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What changed in Eversource Energy's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Eversource Energy's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+669 added−646 removedSource: 10-K (2026-02-17) vs 10-K (2025-02-14)

Top changes in Eversource Energy's 2025 10-K

669 paragraphs added · 646 removed · 433 edited across 10 sections

Item 1. Business

Business — how the company describes what it does

90 edited+34 added−29 removed123 unchanged
Biggest changeThe SBC rate changes annually and is reconciled annually in accordance with the policies and procedures of the NHPUC, with any differences refunded to, or recovered from, customers. • A Regulatory Reconciliation Adjustment (RRA) that reconciles the difference between certain estimated and actual costs included in base distribution rates, including costs related to regulatory assessments, vegetation management program expenses, property tax expenses, storm cost amortization updated for the actual cost of long-term debt and lost base revenues related to net metering. • A Pole Plant Adjustment Mechanism (PPAM) that recovers certain costs associated with poles acquired under a 2023 purchase agreement between PSNH and Consolidated Communications, including the operation and maintenance of poles, pole inspections, and vegetation management expenses incurred, beginning February 10, 2021 through April 30, 2023.
Biggest changeThe SBC rate changes annually and is reconciled annually in accordance with the policies and procedures of the NHPUC, with any differences refunded to, or recovered from, customers. • A Regulatory Reconciliation Adjustment (RRA) that reconciles the difference between certain estimated and actual costs included in base distribution rates, including costs related to regulatory assessments, property tax expenses, the New Start Arrearage Forgiveness Program, and unrecovered storm costs in excess of the Major Storm Cost Reserve, once approved.
On August 9, 2022, the Court issued a decision vacating these MISO FERC decisions and remanded to FERC to reopen the proceedings. On October 17, 2024, FERC issued an order on the remand of the MISO ROE proceedings.
On August 9, 2022, the Court issued a decision vacating these MISO ROE FERC decisions and remanded to FERC to reopen the proceedings. On October 17, 2024, FERC issued an order on the remand of the MISO ROE proceedings.
For further information, see "Regulatory Developments and Rate Matters - Connecticut" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
For further information, see "Regulatory Developments and Rate Matters - Connecticut" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
The energy efficiency charge is reconciled annually to actual costs incurred, and reviewed by the DPU, with any difference refunded to, or recovered from, customers. • Reconciling adjustment charges that recover certain DPU-approved costs, including pension and PBOP benefits, low income customer discounts, credits issued to net metering facilities installed by customers, payments to solar facilities qualified under the state solar renewable energy target program, attorney general consultant expenses, long-term renewable contracts, company-owned solar facilities, vegetation management costs, storm restoration, credits related to the Tax Cuts and Jobs Act of 2017, grid modernization costs, advanced metering infrastructure costs, electric vehicle make-ready infrastructure costs, and provisional system planning charges.
The energy efficiency charge is reconciled annually to actual costs incurred, and reviewed by the DPU, with any difference refunded to, or recovered from, customers. 5 • Reconciling adjustment charges that recover certain DPU-approved costs, including pension and PBOP benefits, low income customer discounts, credits issued to net metering facilities installed by customers, payments to solar facilities qualified under the state solar renewable energy target program, attorney general consultant expenses, long-term renewable contracts, company-owned solar facilities, vegetation management costs, storm restoration, credits related to the Tax Cuts and Jobs Act of 2017, grid modernization costs, advanced metering infrastructure costs, electric vehicle make-ready infrastructure costs, and provisional system planning charges.
It also includes a customer charge to collect the cost of providing service to a customer; such as the installation, maintenance, reading and replacement of meters and maintaining accounts and records. • A Transmission Charge Adjustment Mechanism (TCAM) that recovers the cost of transporting electricity over high-voltage lines from generating plants to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.
It also includes a 6 customer charge to collect the cost of providing service to a customer; such as the installation, maintenance, reading and replacement of meters and maintaining accounts and records. • A Transmission Charge Adjustment Mechanism (TCAM) that recovers the cost of transporting electricity over high-voltage lines from generating plants to substations, including costs allocated by ISO-NE to maintain the wholesale electric market.
The pre-established level of baseline distribution delivery service revenue requirement is also subject to adjustment in accordance with provisions of the November 2020 NSTAR Gas distribution rate case and the October 2020 EGMA rate settlement agreement. • A RDM at Yankee Gas that reconciles annual base distribution rate recovery amounts recovered from customers to the pre-established level of baseline distribution delivery service revenue requirement approved by the PURA.
The pre-established level of baseline distribution delivery service revenue requirement is also subject to adjustment in accordance with provisions of the November 2020 NSTAR Gas distribution rate case and the October 2020 EGMA rate settlement agreement. 9 • A RDM at Yankee Gas that reconciles annual base distribution rate recovery amounts recovered from customers to the pre-established level of baseline distribution delivery service revenue requirement approved by the PURA.
The SCRC rate changes annually with the option to change semi-annually, and is reconciled annually in accordance with the policies and procedures of the NHPUC, with any differences refunded to, or recovered from, customers. 6 • A Systems Benefits Charge (SBC), which funds energy efficiency programs for all customers, as well as assistance programs for residential customers within certain income guidelines.
The SCRC rate changes annually with the option to change semi-annually, and is reconciled annually in accordance with the policies and procedures of the NHPUC, with any differences refunded to, or recovered from, customers. • A Systems Benefits Charge (SBC), which funds energy efficiency programs for all customers, as well as assistance programs for residential customers within certain income guidelines.
Specifically, Yankee Gas must structure its supply portfolio to meet firm customer needs under a design day scenario (defined as the coldest day in 30 years) and under a design year scenario (defined as the average of the four coldest years in the last 30 years).
Specifically, Yankee Gas must structure its supply portfolio to meet firm customer needs under a design day scenario (defined as the coldest day in 30 years) and under a design year scenario 10 (defined as the average of the four coldest years in the last 30 years).
CL&P charges customers only the amount that it pays generators for producing electricity and does not earn a profit on the cost of electricity. CL&P's retail rates include an energy supply component and a delivery service component, which includes distribution, transmission, conservation, renewable energy programs and other public benefit charges that are assessed on all customers.
CL&P charges customers only the amount that it pays generators for producing electricity and does not earn a return on the cost of electricity. CL&P's retail rates include an energy supply component and a delivery service component, which includes distribution, transmission, conservation, renewable energy programs and other public benefit charges that are assessed on all customers.
Electric distribution companies in Massachusetts are required to obtain and resell power to retail customers through basic service for those who choose not to buy energy from a competitive energy supplier. NSTAR Electric charges customers only the amount that it pays generators for producing electricity and does not earn a profit on the cost of electricity.
Electric distribution companies in Massachusetts are required to obtain and resell power to retail customers through basic service for those who choose not to buy energy from a competitive energy supplier. NSTAR Electric charges customers only the amount that it pays generators for producing electricity and does not earn a return on the cost of electricity.
CAPITAL EXPENDITURES For information on capital expenditures and projects during 2024, as well as projected capital expenditures by business, see "Business Development and Capital Expenditures" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations . 11 FINANCING For information regarding short-term and long-term debt agreements, see "Liquidity" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Note 8, "Short-Term Debt," and Note 9, "Long-Term Debt," of the Combined Notes to Financial Statements.
CAPITAL EXPENDITURES For information on capital expenditures and projects during 2025, as well as projected capital expenditures by business, see "Business Development and Capital Expenditures" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations . 11 FINANCING For information regarding short-term and long-term debt agreements, see "Liquidity" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Note 8, "Short-Term Debt," and Note 9, "Long-Term Debt," of the Combined Notes to Financial Statements.
If CL&P does not obtain full requirements supply contracts for 100 percent of the customer load for any period, it is authorized by PURA to meet the remaining load obligations directly through the ISO-NE wholesale markets. Currently, CL&P has full requirements supply contracts in place for 100 percent of its SS load for the first half of 2025.
If CL&P does not obtain full requirements supply contracts for 100 percent of the customer load for any period, it is authorized by PURA to meet the remaining load obligations directly through the ISO-NE wholesale markets. Currently, CL&P has full requirements supply contracts in place for 100 percent of its SS load for the first half of 2026.
PSNH charges customers only the amount that it pays generators for producing electricity and does not earn a profit on the cost of electricity. PSNH's retail rates include a supply component and a delivery component, which include distribution, transmission, renewable energy programs and other public policy charges that are assessed on all customers.
PSNH charges customers only the amount that it pays generators for producing electricity and does not earn a return on the cost of electricity. PSNH's retail rates include a supply component and a delivery component, which include distribution, transmission, renewable energy programs and other public policy charges that are assessed on all customers.
The GSI is adjusted and reconciled annually, with any differences refunded to, or recovered from, customers. • A System Expansion Rate (SER) reconciliation mechanism at Yankee Gas, which compares distribution system expansion investment costs and revenues from system expansion customers with the level projected in current distribution customer rates.
The DIMP is adjusted and reconciled annually, with any differences refunded to, or recovered from, customers. • A System Expansion Rate (SER) reconciliation mechanism at Yankee Gas, which compares distribution system expansion investment costs and revenues from system expansion customers with the level projected in current distribution customer rates.
EGMA has access to approximately 1.7 Bcf of LNG and 0.1 Bcf of LPG storage, with a total vaporization capacity of 0.15 Bcf per day. Yankee Gas owns a 1.2 Bcf LNG facility, which also has the ability to liquefy and vaporize up to 0.1 Bcf per day.
EGMA has access to approximately 1.7 Bcf of LNG and 0.1 Bcf of LPG storage, with a total vaporization capacity of 0.14 Bcf per day. Yankee Gas owns a 1.2 Bcf LNG facility, which also has the ability to liquefy and vaporize up to 0.1 Bcf per day.
NSTAR Electric will not be required to pay a SQ charge for its 2024 performance as the company achieved results at or above target for all of its SQ metrics in 2024.
NSTAR Electric will not be required to pay a SQ charge for its 2025 performance as the company achieved results at or above target for all of its SQ metrics in 2025.
Eversource continually evaluates the evolving regulatory landscape concerning climate change, which could potentially lead to additional requirements, rules and regulations that could impact how we operate our businesses.
Eversource continually evaluates the evolving regulatory landscape concerning climate change and emissions reductions, which could potentially lead to additional requirements, rules and regulations that could impact how we operate our businesses.
Sources and Availability of Electric Power Supply PSNH does not own any generation assets and as approved by the NHPUC, purchases energy supply from a variety of competitive suppliers for its energy service customers through requests for proposals issued twice per year, for six-month terms, for approximately 58 percent of its residential and small C&I customers and for 15 percent of its large C&I customers.
Sources and Availability of Electric Power Supply PSNH does not own any generation assets and as approved by the NHPUC, purchases energy supply from a variety of competitive suppliers for its energy service customers through requests for proposals issued twice per year, for six-month terms, for approximately 56 percent of its residential and small C&I customers and for 18 percent of its large C&I customers.
Physical and Transitional Impacts of Climate Change: Eversource assesses the physical impacts of climate change that are presented in the form of weather or natural events or due to longer-term shifts in climate patterns, as well as transitional impacts related to a shift to a lower-carbon economy and changes to address mitigation and adaptation requirements.
Physical and Transitional Impacts of Climate Change: Eversource assesses the physical impacts of climate change that are presented in the form of weather and natural events or longer-term shifts in climate patterns, as well as transitional impacts related to a shift to a lower-carbon economy and mitigation and adaptation requirements.
Global Climate Change and Greenhouse Gas Emission Issues Eversource assesses the regulatory, physical and transitional impacts related to climate change to develop mitigation strategies including evaluating the impacts of more severe and frequent weather events, financial risks, changing customer behaviors, and opportunities to reduce emissions in our operations and for the region through clean energy and emerging technologies investments.
Global Climate Change and Greenhouse Gas Emissions Issues Eversource assesses the regulatory, physical and transitional impacts related to climate change to develop mitigation strategies to reduce emissions in our operations and for the region through clean energy and emerging technologies investments and also to develop adaptation strategies, including evaluating the impacts of more severe and frequent weather events, financial risks, and changing customer behaviors.
CL&P obtained a full requirements supply contract for its LRS load through March 2025 and intends to purchase 100 percent of full requirements for LRS for the remainder of 2025. CL&P is prepared to self-manage the LRS load if unable to obtain full requirements supply contracts for LRS.
CL&P obtained a full requirements supply contract 4 for its LRS load through March 2026 and intends to purchase 100 percent of full requirements for LRS for the remainder of 2026. CL&P is prepared to self-manage the LRS load if unable to obtain full requirements supply contracts for LRS.
Aquarion's New Hampshire base distribution rates were established in a July 2022 NHPUC-approved rate case settlement agreement, with a single step adjustment approved on January 19, 2023. Rates were effective March 1, 2023.
Aquarion’s Massachusetts base distribution rates were established in a 2018 DPU-approved rate case. Aquarion's New Hampshire base distribution rates were established in a July 2022 NHPUC-approved rate case settlement agreement, with a single step adjustment approved on January 19, 2023. Rates were effective March 1, 2023.
The pre-established level of baseline distribution delivery service revenue requirement is also subject to adjustment in accordance with provisions of the 2018 rate case settlement agreement. Distribution Rate Cases and Settlement Agreements : NSTAR Gas: NSTAR Gas distribution rates were established in an October 2020 DPU-approved rate case, with rates effective November 1, 2020.
The pre-established level of baseline distribution delivery service revenue requirement is also subject to adjustment in accordance with provisions of the November 2025 Yankee Gas distribution rate case. Distribution Rate Cases and Settlement Agreements : NSTAR Gas: NSTAR Gas distribution rates were established in an October 2020 DPU-approved rate case, with rates effective November 1, 2020.
ELECTRIC DISTRIBUTION – NEW HAMPSHIRE – PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE PSNH's distribution business consists primarily of the purchase, delivery and sale of electricity to its residential, commercial and industrial customers. As of December 31, 2024, PSNH furnished retail franchise electric service to approximately 544,000 retail customers in 206 cities and towns in New Hampshire.
ELECTRIC DISTRIBUTION – NEW HAMPSHIRE – PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE PSNH's distribution business consists primarily of the purchase, delivery and sale of electricity to its residential, commercial and industrial customers. As of December 31, 2025, PSNH furnished retail franchise electric service to approximately 549,000 retail customers in 206 cities and towns in New Hampshire.
These regulated companies provide water services to approximately 248,000 residential, commercial, industrial, municipal and fire protection and other customers, in 73 towns and cities in Connecticut, Massachusetts and New Hampshire. As of December 31, 2024, approximately 91 percent of Aquarion’s customers were based in Connecticut.
These regulated companies provide water services to approximately 249,000 residential, commercial, industrial, municipal and fire protection and other customers, in 73 towns and cities in Connecticut, Massachusetts and New Hampshire. As of December 31, 2025, approximately 91 percent of Aquarion’s customers were based in Connecticut.
Approximately 48 percent of our employees are members of the International Brotherhood of Electrical Workers, the Utility Workers Union of America or The United Steelworkers, and are covered by various collective bargaining agreements. 14 Safety.
Approximately 49 percent of our employees are members of the International Brotherhood of Electrical Workers, the Utility Workers Union of America or The United Steelworkers, and are covered by various collective bargaining agreements. Safety.
As of December 31, 2024, NSTAR Electric furnished retail franchise electric service to approximately 1.58 million customers in 159 cities and towns in eastern and western Massachusetts, including Boston, Cape Cod, Martha's Vineyard and the greater Springfield metropolitan area.
As of December 31, 2025, NSTAR Electric furnished retail franchise electric service to approximately 1.62 million customers in 159 cities and towns in eastern and western Massachusetts, including Boston, Cape Cod, Martha's Vineyard and the greater Springfield metropolitan area.
This also includes collection of ongoing operating costs. • A local distribution adjustment clause (LDAC) at NSTAR Gas and EGMA that collects all energy efficiency and related program costs, environmental costs, pension and PBOP related costs, attorney general consultant costs, credits related to the Tax Cuts and Jobs Act of 2017, gas system enhancement program (GSEP) costs, costs associated with low income customers, and costs associated with a geothermal pilot program.
This also includes collection of ongoing operating costs. • A local distribution adjustment clause (LDAC) at NSTAR Gas and EGMA that collects all energy efficiency and related program costs, environmental costs, pension and PBOP related costs, attorney general consultant costs, credits related to the Tax Cuts and Jobs Act of 2017, costs of the gas system enhancement program designed to accelerate the replacement of certain natural gas distribution facilities (GSEP), costs associated with low income customers, and costs associated with a geothermal pilot program.
The non-bypassable component of the FMCC is adjusted periodically and reconciled annually in accordance with the policies and procedures of the PURA, with any differences refunded to, or recovered from, customers. CL&P is required by regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered into in 2019.
The non-bypassable component of the FMCC is adjusted periodically and reconciled annually in accordance with the policies and procedures of the PURA, with any differences refunded to, or recovered from, customers. 3 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.
Our environmental policy includes formal procedures and a task-scheduling system in place to help ensure environmental compliance. The Governance, Environmental and Social Responsibility Committee of Eversource’s Board of Trustees also provides oversight of climate issues, environmental matters and compliance.
Our environmental policy includes formal procedures and a task-scheduling system in place to help address ongoing environmental compliance obligations. The Governance, Environmental and Social Responsibility Committee of Eversource’s Board of Trustees also provides oversight of climate issues, environmental matters and compliance.
Our natural gas businesses provide firm natural gas sales and transportation service to eligible retail customers who require a continuous natural gas supply throughout the year, such as residential customers who rely on natural gas for heating, hot water and cooking needs, as well as commercial and industrial customers who rely on natural gas for space heating, hot water, cooking and commercial and industrial applications.
Our natural gas businesses provide uninterruptible (or firm) natural gas sales and transportation service to eligible retail customers who require a continuous natural gas supply throughout the year, such as residential customers who rely on natural gas for heating, hot water and cooking needs, as well as commercial and industrial customers who rely on natural gas for space heating, hot water, cooking and commercial and industrial applications and who choose to purchase natural gas from our natural gas businesses.
