What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-14 compared with 2024-02-14 · 139 added, 121 removed, 357 unchanged (42% of the section changed)

9 unchanged sentences

• Aquarion Company (Aquarion), a utility holding company that owns five separate regulated water utility subsidiaries and collectively serves residential, commercial, industrial, and municipal and fire protection customers in parts of Connecticut, Massachusetts and New Hampshire.

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.

6 unchanged sentences

CL&P, NSTAR Electric and PSNH do not report separate business segments.

Eversource has an offshore wind business, which includes 50 percent ownership interests in three offshore wind projects and a tax equity investment in one of the projects.

For further information, see "Offshore Wind Business” below.

Eversource’s previous offshore wind business included 50 percent ownership interests in each of North East Offshore and South Fork Class B Member, LLC.

In the third quarter of 2024, Eversource sold its interest in these entities, and in doing so, sold its interests in the Revolution Wind project, the South Fork Wind project, and the Sunrise Wind project.

Eversource’s current offshore wind business is now comprised only of a noncontrolling tax equity investment in South Fork Wind.

For more information, see "Business Development and Capital Expenditures – Offshore Wind Business" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations .

ELECTRIC DISTRIBUTION SEGMENT

6 unchanged sentences

CL&P's present general rate structure consists of various rate and service classifications covering residential, commercial and industrial services.

CL&P's retail rates include a delivery service component, which includes distribution, transmission, conservation, renewable energy programs and other charges that are assessed on all customers.

Under Connecticut law, all of CL&P's customers are entitled to choose their energy suppliers, while CL&P remains their electric distribution company.

1 unchanged sentence

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.

The rates established by PURA for CL&P are comprised of the following:

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.

The rates established by PURA for CL&P, which are grouped by the customer bill components, are comprised of the following:

Cost of electricity from suppliers based on competitive procurements.

• An electric generation service charge, which recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to competitive energy suppliers.

The generation service charge 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.

The generation service charge is adjusted periodically and reconciled annually in accordance with the policies and procedures of PURA, with any differences refunded to, or recovered from, customers.

Local Delivery:

Cost to build, maintain, repair and operate the distribution grid, including the poles, lines, and meters that deliver power from the substation.

It also includes the cost of resiliency and reliability improvements.

• A distribution charge, which includes a fixed customer charge and a demand and/or energy charge to collect the costs of building and expanding the infrastructure to deliver electricity to customers, as well as ongoing operating costs to maintain the infrastructure.

2 unchanged sentences

The ESI also recovers costs associated with CL&P’s system resiliency program.

The ESI 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.

• A Federally Mandated Congestion Charge (FMCC), which recovers any costs imposed by the FERC as part of the New England Standard Market Design, including locational marginal pricing, locational installed capacity payments, any costs approved by PURA to reduce these charges, as well as other costs approved by PURA.

The FMCC has both a bypassable component and a non-bypassable component, and 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.

• A transmission charge 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 transmission charge is adjusted periodically and reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers.

The ESI is adjusted periodically and reconciled annually in accordance with the policies and procedures of PURA, with any differences refunded to, or recovered from, customers.

In 2023, the state of Connecticut enacted a law that prohibits CL&P’s ESI capital tracking mechanism from being reauthorized in the next general distribution proceeding.

The ESI will therefore remain in place until base distribution rates are adjusted in CL&P’s next general distribution rate proceeding.

• A Competitive Transition Assessment (CTA) charge, assessed to recover stranded costs associated with electric industry restructuring such as various IPP contracts.

The CTA is reconciled annually to actual costs incurred and reviewed by PURA, with any difference refunded to, or recovered from, customers.

Public Benefits:

Cost to support energy programs mandated by the state and federal government for financial assistance and energy efficiency programs, purchasing renewable and carbon-free electricity, and funding solar and electric vehicle incentives.

These costs include costs associated with ISO-NE, costs to avoid congestion on the transmission system, purchase contracts with zero-carbon energy generators (including the Millstone and Seabrook nuclear contracts) and with renewable energy generators, costs for capacity and gas peaker plants, renewable energy credits, and other initiatives required by state law.

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.

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 with no company profit.

• A Systems Benefits Charge (SBC), established to fund expenses associated with various hardship and low-income programs.

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The CAM charge is reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers through an approved adjustment to the following year’s energy conservation spending plan budget.

