would recover approximately $8.2 million, representing 50 percent of the revenue requirement associated with the disputed investments through June 30, 2027, with the remaining 50 percent not recoverable from customers. Recovery of the approved amount would be collected through the ESI mechanism following PURA approval through June 30, 2027. Beginning July 1, 2027, the remaining approved unrecovered balance associated with the underlying investments would be recovered through base distribution rates. On November 4, 2026, PURA issued a proposed final decision that adopted the settlement agreement reached between CL&P and the Office of Consumer Counsel with no material modifications to the settlement’s terms. A final decision from PURA is expected by November 18, 2026.
Massachusetts:
NSTAR Electric Distribution Rates: NSTAR Electric’s performance based regulation (PBR) mechanism allows for an annual adjustment to base distribution rates for inflation, exogenous events and future capital additions based on a historical five-year average of total capital additions. On September 15, 2026, NSTAR Electric submitted its annual PBR Adjustment filing for a $66.6 million increase to base distribution rates and a total base distribution revenue requirement of $1.41 billion for effect on January 1, 2027. The requested base distribution rate increase is comprised of a $39.7 million inflation-based adjustment and a $26.9 million K-bar adjustment for capital additions based on the difference between the historical five-year average of total capital additions and the base capital revenue requirement. A DPU decision is expected by December 31, 2026.
NSTAR Gas Distribution Rates: NSTAR Gas’ PBR mechanism allows for an annual adjustment to base distribution rates for inflation and exogenous events. On June 15, 2026, NSTAR Gas submitted its annual PBR Adjustment filing for rates to be effective on November 1, 2026. On August 27, 2026, NSTAR Gas updated its filing to request approval of a $21.0 million increase to base distribution rates, of which, $20.8 million was associated with an inflation-based adjustment and the remainder for a prior period exogenous cost adjustment. On October 23, 2026, the DPU approved this filing.
New Hampshire:
PSNH Distribution Rates: PSNH’s alternative regulatory framework allows three formulaic annual revenue adjustments on August 1, 2026, 2027 and 2028. On April 1, 2026, PSNH submitted its first annual alternative regulatory framework filing reflecting a calculated $23.6 million in supplemental revenue support to be included in base distribution rates, for effect August 1, 2026. On July 21, 2026, the NHPUC approved this filing.
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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 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 2025 Form 10-K. There have been no material changes with regard to these critical accounting policies.
Refer to Note 9C, “Commitments and Contingencies - FERC ROE Complaints” to the financial statement for further discussion of the critical estimates surrounding the FERC regulatory liability. Also refer to Note 9E, “Commitments and Contingencies - Offshore Wind Sale and Contingent Liability,” to the financial statements for further discussion of the critical accounting estimates surrounding the offshore wind contingent liability.
Other Matters
Website: 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.
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 and nine months ended September 30, 2026 and 2025 included in this combined Quarterly Report on Form 10-Q:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase/(Decrease) | 2026 | 2025 | Increase/(Decrease) | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 2,978.9 | $ | 3,220.6 | $ | (241.7) | $ | 10,386.4 | $ | 10,177.0 | $ | 209.4 | |||||||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||||||||||||||
| Purchased Power, Purchased Natural Gas and Transmission | 1,103.5 | 1,049.3 | 54.2 | 3,561.2 | 3,208.3 | 352.9 | |||||||||||||||||||||||||||||
| Operations and Maintenance | 504.7 | 518.3 | (13.6) | 1,492.1 | 1,473.3 | 18.8 | |||||||||||||||||||||||||||||
| Depreciation | 381.7 | 395.4 | (13.7) | 1,226.0 | 1,160.6 | 65.4 | |||||||||||||||||||||||||||||
| Amortization | (119.6) | 108.2 | (227.8) | 238.9 | 672.8 | (433.9) | |||||||||||||||||||||||||||||
| Energy Efficiency Programs | 189.0 | 173.1 | 15.9 | 653.7 | 565.9 | 87.8 | |||||||||||||||||||||||||||||
| Taxes Other Than Income Taxes | 289.9 | 287.6 | 2.3 | 856.3 | 818.0 | 38.3 | |||||||||||||||||||||||||||||
| Sale of Aquarion | — | — | — | 111.4 | — | 111.4 | |||||||||||||||||||||||||||||
| Total Operating Expenses | 2,349.2 | 2,531.9 | (182.7) | 8,139.6 | 7,898.9 | 240.7 | |||||||||||||||||||||||||||||
| Operating Income | 629.7 | 688.7 | (59.0) | 2,246.8 | 2,278.1 | (31.3) | |||||||||||||||||||||||||||||
| Interest Expense | 348.7 | 318.1 | 30.6 | 1,069.5 | 912.1 | 157.4 | |||||||||||||||||||||||||||||
| Losses on Offshore Wind | — | 284.0 | (284.0) | 194.0 | 284.0 | (90.0) | |||||||||||||||||||||||||||||
| Other Income, Net | 117.3 | 85.8 | 31.5 | 362.4 | 273.5 | 88.9 | |||||||||||||||||||||||||||||
| Income Before Income Tax Expense | 398.3 | 172.4 | 225.9 | 1,345.7 | 1,355.5 | (9.8) | |||||||||||||||||||||||||||||
| Income Tax Expense/(Benefit) | 50.4 | (197.0) | 247.4 | 333.6 | 78.8 | 254.8 | |||||||||||||||||||||||||||||
| Net Income | 347.9 | 369.4 | (21.5) | 1,012.1 | 1,276.7 | (264.6) | |||||||||||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | 1.9 | 1.9 | — | 5.6 | 5.6 | — | |||||||||||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 346.0 | $ | 367.5 | $ | (21.5) | $ | 1,006.5 | $ | 1,271.1 | $ | (264.6) | |||||||||||||||||||||||
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Operating Revenues
Sales Volumes: A summary of our retail electric GWh sales volumes and our firm natural gas MMcf sales volumes, and percentage changes, is as follows:
| Electric | Firm Natural Gas | ||||||||||||||||||||||||||||||||||
| Sales Volumes (GWh) | Percentage Increase | Sales Volumes (MMcf) | Percentage Increase/(Decrease) | ||||||||||||||||||||||||||||||||
| Three Months Ended September 30: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Traditional | 2,126 | 2,061 | 3.2 | % | — | — | — | % | |||||||||||||||||||||||||||
| Decoupled | 11,977 | 11,666 | 2.7 | % | 17,558 | 16,986 | 3.4 | % | |||||||||||||||||||||||||||
| Total Sales Volumes | 14,103 | 13,727 | 2.7 | % | 17,558 | 16,986 | 3.4 | % | |||||||||||||||||||||||||||
| Nine Months Ended September 30: | |||||||||||||||||||||||||||||||||||
| Traditional | 6,027 | 5,907 | 2.0 | % | — | — | — | % | |||||||||||||||||||||||||||
| Decoupled | 33,320 | 32,729 | 1.8 | % | 111,132 | 111,433 | (0.3) | % | |||||||||||||||||||||||||||
| Total Sales Volumes | 39,347 | 38,636 | 1.8 | % | 111,132 | 111,433 | (0.3) | % | |||||||||||||||||||||||||||
Weather, fluctuations in energy supply rates, conservation measures (including utility-sponsored energy efficiency programs), and economic conditions affect customer energy usage. In our service territories, weather impacts electric 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, NSTAR Gas, EGMA, and Yankee Gas, 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.