As approved by the DPU, NSTAR Electric enters into supply contracts for basic service for approximately 26 percent of its residential and 14 percent of its small commercial and industrial (C&I) customers twice per year for twelve-month terms. NSTAR Electric enters into supply contracts for basic service for three percent of its large C&I customers every three months.
As approved by the DPU, NSTAR Electric enters into supply contracts for basic service for approximately 20 percent of its residential and 15 percent of its small commercial and industrial (C&I) customers twice per year for twelve-month terms. NSTAR Electric enters into supply contracts for basic service for two percent of its large C&I customers every three months.
As of December 31, 2024, CL&P furnished retail franchise electric service to approximately 1.30 million customers in 157 cities and towns in Connecticut. CL&P does not own any electric generation facilities.
As of December 31, 2025, CL&P furnished retail franchise electric service to approximately 1.32 million customers in 157 cities and towns in Connecticut. CL&P does not own any electric generation facilities.
During 2024, NSTAR Electric supplied approximately 14 percent of its overall customer load at basic service rates. The remaining 86 percent of its overall customer load was served either by municipal aggregation or competitive supply. Because customer migration is limited to energy supply service, it has no impact on NSTAR Electric’s electric distribution business or its operating income.
During 2025, NSTAR Electric supplied approximately 12 percent of its overall customer load at basic service rates. The remaining 88 percent of its overall customer load was served either by municipal aggregation or competitive supply. Because customer migration is limited to energy supply service, it has no impact on NSTAR Electric’s electric distribution business or its operating income.
A reconciliation of CAM revenues to expenses is performed annually with any difference being recovered from, or refunded to, customers with carrying charges during the following year. • A Gas System Improvement (GSI) reconciliation mechanism at Yankee Gas, which collects the costs of certain Distribution Integrity Management Program (DIMP) and core capital plant in service above and beyond the level that is recovered through the distribution charge.
A reconciliation of CAM revenues to expenses is performed annually with any difference being recovered from, or refunded to, customers with carrying charges during the following year. • A Gas System Improvement (GSI) reconciliation mechanism at Yankee Gas, which collects the cost of core capital plant in service above and beyond the level that is recovered through the distribution charge.
Those requirements will reach 6.25 and 5.5 percent in 2025, respectively. NSTAR Electric is permitted to recover any costs incurred in complying with these requirements from its customers through rates. NSTAR Electric also owns renewable solar power facilities.
Those requirements will reach 6.5 and 7.0 percent in 2026, respectively. NSTAR Electric is permitted to recover any costs incurred in complying with these requirements from its customers through rates. NSTAR Electric also owns renewable solar power facilities.
Connecticut's RPS statute requires increasing percentages of the electricity sold to retail customers to have direct ties to renewable sources. In 2024, the total RPS obligation was 37.0 percent and will ultimately reach 48.0 percent in 2030. CL&P is permitted to recover any costs incurred in complying with RPS from its customers through its generation service charge rate.
Connecticut's RPS statute requires increasing percentages of the electricity sold to retail customers to have direct ties to renewable sources. In 2025, the total RPS obligation was 39.0 percent and will be 37.0 percent in 2030. CL&P is permitted to recover any costs incurred in complying with RPS from its customers through its generation service charge rate.
Approved by the DPU in 2024, the ESMP includes incremental spending for interconnections of clean energy and resiliency initiatives and corresponding cost recovery will be established in 2025. Similarly, the Massachusetts “Future of Gas” docket (DPU 20-80) specified measures for natural gas local distribution companies to support the state’s net zero by 2050 climate goal.
Approved by the DPU in 2024, the ESMP includes incremental spending for interconnections of clean energy and resiliency initiatives, and corresponding cost recovery was established in 2025. Similarly, the Massachusetts “Future of Gas” docket (DPU 20-80) specified measures for natural gas LDCs to support the state’s net zero by 2050 climate goal.
Initiatives to reduce GHG emissions have resulted in a 30% reduction in emission from 2018 to 2023 from initiatives including improved energy efficiency at our buildings, utilizing alternative fuels and introducing more hybrid and electric vehicles into the company fleet, reducing fugitive emissions of methane by replacing leak-prone natural gas pipes, improving maintenance of SF6 gas-insulated electrical equipment, and piloting innovative SF6-free technologies thereby reducing SF6 emissions and supporting the overall interconnection of clean energy to the region thereby helping reduce the carbon intensity of line losses across the electric grid.
Initiatives to reduce GHG emissions have resulted in a nearly 30 percent reduction in both Scope 1 and 2 emissions from 2018 through 2024 from initiatives including improved energy efficiency at our buildings, utilizing alternative fuels and introducing more hybrid and electric vehicles into the company fleet, reducing emissions of methane by replacing leak-prone natural gas pipes, improving maintenance of SF6 gas-insulated electrical equipment and piloting innovative SF6-free technologies thereby reducing SF6 emissions, and supporting the overall interconnection of clean energy to the region thereby helping reduce the carbon intensity of line losses across the electric grid.
For the second half of 2025, CL&P has 50 percent of its SS load under full requirements supply contracts and intends to purchase an additional 50 percent of full requirements. None of the SS load for 2026 has been procured.
For the second half of 2026, CL&P has 60 percent of its SS load under full requirements supply contracts and intends to purchase an additional 40 percent of full requirements. None of the SS load for 2027 has been procured.
In 2024, the total RPS obligation was 24.3 percent and it will ultimately reach 25.2 percent in 2025. The costs of the RECs are recovered by PSNH through rates charged to customers.
In 2025, the total RPS obligation was 22.2 percent and it will ultimately reach 25.2 percent in 2026. The costs of the RECs are recovered by PSNH through rates charged to customers.
Massachusetts' RPS program requires electricity suppliers to meet renewable energy standards. For 2024, the RPS and Clean Energy Standard (CES) requirements were 62.3 percent, and will ultimately reach 63.1 percent in 2025. Massachusetts electric suppliers were also required to meet Alternative Energy Portfolio Standards (APS) of 6.0 percent and Clean Peak Energy Standards (CPS) of 4.0 percent in 2024.
Massachusetts' RPS program requires electricity suppliers to meet renewable energy standards. For 2025, the RPS and Clean Energy Standard (CES) requirements were 63.1 percent, and will ultimately reach 69.3 percent in 2026. Massachusetts electric suppliers were also required to meet Alternative Energy Portfolio Standards (APS) of 6.25 percent and Clean Peak Energy Standards (CPS) of 5.5 percent in 2025.
Regulatory Impacts of Climate Change: Global climate change has received focus from the federal and state governments. Some of the states in which we operate have aggressive climate goals and implementation plans. In Connecticut, legislation includes a target to achieve zero-carbon electricity by 2040.
Regulatory Impacts of Climate Change: Global climate change has received focus from the federal and state governments. Some of the states in which we operate have aggressive climate goals and implementation plans. In Connecticut, legislation includes a target to achieve zero-carbon electricity by 2040 and economy-wide net-zero greenhouse gas (GHG) emissions by 2050.
We currently have partial or full ownership responsibilities at former MGP sites that have a reserve balance of $115.9 million of the total $128.0 million as of December 31, 2024. MGP costs are recoverable through rates charged to our customers.
We currently have partial or full ownership responsibilities at former MGP sites that have a reserve balance of $140.9 million of the total $154.3 million as of December 31, 2025. MGP costs are recoverable through rates charged to our customers.
To address physical and transitional impacts related to climate change, maintain resiliency across our system, and enable potential opportunities for our business, we are pursuing the following actions: • Improving our system resiliency in response to climate change through vegetation management, pole and wire strengthening, flood proofing, and other system hardening measures; • Conducting climate modeling to assess vulnerable regions and infrastructure in order to prioritize hazard mitigation projects; • Implementing a grid modernization plan that will enhance our electric distribution infrastructure to improve resiliency and reliability and increase opportunities to facilitate integration of distributed energy resources, electric vehicle infrastructure, and electrification of building heat; • Focusing on improving the efficiency of our electric and natural gas distribution systems, preparing for increased opportunities that clean energy advancements create, and providing customers with ways to optimize their energy efficiency; • Pursuing new technologies and incentives for decarbonization of energy in the sectors that both we and our customers operate in; • Evaluating opportunities for our natural gas system and exploring alternative, less carbon-intensive technologies like networked geothermal for heating and cooling; and • Investigating emerging technologies such as energy storage and automation programs that improve reliability. 13 Physical risks from climate change may be acute due to increased severity of extreme weather events or chronic due to changes in precipitation patterns and extreme variability in weather patterns, rising mean temperatures and/or rising sea levels and shifting weather conditions, such as changes in precipitation, extreme heat, more frequent and severe storms, droughts, wildfires and floods.
To address physical and transitional impacts related to climate change, maintain resiliency across our system, and enable potential opportunities for our business, we are pursuing the following actions, while keeping the focus on customer affordability: • Improving our system resiliency in response to climate change through vegetation management, pole and wire strengthening, flood proofing, and other system hardening measures; • Implementing a grid modernization plan that will enhance our electric distribution infrastructure to improve resiliency and reliability and increase opportunities to facilitate integration of distributed energy resources, electric vehicle infrastructure, and electrification of building heat; • Focusing on improving the efficiency of our electric and natural gas distribution systems, preparing for increased opportunities that clean energy advancements create, and providing customers with ways to optimize their energy efficiency; • Pursuing new technologies and incentives for decarbonization of energy in the sectors that both we and our customers operate in; • Evaluating opportunities for our natural gas system and exploring alternative, less carbon-intensive technologies like networked geothermal for heating and cooling; and • Investigating emerging technologies such as energy storage and automation programs that improve reliability. 13 Physical risks from climate change may be acute due to increased severity of extreme weather events, such as extreme heat, severe storms, droughts, wildfires, and floods.
During 2024, CL&P supplied approximately 45 percent of its customer load at SS or LRS rates while the other 55 percent of its customer load had migrated to competitive energy suppliers. In terms of the total number of CL&P customers, this equates to 21 percent being on competitive supply, while 79 percent remain with SS or LRS.
During 2025, CL&P supplied approximately 50 percent of its customer load at SS or LRS rates while the other 50 percent of its customer load had migrated to competitive energy suppliers. In terms of the total number of CL&P customers, this equates to 19 percent being on competitive supply, while 81 percent remain with SS or LRS.
NSTAR Electric does not own any generating facilities that are used to supply customers, and purchases its energy requirements from competitive energy suppliers. NSTAR Electric owns, operates and maintains a total of 70 MW of solar power facilities on twenty-two sites in Massachusetts.
NSTAR Electric does not own any generating facilities that are used to supply customers, and purchases its energy requirements from competitive energy suppliers. NSTAR Electric owns, operates and maintains a total of 70 MW of solar power facilities on twenty-two sites in Massachusetts. NSTAR Electric sells energy from these facilities into the ISO-NE market, with proceeds credited to customers.
As of December 31, 2024, the liability recorded for our reasonably estimable and probable environmental remediation costs for known sites needing investigation and/or remediation, exclusive of recoveries from insurance or from third parties, was $128.0 million, representing 65 sites.
As of December 31, 2025, the liability recorded for our reasonably estimable and probable environmental remediation costs for known sites needing investigation and/or remediation, exclusive of recoveries from insurance or from third parties, was $154.3 million, representing 66 sites.
For customers who purchase natural gas from NSTAR Gas, EGMA and Yankee Gas, the purchased natural gas commodity cost is passed through to those customers without mark-up. NSTAR Gas, EGMA and Yankee Gas do not earn a profit on the cost of purchased gas.
For customers who purchase natural gas from NSTAR Gas, EGMA and Yankee Gas, the purchased natural gas commodity cost is passed through to those customers without mark-up. NSTAR Gas, EGMA and Yankee Gas do not earn a return on the cost of purchased gas. 8 Interruptible transportation and interruptible natural gas sales service is offered to certain customers.
NSTAR Electric sells energy from these facilities into the ISO-NE market, with proceeds credited to customers. 4 Rates NSTAR Electric is subject to regulation by the Massachusetts Department of Public Utilities (DPU), which, among other things, has jurisdiction over rates, certain dispositions of property and plant, mergers and consolidations, issuances of long-term securities, acquisition of securities, standards of service and construction and operation of facilities.
Rates NSTAR Electric is subject to regulation by the Massachusetts Department of Public Utilities (DPU), which, among other things, has jurisdiction over rates, certain dispositions of property and plant, mergers and consolidations, issuances of long-term securities, acquisition of securities, standards of service and construction and operation of facilities.
For further information, see "Regulatory Developments and Rate Matters - Connecticut" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. Aquarion’s Massachusetts base distribution rates were established in a 2018 DPU-approved rate case.
Distribution Rate Cases : Aquarion's Connecticut base distribution rates were established in a 2023 PURA-approved rate case, with updated decisions in 2024 and 2025. For further information, see "Regulatory Developments and Rate Matters - Connecticut" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
The plan called for aggressive measures focused on clean transportation, clean energy and climate investments targeted at environmental justice communities. In support of this plan, federal funding and incentive programs for clean transportation and energy have offered opportunities for Eversource to invest in projects that have the ability to reduce emissions in the region while benefiting our communities and shareholders.
In support of this plan, federal funding and incentive programs for clean transportation and energy have offered opportunities for Eversource to invest in projects that have the ability to reduce emissions in the region while benefiting our communities and shareholders.
We actively support local, state and federal emission reduction goals to address climate change and pursue climate-related opportunities that enable continued business success while serving the needs of our customers. Our investments help reduce regional emissions while improving shareholder value. Meanwhile, our energy efficiency solutions and electric vehicle infrastructure investments allow our customers to make choices that minimize climate-related impacts.
We actively support local, state and federal emissions reduction goals to address climate change and pursue climate-related opportunities that enable continued business success while serving the needs of our customers. Our investments help reduce regional emissions while improving shareholder value.
For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. 9 Yankee Gas: Yankee Gas distribution rates were established in a December 2018 PURA-approved rate case settlement agreement, with rates effective November 15, 2018.
For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. Yankee Gas: Yankee Gas distribution rates were established in a November 5, 2025 PURA-approved rate case, which included a distribution rate increase effective November 1, 2025.
This goal addresses emissions from our operations primarily in the form of line loss (emissions associated with the energy lost when power is transmitted and distributed across the electric system), methane leaks from our natural gas distribution system, fuel consumption from our facilities and vehicle fleet, and sulfur hexafluoride (SF6) leaks from electric equipment.
Our Scope 1 and 2 emissions from our operations include line loss (emissions associated with the energy lost when power is transmitted and distributed across the electric system), methane leaks from our natural gas distribution system, fuel consumption from our facilities and vehicle fleet, electricity use at our facilities, and sulfur hexafluoride (SF6) leaks from electric equipment.
As of December 31, 2024, Eversource Energy employed a total of 10,680 employees, excluding temporary employees, of which 1,599 were employed by CL&P, 2,185 were employed by NSTAR Electric, and 848 were employed by PSNH. In addition, 4,286 were employed by Eversource Service, Eversource's service company, that provides support services to all Eversource operating companies.
As of December 31, 2025, Eversource Energy employed a total of 10,731 employees, excluding temporary employees, of which 1,554 were employed by CL&P, 2,164 were employed by NSTAR Electric, and 802 were employed by PSNH. Of Eversource Energy’s employees, 4,495 were employed by Eversource Service, Eversource's service company, that provides support services to all Eversource operating companies.
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.
The transmission rates are collected from New England wholesale customers, including distribution customers of CL&P, NSTAR Electric and PSNH. 7 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.
Eversource is currently in the process of selling its Aquarion water distribution business. For further information, see "Business Development and Capital Expenditures – Pending Sale of Aquarion" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations . CL&P, NSTAR Electric and PSNH also serve New England customers through Eversource's electric transmission business.
For information regarding the sale status of Aquarion, regulatory denial and subsequent appeal, see "Business Development and Capital Expenditures – Aquarion Sale Status and Regulatory Denial" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations . CL&P, NSTAR Electric and PSNH also serve New England customers through Eversource's electric transmission business.
CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs.
CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses 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 FMCC rate.
Based on information currently available regarding projected growth in demand and estimates of availability of future supplies of pipeline natural gas, each of NSTAR Gas, EGMA and Yankee Gas believes that in order to meet the long-term firm customer requirements in a reliable manner, a combination of pipeline, storage, and non-pipeline solutions will be necessary. 10 WATER DISTRIBUTION SEGMENT Aquarion Company (Aquarion) operates five separate regulated water utilities in Connecticut (Aquarion Water Company of Connecticut, or AWC-CT, and The Torrington Water Company), Massachusetts (Aquarion Water Company of Massachusetts, or AWC-MA), and New Hampshire (Aquarion Water Company of New Hampshire, or AWC-NH, and Abenaki Water Company).
Based on information currently available regarding projected growth in demand and estimates of availability of future supplies of pipeline natural gas, each of NSTAR Gas, EGMA and Yankee Gas believes that in order to meet the long-term firm customer requirements in a reliable manner, a combination of pipeline, storage, and non-pipeline solutions will be necessary.
The annual update process also includes formula rate protocols that provide disclosure of cost inputs, an opportunity for informal discovery procedures and a challenge process, which provides transparency to stakeholders. The transmission rates are collected from New England wholesale customers, including distribution customers of CL&P, NSTAR Electric and PSNH.
The annual update process also includes formula rate protocols that provide disclosure of cost inputs, an opportunity for informal discovery procedures and a challenge process, which provides transparency to stakeholders.
Eversource’s executive leadership team promotes and supports a culture of engagement by building and leading high performing and dynamic teams, where employees’ voices and contributions can deliver superior customer service and an engaged workplace culture. Leaders are committed to growing a pipeline of exceptional talent, leveraging multiple perspectives to improve customer service, and engaging with the many communities we serve.
Our executive leadership team actively promotes a culture of engagement by building and leading dynamic, high-performing teams. Leaders are committed to growing a pipeline of exceptional talent, leveraging diverse perspectives to enhance customer service, and engaging with the communities we serve.
For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. 5 Service Quality Metrics : NSTAR Electric is subject to service quality (SQ) metrics that measure safety, reliability and customer service, and could be required to pay to customers a SQ charge of up to 2.5 percent of annual transmission and distribution revenues for failing to meet such metrics.