As required by regulation, CL&P has entered into long-term contracts for the purchase of (i) products from renewable energy facilities, which may include energy, renewable energy certificates, or capacity, (ii) capacity-related contracts with generation facilities, and (iii) contracts for peaking capacity.

Some of these contracts are subject to sharing agreements with UI, whereby CL&P is responsible for 80 percent and UI for 20 percent of the net costs or benefits.

CL&P's portion of the costs and benefits of these contracts will be paid by, or refunded to, CL&P's customers.

Distribution Rate Case :

Transmission:

Cost to maintain high voltage towers and lines, including building, maintaining and operating the regional transmission system that brings electricity from power generators to the local distribution system.

The transmission charge is adjusted periodically and reconciled annually to actual costs incurred, and reviewed by PURA, with any difference refunded to, or recovered from, customers.

Distribution Rate Case and Settlement Agreement :

CL&P's distribution rates were established in an April 2018 PURA-approved rate case settlement agreement with rates effective May 1, 2018, and incremental step adjustments effective May 1, 2019 and May 1, 2020.

CL&P Settlement Agreement :

In accordance with a 2021 settlement agreement, CL&P agreed that its current base distribution rates would be frozen, subject to certain customer credits, until no earlier than January 1, 2024.

2 unchanged sentences

The approval of the settlement agreement satisfied the Connecticut statute of rate review requirements that requires electric utilities to file a distribution rate case within four years of the last rate case.

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.

CL&P Performance Based Rate Making :

11 unchanged sentences

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.

Ten percent of the SS load for 2025 has been procured.

CL&P obtained a full requirements supply contract for its LRS load through June 2024 and intends to purchase 100 percent of full requirements for LRS for the remainder of 2024.

None of the SS load for 2026 has been procured.

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.

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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.

The rates established by the DPU for NSTAR Electric are comprised of the following:

NSTAR Electric'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 rates established by the DPU for NSTAR Electric, which are grouped by the customer bill components, are comprised of the following:

Cost of electricity from suppliers based on competitive procurements.

• A basic service charge that represents the collection of energy costs incurred as a result of providing electric generation service supply to all customers who have not migrated to competitive energy suppliers, including costs related to charge-offs of uncollectible energy costs from customers.

2 unchanged sentences

Basic service costs are reconciled annually, with any differences refunded to, or recovered from, customers.

Cost of grid maintenance and other critical customer services and also includes government-mandated charges.

• A distribution charge, which includes a fixed customer charge and a demand and/or energy charge to collect the costs of building and expanding the distribution infrastructure to deliver electricity to its destination, as well as ongoing operating costs.

10 unchanged sentences

These charges are reconciled annually to actual costs incurred, and reviewed by the DPU, with any difference refunded to, or recovered from, customers.

As approved by the DPU, NSTAR Electric has signed long-term commitments for the purchase of energy from renewable energy facilities.

Distribution Rate Case :

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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 7 percent of its large C&I customers every three months.

NSTAR Electric enters into supply contracts for basic service for three percent of its large C&I customers every three months.

During 2024, NSTAR Electric supplied approximately 14 percent of its overall customer load at basic service rates.

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PSNH charges customers only the amount that it pays generators for producing electricity and does not earn a profit on the cost of electricity.

The rates established by the NHPUC for PSNH are comprised of the following:

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 rates established by the NHPUC for PSNH, which are grouped by the customer bill components, are comprised of the following:

Cost of electricity from suppliers based on competitive procurements.

• A default energy service charge recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to competitive energy suppliers.

The default energy service charge changes 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.

Cost of building, maintaining and operating distribution and transmission systems, as well as state and federally mandated charges that fund financial assistance, energy efficiency and renewable energy programs.

• A distribution charge, which includes kilowatt-hour and/or demand-based charges to recover costs related to the maintenance and operation of PSNH's infrastructure to deliver power to its destination, as well as power restoration and service costs.

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• 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.

• A Stranded Cost Recovery Charge (SCRC), which allows PSNH to recover its stranded costs, including above-market expenses incurred under mandated power purchase obligations, other long-term investments and obligations, and the remaining costs associated with the 2018 sales of its generation facilities.

The transmission charge is reconciled annually to actual costs incurred, and reviewed by the NHPUC, with any difference refunded to, or recovered from, customers.

