What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-17 compared with 2025-02-14 · 557 added, 481 removed, 2798 unchanged (27% of the section changed)

54 unchanged sentences

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 14, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 17, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

31 unchanged sentences

• We made inquiries of management, including legal counsel, and obtained the regulatory orders and analysis from management that support the probability of recovery in rates for regulatory assets to assess management’s assertion that amounts are probable of recovery.

Investments in Unconsolidated Affiliates – Impact of Offshore Wind Investment Divestiture - Refer to Note 6 to the Financial Statements

Offshore Wind Contingent Liability – Impact of Offshore Wind Investment Divestiture - Refer to Notes 6 and 13G to the Financial Statements

Critical Audit Matter Description

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

Eversource’s offshore wind business continues to hold a noncontrolling tax equity investment in the South Fork Wind project through a 100 percent ownership in the Class A shares of South Fork Wind Holdings, LLC.

Upon sale, Eversource recorded a loss of approximately $524 million.

As part of the sale, Eversource agreed to make certain post-closing purchase price adjustment payments, which could further impact the final purchase price.

The Company recorded a liability of $365 million reflecting its estimate of the future obligations under the sale terms, which primarily include a cost overrun sharing obligation, an expected obligation to maintain the buyer’s internal rate of return and obligations for other future costs.

In 2024, Eversource sold its interests in the Revolution Wind, South Fork Wind, and Sunrise Wind projects, while retaining a noncontrolling tax equity investment in South Fork Wind through full ownership of Class A shares in South Fork Wind Holdings, LLC.

As part of the sale, Eversource initially recorded a $365 million liability for post-closing purchase price adjustment obligations, primarily related to cost overrun sharing, maintaining the buyer’s internal rate of return, and other future costs.

Subsequent to the sale, Eversource receives updated reports from project management on the construction status of Revolution Wind, which include revised projections of total construction costs.

The revised cost projections reflect known and quantifiable cost increases.

Based on 2025 developments and other available information, Eversource increased its contingent liability associated with the offshore wind projects in 2025 to reflect changes in cost estimates, expected timing of completion and other purchase price adjustments.

As of December 31, 2025, the contingent liability is $448.2 million and is recorded as a current liability on Eversource’s balance sheet, based upon the timing of expected payments to GIP.

We identified the evaluation of the offshore wind investment divestiture as a critical audit matter because of the extensive effort required to audit the subjective and complex judgments associated with the determination of the loss on sale and related contingent liability.

1 unchanged sentence

Our audit procedures related to the offshore wind investment divestiture included the following, among others:

• We tested the effectiveness of management’s controls over loss considerations including the recording and disclosure of the loss on the offshore wind investments, including estimates and assumptions used to measure the loss.

• We tested the effectiveness of management’s controls over the contingent liability considerations including the recording and disclosure of the loss on the offshore wind investments, including estimates and assumptions used to measure the loss.

We tested the effectiveness of management’s controls over the loss recognition on the investments.

• We evaluated the Company’s disclosures related to the offshore wind transactions in the financial statements.

• We evaluated management’s assumptions utilized in recording the loss on investments.

• We evaluated management’s assumptions utilized in recording the contingent liability on investments.

• We evaluated the sufficiency of the contingent liability based on facts and circumstances that existed as of the reporting date.

• We made inquiries of management and evaluated management’s analysis that supported t he project forecast, the timing of the loss, and the assumptions made in the recording of the loss on investments, including the contingent liability.

/s/ Deloitte & Touche LLP

21 unchanged sentences

Goodwill 4,233,767 3,571,333

Investments in Unconsolidated Affiliates 168,652 660,473

Prepaid Pension and PBOP 1,511,169 1,336,633

13 unchanged sentences

Current Liabilities Held for Sale — 52,593

Offshore Wind Contingent Liability - Current Portion 448,158 15,000

Other Current Liabilities 894,219 853,491

3 unchanged sentences

Regulatory Liabilities 4,273,465 4,032,564

Derivative Liabilities 753,149 —

Asset Retirement Obligations 595,442 590,890

1 unchanged sentence

Long-Term Liabilities Held for Sale — 398,859

Offshore Wind Contingent Liability - Long-Term Portion — 350,000

Other Long-Term Liabilities 1,101,932 773,999

29 unchanged sentences

Interest Expense 1,243,266 1,111,336 855,441

Losses on Offshore Wind Investments 464,019 2,167,000 —

Losses on Offshore Wind 284,000 464,019 2,167,000

Other Income, Net 378,854 410,482 348,069

16 unchanged sentences

Qualified Cash Flow Hedging Instruments 20 20 20

Changes in Unrealized Gains/(Losses) on Marketable Securities — 1,252 ( 1,636 )

Changes in Unrealized Gains on Marketable Securities — — 1,252

Changes in Funded Status of Pension, SERP and PBOP Benefit Plans 5,945 7,245 4,412

9 unchanged sentences

Balance as of January 1, 2023 348,443,855 $ 1,799,920 $ 8,401,731 $ 5,527,153 $ ( 39,421 ) $ ( 216,225 ) $ 15,473,158

Net Income 1,412,394 1,412,394

Net Loss ( 434,721 ) ( 434,721 )

Dividends on Common Shares - $ 2.70 Per Share

1 unchanged sentence

Dividends on Preferred Stock ( 7,519 ) ( 7,519 )

Issuance of Common Shares - $ 5 par value

2,165,671 10,828 189,077 199,905

Capital Stock Expense ( 2,847 ) ( 2,847 )

Long-Term Incentive Plan Activity 1,375 1,375

Issuance of Treasury Shares 1,096,411 57,770 20,543 78,313

Issuance of Treasury Shares for Acquisition of

The Torrington Water Company 925,264 54,830 17,303 72,133

Other Comprehensive Income 5,684 5,684

Balance as of December 31, 2023 349,540,266 1,799,920 8,460,876 4,142,515 ( 33,737 ) ( 195,682 ) 14,173,892

Net Loss ( 434,721 ) ( 434,721 )

Net Income 819,172 819,172

Dividends on Common Shares - $ 2.86 Per Share

1 unchanged sentence

Dividends on Preferred Stock ( 7,519 ) ( 7,519 )

Issuance of Common Shares - $ 5 par value

15,740,294 78,702 921,387 1,000,089

Capital Stock Expense ( 10,642 ) ( 10,642 )

Long-Term Incentive Plan Activity ( 6,557 ) ( 6,557 )

25 unchanged sentences

Pension, SERP and PBOP Income, Net ( 80,628 ) ( 73,564 ) ( 90,706 )

Pension and PBOP Contributions ( 5,915 ) ( 6,860 ) ( 83,148 )

Regulatory Under Recoveries, Net ( 919,359 ) ( 151,548 ) ( 205,294 )

Customer Credits at CL&P related to PURA Settlement Agreement and Storm

Performance Penalty — — ( 72,041 )

Regulatory Over/(Under) Recoveries, Net 13,062 ( 919,359 ) ( 151,548 )

Amortization 835,909 342,864 ( 490,117 )

Cost of Removal Expenditures ( 275,906 ) ( 294,984 ) ( 315,699 )

Payment in 2022 of Withheld Property Taxes — — ( 78,446 )

Losses on Offshore Wind Investments 464,019 2,167,000 —

Losses on Offshore Wind 284,000 464,019 2,167,000

Loss on Pending Sale of Aquarion — 297,000 —

10 unchanged sentences

Purchases of Marketable Securities ( 416,082 ) ( 242,959 ) ( 336,779 )

Payments for Offshore Wind Contingent Liability ( 200,842 ) — —

Investments in Unconsolidated Affiliates ( 701 ) ( 929,688 ) ( 1,680,473 )

Proceeds from Unconsolidated Affiliates 862,713 1,090,662 —

Proceeds from Sales of Offshore Wind Investments — 862,713 1,090,662

Other Investing Activities 30,820 ( 13,365 ) ( 2,897 )

10 unchanged sentences

Net Cash Flows Provided by Financing Activities 311,528 2,336,817 2,869,237

Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash ( 39,110 ) ( 355,334 ) 300,744

Cash, Cash Equivalents and Restricted Cash - Beginning of Year 166,418 521,752 221,008

Cash, Cash Equivalents and Restricted Cash - End of Year $ 127,308 $ 166,418 $ 521,752

Net Increase/(Decrease) in Cash and Restricted Cash 118,937 ( 39,110 ) ( 355,334 )

Cash and Restricted Cash - Beginning of Year 127,308 166,418 521,752

Cash and Restricted Cash - End of Year $ 246,245 $ 127,308 $ 166,418

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

65 unchanged sentences

Unbilled Revenues 63,508 59,759

Materials, Supplies and REC Inventory 217,316 156,467

Materials and Supplies 133,908 217,316

Regulatory Assets 265,175 638,529

14 unchanged sentences

Accounts Payable to Affiliated Companies 141,610 137,150

Obligations to Third Party Suppliers 63,840 75,753

Accrued Taxes 165,362 41,654

Regulatory Liabilities 417,498 124,122

44 unchanged sentences

Qualified Cash Flow Hedging Instruments ( 26 ) ( 27 ) ( 26 )

Changes in Unrealized Gains/(Losses) on Marketable Securities — 42 ( 56 )

Changes in Unrealized Gains on Marketable Securities — — 42

Other Comprehensive (Loss)/Income, Net of Tax ( 26 ) ( 27 ) 16

14 unchanged sentences

Capital Contributions from Eversource Parent 123,500 123,500

Other Comprehensive Loss ( 82 ) ( 82 )

Other Comprehensive Income 16 16

Balance as of December 31, 2023 6,035,205 60,352 3,384,265 2,645,868 185 6,090,670

3 unchanged sentences

Capital Contributions from Eversource Parent 300,000 300,000

Other Comprehensive Income 16 16

Other Comprehensive Loss ( 27 ) ( 27 )

Balance as of December 31, 2024 6,035,205 60,352 3,684,265 2,819,107 158 6,563,882

2 unchanged sentences

Dividends on Common Stock ( 430,000 ) ( 430,000 )

Capital Contributions from Eversource Parent 300,000 300,000

Other Comprehensive Loss ( 26 ) ( 26 )

13 unchanged sentences

Regulatory (Under)/Over Recoveries, Net ( 13,145 ) ( 257,561 ) 157,200

Customer Credits related to PURA Settlement Agreement and Storm Performance Penalty — — ( 72,041 )

Amortization of Regulatory Assets/(Liabilities), Net 649,691 104,446 ( 500,367 )

19 unchanged sentences

Other Financing Activities ( 5,268 ) ( 8,856 ) ( 9,244 )

Net Cash Flows Provided by/(Used In) Financing Activities 284,985 635,297 ( 47,959 )

Net Decrease in Cash and Restricted Cash ( 10,134 ) ( 8,084 ) ( 54,461 )

Net Cash Flows (Used In)/Provided by Financing Activities ( 720,827 ) 284,985 635,297

Net Increase/(Decrease) in Cash and Restricted Cash 86,567 ( 10,134 ) ( 8,084 )

Cash and Restricted Cash - Beginning of Year 2,109 12,243 20,327

61 unchanged sentences

Cash $ 8,302 $ 911

Receivables, Net (net of allowance for uncollectible accounts of $ 114,910 and $ 97,026 as of December 31, 2024 and

2023, respectively)

Receivables, Net (net of allowance for uncollectible accounts of $ 132,561 and $ 114,910 as of December 31, 2025 and 2024, respectively)

616,280 614,563

3 unchanged sentences

Regulatory Assets 978,754 902,770

Derivative Assets 91,011 —

Prepayments and Other Current Assets 90,040 72,986

11 unchanged sentences

Long-Term Debt – Current Portion

300,000 250,000

Accounts Payable 558,227 534,868

1 unchanged sentence

Obligations to Third-Party Suppliers 179,757 163,711

Renewable Portfolio Standards Compliance Obligations 106,399 116,010

Regulatory Liabilities 650,813 436,312

4 unchanged sentences

Regulatory Liabilities 1,702,059 1,643,079

Derivative Liabilities 753,149 —

Other Long-Term Liabilities 401,625 377,462

6 unchanged sentences

Retained Earnings 3,319,768 3,127,105

Accumulated Other Comprehensive (Loss)/Income ( 141 ) 44

Accumulated Other Comprehensive Income/(Loss) 225 ( 141 )

Common Stockholder's Equity 7,558,835 6,915,806

26 unchanged sentences

Net Income $ 630,623 $ 636,353 $ 544,528

Other Comprehensive Loss, Net of Tax:

Other Comprehensive Income/(Loss), Net of Tax:

Changes in Funded Status of SERP Benefit Plan 346 ( 205 ) ( 272 )

Qualified Cash Flow Hedging Instruments 20 20 20

Changes in Unrealized Gains/(Losses) on Marketable Securities — 12 ( 16 )

Other Comprehensive Loss, Net of Tax ( 185 ) ( 240 ) ( 217 )

Changes in Unrealized Gains on Marketable Securities — — 12

Other Comprehensive Income/(Loss), Net of Tax 366 ( 185 ) ( 240 )

Comprehensive Income $ 630,989 $ 636,168 $ 544,288

26 unchanged sentences

Capital Contributions from Eversource Parent 450,000 450,000

Other Comprehensive Loss ( 185 ) ( 185 )

Other Comprehensive Income 366 366

Balance as of December 31, 2025 200 $ — $ 4,238,842 $ 3,319,768 $ 225 $ 7,558,835

11 unchanged sentences

Pension, SERP and PBOP Income, Net ( 39,526 ) ( 36,104 ) ( 41,554 )

Pension Contributions — — ( 15,000 )

Regulatory Under Recoveries, Net ( 271,689 ) ( 141,865 ) ( 88,220 )

Regulatory Over/(Under) Recoveries, Net 116,288 ( 271,689 ) ( 141,865 )

Amortization of Regulatory Assets, Net 107,553 130,869 16,150

Cost of Removal Expenditures ( 66,611 ) ( 59,187 ) ( 68,290 )

Payment in 2022 of Withheld Property Taxes — — ( 76,311 )

Other ( 116,923 ) ( 25,876 ) ( 2,123 )

12 unchanged sentences

Cash Dividends on Preferred Stock ( 1,960 ) ( 1,960 ) ( 1,960 )

Increase/(Decrease) in Notes Payable 138,935 365,847 ( 162,500 )

(Decrease)/Increase in Notes Payable ( 259,337 ) 138,935 365,847

Capital Contributions from Eversource Parent 450,000 775,000 234,900

3 unchanged sentences

Net Cash Flows Provided by Financing Activities 597,540 862,002 340,022

Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash ( 13,762 ) ( 322,508 ) 327,114

Cash, Cash Equivalents and Restricted Cash - Beginning of Year 22,785 345,293 18,179

Cash, Cash Equivalents and Restricted Cash - End of Year $ 9,023 $ 22,785 $ 345,293

Net Increase/(Decrease) in Cash and Restricted Cash 16,921 ( 13,762 ) ( 322,508 )

Cash and Restricted Cash - Beginning of Year 9,023 22,785 345,293

Cash and Restricted Cash - End of Year $ 25,944 $ 9,023 $ 22,785

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

83 unchanged sentences

Accounts Payable to Affiliated Companies 45,277 45,141

Obligations to Third-Party Suppliers 37,584 1,314

Accrued Interest 35,224 29,062

Regulatory Liabilities 118,443 121,058

40 unchanged sentences

Net Income $ 269,354 $ 214,883 $ 195,659

Other Comprehensive Income/(Loss), Net of Tax:

Changes in Unrealized Gains/(Losses) on Marketable Securities — 73 ( 96 )

Other Comprehensive Income/(Loss), Net of Tax — 73 ( 96 )

Other Comprehensive Income, Net of Tax:

Changes in Unrealized Gains on Marketable Securities — — 73

Other Comprehensive Income, Net of Tax — — 73

Comprehensive Income $ 269,354 $ 214,883 $ 195,732

6 unchanged sentences

Comprehensive

Income/(Loss) Total

(Loss)/Income Total

Stockholder's

4 unchanged sentences

Capital Contributions from Eversource Parent 400,000 400,000

Other Comprehensive Loss ( 96 ) ( 96 )

Other Comprehensive Income 73 73

Balance as of December 31, 2023 301 — 1,698,134 655,785 — 2,353,919

2 unchanged sentences

Capital Contributions from Eversource Parent 200,000 200,000

Other Comprehensive Income 73 73

Balance as of December 31, 2024 301 — 1,898,134 808,668 — 2,706,802

15 unchanged sentences

Pension, SERP and PBOP Income, Net ( 8,915 ) ( 8,759 ) ( 10,484 )

Regulatory (Under)/Over Recoveries, Net ( 227,943 ) ( 273,472 ) 53,181

Regulatory Over/(Under) Recoveries, Net 10,952 ( 227,943 ) ( 273,472 )

Amortization of Regulatory Assets/(Liabilities), Net 68,168 136,113 ( 16,343 )

55 unchanged sentences

Eversource holds equity ownership interests that are not consolidated and are accounted for under the equity method.

In the third quarter of 2024, Eversource sold its 50 percent equity ownership interests in three offshore wind projects that had been accounted for under the equity method.

During 2024, Eversource sold its 50 percent ownership interests in three offshore wind projects that had been accounted for under the equity method.

See Note 6, “Investments in Unconsolidated Affiliates,” for further information.

5 unchanged sentences

As of December 31, 2025 and 2024, Eversource's carrying amount of goodwill was $ 4.23 billion and $ 3.57 billion, respectively.

Eversource performs an assessment for possible impairment of its goodwill at least annually.

Eversource completed its annual goodwill impairment assessment for each of its reporting units as of October 1, 2024, and performed an interim goodwill impairment test in the fourth quarter of 2024.

Eversource recorded a goodwill impairment charge of $ 297 million in 2024 as a result of the likely sale of Aquarion at a loss.

See Note 25, "Goodwill," for further information.

The assets and liabilities of the Aquarion water distribution business, including remaining goodwill of $ 662.5 million, met the criteria to be classified as held for sale as of December 31, 2024.

Unless otherwise specified, the amounts and information in the notes presented do not include assets and liabilities that have been reclassified as held for sale.

See Note 24, "Assets Held for Sale," for further information.

Eversource performs an assessment for possible impairment of its goodwill at least annually and determined that no impairment existed in 2025.

Eversource recorded a goodwill impairment charge of $ 297 million in the fourth quarter of 2024 as a result of the likely sale of Aquarion at a loss.

As of December 31, 2024, the assets and liabilities of the Aquarion water distribution business, including remaining goodwill of $ 662.5 million, met the criteria to be classified as held for sale.

Unless otherwise specified, the amounts and information in the notes presented as of and for the year ended December 31, 2024 did not include assets and liabilities that were classified as held for sale.

As of December 31, 2025, the criteria to be classified as held for sale was no longer met and Aquarion’s assets and liabilities, including goodwill, were reclassified as held and used on the Eversource balance sheet as of December 31, 2025.

See Note 24, "Assets Held for Sale," and Note 25, "Goodwill," for further information.

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

4 unchanged sentences

Additionally, the ASU requires entities to disclose how the CODM assesses segment performance and allocates resources, among certain other required disclosures.

Furthermore, current annual disclosures will be required in interim periods.

Furthermore, disclosures are required in interim periods.

The modified disclosures are included in Note 23, “Segment Information.”

On January 1, 2026, the Company prospectively adopted ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures , which requires enhanced income tax disclosures, primarily requiring consistent categories and greater detailed disclosure information in the tax rate reconciliation as well as income taxes paid disaggregated by jurisdiction.

The modified disclosures are included in Note 12, “Income Taxes.”

Accounting Standards Issued but Not Yet Adopted :

In September 2025, the Financial Accounting Standards Board issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software, to modernize and clarify the accounting for software costs.

The ASU’s provisions change the criteria for capitalization of software development costs by eliminating consideration of “project development stages” and instead requiring consideration of the probability of software project completion for its intended use.

The new accounting guidance is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted.

Entities are permitted to apply one of three transition approaches:

prospective, modified transition that is based on the status of the project and whether software costs were capitalized before the date of adoption, or retrospective.