Service Quality Metrics : NSTAR Electric is subject to service quality (SQ) metrics that measure safety, reliability and customer service, and could be required to pay to customers a SQ charge of up to 2.5 percent of annual transmission and distribution revenues for failing to meet such metrics.
On April 30th each year, the DPU approves the GSEP rate recovery factor that goes into effect on May 1st. In October 2020, the DPU opened Docket “DPU 20-80 The Future of Gas” to examine the role of Massachusetts natural gas local distribution companies (LDCs) in helping to meet the state’s 2050 climate goals.
Massachusetts Future of Gas: In October 2020, the DPU opened Docket "DPU 20-80 The Future of Gas" to examine the role of Massachusetts natural gas local distribution companies (LDCs) in helping to meet the state’s 2050 climate goals.
The 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.
The 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. For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
A portion of the storage of natural gas supply for NSTAR Gas and EGMA during the winter heating season is provided by Hopkinton LNG Corp., an indirect, wholly-owned subsidiary of Eversource.
NSTAR Gas, EGMA and Yankee Gas can interrupt service to these customers during peak demand periods or at any other time to maintain distribution system integrity. A portion of the storage of natural gas supply for NSTAR Gas and EGMA during the winter heating season is provided by Hopkinton LNG Corp., an indirect, wholly-owned subsidiary of Eversource.
This facility is used primarily to assist Yankee Gas in meeting its supplier-of-last-resort obligations and also enables it to provide economic supply and make economic refill of natural gas, typically during periods of low demand. 8 Rates NSTAR Gas and EGMA are subject to regulation by the DPU and Yankee Gas is subject to regulation by the PURA, both of which, among other things, have jurisdiction over rates, certain dispositions of property and plant, mergers and consolidations, issuances of long-term securities, standards of service and construction and operation of facilities.
Rates NSTAR Gas and EGMA are subject to regulation by the DPU and Yankee Gas is subject to regulation by the PURA, both of which, among other things, have jurisdiction over rates, certain dispositions of property and plant, mergers and consolidations, issuances of long-term securities, standards of service and construction and operation of facilities.
Yankee Gas offers interruptible transportation and interruptible natural gas sales service to commercial and industrial customers who have the ability to switch from natural gas to an alternate fuel on short notice. NSTAR Gas, EGMA and Yankee Gas can interrupt service to these customers during peak demand periods or at any other time to maintain distribution system integrity.
NSTAR Gas and EGMA offer interruptible transportation and natural gas sales service to high volume commercial and industrial customers. Yankee Gas offers interruptible transportation and natural gas sales service to commercial and industrial customers who have the ability to switch from natural gas to an alternate fuel on short notice.
Because customer migration is limited to energy supply service, it has no impact on PSNH’s electric distribution business or its operating income. ELECTRIC TRANSMISSION SEGMENT CL&P, NSTAR Electric and PSNH each own and maintain transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England.
ELECTRIC TRANSMISSION SEGMENT CL&P, NSTAR Electric and PSNH each own and maintain transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England.
Nothing on our website, including our Sustainability Report, our Diversity, Equity and Inclusion Report, or sections thereof, shall be deemed incorporated by reference into this Annual Report. 15 INTERNET INFORMATION Our website address is www.eversource.com.
See our 2024 Sustainability Report located on our website, for more detailed information regarding our human capital programs and initiatives. Nothing on our website, including our Sustainability Report, or sections thereof, shall be deemed incorporated by reference into this Annual Report. INTERNET INFORMATION Our Investor Relations website address is investors.eversource.com.
Firm transportation service is offered to customers who purchase natural gas from sources other than NSTAR Gas, EGMA or Yankee Gas. NSTAR Gas and EGMA have the ability to offer interruptible transportation and interruptible natural gas sales service to high volume commercial and industrial customers.
Firm transportation service is offered to customers who purchase natural gas from sources other than NSTAR Gas, EGMA or Yankee Gas. All NSTAR Gas and EGMA retail customers have the ability to choose to purchase gas from third-party marketers under the Massachusetts Retail Choice program.
All NSTAR Gas and EGMA retail customers have the ability to choose to purchase gas from third party marketers under the Massachusetts Retail Choice program. In the past year in Massachusetts, Retail Choice represented only approximately one percent of the total residential load, while Retail Choice represented approximately 40 percent of the total commercial and industrial load.
In the past year in Massachusetts, Retail Choice represented only approximately one percent of the total residential load, while Retail Choice represented approximately 40 percent of the total commercial and industrial load.
These state regulations and related policies may introduce risks and opportunities to our businesses if demands for energy change. The prior administration had communicated a strong focus on addressing climate change by setting a U.S. target of reducing greenhouse gas (GHG) emissions by 50 percent by 2030, compared to 2005 levels, and achieving net-zero emissions by 2050 economy-wide.
The prior Federal Administration had communicated a strong focus on addressing climate change by setting a U.S. target of reducing GHG emissions by 50 percent by 2030, compared to 2005 levels, and achieving net-zero emissions by 2050 economy-wide. The plan called for aggressive measures focused on clean transportation, clean energy and climate investments targeted at environmental justice communities.
At the end of 2024, our estimated transmission rate base was approximately $10.8 billion, including approximately $4.4 billion at CL&P, $4.4 billion at NSTAR Electric, and $2.0 billion at PSNH. 7 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).
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).
The DPU also approved a 10-year PBR plan through November 1, 2030, which includes inflation-based adjustments to annual base distribution amounts effective annually beginning November 1, 2021. For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
The DPU also approved a 10-year PBR plan through November 1, 2030, which includes inflation-based adjustments to annual base distribution amounts effective annually beginning November 1, 2021.
Total throughput (sales and transportation) in 2024 was approximately 69.0 Bcf for NSTAR Gas, 54.8 Bcf for EGMA, and 59.5 Bcf for Yankee Gas. NSTAR Gas, EGMA and Yankee Gas generate revenues primarily through the sale and/or transportation of natural gas.
Yankee Gas distributes natural gas to approximately 256,000 customers in 85 cities and towns in Connecticut. Total throughput (sales and transportation) in 2025 was approximately 69.9 Bcf for NSTAR Gas, 56.6 Bcf for EGMA, and 61.6 Bcf for Yankee Gas. NSTAR Gas, EGMA and Yankee Gas generate revenues primarily through the sale and/or transportation of natural gas.
Additionally, we collaborate with other utility providers and industry partners across the country to better understand storm hazards and develop solutions to improve our system reliability. Eversource set a GHG reduction goal in 2019 to reduce Scope 1 and 2 emissions from our operations and reach carbon neutrality by 2030.
Additionally, we collaborate with other utility providers and industry partners across the country to better understand storm hazards and develop solutions to improve our system reliability.
For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. Connecticut: Yankee Gas' December 2018 PURA-approved rate case settlement agreement included an accelerated pipeline replacement cost recovery program.
The settlement agreement was approved by the DPU on January 16, 2026. For further information, see "Regulatory Developments and Rate Matters - Massachusetts" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
NATURAL GAS DISTRIBUTION SEGMENT NSTAR Gas distributes natural gas to approximately 315,000 customers in 59 communities in central and eastern Massachusetts. EGMA distributes natural gas to approximately 332,000 customers in 66 communities throughout Massachusetts. Yankee Gas distributes natural gas to approximately 254,000 customers in 85 cities and towns in Connecticut.
NATURAL GAS DISTRIBUTION SEGMENT Our natural gas businesses are engaged in the distribution and sale of natural gas to customers. NSTAR Gas distributes natural gas to approximately 306,000 customers in 59 communities in central and eastern Massachusetts. EGMA distributes natural gas to approximately 335,000 customers in 66 communities throughout Massachusetts.
Additionally, as our business transitions to support a more energy diverse economy, human capital needs will also change with the potential to impact our workforce. As new technologies are implemented, we will need to recruit, develop and possibly retrain employees to meet the need for new skill sets.
As new technologies are implemented, we will need to recruit, develop and possibly retrain employees to meet the need for new skill sets.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAdditionally, certain outside parties have filed four complaints against transmission-owning electric companies within ISO-NE alleging that our allowed ROEs are unjust and unreasonable. An adverse decision in any of these four complaints could adversely affect our financial position, results of operations, and cash flows.
Biggest changeFrom 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 17 condition. Additionally, outside parties have filed four complaints against transmission-owning electric companies within ISO-NE, alleging that our allowed ROEs are unjust and unreasonable.
Transitional impacts related to climate change may have an adverse effect on our business and results of operations due to costs associated with new technologies, evolving customer expectations and changing workforce needs. Initiatives to mitigate the impacts of climate change, support a transition to cleaner energy, and reduce emissions, may have a material adverse financial impact to our business.
Transitional impacts related to climate change may have an adverse effect on our business and results of operations due to costs associated with new technologies, evolving customer expectations and changing workforce needs. Initiatives to mitigate the impacts of climate change, support a transition to cleaner energy, and reduce emissions, may have a material adverse financial impact on our business.
A failure of a dam could result in personal injuries and downstream property damage for which we may be liable. The failure of a dam would also adversely affect our ability to supply water in sufficient quantities to our customers.
A failure of a dam could result in personal injuries and downstream property damage for which we may be liable. The failure of a dam would also adversely affect our ability to supply water in sufficient quantities for our customers.
Financial, Economic, and Market Risks: Limits on our access to, or increases in, the cost of capital may adversely impact our ability to execute our business plan. We use short-term debt and the long-term capital markets as a significant source of liquidity and funding for capital requirements not obtained from our operating cash flow.
Financial, Economic, and Market Risks: Limits on our access to, or increases in, the cost of capital may adversely impact our ability to execute our business plan. We use short-term debt and long-term capital markets as a significant source of liquidity and funding for capital requirements not obtained from our operating cash flow.
In any such events, our financial position, results of operations, or cash flows could be adversely affected. 21 As a holding company with no revenue-generating operations, Eversource parent's liquidity is dependent on dividends from its subsidiaries, its commercial paper program, and its ability to access the long-term debt and equity capital markets.
In any such events, our financial position, results of operations or cash flows could be adversely affected. As a holding company with no revenue-generating operations, Eversource parent's liquidity is dependent on dividends from its subsidiaries, its commercial paper program, and its ability to access the long-term debt and equity capital markets.
Severe weather induced by climate change, such as extreme and frequent ice and snowstorms, tornadoes, micro-bursts, hurricanes, floods, droughts, wildfires, excess humidity and other natural or weather-related phenomenon, may cause outages and property damage, which may require us to incur additional costs that may not be recoverable from customers.
Severe weather induced by climate change, such as extreme and frequent ice and snowstorms, tornadoes, micro-bursts, hurricanes, floods, droughts, wildfires, landslides, excess humidity and other natural or weather-related phenomenon, may cause outages and property damage, which may require us to incur additional costs that may not be recoverable from customers.
Should any of these counterparties fail to perform their obligations or terminate such arrangements, we might be forced to replace the underlying commitment at higher market prices and/or have to delay the completion of, or cancel, a capital project. Should any lenders under our credit facilities fail to perform, the level of borrowing capacity under those arrangements could decrease.
Should any of these counterparties fail to perform their obligations or terminate such arrangements, we might be forced to replace the underlying commitment at higher market prices and/or delay the completion of, or cancel, a capital project. Should any lenders under our credit facilities fail to perform, the level of borrowing capacity under those arrangements could decrease.
Our subsidiaries’ operations are subject to extensive and increasing federal, state and local environmental statutes, rules and regulations that govern, among other things, water quality (including treatment of PFAS (Per- and Polyfluoroalkyl Substances) and lead), water discharges, the management of hazardous material and solid waste, and air emissions including greenhouse gases.
Our subsidiaries’ operations are also subject to extensive and increasing federal, state and local environmental statutes, rules and regulations that govern, among other things, water quality (including treatment of PFAS (Per- and Polyfluoroalkyl Substances) and lead), water discharges, the management of hazardous material and solid waste, and air emissions including greenhouse gases.
We maintain cyber insurance to cover damages, costs related to a system disruption, potential ransom and defense costs arising from unauthorized disclosure of, or failure to protect, private information, as well as costs for notification to, or for credit monitoring of, customers, employees and other persons in the event of a breach of private information.
We maintain cyber insurance to cover damages, costs related to a system disruption, potential ransom and defense costs arising from unauthorized disclosure of, or failure to protect, private information, as well as costs for notification to, or 16 for credit monitoring of, customers, employees and other persons in the event of a breach of private information.
Outsourcing of services to third parties could expose us to substandard quality of service delivery or substandard deliverables, which may result in missed deadlines or other timeliness issues, non-compliance (including with applicable legal requirements and industry standards) or reputational harm, which could negatively impact our results of operations.
Outsourcing services to third parties could expose us to substandard quality of service delivery, which may result in missed deadlines or other timeliness issues, non-compliance (including with applicable legal requirements and industry standards) or reputational harm, which could negatively impact our results of operations.
The inability to recover a significant amount of such costs could have an adverse effect on our financial position, results of operations, and cash flows. New technology and alternative energy sources could adversely affect our operations and financial results.
The inability to recover a significant amount of such costs could have an adverse effect on our financial position, results of operations, and cash flows. 20 New technology and alternative energy sources could adversely affect our operations and financial results.
The tax deductibility of the ITCs could be challenged. If the project does not meet the qualifications under federal tax law, we may be unable to monetize the ITCs that support this investment, which could have a material adverse effect on our financial position, results of operations, and cash flows.
If the project does not meet the qualifications under federal tax law, we may be unable to monetize the ITCs that support this investment, which could have a material adverse effect on our financial position, results of operations, and cash flows.
The cost of repairing damage to our operating subsidiaries' facilities and the potential disruption of their operations due to the increase in frequency and severity of storms, natural disasters or other catastrophic events could be substantial, particularly as regulators and customers demand better and quicker response times to outages.
The cost of repairing damages to our operating subsidiaries' facilities and the potential disruption of their operations due to the increase in frequency and severity of storms, natural disasters or other catastrophic events could be substantial, particularly as regulators and customers demand better and quicker response times to outages.
Risks Related to the Environment and Catastrophic Events: The effects of climate change, including severe storms, could cause significant damage to any of our facilities requiring extensive expenditures, the recovery for which is subject to approval by regulators. Climate change creates physical and financial risks to our operations.
Risks Related to the Environment and Catastrophic Events: The effects of climate change, including severe storms, could cause significant damage to any of our facilities or assets requiring extensive expenditures, the recovery for which is subject to approval by regulators. Climate change creates physical and financial risks to our operations.
We employ system controls to prevent the dissemination of certain confidential information and periodically train employees on phishing risks.
We employ system controls to prevent the dissemination of certain confidential information and train employees on phishing risks.
We have developed strategic workforce plans to identify key functions and proactively implement plans to assure a ready and qualified workforce, but we cannot predict the impact of these plans on our ability to hire and retain key employees.
We have developed strategic workforce plans to identify key functions and proactively implement plans to ensure a ready and qualified workforce, but we cannot predict the impact of these plans on our ability to hire and retain key employees.
Cyberattacks that seek to exploit potential vulnerabilities in the utility industry and seek to disrupt electric, natural gas and water transmission and distribution systems are increasing in sophistication, magnitude and frequency. Various geo-political conflicts and acts of war around the world continue to result in increased cyberattacks against critical infrastructure.
Cyberattacks that seek to exploit potential vulnerabilities in the utility industry and seek to disrupt electric, natural gas and water transmission and distribution systems are increasing in sophistication including artificial intelligence, magnitude and frequency. Various geo-political conflicts and acts of war around the world continue to result in increased cyberattacks against critical infrastructure.
In addition, various factors, including underperformance of plan investments and changes in law or regulation, could increase the amount of contributions required to fund our pension plan in the future.
In addition, various factors, including underperformance of plan investments and changes in law or regulation, could increase the required contribution amount to fund our pension plan in the future.
The breach of certain information technology systems could adversely affect our ability to correctly record, process and report financial information. A major cyber incident could result in significant expenses to investigate and to repair system damage or security breaches and could lead to litigation, fines, other remedial action, heightened regulatory scrutiny and damage to our reputation.
The breach or failure of certain information or operational technology systems could adversely affect our ability to correctly record, process and report financial information. A major cyber event could result in significant expenses to investigate and to repair system damage or security breaches and could lead to litigation, fines, other remedial action, heightened regulatory scrutiny and damage to our reputation.
Additional large funding requirements, when combined with the financing requirements of our construction program, could impact the timing, amounts, and number of future financings and negatively affect our financial position, results of operations, and cash flows. Goodwill, investments in equity method investments, and long-lived assets if impaired and written down, could adversely affect our future operating results and total capitalization.
Additional large funding requirements, when combined with the financing requirements of our construction program, could impact the timing, amounts, and number of future financings and negatively affect our financial position, results of operations and cash flows. Goodwill and long-lived assets if impaired and written down, could adversely affect our future operating results and total capitalization.
Although we believe our water supply facilities, dams, reservoirs, and groundwater sources are structurally sound and well-maintained, significant damage to these facilities, or a significant decrease in the water supplies (reservoirs and groundwater), could adversely affect our ability to provide water to our customers until the facilities and a sufficient amount of water can be restored.
Although we believe our water supply facilities, dams, reservoirs, and groundwater sources are structurally sound and well-maintained, significant damage to these facilities, or a significant decrease in the water supplies (reservoirs and groundwater), could adversely affect our ability to provide water to our customers until the facilities and enough water can be restored.
Regulatory constraints also present challenges to permit new sources of supply in the region. In Connecticut, where the vast majority of our dams are located, impounded waterways are required to release minimum downstream flow.
Regulatory constraints also present challenges to permit new sources of supply in the region. In Connecticut, where most of our dams are located, impounded waterways are required to release minimum downstream flow.
Our water business faces an inherent strategic risk related to adequacy of supply (i.e., water scarcity). Water scarcity risk is heightened by multiple factors. We expect that climate change will cause both an increase in demand due to increasing temperatures and a potential for a decrease of available supply due to shifting rainfall and recharge patterns.