Operating Revenues: The variance in Operating Revenues by segment is as follows:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase/ (Decrease) | 2026 | 2025 | Increase/ (Decrease) | |||||||||||||||||||||||||||||
| Electric Distribution | $ | 2,599.7 | $ | 2,717.9 | $ | (118.2) | $ | 7,723.7 | $ | 7,662.0 | $ | 61.7 | |||||||||||||||||||||||
| Natural Gas Distribution | 265.4 | 257.1 | 8.3 | 2,167.2 | 1,859.3 | 307.9 | |||||||||||||||||||||||||||||
| Electric Transmission | 568.1 | 578.1 | (10.0) | 1,733.7 | 1,694.6 | 39.1 | |||||||||||||||||||||||||||||
| Water Distribution | — | 69.2 | (69.2) | 116.0 | 180.5 | (64.5) | |||||||||||||||||||||||||||||
| Other | 458.8 | 428.3 | 30.5 | 1,383.1 | 1,273.2 | 109.9 | |||||||||||||||||||||||||||||
| Eliminations | (913.1) | (830.0) | (83.1) | (2,737.3) | (2,492.6) | (244.7) | |||||||||||||||||||||||||||||
| Total Operating Revenues | $ | 2,978.9 | $ | 3,220.6 | $ | (241.7) | $ | 10,386.4 | $ | 10,177.0 | $ | 209.4 | |||||||||||||||||||||||
Electric and Natural Gas Distribution Revenues:
Base Distribution Revenues: Base distribution rates are the approved, regulated charges to recover the utility’s cost of service, including operations and building and maintaining infrastructure, that allow utilities to recover investments and earn a reasonable return. Base distribution rates are established in base rate proceedings and approved by state regulators. Fluctuations in base distribution revenues impact earnings. Base distribution revenues include the impact of the revenue decoupling mechanism, which qualifies as an alternative revenue program (ARP).
The increase at Electric Distribution for the three and nine month periods is due primarily to base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025 and August 1, 2026. The increase at Natural Gas Distribution for the three and nine month periods is due primarily to base distribution rate increases effective November 1, 2025 at Yankee Gas, NSTAR Gas and EGMA, and also a shift in recovery of certain GSEP investments from tracked revenues into base rates, which does not impact total revenues or earnings.
| Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase | 2026 | 2025 | Increase | |||||||||||||||||||||||||||||
| Base Electric Distribution Revenues | $ | 827.1 | $ | 802.9 | $ | 24.2 | $ | 2,297.0 | $ | 2,226.4 | $ | 70.6 | |||||||||||||||||||||||
| Base Natural Gas Distribution Revenues | 147.5 | 120.1 | 27.4 | 988.7 | 723.2 | 265.5 | |||||||||||||||||||||||||||||
NSTAR Electric’s PBR mechanism allows for an annual adjustment to base distribution rates for inflation, exogenous events and future capital additions based on a historical five-year average of total capital additions. On December 30, 2025, the DPU approved a $55.1 million increase to base distribution rates for effect on January 1, 2026.
On July 25, 2025, the NHPUC approved a permanent rate increase to base distribution rates of $100.7 million, effective August 1, 2025 at PSNH. On July 21, 2026, the NHPUC approved PSNH’s first annual alternative regulatory framework filing reflecting a calculated $23.6 million in supplemental revenue support to be included in base distribution rates, for effect August 1, 2026.
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NSTAR Gas’ PBR mechanism allows for an annual adjustment to base distribution rates for inflation and exogenous events. On October 29, 2025, the DPU approved a $117.6 million increase to base distribution rates for effect on November 1, 2025. On January 16, 2026, the DPU approved a joint settlement agreement between NSTAR Gas and the Massachusetts Office of the Attorney General that allowed for a $45.0 million increase to base distribution rates effective January 1, 2026 related to non-GSEP plant additions.
EGMA was allowed two rate base resets in a DPU-approved October 7, 2020 rate settlement agreement, with the first rate base reset on November 1, 2024. EGMA’s base distribution rates were increased effective November 1, 2025 to incorporate a $62.2 million remaining revenue requirement.
PURA issued a final decision in the Yankee Gas distribution rate case on November 5, 2025 that was subsequently updated on March 11, 2026, that included a distribution rate increase of $86.7 million, effective November 1, 2025. The approved revenue requirement includes a previously recorded rate credit of $37.4 million plus carrying charges for non-firm margin credits over three years beginning November 1, 2025. Excluding the rate credit, the distribution rate increase totaled $100.1 million.
Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates on a fully reconciling basis through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings. Costs recovered through cost tracking mechanisms include, among others,
•energy supply and natural gas supply procurement;
•electric retail transmission charges;
•state-mandated charges incurred in furtherance of grid reliability, affordability, clean energy and other energy policy directives from the state, such as energy purchase agreements required by legislation and regulation and other energy-related costs, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), hardship and low income programs, net metering for distributed generation, and additionally for NSTAR Electric solar-related programs; and
•other delivery costs, such as certain capital tracking mechanisms for infrastructure improvements, and additionally for the Massachusetts utilities, pension and PBOP benefits.
Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings. Tracked revenues also include wholesale market sales transactions, such as sales of energy and energy-related products into the ISO-NE wholesale electricity market, sales of natural gas to third-party marketers, and the sale of RECs to various counterparties.
Customers have the choice to purchase electricity from their Eversource electric utility or from a competitive third-party supplier. For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third-party supplier. For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement. CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues. Certain eligible natural gas customers may elect to purchase natural gas from their Eversource natural gas utility or may contract separately with a gas supply operator. Revenue is not recorded for the sale of the natural gas commodity to customers who have contracted separately with these operators, only the delivery to a customer, as the utility is acting as an agent on behalf of the gas supply operator.
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The variance in tracked distribution revenues is due primarily to the following:
| For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| Electric Distribution | Natural Gas Distribution | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase/(Decrease) | 2026 | 2025 | Increase/(Decrease) | |||||||||||||||||||||||||||||
| Retail Tariff Tracked Revenues: | |||||||||||||||||||||||||||||||||||
| Energy supply procurement | $ | 543.7 | $ | 480.5 | $ | 63.2 | $ | 49.8 | $ | 46.3 | $ | 3.5 | |||||||||||||||||||||||
| Retail transmission | 601.5 | 563.4 | 38.1 | — | — | — | |||||||||||||||||||||||||||||
| State-mandated charges | 128.4 | 451.3 | (322.9) | 21.8 | 30.8 | (9.0) | |||||||||||||||||||||||||||||
| Other delivery | 192.3 | 176.6 | 15.7 | 16.2 | 26.9 | (10.7) | |||||||||||||||||||||||||||||
| Wholesale Market Sales Revenue | 288.7 | 220.6 | 68.1 | 27.5 | 29.6 | (2.1) | |||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| Electric Distribution | Natural Gas Distribution | ||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase/ (Decrease) | 2026 | 2025 | Increase/ (Decrease) | |||||||||||||||||||||||||||||
| Retail Tariff Tracked Revenues: | |||||||||||||||||||||||||||||||||||
| Energy supply procurement | $ | 1,539.2 | $ | 1,354.6 | $ | 184.6 | $ | 782.8 | $ | 593.4 | $ | 189.4 | |||||||||||||||||||||||
| Retail transmission | 1,599.7 | 1,442.6 | 157.1 | — | — | — | |||||||||||||||||||||||||||||
| State-mandated charges | 668.2 | 1,372.1 | (703.9) | 218.1 | 216.9 | 1.2 | |||||||||||||||||||||||||||||
| Other delivery | 521.6 | 473.2 | 48.4 | 57.5 | 174.4 | (116.9) | |||||||||||||||||||||||||||||
| Wholesale Market Sales Revenue | 1,029.7 | 723.5 | 306.2 | 111.8 | 140.9 | (29.1) | |||||||||||||||||||||||||||||
Operating Revenues do not directly correlate to charges on a customer’s bill and cannot be used to determine the percentage of a customer’s bill that contributes to various charges or programs. Differences between total company operating revenues and rates on a customer’s bill can arise due to customer class allocations and rate design, application of regulatory accounting, and other factors. For customers who have contracted with competitive third-party suppliers or gas supply operators, revenue is not recorded for the sale of the electricity or natural gas commodity, which, for those customers, represents a significant portion of a bill but is not reflected in total company operating revenues.