Eversource is currently reviewing the requirements of ASU 2025-06.

Cash includes cash on hand.

7 unchanged sentences

This model is based on expected losses and results in the recognition of estimated expected credit losses, including uncollectible amounts for both billed and unbilled revenues, over the life of the receivable at the time a receivable is recorded.

The allowance for uncollectible accounts is determined based upon a variety of judgments and factors, including an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category.

The allowance for uncollectible accounts is determined based upon various judgments and factors, including an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category.

Factors in determining credit loss include historical collection, write-off experience, analysis of delinquency statistics, and management's assessment of collectability from customers, including current economic conditions, customer payment trends, the impact on customer bills because of energy usage trends and changes in rates, flexible payment plans and financial hardship arrearage management programs offered to customers, reasonable forecasts, and expectations of future collectability and collection efforts.

28 unchanged sentences

Recoveries Collected 0.7 13.3 14.0 0.6 4.5 5.1 — 3.6 3.6 0.9

Reclassified as Held for Sale (2)

— ( 2.3 ) ( 2.3 ) — — — — — — —

Balance as of December 31, 2024 $ 364.6 $ 191.6 $ 556.2 $ 240.7 $ 38.4 $ 279.1 $ 55.2 $ 59.7 $ 114.9 $ 14.1

4 unchanged sentences

Recoveries Collected 2.1 14.9 17.0 1.5 4.5 6.0 0.1 5.7 5.8 0.7

Decrease due to Assets Held

Reclassified from Held for Sale (2)

— 2.3 2.3 — — — — — — —

2 unchanged sentences

Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to uncollectible energy supply costs.

(2) As of December 31, 2024, the allowance for uncollectible accounts attributable to the Aquarion water distribution business has been reclassified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2023, this balance was recorded within Receivables, Net on the Eversource balance sheet.

(2) As of December 31, 2025 and 2023, the allowance for uncollectible accounts attributable to the Aquarion water distribution business are recorded within Receivables, Net on the Eversource balance sheet.

As of December 31, 2024, this balance was classified as Assets Held for Sale on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.”

2 unchanged sentences

CL&P transferred a portion of its energy efficiency customer loan portfolio to outside lenders in order to make additional loans to customers.

CL&P remains the servicer of the loans and will transmit customer payments to the lenders, with a maximum amount outstanding under this program of $ 70 million.

CL&P remains the servicer of the loans and will transmit customer payments to the lenders, with a maximum amount outstanding under this program of $ 50 million as of December 31, 2025 and $ 70 million as of December 31, 2024.

The amounts of the loans are included in Receivables, Net and Other Long-Term Assets, and are offset by Other Current Liabilities and Other Long-Term Liabilities on CL&P’s balance sheet.

11 unchanged sentences

Total $ 491.6 $ 133.9 $ 210.9 $ 58.9 $ 594.6 $ 217.3 $ 220.6 $ 75.8

As of December 31, 2024, the materials and supplies attributable to the Aquarion water distribution business have been reclassified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2023, these balances were recorded within Materials, Supplies, Natural Gas and REC Inventory on the Eversource balance sheet.

As of December 31, 2024, the materials and supplies attributable to the Aquarion water distribution business were classified as Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these assets were reclassified as materials and supplies on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.”

19 unchanged sentences

Derivative Accounting

Many of the electric and natural gas companies' contracts for the purchase and sale of energy or energy-related products are derivatives.

The electric and natural gas companies enter into contracts to purchase and procure energy and energy-related products for their customers, the costs of which are recoverable from customers in future rates.

The accounting treatment for energy contracts entered into varies and depends on the intended use of the particular contract and on whether or not the contract is a derivative.

Many of the electric and natural gas companies' contracts for the purchase and sale of energy or energy-related products for delivery to customers in the normal course of business are derivatives that are designated as “normal purchases” or “normal sales” and follow accrual accounting.

If a contract is a derivative and the energy is settled in the energy market rather than delivered to customers, it is recorded at fair value on the balance sheet.

The application of derivative accounting is complex and requires management judgment in the following respects:

2 unchanged sentences

The judgment applied in the election of a contract as normal (and resulting accrual accounting) includes the conclusion that it is probable at the inception of the contract and throughout its term that it will result in physical delivery of the underlying product and that the quantities will be used or sold by the business in the normal course of business.

If facts and circumstances change and management can no longer support this conclusion, then a contract cannot be considered normal, accrual accounting is terminated, and fair value accounting is applied prospectively.

circumstances change and management can no longer support this conclusion, then a contract cannot be considered normal, accrual accounting is terminated, and fair value accounting is applied prospectively.

The fair value of derivative contracts is based upon the contract terms and conditions and the underlying market price or fair value per unit.

When quantities are not specified in the contract, the Company determines whether the contract has a determinable quantity by using amounts referenced in default provisions and other relevant sections of the contract.

The fair values of derivative contracts are estimated based on the best market information available, including valuation models that estimate future energy and energy-related prices.

Fair value estimates involve assumptions, uncertainties and matters of judgment.

The fair value of derivative assets and liabilities with the same counterparty are offset and recorded as a net derivative asset or liability on the balance sheets.

Regulatory assets or regulatory liabilities are recorded to offset the fair values of these derivative contracts related to energy and energy-related products, as contract settlements are recovered from, or refunded to, customers in future rates.

All changes in the fair value of these derivative contracts are recorded as regulatory assets or liabilities and do not impact net income.

All changes in the fair value of these derivative contracts are recorded as regulatory assets or liabilities on the balance sheets and do not impact net income.

For further information regarding derivative contracts, see Note 4, "Derivative Instruments," to the financial statements.

10 unchanged sentences

The average rate is applied to average eligible CWIP amounts to calculate AFUDC.

As part of the annual FERC Transmission Formula Rate protocols process, the AFUDC calculation methodology utilized in formula transmission rates was updated effective January 1, 2025.

This calculation methodology resulted in an adjustment to the AFUDC equity and AFUDC debt amounts recognized on the statement of income in the third quarter of 2025 in accordance with the AFUDC policy.

AFUDC costs and the weighted-average AFUDC rates were as follows:

26 unchanged sentences

19.9 51.9 15.5

Investment Income/(Loss) 0.6 ( 4.9 ) 1.9

Investment (Loss)/Income ( 5.4 ) 0.6 ( 4.9 )

Interest Income 125.5 138.2 94.2

15 unchanged sentences

The non-service related components of pension, SERP and PBOP benefit income/expense, after capitalization or deferral, are presented as non-operating income and recorded in Other Income, Net on the statements of income.

(2) Equity in Earnings of Unconsolidated Affiliates includes $ 23.4 million of pre-tax income recorded at Eversource in the second quarter of 2024 from Eversource’s wind equity method investment, North East Offshore, as a result of a vendor settlement agreement payment received by the joint venture.

(2) Equity in Earnings of Unconsolidated Affiliates includes $ 23.4 million of pre-tax income recorded at Eversource in the second quarter of 2024 from Eversource’s previously-held wind equity method investment, North East Offshore, as a result of a vendor settlement agreement payment received by the joint venture.

In the third quarter of 2024, Eversource sold its equity method investments in three offshore wind projects.

1 unchanged sentence

Liquidation proceeds in excess of the carrying value were recorded in 2023 within Other in the table above.

For the year ended December 31, 2022, pre-tax income of $ 12.2 million associated with the renewable energy fund investment was included in Equity in Earnings of Unconsolidated Affiliates within Other Income, Net in the table above.

See Note 6, “Investments in Unconsolidated Affiliates,” for further information on the 2024 sales of the offshore wind investments and the 2023 liquidation of the renewable energy fund.

10 unchanged sentences

2025 2024 2023

Cash Paid/(Received) During the Year for:

Cash Paid During the Year for:

Interest, Net of Amounts Capitalized $ 1,182.6 $ 1,014.4 $ 783.2

Income Taxes ( 69.6 ) 39.2 77.9

Non-Cash Investing Activities:

6 unchanged sentences

Electric PSNH

Cash Paid/(Received) During the Year for:

Cash Paid During the Year for:

Interest, Net of Amounts Capitalized $ 208.4 $ 232.4 $ 83.9 $ 216.8 $ 215.1 $ 78.4 $ 176.8 $ 182.8 $ 62.8

Income Taxes ( 47.4 ) 118.7 ( 36.0 ) ( 44.1 ) 31.3 ( 59.9 ) 117.6 23.8 58.3

Non-Cash Investing Activities:

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Restricted cash included in Marketable Securities represents money market funds held in restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations.

Eversource’s restricted cash also includes an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley established under the terms of the EGMA 2020 settlement agreement.

This restricted cash held in escrow accounts included $ 20.0 million recorded as short-term in Special Deposits as of both December 31, 2024 and December 31, 2023, and $ 5.9 million and $ 14.1 million recorded in Other Long-Term Assets on the balance sheets as of December 31, 2024 and December 31, 2023, respectively.

Eversource’s restricted cash also includes an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley established under the terms of an EGMA 2020 settlement agreement.

This restricted cash held in escrow accounts included $ 21.4 million and $ 20.0 million recorded as short-term in Special Deposits as of December 31, 2025 and December 31, 2024, respectively and $ 5.9 million recorded in Other Long-Term Assets on the balance sheets as of December 31, 2024.

Related Parties

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These amounts have been eliminated in consolidation on the Eversource financial statements.

Included in the CL&P and PSNH balance sheets as of December 31, 2024 and 2023 were Notes Payable to Eversource Parent.

Included in the PSNH balance sheets as of December 31, 2025 and 2024 and the CL&P balance sheet as of December 31, 2024 were Notes Payable to Eversource Parent.

These amounts have been eliminated in consolidation on the Eversource financial statements.

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The regulated companies' financial statements reflect the effects of the rate-making process.

The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, plus a return on investment.

The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, including a return on investment.

The application of accounting guidance for rate-regulated enterprises results in recording regulatory assets and liabilities.

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Regulatory Tracking Mechanisms 1,573.8 206.5 705.6 93.2 1,781.6 507.7 650.0 162.8

Benefit Costs 967.4 168.8 293.6 65.6 1,117.3 197.4 336.7 79.3

Income Taxes, Net 1,044.5 546.1 161.5 23.3 968.4 521.0 145.4 20.7

Benefit Costs 992.8 173.7 300.0 61.7 967.4 168.8 293.6 65.6

Derivative Contracts 753.2 0.1 753.1 — 57.2 57.2 — —

Securitized Stranded Costs 306.1 — — 306.1 349.3 — — 349.3

Cost of Removal 262.5 — 8.1 — 198.4 — 8.5 —

Goodwill-related 230.4 — 197.8 — 247.2 — 212.3 —

Asset Retirement Obligations 162.8 44.2 84.6 5.4 150.2 41.2 78.3 5.1

Derivative Liabilities 57.2 57.2 — — 120.9 120.9 — —

Environmental Remediation Costs 136.1 — — — 116.2 — — —

EGMA Acquisition and Integration Costs 82.3 — — — — — — —

Other Regulatory Assets 189.9 19.5 92.0 3.0 195.4 58.5 109.2 3.7

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Total Long-Term Regulatory Assets $ 5,718.6 $ 1,716.2 $ 1,823.5 $ 841.2 $ 4,881.0 $ 1,687.0 $ 1,204.3 $ 892.4

As of December 31, 2024, the Regulatory Assets attributable to the Aquarion water distribution business have been reclassified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2023, these balances were recorded within Regulatory Assets on the Eversource balance sheet.

As of December 31, 2024, the Regulatory Assets attributable to the Aquarion water distribution business were classified as Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these assets were reclassified as Regulatory Assets on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.”

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In addition to storm restoration costs, CL&P and PSNH are each allowed to recover pre-staging storm costs.

Management believes all storm costs deferred were prudently incurred and meet the criteria for specific cost recovery in Connecticut, Massachusetts and New Hampshire, and that recovery from customers is probable through the applicable regulatory recovery processes.

Each electric utility company either recovers a carrying charge on its deferred storm cost regulatory asset balance or the regulatory asset balance is included in rate base.

Management believes storm costs deferred were prudently incurred and meet the criteria for specific cost recovery in Connecticut, Massachusetts and New Hampshire, and that recovery from customers is probable through the applicable regulatory recovery processes.

For CL&P, under the current regulatory construct, the unamortized regulatory asset balance earns a return once authorized for recovery in rates.

NSTAR Electric recovers a carrying charge on its deferred storm cost regulatory asset balance.

PSNH earns a return on the regulatory asset balance.

Multiple tropical and severe storms over the past several years have caused extensive damage to Eversource’s electric distribution systems resulting in significant numbers and durations of customer outages, along with significant pre-staging costs.

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CL&P, NSTAR Electric and PSNH are seeking approval of their deferred storm restoration costs through the applicable regulatory recovery process.

As part of CL&P’s October 1, 2021 settlement agreement, CL&P agreed to freeze its current base distribution rates (including storm costs) until no earlier than January 1, 2024.

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.

On December 31, 2024, CL&P filed a supplement to its March 2024 prudency review application to request that PURA evaluate the prudence of its costs for nine additional catastrophic storms and two additional pre-staging events for the period January 1, 2022 through January 31, 2023 totaling approximately $ 173 million.

Although we cannot predict the ultimate outcome of this matter, we continue to believe these deferred storm restoration costs were prudently incurred and are probable of recovery.

On July 10, 2025, CL&P filed a second supplement to its March 2024 prudency review application to request that PURA evaluate the prudence of its costs for ten additional catastrophic storms for the period February 1, 2023 through December 31, 2023 totaling approximately $ 171 million.

On July 25, 2025, CL&P filed a third supplement in this application to include carrying charges calculated at the weighted average cost of capital on the deferred storm costs totaling $ 246 million, which reflects CL&P’s actual financing costs on the unpaid storm costs from the date the deferred storm costs first began to accrue through May 2025.

These carrying charges have not been deferred on the balance sheet.

On December 13, 2025, PURA opened a new proceeding for the prudency determination of CL&P’s 2018 to 2023 storm costs either by a settled or litigated process and a separate future docket will be needed to consider CL&P’s application to issue rate reduction bonds for the securitization of approved storm costs.

A final decision is expected on or about July 29, 2026.

Although we cannot predict the ultimate outcome of these storm proceedings, we continue to believe these deferred storm restoration costs were prudently incurred and are probable of recovery.

CL&P’s storm events include the August 4, 2020 Tropical Storm Isaias, which resulted in deferred storm restoration costs of approximately $ 232 million at CL&P as of December 31, 2025.

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Any difference between the allowed level of distribution revenue and the actual amount realized during a 12-month period is adjusted through rates in the following period.

Income Taxes, Net:

The tax effect of temporary book-tax differences (differences between the periods in which transactions affect income in the financial statements and the periods in which they affect the determination of taxable income, including those differences relating to uncertain tax positions) is accounted for in accordance with the rate-making treatment of the applicable regulatory commissions and accounting guidance for income taxes.

Differences in income taxes between the accounting guidance and the rate-making treatment of the applicable regulatory commissions are recorded as regulatory assets.

As these assets are offset by deferred income tax liabilities, no carrying charge is collected.

The amortization period of these assets varies depending on the nature and/or remaining life of the underlying assets and liabilities.

For further information regarding income taxes, see Note 12, "Income Taxes," to the financial statements.

Benefit Costs:

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The electric transmission companies' rates provide for an annual true-up of estimated to actual costs, which include pension and PBOP expenses as allowed by FERC.

Income Taxes, Net:

Differences in income taxes between the accounting guidance and the rate-making treatment of the applicable regulatory commissions are recorded as regulatory assets.

As these assets are offset by deferred income tax liabilities, no carrying charge is collected.

The amortization period of these assets varies depending on the nature and/or remaining life of the underlying assets and liabilities.

For further information regarding income taxes, see Note 12, "Income Taxes," to the financial statements.

Derivative Contracts:

For the regulated companies, regulatory assets (for losses) or regulatory liabilities (for gains) are recorded to offset the fair value of derivative contracts used to purchase energy and energy-related products that will be recovered from or refunded to customers in future rates.

These regulatory assets and liabilities are excluded from rate base and contract costs are being recovered in energy supply rates over the duration of the contracts.

See Note 4, "Derivative Instruments," to the financial statements for further information on these contracts.

Securitized Stranded Costs:

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For further information, see Note 10, "Rate Reduction Bonds and Variable Interest Entities," to the financial statements.

Cost of Removal:

Eversource's regulated companies currently recover amounts in rates for future costs of removal of plant assets over the lives of the assets.

The estimated cost to remove utility assets from service is recognized as a component of depreciation expense, and the cumulative amount collected from customers but not yet expended is recognized as a regulatory liability.

Expended removal costs that exceed amounts collected from customers are recognized as regulatory assets, as they are probable of recovery in future rates.

Goodwill-related:

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These costs are being recovered over the life of the underlying property, plant and equipment.

Derivative Liabilities:

Regulatory assets are recorded as an offset to derivative liabilities and relate to the fair value of contracts used to purchase energy and energy-related products that will be recovered from customers in future rates.

These assets are excluded from rate base and are being recovered as the actual settlements occur over the duration of the contracts.

See Note 4, "Derivative Instruments," to the financial statements for further information on these contracts.

Environmental Remediation Costs:

Recoverable costs associated with the remediation of environmental sites are recorded as regulatory assets in accordance with PURA and DPU regulation.

These costs do not earn a return.

For further information, see Note 13A, "Commitments and Contingencies - Environmental Matters," to the financial statements.

EGMA Acquisition and Integration Costs:

As part of a DPU-approved settlement agreement on December 1, 2025, acquisition-related and integration costs incurred from the October 2020 acquisition of Columbia Gas of Massachusetts (now Eversource Gas Company of Massachusetts) are allowed for recovery over a 10-year period beginning at the time EGMA’s next base distribution rate change becomes in effect.

These regulatory assets are being carried with no return.

Other Regulatory Assets:

Other Regulatory Assets primarily include environmental remediation costs, certain uncollectible accounts receivable for hardship customers, contractual obligations associated with the spent nuclear fuel storage costs of the CYAPC, YAEC and MYAPC decommissioned nuclear power facilities, removal costs incurred that exceed amounts collected from customers, electric vehicle program costs, certain exogenous property taxes and merger-related costs allowed for recovery, losses associated with the reacquisition or redemption of long-term debt, and various other items.

Other Regulatory Assets primarily include certain uncollectible accounts receivable for hardship customers, contractual obligations associated with the spent nuclear fuel storage costs of the CYAPC, YAEC and MYAPC decommissioned nuclear power facilities, removal costs incurred that exceed amounts collected from customers, electric vehicle program costs, certain exogenous property taxes and merger-related costs allowed for recovery, losses associated with the reacquisition or redemption of long-term debt, and various other items.

Regulatory Costs in Other Long-Term Assets:

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This equity return is not recorded on the balance sheets.

The equity return for PSNH was $ 22.5 million and $ 10.2 million as of December 31, 2024 and 2023, respectively.

These carrying costs will be recovered from customers in future rates.

Regulatory Liabilities:

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AFUDC - Transmission 179.4 72.0 107.4 — 154.8 65.1 89.7 —

Derivative Contract 91.0 — 91.0 — — — — —

Benefit Costs 80.4 8.8 24.5 6.8 69.3 4.5 21.4 3.9

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Total Long-Term Regulatory Liabilities $ 4,273.5 $ 1,445.1 $ 1,702.1 $ 417.4 $ 4,032.6 $ 1,395.9 $ 1,643.1 $ 395.0

As of December 31, 2024, the Regulatory Liabilities attributable to the Aquarion water distribution business have been reclassified to Liabilities Held for Sale on the Eversource balance sheet.

As of December 31, 2023, these balances were recorded within Regulatory Liabilities on the Eversource balance sheet.

As of December 31, 2024, the Regulatory Liabilities attributable to the Aquarion water distribution business were classified as Liabilities Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these liabilities were reclassified as Regulatory Liabilities on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.”

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Eversource's regulated companies are in the process of refunding the EDIT liabilities to customers based on orders issued by applicable state and federal regulatory commissions.

Cost of Removal:

Eversource's regulated companies currently recover amounts in rates for future costs of removal of plant assets over the lives of the assets.

