eversourcelogo.jpg
 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended March 31, 2019
 
or
¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
SECURITIES EXCHANGE ACT OF 1934
 

For the transition period from ____________ to ____________


Commission
File Number
Registrant; State of Incorporation;
Address; and Telephone Number
I.R.S. Employer
Identification No.
 
 
 
1-5324
EVERSOURCE ENERGY
(a Massachusetts voluntary association)
300 Cadwell Drive
Springfield, Massachusetts 01104
Telephone:  (800) 286-5000
04-2147929
 
 
 
0-00404
THE CONNECTICUT LIGHT AND POWER COMPANY
(a Connecticut corporation)
107 Selden Street
Berlin, Connecticut 06037-1616
Telephone:  (800) 286-5000
06-0303850
 
 
 
1-02301
NSTAR ELECTRIC COMPANY
(a Massachusetts corporation)
800 Boylston Street
Boston, Massachusetts 02199
Telephone:  (800) 286-5000
04-1278810
 
 
 
1-6392
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(a New Hampshire corporation)
Energy Park
780 North Commercial Street
Manchester, New Hampshire 03101-1134
Telephone:  (800) 286-5000
02-0181050
 
 
 


 
 

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
 
Yes
No
 
x
¨

Indicate by check mark whether the registrants have submitted electronically and posted on its corporate Web sites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).
 
Yes
No
 
x
¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large
accelerated filer
 
Accelerated
filer
 
Non-accelerated
filer
 
Smaller reporting company
 
Emerging growth company
 
 
 
 
 
 
 
 
 
 
Eversource Energy
x
 
¨
 
¨
 
¨
 
¨
The Connecticut Light and Power Company
¨
 
¨
 
x
 
¨
 
¨
NSTAR Electric Company
¨
 
¨
 
x
 
¨
 
¨
Public Service Company of New Hampshire
¨
 
¨
 
x
 
¨
 
¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):
 
Yes
No
 
 
 
Eversource Energy
¨
x
The Connecticut Light and Power Company
¨
x
NSTAR Electric Company
¨
x
Public Service Company of New Hampshire
¨
x

Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date:
Company - Class of Stock
Outstanding as of April 30, 2019
 
 
Eversource Energy Common Shares, $5.00 par value
317,461,097 shares
The Connecticut Light and Power Company Common Stock, $10.00 par value
6,035,205 shares
NSTAR Electric Company Common Stock, $1.00 par value
200 shares
Public Service Company of New Hampshire Common Stock, $1.00 par value
301 shares

Eversource Energy holds all of the 6,035,205 shares, 200 shares, and 301 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire, respectively.

NSTAR Electric Company and Public Service Company of New Hampshire each meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10‑Q.

Eversource Energy, The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire each separately file this combined Form 10-Q.  Information contained herein relating to any individual registrant is filed by such registrant on its own behalf.  Each registrant makes no representation as to information relating to the other registrants.




GLOSSARY OF TERMS

The following is a glossary of abbreviations and acronyms that are found in this report:
Current or former Eversource Energy companies, segments or investments:
Eversource, ES or the Company
Eversource Energy and subsidiaries
Eversource parent or ES parent
Eversource Energy, a public utility holding company
ES parent and other companies
ES parent and other companies are comprised of Eversource parent, Eversource Service, Eversource Water Ventures, Inc. (parent company of Aquarion), and other subsidiaries, which primarily includes our unregulated businesses, HWP Company, The Rocky River Realty Company (a real estate subsidiary), the consolidated operations of CYAPC and YAEC, and Eversource parent's equity ownership interests that are not consolidated
CL&P
The Connecticut Light and Power Company
NSTAR Electric
NSTAR Electric Company
PSNH
Public Service Company of New Hampshire
PSNH Funding
PSNH Funding LLC 3, a bankruptcy remote, special purpose, wholly-owned subsidiary of PSNH
NSTAR Gas
NSTAR Gas Company
Yankee Gas
Yankee Gas Services Company
Aquarion
Eversource Aquarion Holdings, Inc. and its subsidiaries (formerly known as Macquarie Utilities Inc)
NPT
Northern Pass Transmission LLC
Northern Pass
The HVDC and associated alternating-current transmission line project from Canada into New Hampshire
Eversource Service
Eversource Energy Service Company
Bay State Wind
A project being developed jointly by Eversource and Denmark-based Ørsted (formerly known as DONG Energy) to construct an offshore wind farm off the coast of Massachusetts
CYAPC
Connecticut Yankee Atomic Power Company
MYAPC
Maine Yankee Atomic Power Company
YAEC
Yankee Atomic Electric Company
Yankee Companies
CYAPC, YAEC and MYAPC
Regulated companies
The Eversource regulated companies are comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric and PSNH, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, NPT, Aquarion, and the solar power facilities of NSTAR Electric
Regulators:
 