Fluctuations in retail tariff tracked revenues are driven by adjustments to retail rates to recover costs and changes in sales volumes.
Energy supply procurement: The increase in energy supply procurement within electric distribution for the three and nine month periods was driven by higher average prices and higher average supply-related sales volumes. The increase in energy supply procurement within natural gas distribution for the three month period was driven by higher average prices, partially offset by lower average supply-related sales volumes. The increase in energy supply procurement within natural gas distribution for the nine month period was driven by higher average prices and higher average supply-related sales volumes.
State-mandated charges: The variance in state-mandated charges for the three and nine month periods was primarily driven by changes in the retail NBFMCC rate at CL&P and the retail LTRCA rate at NSTAR Electric. The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state mandated energy purchase contracts with the Millstone and Seabrook nuclear power plants, net of the benefits received from selling this energy into the ISO-NE wholesale market. The NBFMCC rate changes primarily resulted from the timing of recovery of net costs associated with these power purchase agreements. The NSTAR Electric LTRCA rate includes recovery of costs incurred under the long-term state mandated energy purchase contract with Hydro-Québec that began in the first quarter of 2026, net of the benefits received from selling this energy into the ISO-NE wholesale market.
CL&P is required by both state legislation and regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered in 2019. NSTAR Electric is required by both state legislation and regulation to purchase renewable hydroelectric energy and renewable energy attributes from Hydro-Québec under a DPU-approved PPA entered in 2018. CL&P and NSTAR Electric do not have legislative authority to use this purchased output to serve their customer loads and therefore they sell the energy into the wholesale market and use the proceeds from the energy sales to offset the contract costs. The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the CL&P retail FMCC rate and the retail LTRCA rate at NSTAR Electric. CL&P and NSTAR Electric do not earn any margin or return from the sale of these contracted outputs, which solely offsets the cost of the legislatively required purchases from Millstone and Seabrook for CL&P and Hydro-Québec for NSTAR Electric. Changes in CL&P’s NBFMCC and NSTAR Electric’s LTRCA retail revenues and CL&P’s and NSTAR Electric’s wholesale market sales, as compared to the actual costs incurred, are deferred on the income statement by an offset to amortization expense (for CL&P) or purchased power expense (for NSTAR Electric).
The variance in state-mandated charges for the three and nine month periods was also due to lower revenues from net metering at NSTAR Electric and lower transition revenues at PSNH reflecting the refund of RGGI over-recoveries to customers, partially offset by higher energy efficiency revenues at NSTAR Electric.
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Other delivery: The increase in other delivery for the three and nine month periods at the electric distribution business is due primarily to higher revenues from CL&P’s capital tracking mechanism due to increased electric system improvements and NSTAR Electric’s AMI capital tracking mechanism and storm cost recovery mechanism, partially offset by the pension adjustment mechanism. The decrease in other delivery for the three and nine month periods at the natural gas distribution business is due primarily to a shift in recovery of certain GSEP investments into base rates, which does not impact total revenues or earnings, lower revenues from capital tracking mechanisms, as well as lower revenues associated with Yankee Gas's system expansion mechanism.
Wholesale market sales revenue: The increase in electric distribution wholesale market sales revenue for the three and nine month periods was due primarily to the sale of output from the Hydro-Québec PPA at NSTAR Electric, which began in the first quarter of 2026. The increase was also due to higher average electricity market prices received for wholesale sales at CL&P. ISO-NE average market prices received for CL&P’s wholesale sales increased to an average price of $51.73 per MWh and $71.71 per MWh for the three and nine months ended September 30, 2026, as compared to $48.79 per MWh and $64.09 per MWh for the same periods in 2025. The increase in the ISO-NE average market prices was driven primarily by higher natural gas prices in New England. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA with CL&P and the Hydro-Québec PPA with NSTAR Electric.
Electric Transmission Revenues: Electric transmission revenues decreased $10.0 million for the three month period, due primarily to the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent, partially offset by continued investment in our transmission infrastructure. Electric transmission revenues increased $39.1 million for the nine month period, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. The increase was partially offset by the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent and a decrease in revenues due to the impact of a regulatory liability established for revenues subject to refund that was recorded in the first quarter of 2026 as a result of the March 2026 FERC decision of $31.9 million. For further information, see "FERC Regulatory Matters - FERC ROE Complaints" in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
Water Distribution Revenues: Water distribution revenues decreased $69.2 million and $64.5 million for the three and nine month periods, due to the sale of Aquarion on June 30, 2026. For further information, see the “Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” section included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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 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 in rates charged to their customers.
Purchased Power, Purchased Natural Gas and Transmission expense includes costs associated with providing electric generation service supply and natural gas to all customers who have not migrated to third-party suppliers, the cost of energy purchase contracts entered into as required by regulation, and retail transmission costs. These electric and natural gas supply procurement costs, other energy-related costs, and retail transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). The variance in Purchased Power, Purchased Natural Gas and Transmission expense is due to the following:
| (Millions of Dollars) | Three Months Ended | Nine Months Ended | |||||||||
| Energy supply procurement costs | $ | 63.3 | $ | 186.0 | |||||||
| Other electric distribution costs | 12.3 | 28.8 | |||||||||
| Natural gas supply costs | 0.1 | 127.7 | |||||||||
| Transmission costs | 32.1 | 138.0 | |||||||||
| Eliminations | (53.6) | (127.6) | |||||||||
| Total Purchased Power, Purchased Natural Gas and Transmission | $ | 54.2 | $ | 352.9 | |||||||
The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues). The increase in other electric distribution costs for the three and nine month periods is due primarily to an increase in the LTRCA related to NSTAR Electric’s PPA with Hydro-Québec, for which costs began in the first quarter of 2026. The increase was partially offset by lower net metering costs at NSTAR Electric, lower long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and a decrease in transition costs at PSNH resulting from higher Regional Greenhouse Gas Initiatives (RGGI) proceeds received, which are credited back to customers.
Costs at the natural gas distribution segment relate to supply procurement costs for retail customers. Total natural gas costs increased for the three month period due primarily to higher average purchased volumes and an increase in the retail cost deferral, partially offset by lower average prices. Total natural gas costs increased for the nine month period due primarily to higher average prices, higher average purchased volumes, and an increase in the retail cost deferral.