• A Stranded Cost Recovery Charge (SCRC), which allows PSNH to recover its stranded costs, including above-market expenses incurred under mandated power purchase obligations, recovery of costs of the net metering credit program, a credit for revenues generated by the RGGI program, other long-term investments and obligations, and the remaining costs associated with the 2018 sales of its generation facilities.

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.

1 unchanged sentence

LBR will remain a component of the SBC charge unless and until PSNH has a decoupling or other revenue adjustment mechanism approved by the NHPUC.

The 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.

Distribution Rate Case and Settlement Agreement :

PSNH's distribution rates were established in a 2020 NHPUC-approved rate case settlement agreement with rates effective January 1, 2021.

PSNH was permitted three step increases, effective January 1, 2021, August 1, 2021, and November 1, 2022 to reflect plant additions in calendar years 2019, 2020 and 2021, respectively.

On June 11, 2024, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase effective August 1, 2024, which was approved by the NHPUC on July 31, 2024.

Also on June 11, 2024, PSNH filed an application with the NHPUC to request an increase in permanent base distribution rates, proposed to take effect August 1, 2025.

A decision by the NHPUC on permanent rates is expected by August 1, 2025.

For further information, see "Regulatory Developments and Rate Matters - New Hampshire" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.

The default energy service charge changes semi-annually, the SCRC rate changes annually with the option to change semi-annually beginning in 2023, and the transmission and SBC rates change annually.

These rates are reconciled annually in accordance with the policies and procedures of the NHPUC, with any differences refunded to, or recovered from, customers.

As approved by the NHPUC, PSNH has signed long-term commitments for the purchase of energy from renewable energy facilities.

Distribution Rate Case :

PSNH’s distribution rates were established in a December 2020 NHPUC-approved settlement agreement, with rates effective January 1, 2021.

PSNH was also permitted three step increases, effective January 1, 2021, August 1, 2021, and August 1, 2022, to reflect plant additions in calendar years 2019, 2020 and 2021, respectively.

The NHPUC approved a rate increase effective February 1, 2022 designed to collect $1.1 million dollars annually to fund a reserve account to pay for arrearage forgiveness for customers with past due balances and the New Start Program.

On October 20, 2022, the NHPUC approved the third step adjustment for 2021 plant in service to recover a revenue requirement of $8.9 million, with rates effective November 1, 2022.

The total approved revenue requirement increase was collected over the remainder of the rate year (November 1, 2022 – July 31, 2023).

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.

As required by the NHPUC, PSNH purchased 12.5 percent of its residential and small C&I customer load through direct wholesale market participation for the second half of 2024.

During 2024, PSNH supplied approximately 58 percent of its customer load at default energy service rates while the other 42 percent of its customer load had migrated to competitive energy suppliers.

4 unchanged sentences

Under these arrangements, ISO-NE, a non-profit corporation whose board of directors and staff are independent of all market participants, serves as the regional transmission organization of the New England transmission system.

Wholesale Transmission Rates

Wholesale transmission revenues are recovered through FERC-approved formula rates.

Annual transmission revenue requirements include recovery of transmission costs and include a return on equity applied to transmission rate base.

Transmission revenues are collected from New England customers, including distribution customers of CL&P, NSTAR Electric and PSNH.

The transmission rates provide for an annual true-up of estimated to actual costs.

The financial impacts of differences between actual and estimated costs are deferred for future recovery from, or refund to, transmission customers.

Wholesale Transmission Rates and Transmission Proceedings

CL&P, NSTAR Electric and PSNH wholesale transmission rates are calculated in accordance with a FERC-approved formula ratemaking framework and each utility is required to file an annual update on or before July 31st with resulting rates effective January 1st the following year.

The formula rate framework provides for an annual reconciliation of the prior calendar year actual costs incurred related to our transmission facilities, including an allowed ROE, plus forecasted information through the next rate period.

The financial impacts of differences between actual and estimated costs are deferred for future recovery from, or refund to, transmission wholesale customers.

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.

From time to time, various matters are pending before FERC relating to transmission rates, incentives, interconnections and transmission planning.

Depending on the outcome, any of these matters could materially impact our results of operations and financial condition.

At this time, Eversource cannot predict the ultimate outcome of the matters currently pending before FERC, and the resulting impact on its transmission incentives or planning.