DEEP
Connecticut Department of Energy and Environmental Protection
DOE
U.S. Department of Energy
DOER
Massachusetts Department of Energy Resources
DPU
Massachusetts Department of Public Utilities
EPA
U.S. Environmental Protection Agency
FERC
Federal Energy Regulatory Commission
ISO-NE
ISO New England, Inc., the New England Independent System Operator
MA DEP
Massachusetts Department of Environmental Protection
NHPUC
New Hampshire Public Utilities Commission
PURA
Connecticut Public Utilities Regulatory Authority
SEC
U.S. Securities and Exchange Commission
SJC
Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
ADIT
Accumulated Deferred Income Taxes
AFUDC
Allowance For Funds Used During Construction
AOCI
Accumulated Other Comprehensive Income
ARO
Asset Retirement Obligation
Bcf
Billion cubic feet
C&LM
Conservation and Load Management
CfD
Contract for Differences
CTA
Competitive Transition Assessment
CWIP
Construction Work in Progress
EDC
Electric distribution company
EDIT
Excess Deferred Income Taxes
EPS
Earnings Per Share
ERISA
Employee Retirement Income Security Act of 1974

i



ESOP
Employee Stock Ownership Plan
Eversource 2018 Form 10-K
The Eversource Energy and Subsidiaries 2018 combined Annual Report on Form 10-K as filed with the SEC
Fitch
Fitch Ratings
FMCC
Federally Mandated Congestion Charge
FTR
Financial Transmission Rights
GAAP
Accounting principles generally accepted in the United States of America
GSC
Generation Service Charge
GSRP
Greater Springfield Reliability Project
GWh
Gigawatt-Hours
HQ
Hydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDC
High-voltage direct current
Hydro Renewable Energy
Hydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec
IPP
Independent Power Producers
ISO-NE Tariff
ISO-NE FERC Transmission, Markets and Services Tariff
kV
Kilovolt
kVa
Kilovolt-ampere
kW
Kilowatt (equal to one thousand watts)
kWh
Kilowatt-Hours (the basic unit of electricity energy equal to one kilowatt of power supplied for one hour)
LBR
Lost Base Revenue
LNG
Liquefied natural gas
LRS
Supplier of last resort service
MG
Million gallons
MGP
Manufactured Gas Plant
MMBtu
One million British thermal units
MMcf
Million cubic feet
Moody's
Moody's Investors Services, Inc.
MW
Megawatt
MWh
Megawatt-Hours
NEEWS
New England East-West Solution
NETOs
New England Transmission Owners (including Eversource, National Grid and Avangrid)
OCI
Other Comprehensive Income/(Loss)
PAM
Pension and PBOP Rate Adjustment Mechanism
PBOP
Postretirement Benefits Other Than Pension
PBOP Plan
Postretirement Benefits Other Than Pension Plan
PCRBs
Pollution Control Revenue Bonds
Pension Plan
Single uniform noncontributory defined benefit retirement plan
PPA
Pension Protection Act
RECs
Renewable Energy Certificates
Regulatory ROE
The average cost of capital method for calculating the return on equity related to the distribution business segment excluding the wholesale transmission segment
RNS
Regional Network Service
ROE
Return on Equity
RRBs
Rate Reduction Bonds or Rate Reduction Certificates
RSUs
Restricted share units
S&P
Standard & Poor's Financial Services LLC
SBC
Systems Benefits Charge
SCRC
Stranded Cost Recovery Charge
SERP
Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SS
Standard service
TCAM
Transmission Cost Adjustment Mechanism
TSA
Transmission Service Agreement
UI
The United Illuminating Company
VIE
Variable Interest Entity


ii



EVERSOURCE ENERGY AND SUBSIDIARIES   
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

TABLE OF CONTENTS
 
Page
PART I – FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Common Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
Condensed Statements of Common Stockholder's Equity
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Common Stockholder's Equity
 
 
 
 
 
Public Service Company of New Hampshire and Subsidiaries (Unaudited)
 
 
 
 
 
Condensed Consolidated Statements of Common Stockholder's Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II – OTHER INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

iii




EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)
As of March 31, 2019

As of December 31, 2018





ASSETS
 


 
Current Assets:
 


 
Cash
$
35,145


$
108,068

Receivables, Net
1,140,348


994,055

Unbilled Revenues
159,288


176,285

Fuel, Materials, Supplies and Inventory
277,104

 
238,042

Regulatory Assets
507,255


514,779

Prepayments and Other Current Assets
181,724


260,995

Total Current Assets
2,300,864


2,292,224







Property, Plant and Equipment, Net
26,032,781


25,610,428







Deferred Debits and Other Assets:
 


 

Regulatory Assets
4,589,427


4,631,137

Goodwill
4,427,266


4,427,266

Investments in Unconsolidated Affiliates
711,476

 
464,286

Marketable Securities
415,405


417,508

Other Long-Term Assets
463,788


398,407

Total Deferred Debits and Other Assets
10,607,362


10,338,604







Total Assets
$
38,941,007


$
38,241,256





LIABILITIES AND CAPITALIZATION
 

 
Current Liabilities:
 