Expended removal costs that exceed amounts collected from customers are recognized as regulatory assets, as they are probable of recovery in future rates.

Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP:

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Regulatory Developments:

CL&P RAM Filing:

On April 17, 2024, PURA issued an interim decision in CL&P’s RAM filing and approved rates for six RAM components, with rates effective July 1, 2024 through April 30, 2025.

The rate approvals include the recovery of NBFMCC and SBC net underrecoveries as of December 31, 2023 of $ 264.9 million and $ 86.2 million, respectively, and the recovery of expected net costs of $ 388.5 million for the NBFMCC and $ 254.4 million for the SBC for the period July 1, 2024 through April 30, 2025.

The NBFMCC rate adjustment is primarily driven by long-term nuclear power purchase agreements required by state policy (Millstone and Seabrook) and the SBC rate adjustment is primarily driven by costs associated with accounts receivable hardship customer protection and the new low-income discount rate effective December 2023.

On August 14, 2024, PURA issued a final decision that approved a further adjustment to the NBFMCC rate to include the recovery of incurred and deferred electric vehicle program costs from 2021 through May 31, 2024 of $ 44.4 million and expected electric vehicle program costs from June 1, 2024 through December 31, 2024 of $ 24.3 million.

The $ 44.4 million, plus $ 5.4 million in carrying costs, will be recovered over a 20-month period of September 1, 2024 through April 30, 2026, and the $ 24.3 million will be recovered over an eight-month period of September 1, 2024 through April 30, 2025.

In addition, PURA approved an incremental $ 3.5 million of 2024 Innovative Energy Solutions program costs and

$ 1.5 million of Connecticut Green Bank program costs over an eight-month period of September 1, 2024 through April 30, 2025.

These amounts are included in the “Public Benefits” portion of the customer bills in Connecticut.

CL&P State Bonding Proceeds:

On July 1, 2025, Connecticut enacted Public Act No.

25-173 (Senate Bill No.

4) (the Act).

The Act authorizes the State of Connecticut to issue up to $ 125 million in new general obligation bonds for each fiscal year 2026 and 2027 to reduce costs of hardship protection measures charged to retail customers, of which 67 percent of each issuance will be allocated to CL&P, and $ 30 million for fiscal year 2026 and $ 20 million for fiscal year 2027 in new general obligation bonds to fund the electric vehicle charging program, of which 80 percent of each issuance will be allocated to CL&P.

On September 19, 2025, CL&P received $ 107.8 million in general obligation bond proceeds from the State of Connecticut, which represent reimbursement of incurred costs that were previously recognized as regulatory assets on CL&P’s balance sheets.

The proceeds received for the reimbursement of hardship costs and for electric vehicle charging program costs were credited against the System Benefits Charge (SBC) and Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) regulatory deferrals on CL&P’s balance sheet as of December 31, 2025.

The proceeds from the state bond funding are presented as a cash inflow in Regulatory Recoveries within operating activities on CL&P’s statement of cash flows.

Yankee Gas Distribution Rate Case:

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

Yankee Gas’s rate application requested approval of a distribution rate increase of $ 209 million, which included a base distribution rate increase of $ 274 million partially offset by a reduction of $ 65 million in the combined Gas System Improvements and System Expansion Reconciliation rates.

In addition, Yankee Gas requested approval to implement a rate credit of $ 37.4 million to offset the PGA rate for non-firm margin credits over one year beginning November 1, 2025.

As part of the rate case, Yankee Gas proposed to implement a multi-year performance-based rate making plan with a four-year initial term from November 1, 2025 to October 31, 2029 that would adjust rates annually and includes performance metrics.

A final decision by PURA is expected in October 2025.

Yankee Gas had subsequently amended its rate application to request approval of a distribution rate increase of $ 193 million.

On September 22, 2025, PURA issued a proposed final (draft) decision in Yankee Gas’s distribution rate case that included a distribution rate increase of $ 55.6 million, effective November 1, 2025.

On November 5, 2025, PURA issued a final decision in the Yankee Gas distribution rate case that included a distribution rate increase of $ 82.2 million and a total distribution revenue requirement of $ 802.2 million, effective November 1, 2025.

The approved revenue requirement includes a previously recorded rate credit of $ 37.4 million plus carrying charges for non-firm margin credits over three years beginning November 1, 2025.

Excluding the rate credit, the distribution rate increase totaled $ 95.7 million.

The final decision also established an authorized net regulatory ROE of 9.32 percent, adopting a 9.48 percent ROE net of certain reductions totaling 16 basis points, and a 53 percent common equity ratio for Yankee Gas’ capital structure.

PURA declined to approve the multi-year performance-based rate making plan that would adjust rates annually as proposed by Yankee Gas.

PURA also implemented an annual cap on contemporaneous cost recovery of aging infrastructure replacement spending in the Distribution Integrity Management Program (DIMP) rate tracking mechanism of $ 139.9 million, in which spending above the annual cap will be deferred for recovery until the next distribution rate case.

The final decision resulted in a net pre-tax loss to earnings of $ 8.5 million in the fourth quarter of 2025, primarily for the write off of certain capitalized employee compensation costs that were disallowed from rate base.

Yankee Gas filed motions to request PURA reconsider the disallowances of these capitalized costs, certain computational errors, and other issues identified in its final decision.

On December 15, 2025, PURA issued a notice of reconsideration to reconsider the final decision.

A final decision on the reconsideration is expected from PURA by March 15, 2026.

NSTAR Electric Distribution Rates :

NSTAR Electric’s performance based regulation (PBR) mechanism allows for an annual adjustment to base distribution rates for inflation, exogenous events and future capital additions based on a historical five-year average of total capital additions.

On September 15, 2025, NSTAR Electric submitted its annual PBR Adjustment filing for a $ 55.1 million increase to base distribution rates and a total base distribution revenue requirement of $ 1.34 billion for effect on January 1, 2026.

The requested base distribution rate increase is comprised of a $ 25.2 million inflation-based adjustment and a $ 29.9 million K-bar adjustment for capital additions based on the difference between the historical five-year average of total capital additions and the base capital revenue requirement.

On December 30, 2025, the DPU approved this filing.

On September 16, 2024, NSTAR Electric submitted its annual PBR Adjustment filing for a $ 55.8 million increase to base distribution rates, for effect on January 1, 2025.

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On December 23, 2024, the DPU approved this filing.

NSTAR Electric submitted its first annual PBR Adjustment filing on September 15, 2023 and on December 26, 2023, the DPU approved a $ 104.9 million increase to base distribution rates effective January 1, 2024.

The base distribution rate increase was comprised of a $ 50.6 million inflation-based adjustment and a $ 54.3 million adjustment for capital additions based on the difference between the historical five-year average of total capital additions and the base capital revenue requirement.

NSTAR Gas Distribution Rates:

NSTAR Gas’ PBR mechanism allows for an annual adjustment to base distribution rates for inflation and exogenous events.

On June 16, 2025, NSTAR Gas submitted its annual PBR Adjustment filing for rates to be effective on November 1, 2025.

On September 11, 2025, NSTAR Gas updated its filing to request approval of a $ 162.6 million increase to base distribution rates and a total base distribution revenue requirement of $ 447.7 million.

The base distribution rate increase is comprised of a $ 10.3 million inflation-based adjustment and, in accordance with the DPU’s final decision in the 2020 NSTAR Gas rate case, a $ 152.3 million rate-base reset to incorporate capital additions for the period 2021 through 2024, which includes the transfer of GSEP revenues totaling $ 107.3 million into base rates, as well as other non-GSEP plant additions totaling $ 45.0 million.

On October 29, 2025, the DPU issued a decision determining that NSTAR Gas was not eligible to increase its distribution rates for the rate base reset because it did not achieve certain performance metrics under its PBR plan, and did not allow the base rate increase of $ 45.0 million for the incorporation of non-GSEP plant additions into base rates.

The decision stated that those investments could be considered for inclusion in base distribution rates in NSTAR Gas’s next base rate proceeding.

The DPU did allow NSTAR Gas to transfer its GSEP revenues through 2024 of $ 107.3 million for recovery through base distribution rates effective November 1, 2025.

The DPU approved the base distribution rate increase of $ 10.3 million for the inflation-based adjustment.

The DPU also approved NSTAR Gas’ mitigation proposal, in which NSTAR Gas paused recovery of the Gas System Enhancement Adjustment Factor (GSEAF) and reduced the current GSEAF to zero on November 1, 2025 in order to align this decrease with the base rate increase and to mitigate November 1, 2025 bill impacts to customers.

NSTAR Gas will begin to recover the remaining 2025 GSEP revenue requirement on May 1, 2026 over 18 months.

On November 4, 2025, NSTAR Gas filed a motion requesting the DPU to reconsider its decision denying the rate base reset citing legal concerns and arguing that the decision will ultimately result in higher costs for customers.

NSTAR Gas also notified the DPU of its intention to file a base distribution rate case.

On December 30, 2025, NSTAR Gas and the Massachusetts Office of the Attorney General reached a joint settlement agreement that allowed for the reinstatement of the rate base reset of $ 45.0 million increase to base distribution rates effective January 1, 2026, for NSTAR Gas to not petition for a rate case with new rates effective December 1, 2026, and for continuation of NSTAR Gas’ PBR program through November 1, 2030.

The settlement agreement also required NSTAR Gas to provide a credit to customers of $ 10.2 million over a ten -month period beginning January 2026 as penalty for its failure to meet three performance metrics as required for eligibility for the rate base reset, pay a $ 2 million concession to the Office of the Attorney General to fund customer energy assistance programs, waive recovery of certain carrying charges, delay recovery of $ 53 million of capital pipeline investments until the next rate case, and provide bill stabilization credit deferrals.

The DPU approved the settlement agreement on January 16, 2026.

The settlement agreement resulted in a pre-tax charge to earnings of $ 12.2 million in the fourth quarter of 2025.

On September 16, 2024, NSTAR Gas submitted its annual PBR Adjustment filing for a $ 12.7 million increase to base distribution rates for effect on November 1, 2024.

On October 30, 2024, the DPU approved this filing.

NSTAR Gas submitted its third annual PBR Adjustment filing on September 15, 2023 and on October 30, 2023, the DPU approved a $ 25.4 million increase to base distribution rates, of which, $ 15.5 million was associated with a base rate adjustment and the remainder for a prior period exogenous cost adjustment, for effect on November 1, 2023.

NSTAR Electric and EGMA Settlement:

On November 3, 2025, EGMA, NSTAR Electric, and the Massachusetts Office of the Attorney General reached a joint settlement agreement that resolved outstanding issues in multiple open Pension Adjustment Mechanism (PAM) dockets and open Resiliency Tree Work (RTW) dockets at NSTAR Electric and allows recovery of transaction and integration costs related to Eversource’s acquisition of EGMA.

Certain PAM and RTW collections are being refunded to NSTAR Electric’s customers over a one -year period beginning January 1, 2026 and the transaction and integration costs of $ 82.3 million will be collected from EGMA customers over a ten-year period from the time of the next EGMA rate case.

The settlement agreement was approved by the DPU on December 1, 2025.

The settlement resulted in a net pre-tax benefit to earnings of $ 64.8 million on the Eversource income statement in the fourth quarter of 2025 ($ 82.3 million benefit at Eversource Parent and Other Companies for the allowed recovery of previously expensed acquisition-related and integration costs and $ 17.5 million charge at NSTAR Electric) and a net increase to regulatory assets on the Eversource balance sheet.

EGMA Distribution Rates:

On November 4, 2024, EGMA submitted a revised filing for its first rate base reset for rates to be effective November 1, 2024, in accordance with an October 7, 2020 EGMA Rate Settlement Agreement approved by the DPU.

On November 4, 2024, EGMA submitted a revised filing for its first rate base reset for rates effective November 1, 2024, in accordance with an October 7, 2020 EGMA Rate Settlement Agreement approved by the DPU.

The compliance filing was ordered by the DPU on October 31, 2024.

The rate base reset occurring on November 1, 2024 adjusted distribution rates to account for capital additions (including the roll-in of GSEP capital additions), depreciation expense, property taxes, and return on rate base for capital additions placed into service through December 31, 2023.

The total revenue requirement calculated for the first rate base reset is an increase to base distribution rates of $ 147.8 million, of which $ 34.0 million is associated with GSEP investments through December 31, 2023.

Under the terms of the Rate Settlement Agreement, EGMA applied a cap on the revenue change effective November 1, 2024, and the amount in excess of the cap will be deferred for recovery through the Local Distribution Adjustment Clause (LDAC) on May 1, 2025, including carrying charges.

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).

Base distribution rates will be increased effective November 1, 2025 to incorporate the $ 62.2 million remaining revenue requirement.

The total revenue requirement calculated for the first rate base reset was an increase to base distribution rates of $ 147.8 million, of which $ 34.0 million is associated with GSEP investments through December 31, 2023.

Under the terms of the Rate Settlement Agreement, EGMA applied a cap on the revenue change effective November 1, 2024, and the amount in excess of the cap was deferred for recovery through the Local Distribution Adjustment Clause (LDAC) on May 1, 2025, including carrying charges.

After adjusting for the cap, 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).

Base distribution rates increased effective November 1, 2025 to incorporate the $ 62.2 million remaining revenue requirement.

On November 7, 2024, the DPU approved this filing.

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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.

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.

The temporary rates are subject to reconciliation based on the outcome of the permanent rate case back to the date when temporary rates took effect.

The permanent rate increase request includes $ 247 million in unrecovered storm costs to be recovered over a five-year period.

As part of the rate case, PSNH proposed to implement a performance-based rate making plan that would adjust rates annually over a four-year term, with a commitment to not file another rate case for at least four years .

The plan includes a revenue-cap formula adjusted for inflation, a supplemental capital adjustment formula to support PSNH’s planned capital infrastructure improvements, an exogenous events recovery mechanism, performance metrics and an earnings sharing mechanism, among others.

If the NHPUC approves the performance-based rate making plan as proposed, the previously established RRA and PPAM rate reconciling mechanisms and lost base revenues will be eliminated.

The NHPUC is permitted up to twelve months to investigate the proposed rates and issue a final order.

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

2023 PSNH Pole Acquisition Approval:

On November 18, 2022, the NHPUC issued a decision that approved a proposed purchase agreement between PSNH and Consolidated Communications, in which, PSNH would acquire both jointly-owned and solely-owned poles and pole assets.

The NHPUC also authorized PSNH to recover certain expenses associated with the operation and maintenance of the transferred poles, pole inspections, and vegetation management expenses through a new cost recovery mechanism, the Pole Plant Adjustment Mechanism (PPAM), subject to consummation of the purchase agreement.

The purchase agreement was finalized on May 1, 2023 for a purchase price of $ 23.3 million.

Upon consummation of the purchase agreement, PSNH established a regulatory asset of $ 16.9 million for operation and maintenance expenses and vegetation management expenses associated with the purchased poles incurred from February 10, 2021 through April 30, 2023 that PSNH is authorized to collect through the PPAM regulatory tracking mechanism.

The establishment of the PPAM regulatory asset resulted in a pre-tax benefit recorded in Amortization expense on the PSNH statement of income in 2023.

Temporary rates were in effect until permanent rates were approved and took 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.

Throughout the course of the proceeding, PSNH amended the requested revenue requirement to account for developments in the case, and arrived at a final proposed rate increase of $ 103 million, which primarily reflects the removal of deferred storm costs that will be addressed in a separate proceeding.

On July 25, 2025, the NHPUC issued its decision on permanent rates and approved a permanent rate increase of $ 100.7 million, effective August 1, 2025, inclusive of the temporary rate increase referenced above.

The total base distribution revenue requirement effective August 1, 2025 is $ 519 million.

The order also established an authorized regulatory ROE of 9.5 percent with a 50 percent common equity ratio for PSNH’s capital structure.

This revenue requirement also contains an alternative regulation revenue requirement adjustment.

This adjustment was part of the NHPUC’s alternative regulatory framework that the NHPUC adopted as an alternative to PSNH’s proposed performance-based regulation plan.

The alternative regulatory framework authorizes formulaic annual revenue adjustments on August 1st of 2026, 2027 and 2028.

PSNH is required to file its next base distribution rate case for effect in June 2029 and committed not to file its next distribution rate case until 2029.

The alternative regulatory framework calculates the annual revenue adjustment using a productivity factor and an adjustment for inflation to provide PSNH with increased revenue for operations.

The framework also contains an exogenous events recovery mechanism for certain unforeseen events out of PSNH’s control and exceeding a specified threshold, a performance metric, and an earnings sharing mechanism where PSNH would have to return 75 percent of all revenue back to customers that exceeds 25 basis points more than the authorized ROE of 9.5 percent.

Consistent with PSNH’s proposal, lost base revenues for both net metering and energy efficiency were eliminated effective August 1, 2025.

To the extent permanent rates exceed the level of temporary rates, the difference will reconcile back to the date that the temporary rates took effect and the company recovers the difference over a twelve-month term.

On August 11, 2025, PSNH filed its recoupment calculation, and on September 10, 2025, the NHPUC issued an order that the recoupment is $ 9.1 million and will be collected through the RRA regulatory tracking mechanism over a one-year period.

As part of the decision, unrecovered storm costs of $ 247 million were removed from the rate proceeding for consideration in a separate proceeding.

Approval of the ultimate amount of storm costs to be recovered is subject to a separate prudency review that was filed in March of 2024 and is being considered by the NHPUC in a separate dedicated docket, which is at this time complete and awaiting the issuance of an order.

Approved storm costs in excess of the amount approved in base rates will be recovered through the Regulatory Reconciliation Adjustment (RRA) regulatory tracking mechanism.

The NHPUC increased the level of storm costs recovered in base rates from $ 12 million to $ 19 million.

The impact of the rate case decision resulted in a pre-tax benefit to earnings of $ 15.6 million at PSNH due primarily to the recoupment and the allowed recovery of other deferrals that will be recovered in the RRA.

The majority of this amount was recorded as a reduction to amortization expense on PSNH’s statement of income in 2025.

On January 30, 2026, the New Hampshire Department of Energy filed a notice of appeal with the New Hampshire Supreme Court challenging certain aspects of the PSNH distribution rate case.

The appeal raises issues regarding the lawfulness of the Company’s alternative regulatory framework, the adequacy of the NHPUC’s findings supporting the approved revenue requirement, and whether the NHPUC sufficiently addressed required regulatory factors in its final order.

The Department of Energy contends that additional findings were necessary to support the final determinations.

On February 6, 2026, the Office of the Consumer Advocate filed a notice of cross-appeal with the New Hampshire Supreme Court challenging other aspects of the rate case decision.

The NHPUC, as the deciding agency, is afforded the highest level of deference by the New Hampshire Supreme Court, and therefore the Department of Energy and the Office of Consumer Advocate will have a very high burden to meet to be successful on appeal.

Eversource is currently evaluating the appeals and will respond consistent with applicable legal and regulatory processes.

PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

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Total Property, Plant and Equipment, Net $ 13,623.3 $ 15,308.9 $ 5,507.7 $ 13,002.2 $ 14,037.8 $ 5,089.9

(1) As of December 31, 2024, the property, plant and equipment balance, net of accumulated depreciation, attributable to the Aquarion water distribution business has been reclassified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2023, this balance was recorded within Property, Plant and Equipment, Net on the Eversource balance sheet.

(1) As of December 31, 2024, the property, plant and equipment balance, net of accumulated depreciation, attributable to the Aquarion water distribution business was classified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these assets were reclassified as Property, Plant and Equipment, Net on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.

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DERIVATIVE INSTRUMENTS

The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers.

The electric and natural gas companies enter into contracts to purchase and procure energy and energy-related products for their customers, which are subject to price volatility.

The costs associated with supplying energy to customers are recoverable from customers in future rates.

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Derivative contracts that are not designated as normal are recorded at fair value as derivative assets or liabilities on the balance sheets.

For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract settlement amounts are recovered from, or refunded to, customers in their respective energy supply rates.

For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract amounts are recovered from, or refunded to, customers in their respective energy supply rates.