Our water business faces an inherent strategic risk related to adequacy of supply (i.e., water scarcity). We expect that climate change will cause both an increase in demand due to increasing temperatures and a potential for a decrease in available supply due to shifting rainfall and recharge patterns.
Our future obligations under the sale terms primarily include a capital expenditure overrun sharing obligation, an obligation to maintain GIP’s internal rate of return through the construction period for each project, and obligation for other future costs. Post-closing purchase price adjustment payments will be made following the commercial operation of Revolution Wind.
Our future obligations under the sale terms primarily include a capital expenditure overrun sharing obligation, an obligation to maintain GIP’s internal rate of return through the construction period for each project, and obligation for other future costs prior to commercial operation. Post-closing purchase price adjustment payments are owed following the commercial operation of Revolution Wind.
Adverse changes in facts and circumstances could increase the obligation under the sale agreement above the amount accrued and result in additional losses, which could have a material adverse effect on our financial position, results of operations, and cash flows.
Adverse changes in facts and circumstances, regulations or Presidential executive orders could increase the obligation under the sale agreement above the amount accrued and result in additional losses, which could have a material adverse effect on our financial position, results of operations, and cash flows.
The development of these projects involve numerous significant risks including federal, state and local permitting and regulatory approval processes, scheduling or permitting delays, increased costs, tax strategies and changes to federal tax laws, new legislation impacting the industry, including clean energy programs, economic events or factors, environmental, community, and customer affordability concerns, design and siting issues, difficulties in obtaining required rights of way, and competition from incumbent utilities and other entities.
The development of these projects involves numerous significant risks including federal, state and local permitting and regulatory approval processes, scheduling or permitting delays, increased costs, tax strategies and changes to federal tax laws, new legislation impacting the industry, including clean energy programs, economic events or factors, environmental, community, and customer affordability concerns, design and siting issues and difficulties in obtaining required rights of way.
Although we have recorded liabilities for known environmental obligations, these costs can be difficult to estimate due to uncertainties about the extent of contamination, remediation alternatives, the remediation levels required by state and federal agencies, and the financial ability of other potentially responsible parties.
Although we have recorded liabilities for known environmental obligations, these costs can be difficult to estimate due to uncertainties such as the extent of contamination, remediation alternatives, the remediation levels required by state and federal agencies, change in environmental regulations, and the financial ability of other potentially responsible parties.
Cybersecurity Threats and Attacks: Cyberattacks, including acts of war or terrorism, targeted directly on or indirectly affecting our systems or the systems of third parties on which we rely, could severely impair operations, negatively impact our business, lead to the disclosure of confidential information and adversely affect our reputation.
Cybersecurity Risks: Cyber events, including acts of war or terrorism, targeted directly on or indirectly affecting our systems or the systems of third parties on which we rely, could severely impair operations, negatively impact our business, lead to the disclosure of confidential information and adversely affect our reputation.
We have a significant amount of goodwill on our consolidated balance sheet, which, as of December 31, 2024 totaled $3.57 billion. The carrying value of goodwill represents the fair value of an acquired business in excess of the fair value of identifiable assets and liabilities as of the acquisition date.
We have a significant amount of goodwill on our consolidated balance sheet, which, as of December 31, 2025 totaled $4.23 billion. The carrying value of goodwill represents the fair value of an acquired business in excess of the fair value of identifiable assets and liabilities as of the acquisition date.
Also, supply constraints in New England have led to significant increases in commodity costs which may impact our ability to accomplish our strategic objectives. Further, regional clean energy goals may not be achieved if local, state, and federal policy is not in alignment with integrated planning of our infrastructure investments.
Also, supply constraints in New England have led to significant increases in commodity costs which may impact our ability to accomplish our strategic objectives. Further, regional clean energy goals may not be achieved if local, state and federal policy is not aligned with integrated planning of our infrastructure investments or if goals result in a significant increase to customer rates.
Changes in tax laws, as well as the potential tax effects of business decisions could negatively impact our business, financial position, results of operations, and cash flows. We are exposed to significant reputational risks, which make us vulnerable to increased regulatory oversight or other sanctions.
Changes in tax laws, as well as the potential tax effects of business decisions or other actions by the federal government such as Presidential executive orders could negatively impact our business, financial position, results of operations and cash flows. We are exposed to significant reputational risks, which make us vulnerable to increased regulatory oversight or other sanctions.
A successful cyberattack on the information technology systems that control our transmission, distribution, natural gas and water systems or other assets could impair or prevent us from managing these systems and facilities, operating our systems effectively, or properly managing our data, networks and programs.
A successful cyberattack or other significant cyber event affecting technology systems that control our transmission, distribution, natural gas and water systems or other assets could impair or prevent us from managing these systems and facilities, operating our systems effectively, or properly managing our data, networks and programs.
If significant difficulties in the global supply chain cycle or inflationary impacts were to reemerge, they could adversely affect our results of operations, or adversely affect our ability to work with regulators, unions, customers or employees.
Additionally, rising geo-political tensions could negatively impact the global supply chain. If significant difficulties in the global supply chain cycle or inflationary impacts were to reemerge, they could adversely affect our results of operations, or adversely affect our ability to work with regulators, unions, customers or employees.
Costs of compliance with environmental laws and regulations, including those related to climate change, may increase and have an adverse effect on our business and results of operations.
Costs of compliance with environmental laws and regulations, including those related to climate change, may increase and have an adverse effect on our business and results of operations. The costs of compliance with existing legal requirements may increase in the future.
Factors that could increase the post-closing adjustment payments owed to GIP include the ultimate cost of construction and extent of cost overruns for Revolution Wind, delays in construction, which would impact the economics associated with the purchase price adjustment, and Revolution Wind’s eligibility for federal investment tax credits (ITCs) at a lower value than assumed and included in the purchase price.
Factors that could increase the post-closing adjustment payments owed to GIP include the ultimate cost of construction and timing and extent of cost overruns for Revolution Wind, delays in construction such as from federal governmental stop work orders, damage to equipment, and weather conditions, which would also impact the economics associated with the purchase price adjustment, and Revolution Wind’s eligibility for federal investment tax credits (ITCs) at a value lower than assumed and included in the purchase price.
New information that becomes available or future developments that arise as construction progresses and as cost estimates are reviewed and revised could result in increased costs of the project that would ultimately be owed to GIP.
New information that becomes available or future developments that arise as the construction of Revolution Wind progresses could result in increased costs of the project that would ultimately be owed to GIP.
Physical risks from climate change may include an increase in sea levels and changes in weather conditions, such as changes in precipitation, extreme heat and weather events, including the effects of significantly stronger wind-related events. Customers’ energy and water needs vary with weather conditions, primarily related to temperature and humidity.
Physical risks from climate change may include an increase in sea levels and changes in weather conditions, such as changes in precipitation, extreme heat and weather events, including the effects of significantly stronger wind-related events.
The ultimate outcome and timing of regulatory rate proceedings or challenges to certain provisions in our distribution tariffs could have a significant effect on our ability to recover costs timely or at all or earn an adequate return. Adverse decisions in our proceedings could adversely affect our credit ratings, financial position, results of operations, and cash flows.
The ultimate outcome and timing of regulatory rate proceedings or challenges to certain provisions in our distribution tariffs could have a significant effect on our ability to recover costs timely, or at all, or earn an adequate return.
Any losses or liabilities incurred due to a failure of one of our dams may not be recoverable in rates and may have a material adverse effect on our financial position, results of operations, and cash flows.
Any losses or liabilities incurred due to a failure of one of our dams may not be recoverable in rates and may have a material adverse effect on our financial position, results of operations, and cash flows. We maintain liability insurance, but it may be insufficient in limits and coverage exclusions to cover all losses.
We also implement new information technology systems from time to time, which may disrupt operations. Any failure of our transmission and distribution systems to operate as planned may result in increased capital costs, reduced earnings or unplanned increases in operations and maintenance costs.
Any failure of our transmission and distribution systems to operate as planned may result in increased capital costs, reduced earnings or unplanned increases in operations and maintenance costs.
This may lead to uncertainty as to the ultimate result of those proceedings. Established rates are also subject to subsequent prudency reviews by state regulators, whereby various portions of rates could be adjusted, subject to refund or disallowed, including cost recovery mechanisms.
Established rates are subject to subsequent prudency reviews by state regulators, whereby various portions of rates could be adjusted, subject to refund or disallowed, including cost recovery mechanisms.
Our contractual arrangements with these contractors typically include performance standards, progress payments, insurance requirements and security for performance. The global supply chain of goods and services generally has stabilized; however, certain specialized equipment has long lead times and inflated prices. 20 Additionally, rising geo-political tensions could negatively impact the global supply chain.
Our contractual arrangements with these contractors typically include performance standards, progress payments, insurance requirements and security for performance. The global supply chain of goods and services generally has stabilized; however, certain specialized equipment has long lead times and inflated prices, as well as competition from within and outside the utility industry.
We have instituted safeguards to protect our information technology systems and assets. We deploy substantial technologies to system and application security, encryption and other measures to protect our computer systems and infrastructure from unauthorized access or misuse.
We have instituted safeguards to protect our technology systems and assets; however, we cannot guarantee that our security efforts will prevent or deter cyberattacks. We deploy substantial technologies to system and application security, encryption and other measures to protect our computer systems and infrastructure from unauthorized access or misuse and to detect and respond to cyber events.
While we have implemented measures designed to prevent network attacks and mitigate their effects should they occur, these measures may not be effective due to the continually evolving nature of efforts to access confidential information. 16 Regulatory, Legislative and Compliance Risks: The actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity.
While we have implemented measures designed to prevent network attacks and mitigate their effects should they occur, these measures may not be effective due to the continually evolving nature of efforts to access confidential information.
Retaining key employees and maintaining the ability to attract new employees are important to both our operational and financial performance. We cannot guarantee that any member of our management or any key employee at the Eversource parent or subsidiary level will continue to serve in any capacity for any particular period of time.
We cannot guarantee that any member of our management or any key employee at the Eversource parent or subsidiary level will continue to serve in any capacity for any period.
We test our goodwill balances for impairment on an annual basis or whenever events occur, or circumstances change that would indicate a potential for impairment. A determination that goodwill is deemed to be impaired would result in a non-cash charge that could materially adversely affect our financial position, results of operations, and total capitalization.
A determination that goodwill is deemed to be impaired would result in a non-cash charge that could materially adversely affect our financial position, results of operations, and total capitalization. 21 We assess our long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the investment may not be recoverable.
Adequacy of water supplies and contamination of our water supplies, the failure of dams on reservoirs providing water to our customers, or requirements to repair, upgrade or dismantle any of these dams, may disrupt our ability to distribute water to our customers and result in substantial additional costs, which could adversely affect our financial position, results of operations, and cash flows.
Certain environmental activist groups, investors and governmental entities continue to oppose natural gas delivery and infrastructure investments because of perceived environmental impacts associated with the natural gas supply chain and end use. 19 Adequacy of water supplies and contamination of our water supplies, the failure of dams on reservoirs providing water to our customers, or requirements to repair, upgrade or dismantle any of these dams, may disrupt our ability to distribute water to our customers and result in substantial additional costs, which could adversely affect our financial position, results of operations, and cash flows.
We maintain cyber insurance to cover damages, potential ransom and defense costs related to breaches of networks or operational technology, but it may be insufficient in limits and coverage exclusions to cover all losses.
We maintain cyber insurance to cover damages, potential ransom and defense costs related to breaches of network or operational technology, but it may be insufficient in limits and coverage exclusions to cover all losses. For further information, see Item 1C, Cybersecurity included in this Annual Report on Form 10-K.
Implementation of FERC's goals, including within our service territories, may expose us to competition for construction of transmission projects, additional regulatory considerations, and potential delay with respect to future transmission projects, which may adversely affect our results of operations and lower rate base growth.
Implementation of FERC's goals may expose us to competition for construction of transmission projects, which could result in being exposed to cost caps or a reduced ROE in order to win a project bid, additional regulatory considerations and potential delay with respect to future transmission projects, which may adversely affect our results of operations and lower rate base growth.
If the project does not meet the qualifications under federal tax law for the full value of the ITC or there are changes to tax law, it could have a material adverse effect on our financial position, results of operations, and cash flows. 18 Additionally, we hold a tax equity investment in South Fork Wind that is expected to result in cash flow benefits from ITCs at a 30 percent level.
If the project does not meet the qualifications under federal tax law for the full value of the ITC or there are changes to tax law, it could have a material adverse effect on our financial position, results of operations, and cash flows.
Our water supplies, including water provided to our customers, are also subject to possible contamination from naturally occurring compounds and elements or non-organic substances, including PFAS. Our water systems include impounding dams and reservoirs and groundwater sources (e.g. wells and aquifers) of various sizes.
Our water supplies, including water provided to our customers, are also subject to possible contamination from naturally occurring compounds and elements or non-organic substances, including PFAS.
For residential customers, heating and cooling represent their largest energy use. For water customers, conservation measures imposed by the communities we serve could impact water usage. To the extent weather conditions are affected by climate change, customers’ energy and water usage could increase or decrease depending on the duration and magnitude of the changes.
To the extent weather conditions are affected by climate change, customers’ energy and water usage could increase or decrease depending on the duration and magnitude of the changes.
Our electric, natural gas and water companies are required to engage in regulatory approval proceedings as a part of the process of establishing the terms and rates for their respective services.
Rate Regulation, Cost Recovery and Affordability Our electric, natural gas, and water utility companies are subject to regulation by federal and state agencies and each is required to engage in regulatory approval proceedings as a part of the process of establishing the terms and rates for service.
An increase in such costs, unless promptly recovered, could have an adverse impact on our business and our financial position, results of operations, and cash flows. In each of the states that we operate, there are requirements for purchases of renewable energy credits from the generation of renewable energy.
An increase in such costs, unless promptly recovered, could have an adverse impact on our business and our financial position, results of operations and cash flows.
Our future pension obligations, costs and liabilities are highly dependent on a variety of factors, many of which are beyond our control. These factors include estimated investment returns, interest rates, discount rates, health care cost trends, benefit changes, salary increases and the demographics of plan participants. If our assumptions prove to be inaccurate, our future costs could increase significantly.
Our future pension obligations, costs and liabilities are highly dependent on a variety of factors, many of which are beyond our control. If our assumptions prove to be inaccurate, our future costs could increase significantly.
Many of our transmission projects are expected to alleviate identified reliability issues and reduce customers' costs. However, if the in-service date for one or more of these projects is delayed due to economic events or factors, or regulatory or other delays, including permitting and siting, the risk of failures in the electric transmission system may increase.
If the in-service date for one or more of our transmission projects is delayed due to economic events or factors, or regulatory or other delays, including permitting and siting, the risk of failures in the electric transmission system may increase. We also implement new information technology systems from time to time, which may disrupt operations.
We maintain liability insurance, but it may be insufficient in limits and coverage exclusions to cover all losses. 19 Physical attacks, including acts of war or terrorism, both threatened and actual, could adversely affect our ability to operate our systems and could adversely affect our financial results and liquidity.
Physical attacks, including acts of war or terrorism, both threatened and actual, could adversely affect our ability to operate our systems and could adversely affect our financial results and liquidity.
Offshore Wind Contingent Liability and Tax Risk: Variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects no longer owned by Eversource and the inability to monetize investment tax credits and investment tax credit adders could have an adverse impact on our financial position, results of operations, and cash flows.
Offshore Wind Contingent Liability and Tax Risk: Variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects no longer owned by Eversource and the inability to monetize investment tax credits could have an adverse impact on our financial position, results of operations, and cash flows. 18 Following the sale of our 50 percent ownership share in the South Fork Wind and Revolution Wind projects, we have continuing financial exposure as it relates to the purchase price post-closing adjustment payments under the terms of the sale agreement with Global Infrastructure Partners (GIP) for these projects.
As the requirement for credits increase and outpace the renewable energy coming online, we may be required to pay higher prices and make alternative compliance payments to the states. Unless renewable energy availability is increased to meet these credit requirements, we will face the risk of increasing costs.
In each of the states that we operate, there are requirements for purchases of renewable energy credits from the generation of renewable energy. As the requirement for credits increases and outpace the renewable energy coming online, we may be required to pay higher prices and make alternative compliance payments to the states.
For further information, see Item 1, Business – Other Regulatory and Environmental Matters , included in this Annual Report on Form 10-K.
Unless renewable energy availability is increased to meet these credit requirements, we will face the risk of increasing costs. For further information, see Item 1, Business – Other Regulatory and Environmental Matters , included in this Annual Report on Form 10-K.
Our counterparties may not meet their obligations to us or may elect to exercise their termination rights, which could adversely affect our earnings.
To the extent the value of the investment becomes impaired, the impairment charge could have a material adverse effect on our financial position and results of operations. Our counterparties may not meet their obligations to us or may elect to exercise their termination rights, which could adversely affect our earnings.
As a result, interest rates on future credit facilities and debt offerings could be higher than current levels, causing our financing costs to increase accordingly, which could adversely impact our financial position, results of operations, and cash flows. S&P recently downgraded the credit ratings of Eversource and its regulated utilities as a result of the challenging regulatory environment in Connecticut.
If access to these sources of liquidity becomes constrained, our ability to implement our business strategy could be adversely affected. Interest rate increases on future credit facilities and debt offerings could be higher than current levels, causing our financing costs to increase accordingly, which could adversely impact our financial position, results of operations and cash flows.
FERC's policy has encouraged competition for transmission projects, even within existing service territories of electric companies, as it looks to expand the transmission system to accommodate state and federal policy goals to utilize more renewable energy resources as well as to enhance reliability and resilience for extreme weather events.
An adverse decision in any of these four complaints could adversely affect our financial position, results of operations and cash flows. Further, FERC's policy has encouraged competition for transmission projects as it looks to expand the transmission system to accommodate state and federal policy as well as to enhance reliability and resilience for extreme weather events while lowering costs.
S&P recently downgraded the credit ratings of Eversource and its regulated utilities as a result of the challenging regulatory environment in Connecticut. The FERC has jurisdiction over our transmission costs recovery and our allowed ROEs. If FERC changes its methodology on developing ROEs, there could be a negative impact on our results of operations and cash flows.