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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 system. The increase in transmission costs for the three month period is due primarily to an increase in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers. The increase was partially offset by a decrease in costs billed by ISO-NE that support regional grid investments and a decrease in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network. The increase in transmission costs for the nine month period is due primarily to an increase in Local Network Service charges and an increase in the retail transmission cost deferral. These increases were partially offset by a decrease in costs billed by ISO-NE.
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). The variance in Operations and Maintenance expense is due to the following:
| (Millions of Dollars) | Three Months Ended | Nine Months Ended | |||||||||
| Base Electric Distribution (Non-Tracked Costs): | |||||||||||
Disallowed storm costs as part of PURA’s July 2026 final decision on CL&P’s storm prudency proceeding | $ | 40.8 | $ | 40.8 | |||||||
| Vegetation management | 8.1 | 13.7 | |||||||||
| Storm costs | 10.1 | 8.6 | |||||||||
| Shared corporate costs (including IT system depreciation at Eversource Service) | (1.6) | 7.3 | |||||||||
| General corporate costs (including vendor services in corporate areas, uncollectible expense, insurance, fees and assessments) | (2.1) | (1.5) | |||||||||
| Operations-related expenses (including vendor services, vehicles and materials) | (1.5) | (4.6) | |||||||||
| Employee-related expenses (including labor and benefits) | (11.5) | (25.5) | |||||||||
| Total Base Electric Distribution (Non-Tracked Costs) | 42.3 | 38.8 | |||||||||
| Tracked Electric Costs (Electric Distribution and Electric Transmission) | (18.4) | 13.4 | |||||||||
| Total Electric Distribution and Electric Transmission | 23.9 | 52.2 | |||||||||
| Natural Gas Distribution: | |||||||||||
| Base (Non-Tracked Costs) - Increase due primarily to higher uncollectible expense and shared corporate costs | 3.8 | 26.1 | |||||||||
| Tracked Costs | (2.9) | (10.9) | |||||||||
| Total Natural Gas Distribution | 0.9 | 15.2 | |||||||||
| Absence of Water Distribution | (25.7) | (23.8) | |||||||||
| Eversource Parent and Other Companies - other operations and maintenance | 17.4 | 93.0 | |||||||||
| Eliminations | (30.1) | (117.8) | |||||||||
| Total Operations and Maintenance | $ | (13.6) | $ | 18.8 | |||||||
Depreciation expense decreased for the three month period due primarily to a $40.0 million benefit associated with the reduction of the rate base offset established in 2020 as part of the rate settlement and approval of the acquisition of EGMA, partially offset by higher net plant in service balances. Depreciation expense increased for the nine month period due primarily to higher net plant in service balances and higher depreciation rates at Yankee Gas resulting from the November 2025 rate case decision, partially offset by the reduction of the EGMA rate base offset in the third quarter.
Amortization expense includes the deferral of energy-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. These costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates.
The variance in Amortization for the three and nine month periods is due primarily to the deferral adjustments of energy-related and other tracked costs at CL&P (included in the non-bypassable component of the FMCC mechanism and the SBC mechanism), NSTAR Electric and PSNH, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The CL&P non-bypassable FMCC rates and the SBC retail rates in effect for the three and nine month periods of 2026 were lower than those in effect for the three and nine month periods of 2025. These lower collections, as compared to the actual costs incurred, resulted in a decrease to amortization expense for the three and nine month periods of $206.3 million and $334.1 million for the CL&P non-bypassable FMCC mechanism, respectively, and $94.0 million and $180.8 million for the CL&P SBC deferral adjustment, respectively.
The variance in Amortization for the three and nine month periods is partially offset by an increase in the stranded cost recovery mechanism at PSNH and the absence in 2026 of a benefit from the impact of the PSNH rate case decision in July 2025. The rate case decision allowed for the recoupment of temporary rates and the allowed recovery of other deferrals resulting in a pre-tax benefit to earnings of $15.6 million, the majority of which was recorded as a reduction to amortization expense on the statement of income in the third quarter of 2025.
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 includes a deferral adjustment that reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. Energy Efficiency Programs expense increased for the three and nine month periods due primarily to the deferral adjustment.
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Taxes Other Than Income Taxes expense increased for the three month period due primarily to higher property taxes as a result of higher utility plant balances across our subsidiaries, partially offset by lower Connecticut gross earnings taxes. Taxes Other Than Income Taxes expense increased for the nine month period due primarily to higher property taxes as a result of higher utility plant balances across our subsidiaries and higher Connecticut gross earnings taxes.
Sale of Aquarion relates to a charge of $111.4 million associated with the loss on the sale of the Aquarion water distribution business. See “Business Development and Capital Expenditures - Sale of Aquarion Water Distribution Business” included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information.
Interest Expense increased for the three and nine month periods due to the following:
| (Millions of Dollars) | Three Months Ended | Nine Months Ended | |||||||||
| Long-term debt | $ | 29.3 | $ | 98.5 | |||||||
| Capitalized AFUDC related to debt funds | 6.4 | 11.4 | |||||||||
| Amortization of debt discounts and premiums, net | 0.4 | 1.1 | |||||||||
Regulatory deferrals (includes interest expense accrued on the FERC ROE regulatory liability of $1.0 million and $31.1 million recorded in the third quarter and first nine months of 2026, respectively) | 12.4 | 89.2 | |||||||||
| Short-term notes payable | (17.6) | (42.0) | |||||||||
| RRBs | (0.4) | (1.1) | |||||||||
| Other | 0.1 | 0.3 | |||||||||
| Total Interest Expense | $ | 30.6 | $ | 157.4 | |||||||
Losses on Offshore Wind for the nine months ended 2026 relates to the pre-tax charge of $194 million in the second quarter of 2026 associated with increasing our offshore wind contingent liability for expected future payments associated with the Revolution Wind project. Losses on Offshore Wind for the three and nine months ended 2025 relates to the pre-tax charge of $284 million associated with increasing our offshore wind contingent liability for expected future payments under the terms of the 2024 sale agreement with GIP for the South Fork Wind and Revolution Wind projects recorded in the third quarter of 2025. See “Earnings Overview - Offshore Wind Contingent Liability” included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information.
Other Income, Net increased for the three and nine month periods due to the following:
| (Millions of Dollars) | Three Months Ended | Nine Months Ended | |||||||||
| Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion | $ | 7.4 | $ | 25.8 | |||||||
| Interest Income (primarily on regulatory deferrals) | 9.3 | 5.5 | |||||||||
| Capitalized AFUDC related to equity funds | 9.2 | 14.5 | |||||||||
| Equity in Earnings of Unconsolidated Affiliates | 0.4 | (1.6) | |||||||||
| Investment Income/(Loss) | 4.3 | 5.2 | |||||||||
| Other (including the gain on sale of an intangible asset in the second quarter of 2026) | 0.9 | 39.5 | |||||||||
| Total Other Income, Net | $ | 31.5 | $ | 88.9 | |||||||
Income Tax Expense increased for the three month period due primarily to higher pre-tax earnings ($39.1 million), the absence of a decrease in reserves ($166.1 million), a decrease in return-to-provision adjustments ($78.1 million), an increase in rate base offset amortization ($9.8 million), and a decrease in amortization of EDIT ($4.1 million), partially offset by lower state taxes ($21.4 million) and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($28.4 million).