The mark to market unrealized losses or gains of these derivative contracts are deferred as regulatory assets (if the derivative is a liability) or as regulatory liabilities (if the derivative is an asset).

The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative Liabilities, with current and long-term portions, on the balance sheets.

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Management Netting (1)

Current Derivative Assets Level 2 $ 14.2 $ ( 0.3 ) $ 13.9 $ 16.4 $ ( 0.5 ) $ 15.9

Long-Term Derivative Assets Level 2 — — — 13.6 ( 0.5 ) 13.1

Current Derivative Liabilities Level 2 ( 71.1 ) — ( 71.1 ) ( 81.9 ) — ( 81.9 )

Long-Term Derivative Liabilities Level 2 — — — ( 68.0 ) — ( 68.0 )

Current Derivative Assets:

CL&P Level 2 $ — $ — $ — $ 14.2 $ ( 0.3 ) $ 13.9

NSTAR Electric Level 3 91.0 — 91.0 — — —

Current Derivative Liabilities:

CL&P Level 2 ( 0.1 ) — ( 0.1 ) ( 71.1 ) — ( 71.1 )

Long-Term Derivative Liabilities:

NSTAR Electric Level 3 ( 753.1 ) — ( 753.1 ) — — —

(1) Amounts represent derivative assets and liabilities that Eversource elected to record net on the balance sheets.

These amounts are subject to master netting agreements or similar agreements for which the right of offset exists.

The business activities that result in the recognition of derivative assets also create exposure to various counterparties.

As of December 31, 2024, CL&P's derivative assets were exposed to counterparty credit risk and contracted with investment grade entities.

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management :

In accordance with Massachusetts clean energy legislation and under the Massachusetts Clean Energy 83D procurement, in June 2018, NSTAR Electric entered into a 20-year power purchase agreement for the purchase of renewable hydroelectric energy and renewable energy attributes from Hydro-Québec.

The agreement requires NSTAR Electric to purchase 579 MW of energy per hour through January 2046.

Upon notice of commercial operation of the transmission line needed to deliver this energy, received on December 31, 2025, the power purchase agreement was marked to market on the balance sheet.

The current and long-term portions of the contract were recorded as derivative assets and derivative liabilities, respectively, and were offset by current and long-term regulatory liabilities and regulatory assets, respectively, reflecting full recovery from or refund to NSTAR Electric’s customers.

As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities.

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The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets.

For the years ended December 31, 2024, 2023 and 2022, there were losses of $ 3.8 million, losses of $ 3.9 million and gains of $ 10.1 million, respectively.

These changes in fair value associated with CL&P’s derivative contracts are deferred in Regulatory Assets on the balance sheet.

For the years ended December 31, 2025, 2024 and 2023, losses from changes in fair value associated with these derivative contracts of $ 662.9 million, $ 3.8 million and $ 3.9 million, respectively, were deferred in Regulatory Assets or Regulatory Liabilities on the balance sheet.

Fair Value Measurements of Derivative Instruments

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The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions related to exit price.

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled capacity payments and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty’s credit rating for assets and the Company’s credit rating for liabilities.

Significant observable inputs for valuations of these contracts include energy-related product prices in future years for which quoted prices in an active market exist.

Valuations incorporate estimates of premiums or discounts that would be required by a market participant to arrive at an exit price, using historical market transactions adjusted for the terms of the contract.

Fair value measurements were prepared by individuals with expertise in valuation techniques, pricing of energy-related products, and accounting requirements.

All derivative contracts were classified as Level 2 in the fair value hierarchy as of both December 31, 2024 and 2023.

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding future energy and energy-related prices, the timing and likelihood of scheduled payments, selection of a discount rate, and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty’s credit rating for assets and the Company’s credit rating for liabilities.

Valuations also give consideration to premiums or discounts that would be required by a market participant to arrive at an exit price.

Future energy prices that are not quoted in an active market are based on available market data with assumptions of future market dynamics and inflation to address the full time period of the contract.

Fair value measurements are prepared and reviewed by individuals with expertise in valuation techniques, pricing of energy-related products, and accounting requirements.

For NSTAR Electric’s derivative contract, unobservable inputs for future energy prices using a forward electricity bid price curve are significant to the valuation and are classified as Level 3.

As of December 31, 2025, Level 3 unobservable inputs utilized in the valuation of NSTAR Electric’s power purchase agreement include energy prices ranging from $ 24.65 per MWh through $ 145.33 per MWh, or a weighted average of $ 53.44 per MWh, over the contractual period of 2026 through 2046.

For CL&P derivative contracts, observable inputs for energy-related product prices in future years for which quoted prices in an active market exist are significant to the valuation and are classified as Level 2.

The following table presents changes in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis.

The derivative assets and liabilities are presented on a net basis.

NSTAR Electric

(Millions of Dollars)

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Derivatives, Net:

Fair Value as of Beginning of Period $ ( 181.8 )

Net Realized/Unrealized Losses Included in Regulatory Assets ( 3.9 )

Fair Value as of Beginning of Year $ —

Net Realized/Unrealized Losses Included in Regulatory Assets or Regulatory Liabilities ( 662.1 )

Settlements —

Transfers out of Level 3 (1)

Fair Value as of End of Period $ —

(1) Transfers out of Level 3 pertain to certain significant valuation inputs becoming observable as well as certain unobservable inputs no longer being significant to the fair value of the derivative contracts.

Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.

Fair Value as of End of Year $ ( 662.1 )

MARKETABLE SECURITIES

Eversource’s marketable securities include the CYAPC and YAEC legally restricted trusts that each hold equity and available-for-sale debt securities to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Eversource also holds trusts that are not subject to regulatory oversight by state or federal agencies that are primarily used to fund certain non-qualified executive benefits.

The marketable securities within the non-qualified executive benefit trusts were sold in 2023.

Equity and available-for-sale debt marketable securities are recorded at fair value, with the current portion recorded in Prepayments and Other Current Assets and the long-term portion recorded in Marketable Securities on the balance sheets.

Equity and available-for-sale debt marketable securities are recorded at fair value.

CYAPC and YAEC’s spent nuclear fuel trusts are restricted and are classified in long-term Marketable Securities on the balance sheets.

Eversource’s water business also holds a trust.

As of December 31, 2024, the securities held in this trust of $ 4.1 million were classified as Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these securities held in this trust of $ 3.5 million were reclassified as Marketable Securities on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.” For the years ended December 31, 2025 and 2024, there were unrealized losses of $ 0.7 million and unrealized gains of $ 0.9 million recorded in Other Income, Net, related to these equity securities, respectively.

Equity Securities:

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Unrealized gains and losses for these spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to long-term liabilities on the balance sheets, with no impact on the statements of income.

Unrealized gains and losses on equity securities held in other trusts are recorded in Other Income, Net on the statements of income.

The equity securities within Eversource’s non-qualified executive benefits trusts were sold during 2023 and resulted in a $ 1.1 million gain recorded in Other Income, Net for the year ended December 31, 2023.

The remaining equity securities held in Eversource’s trusts as of December 31, 2024 of $ 4.1 million were reclassified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2023, these equity securities totaled $ 3.3 million and there were unrealized gains of $ 0.6 million recorded in Other Income, Net in 2023.

For further information, see Note 24, “Assets Held for Sale.”

Available-for-Sale Debt Securities:

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Unrealized gains and losses for available-for-sale debt securities included in the CYAPC and YAEC spent nuclear fuel trusts are subject to regulatory accounting treatment and are recorded in Marketable Securities with the corresponding offset to long-term liabilities on the balance sheets, with no impact on the statements of income.

Any unrealized gains and losses on available-for-sale debt securities held in other trusts are recorded in Accumulated Other Comprehensive Income, excluding amounts related to credit losses or losses on securities intended to be sold, which are recorded in Other Income, Net.

The debt securities within Eversource’s non-qualified executive benefits trusts were sold during 2023.

There were $ 1.2 million of realized losses recorded on securities sold for the year ended December 31, 2023 that were reclassified out of Accumulated Other Comprehensive Income and recorded in Other Income, Net.

There were no credit losses for the years ended December 31, 2024 and 2023, and no allowance for credit losses as of December 31, 2024.

Factors considered in determining whether a credit loss exists include adverse conditions specifically affecting the issuer, the payment history, ratings and rating changes of the security, and the severity of the impairment.

For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated.

As of December 31, 2025, the contractual maturities of available-for-sale debt securities were as follows:

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Realized gains and losses are offset in long-term liabilities for CYAPC and YAEC and are recorded in Other Income, Net for Eversource's benefit trusts.

Eversource utilizes the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts and the specific identification basis method for the Eversource non-qualified benefit trusts to compute the realized gains and losses on the sale of marketable securities.

Eversource utilizes the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts.

Fair Value Measurements:

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(Millions of Dollars) Ownership Interest 2025 2024

Offshore Wind Business 50 % - 100 % $ 22.2 $ 515.5

Tax Equity Investment in South Fork Wind 100 % $ 19.1 $ 22.2

Natural Gas Pipeline - Algonquin Gas Transmission, LLC 15 % 110.8 112.6

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Eversource received dividends from its equity method investees (excluding proceeds received from sale or liquidation of investments) of $ 20.7 million, $ 20.5 million, and $ 20.1 million, respectively, for the years ended December 31, 2025, 2024 and 2023.

Offshore Wind Business:

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

During 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 through a 100 percent ownership in South Fork Wind Holdings, LLC Class A interests.

On May 25, 2023, Eversource announced that it had completed a strategic review of its offshore wind investments and determined that it would pursue the sale of its offshore wind investments.

On September 7, 2023, Eversource completed the sale of its 50 percent interest in an uncommitted lease area consisting of approximately 175,000 developable acres located 25 miles off the south coast of Massachusetts to Ørsted for $ 625 million in an all-cash transaction.

In September of 2023, Eversource made a $ 528 million investment in a tax equity interest for South Fork Wind.

Tax Equity Investment in South Fork Wind :

Eversource holds a noncontrolling tax equity investment in South Fork Wind through a 100 percent ownership in South Fork Wind Holdings, LLC Class A interests.

In September 2023, Eversource made a $ 528 million investment in a tax equity interest for South Fork Wind.

South Fork Wind was restructured as a tax equity investment, with Eversource purchasing 100 percent ownership of a new Class A tax equity membership interest.

This investment will result in Eversource receiving cash flow benefits from investment tax credits (ITC) and other future cash flow benefits as well.

As of December 31, 2024, $ 459 million of expected investment tax credits and other expected tax benefits were reclassified from the South Fork Wind tax equity investment balance reported in Investments in Unconsolidated Affiliates as a decrease in Accumulated Deferred Income Taxes on the Eversource balance sheet, which represented a non-cash reclassification.

As a result of these investment tax credits, Eversource expects lower federal income tax payments from 2025 to 2027.

As of December 31, 2024, the tax equity interest in South Fork Wind totaled $ 22.2 million.

On January 24, 2024, Eversource entered into an agreement with Ørsted to sell Eversource’s 50 percent share of Sunrise Wind, subject to certain conditions and regulatory approvals.

On April 18, 2024, Eversource and Ørsted executed an equity and asset purchase agreement and on July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted.

In accordance with the equity and asset purchase agreement and after adjustment for a reduction in capital spending compared to forecasted amounts, adjusted proceeds totaled $ 152 million.

Ørsted paid Eversource $ 118 million at the closing of the sale transaction, which was used to repay parent company debt.

Remaining proceeds of $ 34 million will be paid after onshore construction is completed and certain other construction milestones are achieved.

The remaining expected proceeds have been recorded in Other Long-Term Assets on Eversource’s balance sheet as of December 31, 2024.

Eversource recorded a pre-tax gain on the sale of Sunrise Wind of $ 377 million in 2024.

With completion of the sale, Eversource does not have any ongoing financial obligations associated with Sunrise Wind.

On February 13, 2024, Eversource executed an agreement to sell its 50 percent interests in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP) for an initial gross purchase price of approximately $ 1.1 billion.

The initial purchase price was subject to adjustment based on, among other things, the progress, timing and the construction cost of Revolution Wind, including changes in actual versus forecasted capital spending between signing the agreement and closing of the transaction.

On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP for adjusted gross proceeds of $ 745 million, which were received at closing.

Adjusted gross proceeds from the sale were approximately $ 375 million lower than the previously estimated purchase price.

This reduction reflects approximately $ 150 million resulting from lower capital spending between signing the agreement and closing, and approximately $ 225 million related to the final terms of the sale transaction, primarily due to the delay of the commercial operations date of Revolution Wind.

Proceeds from the transaction were used to repay parent company debt.

As part of the Revolution Wind and South Fork Wind sale, Eversource and GIP agreed to make certain post-closing purchase price adjustment payments, which could further impact the final purchase price.

The post-closing purchase price adjustment payments include cost sharing obligations that require Eversource to share equally with GIP in GIP’s funding obligations up to an effective cap of approximately $ 240 million of incremental capital expenditure overruns incurred during the construction phase for Revolution Wind, after which Eversource will have responsibility for GIP’s obligations for any additional capital expenditure overruns in excess of this amount.

The purchase price is also subject to post-closing adjustments as a result of final project economics, which includes Eversource’s obligation to maintain GIP’s internal rate of return through the construction period for each project as specified in the agreement.

Post-closing purchase price adjustment payments will be made following the commercial operation date of Revolution Wind.

South Fork Wind has achieved commercial operation, and Eversource is in the process of finalizing the construction cost post-close purchase price adjustment payment related to this project, which is not expected to be material.

Upon the completion of both sale transactions in 2024, the total proceeds were compared to the carrying value of the investments, including an estimate of liability for post-closing adjustment payments to GIP, and Eversource recognized an aggregate, net after-tax loss on the sales of its offshore wind investments of $ 524 million.

The aggregate, net after-tax loss is comprised of (1) the lower proceeds related to final terms of the sale transaction to GIP of approximately $ 225 million related to non-construction costs for the Revolution Wind and South Fork Wind projects, primarily due to a purchase price reduction of $ 150 million resulting from the delay of the commercial operations date of Revolution Wind, (2) recently identified forecasted construction costs as a result of a delay in the anticipated commercial operation date related to Revolution Wind of approximately $ 350 million, which includes an estimate for the anticipated post-closing adjustment to GIP related to Eversource’s expected cost overrun sharing obligation, and (3) approximately $ 326 million, which includes an estimate for the anticipated post-closing adjustment related to Eversource’s expected obligations to GIP as a result of final economics of the Revolution Wind and South Fork Wind projects and other future

costs, as well as a net $ 60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses.

These losses were partially offset by the $ 377 million gain on the sale of Sunrise Wind.

Upon sale, Eversource recorded a contingent liability of $ 365 million, reflecting its estimate of the future obligations under the GIP sale terms, which include the expected cost overrun sharing obligation, expected obligation to maintain GIP’s internal rate of return, and obligation for other future costs.

The majority of this liability is expected to be settled upon the completion of the Revolution Wind project.

The long-term portion of the liability of $ 350 million is recorded in Other Long-Term Liabilities, and $ 15 million is recorded in Other Current Liabilities on Eversource’s balance sheet as of December 31, 2024.

Contingencies are evaluated using the best information available at the time the financial statements are prepared, and this assessment involves judgments and assumptions about future events.

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.

The purchase price included the sales value related to a 40 percent level of federal investment tax credits, 10 percent of which is the energy community investment tax credit (ITC) adder included in the Inflation Reduction Act of approximately $ 170 million related to Revolution Wind.

Although management believes the ITC adder value is realizable, there is some uncertainty at this time as to whether those ITC adders can be achieved, and management continues to evaluate the project’s qualifications and to monitor guidance issued by the United States Treasury Department.

A change in the expected value or qualification of ITC adders could result in a significant loss in a future period.

New information or future developments that arise as construction progresses and as cost estimates are reviewed and revised will require a reassessment of the estimated liability for the post-closing adjustment payments.

The Company is currently aware that construction of the offshore foundations, offshore substation and turbine tower installations could result in increased cost overruns in the future.

Only preliminary construction cost projections are available for these cost overruns, and there is insufficient updated information at this point in order for Eversource to change its estimate with reasonably estimable information.

Eversource will continue to assess the potential exposure and adjust the liability as needed.

It is expected that updated costs estimates will become available in the first half of 2025, and adverse changes in facts and circumstances could result in additional losses that could be material.

The Company believes it is reasonably possible that there is an additional loss in excess of the liability recorded, but management cannot reasonably estimate a range of loss beyond the $ 365 million recorded at this time.

Total net proceeds could also be adjusted for a benefit due to Eversource if there are lower operation costs or higher availability of the projects through the period that is four years following the commercial operation of Revolution Wind.

Under the agreement with GIP, Eversource’s existing and certain additional credit support obligations for Revolution Wind are expected to roll off as the project completes construction.

Under the agreement with Ørsted, Eversource’s existing credit support obligations for Sunrise Wind were either terminated or indemnified by Ørsted as a result of the sale.

Eversource has entered into separate construction management agreements to manage Sunrise Wind’s and Revolution Wind’s onshore electric substation construction through completion.

In this role, Eversource will be solely a service provider to Sunrise Wind and Revolution Wind.

2023 Impairments:

During 2024, $ 459 million of expected investment tax credits and other expected tax benefits were reclassified from the South Fork Wind tax equity investment balance reported in Investments in Unconsolidated Affiliates as a decrease in Accumulated Deferred Income Taxes on the Eversource balance sheet, which represented a non-cash reclassification.

As a result of these investment tax credits, Eversource expects lower federal income tax payments through 2028.

Offshore Wind Investments:

During 2024, Eversource sold its 50 percent ownership interests in each of North East Offshore and South Fork Class B Member, LLC and in doing so, sold its interests in the Revolution Wind project, the South Fork Wind project, and the Sunrise Wind project.

For more information on the sale, see Note 13G, "Commitments and Contingencies – Offshore Wind Sale and Contingent Liability," to the financial statements.

Eversource recognized an aggregate pre-tax loss on the sales of its offshore wind investments of $ 464 million ($ 524 million after-tax) in 2024.

In 2023, Eversource recorded pre-tax other-than-temporary impairment charges totaling $ 2.17 billion ($ 1.95 billion after-tax) in connection with the process to divest these offshore wind investments.

In the impairment assessments, Eversource evaluated its investments and determined that the carrying value of the equity method offshore wind investments exceeded the fair value of the investments and that the decline in fair value was other-than-temporary.

Impairment charges were recorded to reflect the investments at estimated fair value at that time.

Capital contributions in the offshore wind investments in 2023 and 2024, including the 2023 contribution for the tax equity investment in South Fork Wind, were included in Investments in Unconsolidated Affiliates on the statements of cash flows.

Proceeds received from the sales of the offshore wind investments of $ 863 million in 2024, the sale of an unused lease area to Ørsted for $ 625 million in 2023, and an October 2023 distribution of $ 318 million received primarily as a result of being a 50 percent joint owner in the Class B shares of South Fork Wind which was restructured as a tax equity investment, were included in Proceeds from Unconsolidated Affiliates on the statements of cash flows.

Payments made in 2025 related to Eversource’s remaining offshore wind contingent obligation are reflected in investing activities on the statement of cash flows.

Liquidation of Renewable Energy Investment Fund:

On March 21, 2023, Eversource’s equity method investment in a renewable energy investment fund was liquidated by the fund’s general partner in accordance with the partnership agreement.

Proceeds received from the liquidation totaled $ 147.6 million and were included in Proceeds from Unconsolidated Affiliates on the statement of cash flows for the year ended December 31, 2023.

A portion of the proceeds was used to make a charitable contribution to the Eversource Energy Foundation (a related party) of $ 20.0 million in 2023.

The liquidation benefit received in excess of the investment’s carrying value and the charitable contribution were included in Other Income, Net on the statement of income.

Equity method investments are assessed for impairment when conditions exist as of the balance sheet date that indicate that the fair value of the investment may be less than book value.

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Impairment evaluations involve a significant degree of judgment and estimation, including identifying circumstances that indicate an impairment may exist at the equity method investment level, selecting discount rates used to determine fair values, and developing an estimate of discounted future cash flows expected from investment operations or the sale of the investment.