 
Notes Payable
$
1,477,830


$
910,000

Long-Term Debt – Current Portion
805,519


837,319

Rate Reduction Bonds – Current Portion
43,210

 
52,332

Accounts Payable
1,006,774


1,119,995

Regulatory Liabilities
385,442


370,230

Other Current Liabilities
840,587


823,006

Total Current Liabilities
4,559,362


4,112,882





Deferred Credits and Other Liabilities:
 

 
Accumulated Deferred Income Taxes
3,543,052


3,506,030

Regulatory Liabilities
3,627,389


3,609,475

Derivative Liabilities
372,957


379,562

Accrued Pension, SERP and PBOP
939,786


962,510

Other Long-Term Liabilities
1,259,400


1,196,336

Total Deferred Credits and Other Liabilities
9,742,584


9,653,913







Long-Term Debt
12,284,330


12,248,743

 
 
 
 
Rate Reduction Bonds
561,727

 
583,331

 
 
 
 
Noncontrolling Interest – Preferred Stock of Subsidiaries
155,570


155,570







Common Shareholders' Equity:


 
Common Shares
1,669,392


1,669,392

Capital Surplus, Paid In
6,242,089


6,241,222

Retained Earnings
4,092,895


3,953,974

Accumulated Other Comprehensive Loss
(57,804
)

(60,000
)
Treasury Stock
(309,138
)

(317,771
)
Common Shareholders' Equity
11,637,434


11,486,817

 
 
 
 
Commitments and Contingencies (Note 9)


 








Total Liabilities and Capitalization
$
38,941,007


$
38,241,256


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

1



EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars, Except Share Information)
2019
 
2018
 
 
 
 
Operating Revenues
$
2,415,792

 
$
2,287,962

 
 
 
 
Operating Expenses:
 
 
 
Purchased Power, Fuel and Transmission
974,882

 
946,747

Operations and Maintenance
335,597

 
332,549

Depreciation
214,948

 
204,266

Amortization
70,961

 
45,194

Energy Efficiency Programs
140,116

 
134,241

Taxes Other Than Income Taxes
184,588

 
182,433

Total Operating Expenses
1,921,092

 
1,845,430

Operating Income
494,700

 
442,532

Interest Expense
131,734

 
121,129

Other Income, Net
30,985

 
33,789

Income Before Income Tax Expense
393,951

 
355,192

Income Tax Expense
83,393

 
83,766

Net Income
310,558

 
271,426

Net Income Attributable to Noncontrolling Interests
1,880

 
1,880

Net Income Attributable to Common Shareholders
$
308,678

 
$
269,546

 
 
 
 
Basic and Diluted Earnings Per Common Share
$
0.97

 
$
0.85

 
 
 
 
Weighted Average Common Shares Outstanding:
 
 
 
Basic
317,624,593

 
317,397,052

Diluted
318,316,082

 
317,992,999


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


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Net Income
$
310,558

 
$
271,426

Other Comprehensive Income, Net of Tax:
 
 
 
Qualified Cash Flow Hedging Instruments
316

 
724

Changes in Unrealized Gains/(Losses) on Marketable Securities
655

 
(444
)
Changes in Funded Status of Pension, SERP and PBOP Benefit Plans
1,225

 
2,993

Other Comprehensive Income, Net of Tax
2,196

 
3,273

Comprehensive Income Attributable to Noncontrolling Interests
(1,880
)
 
(1,880
)
Comprehensive Income Attributable to Common Shareholders
$
310,874

 
$
272,819


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

2



EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(Unaudited)
 
For the Three Months Ended March 31, 2019
 
Common Shares
 
Capital
Surplus,
Paid In
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
 
Treasury Stock
 
Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)
Shares
 
Amount
Balance as of January 1, 2019
316,885,808

 
$
1,669,392

 
$
6,241,222

 
$
3,953,974

 
$
(60,000
)
 
$
(317,771
)
 
$
11,486,817

Net Income
 

 
 

 
 
 
310,558

 
 
 
 
 
310,558

Dividends on Common Shares - $0.535 Per Share
 

 
 

 
 
 
(169,757
)
 
 
 
 
 
(169,757
)
Dividends on Preferred Stock
 

 
 

 
 
 
(1,880
)
 
 
 
 
 
(1,880
)
Long-Term Incentive Plan Activity
 

 
 

 
(16,609
)
 
 
 
 
 
 
 
(16,609
)
Issuance of Treasury Shares
461,662

 
 

 
17,476

 
 
 
 
 
8,633

 
26,109

Other Comprehensive Income
 

 
 

 
 
 
 
 
2,196

 
 
 
2,196

Balance as of March 31, 2019
317,347,470

 
$
1,669,392

 
$
6,242,089

 
$
4,092,895

 
$
(57,804
)
 