Income Tax Expense increased for the nine month period. Income Tax expense decreased due to lower pre-tax earnings ($10.4 million), and increased due primarily to the absence of a decrease in reserves ($166.1 million), a decrease in return-to-provision adjustments ($78.1 million), an increase in rate base offset amortization ($9.8 million), and an increase in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($36.2 million), partially offset by lower state taxes ($21.6 million), an increase in amortization of EDIT ($2.6 million), and lower share-based payment tax deficiency ($0.8 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 nine months ended September 30, 2026 and 2025 included in this combined Quarterly Report on Form 10-Q:
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase/ (Decrease) | 2026 | 2025 | Increase/ (Decrease) | 2026 | 2025 | Increase/ (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
| Operating Revenues | $ | 3,786.6 | $ | 4,035.9 | $ | (249.3) | $ | 3,237.1 | $ | 3,012.7 | $ | 224.4 | $ | 1,093.3 | $ | 1,002.3 | $ | 91.0 | |||||||||||||||||||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchased Power and Transmission | 1,671.9 | 1,409.6 | 262.3 | 871.0 | 868.8 | 2.2 | 241.0 | 187.1 | 53.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Operations and Maintenance | 645.0 | 611.0 | 34.0 | 572.8 | 538.5 | 34.3 | 195.7 | 211.8 | (16.1) | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation | 338.4 | 322.8 | 15.6 | 367.5 | 330.4 | 37.1 | 134.9 | 125.8 | 9.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Amortization of Regulatory Assets, Net | 36.7 | 529.3 | (492.6) | 119.4 | 97.4 | 22.0 | 56.0 | 45.5 | 10.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Energy Efficiency Programs | 108.1 | 129.9 | (21.8) | 312.6 | 205.4 | 107.2 | 28.2 | 35.3 | (7.1) | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes Other Than Income Taxes | 349.6 | 343.6 | 6.0 | 250.6 | 236.7 | 13.9 | 84.5 | 80.8 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 3,149.7 | 3,346.2 | (196.5) | 2,493.9 | 2,277.2 | 216.7 | 740.3 | 686.3 | 54.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating Income | 636.9 | 689.7 | (52.8) | 743.2 | 735.5 | 7.7 | 353.0 | 316.0 | 37.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 204.1 | 151.5 | 52.6 | 229.5 | 183.7 | 45.8 | 83.7 | 65.2 | 18.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Other Income, Net | 59.2 | 40.1 | 19.1 | 157.7 | 141.1 | 16.6 | 33.0 | 33.5 | (0.5) | ||||||||||||||||||||||||||||||||||||||||||||
| Income Before Income Tax Expense | 492.0 | 578.3 | (86.3) | 671.4 | 692.9 | (21.5) | 302.3 | 284.3 | 18.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense | 112.4 | 148.8 | (36.4) | 155.4 | 163.7 | (8.3) | 72.0 | 72.9 | (0.9) | ||||||||||||||||||||||||||||||||||||||||||||
| Net Income | $ | 379.6 | $ | 429.5 | $ | (49.9) | $ | 516.0 | $ | 529.2 | $ | (13.2) | $ | 230.3 | $ | 211.4 | $ | 18.9 | |||||||||||||||||||||||||||||||||||
Operating Revenues
Sales Volumes: A summary of our retail electric GWh sales volumes is as follows:
| For the Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Percentage Increase | |||||||||||||||
| CL&P | 15,565 | 15,375 | 1.2 | % | |||||||||||||
| NSTAR Electric | 17,755 | 17,354 | 2.3 | % | |||||||||||||
| PSNH | 6,027 | 5,907 | 2.0 | % | |||||||||||||
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, decreased $249.3 million at CL&P, increased $224.4 million at NSTAR Electric and $91.0 million at PSNH for the nine month period.
Base Distribution Revenues: Base distribution rates are the approved, regulated charges to recover the utility’s cost of service, including operations and building and maintaining infrastructure, that allow utilities to recover investments and earn a reasonable return. Base distribution rates are established in base rate proceedings and approved by state regulators. Fluctuations in base distribution revenues impact earnings. Base distribution revenues include the impact of the revenue decoupling mechanism, which qualifies as an ARP. The increases are due primarily to base distribution rate increases at NSTAR Electric effective January 1, 2026 and at PSNH effective August 1, 2025 and August 1, 2026.
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase | 2026 | 2025 | Increase | 2026 | 2025 | Increase | ||||||||||||||||||||||||||||||||||||||||||||
| Base Distribution Revenues | $ | 860.5 | $ | 860.5 | $ | — | $ | 1,023.9 | $ | 983.1 | $ | 40.8 | $ | 412.6 | $ | 382.8 | $ | 29.8 | |||||||||||||||||||||||||||||||||||
Tracked Distribution Revenues: Tracked distribution revenues consist of certain costs that are recovered from customers in retail rates on a fully reconciling basis through regulatory commission-approved cost tracking mechanisms and therefore, recovery of these costs has no impact on earnings. Costs recovered through cost tracking mechanisms include, among others,
•energy supply procurement;
•retail transmission charges;
•state-mandated charges incurred in furtherance of grid reliability, affordability, clean energy and other energy policy directives from the state, such as energy purchase agreements required by legislation and regulation and other energy-related costs, energy efficiency program costs, electric restructuring and stranded cost recovery revenues (including securitized RRB charges), hardship and low income programs, net metering for distributed generation, and additionally for NSTAR Electric solar-related programs; and
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•other delivery costs, such as certain capital tracking mechanisms for infrastructure improvements, and additionally for NSTAR Electric, pension and PBOP benefits.
Revenues from certain of these cost tracking mechanisms also include certain incentives earned, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings. 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.
Customers have the choice to purchase electricity from their Eversource electric utility or from a competitive third-party supplier. For customers who have contracted separately with these competitive suppliers, revenue is not recorded for the sale of the electricity commodity, as the utility is acting as an agent on behalf of the third-party supplier. For customers that choose to purchase electric generation from CL&P, NSTAR Electric or PSNH, each utility purchases power on behalf of, and is permitted to recover the related energy supply cost without mark-up from, its customers, and records offsetting amounts in revenues and purchased power related to this energy supply procurement. CL&P, NSTAR Electric and PSNH each remain as the distribution service provider for all customers and charge a regulated rate for distribution delivery service recorded in revenues.
The variance in tracked distribution revenues is due primarily to the following:
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| CL&P | NSTAR Electric | PSNH | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Increase/ (Decrease) | 2026 | 2025 | Increase/ (Decrease) | 2026 | 2025 | Increase/ (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
| Retail Tariff Tracked Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Energy supply procurement | $ | 1,022.2 | $ | 817.5 | $ | 204.7 | $ | 281.5 | $ | 355.5 | $ | (74.0) | $ | 235.5 | $ | 181.6 | $ | 53.9 | |||||||||||||||||||||||||||||||||||
| Retail transmission | 668.7 | 537.8 | 130.9 | 699.1 | 699.0 | 0.1 | 231.9 | 205.8 | 26.1 | ||||||||||||||||||||||||||||||||||||||||||||
| State-mandated charges | 138.5 | 824.0 | (685.5) | 483.1 | 468.1 | 15.0 | 46.6 | 80.0 | (33.4) | ||||||||||||||||||||||||||||||||||||||||||||
| Other delivery | 227.4 | 217.0 | 10.4 | 288.8 | 251.8 | 37.0 | 5.4 | 4.4 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Wholesale Market Sales Revenue | 686.1 | 572.3 | 113.8 | 317.7 | 125.1 | 192.6 | 25.9 | 26.1 | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||
Operating Revenues do not directly correlate to charges on a customer’s bill and cannot be used to determine the percentage of a customer’s bill that contributes to various charges or programs. Differences between total company operating revenues and rates on a customer’s bill can arise due to customer class allocations and rate design, application of regulatory accounting, and other factors. For customers who have contracted with competitive third-party suppliers, revenue is not recorded for the sale of the electricity commodity, which, for those customers, represents a significant portion of a bill but is not reflected in total company operating revenues.