During 2023, in connection with the process to divest its offshore wind business, Eversource identified indicators for impairment in both the second and fourth quarters of 2023.

In each impairment assessment, Eversource evaluated its investments and determined that the carrying value of the equity method offshore wind investments exceeded the fair value of the investments and that the decline in fair value was other-than-temporary.

The completion of the strategic review in the second quarter of 2023 resulted in Eversource recording a pre-tax other-than-temporary impairment charge of $ 401 million ($ 331 million after-tax) to reflect the investment at estimated fair value based on the expected sales price at that time.

This established a new cost basis in the investments.

Negative developments in the fourth quarter of 2023, including a lower expected sales price, additional projected construction cost increases, and the October 2023 OREC pricing denial for Sunrise Wind, resulted in Eversource conducting an impairment evaluation and recognizing an additional pre-tax other-than-temporary impairment charge of $ 1.77 billion ($ 1.62 billion after-tax) and establishing a new cost basis in the investments as of December 31, 2023.

The Eversource statement of income for the year ended 2023 reflects a total pre-tax other-than-temporary impairment charge of $ 2.17 billion ($ 1.95 billion after-tax) in its offshore wind investments.

The impairment charges were non-cash charges and did not impact Eversource’s cash position at the time of the impairment.

Eversource’s offshore wind investments did not meet the criteria to qualify for presentation as a discontinued operation.

The 2023 impairment evaluations involved judgments in developing the estimates and timing of the future cash flows arising from the expected sales price of Eversource’s 50 percent interest in the wind projects, including expected sales value from investment tax credit adder amounts, less estimated costs to sell, and uncertainties related to the Sunrise Wind re-bid process in New York’s offshore wind solicitation in 2024.

Additional assumptions in the fourth quarter 2023 assessment included revised projected construction costs and estimated project cost overruns, management’s assumption that the Sunrise Wind project would ultimately be abandoned, estimated termination costs, salvage values of Sunrise Wind assets, and the value of the tax equity ownership interest.

The assumptions used in the discounted cash flow analyses were subject to inherent uncertainties and subjectivity.

All significant inputs into the impairment evaluations were Level 3 fair value measurements.

A summary of the significant estimates and assumptions included in the 2023 impairment charges is as follows:

Second Quarter 2023

Fourth Quarter 2023

(Millions of Dollars)

Lower expected sales proceeds across all three wind projects

$ 401 $ 525 $ 926

Expected cost overruns not recovered in the sales price

Loss of sales value from the sale price offered by GIP, including loss of ITC adders value, cancellation costs and other impacts assuming Sunrise Wind project is abandoned

Impairment Charges, pre-tax 401 1,766 2,167

Tax Benefit ( 70 ) ( 144 ) ( 214 )

Impairment Charges, after-tax $ 331 $ 1,622 1,953

A summary of the carrying value by investee and by project as of December 31, 2023 is as follows:

Investments Expected to be Disposed of Investment to be Held

North East Offshore South Fork Class B Member, LLC

South Fork Wind Holdings, LLC Class A

Total Offshore Wind Investments

(Millions of Dollars) Sunrise Wind Revolution Wind

Carrying Value as of December 31, 2023, before

Impairment Charge $ 699 $ 799 $ 299 $ 485 $ 2,282

Fourth Quarter 2023 Impairment Charge ( 1,218 ) ( 544 ) — ( 4 ) ( 1,766 )

Carrying Value as of December 31, 2023 $ ( 519 ) $ 255 $ 299 $ 481 $ 516

During 2024, Eversource sold its interest in the North East Offshore and South Fork Class B, Member LLC equity method investments and recognized an aggregate, net after-tax loss on the sale of its offshore wind investments of $ 524 million.

Capital contributions in the offshore wind investments, including the 2023 contribution for the tax equity investment in South Fork Wind, were included in Investments in Unconsolidated Affiliates on the statements of cash flows.

Proceeds received from the sale of the investments in 2024, and proceeds received from the 2023 sale of the unused lease area and from an October 2023 distribution of $ 318 million received primarily as a result of being a 50 percent joint owner in the Class B shares of South Fork Wind which was restructured as a tax equity investment, were included in Proceeds from Unconsolidated Affiliates on the statements of cash flows.

Liquidation of Renewable Energy Investment Fund:

On March 21, 2023, Eversource’s equity method investment in a renewable energy investment fund was liquidated by the fund’s general partner in accordance with the partnership agreement.

Proceeds received from the liquidation totaled $ 147.6 million and were included in Proceeds from Unconsolidated Affiliates on the statement of cash flows for the year ended December 31, 2023.

A portion of the proceeds was used to make a charitable contribution to the Eversource Energy Foundation (a related party) of $ 20.0 million in 2023.

The liquidation benefit received in excess of the investment’s carrying value and the charitable contribution were included in Other Income, Net on the statement of income.

NSTAR Electric:

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Because the NHPUC has jurisdiction over PSNH's short-term debt, PSNH is not currently required to obtain FERC approval for its short-term borrowings.

On November 30, 2023, the FERC granted authorization that allows CL&P to issue total short-term borrowings in an aggregate principal amount not to exceed $ 600 million outstanding at any one time, through December 31, 2025.

On December 12, 2025, the FERC granted authorization that allows CL&P to issue total short-term borrowings in an aggregate principal amount not to exceed $ 600 million outstanding at any one time, through December 31, 2027.

On December 12, 2025, the FERC granted authorization that allows NSTAR Electric to issue total short-term borrowings in an aggregate principal amount not to exceed $ 655 million outstanding at any one time, through December 31, 2027.

2 unchanged sentences

CL&P's certificate of incorporation contains preferred stock provisions restricting the amount of unsecured debt that CL&P may incur, including limiting unsecured indebtedness with a maturity of less than 10 years to 10 percent of total capitalization.

As of December 31, 2024, CL&P had $ 901.0 million of unsecured debt capacity available under this authorization.

As of December 31, 2025, CL&P had $ 1.19 billion of unsecured debt capacity available under this authorization.

Yankee Gas, NSTAR Gas and EGMA are not required to obtain approval from any state or federal authority to incur short-term debt.

1 unchanged sentence

Eversource parent has a $ 2.00 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.

Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $ 2.00 billion revolving credit facility, which terminates on October 11, 2029.

Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut are parties to a five-year $ 2.00 billion revolving credit facility.

Effective October 11, 2025, the revolving credit facility’s termination date was extended for one additional year to October 11, 2030, pursuant to the extension provisions contained in the existing credit agreement.

This re volving credit facility serves to backstop Eversource parent's $ 2.00 billion commercial paper program.

NSTAR Electric has a $ 650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt.

NSTAR Electric is also a party to a five-year $ 650 million revolving credit facility, which terminates on October 11, 2029, that serves to backstop NSTAR Electric's $ 650 million commercial paper program.

NSTAR Electric is also a party to a five-year $ 650 million revolving credit facility.

This revolving credit facility serves to backstop NSTAR Electric's $ 650 million commercial paper program.

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

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Amounts outstanding under the commercial paper programs are included in Notes Payable and classified in current liabilities on the Eversource and NSTAR Electric balance sheets, as all borrowings are outstanding for no more than 364 days at one time.

As a result of the CL&P long-term debt issuance in January 2024, $ 207.3 million of commercial paper borrowings under the Eversource parent commercial paper program were reclassified to Long-Term Debt on Eversource parent’s balance sheet as of December 31, 2023.

Under the credit facilities described above, Eversource and its subsidiaries, including CL&P, NSTAR Electric, PSNH, NSTAR Gas, EGMA, Yankee Gas, and Aquarion Water Company of Connecticut, must comply with certain financial and non-financial covenants, including a consolidated debt to total capitalization ratio.

5 unchanged sentences

Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets.

As of December 31, 2024, there were intercompany loans from Eversource parent to CL&P of $ 280.0 million and to PSNH of $ 131.1 million.

As of December 31, 2023, there were intercompany loans from Eversource parent to CL&P of $ 457.0 million and to PSNH of $ 233.0 million.

As of December 31, 2025 and 2024, there were intercompany loans from Eversource parent to PSNH of $ 49.3 million and $ 131.1 million, respectively.

As of December 31, 2024, there were intercompany loans from Eversource parent to CL&P of $ 280.0 million.

Eversource parent charges interest on these intercompany loans at the same weighted-average interest rate as its commercial paper program.

Intercompany loans from Eversource parent are included in Notes Payable to Eversource Parent and classified in current liabilities on the respective subsidiary's balance sheets, as these intercompany borrowings are outstanding for no more than 364 days at one time.

As a result of the CL&P long-term debt issuance in January 2024, $ 207.3 million of CL&P’s intercompany borrowings were reclassified to Long-Term Debt on CL&P’s balance sheet as of December 31, 2023.

Sources and Uses of Cash :

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First Mortgage Bonds:

1994 Series D due 2024 7.875 % $ — $ 139.8

2004 Series B due 2034 5.750 % 130.0 130.0

13 unchanged sentences

2024 Series B due 2034 4.950 % 300.0 300.0

2025 Series A due 2030 4.950 % 400.0 —

Total First Mortgage Bonds 5,130.0 5,130.0

1 unchanged sentence

Current Portion Classified as Long-Term Debt (1)

Commercial Paper Classified as Long-Term Debt (See Note 8, Short-Term Debt) — 207.3

Unamortized Premiums and Discounts, Net 12.4 14.3

19 unchanged sentences

2024 Debentures due 2034 5.400 % 600.0 600.0

2025 Debentures due 2030 4.850 % 400.0 —

2025 Debentures due 2035 5.200 % 700.0 —

Total Debentures 5,850.0 5,000.0

17 unchanged sentences

2023 Series X due 2033 5.350 % 600.0 600.0

2025 Series Y due 2028 4.400 % 300.0 —

Total First Mortgage Bonds 2,050.0 1,750.0

9 unchanged sentences

EGMA - First Mortgage Bonds due 2028 - 2052 2.110 % - 5.730 % 933.0 808.0

Aquarion - Senior Notes due 2024 4.000 % — 360.0

Aquarion - Unsecured Notes due 2028 - 2052 3.000 % - 6.430 % 596.6 596.8

3.000 % - 6.430 % 596.8 527.0

Aquarion - Secured Debt due 2027 - 2045 1.296 % - 9.290 % 47.9 40.7

1.296 % - 9.290 % 40.7 39.0

Pre-1983 Spent Nuclear Fuel Obligation (CYAPC) 5.9 5.6

2 unchanged sentences

Less Amounts due in One Year ( 1,090.5 ) ( 750.3 )

Current Portion Classified as Long-Term Debt (1)

Unamortized Premiums and Discounts, Net 37.8 41.7

3 unchanged sentences

(1) 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.

As a result of the CL&P and Eversource parent long-term debt issuances in January 2024, $ 139.8 million and $ 990.9 million, respectively, of current portion of long-term debt were reclassified to Long-Term Debt on CL&P’s and Eversource parent’s balance sheets as of December 31, 2023.

(2) In January 2025, Eversource entered into an agreement to sell Aquarion.

Upon close of the sale, Aquarion’s long-term debt will be repaid by Eversource and has therefore not been classified as held for sale.

The sale is expected to close in late 2025.

(3) The fair value adjustment amount is the purchase price adjustments, net of amortization, required to record long-term debt at fair value on the dates of the 2012 merger with NSTAR and the 2017 acquisition of Aquarion.

As of December 31, 2024, the fair value adjustments were only related to the Aquarion acquisition and were reclassified to Liabilities Held for Sale.

(2) The fair value adjustment amount is the purchase price adjustments, net of amortization, required to record Aquarion’s long-term debt at fair value upon the 2017 acquisition date.

As of December 31, 2024, this fair value adjustment was reclassified to Liabilities Held for Sale.

As of December 31, 2025, the fair value adjustment was reclassified to Long-Term Debt.

For further information, see Note 24, “Assets Held for Sale.”

Availability under Long-Term Debt Issuance Authorizations:

On May 1, 2024, the DPU approved NSTAR Electric’s request for authorization to issue up to $ 2.40 billion in long-term debt through December 31, 2026.

On July 24, 2024, PURA approved CL&P’s request for authorization to issue up to $ 1.00 billion in long-term debt through December 31, 2025.

On August 12, 2024, the DPU approved EGMA’s request for authorization to issue up to $ 325 million in long-term debt through December 31, 2026.

On December 18, 2024, the DPU approved NSTAR Gas’ request for authorization to issue up to $ 475 million in long-term debt through December 31, 2027.

On January 28, 2025, Yankee Gas submitted an application to PURA requesting authorization to issue up to $ 360 million in long-term debt through December 31, 2026.

On March 26, 2025, PURA approved Yankee Gas’ request for authorization to issue up to $ 360 million in long-term debt through December 31, 2026.

PSNH has utilized its long-term debt authorizations in place with NHPUC.

CL&P has no long-term debt authorization remaining with PURA.

Long-Term Debt Issuances and Repayments:

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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 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

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

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

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

Long-Term Debt Provisions:

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Eversource provides defined benefit retirement plans (Pension Plans) that cover eligible employees and are subject to the provisions of ERISA, as amended by the Pension Protection Act of 2006.

Eversource's policy is to annually fund the Pension Plans in an amount at least equal to an amount that will satisfy all federal funding requirements.

Eversource's policy is to annually fund, as necessary, the Pension Plans in an amount at least equal to an amount that will satisfy all federal funding requirements.

In addition to the Pension Plans, Eversource maintains non-qualified defined benefit retirement plans (SERP Plans), which provide benefits in excess of Internal Revenue Code limitations to eligible participants consisting of current and retired employees.

1 unchanged sentence

The benefits provided under the PBOP Plans are not vested, and the Company has the right to modify any benefit provision subject to applicable laws at that time.

Eversource annually funds postretirement costs through tax deductible contributions to external trusts.

In August 2024, Eversource communicated to its employees participating in the Eversource 401k Plan enhanced defined contribution feature (referred to as K-Vantage) that effective January 1, 2025, a Cash Balance Pension Plan is established, which replaces employer K-Vantage contributions.

Eversource transferred into the Cash Balance Pension Plan employees who are participants in the K-Vantage plan, with the exception of one union group with ongoing negotiations, and will credit employees a set percentage of an employee’s eligible pay based on age and years of service on the employee’s behalf.

This benefit is a new, additional obligation of the existing Pension Plan and will be funded through the existing assets of the Eversource Pension Plan.

This plan amendment did not require a remeasurement in 2024 and the liability will begin to accrue benefits upon the effective date of January 1, 2025.

Eversource annually funds, as necessary, postretirement costs through tax deductible contributions to external trusts.

Effective January 1, 2025, a Cash Balance Pension Plan was established, which replaced employer K-Vantage contributions.

Eversource transferred into the Cash Balance Pension Plan employees who were participants in the K-Vantage plan, with the exception of one union group that voted to enter effective January 1, 2026, and will credit employees a set percentage of an employee’s eligible pay based on age and years of service on the employee’s behalf.

This benefit is an additional obligation of the existing Pension Plan and will be funded through the existing assets of the Eversource Service Pension Plan.

The liability began accruing benefits upon the effective date of January 1, 2025.

Funded Status:

11 unchanged sentences

Interest Cost ( 255.6 ) ( 51.5 ) ( 53.0 ) ( 27.1 ) ( 250.0 ) ( 50.3 ) ( 51.6 ) ( 26.8 )

Actuarial Gain/(Loss) 280.2 56.2 74.1 30.7 ( 110.4 ) ( 19.7 ) ( 17.6 ) ( 11.6 )

Actuarial (Loss)/Gain ( 190.0 ) ( 37.8 ) ( 54.5 ) ( 11.7 ) 280.2 56.2 74.1 30.7

Benefits Paid - Pension 334.5 69.1 67.2 38.8 320.9 68.1 67.1 38.0

2 unchanged sentences

Employee Transfers ( 0.3 ) 1.2 2.8 0.1 — 4.0 13.8 2.7

Reclassified to Assets Held for Sale 142.5 — — — — — — —

Water Reclassified as Assets Held for Sale — — — — 142.5 — — —

Water Reclassified from Assets Held for Sale ( 142.5 ) — — — — — — —

Benefit Obligation as of End of Year $ ( 5,020.2 ) $ ( 1,016.7 ) $ ( 1,037.7 ) $ ( 526.2 ) $ ( 4,745.7 ) $ ( 982.9 ) $ ( 1,003.5 ) $ ( 521.5 )

7 unchanged sentences

Employee Transfers — ( 1.2 ) ( 2.8 ) ( 0.1 ) — ( 4.0 ) ( 13.8 ) ( 2.7 )

Reclassified to Assets Held for Sale ( 148.1 ) — — — — — — —

Water Reclassified as Assets Held for Sale — — — — ( 148.1 ) — — —

Water Reclassified from Assets Held for Sale 148.1 — — — — — — —

Fair Value of Pension Plan Assets as of End of Year $ 5,890.0 $ 1,193.3 $ 1,440.0 $ 618.6 $ 5,514.0 $ 1,144.4 $ 1,378.2 $ 597.5

1 unchanged sentence

Actuarial Gain/(Loss):

For the year ended December 31, 2025, the actuarial loss was primarily attributable to a decrease in the discount rate, which resulted in an increase to Eversource’s Pension and SERP Plans’ projected benefit obligation of $ 98.2 million, a $ 38.1 million loss related to updated census data, and a $ 28 million loss related to the salary scale assumption.

For the year ended December 31, 2024, the actuarial gain was primarily attributable to an increase in the discount rate, which resulted in a decrease to Eversource's Pension and SERP Plans’ projected benefit obligation of $ 332.9 million, partially offset by an actuarial loss of $ 42.1 million related to updated census data.

For the year ended December 31, 2023, the actuarial loss was primarily attributable to a decrease in the discount rate, which resulted in an increase to Eversource's Pension and SERP Plans’ projected benefit obligation of $ 98.9 million.

As of December 31, 2025 and 2024, the accumulated benefit obligation for the Pension and SERP Plans is as follows:

10 unchanged sentences

Interest Cost ( 32.0 ) ( 5.6 ) ( 8.7 ) ( 3.4 ) ( 31.9 ) ( 5.6 ) ( 8.8 ) ( 3.4 )

Actuarial Gain/(Loss) 41.3 8.9 10.7 3.9 5.0 4.4 ( 5.8 ) 0.8

Actuarial (Loss)/Gain ( 11.3 ) ( 1.6 ) ( 3.5 ) ( 1.2 ) 41.3 8.9 10.7 3.9

Benefits Paid 51.7 9.3 16.0 6.0 51.7 9.4 15.9 6.2

Employee Transfers — 0.1 — 0.2 — — 0.3 —

Plan Amendment — — — — 1.4 0.4 0.2 0.2

Reclassified to Assets Held for Sale 34.5 — — — — — — —

Water Reclassified as Assets Held for Sale — — — — 34.5 — — —

Water Reclassified from Assets Held for Sale ( 34.5 ) — — — — — — —

Benefit Obligation as of End of Year $ ( 619.9 ) $ ( 108.0 ) $ ( 168.7 ) $ ( 64.8 ) $ ( 587.4 ) $ ( 109.1 ) $ ( 171.4 ) $ ( 65.9 )

5 unchanged sentences

Employee Transfers — ( 0.3 ) 0.6 ( 0.2 ) — ( 0.4 ) ( 1.1 ) 0.2

Reclassified to Assets Held for Sale ( 29.5 ) — — — — — — —

Water Reclassified as Assets Held for Sale — — — — ( 29.5 ) — — —

Water Reclassified from Assets Held for Sale 29.5 — — — — — — —

Fair Value of Plan Assets as of End of Year $ 1,147.1 $ 129.7 $ 568.8 $ 79.6 $ 1,036.3 $ 124.4 $ 519.2 $ 76.4

1 unchanged sentence

Actuarial Gain/(Loss):

For the year ended December 31, 2025, the actuarial loss was primarily attributable to a decrease in the discount rate, which resulted in an increase to the Eversource PBOP projected benefit obligation of $ 11.2 million.

For the year ended December 31, 2024, the actuarial gain was primarily attributable to an increase in the discount rate, which resulted in a decrease to the Eversource PBOP projected benefit obligation of $ 39.8 million.