$
(309,138
)
 
$
11,637,434

 
For the Three Months Ended March 31, 2018
 
Common Shares
 
Capital
Surplus,
Paid In
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
 
Treasury Stock
 
Total Common Shareholders' Equity
(Thousands of Dollars, Except Share Information)
Shares
 
Amount
Balance as of January 1, 2018
316,885,808

 
$
1,669,392

 
$
6,239,940

 
$
3,561,084

 
$
(66,403
)
 
$
(317,771
)
 
$
11,086,242

Net Income
 

 
 

 
 
 
271,426

 
 
 
 
 
271,426

Dividends on Common Shares - $0.505 Per Share
 

 
 

 
 
 
(160,027
)
 
 
 
 
 
(160,027
)
Dividends on Preferred Stock
 

 
 

 
 
 
(1,880
)
 
 
 
 
 
(1,880
)
Long-Term Incentive Plan Activity
 

 
 

 
(15,320
)
 
 
 
 
 
 
 
(15,320
)
Other Comprehensive Income
 

 
 

 
 
 
 
 
3,273

 
 
 
3,273

Balance as of March 31, 2018
316,885,808

 
$
1,669,392

 
$
6,224,620

 
$
3,670,603

 
$
(63,130
)
 
$
(317,771
)
 
$
11,183,714


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



3



EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018




Operating Activities:
 

 
Net Income
$
310,558


$
271,426

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
 

 
Depreciation
214,948


204,266

Deferred Income Taxes
18,085


88,481

Uncollectible Expense
18,565

 
19,613

Pension, SERP and PBOP Expense/(Income), Net
8,428


(1,965
)
Pension and PBOP Contributions
(4,700
)

(171,244
)
Regulatory (Under)/Over Recoveries, Net
(19,232
)

70,457

Amortization
70,961


45,194

Other
(37,310
)

(74,582
)
Changes in Current Assets and Liabilities:
 

 
Receivables and Unbilled Revenues, Net
(155,823
)

(156,888
)
Fuel, Materials, Supplies and Inventory
(39,063
)

(26,956
)
Taxes Receivable/Accrued, Net
126,381


(5,061
)
Accounts Payable
(13,556
)

(61,571
)
Other Current Assets and Liabilities, Net
(70,242
)

(23,456
)
Net Cash Flows Provided by Operating Activities
428,000


177,714





Investing Activities:
 

 
Investments in Property, Plant and Equipment
(674,694
)

(607,334
)
Proceeds from Sales of Marketable Securities
234,497


145,438

Purchases of Marketable Securities
(237,794
)

(143,264
)
Proceeds from the Sale of PSNH Generation Assets

 
130,641

Investments in Unconsolidated Affiliates
(249,138
)
 
(7,340
)
Other Investing Activities
4,893


2,140

Net Cash Flows Used in Investing Activities
(922,236
)

(479,719
)




Financing Activities:
 

 
Cash Dividends on Common Shares
(169,757
)

(160,027
)
Cash Dividends on Preferred Stock
(1,880
)

(1,880
)
Issuance of Treasury Shares
26,109

 

Increase/(Decrease) in Notes Payable
829,430


(240,005
)
Repayment of Rate Reduction Bonds
(30,727
)
 

Issuance of Long-Term Debt


1,150,000

Retirement of Long-Term Debt
(250,215
)

(150,218
)
Other Financing Activities
(9,676
)

(19,140
)
Net Cash Flows Provided by Financing Activities
393,284


578,730

Net (Decrease)/Increase in Cash and Restricted Cash
(100,952
)

276,725

Cash and Restricted Cash - Beginning of Period
209,324


85,890

Cash and Restricted Cash - End of Period
$
108,372


$
362,615


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



4




THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)
As of March 31, 2019
 
As of December 31, 2018
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash
$
7,496

 
$
87,721

Receivables, Net
443,684

 
397,026

Accounts Receivable from Affiliated Companies
30,363

 
23,082

Unbilled Revenues
51,300

 
56,971

Materials and Supplies
52,109

 
44,529

Regulatory Assets
147,712

 
125,155

Prepaid Property Taxes
41,341

 
19,555

Prepayments and Other Current Assets
20,384

 
40,724

Total Current Assets
794,389

 
794,763

 
 
 
 
Property, Plant and Equipment, Net
9,065,880

 
8,909,701

 
 
 
 
Deferred Debits and Other Assets:
 
 
 
Regulatory Assets
1,496,679

 
1,505,488

Other Long-Term Assets
197,571

 
199,767

Total Deferred Debits and Other Assets
1,694,250

 
1,705,255

 
 
 
 
Total Assets
$
11,554,519

 
$
11,409,719

 
 
 
 
LIABILITIES AND CAPITALIZATION
 
 
 
Current Liabilities:
 
 
 