Fluctuations in retail tariff tracked revenues are driven by adjustments to retail rates to recover costs and changes in sales volumes.
Energy supply procurement: The increase in energy supply procurement at CL&P and PSNH for the nine month period was driven by higher average prices and higher average supply-related sales volumes. The decrease in energy supply procurement at NSTAR Electric for the nine month period was driven by lower average supply-related sales volumes, partially offset by higher average prices.
State-mandated charges: The variance in state-mandated charges for the nine month period was primarily driven by changes in the retail NBFMCC rate at CL&P and the retail LTRCA rate at NSTAR Electric. The CL&P NBFMCC rate includes the recovery of costs incurred under long-term state mandated energy purchase contracts with the Millstone and Seabrook nuclear power plants, net of the benefits received from selling this energy into the ISO-NE wholesale market. The NBFMCC rate changes primarily resulted from the timing of recovery of net costs associated with these power purchase agreements. The NSTAR Electric LTRCA rate includes recovery of costs incurred under the long-term state mandated energy purchase contract with Hydro-Québec that began in the first quarter of 2026, net of the benefits received from selling this energy into the ISO-NE wholesale market.
CL&P is required by both state legislation and regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered in 2019. NSTAR Electric is required by both state legislation and regulation to purchase renewable hydroelectric energy and renewable energy attributes from Hydro-Québec under a DPU-approved PPA entered in 2018. CL&P and NSTAR Electric do not have legislative authority to use this purchased output to serve their customer loads and therefore they sell the energy into the wholesale market and use the proceeds from the energy sales to offset the contract costs. The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the CL&P retail FMCC rate and the retail LTRCA rate at NSTAR Electric. CL&P and NSTAR Electric do not earn any margin or return from the sale of these contracted outputs, which solely offsets the cost of the legislatively required purchases from Millstone and Seabrook for CL&P and Hydro-Québec for NSTAR Electric. Changes in CL&P’s NBFMCC and NSTAR Electric’s LTRCA retail revenues and CL&P’s and NSTAR Electric’s wholesale market sales, as compared to the actual costs incurred, are deferred on the income statement by an offset to amortization expense (for CL&P) or purchased power expense (for NSTAR Electric).
The variance in state-mandated charges for the nine month period was also due to lower revenues from net metering at NSTAR Electric and lower transition revenues at PSNH reflecting the refund of RGGI over-recoveries to customers, partially offset by higher energy efficiency revenues at NSTAR Electric.
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Other delivery: The increase in other delivery for the nine month period at CL&P is due to higher revenues from the capital tracking mechanism due to increased electric system improvements. At NSTAR Electric, the increase is due to the AMI capital tracking mechanism and the storm cost recovery mechanism, partially offset by the pension adjustment mechanism.
Wholesale market sales revenue: The increase in CL&P’s wholesale market sales revenue for the nine month period was due primarily to higher average electricity market prices received for wholesale sales. ISO-NE average market prices received for CL&P’s wholesale sales increased to an average price of $71.71 per MWh for the nine months ended September 30, 2026, as compared to $64.09 per MWh for the same period in 2025. The increase in the ISO-NE average market prices was driven primarily by higher natural gas prices in New England. The increase in wholesale market revenues at NSTAR Electric is due primarily to the sale of output from the Hydro-Québec PPA, which began in the first quarter of 2026. Volumes sold into the market were primarily from the sale of output generated by the Millstone PPA and Seabrook PPA with CL&P and the Hydro-Québec PPA with NSTAR Electric.
Transmission Revenues: Transmission revenues increased $8.8 million at CL&P, $17.2 million at NSTAR Electric, and $13.1 million at PSNH for the nine month period, due primarily to a higher transmission rate base as a result of our continued investment in our transmission infrastructure. These increases were partially offset by the impact of a regulatory liability established for revenues subject to refund that was recorded in the first quarter of 2026 as a result of the March 19, 2026 FERC decision in the FERC base ROE complaints of $15.3 million, $12.6 million, and $4.0 million for CL&P, NSTAR Electric and PSNH, respectively, and the impact from the March FERC decision that lowered the allowed ROE from 10.57 percent to 9.57 percent. For further information, see "FERC Regulatory Matters - FERC ROE Complaints" in this Management's Discussion and Analysis of Financial Condition and Results of Operations.
Eliminations: Eliminations are 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 in rates charged to their customers. The impact of eliminations decreased revenues by $31.3 million at CL&P and $4.2 million at NSTAR Electric and increased revenues $1.1 million at PSNH for the nine month period.
Purchased Power and Transmission expense includes costs associated with providing electric generation service supply to all customers who have not migrated to third-party suppliers, the cost of energy purchase contracts entered into as required by regulation, and retail transmission costs. These energy supply procurement costs, other energy-related costs, and retail transmission costs are recovered from customers in rates through commission-approved cost tracking mechanisms, which have no impact on earnings (tracked costs). The variance in Purchased Power and Transmission expense is due to the following:
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | ||||||||||||||
| Energy supply procurement costs | $ | 204.4 | $ | (74.6) | $ | 56.2 | |||||||||||
| Other electric distribution costs | (26.0) | 80.2 | (25.4) | ||||||||||||||
| Transmission costs | 115.2 | 0.8 | 22.0 | ||||||||||||||
| Eliminations | (31.3) | (4.2) | 1.1 | ||||||||||||||
| Total Purchased Power and Transmission | $ | 262.3 | $ | 2.2 | $ | 53.9 | |||||||||||
The variance in energy supply procurement costs is offset in Operating Revenues (tracked energy supply procurement revenues). The variance in other electric distribution costs at NSTAR Electric is due primarily to an increase in the LTRCA related to NSTAR Electric’s PPA with Hydro-Québec, for which costs began in the first quarter of 2026, partially offset by lower net metering costs, at CL&P is due to lower long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism, and at PSNH is due to a decrease in transition costs resulting from higher RGGI proceeds received, which are credited back to customers.
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 system.
•The increase in transmission costs at CL&P was due primarily to an increase in costs billed by ISO-NE that support regional grid investments, an increase in Local Network Service charges, which reflect the cost of transmission service provided by Eversource over our local transmission network and an increase in the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers.
•The increase in transmission costs at NSTAR Electric was due primarily to an increase in Local Network Service charges, partially offset by a decrease in costs billed by ISO-NE and a decrease in the retail transmission cost deferral.
•The increase in transmission costs at PSNH was due primarily to an increase in Local Network Service charges and an increase in the retail transmission cost deferral, partially offset by a decrease in costs billed by ISO-NE.