Federal-Level Risks The FERC has jurisdiction over our transmission cost recovery and our allowed ROEs on transmission investments. If FERC changes its methodology on developing ROEs or eliminates certain transmission incentives, it could negatively impact our financial position, results of operations and cash flows.
The direct and indirect effects of negative publicity, and the demands of responding to and addressing it, may have a material adverse effect on our financial position, results of operations, and cash flows.
Future legislative or regulatory changes are unpredictable, and we cannot ensure we are able to respond adequately. The direct and indirect effects of negative publicity may materially affect our financial position, results of operations, and cash flows.
These regulatory decisions currently, and may in the future, require us to cancel, reduce, or delay planned development activities or other planned capital expenditures or investments or otherwise incur costs that we may not be able to recover through rates.
Our regulated companies are entitled to charge rates that are sufficient to recover prudently incurred costs and a reasonable return on investment on invested capital. Regulatory decisions may require us to cancel, delay, or reduce planned investments or incur costs we cannot recover.
These proceedings typically involve multiple parties, including governmental bodies and officials, consumer advocacy groups, and various consumers of energy, who have differing concerns. Any change in rates, including changes in allowed rate of return, are subject to regulatory approval proceedings that can be contentious, lengthy, and subject to appeal.
Rates are set in comprehensive base rate proceedings based on an analysis of invested capital, expenses and other factors, subject to periodic review and adjustments. Regulatory proceedings typically involve multiple parties who have differing concerns and can challenge our current or future rates, and these proceedings can be contentious, lengthy, and subject to appeal.
Significant cost increases, as well as any failure to meet customer energy requirements, could negatively impact the satisfaction of our customers and our customers’ ability to pay their utility bills, which could have an adverse impact on our business, reputation, financial position, results of operations, and cash flows.
High customer bills or failure to meet energy needs could reduce customer satisfaction adversely affecting our business, reputation, financial position, results of operations, and cash flows. Addressing adverse publicity, regulatory actions or legal proceedings is costly and time-consuming and can negatively impact employee morale and relationships with regulators, customers and counterparties.
Unfavorable regulatory outcomes can include more stringent laws and regulations governing our operations, such as reliability and customer service quality standards or vegetation management requirements, as well as fines, penalties or other sanctions or requirements. Further, we rely upon purchased power and purchased natural gas supply from third parties to meet customers’ energy requirements.
Negative publicity can harm our reputation, influence legislative and regulatory bodies, and result in unfavorable outcomes, such as stricter operational standards, vegetation management requirements, fines, penalties or other sanctions. We also depend on third-party suppliers for power and natural gas.
Removed
Any such cyberattacks could result in loss of service to customers and a significant decrease in revenues, which could have a material adverse impact on our financial position, results of operations, and cash flows. For further information, see Item 1C, Cybersecurity included in this Annual Report on Form 10-K.
Added
In addition to intentional attacks, we also face risks from other cybersecurity events, such as software defects, misconfigurations, system integration failures and problematic third-party software or firmware updates that can cause widespread outages or disruptions even in the absence of a deliberate attack.
Removed
The rates that our electric, natural gas and water companies charge their customers are determined by their state regulatory commissions. These commissions also regulate the companies' accounting, operations, the issuance of certain securities and certain other matters.
Added
We are increasingly integrating artificial intelligence (AI) into our operations, and while these technologies offer operational benefits, they also introduce significant risks that could adversely impact our business and results of operations. We deploy AI tools and models in areas such as weather forecasting, grid planning, asset management, customer service and internal support functions.
Removed
The FERC regulates the transmission of electric energy, the sale of electric energy at wholesale, accounting, issuance of certain securities and certain other matters, including reliability standards through the NERC. The regulatory process may be adversely affected by the political, regulatory and economic environment in the states in which we operate.
Added
This deployment is overseen by an internal governance and oversight committee, which has established policies and procedures and reviews and approves the use of AI throughout the organization.
Removed
Under state and federal law, our electric, natural gas and water companies are entitled to charge rates that are sufficient to allow them an opportunity to recover their prudently incurred operating and capital costs and a reasonable rate of return on invested capital, to attract needed capital and maintain their financial integrity, while also protecting relevant public interests.
Added
AI systems may produce inaccurate, biased or otherwise unreliable forecasts or recommendations due to flawed algorithms, limited training data or unforeseen conditions which could result in service disruptions, regulatory penalties and reputational harm. Evolving AI regulations may impose new compliance and reporting obligations or restrict usage and stakeholders may raise concerns about transparency, bias, and accountability.
Removed
Each of these companies prepares and submits periodic rate filings with their respective state regulatory commissions for review and approval, which allows for various entities to challenge our current or future rates, structures or mechanisms and could alter or limit the rates we are allowed to charge our customers.
Added
Despite implementing a governance framework and policies and controls in place related to AI use, including human oversight of critical decisions and outputs, these risks could negatively affect operations, expose us to litigation or regulatory penalties or fines, increase costs and impair our ability to meet customer expectations, which could have a material adverse impact on our financial position, results of operations, and cash flows.
Removed
The federal, state and local political and economic environment currently has, and may in the future have, an adverse effect on regulatory decisions with negative consequences for us.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeTo assess, identify and manage material risks from cybersecurity threats and to prevent, detect, mitigate and remediate a cyber security incident, the following key processes and programs have been implemented and are performed by the Company’s Cyber Security Group, which is overseen by the Chief Information Security Officer: • Implementation of security solutions and standards based on industry best practices to prevent unauthorized access.
Biggest changeThe Company created a Cyber Governance Committee, which includes the Chief Information Security Officer, Chief Information Technology Officer, Chief Accounting Officer, members of the executive management team, and other assurance functions such as Corporate Compliance, Enterprise Risk Management, and Internal Audit. 22 To assess, identify and manage material risks from cybersecurity threats and to prevent, detect, mitigate and remediate a cyber security incident, the following key processes and programs have been implemented and are performed by the Company’s Cyber Security Group, which is overseen by the Chief Information Security Officer: • Implementation of security solutions and standards based on industry best practices to prevent unauthorized access.
The Company regularly reviews and updates its cyber and system security programs, and the Finance Committee continues to enhance its robust oversight activities, including meetings with financial, information technology, legal and accounting management, other members of the Board, representatives of the Company’s independent registered public accounting firm, and outside advisors and experts in cyber security risks, at which cyber and system security programs and issues that might affect the Company’s financial statements and operational systems are discussed.
The Company regularly reviews and updates its cyber and system security programs, and the Finance and Risk Management Committee continues to enhance its robust oversight activities, including meetings with financial, information technology, legal and accounting management, other members of the Board, representatives of the Company’s independent registered public accounting firm, and outside advisors and experts in cyber security risks, at which cyber and system security programs and issues that might affect the Company’s financial statements and operational systems are discussed.
Results of phishing testing are benchmarked against other companies both within and outside the utility industry. 22 Specific to third parties, Eversource has implemented formal screening processes for any applicable vendors by the Company’s Cyber Security Group as part of the Procurement process. The vendors are risk ranked based on the type of work being performed.
Results of phishing testing are benchmarked against other companies both within and outside the utility industry. Specific to third parties, Eversource has implemented formal screening processes for any applicable vendors by the Company’s Cyber Security Group as part of the Procurement process. The vendors are risk ranked based on the type of work being performed.
The Finance Committee of the Board of Trustees is responsible for oversight of the Company’s enterprise-wide risks, including risks associated with cyber and physical security, and the Company’s programs and practices to monitor and mitigate these risks. Management prepares comprehensive cyber security reports that are discussed at each meeting of the Finance Committee.
The Finance and Risk Management Committee of the Board of Trustees is responsible for oversight of the Company’s enterprise-wide risks, including risks associated with cyber and physical security, and the Company’s programs and practices to monitor and mitigate these risks. Management prepares comprehensive cyber security reports that are discussed at each meeting of the Finance and Risk Management Committee.
As of December 31, 2024, there were no cyber incidents that have materially affected or are reasonably likely to materially affect the Company, its business strategy, results of operations, or financial condition.
As of December 31, 2025, there were no cyber incidents that have materially affected or are reasonably likely to materially affect the Company, its business strategy, results of operations, or financial condition.
In addition, third-party experts of cyber security risks provide periodic assessments to the utility industry and the Company in particular to the Finance Committee.
In addition, third-party experts of cyber security risks provide periodic assessments to the utility industry and the Company in particular to the Finance and Risk Management Committee.
Item 1C. Cybersecurity The Company’s policies, practices and technologies allow it to protect its information systems and operational assets from threats. The Board of Trustees and its Finance and Audit Committees continue to provide substantial and focused attention to cyber and system security.
Item 1C. Cybersecurity The Company’s policies, practices and technologies allow it to protect its information systems and operational assets from threats. The Board of Trustees and its Finance and Risk Management Committee and Audit Committee continue to provide substantial and focused attention to cyber and system security.
The Company has a robust Enterprise Risk Management Program that has identified cyber security as a top enterprise risk. The managing and monitoring of risks are the responsibility of the Company’s Risk Committee, which meets quarterly and is chaired by the Chief Financial Officer. Members include key leaders of the Company, including the Chief Information Officer.
The Company has a robust Enterprise Risk Management Program that has identified cyber security as a top enterprise risk. The managing and monitoring of risks are the responsibility of the Company’s Risk Committee, which meets quarterly and is chaired by the Chief Financial Officer.
The Chief Information Security Officer position requires at least 15 years of relevant information security experience and relevant security certifications. The Chief Information Security Officer reports directly to the Chief Information Officer and provides regular updates to the executive management team. Our Chief Information Security Officer has over 20 years of relevant experience.
The Chief Information Security Officer reports directly to the Chief Information Officer and provides regular updates to the executive management team. Our Chief Information Security Officer has over 20 years of relevant experience.
The Company is committed to continuous monitoring and assessment of cyber security controls. The Chief Information Security Officer is responsible for developing, implementing, and enforcing our cyber security program and information security policies to protect the Company’s information systems and operational assets.
The Chief Information Security Officer is responsible for developing, implementing, and enforcing our cyber security program and information security policies to protect the Company’s information systems and operational assets. The Chief Information Security Officer position requires at least 15 years of relevant information security experience and relevant security certifications.
Removed
The Company created a Cyber Governance Committee, which includes the Chief Information Security Officer, Chief Information Technology Officer, Chief Accounting Officer, members of the executive management team, and other assurance functions such as Corporate Compliance, Enterprise Risk Management, and Internal Audit.
Added
Members include key leaders of the Company, including the Presidents of each operating business unit, the Chief Information Officer, Chief Customer Officer, Chief Accounting Officer and Chief Compliance Officer. The Company is committed to continuous monitoring and assessment of cyber security controls.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeYankee Gas also owns a liquefaction and vaporization plant and above ground storage tank with a storage capacity equivalent of 1.2 Bcf of natural gas in Waterbury, Connecticut. 23 Natural Gas Transmission System As of December 31, 2024, NSTAR Gas owned 0.65 miles of intrastate transmission natural gas pipeline.
Biggest changeAs of December 31, 2025, Yankee Gas owned 28 active gate stations, 189 district regulator stations, and approximately 3,526 miles of natural gas main pipeline. Yankee Gas also owns a liquefaction and vaporization plant and above ground storage tank with a storage capacity equivalent of 1.2 Bcf of natural gas in Waterbury, Connecticut.
The locations in public ways for natural gas distribution pipelines are obtained from municipal and other state authorities who, in granting these locations, act as agents for the state. In some cases, the actions of these authorities are subject to appeal to the DPU.
The locations in public ways for natural gas distribution pipelines are obtained from municipal and other state authorities who, in granting these locations, act as agents for the state. In some cases, the actions of these authorities are subject to appeal to the DPU.
This consent must be filed with the DPU and the municipality so affected. The franchises of NSTAR Electric include the power of eminent domain, obtained through application to the DPU. Massachusetts restructuring legislation defines service territories as those territories actually served on July 1, 1997 and following municipal boundaries to the extent possible.
This consent must be filed with the DPU and the municipality so affected. The franchises of NSTAR Electric include the power of eminent domain, obtained through application to the DPU. 24 Massachusetts restructuring legislation defines service territories as those territories actually served on July 1, 1997 and following municipal boundaries to the extent possible.
Aquarion Water Company of Connecticut and The Torrington Water Company AWC-CT and The Torrington Water Company derive their rights and franchises to operate from special acts of the Connecticut General Assembly and subject to certain approvals, permits and consents of public authority and others prescribed by statute and by its charter, they have, with minor exceptions, solid franchises free from burdensome restrictions and unlimited as to time, and are authorized to sell potable water in the towns (or parts thereof) in which water is now being supplied by AWC-CT and The Torrington Water Company.
Aquarion Water Company of Connecticut and The Torrington Water Company AWC-CT and The Torrington Water Company derive their rights and franchises to operate from special acts of the Connecticut General Assembly and subject to certain approvals, permits and consents of public authority and others prescribed by statute and by its charter, they have, with minor exceptions, valid franchises free from burdensome restrictions and unlimited as to time, and are authorized to sell potable water in the towns (or parts thereof) in which water is now being supplied by AWC-CT and The Torrington Water Company.
As of December 31, 2024, Aquarion owned and operated sources of water supply with a combined yield of approximately 135 million gallons per day; 3,817 miles of transmission and distribution mains; 10 surface water treatment plants; 37 dams; and 119 wellfields.
As of December 31, 2025, Aquarion owned and operated sources of water supply with a combined yield of approximately 135 million gallons per day; 3,861 miles of transmission and distribution mains; 10 surface water treatment plants; 37 dams; and 119 wellfields.
As of December 31, 2024, EGMA owned 15 active gate stations, 178 district regulator stations, and approximately 5,021 miles of natural gas main pipeline. Hopkinton, another subsidiary of Eversource, owns liquefaction and vaporization plants and above ground storage tanks at four locations throughout Massachusetts with an aggregate storage capacity equivalent to 1.8 Bcf of natural gas.
As of December 31, 2025, EGMA owned 15 active gate stations, 168 district regulator stations, and approximately 5,040 miles of natural gas main pipeline. Hopkinton, another subsidiary of Eversource, owns liquefaction and vaporization plants and above ground storage tanks at four locations throughout Massachusetts with an aggregate storage capacity equivalent to 1.8 Bcf of natural gas.
Natural Gas Distribution System As of December 31, 2024, NSTAR Gas owned 21 active gate stations, 165 district regulator stations, and approximately 3,337 miles of natural gas main pipeline. Hopkinton, another subsidiary of Eversource, owns a satellite vaporization plant and above ground storage tanks in Acushnet, Massachusetts (0.5 Bcf of natural gas).
Natural Gas Distribution System As of December 31, 2025, NSTAR Gas owned 21 active gate stations, 162 district regulator stations, and approximately 3,332 miles of natural gas main pipeline. Hopkinton, another subsidiary of Eversource, owns a satellite vaporization plant and above ground storage tanks in Acushnet, Massachusetts (0.5 Bcf of natural gas).
This consent must be filed with the DPU and the municipality so affected. 24 EGMA Through its charter, which is unlimited in time, EGMA has the right to engage in the business of delivering and selling natural gas within its respective service territory, and has the power incidental thereto and is entitled to all the rights and privileges of and subject to the duties imposed upon natural gas companies under Massachusetts laws.
EGMA Through its charter, which is unlimited in time, EGMA has the right to engage in the business of delivering and selling natural gas within its respective service territory, and has the power incidental thereto and is entitled to all the rights and privileges of and subject to the duties imposed upon natural gas companies under Massachusetts laws.
PSNH's status as a public utility gives it the ability to petition the NHPUC for the right to exercise eminent domain for distribution services and for transmission eligible for regional cost allocation. PSNH is also subject to certain regulatory oversight by the Maine Public Utilities Commission and the Vermont Public Utility Commission.
PSNH's status as a public utility gives it the ability to petition the NHPUC for the right to exercise eminent domain for distribution services and for transmission eligible for regional cost allocation.
Aquarion Water Company of New Hampshire and Abenaki Water Company The NHPUC, pursuant to statutory law, has issued orders granting and affirming AWC-NH’s and Abenaki Water Company’s exclusive franchises to own, operate, and manage plant and equipment and any part of the same, for the conveyance of water for the public located within its franchise territory.
Certain of the towns within our service area have the right, at any time, to purchase the corporate property and all rights and privileges of AWC-MA according to pricing formulas and procedures specifically described in AWC-MA's respective charters and in compliance with Massachusetts law. 25 Aquarion Water Company of New Hampshire and Abenaki Water Company The NHPUC, pursuant to statutory law, has issued orders granting and affirming AWC-NH’s and Abenaki Water Company’s exclusive franchises to own, operate, and manage plant and equipment and any part of the same, for the conveyance of water for the public located within its franchise territory.
Properties Transmission and Distribution System As of December 31, 2024, Eversource and our electric operating subsidiaries owned the following: Electric Distribution Electric Transmission Eversource Number of substations owned 455 76 Transformer capacity (in kVa) 48,055,400 16,223,000 Overhead lines (in circuit miles) 40,595 3,998 Underground lines (in circuit miles) 19,001 459 Capacity range of overhead transmission lines (in kV) N/A 69 to 345 Capacity range of underground transmission lines (in kV) N/A 69 to 345 CL&P NSTAR Electric PSNH Distribution Transmission Distribution Transmission Distribution Transmission Number of substations owned 157 21 174 30 124 25 Transformer capacity (in kVa) 21,984,000 3,184,000 21,477,400 8,688,000 4,594,000 4,351,000 Overhead lines (in circuit miles) 16,744 1,674 11,506 1,272 12,345 1,052 Underground lines (in circuit miles) 6,932 157 9,940 299 2,129 3 Capacity range of overhead transmission lines (in kV) N/A 69 to 345 N/A 69 to 345 N/A 115 to 345 Capacity range of underground transmission lines (in kV) N/A 69 to 345 N/A 115 to 345 N/A 115 Eversource CL&P NSTAR Electric PSNH Underground and overhead line transformers in service 650,632 294,777 183,831 172,024 Aggregate capacity (in kVa) 39,547,666 16,931,978 15,165,820 7,449,868 Electric Generating Plants As of December 31, 2024, NSTAR Electric owned the following solar power facilities: Type of Plant Number of Sites Year Installed Capacity (kilowatts, dc) Solar Fixed Tilt, Photovoltaic 22 2010 - 2019 70,000 CL&P and PSNH do not own any electric generating plants.