Long-Term Debt – Current Portion
$

 
$
250,000

Accounts Payable
347,928

 
324,983

Accounts Payable to Affiliated Companies
94,738

 
26,452

Obligations to Third Party Suppliers
56,065

 
56,248

Accrued Taxes
55,693

 
38,205

Accrued Interest
42,424

 
38,395

Regulatory Liabilities
106,489

 
109,614

Derivative Liabilities
59,651

 
55,058

Other Current Liabilities
71,461

 
84,488

Total Current Liabilities
834,449

 
983,443

 
 
 
 
Deferred Credits and Other Liabilities:
 
 
 
Accumulated Deferred Income Taxes
1,184,425

 
1,166,784

Regulatory Liabilities
1,126,279

 
1,122,157

Derivative Liabilities
372,774

 
379,536

Accrued Pension, SERP and PBOP
279,914

 
282,771

Other Long-Term Liabilities
165,307

 
155,495

Total Deferred Credits and Other Liabilities
3,128,699

 
3,106,743

 
 
 
 
Long-Term Debt
3,265,756

 
3,004,016

 
 
 
 
Preferred Stock Not Subject to Mandatory Redemption
116,200

 
116,200

 
 
 
 
Common Stockholder's Equity:
 
 
 
Common Stock
60,352

 
60,352

Capital Surplus, Paid In
2,410,765

 
2,410,765

Retained Earnings
1,737,980

 
1,727,899

Accumulated Other Comprehensive Income
318

 
301

Common Stockholder's Equity
4,209,415

 
4,199,317

 
 
 
 
Commitments and Contingencies (Note 9)


 


 
 
 
 
Total Liabilities and Capitalization
$
11,554,519

 
$
11,409,719


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

5



THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Operating Revenues
$
849,246

 
$
784,983

 
 
 
 
Operating Expenses:
 
 
 
Purchased Power and Transmission
319,833

 
301,889

Operations and Maintenance
130,637

 
117,292

Depreciation
73,289

 
67,498

Amortization of Regulatory Assets, Net
35,671

 
28,006

Energy Efficiency Programs
25,988

 
22,760

Taxes Other Than Income Taxes
92,000

 
90,300

Total Operating Expenses
677,418

 
627,745

Operating Income
171,828

 
157,238

Interest Expense
35,781

 
36,823

Other Income, Net
3,880

 
6,560

Income Before Income Tax Expense
139,927

 
126,975

Income Tax Expense
29,456

 
28,407

Net Income
$
110,471

 
$
98,568


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


CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Net Income
$
110,471

 
$
98,568

Other Comprehensive Income, Net of Tax:
 
 
 
Qualified Cash Flow Hedging Instruments
(6
)
 
52

Changes in Unrealized Gains/(Losses) on Marketable Securities
23

 
(12
)
Other Comprehensive Income, Net of Tax
17

 
40

Comprehensive Income
$
110,488

 
$
98,608


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


6



THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
 
For the Three Months Ended March 31, 2019
 
Common Stock
 
Capital
Surplus,
Paid In
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income
 
Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)
Stock
 
Amount
 
 
 
 
Balance as of January 1, 2019
6,035,205

 
$
60,352

 
$
2,410,765

 
$
1,727,899

 
$
301

 
$
4,199,317

Net Income
 

 
 

 
 
 
110,471

 
 
 
110,471

Dividends on Preferred Stock
 

 
 

 
 
 
(1,390
)
 
 
 
(1,390
)
Dividends on Common Stock
 

 
 

 
 
 
(99,000
)
 
 
 
(99,000
)
Other Comprehensive Income
 

 
 

 
 
 
 
 
17

 
17

Balance as of March 31, 2019
6,035,205

 
$
60,352

 
$
2,410,765

 
$
1,737,980

 
$
318

 
$
4,209,415

 
For the Three Months Ended March 31, 2018
 
Common Stock
 
Capital
Surplus,
Paid In
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income
 
Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)
Stock
 
Amount
 
 
 
 
Balance as of January 1, 2018
6,035,205

 
$
60,352

 
$
2,110,765

 
$
1,415,741

 
$
269

 
$
3,587,127

Net Income
 

 
 

 
 
 
98,568

 
 
 
98,568

Dividends on Preferred Stock
 

 
 

 
 
 
(1,390
)
 
 
 
(1,390
)
Dividends on Common Stock
 

 
 

 
 
 
(60,000
)
 
 
 
(60,000
)
Capital Contributions from Eversource Parent
 

 
 

 
9,000

 
 
 
 
 
9,000

Other Comprehensive Income
 

 
 

 
 
 
 
 
40

 
40

Balance as of March 31, 2018
6,035,205

 
$
60,352

 
$
2,119,765

 
$
1,452,919

 
$
309

 
$
3,633,345


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


7



THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Operating Activities:
 
 
 
Net Income
$
110,471

 
$
98,568

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
 
 
 