Transmission Rate Base

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On August 9, 2022, the Court issued a decision vacating these MISO FERC decisions and remanded to FERC to reopen the proceedings.

At this time, Eversource cannot predict how and when FERC will address the Court’s findings on the remand of the MISO FERC opinions or any potential associated impact on the NETOs’ four pending ROE complaint cases.

Given the significant uncertainty regarding the applicability of the FERC opinions in the MISO transmission owners' two complaint cases to the NETOs' pending four complaint cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time.

As well, Eversource cannot reasonably estimate a range of loss for any of the four complaint proceedings at this time.

On October 17, 2024, FERC issued an order on the remand of the MISO ROE proceedings.

On February 4, 2025, the MISO transmission owners submitted a petition for review with the Court requesting review of the October 17, 2024 MISO ROE order on remand and a December 19, 2024 notice of denial of rehearing.

On November 13, 2024, the NETOs filed a supplemental brief in their four pending ROE proceedings to explain to FERC that it cannot apply the reasoning and methodologies of the MISO ROE case to the NETOs’ cases due to the entirely different set of facts in the MISO and NETOs ROE proceedings.

Doing so would violate the substance of the Court’s April 14, 2017 order and would violate the legal standard required by the Federal Power Act.

Given the significant uncertainty regarding the applicability of the FERC order in the MISO transmission owners’ two complaint cases to the NETOs’ pending four complaint cases due to the complex differences between the cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaints or subsequent periods at this time and Eversource cannot reasonably estimate any potential range of loss for any of the four complaint proceedings at this time.

The resolution of these proceedings could have a material impact on the financial condition, results of operations, and cash flows.

For further information, see "FERC Regulatory Matters - FERC ROE Complaints" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.

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Yankee Gas distributes natural gas to approximately 254,000 customers in 85 cities and towns in Connecticut.

Total throughput (sales and transportation) in 2023 was approximately 67.1 Bcf for NSTAR Gas, 54.2 Bcf for EGMA, and 56.4 Bcf for Yankee Gas.

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.

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.

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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.

Retail natural gas delivery and supply rates are established by the DPU and the PURA and are comprised of:

• A distribution charge consisting of a fixed customer charge and a demand and/or energy charge that collects the costs of building, maintaining, and expanding the natural gas infrastructure to deliver natural gas supply to its customers.

This also includes collection of ongoing operating costs.

Retail natural gas supply and delivery rates are established by the DPU and the PURA and are comprised of:

• A seasonal cost of gas adjustment clause (CGAC) at NSTAR Gas and EGMA that collects natural gas supply costs, pipeline and storage capacity costs, costs related to charge-offs of uncollected energy costs and working capital related costs.

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Carrying charges on outstanding balances are calculated using Yankee Gas' weighted average cost of capital in accordance with the directives of the PURA.

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.

10 unchanged sentences

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 :

Distribution Rate Cases and Settlement Agreements :

NSTAR Gas distribution rates were established in an October 2020 DPU-approved rate case, with rates effective November 1, 2020.

1 unchanged sentence

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.

EGMA’s distribution rates were established in a DPU-approved October 7, 2020 rate settlement agreement, with rate increases on November 1, 2021 and November 1, 2022, and two rate base resets during an eight-year rate plan, occurring on November 1, 2024 and November 1, 2027.

The first rate base reset occurred on November 1, 2024 and the second will occur November 1, 2027.

Notwithstanding the two distribution rate increases, the two rate base reset provisions, and potential adjustments for qualifying exogenous events, EGMA agreed not to file for an increase or redesign of distribution base rates effective prior to November 1, 2028.

Yankee Gas distribution rates were established in a December 2018 PURA-approved rate case settlement agreement, with rates effective November 15, 2018.

PURA also approved step adjustments effective January 1, 2020 and January 1, 2021.

On November 12, 2024, Yankee Gas filed an application to amend its base distribution rates for effect on November 1, 2025.

A final decision by PURA is expected in October 2025.

Service Quality Metrics :

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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.

In December 2023, the DPU issued an order for this docket.

The DPU will consider and, in some cases, require new processes and analysis for traditional natural gas investments, which may require significant changes to the LDC planning process and business models.