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Operations and Maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings (non-tracked costs). The variance in Operations and Maintenance expense is due to the following:
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | ||||||||||||||
| Base Electric Distribution (Non-Tracked Costs): | |||||||||||||||||
Disallowed storm costs as part of PURA’s July 2026 final decision on CL&P’s storm prudency proceeding | $ | 40.8 | $ | — | $ | — | |||||||||||
| General corporate costs (including vendor services in corporate areas, uncollectible expense, insurance, fees and assessments) | 9.8 | 0.3 | (11.6) | ||||||||||||||
| Vegetation Management | 4.9 | 4.9 | 3.9 | ||||||||||||||
| Storm costs | 4.4 | 3.1 | 1.1 | ||||||||||||||
| Shared corporate costs (including IT system depreciation at Eversource Service) | 1.5 | 4.9 | 0.9 | ||||||||||||||
| Operations-related expenses (including vendor services, vehicles and materials) | (5.9) | 3.3 | (2.0) | ||||||||||||||
| Employee-related expenses (including labor and benefits) | (7.7) | (11.1) | (6.7) | ||||||||||||||
| Total Base Electric Distribution (Non-Tracked Costs) | 47.8 | 5.4 | (14.4) | ||||||||||||||
| Total Tracked Costs | (13.8) | 28.9 | (1.7) | ||||||||||||||
| Total Operations and Maintenance | $ | 34.0 | $ | 34.3 | $ | (16.1) | |||||||||||
Depreciation expense increased for the nine month period 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-related costs and other costs that are included in certain regulatory commission-approved cost tracking mechanisms. This deferral adjusts expense to match the corresponding revenues compared to the actual costs incurred. These costs are recovered from customers in rates and have no impact on earnings. Amortization expense also includes the amortization of certain costs as those costs are collected in rates. The variance in Amortization of Regulatory Assets, Net for the nine month period is due primarily to the following:
•The variance at CL&P was due primarily to the deferral adjustment of energy-related and other tracked costs that are included in the non-bypassable component of the FMCC mechanism and the SBC mechanism, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The CL&P non-bypassable FMCC rates and the SBC retail rates in effect in the nine month period of 2026 were lower than those in the nine month period of 2025. These lower collections, as compared to the actual costs incurred, resulted in a decrease to amortization expense of $334.1 million for the CL&P non-bypassable FMCC mechanism and $180.8 million for the CL&P SBC deferral adjustment.
•The variance at NSTAR Electric was due primarily to the deferral adjustment of costs included in the solar facilities regulatory mechanism and higher recoveries of storm costs recovered in rates, partially offset by the deferral adjustment of energy-related and other tracked costs that are included in the AMI capital tracking mechanism.
•The variance at PSNH was due primarily to an increase in the stranded cost recovery mechanism and the absence in 2026 of a benefit from the impact of the PSNH rate case decision in July 2025. The rate case decision allowed for the recoupment of temporary rates and the allowed recovery of other deferrals resulting in a pre-tax benefit to earnings of $15.6 million, the majority of which was recorded as a reduction to amortization expense on the statement of income in the third quarter of 2025. This was partially offset by the completion of certain storm costs amortization and amortization of overcollections in the Pole Plant Adjustment Mechanism, which was phased out as part of the 2025 NHPUC-approved distribution rate case and is being fully refunded to customers.
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 includes a deferral adjustment that reflects the actual costs of energy efficiency programs compared to the amounts billed to customers, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs. The variance in Energy Efficiency Programs expense for the nine month period is due primarily to the following:
•The decrease at CL&P was due to lower electric vehicle program spending and the deferral adjustment.
•The increase at NSTAR Electric was due to the deferral adjustment, partially offset by lower program spending.
•The decrease at PSNH was due to the deferral adjustment.
Taxes Other Than Income Taxes - the variance is due primarily to the following:
•The increases at CL&P, NSTAR Electric and PSNH were due to higher property taxes as a result of higher utility plant balances. The increase at CL&P was partially offset by lower Connecticut gross earnings taxes.
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Interest Expense - the variance is due to the following:
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | ||||||||||||||
| Long-term debt | $ | (1.6) | $ | 22.5 | $ | 9.0 | |||||||||||
| Capitalized AFUDC related to debt funds | 5.7 | 0.3 | 1.0 | ||||||||||||||
| Amortization of debt discounts and premiums, net | (0.6) | — | 0.4 | ||||||||||||||
Regulatory deferrals (includes interest expense accrued on the FERC ROE regulatory liability of $14.9 million, $12.4 million and $3.8 million, respectively, recorded in the first nine months of 2026) | 48.2 | 31.2 | 11.2 | ||||||||||||||
| Short-term notes payable | 0.9 | (7.9) | (1.9) | ||||||||||||||
| RRBs | — | — | (1.1) | ||||||||||||||
| Other | — | (0.3) | (0.1) | ||||||||||||||
| Total Interest Expense | $ | 52.6 | $ | 45.8 | $ | 18.5 | |||||||||||
Other Income, Net - the variance is due to the following:
| (Millions of Dollars) | CL&P | NSTAR Electric | PSNH | ||||||||||||||
| Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion | $ | 7.7 | $ | 10.1 | $ | 2.2 | |||||||||||
| Interest Income (primarily on regulatory deferrals) | (4.7) | (1.9) | (0.2) | ||||||||||||||
| Capitalized AFUDC related to equity funds | 15.7 | 4.8 | (2.7) | ||||||||||||||
| Investment (Loss)/Income | 0.5 | 3.6 | 0.1 | ||||||||||||||
| Other | (0.1) | — | 0.1 | ||||||||||||||
| Total Other Income, Net | $ | 19.1 | $ | 16.6 | $ | (0.5) | |||||||||||
Income Tax Expense - the variance is due primarily to the following:
•The decrease at CL&P was due primarily to lower pre-tax earnings ($18.1 million), lower state taxes ($7.1 million), an increase in amortization of EDIT ($1.0 million), lower share-based payment tax deficiency ($0.3 million), a decrease in return-to-provision adjustments ($5.8 million) and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($4.1 million).
•The decrease at NSTAR Electric was due primarily to lower pre-tax earnings ($4.5 million), lower state taxes ($1.7 million), lower share-based payment tax deficiency ($0.5 million), and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($1.6 million).
•The decrease at PSNH was due primarily to higher pre-tax earnings ($3.8 million), a decrease in return-to-provision adjustments ($4.7 million), an increase in amortization of EDIT ($1.1 million) and a decrease in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.2 million), partially offset by higher state taxes ($1.3 million).
EARNINGS SUMMARY
CL&P's earnings decreased $49.9 million for the nine month period due primarily to the impact of PURA’s July 2026 final decision on CL&P’s storm prudency proceeding that disallowed certain storm costs from recovery, the after-tax first quarter 2026 charge of $20.8 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints for estimated refunds with interest for the fifteen-month first complaint period, the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent, as well higher net interest expense on regulatory deferrals, higher depreciation expense and higher property tax expense. The earnings decrease was partially offset by higher revenues from the capital tracking mechanism due to increased electric system improvements and higher transmission rate base as a result of our continued investment in our transmission infrastructure.
NSTAR Electric's earnings decreased $13.2 million for the nine month period due primarily to the after-tax first quarter 2026 charge of $17.6 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints for estimated refunds with interest for the fifteen-month first complaint period, the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent, as well as higher depreciation expense, higher interest expense on long-term debt, higher operations and maintenance expense, lower earnings from its grid modernization tracking mechanism and higher net interest expense on regulatory deferrals. The earnings decrease was partially offset by higher revenues as a result of the base distribution rate increase effective January 1, 2026, higher earnings from the AMI capital tracking mechanism and higher transmission rate base as a result of our continued investment in our transmission infrastructure.