Depreciation
73,289

 
67,498

Deferred Income Taxes
15,188

 
29,109

Uncollectible Expense
4,116

 
3,912

Pension, SERP, and PBOP Expense, Net
4,063

 
3,158

Pension Contributions

 
(82,276
)
Regulatory Underrecoveries, Net
(54,671
)
 
(8,878
)
Amortization of Regulatory Assets, Net
35,671

 
28,006

Other
(5,848
)
 
(18,940
)
Changes in Current Assets and Liabilities:
 
 
 
Receivables and Unbilled Revenues, Net
(60,506
)
 
(46,330
)
Taxes Receivable/Accrued, Net
41,399

 
42,460

Accounts Payable
75,373

 
(28,408
)
Other Current Assets and Liabilities, Net
(40,274
)
 
(23,160
)
Net Cash Flows Provided by Operating Activities
198,271

 
64,719

 
 
 
 
Investing Activities:
 
 
 
Investments in Property, Plant and Equipment
(189,423
)
 
(202,126
)
Other Investing Activities
59

 
56

Net Cash Flows Used in Investing Activities
(189,364
)
 
(202,070
)
 
 
 
 
Financing Activities:
 
 
 
Cash Dividends on Common Stock
(99,000
)
 
(60,000
)
Cash Dividends on Preferred Stock
(1,390
)
 
(1,390
)
Capital Contributions from Eversource Parent

 
9,000

Issuance of Long-Term Debt

 
500,000

Retirement of Long-Term Debt
(250,000
)
 

Increase/(Decrease) in Notes Payable to Eversource Parent
261,600

 
(69,500
)
Other Financing Activities
(326
)
 
(6,539
)
Net Cash Flows (Used in)/Provided by Financing Activities
(89,116
)
 
371,571

Net (Decrease)/Increase in Cash and Restricted Cash
(80,209
)
 
234,220

Cash and Restricted Cash - Beginning of Period
91,613

 
9,619

Cash and Restricted Cash - End of Period
$
11,404

 
$
243,839


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




8




NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)
As of March 31, 2019
 
As of December 31, 2018
 
 
 
 
ASSETS
 

 
 

Current Assets:
 
 
 
Cash
$
1,769

 
$
1,606

Receivables, Net
400,082

 
361,296

Accounts Receivable from Affiliated Companies
20,097

 
31,344

Unbilled Revenues
31,698

 
34,518

Materials, Supplies and Inventory
160,221

 
114,202

Regulatory Assets
234,662

 
241,747

Prepayments and Other Current Assets
24,643

 
51,960

Total Current Assets
873,172

 
836,673

 
 
 
 
Property, Plant and Equipment, Net
8,915,608

 
8,794,700

 
 
 
 
Deferred Debits and Other Assets:
 
 
 
Regulatory Assets
1,173,851

 
1,196,512

Prepaid PBOP
139,132

 
132,810

Other Long-Term Assets
134,536

 
109,764

Total Deferred Debits and Other Assets
1,447,519

 
1,439,086

 
 
 
 
Total Assets
$
11,236,299

 
$
11,070,459

 
 
 
 
LIABILITIES AND CAPITALIZATION
 
 
 
Current Liabilities:
 
 
 
Notes Payable
$
368,430

 
$
278,500

Notes Payable to Eversource Parent
22,300

 

Long-Term Debt – Current Portion
95,000

 

Accounts Payable
306,888

 
384,398

Accounts Payable to Affiliated Companies
115,676

 
89,636

Obligations to Third Party Suppliers
110,742

 
109,547

Renewable Portfolio Standards Compliance Obligations
175,391

 
139,898

Regulatory Liabilities
193,959

 
190,620

Other Current Liabilities
52,156

 
74,872

Total Current Liabilities
1,440,542

 
1,267,471

 
 
 
 
Deferred Credits and Other Liabilities:
 
 
 
Accumulated Deferred Income Taxes
1,305,518

 
1,294,467

Regulatory Liabilities
1,514,557

 
1,513,279

Accrued Pension and SERP
5,496

 
14,145

Other Long-Term Liabilities
293,794

 
263,096

Total Deferred Credits and Other Liabilities
3,119,365

 
3,084,987

 
 
 
 
Long-Term Debt
2,850,196

 
2,944,846

 
 
 
 
Preferred Stock Not Subject to Mandatory Redemption
43,000

 
43,000

 
 
 
 
Common Stockholder's Equity:
 
 
 
Common Stock

 

Capital Surplus, Paid In
1,653,442

 
1,633,442

Retained Earnings
2,131,015

 
2,098,091

Accumulated Other Comprehensive Loss
(1,261
)
 
(1,378
)
Common Stockholder's Equity
3,783,196

 
3,730,155

 
 
 
 
Commitments and Contingencies (Note 9)


 


 
 
 
 
Total Liabilities and Capitalization
$
11,236,299


$
11,070,459


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

9



NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Operating Revenues
$
797,612