The DPU intends to put policies and structures in place that would protect customers as Massachusetts works to decarbonize the building sector, which may involve subsequent dockets and regulatory proceedings and potentially recasting the role of LDCs in Massachusetts.

The DPU preserved customer choice for energy needs and encouraged further development of decarbonized alternatives, such as the networked geothermal systems that NSTAR Gas is piloting in Framingham, Massachusetts.

At this time, Eversource cannot predict the ultimate outcome of this proceeding, as the Company and other LDCs are seeking formal clarity from the DPU to fully understand the resulting impact to their natural gas businesses and the associated timing of any impacts.

The Company does not believe there is any indication of an inability to recover costs or risk of impairment of our natural gas assets at this time.

Yankee Gas' December 2018 PURA-approved rate case settlement agreement included an accelerated pipeline replacement cost recovery program.

1 unchanged sentence

Yankee Gas files its GSI reconciliation annually on March 1st for rates effective April 1st.

In September 2021, PURA undertook a review of Connecticut natural gas companies’ infrastructure system expansion plan (SEP) to determine if the SEP continues to be in the best interest of the state’s comprehensive energy strategy.

On April 27, 2022, PURA issued an order for the immediate winding down of the SEP by (1) ending the enrollment of new customers in the SEP program and permitting only a specific group of potential customers who have executed a services agreement with a natural gas company on or before a specified date (subsequently approved as August 16, 2022) to qualify for incentives under the current SEP;

(2) directing all surplus non-firm margin to be deferred as a regulatory liability and applied to rate base in a future rate proceeding;

and (3) directing the natural gas companies to cease all outbound and passive marketing regarding the SEP.

On July 15, 2022, Yankee Gas appealed the portion of this order pertaining to the deferral of non-firm margin as a reduction to future rate base.

On October 24, 2023, Yankee Gas informed the Connecticut Superior Court that the parties mutually agreed to resolve the appeal through a stipulation, which clarified that PURA will decide in Yankee Gas’s next gas rate case the ratemaking treatment of the deferred non-firm margin.

Yankee Gas evaluated the prospective impact of this proceeding and does not believe the impact will be material to its future financial position, results of operations and cash flows.

Sources and Availability of Natural Gas Supply

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In Connecticut, an annual WICA reconciliation mechanism reconciles earned WICA revenue to the approved WICA revenue with any differences refunded to, or recovered from, customers.

Distribution Rate Cases :

On August 29, 2022, Aquarion Water Company of Connecticut (AWC-CT) filed an application with PURA to amend its existing rate schedules.

On March 15, 2023, PURA issued a final decision that rejected AWC-CT’s application with PURA, which was subsequently appealed by AWC-CT.

On March 25, 2024, the State of Connecticut Superior Court issued a decision on the appeal and on March 28, 2024, AWC-CT filed an appeal of the Connecticut Superior Court decision.

On July 31, 2024, PURA issued a final decision and increased AWC-CT’s approved revenue requirement by $0.1 million above the amount authorized in the March 15, 2023 decision, which was also subsequently appealed by AWC-CT.

Both appeals are pending.

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.

Sources and Availability of Water Supply

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On occasion, drought declarations are issued for portions of Aquarion’s service territories in response to extended periods of dry weather conditions.

OFFSHORE WIND BUSINESS

Eversource’s offshore wind business includes 50 percent ownership interests in wind partnerships, which collectively hold the Revolution Wind, South Fork Wind and Sunrise Wind projects, and a tax equity investment in South Fork Wind.

The offshore wind projects are being developed and constructed through joint and equal partnerships with Ørsted.

Revolution Wind is a 704 MW offshore wind power project located approximately 15 miles south of the Rhode Island coast, and South Fork Wind is a 130 MW offshore wind power project located approximately 35 miles east of Long Island.

Sunrise Wind is a 924 MW offshore wind facility located 35 miles east of Montauk Point, Long Island.

The completion dates for these projects are subject to federal permitting through BOEM, engineering, state siting and permitting in New York, Rhode Island and Massachusetts and construction schedules.

We are in the process of selling our existing 50 percent interests in the three jointly-owned offshore wind projects.

In connection with the sales process, we have recorded impairments to the carrying value of the offshore wind investments to reflect the investments at estimated fair value.

For more information on these projects, the sales process, and the impairment evaluations, see "Business Development and Capital Expenditures – Offshore Wind Business" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations .

CAPITAL EXPENDITURES

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Environmental Regulation and Matters

We are subject to various federal, state and local environmental legislation and regulation with respect to water quality, air quality, natural/working lands (wetlands, resource areas, habitat), hazardous materials and other environmental matters.

We are subject to various federal, state and local environmental legislation and regulation with respect to water quality, air quality, natural/working lands (wetlands, water resource areas that include land that borders a body of water, plant/animal habitat), hazardous materials and other environmental matters.

Our environmental policy includes formal procedures and a task-scheduling system in place to help ensure environmental compliance.

The Board’s Governance, Environmental and Social Responsibility Committee also provides oversight of climate issues, environmental matters and compliance.

The Governance, Environmental and Social Responsibility Committee of Eversource’s Board of Trustees also provides oversight of climate issues, environmental matters and compliance.

We also identify and address potential environmental risks through our Enterprise Risk Management (ERM) program in addition to rigorous audits of our facilities, vendors, and processes.

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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 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.

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.

Regulatory Impacts of Climate Change:

Global climate change continues to receive increasing focus from the federal and state governments.

The Biden administration has 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 plan calls 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 offer opportunities for Eversource to invest in projects that have the ability to reduce emissions in the region while benefiting our communities and shareholders.

Similarly, some of the states in which we operate have aggressive climate goals and implementation plans.

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.

In response to the 2021 Massachusetts climate legislation calling for increased electrification of the transportation and building sectors, in 2023, Eversource developed an Electric Sector Modernization Plan (ESMP) detailing steps the Company will take over the next five and ten years to help ensure reliability and resiliency while supporting a clean energy future.

Similarly, the Massachusetts “Future of Gas” docket (DPU 20-80) looks to identify ways for natural gas local distribution companies to support the state’s net zero by 2050 climate goal.

These state regulations and related policies may introduce risks and opportunities to our businesses if demands for energy or heating change.

Eversource continually evaluates the evolving regulatory landscape concerning climate change, which could potentially lead to additional requirements and additional rules and regulations that could impact how we operate our businesses.

Potential future environmental statutes and regulations, such as additional greenhouse gas reduction regulations to address global climate change, could impose significant additional costs and there can be no assurance that regulators will approve the recovery of those costs.

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.

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 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.

Under the new administration there is uncertainty about the future of this funding and other clean energy policies, and the potential impact it may have on future projects.

In addition, the states we operate in may respond to the federal policy shift with enhancements to existing clean energy programs, creating additional opportunities.

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.

Potential future environmental statutes, regulations, policies and reporting metrics for rate cases that address climate change could impose significant additional costs and there can be no assurance that regulators will approve the recovery of those costs.

Physical and Transitional Impacts of Climate Change:

Eversource assesses the physical impacts of climate change that are event-driven 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.

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.

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;

• 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 and electric vehicle infrastructure;

• Conducting climate modeling to assess vulnerable regions and infrastructure in order to prioritize hazard mitigation projects;

• 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;

• Investigating emerging technologies such as energy storage and automation programs that improve reliability.

• Implementing programs to address risks that may impact water availability and water quality;

• Evaluating opportunities for our natural gas system and exploring alternative, less carbon-intense, technologies like renewable natural gas and geothermal for heating.

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.

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System improvements are designed to withstand severe weather impacts and include installing new and stronger infrastructure like poles, wires and related system equipment, as well as enhanced year-round tree trimming.

We are reinforcing existing critical facilities to withstand storm surges and all future substations are being “flood hardened” to better protect our system against storm surges associated with the increasing risk of severe weather.

We are reinforcing existing critical facilities to withstand storm surges and future substations are being “flood hardened” to better protect our system against storm surges associated with the increasing risk of severe weather in the states that support this work.

We created our comprehensive emergency preparedness and response plans in partnership with state and community leaders so that when a storm occurs, we can provide customers and municipalities with timely and accurate information, while safely and promptly restoring power.

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 has made a corporate commitment to reduce Scope 1 and 2 GHG emissions from our operations and reach carbon neutrality by 2030.

In December 2023, we submitted an application to the Science Based Target initiative (SBTi) seeking validation of a broader GHG target, which will expand our emission reduction efforts and include indirect Scope 3 sources.