For the year ended December 31, 2023, the actuarial gain was primarily attributable to changes to termination, retirement, and dependency rates that were updated as a result of an experience study performed in 2023, updated census data, changes to plan provisions, and other assumption changes, which resulted in a decrease to the Eversource PBOP projected benefit obligation of $ 17 million.

The actuarial gain was partially offset by a decrease in the discount rate, which resulted in an increase to the Eversource PBOP projected benefit obligation of $ 12 million.

A reconciliation of the prepaid assets and liabilities within the Eversource Pension, SERP and PBOP Plans’ funded status to the balance sheets is as follows:

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Accrued SERP and PBOP $ ( 100.9 ) $ ( 5.5 ) $ ( 1.7 ) $ ( 4.2 ) $ ( 95.4 ) $ ( 5.3 ) $ ( 2.0 ) $ ( 4.1 )

(1) As of December 31, 2024, the Aquarion water distribution business’s prepaid pension has been reclassified to Assets Held for Sale and the accrued SERP and PBOP liabilities have been reclassified to Liabilities Held for Sale on the Eversource balance sheet.

As of December 31, 2023, these balances were recorded within Prepaid Pension and PBOP and Accrued SERP and PBOP on the Eversource balance sheet.

(1) As of December 31, 2024, the Aquarion water distribution business’s prepaid pension was reclassified to Assets Held for Sale and the accrued SERP and PBOP liabilities were reclassified to Liabilities Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these balances were reclassified to Prepaid Pension and Accrued SERP and PBOP on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.”

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Compensation/Progression Rate 3.5 % — 4.0 % 3.5 % — 4.0 % N/A

Cash Balance Interest Crediting Rate 4.8 % N/A N/A

For the Eversource Service PBOP Plan, the health care cost trend rate is not applicable.

24 unchanged sentences

Expected Return on Plan Assets ( 462.6 ) ( 93.5 ) ( 112.4 ) ( 48.9 ) ( 81.2 ) ( 9.5 ) ( 39.5 ) ( 5.6 )

Actuarial Loss 45.8 2.5 17.1 1.5 — — — —

Actuarial Loss/(Gain) 85.9 12.1 25.6 5.0 ( 0.4 ) — — —

Prior Service Cost/(Credit) 1.3 — 0.3 — ( 21.6 ) 1.1 ( 17.0 ) 0.4

10 unchanged sentences

Prior Service Cost/(Credit) 1.3 — 0.3 — ( 21.6 ) 1.1 ( 17.0 ) 0.4

Settlement Loss 12.4 — — — — — — —

Total Net Periodic Benefit Plan Income $ ( 108.4 ) $ ( 28.9 ) $ ( 34.7 ) $ ( 16.4 ) $ ( 57.3 ) $ ( 0.8 ) $ ( 43.5 ) $ ( 0.7 )

7 unchanged sentences

Compensation/Progression Rate 3.5 % — 4.0 % 3.5 % — 4.0 % 3.5 % — 4.0 % N/A N/A N/A

For the Aquarion Pension Plan, the expected long-term rate of return was 8.25 percent and 7.94 percent for the years ended December 31, 2024 and 2023, respectively.

For the Aquarion PBOP Plan, the expected long-term rate of return was 7 percent for the years ended December 31, 2024

and 2023 and the health care cost trend rate was a range of 3.5 percent to 6.75 percent for the year ended December 31, 2024 and 3.5 percent to 7 percent for the year ended December 31, 2023.

For the Aquarion Pension Plan, the expected long-term rate of return was 8.25 percent for the years ended December 31, 2025 and 2024 and 7.94 percent for the year ended December 31, 2023.

For the Aquarion PBOP Plan, the expected long-term rate of return was 7 percent for the years ended December 31, 2025, 2024 and 2023 and the health care cost trend rate was a range of 3.5 percent to 7.5 percent for the year ended December 31, 2025, 3.5 percent to 6.75 percent for the year ended December 31, 2024 and 3.5 percent to 7 percent for the year ended December 31, 2023 .

Regulatory Assets and Accumulated Other Comprehensive Income/(Loss) Amounts:

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(Millions of Dollars) 2025 2024 2025 2024 2025 2024 2025 2024

Actuarial (Gain)/Loss Arising During the Year $ ( 49.2 ) $ 251.1 $ 2.3 $ 14.0 $ ( 50.9 ) $ ( 32.0 ) $ ( 0.6 ) $ ( 0.3 )

Actuarial Loss/(Gain) Arising During the Year $ 57.0 $ ( 49.2 ) $ — $ 2.3 $ ( 36.8 ) $ ( 50.9 ) $ — $ ( 0.6 )

Actuarial (Loss)/Gain Reclassified as Net Periodic Benefit (Expense)/Income ( 38.7 ) ( 79.1 ) ( 4.2 ) ( 6.8 ) 0.9 0.4 — —

Actuarial (Loss)/Gain Reclassified as Held for Sale — ( 16.6 ) — — — 7.1 — —

Actuarial Loss/(Gain) Reclassified from Held for Sale 16.6 — — — ( 7.1 ) — — —

Settlement Loss — — ( 3.3 ) ( 4.3 ) — — — —

Prior Service Cost/(Credit) Arising During the Year 1.3 — — — — ( 0.9 ) — —

Prior Service Cost Arising During the Year 0.1 1.3 — — — — — —

Prior Service (Cost)/Credit Reclassified as Net Periodic

1 unchanged sentence

Prior Service Cost Reclassified as Held for Sale — ( 1.2 ) — — — ( 0.6 ) — —

Prior Service Cost Reclassified from Held for Sale 1.2 — — — 0.6 — — —

The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Income amounts that have not been recognized as components of net periodic benefit expense as of December 31, 2025 and 2024:

4 unchanged sentences

Prior Service Cost 1.8 1.8 0.4 0.2

Actuarial Loss $ 6.4 $ 49.8 $ 1.8 $ 2.4

Actuarial (Gain)/Loss $ ( 36.6 ) $ 6.4 $ 1.8 $ 1.8

Prior Service (Credit)/Cost ( 43.8 ) ( 66.2 ) 0.3 0.5

5 unchanged sentences

Eversource Contributions:

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.

We do not expect to make any contributions to the Eversource Service PBOP Plan in 2025.

Based on the current status of the Pension Plans and federal pension funding requirements, for the Eversource Service Pension Plan there is no minimum funding requirement in 2026 and Eversource does not expect to make pension contributions in 2026.

Eversource does not expect to make any contributions to the Eversource Service PBOP Plan in 2026.

Eversource contributed $ 2.5 million and $ 0.7 million to the Aquarion Pension and PBOP Plans, respectively, in 2025.

Eversource currently estimates contributing $ 2.5 million and $ 2.8 million to the Aquarion Pension and PBOP Plans, respectively, in 2026.

Fair Value of Pension and PBOP Plan Assets:

5 unchanged sentences

The investment policy and strategy of the 401(h) assets is consistent with that of the defined benefit pension plan.

Eversource's expected long-term rates of return on Pension and PBOP Plan assets are based on target asset allocation assumptions and related expected long-

term rates of return.

Eversource's expected long-term rates of return on Pension and PBOP Plan assets are based on target asset allocation assumptions and related expected long-term rates of return.

In developing its expected long-term rate of return assumptions for the Pension and PBOP Plans, Eversource evaluated input from consultants, as well as long-term inflation assumptions and historical returns.

Management has assumed long-term rates of return of 8.25 percent for the Eversource Service Pension Plan assets, the Eversource Service PBOP Plan assets and the Aquarion Pension Plan assets, and a 7 percent long-term rate of return for the Aquarion PBOP Plan, to estimate its 2025 Pension and PBOP costs.

Management has assumed long-term rates of return of 8.25 percent for the Eversource Service Pension Plan assets and the Eversource Service PBOP Plan assets, and a 7 percent long-term rate of return for the Aquarion Pension Plan assets and the Aquarion PBOP Plan assets, to estimate its 2026 Pension and PBOP costs.

These long-term rates of return are based on the assumed rates of return for the target asset allocations as follows:

14 unchanged sentences

Fixed Income 16.0 % 17.0 % 5.5 % 16.0 % 17.0 % 5.5 %

Public High Yield Fixed Income 5.0 % — % 7.5 % 5.0 % — % 7.5 %

High Yield Fixed Income 5.0 % — % 7.5 % 5.0 % — % 7.5 %

United States Treasuries 11.0 % — % 4.5 % 11.0 % — % 4.5 %

26 unchanged sentences

Total PBOP Assets $ 1,147.1 $ 1,036.3

(1) As of December 31, 2024, the funded status of the Aquarion water distribution business’s Pension and PBOP benefit plans have been reclassified in held for sale presentation on the Eversource balance sheet.

Therefore, these Pension and PBOP asset balances have been excluded from the table above as of December 31, 2024.

(2) Fixed Income investments classified as Level 1 as of December 31, 2023 include pending purchases and pending redemption settlements of $ 31 million.

(1) Fixed Income and Equity Securities classified as Level 2 as of December 31, 2025 include pending redemption settlements of $ 37.2 million and $ 15.4 million, respectively.

(2) Equity Securities classified as Level 2 as of December 31, 2025 include pending redemption settlements of $ 46.8 million.

(3) As of December 31, 2024, the funded status of the Aquarion water distribution business’s Pension and PBOP benefit plans were reclassified as held for sale presentation on the Eversource balance sheet.

Therefore, these Pension and PBOP asset balances were excluded from the tables above as of December 31, 2024.

As of December 31, 2025, the funded status of the Aquarion water distribution business’ Pension and PBOP benefit plans was no longer classified as held for sale in the Eversource balance sheet and the asset balances are included in the tables above.

See Note 24, "Assets Held for Sale," for further information.

(4) The assets of the Pension Plan include a 401(h) account that has been allocated to provide health and welfare postretirement benefits under the PBOP Plan.

10 unchanged sentences

Equity Securities investments in United States, Global, Non-United States and Emerging Markets that are uncategorized include investments in commingled funds and hedge funds that are overlaid with equity index swaps and futures contracts.

Fixed Income investments that are uncategorized include investments in commingled funds, fixed income funds that invest in a variety of opportunistic credit and private debt strategies, and hedge funds that are overlaid with fixed income futures.

Defined Contribution Plans

1 unchanged sentence

The Eversource 401k Plan provides for employee and employer contributions up to statutory limits.

For the year ended December 31, 2025, for eligible employees, the Eversource 401k Plan provided employer matching contributions of 100 percent up to a maximum of six percent of eligible compensation.

For the years ended December 31, 2024 and 2023, for eligible employees, the Eversource 401k Plan provided employer matching contributions of either 100 percent up to a maximum of three percent of eligible compensation or 50 percent up to a maximum of eight percent of eligible compensation.

The Eversource 401k Plan also contained a K-Vantage feature for the benefit of eligible participants, which provided an additional annual employer contribution based on age and years of service.

K-Vantage participants were not eligible to actively participate in the Eversource Pension Plan.

In 2024 and 2023, the Eversource 401k Plan also contained a K-Vantage feature for the benefit of eligible participants, which provided an additional annual employer contribution based on age and years of service.

K-Vantage participants were not eligible to actively participate in the Eversource Service Pension Plan.

Effective January 1, 2025, with the exception of one union group that voted to enter effective January 1, 2026, Eversource replaced employer K-Vantage contributions with the Cash Balance Pension Plan.

See Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for further information.

The total Eversource 401k Plan employer matching contributions, including the K-Vantage contributions, were as follows:

3 unchanged sentences

2023 67.3 9.0 13.7 5.4

Effective January 1, 2025 for eligible Plan participants, the Eversource 401k Plan began providing employer matching contributions of 100 percent up to a maximum of six percent of eligible compensation.

Also effective January 1, 2025, Eversource replaced employer K-Vantage contributions with the Cash Balance Pension Plan.

See Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for further information.

Share-Based Payments

58 unchanged sentences

As of December 31, 2025, there was $ 30.9 million of total unrecognized compensation expense related to nonvested share-based awards for Eversource, including $ 5.3 million for CL&P, $ 9.5 million for NSTAR Electric, and $ 1.9 million for PSNH.

This cost is expected to be recognized ratably over a weighted-average period of 1.76 years for Eversource, CL&P, and PSNH and 1.77 years for NSTAR Electric.

This cost is expected to be recognized ratably over a weighted-average period of 1.75 years for Eversource, CL&P, NSTAR Electric, and PSNH.

An income tax rate of 26 percent was used to estimate the tax effect on total share-based payments determined under the fair-value based method for all awards.

The Company issues treasury shares to settle fully vested RSUs and performance shares under the Company's incentive plans.

For the years ended December 31, 2024 and 2023, a tax deficiency associated with the distribution of stock compensation awards increased income tax expense by $ 2.3 million and $ 0.5 million, respectively, which decreased cash flows from operating activities on the statements of cash flows.

For the year ended December 31, 2022, excess tax benefits associated with the distribution of stock compensation awards reduced income tax expense by $ 2.1 million, which increased cash flows from operating activities on the statements of cash flows.

For the years ended December 31, 2025, 2024, and 2023, a tax deficiency associated with the distribution of stock compensation awards increased income tax expense by $ 2.8 million and $ 2.3 million, $ 0.5 million respectively, which decreased cash flows from operating activities on the statements of cash flows.

Other Retirement Benefits

14 unchanged sentences

Other Retirement Benefits Expense 0.8 0.8 0.3 0.8 0.8 0.3 0.8 0.8 0.4

0.8 0.8 0.3 0.8 0.8 0.4 4.0 3.7 1.3

(1) Other Retirement Benefits Expense in 2022 includes a one-time special retirement benefit payable of $ 9.2 million, which was paid in 2023.

The components of income tax expense are as follows:

27 unchanged sentences

A reconciliation between income tax expense and the expected tax expense at the statutory rate is as follows:

(Millions of Dollars, except percentages)

For the Years Ended December 31,

2024 2023 2022

Income/(Loss) Before Income Tax Expense $ 1,243.8 $ ( 275.0 ) $ 1,866.0

Statutory Federal Income Tax Expense at 21% 261.2 ( 57.7 ) 391.9

For the Year Ended December 31, 2025

Eversource CL&P NSTAR Electric PSNH

(Millions of Dollars) Amount Percent Amount Percent Amount Percent Amount Percent

Income Before Income Tax Expense 1,840.2 N/A $ 718.5 N/A $ 820.7 N/A $ 361.5 N/A

Federal Statutory Income Tax Expense at 21% 386.4 21 % 150.9 21 % 172.3 21 % 75.9 21 %

Tax Effect of Differences:

State and Local Income Tax Effects, Net of Federal Impact (1)

2.4 0.1 39.6 5.5 49.6 6.0 24.6 6.8

Federal Tax Credits

Research and Development Tax Credits ( 22.6 ) ( 1.2 ) — — — — — —

Changes in Valuation Allowances ( 241.6 ) ( 13.1 ) ( 6.2 ) ( 0.9 ) — — — —

Nontaxable or Nondeductible Items:

Depreciation ( 23.4 ) ( 1.3 ) 2.5 0.3 ( 10.6 ) ( 1.3 ) ( 2.2 ) ( 0.6 )

Investment Tax Credit Amortization ( 2.1 ) ( 2.1 ) ( 2.6 )

Other Federal Tax Credits ( 67.0 ) ( 42.5 ) —

State Income Taxes, Net of Federal Impact 43.2 ( 11.4 ) 75.9

Dividends on ESOP ( 5.5 ) ( 5.3 ) ( 5.1 )

Tax Asset Valuation Allowance/Reserve Adjustments 278.6 295.8 51.6

Tax Deficiency/(Excess Stock Benefit) 2.3 0.5 ( 2.1 )

EDIT Amortization ( 50.6 ) ( 2.7 ) ( 17.0 ) ( 2.4 ) ( 21.7 ) ( 2.6 ) ( 8.1 ) ( 2.2 )

Other, Net ( 26.4 ) 59.7 10.2

Income Tax Expense $ 424.7 $ 159.7 $ 453.6

Effective Tax Rate 34.1 % ( 58.1 ) % 24.3 %

Loss on Offshore Wind 59.5 3.2 — — — — — —

Other 30.2 1.6 ( 2.6 ) ( 0.4 ) 0.4 — 1.9 0.5

Income Tax Expense/Effective Tax Rate $ 140.3 7.6 % $ 167.2 23.3 % $ 190.0 23.2 % $ 92.1 25.5 %

(1) State taxes in Connecticut (for CL&P), Massachusetts (for NSTAR Electric) and New Hampshire (for PSNH) made up the majority of the tax effects in this category for Eversource.

Eversource maintains a valuation allowance recorded on deferred tax assets associated with the loss recorded from the offshore wind investments.

In the third quarter of 2025, as part of filing its 2024 tax return to provision process, Eversource partially reversed this valuation allowance by $ 294 million and also recorded a charge of $ 129 million as it reconciled the positions on the tax return to what was estimated as of December 31, 2024, resulting in a net benefit of $ 165 million to tax expense.

The adjustment to the valuation allowance was required based on the reconciling of previously recorded tax losses to amounts included in applicable partnership income tax returns.

Both adjustments resulted from changes in tax estimates based on information from the partnership tax returns received in the third quarter of 2025.

Eversource also recognized state tax benefits and certain tax credits of $ 118 million as part of the 2024 tax return to provision process.

These benefits totaling $ 283 million were recorded as a reduction to income tax expense on the statement of income in 2025.

The Loss on Offshore Wind in the table above of $ 59.5 million reflects the federal impacts of the $ 129 million charge, partially offset by the tax benefit of $ 44 million recorded from the pre-tax increase of $ 284 million to the offshore wind contingent liability recorded in the third quarter of 2025.

For the Years Ended December 31,

2024 2023 2022

(Millions of Dollars, except percentages) CL&P NSTAR

Electric PSNH CL&P NSTAR

(Millions of Dollars, except percentages) Eversource CL&P NSTAR

Electric PSNH Eversource CL&P NSTAR

Electric PSNH

Income Before Income Tax Expense $ 707.1 $ 826.9 $ 285.1 $ 689.6 $ 697.5 $ 254.7 $ 704.1 $ 632.4 $ 222.9

Income/(Loss) Before Income Tax Expense $ 1,243.8 $ 707.1 $ 826.9 $ 285.1 $ ( 275.0 ) $ 689.6 $ 697.5 $ 254.7

Statutory Federal Income Tax Expense at 21% 261.2 148.5 173.7 59.9 ( 57.7 ) 144.9 146.5 53.5

2 unchanged sentences

Investment Tax Credit Amortization ( 2.1 ) — ( 1.7 ) — ( 2.1 ) — ( 1.7 ) —

Other Federal Tax Credits ( 67.0 ) — — — ( 42.5 ) — — —

State Income Taxes, Net of Federal Impact 43.2 ( 2.8 ) 49.4 16.7 ( 11.4 ) ( 10.7 ) 42.5 14.1

Dividends on ESOP ( 5.5 ) — — — ( 5.3 ) — — —

Tax Asset Valuation

Allowance/Reserve Adjustments 278.6 50.8 — — 295.8 51.3 — —

Tax Deficiency/(Excess Stock Benefit) 0.8 0.8 0.3 0.2 0.2 0.1 ( 0.7 ) ( 0.8 ) ( 0.3 )

Share-Based Payment Tax Deficiency 2.3 0.8 0.8 0.3 0.5 0.2 0.2 0.1

EDIT Amortization ( 37.0 ) ( 9.2 ) ( 20.0 ) ( 6.5 ) ( 51.5 ) ( 10.5 ) ( 28.4 ) ( 6.8 )

38 unchanged sentences

(1) As of December 31, 2025 and 2024, the Eversource Valuation Allowance of $ 293.4 million and $ 558.2 million, includes $ 162.4 million and $ 427.0 million, respectively, related to Eversource’s share of offshore wind investments.

Income Taxes Paid:

The following tables present income taxes paid, net of refunds received, disaggregated by jurisdiction.

The jurisdictions presented include federal, state, and any individual jurisdictions where the amount of income taxes paid equals or exceeds five percent of the total income taxes paid during the reporting period.