Properties Transmission and Distribution System As of December 31, 2025, Eversource and our electric operating subsidiaries owned the following: Electric Distribution Electric Transmission Eversource Number of substations owned 458 77 Transformer capacity (in kVa) 48,310,570 16,312,600 Overhead lines (in circuit miles) 40,650 4,007 Underground lines (in circuit miles) 19,220 460 Capacity range of overhead transmission lines (in kV) N/A 69 to 345 Capacity range of underground transmission lines (in kV) N/A 69 to 345 CL&P NSTAR Electric PSNH Distribution Transmission Distribution Transmission Distribution Transmission Number of substations owned 157 22 175 30 126 25 Transformer capacity (in kVa) 21,973,500 3,184,000 21,607,370 8,688,000 4,729,700 4,440,600 Overhead lines (in circuit miles) 16,749 1,684 11,515 1,272 12,386 1,051 Underground lines (in circuit miles) 6,989 158 10,052 299 2,179 3 Capacity range of overhead transmission lines (in kV) N/A 69 to 345 N/A 69 to 345 N/A 115 to 345 Capacity range of underground transmission lines (in kV) N/A 69 to 345 N/A 115 to 345 N/A 115 Eversource CL&P NSTAR Electric PSNH Underground and overhead line transformers in service 654,639 295,913 185,043 173,683 Aggregate capacity (in kVa) 40,274,114 17,201,091 15,427,848 7,645,175 23 Electric Generating Plants As of December 31, 2025, NSTAR Electric owned the following solar power facilities: Type of Plant Number of Sites Year Installed Capacity (kilowatts, dc) Solar Fixed Tilt, Photovoltaic 22 2010 - 2019 70,000 CL&P and PSNH do not own any electric generating plants.
Removed
As of December 31, 2024, Yankee Gas owned 28 active gate stations, 197 district regulator stations, and approximately 3,530 miles of natural gas main pipeline.
Added
Natural Gas Transmission System As of December 31, 2025, NSTAR Gas owned 0.65 miles of intrastate transmission natural gas pipeline.
Removed
Certain of the towns within our service area have the right, at any time, to purchase the corporate property and all rights and privileges of AWC-MA according to pricing formulas and procedures specifically described in AWC-MA's respective charters and in compliance with Massachusetts law.
Added
PSNH is also subject to certain regulatory oversight by the Maine Public Utilities Commission and the Vermont Public Utility Commission in connection with facilities it owns in those states.
Added
This consent must be filed with the DPU and the municipality so affected.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeIn addition, see Item 1A, Risk Factors , for general information about several significant risks. 25
Biggest changeIn addition, see Item 1A, Risk Factors , for general information about several significant risks.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeConner has served as Executive Vice President-Customer Experience and Energy Strategy of Eversource Energy since May 5, 2021. Previously, Ms. Conner served as Senior Vice President and Chief Customer Officer of Eversource Service from March 2, 2013 until May 5, 2021. James W. Hunt, III. Mr.
Biggest changeConner served as Senior Vice President and Chief Customer Officer of Eversource Service from March 2, 2013 until May 5, 2021. James W. Hunt, III. Mr. Hunt has served as Executive Vice President-Corporate Relations and Sustainability of Eversource Energy since May 5, 2021 and as Secretary of Eversource Energy since July 9, 2021. Previously Mr.
Item 4. Mine Safety Disclosures Not applicable. INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following sets forth the executive officers of Eversource Energy as of February 14, 2025. All of Eversource Energy’s officers serve terms of one year and until their successors are elected and qualified. Name Age Title Joseph R.
Item 4. Mine Safety Disclosures Not applicable. INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following sets forth the executive officers of Eversource Energy as of February 17, 2026. All of Eversource Energy’s officers serve terms of one year and until their successors are elected and qualified. Name Age Title Joseph R.
Nolan, Jr. 61 Chairman of the Board, President, Chief Executive Officer and a Trustee John M. Moreira 63 Executive Vice President, Chief Financial Officer and Treasurer Gregory B. Butler 67 Executive Vice President and General Counsel Paul Chodak III 61 Executive Vice President and Chief Operating Officer Penelope M. Conner 61 Executive Vice President-Customer Experience and Energy Strategy James W.
Nolan, Jr. 62 Chairman of the Board, President, Chief Executive Officer and a Trustee John M. Moreira 64 Executive Vice President, Chief Financial Officer and Treasurer Gregory B. Butler 68 Executive Vice President and General Counsel Paul Chodak III 62 Executive Vice President and Chief Operating Officer Penelope M. Conner 62 Executive Vice President-Customer Experience and Energy Strategy James W.
Hunt, III 53 Executive Vice President-Corporate Relations and Sustainability and Secretary Susan Sgroi 60 Executive Vice President-Human Resources and Information Technology Jay S. Buth 55 Vice President, Controller and Chief Accounting Officer Joseph R. Nolan, Jr. Mr.
Hunt, III 54 Executive Vice President-Corporate Relations and Sustainability and Secretary Susan Sgroi 61 Executive Vice President-Human Resources and Information Technology Jay S. Buth 56 Vice President, Controller and Chief Accounting Officer Joseph R. Nolan, Jr. Mr.
Nolan has the skills and qualifications necessary to serve as a Trustee of Eversource Energy. John M. Moreira. Mr. Moreira has served as Executive Vice President, Chief Financial Officer and Treasurer of Eversource Energy since May 4, 2022. He previously served as Senior Vice President-Financial and Regulatory and Treasurer of Eversource Energy from September 12, 2018 until May 4, 2022.
Based on his experience as described, Mr. Nolan has the skills and qualifications necessary to serve as a Trustee of Eversource Energy. John M. Moreira. Mr. Moreira has served as Executive Vice President, Chief Financial Officer and Treasurer of Eversource Energy since May 4, 2022.
Nolan has served as Chairman of the Board of Eversource Energy since January 1, 2023, and has served as President and Chief Executive Officer and a Trustee of Eversource Energy since 2021. Previously, Mr.
Nolan has served as Chairman of the Board of Eversource Energy since January 1, 2023, and has served as President and Chief Executive Officer and a Trustee of Eversource Energy since 2021. Previously, Mr. Nolan served as Executive Vice President-Strategy, Customer and Corporate Relations of Eversource Energy from February 5, 2020 until May 5, 2021.
Sgroi has served as Executive Vice President-Human Resources and Information Technology of Eversource Energy since January 8, 2024. Previously, Ms. Sgroi served as Executive Vice President and Chief Human Resources Officer of Blue Cross and Blue Shield of Massachusetts from 2015 until October 31, 2023. Jay S. Buth. Mr.
Sgroi served as Executive Vice President and Chief Human Resources Officer of Blue Cross and Blue Shield of Massachusetts from 2015 until October 31, 2023. Jay S. Buth. Mr. Buth has served as Vice President, Controller and Chief Accounting Officer of Eversource Energy since June 9, 2009. PART II
Gregory B. Butler . Mr. Butler has served as General Counsel of Eversource Energy since May 1, 2001. He has served as Executive Vice President of Eversource Energy since August 8, 2016. Paul Chodak III. Mr. Chodak has served as Executive Vice President and Chief Operating Officer of Eversource Energy since November 13, 2023. Previously, Mr.
He previously served as Senior Vice President-Financial and Regulatory and Treasurer of Eversource Energy from September 12, 2018 until May 4, 2022. Gregory B. Butler . Mr. Butler has served as General Counsel of Eversource Energy since May 1, 2001. He has served as Executive Vice President of Eversource Energy since August 8, 2016. Paul Chodak III. Mr.
Hunt served as Senior Vice President-Communications, External Affairs and Sustainability of Eversource Service from December 17, 2019 until May 5, 2021 and as Senior Vice President-Regulatory Affairs and Chief Communications Officer of Eversource Service from October 3, 2016 until December 17, 2019. Susan Sgroi. Ms.
Hunt served as Senior Vice President-Communications, External Affairs and Sustainability of Eversource Service from December 17, 2019 until May 5, 2021. Susan Sgroi. Ms. Sgroi has served as Executive Vice President-Human Resources and Information Technology of Eversource Energy since January 8, 2024. Previously, Ms.
Chodak served as Executive Vice President – Generation of American Electric Power Company, Inc. (“AEP”) from January 1, 2019 until September 15, 2023, and as Executive Vice President – Utilities of AEP from January 1, 2017 until December 31, 2018. Penelope M. Conner. Ms.
(AEP) from January 1, 2019 until September 15, 2023, and as Executive Vice President – Utilities of AEP from January 1, 2017 until December 31, 2018. 26 Penelope M. Conner. Ms. Conner has served as Executive Vice President-Customer Experience and Energy Strategy of Eversource Energy since May 5, 2021. Previously, Ms.
Hunt has served as Executive Vice President-Corporate Relations and Sustainability of Eversource Energy since May 5, 2021 and as Secretary of Eversource Energy since July 9, 2021. Previously Mr.
Chodak has served as Executive Vice President and Chief Operating Officer of Eversource Energy since November 13, 2023. Previously, Mr. Chodak served as Executive Vice President – Generation of American Electric Power Company, Inc.
Removed
Nolan served as Executive Vice President-Strategy, Customer and Corporate Relations of Eversource Energy from February 5, 2020 until May 5, 2021, and as Executive Vice President-Customer and Corporate Relations of Eversource Energy from August 8, 2016 to February 5, 2020. Based on his experience as described, Mr.
Removed
Buth has served as Vice President, Controller and Chief Accounting Officer of Eversource Energy since April 10, 2012. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−1 removed3 unchanged
Biggest change(e) Performance Graph The performance graph below illustrates a five-year comparison of cumulative total returns based on an initial investment of $100 in 2019 in Eversource Energy common stock, as compared with the S&P 500 Stock Index and the EEI Index for the period 2019 through 2024, assuming all dividends are reinvested.
Biggest change(d) Securities Authorized for Issuance Under Equity Compensation Plans For information regarding securities authorized for issuance under equity compensation plans, see Item 12, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters , included in this Annual Report on Form 10-K. 27 (e) Performance Graph The performance graph below illustrates a five-year comparison of cumulative total returns based on an initial investment of $100 in 2020 in Eversource Energy common stock, as compared with the S&P 500 Stock Index and the EEI Index for the period 2020 through 2025, assuming all dividends are reinvested.
All of the common stock of CL&P, NSTAR Electric and PSNH is held solely by Eversource. 26 (b) Holders As of January 31, 2025, there were 27,747 registered common shareholders of our company on record. As of the same date, there were a total of 366,785,030 shares outstanding.
All of the common stock of CL&P, NSTAR Electric and PSNH is held solely by Eversource. (b) Holders As of January 31, 2026, there were 26,445 registered common shareholders of our company on record. As of the same date, there were a total of 375,496,611 shares outstanding.
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) October 1 - October 31, 2024 — $ — — — November 1 - November 30, 2024 — — — — December 1 - December 31, 2024 3,065 57.39 — — Total 3,065 $ 57.39 — — Item 6.
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) October 1 - October 31, 2025 — $ — — — November 1 - November 30, 2025 638 63.73 — — December 1 - December 31, 2025 2,492 67.43 — — Total 3,130 $ 66.67 — — Item 6.
December 31, 2019 2020 2021 2022 2023 2024 Eversource Energy $100 $104 $113 $107 $82 $80 EEI Index $100 $99 $116 $117 $107 $127 S&P 500 $100 $118 $152 $125 $158 $197 27 Purchases of Equity Securities by the Issuer and Affiliated Purchasers The following table discloses purchases of our common shares made by us or on our behalf for the periods shown below.
December 31, 2020 2021 2022 2023 2024 2025 Eversource Energy $100 $108 $103 $79 $77 $94 EEI Index $100 $117 $118 $108 $129 $144 S&P 500 $100 $129 $105 $133 $166 $196 Purchases of Equity Securities by the Issuer and Affiliated Purchasers The following table discloses purchases of our common shares made by us or on our behalf for the periods shown below.
Removed
(d) Securities Authorized for Issuance Under Equity Compensation Plans For information regarding securities authorized for issuance under equity compensation plans, see Item 12, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters , included in this Annual Report on Form 10-K.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeAccordingly, 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: • cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers, • the ability to qualify for investment tax credits and investment tax credit adders, • 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, • 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, and customer demand and payment ability, • ability or inability to commence and complete our major strategic development projects and opportunities, • acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems, • actions or inaction of local, state and federal regulatory, public policy and taxing bodies, • substandard performance of third-party suppliers and service providers, • fluctuations in weather patterns, including extreme weather due to climate change, • changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model, • contamination of, or disruption in, our water supplies, • changes in levels or timing of capital expenditures, • changes in laws, regulations, Presidential executive orders or regulatory policy, including compliance with environmental laws and regulations, • changes in accounting standards and financial reporting regulations, • actions of rating agencies, and • other presently unknown or unforeseen factors.
Biggest changeAccordingly, 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, • adequacy, contamination of, or disruption in, our water supplies, • physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems, • ability or inability to commence and complete our major strategic development projects and opportunities, • 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.
CL&P, NSTAR Electric, and PSNH are each doing business as Eversource Energy. 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 U.S. federal securities laws.
CL&P, NSTAR Electric, and PSNH are each doing business as Eversource Energy. 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.
Form 10-K Summary 149 Signatures E- 10 iii EVERSOURCE ENERGY AND SUBSIDIARIES THE CONNECTICUT LIGHT AND POWER COMPANY NSTAR ELECTRIC COMPANY AND SUBSIDIARY PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 References in this Annual Report on Form 10-K to "Eversource," the "Company," "we," "our," and "us" refer to Eversource Energy and its consolidated subsidiaries.
Form 10-K Summary 153 Signatures E- 10 iii EVERSOURCE ENERGY AND SUBSIDIARIES THE CONNECTICUT LIGHT AND POWER COMPANY NSTAR ELECTRIC COMPANY AND SUBSIDIARY PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 References in this Annual Report on Form 10-K to "Eversource," the "Company," "we," "us," and "our" refer to Eversource Energy and its consolidated subsidiaries.
Other risk factors are detailed in our reports filed with the SEC and are updated as necessary and available on our website at www.eversource.com and on the SEC’s website at www.sec.gov, and we encourage you to consult such disclosures.
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.
Item 6. Removed and Reserved 28 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 59 Item 8. Financial Statements and Supplementary Data 60 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 145 Item 9A. Controls and Procedures 145 Item 9B.
Item 6. Removed and Reserved 28 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 60 Item 8. Financial Statements and Supplementary Data 61 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 149 Item 9A. Controls and Procedures 149 Item 9B.
Other Information 145 PART III Item 10. Directors, Executive Officers and Corporate Governance 146 Item 11. Executive Compensation 146 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 146 Item 13. Certain Relationships and Related Transactions, and Director Independence 147 Item 14. Principal Accountant Fees and Services 147 PART IV Item 15.
Other Information 149 PART III Item 10. Directors, Executive Officers and Corporate Governance 150 Item 11. Executive Compensation 150 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 150 Item 13. Certain Relationships and Related Transactions, and Director Independence 151 Item 14. Principal Accountant Fees and Services 151 PART IV Item 15.
Exhibits and Financial Statement Schedules 149 Item 16.
Exhibits and Financial Statement Schedules 153 Item 16.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

225 edited+177 added−157 removed142 unchanged
Biggest changeLong-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 CL&P 2024 Series A First Mortgage Bonds 4.65 % $ 350.0 January 2024 January 2029 Repaid short-term debt, paid capital expenditures and working capital CL&P Series B First Mortgage Bonds 4.95 % 300.0 August 2024 August 2034 Repaid Series D Bonds, repaid short-term debt, and working capital CL&P Series D First Mortgage Bonds 7.875 % (139.8) October 2024 October 2024 Paid at maturity CL&P 2025 Series A First Mortgage Bonds 4.95 % 400.0 January 2025 January 2030 Repaid short-term debt, paid capital expenditures and working capital NSTAR Electric Debentures 5.40 % 600.0 May 2024 June 2034 Repaid short-term debt, paid capital expenditures and working capital PSNH Series X First Mortgage Bonds 5.35 % 300.0 April 2024 October 2033 Repaid short-term debt, paid capital expenditures and working capital Eversource Parent Series DD Senior Notes 5.00 % 350.0 January 2024 January 2027 Repaid short-term debt Eversource Parent Series EE Senior Notes 5.50 % 650.0 January 2024 January 2034 Repaid short-term debt Eversource Parent Series FF Senior Notes 5.85 % 700.0 April 2024 April 2031 Repaid Series X Senior Notes and Aquarion’s 2014 Senior Notes at maturity and short-term debt Eversource Parent Series GG Senior Notes 5.95 % 700.0 April 2024 July 2034 Repaid Series X Senior Notes and Aquarion’s 2014 Senior Notes at maturity and short-term debt Eversource Parent Series X Senior Notes 4.20 % (900.0) June 2024 June 2024 Paid at maturity Eversource Parent Series L Senior Notes 2.90 % (450.0) October 2024 October 2024 Paid at maturity Eversource Parent Series H Senior Notes 3.15 % (300.0) January 2025 January 2025 Paid at maturity NSTAR Gas Series W First Mortgage Bonds 5.29 % 160.0 June 2024 June 2029 Repaid short-term debt, paid capital expenditures and general corporate purposes NSTAR Gas Series X First Mortgage Bonds 5.48 % 40.0 June 2024 June 2034 Repaid short-term debt, paid capital expenditures and general corporate purposes Yankee Gas Series W First Mortgage Bonds 5.50 % 90.0 July 2024 July 2029 Repaid short-term debt, paid capital expenditures, working capital and repaid Series P bonds at maturity Yankee Gas Series X First Mortgage Bonds 5.74 % 90.0 July 2024 July 2034 Repaid short-term debt, paid capital expenditures, working capital and repaid Series P bonds at maturity Yankee Gas Series P First Mortgage Bonds 2.23 % (100.0) October 2024 October 2024 Paid at maturity EGMA Series E First Mortgage Bonds 5.17 % 100.0 October 2024 November 2034 Refinanced existing indebtedness, paid capital expenditures and general corporate purposes Aquarion Senior Notes 4.00 % (360.0) August 2024 August 2024 Paid at maturity Aquarion Water Company of Connecticut Senior Notes 5.57 % 70.0 August 2024 September 2034 Repaid short-term debt, paid capital expenditures and general corporate purposes As a result of the CL&P long-term debt issuance in January 2025, $397.1 million of current portion of long-term debt was reclassified to Long-Term Debt on Eversource’s and CL&P’s balance sheets as of December 31, 2024.