PSNH's earnings increased $18.9 million for the nine month period due primarily to higher revenues as a result of the base distribution rate increases effective August 1, 2025 and August 1, 2026, lower operations and maintenance expense, and higher transmission rate base as a result of our continued investment in our transmission infrastructure. The earnings increase was partially offset by the after-tax first quarter 2026 charge of $5.5 million resulting from the March 19, 2026 FERC decision in the FERC base ROE complaints for estimated refunds with interest for the fifteen-month first complaint period, the prospective impact from the March 19, 2026 FERC decision in the FERC base ROE complaints that lowered the allowed ROE from 10.57 percent to 9.57 percent, the absence in 2026 of a benefit from the impact of the PSNH rate case decision in July 2025, higher interest expense on long-term debt and higher depreciation expense.
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LIQUIDITY
Cash Flows: CL&P had cash flows provided by operating activities of $673.0 million for the nine months ended September 30, 2026, as compared to $1.13 billion in the same period of 2025. The decrease in operating cash flows was due primarily to a decrease in recoveries of the non-bypassable FMCC and the SBC regulatory tracking mechanism driven by the timing of collections. The decrease in these regulatory recoveries totaled $334.1 million for the CL&P non-bypassable FMCC mechanism and $180.8 million for the CL&P SBC mechanism. Operating cash flows were also unfavorably impacted by a $108.2 million increase in income tax payments made in 2026 as compared to 2025, an increase of $5.7 million in cash payments to vendors for storm costs and a $3.0 million increase in cost of removal expenditures. These unfavorable impacts were partially offset by an improvement in regulatory recoveries for retail and wholesale transmission costs and other regulatory cost tracking mechanisms driven by the timing of cash collections, the timing of cash payments made on our accounts payable, the timing of cash collections on our accounts receivable and the timing of other working capital items. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows.
NSTAR Electric had cash flows provided by operating activities of $1.09 billion for the nine months ended September 30, 2026, as compared to $821.3 million in the same period of 2025. The increase in operating cash flows was due primarily to the timing of cash collections on our accounts receivable, an increase of $111.4 million in operating cash flows due to income tax refunds received in 2026 compared to income tax payments made in 2025, an $11.7 million decrease in cost of removal expenditures, and the timing of other working capital items. These favorable impacts were partially offset by an increase of $79.5 million in cash payments to vendors for storm costs, the timing of cash payments made on our accounts payable, and an increase in regulatory recoveries driven primarily by the timing of collections for energy supply costs and other regulatory cost tracking mechanisms. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows.
PSNH had cash flows provided by operating activities of $375.8 million for the nine months ended September 30, 2026, as compared to $358.3 million in the same period of 2025. The increase in operating cash flows was due primarily to a decrease of $31.0 million in cash payments to vendors for storm costs, a decrease in regulatory recoveries driven primarily by the timing of collections for energy supply costs and other regulatory cost tracking mechanisms and a $1.8 million decrease in cost of removal expenditures, partially offset by the timing of cash collections on our accounts receivable, the timing of cash payments made on our accounts payable, an increase of $1.2 million in tax payments made in 2026 compared to 2025, and the timing of other working capital items. The impacts of regulatory collections are included in both Regulatory Recoveries and Amortization of Regulatory Assets, Net on the statements of cash flows.
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.
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: Interest rate risk is associated with changes in interest rates for our outstanding long-term debt. Our interest rate risk is significantly reduced as typically all or most of our debt financings have fixed interest rates. As of September 30, 2026, all of our long-term debt was at a fixed interest rate.
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 September 30, 2026, our regulated companies held collateral (letters of credit or cash) of $17.5 million from counterparties related to our standard service contracts. As of September 30, 2026, Eversource had $29.0 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 2025 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 2025 Form 10-K.
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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 September 30, 2026 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 September 30, 2026 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.
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 2025 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 2025 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 2025 Form 10-K, which risk factors are incorporated herein by reference. These risk factors should be considered carefully in evaluating our risk profile. The following risk factor update should be read in conjunction with the risk factors described in the 2025 Form 10-K.
Eversource and other transmission-owning electric companies within ISO-NE have been subject to complaints challenging the reasonableness of our allowed ROEs since 2011. On March 19, 2026, FERC issued an order finding that the base ROE was unjust and unreasonable and setting a new base ROE for the first complaint period and prospectively from October 2014. FERC ordered refunds with interest for those historical refund periods, which are material to us, and dismissed the other three complaints. The material amount of the refunds required by FERC’s order is driven primarily by the length of the retroactive refund period, which spans nearly 12 years. Application of the revised base ROE to revenues collected over this extended historical period substantially increased the aggregate refund obligation compared to what would have resulted from a shorter refund period. The order adversely affects our financial position, results of operations, liquidity, and cash flows. Eversource has appealed the FERC order, however, there can be no assurance that the appeal will result in modification or reversal of the FERC order, and we cannot predict the ultimate outcome of this proceeding or its timing.
Although we have estimated a range of reasonably possible refund exposure and recorded a liability representing the low end of that range, additional losses significantly exceeding amounts currently recorded remain reasonably possible. As we continue to refine the refund calculation and coordinate the refund process with other New England transmission owners and ISO-NE, additional losses for the retroactive refund period may be recognized in future periods. Such losses would have a material adverse effect on our financial position, results of operations, liquidity and cash flows. Under the refund timing currently required by FERC, refunds will be required before completion of the appellate process, resulting in significant cash outflows prior to final judicial resolution. The calculation and processing of refunds involve significant complexity, are time-intensive, and require coordination among the NETOs and ISO-NE, which may affect the amount and timing of refunds. Additionally, the methodologies and conclusions reflected in the FERC order may influence future transmission ROE proceedings and could result in lower authorized returns on existing and future transmission investments.
See "FERC Regulatory Matters - FERC ROE Complaints," in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 9C, “Commitments and Contingencies - FERC ROE Complaints,” to the financial statements for additional information regarding the financial impact of this order.
Other than as set forth above, there have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in our 2025 Form 10-K.
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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 Shares Purchased | Average Price 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) | ||||||||||
| July 1 - July 31, 2026 | — | $ | — | — | — | |||||||||
| August 1 - August 31, 2026 | — | — | — | — | ||||||||||
| September 1 - September 30, 2026 | 2,492 | 64.59 | — | — | ||||||||||
| Total | 2,492 | $ | 64.59 | — | — | |||||||||
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended September 30, 2026, none of the Company’s directors or officers adopted terminated
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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) | ||||||||
| 31 | Certification by the Chairman of the Board, President and 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 Chairman of the Board, President and 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 and Chief Executive Officer 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 Chief Executive Officer 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) | ||||||||
| 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 | |||||||
| 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 September 30, 2026, formatted in Inline XBRL | |||||||
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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 | |||||||||||
| November 6, 2026 | 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 | |||||||||||
| November 6, 2026 | 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 | |||||||||||
| November 6, 2026 | 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 | |||||||||||
| November 6, 2026 | By: | /s/ Jay S. Buth | |||||||||
| Jay S. Buth | |||||||||||
| Vice President, Controller and Chief Accounting Officer | |||||||||||
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