(Millions of Dollars)

For the Years Ended December 31,

2025 2024 2023

Cash Paid/(Received) for Income Taxes, Net of Refunds:

Federal Income Taxes $ ( 48.8 )

State Income Taxes:

Connecticut 6.2

Massachusetts ( 8.7 )

State Income Taxes 0.4

Total Cash Paid/(Received) for Income Taxes, Net of Refunds $ ( 48.4 )

Total Cash Paid/(Received) for Income Taxes (Prior to ASU 2023-09) $ ( 69.6 ) $ 39.2

For the Years Ended December 31,

2025 2024 2023

(Millions of Dollars) CL&P NSTAR

Electric PSNH CL&P NSTAR

Electric PSNH

Cash Paid for Income Taxes, Net of Refunds:

Federal Income Taxes $ 113.1 $ 124.5 $ 60.0

State Income Taxes:

Connecticut 22.4 — —

Massachusetts (a) 40.3 (a)

New Hampshire — — 22.9

Other 0.2 — 0.1

State Income Taxes 22.6 40.3 23.0

Total Cash Paid for Income Taxes, Net of Refunds $ 135.7 $ 164.8 $ 83.0

Total Cash Paid/(Received) for Income Taxes (Prior to ASU 2023-09) $ ( 47.4 ) $ 118.7 $ ( 36.0 ) $ ( 44.1 ) $ 31.3 $ ( 59.9 )

(a) Did not meet the five percent threshold required for separate disclosure.

Carryforwards:

6 unchanged sentences

Federal Tax Credit 397.4 0.3 — — 2044 404.1 — — — 2044

Federal Charitable Contribution 1.1 — — — 2029 — — — — —

Federal Capital Loss 1,044.6 — — — 2025 - 2029 2,700.0 — — — 2024 - 2029

3 unchanged sentences

State Charitable Contribution 13.2 — — — 2026 - 2029 15.2 — — — 2024 - 2028

In 2024 and 2023, the Company increased its valuation allowance reserve for state credits by $ 27.3 million ($ 23.5 million for CL&P), net of tax, and $ 21.3 million ($ 17.3 million for CL&P), net of tax, respectively, to reflect an update for expiring tax credits.

For 2024, state credit and federal and state loss carryforwards have been partially reserved by a valuation allowance of $ 558.2 million (net of tax) and for 2023, state credit and state loss carryforwards were partially reserved by a valuation allowance of $ 104.1 million (net of tax).

In 2025, the Company decreased its valuation allowance reserve for state credits by $ 0.2 million (increased by $ 0.1 million for CL&P), net of tax, and in 2024, the Company increased its valuation allowance reserve for state credits by $ 27.3 million ($ 23.5 million for CL&P), net of tax.

For 2025 and 2024, state credit and federal and state capital loss carryforwards have been partially reserved by a valuation allowance of $ 293.4 million and $ 558.2 million (net of tax), respectively.

Unrecognized Tax Benefits:

3 unchanged sentences

Gross Increases - Current Year 23.4 4.0

Gross Increases - Prior Year 0.1 0.1

Gross Decreases - Prior Year ( 0.1 ) —

8 unchanged sentences

Gross Increases - Prior Year 5.9 1.1

Gross Decreases - Prior Year ( 0.2 ) ( 0.2 )

Lapse of Statute of Limitations ( 13.3 ) ( 4.6 )

4 unchanged sentences

No penalties have been recorded.

The amount of interest expense recognized on uncertain tax positions was $ 1.3 million and $ 0.3 million for the years ended December 31, 2024 and 2023, respectively.

There was no interest expense/(income) recognized on uncertain tax positions for the year ended December 31, 2022.

The amount of interest expense recognized on uncertain tax positions was $ 2.4 million, $ 1.3 million and $ 0.3 million for the years ended December 31, 2025, 2024, and 2023, respectively.

Accrued interest payable was $ 4.1 million and $ 1.7 million as of December 31, 2025 and 2024, respectively.

8 unchanged sentences

New Hampshire 2022 - 2025

(1) The Company’s Corporate Income Tax Returns for 2022 and 2023 were reviewed and closed as part of the annual IRS CAP program, with the exception for partnership investments of the Company.

The Company was recently informed of an IRS audit of one of the partnership returns for the tax year 2022 and the IRS reserves the right to audit 2023.

(1) The Company’s Corporate Income Tax Returns for 2022 through 2024 were reviewed and closed as part of the annual IRS CAP program, with the exception for partnership investments of the Company.

The Company was informed of an IRS audit of one of the partnership returns for the tax year 2022 and the IRS reserves the right to audit any years thereafter.

The Company recorded in the above Unrecognized Tax Benefits a reserve associated with this Partnership audit.

These years remain open in relation to those audits.

Eversource does not estimate to have an earnings impact related to unrecognized tax benefits during the next twelve months.

COMMITMENTS AND CONTINGENCIES

28 unchanged sentences

The reserve balances related to these former MGP sites were $ 140.9 million and $ 115.9 million as of December 31, 2025 and 2024, respectively, and related primarily to the natural gas business segment.

As of December 31, 2024, for 17 environmental sites ( 9 for CL&P and 2 for NSTAR Electric) that are included in the Company's reserve for environmental costs, management cannot reasonably estimate the exposure to loss in excess of the reserve, or range of loss, as these sites are under investigation and/or there is significant uncertainty as to what remedial actions, if any, the Company may be required to undertake.

As of December 31, 2024, $ 30.7 million (including $ 5.7 million for CL&P and $ 1.4 million for NSTAR Electric) had been accrued as a liability for these sites.

As of December 31, 2024, for 8 environmental sites (1 for NSTAR Electric) that are included in the Company's reserve for environmental costs, the information known and the nature of the remediation options allow for the Company to estimate the range of losses for environmental costs.

As of December 31, 2024, $ 29.5 million has been accrued as a liability for these sites, which represents the low end of the range of the liabilities for environmental costs.

As of December 31, 2025, for 13 environmental sites ( 7 for CL&P) that are included in the Company's reserve for environmental costs, management cannot reasonably estimate the exposure to loss in excess of the reserve, or range of loss, as these sites are under investigation and/or there is significant uncertainty as to what remedial actions, if any, the Company may be required to undertake.

As of December 31, 2025, $ 33.6 million (including $ 7.0 million for CL&P) had been accrued as a liability for these sites.

As of December 31, 2025, for 9 environmental sites (2 for CL&P and 1 for NSTAR Electric) that are included in the Company's reserve for environmental costs, the information known and the nature of the remediation options allow for the Company to estimate the range of losses for environmental costs.

As of December 31, 2025, $ 30.9 million (including $ 0.7 million for CL&P) has been accrued as a liability for these sites, which represents the low end of the range of the liabilities for environmental costs.

Management believes that additional losses of up to approximately $ 29.6 million may be incurred in executing current remediation plans for these sites.

9 unchanged sentences

Natural Gas Procurement 523.3 487.9 359.4 320.1 273.6 781.9 2,746.2

NECEC Transmission Service

Agreement 94.6 96.5 98.4 100.4 102.4 1,806.4 2,298.7

Capacity and Purchased Power 2.9 2.7 2.7 2.3 1.8 0.5 12.9

11 unchanged sentences

Renewable Energy Purchase Contracts $ 432.1 $ 460.5 $ 465.8 $ 475.5 $ 483.7 $ 8,040.2 $ 10,357.8

NECEC Transmission Service

Agreement 94.6 96.5 98.4 100.4 102.4 1,806.4 2,298.7

Purchased Power 2.8 2.7 2.7 2.3 1.8 0.5 12.8

6 unchanged sentences

Renewable energy purchase contracts include non-cancellable commitments under contracts of CL&P and NSTAR Electric for the purchase of energy and capacity from renewable energy facilities.

Such contracts extend through 2046 for CL&P and 2045 for NSTAR Electric.

In 2024, the NHPUC approved the termination of a PPA for the purchase of capacity, renewable energy and RECs from a New Hampshire generation plant and there are no remaining long-term renewable energy purchase contracts at PSNH.

Such contracts extend through 2046 for CL&P and NSTAR Electric.

There are no long-term renewable energy purchase contracts at PSNH.

The agreement requires NSTAR Electric to purchase 579 MW of energy per hour through January 2046.

On December 31, 2025, NSTAR Electric received notice of commercial operation of the transmission line needed to deliver this energy.

Costs under this contract began in January 2026 following commercial operation and range between $ 260 million and $ 420 million per year under the 20-year contract, totaling approximately $ 6.7 billion over the total contract term.

The power purchase agreement is supported by New England Clean Energy Connect (NECEC), a 1,200 MW transmission line developed to deliver the hydroelectric power from Hydro‑Québec into the New England grid.

As required by law, NSTAR Electric cannot use this power to satisfy its customers’ supply obligations.

NSTAR Electric will sell the energy purchased under this contract into the market and will use the proceeds from these energy sales to offset the contract costs.

The net supply costs under this contract will be recovered from or credited to customers in future rates and do not have an impact on the net income of NSTAR Electric.

This contract meets the definition of a derivative and the fair value of the contract is recorded on NSTAR Electric’s balance sheet as a derivative with an offset to regulatory assets and/or liabilities.

For further information, see Note 4, "Derivative Instruments," to the financial statements.

Renewable energy purchase contracts include long-term commitments of NSTAR Electric pertaining to the Vineyard Wind LLC contract awarded under the Massachusetts Clean Energy 83C procurement solicitation.

9 unchanged sentences

These contracts do not meet the definition of a derivative, and accordingly, the costs of these contracts are being accounted for as incurred.

The contractual obligations table above does not include long-term commitments signed by CL&P and NSTAR Electric, as required by the PURA and the DPU, respectively, for the purchase of renewable energy and related products that are contingent on the future construction of energy facilities, such as the long-term commitments of NSTAR Electric pertaining to the Massachusetts Clean Energy 83D contract entered into in 2018.

NECEC Transmission Service Agreement:

In June 2018, in connection with the Hydro-Québec power purchase agreement, NSTAR Electric entered into a 20-year transmission service agreement (TSA) with NECEC Transmission LLC, the developer and owner of the NECEC transmission line.

Under the TSA, NSTAR Electric is obligated to purchase its proportionate share of transmission service at regulated rates, as approved by the DPU and FERC.

Costs under the TSA began in January 2026 and range between $ 95 million and $ 140 million per year, totaling approximately $ 2.3 billion over the total contract term.

NSTAR Electric’s obligation under this contract are recovered from customers in rates.

Natural Gas Procurement:

1 unchanged sentence

Capacity and Purchased Power:

These contracts include capacity CfDs with generation facilities at CL&P through 2026, and a purchase obligation for electricity which extends through 2031 for NSTAR Electric.

These contracts include a capacity CfD with a generation facility at CL&P through 2026, and a purchase obligation for electricity which extends through 2031 for NSTAR Electric.

CL&P's portion of the costs and benefits under these capacity contracts are recovered from, or refunded to, CL&P's customers.

1 unchanged sentence

CL&P has a sharing agreement with UI, whereby CL&P is responsible for 80 percent and UI for 20 percent of the net costs or benefits of these CfDs.

The Peaker CfDs pay the generation facility owner the difference between capacity, forward reserve and energy market revenues and a cost-of-service payment stream for 30 years.

The Peaker CfDs pay the generation facility owner the difference between capacity, day-ahead ancillary services and energy market revenues and a cost-of-service payment stream for 30 years.

The ultimate cost or benefit to CL&P under these contracts will depend on the costs of plant operation and the prices that the projects receive for capacity and other products in the ISO-NE markets.

38 unchanged sentences

The settlement was approved on November 19, 2024 and the Department of Justice filed a Notice of Appeal on January 17, 2025 on an issue outside the scope of the settlement.

Oral arguments are expected to be scheduled in the second half of 2025.

Oral arguments are expected to be scheduled in 2026.

Guarantees and Indemnifications

5 unchanged sentences

In the event it becomes probable that Eversource parent will be required to perform under the guarantee, the amount of probable payment will be recorded.

On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to GIP.

On September 30, 2024, Eversource completed the sale of its 50 percent ownership share in the South Fork Wind and Revolution Wind projects to affiliates of Global Infrastructure Partners (GIP).

Under the agreement with GIP, Eversource’s existing and certain additional credit support obligations for Revolution Wind are expected to roll off as the project completes construction.

7 unchanged sentences

Eversource Investment LLC, Eversource Investment Service Company LLC and South Fork Class B Member, LLC Offshore wind funding and indemnification obligations (2)

Eversource Investment LLC Letters of Credit (3)

Eversource TEI LLC South Fork Wind Tax Equity (3)

7 unchanged sentences

These guarantees will not exceed $ 1.62 billion and expire upon the full performance of the guaranteed obligations.

(3) Eversource parent entered into a guarantee on behalf of EI, under which Eversource parent would guarantee EI's obligations under a letter of credit facility with a financial institution that EI may request in an aggregate amount of up to approximately $ 25 million.

As of December 31, 2024, EI has issued two letters of credit on behalf of South Fork Wind, LLC and one letter of credit on behalf of Revolution Wind, LLC totaling $ 5.3 million.

The guarantee will remain in effect until full performance of the guaranteed obligations.

On January 24, 2025, the $ 1.0 million letter of credit issued on behalf of Revolution Wind, LLC was terminated.

(3) Eversource parent issued a guarantee on behalf of its wholly-owned subsidiary, Eversource TEI LLC, whereby Eversource parent will guarantee Eversource TEI LLC’s performance of certain obligations, in an amount not to exceed $ 50.0 million, in connection with any remaining obligations under the LLC agreement.

5 unchanged sentences

Certain surety bonds contain credit ratings triggers that would require Eversource parent to post collateral in the event that the unsecured debt credit ratings of Eversource parent are downgraded.

Eversource parent entered into a guarantee on behalf of EI, under which Eversource parent would guarantee EI's obligations under a letter of credit facility with a financial institution that EI may request in an aggregate amount of up to approximately $ 25 million.

As of December 31, 2025, there are no letters of credit issued under this guarantee.

The guarantee will remain in effect until full performance of the guaranteed obligations.

On September 30, 2024, Eversource entered into an agreement with GIP and Ørsted to contingently provide future credit support up to a maximum of $ 850 million in guarantees, if required, to support third-party tax equity financing for Revolution Wind.

In January 2026, Eversource parent issued a guaranty on behalf of EI totaling $ 900 million to GIP in order to support certain tax positions related to the Revolution Wind project through June 30, 2035.

FERC ROE Complaints

19 unchanged sentences

The FERC order included illustrative calculations for the first complaint using FERC's proposed frameworks with financial data from that complaint.

Those illustrative calculations indicated that for the first complaint period, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

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.

If the results of the illustrative calculations were included in a final FERC order for each of the complaint periods, then a 10.41 percent base ROE and a 13.08 percent incentive cap would not have a significant impact on our financial statements for all of the complaint periods.

18 unchanged sentences

The removal of the risk-premium financial model was the only revision to FERC’s ROE methodology and resulted in a two-model approach utilizing the two-step discounted cash flow model and the capital asset pricing model.

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.

The order also stated that FERC does not preclude the use of the risk-premium financial model in future proceedings if the parties can demonstrate that FERC’s stated concerns around the inclusion of the model have been addressed.

On March 25, 2025, FERC issued an order addressing arguments raised on rehearing, sustaining the result, and denying 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.

3 unchanged sentences

569, treat an underlying unlawful complaint as if it were legitimate, and order eight years of interest as part of the directed refunds.

On August 21, 2025, the NETOs submitted a brief in support of the MISO transmission owners with the Court.

Final briefs in the Court proceeding were submitted on January 26, 2026 and oral argument is scheduled for March 17, 2026.

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.

6 unchanged sentences

Legal costs related to the defense of loss contingencies are expensed as incurred.

Offshore Wind Sale and Contingent Liability

On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted for adjusted proceeds of $ 152 million.

Ørsted paid Eversource $ 118 million at the closing of the sale transaction and remaining proceeds of $ 34 million will be paid after onshore construction is completed and certain other construction milestones are achieved.

With completion of the sale, Eversource does not have any ongoing financial obligations associated with Sunrise Wind.

As part of the sale, Eversource and GIP agreed to make certain post-closing purchase price adjustment payments that will impact the final purchase price.

The post-closing purchase price adjustment payments include cost sharing obligations that require Eversource to share equally in GIP’s funding obligations up to an effective cap of approximately $ 240 million of incremental capital expenditure overruns incurred during the construction phase for Revolution Wind, after which Eversource will have responsibility for GIP’s obligations for any additional capital expenditure overruns in excess of this amount.

For Revolution Wind, purchase price adjustment payments are expected to be completed in late 2026.

South Fork Wind has achieved commercial operation, and Eversource made a purchase price adjustment payment related to this project in June 2025.

In January 2026, disputes with respect to this purchase price adjustment and all matters relating to South Fork Wind have now been resolved with no material impacts.

Upon the completion of the sales in 2024, Eversource recorded a contingent liability of $ 365.0 million, reflecting its estimate of the future obligations under the terms of the sale to GIP.

The total sales proceeds were compared to the carrying value of the investments, including the estimate of liability for post-closing adjustment payments to GIP, and Eversource recognized an aggregate after-tax loss on the sales of its offshore wind investments of $ 524 million, which included a net $ 60 million increase in income tax expense including an increase in the valuation allowance for unused capital losses, in 2024.

In the third quarter of 2025, Eversource received an updated report from GIP on the construction status of Revolution Wind, which included revised projections of total construction costs.

The revised cost projections reflected known and quantifiable cost increases, including those associated with the impacts of damage to the wind turbine installation vessel, insurance costs, tariff impacts, and costs incurred as a result of the stop-work order for Revolution Wind received on August 22, 2025 from the Bureau of Ocean Energy Management that halted all offshore wind construction activities through September 22, 2025.

Based on those developments, Eversource recognized a pre-tax charge of $ 284.0 million in the third quarter of 2025 as a result of the aggregate impact of these items to increase the liability for purchase price adjustments associated with the offshore wind projects.

Payments made in 2025 reduced the contingent liability and are reflected within investing activities on the statement of cash flows.

These payments included cost overruns for the Revolution Wind project paid to GIP, insurance payments, and the purchase price adjustment payment related to the South Fork Wind project paid to GIP.

Eversource continually evaluates the contingent liability and will reassess the balance as new information becomes available.

Based on most recent updates from GIP on the construction status of Revolution Wind, factoring in estimated costs incurred as a result of a second stop-work order for Revolution Wind received on December 22, 2025 and removed on January 12, 2026, revised insurance costs, and other information currently available, Eversource believes that the contingent liability balance as of December 31, 2025 is a reasonable estimate to cover this contingent liability for purchase price adjustments.

As of December 31, 2025, the contingent liability totaled $ 448.2 million and is recorded as a current liability on Eversource’s balance sheet, based upon the timing of expected payments to GIP.

The contingent liability totaled $ 365.0 million as of December 31, 2024.

Eversource relies on information that it receives from the project owners for the construction-related, delay-related, and insurance-related costs of Revolution Wind.

Eversource uses its judgment to adjust, as needed, its expected obligations to GIP while construction of Revolution Wind is completed.

New information or future developments that arise as the construction of Revolution Wind progresses will necessitate a reassessment of the estimated liability to GIP.

The Company reviews available projections of total construction costs, including the latest cost estimates and project timeline, to determine if any changes to this liability are warranted.

It is reasonably possible that as additional updated cost estimates become available, and if additional cost overruns materialize or other adverse changes in facts, regulations and circumstances occur, it could result in additional losses and increases to the offshore wind contingent liability, which could be material.

The Company will continue to monitor developments and evaluate potential exposures related to this contingency and will revise its estimated liability as additional information becomes available.

Contingencies are evaluated using the best information available at the time the financial statements are published, and this assessment involves judgments and assumptions about future events.

Factors that could increase the obligation to GIP include construction cost overruns for Revolution Wind as well as the timing and extent of construction delays, which would impact the 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 price.

The purchase price of Revolution Wind included the sales value related to a 40 percent level of federal investment tax credits.