Biggest changeLong-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 CL&P 2025 Series A First Mortgage Bonds 4.95 % 400.0 January 2025 January 2030 Repaid short-term debt, paid capital expenditures and working capital CL&P 2020 Series A First Mortgage Bonds 0.75 % (400.0) December 2025 December 2025 Paid at maturity NSTAR Electric Debentures 4.85 % 400.0 February 2025 March 2030 Repaid 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital NSTAR Electric Debentures 5.20 % 400.0 February 2025 March 2035 Repaid 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital NSTAR Electric Debentures 5.20 % 300.0 October 2025 March 2035 Repaid short-term debt, paid capital expenditures and working capital NSTAR Electric Debentures 3.25 % (250.0) November 2025 November 2025 Paid at maturity PSNH Series Y First Mortgage Bonds 4.40 % 300.0 June 2025 July 2028 Repaid short-term debt, paid capital expenditures and working capital Eversource Parent Series HH Senior Notes 4.45 % 600.0 October 2025 December 2030 Repay Series J bonds at maturity and repaid short-term debt Eversource Parent Series H Senior Notes 3.15 % (300.0) January 2025 January 2025 Paid at maturity Eversource Parent Series Q Senior Notes 0.80 % (300.0) August 2025 August 2025 Paid at maturity NSTAR Gas Series Y First Mortgage Bonds 4.86 % 205.0 June 2025 June 2030 Repaid short-term debt, paid capital expenditures and working capital NSTAR Gas Series Z First Mortgage Bonds 5.30 % 20.0 June 2025 June 2035 Repaid short-term debt, paid capital expenditures and working capital NSTAR Gas Series R First Mortgage Bonds 2.33 % (75.0) May 2025 May 2025 Paid at maturity Yankee Gas Series Y First Mortgage Bonds 5.02 % 148.0 July 2025 January 2031 Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital Yankee Gas Series Z First Mortgage Bonds 5.55 % 37.0 July 2025 July 2035 Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital Yankee Gas Series M First Mortgage Bonds 3.35 % (75.0) September 2025 September 2025 Paid at maturity EGMA Series F First Mortgage Bonds 4.77 % 125.0 September 2025 October 2030 Repaid short-term debt, paid capital expenditures and working capital Rate Reduction Bonds: PSNH's RRB payments consist of principal and interest and are paid semi-annually.
Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.
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.
Aquarion Water Company of Connecticut Distribution Rate Case: On August 29, 2022, Aquarion Water Company of Connecticut (AWC-CT) filed an application with PURA to amend its existing rate schedules to address an operating revenue deficiency.
Aquarion Water Company of Connecticut Distribution 2022 Rate Case: On August 29, 2022, Aquarion Water Company of Connecticut (AWC-CT) filed an application with PURA to amend its existing rate schedules to address an operating revenue deficiency.
Our Massachusetts utilities recover qualified pension and PBOP expenses related to their distribution operations through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year, therefore the change in their pension and PBOP expense does not impact earnings.
Our Massachusetts utilities recover qualified pension and PBOP expenses related to their distribution operations through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year, and therefore the change in their pension and PBOP expense does not impact earnings.
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.
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.
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 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.
CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs.
CL&P does not have legislative authority to use this purchased output to serve its customer load and therefore sells the energy into the wholesale market and uses the proceeds from the energy sales to offset the contract costs.
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 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.
These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order. 39 On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs.
These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order. On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs.
Amortization of Regulatory Assets/(Liabilities), 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 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.
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.
For customers that choose to purchase electric generation from CL&P, NSTAR Electric or 51 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.
On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order to determine the NETOs' base ROEs in their four pending cases.
On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order 38 to determine the NETOs' base ROEs in their four pending cases.
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 project cost is approximately $1.84 billion, with $1.38 billion allocated for transmission and $460 million for distribution.
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.
Eliminations: Eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business in rates charged to their customers.
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.
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).
Customer heating or cooling usage may not directly correlate with historical levels or with the level of degree-days that occur. 50 Fluctuations in retail electric sales volumes at PSNH impact earnings ("Traditional" in the table above).
Our electric transmission companies' rates provide for an annual true-up of estimated to actual costs, which include pension expenses, therefore the change in their pension expense does not impact earnings.
Our electric transmission companies' rates provide for an annual true-up of estimated to actual costs, which include pension expenses, and therefore the change in their pension expense does not impact earnings.
We continue to monitor developments in this proceeding, and at this time, we cannot predict the ultimate outcome of this proceeding and the resulting impact to CL&P. 41 CL&P Storm Filings: On March 28, 2024, PURA established a prudency review proceeding for the purpose of receiving and reviewing evidence of the costs reported by CL&P in response to catastrophic storms and pre-staging events totaling approximately $634 million that occurred between January 1, 2018 and December 31, 2021.
We continue to monitor developments in this proceeding, and at this time, we cannot predict the ultimate outcome of this proceeding and the resulting impact to CL&P. 40 CL&P Storm Filings: On March 28, 2024, PURA established a prudency review proceeding for the purpose of receiving and reviewing evidence of the costs reported by CL&P in response to catastrophic storms and pre-staging events totaling approximately $634 million that occurred between January 1, 2018 and December 31, 2021.
When quoted prices in active markets for the same or similar instruments are not available, we value derivative contracts using models that incorporate both observable and unobservable inputs.
When quoted prices in active markets for the same or similar instruments are not available, we value financial instruments and derivative contracts using models that incorporate both observable and unobservable inputs.
The review of long-lived assets for impairment utilizes significant assumptions about operating strategies and external developments, including assessment of current and projected market conditions that can impact future cash flows. If indicators are present for a long-lived asset or asset group, a comparison of the undiscounted expected future cash flows to the carrying value is performed.
The evaluation of long-lived assets for impairment utilizes significant assumptions about operating strategies and external developments, including assessment of current and projected market conditions that can impact future cash flows. If indicators are present for a long-lived asset or asset group, a comparison of the undiscounted expected future cash flows to the carrying value is performed.
This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of both December 31, 2024 and 2023.
This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of both December 31, 2025 and 2024.
Unless expressly stated otherwise, for discussion and analysis of fiscal year 2022 items and of fiscal year 2023 compared to fiscal year 2022, please refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our combined 2023 Annual Report on Form 10-K , which is incorporated herein by reference.
Unless expressly stated otherwise, for discussion and analysis of fiscal year 2023 items and of fiscal year 2024 compared to fiscal year 2023, please refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our combined 2024 Annual Report on Form 10-K , which is incorporated herein by reference.
As of December 31, 2024 and 2023, the compensation/progression rates used to determine the Pension and SERP Plan funded status were within a range of 3.5 percent to 4.0 percent. Health Care Cost Assumptions : The Eversource Service PBOP Plan is not subject to health care cost trends.
As of December 31, 2025 and 2024, the compensation/progression rates used to determine the Pension and SERP Plan funded status were within a range of 3.5 percent to 4.0 percent. Health Care Cost Assumptions : The Eversource Service PBOP Plan is not subject to health care cost trends.
Court of Appeals for the D.C. Circuit (the Court). All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of both December 31, 2024 and 2023.
Court of Appeals for the D.C. Circuit (the Court). All amounts associated with the first complaint period have been refunded. Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of both December 31, 2025 and 2024.
In the fourth quarter of 2024, we concluded that the likely sale of Aquarion at a loss resulted in the requirement to perform an interim goodwill impairment test for Water Distribution goodwill. We compared the estimated fair value of the business from the anticipated transaction to its carrying value.
For the Water Distribution reporting unit, in the fourth quarter of 2024, we concluded that the likely sale of Aquarion at a loss resulted in the requirement to perform an interim goodwill impairment test for Water Distribution goodwill. We compared the estimated fair value of the business from the anticipated transaction to its carrying value.
The fair value included future cash outflows of approximately $140 million of estimated income taxes as a result of the transaction. The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.
The fair value included future cash outflows of approximately $140 million of estimated income taxes as a result of the transaction. The goodwill impairment charge was presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.
The amount of net unrecognized actuarial gain or loss in excess of the 10 percent corridor is amortized to expense over the estimated average future employee service period. For the Eversource Service Pension Plan, the net actuarial gain or loss is amortized as a component of expense over the estimated average future employee service period of eleven years.
The amount of net unrecognized actuarial gain or loss in excess of the 10 percent corridor is amortized to expense over the estimated average future employee service period. For the Eversource Service Pension Plan, the net actuarial gain or loss is amortized as a component of expense over the estimated average future employee service period of thirteen years.
The rates charged to the customers of our regulated companies are designed to collect each company's costs to provide service, plus a return on investment. We believe that the operations of each of our regulated companies currently satisfy the criteria for application of regulatory accounting.
The rates charged to the customers of our regulated companies are designed to collect each company's costs to provide service, including a return on investment. We believe that the operations of each of our regulated companies currently satisfy the criteria for application of regulatory accounting.
The variance in Amortization of Regulatory Assets/(Liabilities), Net 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, 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 Amortization of Regulatory Assets, Net 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 57 timing of costs incurred and related rate changes to recover these costs.
For the year ended December 31, 2024, our expected long-term rate-of-return assumption used to determine our pension and PBOP expense was 8.25 percent for the Eversource Service Pension and PBOP plans.
For the year ended December 31, 2025, our expected long-term rate-of-return assumption used to determine our pension and PBOP expense was 8.25 percent for the Eversource Service Pension and PBOP plans.
For the forecasted 2025 pension and PBOP expense, an expected long-term rate of return of 8.25 percent for the Eversource Service Pension and PBOP plans will be used reflecting our target asset allocations.
For the forecasted 2026 pension and PBOP expense, an expected long-term rate of return of 8.25 percent for the Eversource Service Pension and PBOP plans will be used reflecting our target asset allocations.
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 . 58
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 . 59
In 2024, our mortality assumption utilized the Society of Actuaries base mortality tables (Pri-2012), adjusted to reflect Eversource’s own mortality experience, and projected generationally using the MP-2021 improvement scale.
In 2025, our mortality assumption utilized the Society of Actuaries base mortality tables (Pri-2012), adjusted to reflect Eversource’s own mortality experience, and projected generationally using the MP-2021 improvement scale.
The consolidated financial statements of Eversource, NSTAR Electric and PSNH and the financial statements of CL&P are herein collectively referred to as the "financial statements." Our discussion of fiscal year 2024 compared to fiscal year 2023 is included herein.
The consolidated financial statements of Eversource, NSTAR Electric and PSNH and the financial statements of CL&P are herein collectively referred to as the "financial statements." Our discussion of fiscal year 2025 compared to fiscal year 2024 is included herein.
Prospectively from the date of a final FERC order implementing a new base ROE, based off of estimated 2024 rate base, a change of 10 basis points to the base ROE would impact Eversource’s future annual after-tax earnings by approximately $6 million per year, and will increase slightly over time as we continue to invest in our transmission infrastructure.
Prospectively from the date of a final FERC order implementing a new base ROE, based off of estimated 2025 rate base, a change of 10 basis points to the base ROE would impact Eversource’s future annual after-tax earnings by approximately $7 million per year, and will increase slightly over time as we continue to invest in our transmission infrastructure.
For further information, see "Business Development and Capital Expenditures – Pending Sale of Aquarion" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations . (3) The 2023 charges primarily include a loss on the disposition of abandoned land intended to be used for the cancelled Northern Pass Transmission project.
For further information, see "Business Development and Capital Expenditures – Aquarion Sale Status and Regulatory Denial" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations . (3) The 2023 charges primarily include a loss on the disposition of abandoned land intended to be used for the cancelled Northern Pass Transmission project.
Taxes Other Than Income Taxes - the variance is due primarily to the following: • The increase at CL&P was due to higher Connecticut gross earnings taxes and higher property taxes as a result of higher utility plant balances. • The increase at NSTAR Electric was due to higher property taxes as a result of higher utility plant balances and higher assessments. • The increase at PSNH was due to higher property taxes as a result of higher utility plant balances.
Taxes Other Than Income Taxes - the variance is due primarily to the following: • The increase at CL&P was due to higher Connecticut gross earnings taxes and higher property taxes as a result of higher utility plant balances. • The increase at NSTAR Electric was due to higher property taxes as a result of higher utility plant balances and higher mill rates. • The increase at PSNH was due to higher property taxes as a result of higher utility plant balances.
Based on the current status of the Pension Plans and federal pension funding requirements, for our Eversource Service Pension Plan there is no minimum funding requirement in 2025 and we do not expect to make pension contributions in 2025. It is our policy to fund the PBOP Plans annually through tax deductible contributions to external trusts.
Based on the current status of the Pension Plans and federal pension funding requirements, for our Eversource Service Pension Plan there is no minimum funding requirement in 2026 and we do not expect to make pension contributions in 2026. It is our policy to fund the PBOP Plans annually, as necessary, through tax deductible contributions to external trusts.
The cash balance interest crediting rate assumption used in determining the forecasted 2025 pension expense was 4.8 percent. Actuarial Gains and Losses: Actuarial gains and losses represent the differences between actuarial assumptions and actual information or updated assumptions.
The cash balance interest crediting rate assumption used in determining the forecasted 2026 pension expense was 4.8 percent. 46 Actuarial Gains and Losses: Actuarial gains and losses represent the differences between actuarial assumptions and actual information or updated assumptions.
Sensitivity Analysis : The following table illustrates the hypothetical effect on reported annual net periodic benefit income as a result of a change in the following assumptions by 50 basis points: Pension Plans (excluding SERP Plans) PBOP Plans Decrease in Plan Income Decrease/(Increase) in Plan Income (Millions of Dollars) For the Years Ended December 31, For the Years Ended December 31, Eversource 2024 2023 2024 2023 Lower expected long-term rate of return $ 28.9 $ 29.1 $ 5.0 $ 0.2 Lower discount rate 27.4 24.7 (0.5) 4.7 Higher compensation rate 5.9 8.1 N/A N/A Goodwill: Goodwill is recognized on our balance sheet from previous mergers and acquisitions to the extent that the consideration paid exceeded the net fair value of the identified assets and liabilities acquired in each business combination.
Sensitivity Analysis : The following table illustrates the hypothetical effect on reported annual net periodic benefit income as a result of a change in the following assumptions by 50 basis points: Pension Plans (excluding SERP Plans) PBOP Plans Decrease in Plan Income Decrease/(Increase) in Plan Income (Millions of Dollars) For the Years Ended December 31, For the Years Ended December 31, Eversource 2025 2024 2025 2024 Lower expected long-term rate of return $ 28.4 $ 28.9 $ 5.2 $ 5.0 Lower discount rate 14.5 27.4 (0.3) (0.5) Higher compensation rate 4.1 5.9 N/A N/A 47 Goodwill: Goodwill is recognized on our balance sheet from previous mergers and acquisitions to the extent that the consideration paid exceeded the net fair value of the identified assets and liabilities acquired in each business combination.
MISO was directed to provide refunds for the period November 12, 2013 to February 11, 2015 (the first MISO ROE complaint refund period) and for the period from September 28, 2016 (the date of FERC’s order on the first MISO ROE complaint) to October 17, 2024 by December 1, 2025.
MISO transmission owners were directed to provide refunds for the period November 12, 2013 to February 11, 2015 (the first MISO ROE complaint refund period) and for the period from September 28, 2016 (the date of FERC’s order on the first MISO ROE complaint) to October 17, 2024 by December 1, 2025.
As of December 31, 2024, the discount rates used to determine the funded status were within a range of 5.6 percent to 5.7 percent for the Pension and SERP Plans, and 5.7 percent for the PBOP Plans.
As of December 31, 2024, the discount rates used were within a range of 5.6 percent to 5.7 percent for the Pension and SERP Plans, and 5.7 percent for the PBOP Plans.
Changes in these assumptions could have a material impact on our financial position, results of operations or cash flows. Expected Long-Term Rate of Return on Plan Assets Assumption : In developing the expected long-term rate of return, we consider historical and expected returns, as well as input from our consultants.
We evaluate these assumptions annually and adjust them as necessary. Changes in these assumptions could have a material impact on our financial position, results of operations or cash flows. Expected Long-Term Rate of Return on Plan Assets Assumption : In developing the expected long-term rate of return, we consider historical and expected returns, as well as input from our consultants.
These increases were partially offset by a decrease in the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed to customers. 52 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 increase was partially offset by a decrease in the retail transmission cost deferral, which reflects the actual cost of transmission service compared to estimated amounts billed to customers. 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).
We do not expect to make any contributions to the Eversource Service PBOP Plan in 2025.
We do not expect to make any contributions to the Eversource Service PBOP Plan in 2026.
Earnings Overview Consolidated: Below is a summary of our earnings/(loss) 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/(Loss) Attributable to Common Shareholders and diluted EPS.
Eversource is currently evaluating the appeals. 30 Earnings Overview Consolidated: Below is a summary of our earnings/(loss) 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/(Loss) Attributable to Common Shareholders and diluted EPS.
We believe the impacts of the losses on the offshore wind equity method investments, the loss on the pending sale of the Aquarion water distribution business, the loss on the disposition of land associated with an abandoned project, and transaction and transition costs are not indicative of our ongoing costs and performance.
We believe the impacts of the losses associated with our previous offshore wind investments, the loss on the pending sale of the Aquarion water distribution business, and the loss on the disposition of land associated with an abandoned project are not indicative of our ongoing costs and performance.