 
$
770,127

 
 
 
 
Operating Expenses:
 

 
 

Purchased Power and Transmission
330,104

 
332,579

Operations and Maintenance
112,963

 
118,682

Depreciation
72,584

 
70,542

Amortization of Regulatory Assets, Net
22,584

 
6,364

Energy Efficiency Programs
76,729

 
74,793

Taxes Other Than Income Taxes
44,822

 
48,186

Total Operating Expenses
659,786

 
651,146

Operating Income
137,826

 
118,981

Interest Expense
27,881

 
26,464

Other Income, Net
11,086

 
12,601

Income Before Income Tax Expense
121,031

 
105,118

Income Tax Expense
27,017

 
27,969

Net Income
$
94,014

 
$
77,149


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


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Net Income
$
94,014

 
$
77,149

Other Comprehensive Income, Net of Tax:
 
 
 
  Changes in Funded Status of SERP Benefit Plan
1

 
1

  Qualified Cash Flow Hedging Instruments
110

 
109

  Changes in Unrealized Gains/(Losses) on Marketable Securities
6

 
(4
)
Other Comprehensive Income, Net of Tax
117

 
106

Comprehensive Income
$
94,131

 
$
77,255


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


10



NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
 
For the Three Months Ended March 31, 2019
 
Common Stock
 
Capital
Surplus,
Paid In
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)
Stock
 
Amount
 
 
 
 
Balance as of January 1, 2019
200

 
$

 
$
1,633,442

 
$
2,098,091

 
$
(1,378
)
 
$
3,730,155

Net Income
 

 
 

 
 
 
94,014

 
 
 
94,014

Dividends on Preferred Stock
 

 
 

 
 
 
(490
)
 
 
 
(490
)
Dividends on Common Stock
 

 
 

 
 
 
(60,600
)
 
 
 
(60,600
)
Capital Contributions from Eversource Parent
 

 
 

 
20,000

 
 
 
 
 
20,000

Other Comprehensive Income
 

 
 

 
 
 
 
 
117

 
117

Balance as of March 31, 2019
200

 
$

 
$
1,653,442

 
$
2,131,015

 
$
(1,261
)
 
$
3,783,196

 
For the Three Months Ended March 31, 2018
 
Common Stock
 
Capital
Surplus,
Paid In
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)
Stock
 
Amount
 
 
 
 
Balance as of January 1, 2018
200

 
$

 
$
1,502,942

 
$
1,944,961

 
$
(1,823
)
 
$
3,446,080

Net Income
 

 
 

 
 
 
77,149

 
 
 
77,149

Dividends on Preferred Stock
 

 
 

 
 
 
(490
)
 
 
 
(490
)
Dividends on Common Stock
 

 
 

 
 
 
(161,000
)
 
 
 
(161,000
)
Other
 

 
 

 
 
 
1

 
 
 
1

Capital Contributions from Eversource Parent
 

 
 

 
92,500

 
 
 
 
 
92,500

Other Comprehensive Income
 

 
 

 
 
 
 
 
106

 
106

Balance as of March 31, 2018
200

 
$

 
$
1,595,442

 
$
1,860,621

 
$
(1,717
)
 
$
3,454,346


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


11



NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Operating Activities:
 

 
 

Net Income
$
94,014

 
$
77,149

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
 

 
 

Depreciation
72,584

 
70,542

Deferred Income Taxes
3,722

 
22,542

Uncollectible Expense
5,953

 
7,526

Pension, SERP and PBOP Income, Net
(4,279
)
 
(9,295
)
Pension and PBOP Contributions
(1,503
)
 

Regulatory Overrecoveries, Net
4,329

 
17,618

Amortization of Regulatory Assets, Net
22,584

 
6,364

Other
(8,043
)
 
(9,730
)
Changes in Current Assets and Liabilities:
 

 
 

Receivables and Unbilled Revenues, Net
(29,220
)
 
(52,949
)
Materials, Supplies and Inventory
(46,020
)
 
(37,427
)
Taxes Receivable/Accrued, Net
29,483

 
(22,698
)
Accounts Payable
(18,109
)
 
43,170

Other Current Assets and Liabilities, Net
11,466

 
23,703

Net Cash Flows Provided by Operating Activities
136,961

 
136,515

 
 
 
 
Investing Activities:
 

 
 

Investments in Property, Plant and Equipment
(208,540
)
 
(192,036
)
Other Investing Activities
17

 
(654
)
Net Cash Flows Used in Investing Activities
(208,523
)
 
(192,690
)
 
 
 
 
Financing Activities:
 

 
 

Cash Dividends on Common Stock
(60,600
)
 
(161,000
)
Cash Dividends on Preferred Stock
(490
)
 
(490
)
Capital Contributions from Eversource Parent
20,000

 
92,500

Increase in Notes Payable to Eversource Parent
22,300

 