Greenhouse gas emissions from our operations consist primarily 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, operating our facilities and vehicle fleet, and sulfur hexafluoride (SF6) leaks from electric equipment.

To measure our influences on climate change, we quantify and publicly report our operational carbon footprint through a third-party verified GHG emission inventory on an annual basis.

Our initiatives to reduce GHG emissions across our company include improving energy efficiency and expanding the use of renewable energy at our buildings, utilizing alternative fuels and introducing more hybrid vehicles into the company fleet, reducing fugitive emissions of methane and SF6 by replacing leak-prone natural gas pipes, improving maintenance of SF6 electrical equipment, and piloting innovative technologies, such as alternative SF6 electrical equipment.

Our business is also exposed to climate-related transitional risks, such as policy, legal and reputational impacts, and technology and market changes as we enable broad decarbonization of the electrical and building sectors in support of regional policies and targets.

Eversource set a GHG reduction goal in 2019 to reduce Scope 1 and 2 emissions from our operations and reach carbon neutrality by 2030.

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.

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.

Progress towards this target is reported at least annually through a third-party-verified GHG emission inventory.

We are also looking to introduce an expanded target that will place a greater emphasis on the indirect Scope 3 emissions from our customers’ energy use.

An expanded target that aligns with the climate policies and regulations of the states where we operate will be introduced in early 2025.

Our business is also exposed to climate-related transitional impacts, such as policy, legal and reputational impacts and technology and market changes as we enable broad decarbonization of the electrical and building sectors in support of regional policies and targets.

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 clean energy investments help reduce regional emissions while improving shareholder value.

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.

Additionally, as our business transitions to support a low carbon economy, human capital needs will also change with the potential to impact our workforce.

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.

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environmental stewardship;

a safe, diverse and fairly compensated workforce;

a safe and fairly compensated workforce;

and community service and leadership.

Our employees are critical to achieving this mission and we recognize the importance of attracting, retaining and developing our employees.

Our employees are critical to achieving this mission and we recognize the importance of attracting, retaining, and developing the most qualified individuals and ensuring fairness and equal employment opportunity for all.

Leaders at all levels strive to create a workplace where our employees are engaged, empowered, advocate for the customer, work collaboratively, raise ideas for improvement and focus on delivering superior customer experience.

We build employee engagement through continuous communication, developing talent, fostering teamwork and creating a diverse, equitable and inclusive workplace.

We have established metrics and annual goals on our corporate scorecard, including safety performance, talent diversity and employee engagement, that drive accountability for progress across all areas of the business.

We build employee engagement through continuous communication, talent development, and fostering teamwork.

We have established metrics and annual goals on our corporate scorecard, including safety performance, talent management and employee engagement, that drive accountability for progress across the business.

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.

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We provide safety training and perform field safety job observations of both internal and contractor crews with a focus on high-energy hazards.

We use metrics such as Eversource Corporate Days Away Restricted Time (DART) and High Energy Field Observations, among others, to monitor safety performance.

We use metrics such as Days Away Restricted Time (DART) and High Energy Field Observations, among others, to monitor safety performance.

Our DART safety performance was 0.76 in 2024, measured by days away, restricted or transferred per 100 workers, using the DART-OSHA method of measurement.

Diversity, Equity & Inclusion.

Our commitment to Diversity, Equity & Inclusion (DEI) is critical to building a diverse, empowered and engaged team that delivers superior service safely to our customers.

A diverse workforce and inclusive culture contribute to our success and sustainability by driving innovation and creating trusted relationships with our employees, customers, suppliers, and community partners.

We continue to identify and support many programs and agencies that address disparities in our communities and beyond.

We also remain committed to developing a workforce that fully reflects the diversity of the people and communities we serve.

Our hiring practices emphasize inclusion, and we encourage employees to embrace different people, perspectives, and experiences in our workplace and within our communities.

Additionally, our leadership behaviors underscore the importance of creating inclusive teams, where employees’ voices and contributions are essential to delivering superior customer service.

Eversource continues to develop a diverse workforce and has DEI goals and initiatives for diversity in leadership promotions and new hires, diverse external hires, number of diverse applicants for jobs, key talent, workforce representation including female employees, diverse employees, and veteran hires, leadership engagement, community support and supplier spending.