After adjusting for the cap, the increase to base distribution rates is $85.6 million effective November 1, 2024 (of which $8.8 million is offset by a reduction in the GSEP revenue requirement and GSEP rate also taking effect on November 1, 2024 for a net distribution rate change on November 1, 2024 of $76.8 million).
After adjusting for a cap required under the terms of the rate settlement agreement, the increase to base distribution rates was $85.6 million effective November 1, 2024 (of which $8.8 million is offset by a reduction in the GSEP revenue requirement and GSEP rate also taking effect on November 1, 2024 for a net distribution rate change on November 1, 2024 of $76.8 million).
The variance in other electric distribution costs at CL&P is due to higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism, at NSTAR Electric is due to higher net metering costs and an increase in long-term renewable contract costs, and at PSNH is due primarily to a decrease in long-term renewable energy purchase contract costs.
The variance in other electric distribution costs is due to an increase in the long-term renewable energy purchase contract cost deferral and higher net metering costs at NSTAR Electric, higher long-term contractual energy-related costs and the cost of renewable energy credits that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and higher net metering costs at PSNH.
Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion in cash, which includes approximately $1.6 billion for the equity and $800 million of net debt that will be extinguished at closing.
Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion in cash, which included approximately $1.6 billion for the equity and $800 million of net debt that will either be extinguished at closing or transferred to the buyer.
For further information, see "Business Development and Capital Expenditures – Pending Sale of Aquarion" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations .
For further information, see "Business Development and Capital Expenditures – Aquarion Sale Status and Regulatory Denial" included in this Management's Discussion and Analysis of Financial Condition and Results of Operations .
Our qualitative assessment included an evaluation of multiple factors that impact the fair value of the reporting units, including general, macroeconomic and market conditions, and entity-specific assumptions that affect the future cash flows of the reporting units.
The annual goodwill assessment included a qualitative evaluation of multiple factors that impact the fair value of the reporting units, including general, macroeconomic and market conditions, and entity-specific assumptions that affect the future cash flows of the reporting units.
The impact of eliminations decreased revenues by $86.3 million at CL&P, $86.0 million at NSTAR Electric and $38.2 million at PSNH. 55 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 transmission costs.
The impact of eliminations decreased revenues by $55.7 million at CL&P, $75.0 million at NSTAR Electric and $31.9 million at PSNH. 56 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 transmission costs.
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.
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.
We also project that our long-term EPS growth rate through 2029 will be in a 5 to 7 percent range, using 2024 non-GAAP EPS of $4.57 per share as the base year. Liquidity: • Cash flows provided by operating activities totaled $2.16 billion in 2024, compared with $1.65 billion in 2023.
We also project that our long-term EPS growth rate through 2030 will be in a 5 to 7 percent range, using 2025 non-GAAP EPS of $4.76 per share as the base year. Liquidity: • Cash flows provided by operating activities totaled $4.11 billion in 2025, compared with $2.16 billion in 2024.
Assumptions and key judgments in determining the estimated liability include the expected cost overrun sharing obligation, expected obligation to maintain GIP’s internal rate of return, and obligation for other future costs, as well as the likelihood of realization of investment tax credit adders that were included in the purchase price.
Assumptions and key judgments in determining the estimated liability include the expected cost overrun sharing obligation, expected obligation to maintain GIP’s internal rate of return through the construction period, expected 48 attainment of commercial operation, obligation for other future costs prior to commercial operation, as well as the likelihood of realization of investment tax credit adders that were included in the purchase price.
A summary of electric transmission capital expenditures by company is as follows: For the Years Ended December 31, (Millions of Dollars) 2024 2023 2022 CL&P $ 450.0 $ 470.4 $ 416.8 NSTAR Electric 502.0 567.4 438.4 PSNH 375.8 410.0 351.8 Total Electric Transmission $ 1,327.8 $ 1,447.8 $ 1,207.0 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.
A summary of electric transmission capital expenditures by company is as follows: For the Years Ended December 31, (Millions of Dollars) 2025 2024 2023 CL&P $ 398.6 $ 450.0 $ 470.4 NSTAR Electric 522.9 502.0 567.4 PSNH 287.5 375.8 410.0 Total Electric Transmission $ 1,209.0 $ 1,327.8 $ 1,447.8 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.
On July 31, 2024, the NHPUC approved a settlement agreement that was reached by PSNH, New Hampshire Department of Energy, and the Office of the Consumer Advocate to implement a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024.
On July 31, 2024, the NHPUC approved a settlement agreement that was reached by PSNH, New Hampshire Department of Energy, and the Office of the Consumer Advocate to implement a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024. Temporary rates were in effect until permanent rates were approved and took effect August 1, 2025.
The variance in other electric distribution costs is due to higher long-term contractual energy-related costs that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, higher net metering costs and an increase in long-term renewable contract costs at NSTAR Electric, partially offset by a decrease in long-term renewable energy purchase contract costs at PSNH.
The variance in other electric distribution costs is due to an increase in the long-term renewable energy purchase contract cost deferral and higher net metering costs at NSTAR Electric, higher long-term contractual energy-related costs and the cost of renewable energy credits that are recovered in the non-bypassable component of the FMCC mechanism at CL&P, and higher net metering costs at PSNH.
Base Distribution Revenues: • CL&P's distribution revenues were flat. • NSTAR Electric's distribution revenues increased $105.3 million due primarily to a base distribution rate increase effective January 1, 2024. • PSNH's distribution revenues increased $35.8 million due primarily to a temporary base distribution rate increase effective August 1, 2024. 54 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.
Fluctuations in base distribution revenues impact earnings. • CL&P's distribution revenues were flat. • NSTAR Electric's distribution revenues increased $54.2 million due primarily to a base distribution rate increase effective January 1, 2025. • PSNH's distribution revenues increased $59.9 million due primarily to base distribution rate increases effective August 1, 2024 and August 1, 2025. 55 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.
The discount rates used to estimate the 2024 expense were within a range of 4.7 percent to 5.1 percent for the Pension and SERP Plans, and within a range of 4.9 percent to 5.2 percent for the PBOP Plans.
The discount rates used to estimate the 2025 expense were within a range of 5.2 percent to 5.8 percent for the Pension and SERP Plans, and within a range of 5.4 percent to 5.9 percent for the PBOP Plans.
These amounts included $260.5 million in 2024, $214.4 million in 2023, and $266.5 million in 2022 related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company. Electric Transmission Business: Our consolidated electric transmission business capital expenditures decreased by $120.0 million in 2024, as compared to 2023.
These amounts included $240.2 million in 2025, $260.5 million in 2024, and $214.4 million in 2023 related to information technology and facilities upgrades and enhancements, primarily at Eversource Service and The Rocky River Realty Company. Electric Transmission Business: Our consolidated electric transmission business capital expenditures decreased by $118.8 million in 2025, as compared to 2024.
The increase in PBOP income from 2024 to 2025 is driven primarily by favorable expected return on assets due to a higher asset balance. For the PBOP Plans, there is no amortization of actuarial loss in 2025.
The increase in PBOP income from 2025 to 2026 is driven primarily by favorable expected return on assets due to a higher asset balance and a decrease in the interest cost component. For the PBOP Plans, there is no amortization of actuarial loss in 2026.
Also on June 11, 2024, PSNH filed an application with the NHPUC to request an increase in permanent base distribution rates of $181.9 million, which is inclusive of the temporary rate increase, and proposed to take effect August 1, 2025.
Also on June 11, 2024, PSNH filed an application with the NHPUC to request an increase in permanent base distribution rates of $181.9 million, which is inclusive of the temporary rate increase.
Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our earnings and EPS excluding losses on the sales and impairments of the offshore wind equity method investments, a loss on the pending sale of the Aquarion water distribution business, a loss on the disposition of land that was initially acquired to construct the Northern Pass Transmission project and was subsequently abandoned, and certain transaction and transition costs.
Our earnings discussion includes financial measures that are not recognized under GAAP (non-GAAP) referencing our earnings and EPS excluding losses associated with our previous offshore wind investments, a loss on the pending sale of the Aquarion water distribution business, and a loss on the disposition of land that was initially acquired to construct the Northern Pass Transmission project and was subsequently abandoned.
As of December 31, 2024, $1.40 billion of Eversource's long-term debt, including $600.0 million at Eversource parent, $400.0 million at CL&P and $250.0 million at NSTAR Electric, matures within the next 12 months. Eversource, with its current credit ratings, has several options available in the financial markets to repay or refinance these maturities with the issuance of new long-term debt.
As of December 31, 2025, $1.39 billion of Eversource's long-term debt, including $1.00 billion at Eversource parent and $300.0 million at NSTAR Electric, matures within the next 12 months. Eversource, with its current credit ratings, has several options available in the financial markets to repay or refinance these maturities with the issuance of new long-term debt.
CL&P RAM Filing: On April 17, 2024, PURA issued an interim decision in CL&P’s Rate Adjustment Mechanisms (RAM) filing and approved rates for six RAM components, with rates effective July 1, 2024 through April 30, 2025.
CL&P RAM Filing: On March 28, 2025, PURA issued an interim decision in CL&P’s Rate Adjustment Mechanisms (RAM) filing and approved rates for six RAM components, with rates effective May 1, 2025 through April 30, 2026.
In 2024, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $4.48 billion, $978.5 million, $1.56 billion and $608.8 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.
In 2025, investments for Eversource, CL&P, NSTAR Electric, and PSNH were $4.16 billion, $867.8 million, $1.56 billion and $537.8 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.
A summary of our segment earnings and EPS is as follows: For the Years Ended December 31, 2024 2023 2022 (Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share Net Income - Regulated Companies (GAAP) $ 1,393.6 $ 3.90 $ 1,509.3 $ 4.31 $ 1,460.4 $ 4.21 Electric Distribution $ 631.7 $ 1.77 $ 608.0 $ 1.74 $ 592.8 $ 1.71 Electric Transmission 724.6 2.03 643.4 1.84 596.6 1.72 Natural Gas Distribution 291.0 0.81 224.8 0.64 234.2 0.67 Water Distribution, excluding Loss on Pending Sale (Non-GAAP) 44.6 0.12 33.1 0.09 36.8 0.11 Net Income - Regulated Companies (Non-GAAP) $ 1,691.9 $ 4.73 $ 1,509.3 $ 4.31 $ 1,460.4 $ 4.21 Loss on Pending Sale of Aquarion (after-tax) (298.3) (0.83) — — — — Net Income - Regulated Companies (GAAP) $ 1,393.6 $ 3.90 $ 1,509.3 $ 4.31 $ 1,460.4 $ 4.21 Our electric distribution segment earnings increased $23.7 million in 2024, as compared to 2023, due primarily to higher revenues from base distribution rate increases at NSTAR Electric effective January 1, 2024 and at PSNH effective August 1, 2024 and from CL&P's capital tracking mechanism due to increased electric system improvements, and an increase in interest income primarily on regulatory deferrals.
A summary of our segment earnings and EPS is as follows: For the Years Ended December 31, 2025 2024 2023 (Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share Net Income - Regulated Companies (GAAP) $ 1,848.5 $ 4.98 $ 1,393.6 $ 3.90 $ 1,509.3 $ 4.31 Electric Distribution $ 667.1 $ 1.80 $ 631.7 $ 1.77 $ 608.0 $ 1.74 Electric Transmission 776.7 2.09 724.6 2.03 643.4 1.84 Natural Gas Distribution 360.5 0.97 291.0 0.81 224.8 0.64 Water Distribution, excluding Loss on Pending Sale (Non-GAAP) 44.2 0.12 44.6 0.12 33.1 0.09 Net Income - Regulated Companies (Non-GAAP) $ 1,848.5 $ 4.98 $ 1,691.9 $ 4.73 $ 1,509.3 $ 4.31 Loss on Pending Sale of Aquarion (after-tax) — — (298.3) (0.83) — — Net Income - Regulated Companies (GAAP) $ 1,848.5 $ 4.98 $ 1,393.6 $ 3.90 $ 1,509.3 $ 4.31 Our electric distribution segment earnings increased $35.4 million in 2025, as compared to 2024, due primarily to higher revenues from base distribution rate increases at PSNH effective August 1, 2024 and August 1, 2025 and at NSTAR Electric effective January 1, 2025 and from CL&P's capital tracking mechanism due to increased electric system improvements.
Forecasted Expense/Income and Expected Contributions : We estimate that net periodic benefit income in 2025 for the Pension and SERP Plans will be approximately $93 million and for the PBOP Plans will be approximately $69 million.
Forecasted Expense/Income and Expected Contributions : We estimate that net periodic benefit income in 2026 for the Pension and SERP Plans will be approximately $124 million and for the PBOP Plans will be approximately $79 million.
Our quarterly common share dividend payment was $0.715 per share in 2024, as compared to $0.675 per share in 2023.
Our quarterly common share dividend payment was $0.7525 per share in 2025, as compared to $0.715 per share in 2024.
Cash Balance Interest Crediting Rate Assumption : The Cash Balance Pension Plan is a new, additional obligation of the existing Pension Plan and the liability will begin to accrue benefits upon the effective date of January 1, 2025.
Cash Balance Interest Crediting Rate Assumption : The Cash Balance Pension Plan is a recent additional obligation of the existing Eversource Service Pension Plan and the liability began to accrue benefits upon the effective date of January 1, 2025.
Additional required environmental permits are expected to be approved by the end of 2025, as well as a license from the MA DEP expected to be approved by the end of the second quarter 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.
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.
Factors that could increase the post-closing adjustment payments owed to GIP include the ultimate cost of construction and extent of cost overruns for Revolution Wind, delays in construction, which would impact the economics associated with the purchase price adjustment, and Revolution Wind’s eligibility for federal investment tax credits at a lower value than assumed and included in the purchase price.
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 economics associated with 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 32 price.
The variance in Energy Efficiency Programs expense is due primarily to the following: • The increase at CL&P was due to the deferral adjustment and higher program spending. • The decrease at NSTAR Electric was due to the deferral adjustment, partially offset by higher program spending. • The increase at PSNH was due to higher program spending, partially offset by the deferral adjustment.
The variance in Energy Efficiency Programs expense is due primarily to the following: • The decrease at CL&P was due to lower program spending, partially offset by the deferral adjustment that matched costs to the corresponding revenues recorded. • The increase at NSTAR Electric was due to the deferral adjustment that matched costs to the corresponding revenues recorded, partially offset by lower program spending. • The increase at PSNH was due to higher program spending, partially offset by the deferral adjustment that matched costs to the corresponding revenues recorded.
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 2024, CL&P, NSTAR Electric and PSNH paid $333.8 million, $643.9 million and $62.0 million, respectively, in common stock dividends to Eversource parent.
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 2025, CL&P, NSTAR Electric and PSNH paid $430.0 million, $436.0 million and $175.0 million, respectively, in common stock dividends to Eversource parent.
Changes in fair value of our derivative contracts are recorded as Regulatory Assets or Liabilities, as we recover the costs of these contracts in rates charged to customers. These valuations are sensitive to the prices of energy-related products in future years and assumptions made. We use quoted market prices when available to determine the fair value of financial instruments.
Valuations are sensitive to the prices of energy-related products in future years and assumptions made. Changes in fair value of our derivative contracts are recorded as Regulatory Assets or Liabilities, as we recover the costs or include the benefits of these contracts in rates charged to customers.
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.
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.
PSNH had cash flows provided by operating activities of $321.3 million in 2024, as compared to $32.0 million in 2023.
PSNH had cash flows provided by operating activities of $483.3 million in 2025, as compared to $321.3 million in 2024.
The following items in this executive summary are explained in more detail in this combined Annual Report on Form 10-K: Earnings Overview and Future Outlook: • We earned $811.7 million, or $2.27 per share, in 2024, compared with a loss of $442.2 million, or $1.26 per share, in 2023.
The following items in this executive summary are explained in more detail in this combined Annual Report on Form 10-K: Earnings Overview and Future Outlook: • We earned $1.69 billion, or $4.56 per share, in 2025, compared with $811.7 million, or $2.27 per share, in 2024.
Discounted cash flow valuations incorporate estimates of premiums or discounts, reflecting risk-adjusted profit that would be required by a market participant to arrive at an exit price, using available historical market transaction information.
Discounted cash flow valuations incorporate estimates of premiums or discounts, reflecting risk-adjusted profit that would be required by a market participant to arrive at an exit price, using available historical market transaction information and expectations. Valuations of derivative contracts also reflect our estimates of nonperformance risk, including credit risk.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2024, our regulated companies held collateral (letters of credit or cash) of $15 million from counterparties related to our standard service contracts. As of December 31, 2024, Eversource had $21.4 million of cash posted with ISO-NE related to energy transactions.
Biggest changeAs of December 31, 2025, our regulated companies held collateral (letters of credit or cash) of $21.3 million from counterparties related to our standard service contracts. As of December 31, 2025, Eversource had $38.6 million of cash posted with ISO-NE related to energy transactions.
The Finance Committee of the Board of Trustees is responsible for oversight of the Company's ERM program and enterprise-wide risks as well as specific risks associated with insurance, credit, financing, investments, pensions and overall system security including cyber security.
The Finance and Risk Management Committee of the Board of Trustees is responsible for oversight of the Company's ERM program and enterprise-wide risks as well as specific risks associated with insurance, credit, financing, investments, pensions and overall system security including cyber security.
The findings of the ERM process are periodically discussed with the Finance Committee of our Board of Trustees, as well as with other Board Committees or the full Board of Trustees, as appropriate, including reporting on how these issues are being measured and managed.
The findings of the ERM process are periodically discussed with the Finance and Risk Management Committee of our Board of Trustees, as well as with other Board Committees or the full Board of Trustees, as appropriate, including reporting on how these issues are being measured and managed.
Our interest rate risk is significantly reduced as typically all or most of our debt financings have fixed interest rates. As of December 31, 2024, all of our long-term debt was at a fixed interest rate.
Our interest rate risk is significantly reduced as typically all or most of our debt financings have fixed interest rates. As of December 31, 2025, all of our long-term debt was at a fixed interest rate.
Eversource would have been and remains able to provide that collateral. 59
Eversource would have been and remains able to provide that collateral. 60