Increase in Notes Payable
89,930

 
133,000

Other Financing Activities
668

 
(78
)
Net Cash Flows Provided by Financing Activities
71,808

 
63,932

Increase in Cash and Restricted Cash
246

 
7,757

Cash and Restricted Cash - Beginning of Period
14,659

 
14,708

Cash and Restricted Cash - End of Period
$
14,905

 
$
22,465


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


12




PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)
As of March 31, 2019
 
As of December 31, 2018
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash
$
3,961

 
$
1,439

Receivables, Net
102,806

 
104,854

Accounts Receivable from Affiliated Companies
11,520

 
8,444

Unbilled Revenues
43,289

 
47,145

Taxes Receivable
7,441

 
25,913

Materials, Supplies and Inventory
37,361

 
37,504

Regulatory Assets
76,599

 
67,228

Special Deposits
21,059

 
47,498

Prepayments and Other Current Assets
2,940

 
17,564

Total Current Assets
306,976

 
357,589

 
 
 
 
Property, Plant and Equipment, Net
2,920,560

 
2,880,073

 
 
 
 
Deferred Debits and Other Assets:
 
 
 
Regulatory Assets
855,369

 
862,288

Other Long-Term Assets
29,884

 
27,406

Total Deferred Debits and Other Assets
885,253

 
889,694

 
 
 
 
Total Assets
$
4,112,789

 
$
4,127,356

 
 
 
 
LIABILITIES AND CAPITALIZATION
 
 
 
Current Liabilities:
 
 
 
Notes Payable to Eversource Parent
$
61,000

 
$
57,000

Long-Term Debt – Current Portion
150,000

 
150,000

Rate Reduction Bonds – Current Portion
43,210

 
52,332

Accounts Payable
106,398

 
111,292

Accounts Payable to Affiliated Companies
37,976

 
26,029

Regulatory Liabilities
45,655

 
55,526

Other Current Liabilities
55,088

 
64,046

Total Current Liabilities
499,327

 
516,225

 
 
 
 
Deferred Credits and Other Liabilities:
 
 
 
Accumulated Deferred Income Taxes
489,434

 
481,221

Regulatory Liabilities
429,932

 
428,069

Accrued Pension, SERP and PBOP
122,490

 
124,457

Other Long-Term Liabilities
37,956

 
36,339

Total Deferred Credits and Other Liabilities
1,079,812

 
1,070,086

 
 
 
 
Long-Term Debt
655,294

 
655,173

 
 
 
 
Rate Reduction Bonds
561,727

 
583,331

 
 
 
 
Common Stockholder's Equity:
 
 
 
Common Stock

 

Capital Surplus, Paid In
678,134

 
678,134

Retained Earnings
641,039

 
627,258

Accumulated Other Comprehensive Loss
(2,544
)
 
(2,851
)
Common Stockholder's Equity
1,316,629

 
1,302,541

 
 
 
 
Commitments and Contingencies (Note 9)


 


 
 
 
 
Total Liabilities and Capitalization
$
4,112,789

 
$
4,127,356


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


13



PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Operating Revenues
$
276,435

 
$
267,350

 
 
 
 
Operating Expenses:
 
 
 
Purchased Power, Fuel and Transmission
113,531

 
109,717

Operations and Maintenance
52,630

 
51,380

Depreciation
22,919

 
23,493

Amortization of Regulatory Assets, Net
13,667

 
5,035

Energy Efficiency Programs
6,714

 
5,157

Taxes Other Than Income Taxes
17,311

 
16,801

Total Operating Expenses
226,772

 
211,583

Operating Income
49,663

 
55,767

Interest Expense
14,367

 
12,772

Other Income, Net
7,022

 
4,749

Income Before Income Tax Expense
42,318

 
47,744

Income Tax Expense
9,537

 
12,651

Net Income
$
32,781

 
$
35,093


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


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
For the Three Months Ended March 31,
(Thousands of Dollars)
2019
 
2018
 
 
 
 
Net Income
$
32,781

 
$
35,093

Other Comprehensive Income, Net of Tax:
 
 
 
Qualified Cash Flow Hedging Instruments
269

 
290

Changes in Unrealized Gains/(Losses) on Marketable Securities
38

 
(21
)
Other Comprehensive Income, Net of Tax
307

 
269

Comprehensive Income
$
33,088

 
$
35,362


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


14



PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
(Unaudited)
 
For the Three Months Ended March 31, 2019
 
Common Stock
 
Capital
Surplus,
Paid In
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Common
Stockholder's
Equity
(Thousands of Dollars, Except Stock Information)
Stock
 
Amount
 
 
 
 
Balance as of January 1, 2019
301

 
$

 
$
678,134

 
$
627,258

 
$
(2,851
)
 
$
1,302,541

Net Income
 

 
 

 
 
 
32,781

 
 
 
32,781

Dividends on Common Stock
 

 
 

 
 
 
(19,000