Eversource drives accountability for DEI progress throughout the company and executive compensation is linked to meeting these goals.

We sustained our successful drive to increase workforce diversity in 2023 with 55.9% of our external hires being women and/or people of color and 48.1% percent of new hires and promotions into leadership roles being women and/or people of color.

Eversource’s executive leadership team promotes and supports DEI by building and leading diverse, inclusive work teams with high engagement.

Leaders are committed to growing a pipeline of diverse talent, leveraging multiple perspectives to improve customer service, using diverse suppliers, and engaging with multicultural organizations in our communities.

Our DEI council, business resource groups, and cross-functional pro-

equity advisory team, which developed equity guidelines and began to implement justice and equity training to all employees starting in 2022 and continuing into 2024, provide our leaders with valuable feedback on the impact of our DEI and environmental justice efforts.

Eversource's Board of Trustees is committed to diversity, equity and inclusion and receives regular monthly progress updates.

We believe an engaged workforce and culture of respect contribute to our success and sustainability by driving innovation and creating trusted relationships with our employees, customers, suppliers, and community partners.

We support and continue to seek to identify many programs and agencies that address the specific challenges and particular issues facing each of the communities we serve.

We are committed to merit-based hiring practices that emphasize recruiting the most qualified individuals, ensuring fairness and equal employment opportunity for all candidates, and we encourage our employees to embrace different perspectives and experiences in our workplace and within our communities.

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 Business Resource Groups provide our leaders with valuable feedback on the impact of our decisions on workforce engagement and job satisfaction.

Eversource's Board of Trustees also is committed to overseeing a high-performing and engaged workforce at Eversource.

The Board receives regular monthly progress updates on human capital and employee engagement activities.

The Corporate Governance, Environmental and Social Responsibility Committee of the Board of Trustees is responsible for the oversight of environmental, human capital management and social responsibility strategies, programs, and policies.

The Board of Trustees seeks diversity in gender, race, ethnicity and personal background when considering Trustee candidates.

The Board of Trustees seeks a diversity of experiences and professional perspectives when considering Trustee candidates.

Compensation, Health and Wellness Benefits.

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Talent Development, Training Programs and Education Opportunities.

Strategic workforce plans are developed every year as part of the annual business planning process to address immediate and long-range needs and to ensure that Eversource acquires, develops and retains diverse, capable talent.

Eversource supports and develops its employees through training and development programs that build and strengthen employees’ leadership and skill set.

Strategic workforce plans are developed every year as part of the annual business planning process to address immediate and long-range resource needs and to ensure that Eversource acquires, develops, and retains the most qualified individuals.

We provide employees with education and experiences that broaden the reach of our brand through our Employee Value Proposition, the messaging that Eversource provides to staff, investors, customers and job candidates regarding our commitment to our values, rewards and recognition, and company culture of respect and engagement .

Employee development programs are aligned to our strategic workforce plan to support succession within all levels of the organization.

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Eversource and our employees support many nonprofit organizations and programs that make a positive difference in the lives of our customers and the communities that we serve.

The Eversource Foundation provides grants to charitable organizations that help to make broad, meaningful, and sustainable change, with a focus on environmental justice and historically marginalized communities.

The Eversource Foundation provides grants to charitable organizations that help to make broad, meaningful, and sustainable change for the communities we serve.

Our employees also lend their time and talents to volunteer with charitable organizations that address local high-priority concerns and needs.

Our goal at Eversource is to lend a hand to organizations that really make a difference in the communities where we live and work.

See Item 11, Executive Compensation , included in this Annual Report on Form 10-K, as well as our 2022 Sustainability Report and our 2022 Diversity, Equity and Inclusion Report located on our website, for more detailed information regarding our human capital programs and initiatives.

See our 2023 Sustainability Report and our 2023 Diversity, Equity and Inclusion Report located on our website, for more detailed information regarding our human capital programs and initiatives.

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.

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Information contained on the Company's website or that can be accessed through the website is not incorporated into and does not constitute a part of this Annual Report on Form 10-K.

Printed copies of these reports may be obtained free of charge by writing to our Investor Relations Department at Eversource Energy, 107 Selden Street, Berlin, CT 06037.

Printed copies of these reports may be obtained free of charge by writing to our Investor Relations Department at Eversource Energy, 247 Station Drive, Westwood, MA 02090.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business