A change in the expected value or qualification of investment tax credit adders could result in a significant loss in a future period.

2023 Impairment of Offshore Wind Investments:

In 2023, Eversource recorded pre-tax other-than-temporary impairment charges of $ 2.17 billion ($ 1.95 billion after-tax) in connection with the process to divest its offshore wind investments.

Eversource, including CL&P, NSTAR Electric and PSNH, has entered into lease agreements as a lessee for the use of land, office space, service centers, vehicles, information technology, and equipment.

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As such, none of the finance lease payments over the next twelve months will reduce the finance lease liability.

As of December 31, 2024, the operating lease balances attributable to the Aquarion water distribution business have been reclassified to Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2023, these balances were recorded within Other Long-Term Assets on the Eversource balance sheet.

As of December 31, 2024, the operating lease balances attributable to the Aquarion water distribution business were classified as Assets Held for Sale on the Eversource balance sheet.

As of December 31, 2025, these assets were reclassified as Other Long-Term Assets on the Eversource balance sheet.

For further information, see Note 24, “Assets Held for Sale.”

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(Millions of Dollars)

Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric

Eversource CL&P NSTAR Electric PSNH Eversource CL&P NSTAR Electric PSNH

Year Ending December 31,

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Plans Total Qualified

Instruments Unrealized

on Marketable

Securities Defined

Instruments Defined

Balance as of January 1st $ ( 0.4 ) $ ( 26.1 ) $ ( 26.5 ) $ ( 0.4 ) $ ( 33.3 ) $ ( 33.7 )

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The unamortized actuarial gains and losses and prior service costs on the defined benefit plans are amortized from AOCI into Other Income, Net over the average future employee service period, and are reflected in amounts reclassified from AOCI.

The related tax effects of the defined benefit plan OCI amounts before reclassifications recognized in AOCI were net deferred tax assets of $ 0.4 million, $ 4.9 million and $ 1.3 million in 2024, 2023 and 2022, respectively.

The related tax effects of the defined benefit plan OCI amounts before reclassifications recognized in AOCI was a net deferred tax liability of $ 0.1 million in 2025 and were net deferred tax assets of $ 0.4 million and $ 4.9 million in 2024 and 2023, respectively.

The following table sets forth the amounts reclassified from AOCI by component and the impacted line item on the statements of income:

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Common Share Issuances:

Eversource had an equity distribution agreement pursuant to which it could offer and sell up to $ 1.2 billion of its common shares from time to time through an “at-the-market” (ATM) equity offering program.

Eversource issued and sold its common shares through its sales agents during the term of this agreement.

On May 30, 2025, Eversource entered into an equity distribution agreement pursuant to which it may offer and sell up to $ 1.2 billion of its common shares from time to time through an “at-the-market” (ATM) equity offering program.

Eversource may issue and sell its common shares through its sales agents during the term of this agreement.

Shares were offered in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise.

Sales were made at either market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices.

Sales may be made at either market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices.

In 2025, Eversource issued 7,130,134 common shares, which resulted in proceeds of $ 465.4 million, net of issuance costs.

Eversource used the net proceeds received for general corporate purposes.

In 2023, no shares were issued under this agreement.

On May 11, 2022, Eversource entered into an equity distribution agreement pursuant to which it could offer and sell up to $ 1.2 billion of its common shares from time to time through an ATM equity offering program.

In 2024, Eversource issued 15,740,294 common shares, which resulted in proceeds of $ 989.4 million, net of issuance costs.

Eversource used the net proceeds received for general corporate purposes.

Eversource completed the program in October 2024.

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As of December 31, 2025 and 2024, there were 375,416,880 and 366,608,052 Eversource common shares outstanding, respectively.

Acquisition of The Torrington Water Company:

On October 3, 2022, Aquarion acquired The Torrington Water Company (TWC) following the receipt of all required approvals.

The acquisition was structured as a stock-for-stock merger and Eversource issued 925,264 treasury shares at closing for a purchase price of $ 72.1 million.

Eversource issues treasury shares to satisfy awards under the Company's incentive plans, shares issued under the dividend reinvestment and share purchase plan, and matching contributions under the Eversource 401k Plan.

Eversource also issued treasury shares for its October 2022 water business acquisitions.

The issuance of treasury shares represents a non-cash transaction, as the treasury shares were used to fulfill Eversource's obligations that require the issuance of common shares.

On May 3, 2023, shareholders voted to increase the authorized common shares from 380,000,000 shares to 410,000,000 shares.

PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION

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RSU and performance share awards are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied.

For the years ended December 31, 2024, 2023 and 2022, there were no antidilutive share awards excluded from the computation.

The following table sets forth the components of basic and diluted earnings/(loss) per share:

For the years ended December 31, 2025, 2024 and 2023, there were no antidilutive share awards excluded from the computation of diluted EPS.

The following table sets forth the components of basic and diluted earnings per share:

(Millions of Dollars, except share information)

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Other Revenues from Contracts with Customers 88.3 5.8 14.4 2.6 1,732.7 ( 1,729.5 ) 114.3

Reserve for Revenues Subject to Refund — — — ( 1.9 ) — — ( 1.9 )

Total Revenues from Contracts with Customers 10,003.5 2,591.0 2,466.5 250.7 1,732.7 ( 3,551.3 ) 13,493.1

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Other Revenues from Contracts with Customers 92.2 5.1 13.9 3.8 1,701.3 ( 1,694.6 ) 121.7

Amortization of Revenues Subject to Refund — — 4.3 — — — 4.3

Total Revenues from Contracts with Customers 9,018.2 2,056.6 2,046.3 233.4 1,701.3 ( 3,254.0 ) 11,801.8

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Other Revenues from Contracts with Customers 82.6 5.6 18.9 8.1 1,636.6 ( 1,628.0 ) 123.8

Amortization of/(Reserve for) Revenues

Subject to Refund 72.0 — 0.7 ( 0.7 ) — — 72.0

Total Revenues from Contracts with Customers 9,007.4 2,182.2 1,796.4 231.0 1,636.6 ( 2,963.0 ) 11,890.6

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with Customers 36.1 46.5 22.5 36.7 50.2 21.2 36.7 49.1 18.1

Amortization of Revenues Subject

to Refund — — — 4.3 — — 72.7 — —

Total Revenues from Contracts

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Wholesale Market Sales Revenues:

Wholesale market sales transactions include sales of energy and energy-related products into the ISO-NE wholesale electricity market, sales of natural gas to third party marketers, and also the sale of RECs to various counterparties.

Wholesale market sales transactions include sales of energy and energy-related products into the ISO-NE wholesale electricity market, sales of natural gas to third-party marketers, and the sale of RECs to various counterparties.

ISO-NE oversees the region's wholesale electricity market and administers the transactions and terms and conditions, including payment terms, which are established in the ISO-NE tariff, between the buyers and sellers in the market.

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Other revenues also include revenues from Eversource's service company, which is eliminated in consolidation.

Amortization of/(Reserve for) Revenues Subject to Refund:

A reserve is recorded as a reduction to revenues when future refunds to customers are deemed probable.

The reserve is reversed as refunds are provided to customers in rates.

Amortization of Revenues Subject to Refund within the Electric Distribution segment in 2022 represents the reversal of a 2021 reserve at CL&P established to provide bill credits to customers as a result of the settlement agreement on October 1, 2021 and a storm performance penalty assessed by PURA.

The reserve of $ 93.4 million was reversed as customer credits were distributed to CL&P’s customers in retail electric rates in 2021 and 2022.

Alternative Revenue Programs:

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( 6,048.0 ) ( 1,314.4 ) ( 302.2 ) ( 27.4 ) ( 3.9 ) 1,615.6 ( 6,080.3 )

Loss on Pending Sale of Aquarion — — — ( 297.0 ) — — ( 297.0 )

Operating Income/(Loss) 944.1 438.7 1,106.4 ( 225.0 ) 144.5 — 2,408.7

Operating Income 986.5 534.8 1,176.7 67.1 223.5 — 2,988.6

Interest Expense ( 386.3 ) ( 119.4 ) ( 171.6 ) ( 30.8 ) ( 701.2 ) 166.0 ( 1,243.3 )

Loss on Offshore Wind Investments — — — — ( 464.0 ) — ( 464.0 )

Loss on Offshore Wind — — — — ( 284.0 ) — ( 284.0 )

Interest Income 98.2 26.8 0.4 0.1 166.0 ( 166.0 ) 125.5

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Income Tax (Expense)/Benefit ( 182.6 ) ( 112.2 ) ( 266.8 ) 1.7 419.6 — ( 140.3 )

Net Income/(Loss) 636.3 291.0 727.5 ( 253.7 ) 777.5 ( 1,359.4 ) 819.2

Net Income 671.7 360.5 779.6 44.2 1,767.4 ( 1,923.5 ) 1,699.9

Net Income Attributable to Noncontrolling Interests ( 4.6 ) — ( 2.9 ) — — — ( 7.5 )

Net Income/(Loss) Attributable to

Common Shareholders $ 631.7 $ 291.0 $ 724.6 $ ( 253.7 ) $ 777.5 $ ( 1,359.4 ) $ 811.7

Net Income Attributable to Common Shareholders $ 667.1 $ 360.5 $ 776.7 $ 44.2 $ 1,767.4 $ ( 1,923.5 ) $ 1,692.4

Total Assets (as of) $ 34,858.1 $ 10,865.5 $ 17,193.9 $ 2,977.6 $ 29,743.3 $ ( 31,851.7 ) $ 63,786.7

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( 5,685.3 ) ( 1,007.1 ) ( 276.0 ) ( 26.3 ) ( 7.6 ) 1,596.5 ( 5,405.8 )

Operating Income 850.7 344.9 994.2 59.4 148.0 2.1 2,399.3

Loss on Pending Sale of Aquarion — — — ( 297.0 ) — — ( 297.0 )

Operating Income/(Loss) 944.1 438.7 1,106.4 ( 225.0 ) 144.5 — 2,408.7

Interest Expense ( 359.1 ) ( 99.2 ) ( 172.4 ) ( 36.2 ) ( 662.7 ) 218.3 ( 1,111.3 )

Loss on Offshore Wind Investments — — — — ( 2,167.0 ) — ( 2,167.0 )

Loss on Offshore Wind — — — — ( 464.0 ) — ( 464.0 )

Interest Income 114.6 23.2 0.3 0.1 218.3 ( 218.3 ) 138.2

Other Income/(Loss), Net 136.2 20.4 41.2 5.9 ( 261.8 ) 312.0 253.9

Other Income, Net 134.7 22.4 50.5 7.2 1,416.9 ( 1,359.4 ) 272.3

Income Tax (Expense)/Benefit ( 198.0 ) ( 94.1 ) ( 257.3 ) 0.2 124.5 — ( 424.7 )

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Interest Expense ( 291.7 ) ( 85.7 ) ( 163.7 ) ( 38.5 ) ( 425.3 ) 149.5 ( 855.4 )

Loss on Offshore Wind — — — — ( 2,167.0 ) — ( 2,167.0 )

Interest Income 74.5 18.2 0.4 — 150.6 ( 149.5 ) 94.2

Other Income, Net 180.4 33.6 37.9 8.5 1,600.8 ( 1,565.6 ) 295.6

Other Income/(Loss), Net 136.2 20.4 41.2 5.9 ( 261.8 ) 312.0 253.9

Income Tax (Expense)/Benefit ( 157.1 ) ( 73.0 ) ( 225.8 ) 6.3 289.9 — ( 159.7 )

Net Income 597.4 234.2 599.5 36.8 1,508.0 ( 1,563.5 ) 1,412.4

Net Income/(Loss) 612.6 224.8 646.3 33.1 ( 2,265.6 ) 314.1 ( 434.7 )

Net Income Attributable to Noncontrolling Interests ( 4.6 ) — ( 2.9 ) — — — ( 7.5 )

Net Income Attributable to Common Shareholders $ 592.8 $ 234.2 $ 596.6 $ 36.8 $ 1,508.0 $ ( 1,563.5 ) $ 1,404.9

Net Income/(Loss) Attributable to

Common Shareholders $ 608.0 $ 224.8 $ 643.4 $ 33.1 $ ( 2,265.6 ) $ 314.1 $ ( 442.2 )

Cash Flows Used for Investments in Plant $ 1,668.1 $ 844.1 $ 1,406.3 $ 167.0 $ 251.3 $ — $ 4,336.8

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ASSETS HELD FOR SALE

In early 2024, Eversource initiated an exploratory assessment of the potential sale of the Aquarion water distribution business.

In December 2024, final bids were received, and Eversource obtained approval from its Board of Trustees to sell the Aquarion water distribution business.

On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion.

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.

The sale is subject to approval by PURA, DPU and the NHPUC, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act as well as other customary closing conditions.

The sale is expected to close in late 2025.

Eversource plans to use the net proceeds from the pending sale to pay down parent company debt.

The assets and liabilities of the Aquarion water distribution business met the criteria to be classified as held for sale and have been classified separately as current or long-term assets and liabilities held for sale on the Eversource balance sheet as of December 31, 2024.

As Eversource concluded this is the sale of a business, all goodwill held by the water distribution reporting unit was included in the carrying amount of the business and is also classified within assets held for sale.

Long-term debt will be repaid by Eversource upon closing and is therefore excluded from liabilities held for sale.

In December 2024, Eversource obtained approval from its Board of Trustees to sell the Aquarion water distribution business.

On January 27, 2025, Eversource entered into a definitive agreement to sell Aquarion to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority.

In June 2024, a Connecticut law chartered AWA and enabled it to acquire, own and operate Aquarion as a not-for-profit water authority.

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.

The sale requires approval by PURA and the DPU, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act, for which the relevant waiting period has expired, as well as other customary closing conditions.

Regulatory approvals in New Hampshire and Maine were received.

Eversource plans to use the net proceeds from sale to pay down parent company debt.

On November 19, 2025, PURA denied the application to approve the sale, finding that the transaction did not meet managerial suitability and responsibility requirements due to concerns with governance and oversight structure over Aquarion and its consumer advocate.

On December 2, 2025, the denial was appealed to the Connecticut Superior Court.

On January 15, 2026, the Court issued its decision, sustaining the appeal and remanding back to PURA, finding that PURA acted illegally in denying the application as those disputed governance elements were mandated under Connecticut law.

The Court upheld that operational aspects of the consumer advocate were within PURA’s statutory authority and regulatory discretion.

A final decision is expected by PURA on March 25, 2026.

The assets and liabilities of the Aquarion water distribution business had previously met the criteria to be classified as held for sale as of December 31, 2024 and were classified separately as current or long-term assets and liabilities held for sale on the Eversource balance sheet.

As Eversource had concluded this was the sale of a business, all goodwill held by the water distribution reporting unit was included in the carrying amount of the business and was also classified within assets held for sale at that time.

Aquarion’s long-term debt was expected to be repaid by Eversource upon closing and was therefore excluded from liabilities held for sale.

Assets and liabilities classified as held for sale are measured at the lower of carrying amount or fair value less costs to sell.

Closing of the transaction includes the finalization of working capital and other closing adjustments as well as final closing costs, which could result in a loss recorded at the time of sale.

The water distribution business did not meet the criteria to be presented as a discontinued operation.

In the fourth quarter of 2024, upon classifying the assets and liabilities as held for sale, Eversource concluded that the likely sale of Aquarion at a loss resulted in the requirement to test water distribution goodwill for impairment.

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The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.

The water distribution business did not and will not meet the criteria to be presented as a discontinued operation.

Based on PURA’s November 19, 2025 denial of the sale and the uncertainty of the ultimate outcome, the Aquarion water distribution business no longer met the criteria to be classified as held for sale and its assets and liabilities were reclassified as held and used on the balance sheet as of December 31, 2025.

The reclassification to held and used did not result in an adjustment to Aquarion’s carrying values.

As of December 31, 2024, the major classes of Aquarion’s assets and liabilities presented in current and long-term Assets Held for Sale and Liabilities Held for Sale on the Eversource balance sheet, which are included in the Water Distribution reportable segment, were as follows:

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Total Long-Term Liabilities Held for Sale $ 398.9

For the years ended December 31, 2024, 2023 and 2022, pre-tax income associated with the held for sale water distribution business (excluding the goodwill impairment recognized in 2024) was $ 43.1 million, $ 26.8 million and $ 33.6 million, respectively.

For the years ended December 31, 2024 and 2023, pre-tax income associated with the held for sale water distribution business (excluding the goodwill impairment recognized in 2024) was $ 43.1 million and $ 26.8 million, respectively.

In a business combination, the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill.

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Balance as of January 1, 2024 $ 2,543.6 $ 576.8 $ 451.0 $ 960.7 $ 4,532.1

Water Acquisitions — — — 9.5 9.5

Balance as of December 31, 2023 $ 2,543.6 $ 576.8 $ 451.0 $ 960.7 $ 4,532.1

Water Sale and Acquisition, net — — — ( 1.2 ) ( 1.2 )

Sale of Water Unregulated Business and Water Acquisition, net — — — ( 1.2 ) ( 1.2 )

Water Goodwill Impairment — — — ( 297.0 ) ( 297.0 )

1 unchanged sentence

Balance as of December 31, 2024 $ 2,543.6 $ 576.8 $ 451.0 $ — $ 3,571.4

In 2023, Eversource completed two water acquisitions resulting in the addition of $ 9.5 million of goodwill.

Measurement Period Adjustment — — — ( 0.1 ) ( 0.1 )

Water Goodwill Reclassified from Held for Sale — — — 662.5 662.5

Balance as of December 31, 2025 $ 2,543.6 $ 576.8 $ 451.0 $ 662.4 $ 4,233.8

In 2024, Eversource completed the sale of its unregulated water business resulting in a reduction to goodwill of $ 5.4 million and completed a water acquisition resulting in the addition of $ 4.2 million of goodwill.

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A resulting write-down, if any, would be charged to Operating Expenses.

Eversource completed its annual goodwill impairment assessment for the Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution reporting units as of October 1, 2024 and determined that no impairment existed.

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.

Key considerations include discount rates, utility sector market performance and merger transaction multiples, the Company's share price and credit ratings, analyst reports, financial performance, cost and risk factors, internal estimates and projections of future cash flows and net income, long-term strategy, the timing and outcome of rate cases, and recent regulatory and legislative proceedings.

In the fourth quarter of 2024, Eversource 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.

1 unchanged sentence

Assumptions used in the valuation were the future cash flows from the sale, including approximately $ 140 million of estimated income tax impacts as a result of the transaction.

Based on the interim impairment test, Eversource recorded a goodwill impairment of $ 297 million to write down the carrying value of the water distribution reporting unit to its estimated fair value.

Based on the interim impairment test as of December 31, 2024, Eversource recorded a goodwill impairment of $ 297.0 million to write down the carrying value of the Water Distribution reporting unit to its estimated fair value.

The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.

The remaining goodwill held by the water distribution reporting unit was reclassified to Assets Held for Sale on the Eversource balance sheet as of December 31, 2024.

The remaining goodwill held by the Water Distribution reporting unit was reclassified to Assets Held for Sale on the Eversource balance sheet as of December 31, 2024 and became part of the water distribution disposal group.

Eversource completed its annual goodwill impairment assessment for the Electric Distribution, Electric Transmission and Natural Gas Distribution reporting units as of October 1, 2025 and determined it was more likely than not that their fair value exceeded carrying value and no impairment existed.

As of October 1, 2025, the goodwill of the Water Distribution reporting unit was classified within Assets Held for Sale, and the disposal group was carried at fair value less cost to sell.

Based on PURA’s November 19, 2025 denial of the Aquarion sale and the uncertainty of the ultimate outcome, the Aquarion water distribution business no longer met the criteria to be classified as held for sale.

The goodwill held by the Water Distribution reporting unit of $ 662.5 million that was previously classified within Assets Held for Sale has been reclassified to Goodwill on the Eversource balance sheet as of December 31, 2025.

In the fourth quarter of 2025, Eversource performed a goodwill impairment test for Water Distribution goodwill and determined that no impairment existed.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

1 unchanged sentence

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 8. Financial Statements and Supplementary Data