Eversource's utility companies are subject to rate regulation that is based on cost recovery and meets the criteria for application of accounting guidance for rate-regulated operations, which considers the effect of regulation on the timing of the recognition of certain revenues and expenses. The regulated companies' financial statements reflect the effects of the rate-making process. The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, including a return on investment.

The application of accounting guidance for rate-regulated enterprises results in recording regulatory assets and liabilities. Regulatory assets represent the deferral of incurred costs that are probable of future recovery in customer rates. Regulatory assets are amortized as the incurred costs are recovered through customer rates. Regulatory liabilities represent either revenues received from customers to fund expected costs that have not yet been incurred or probable future refunds to customers.

Management believes it is probable that each of the regulated companies will recover its respective investments in long-lived assets and the regulatory assets that have been recorded. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the applicable costs would be charged to net income in the period in which the determination is made.


	As of June 30, 2026								As of December 31, 2025
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Storm Costs, Net	$	2,044.2	$	996.9	$	575.9	$	471.4	$	1,959.3	$	991.3	$	499.6	$	468.4
Regulatory Tracking Mechanisms	1,516.5		192.7		792.9		112.8		1,573.8		206.5		705.6		93.2
Benefit Costs	1,025.7		185.1		308.3		64.7		992.8		173.7		300.0		61.7
Income Taxes, Net	866.2		551.4		170.9		22.1		1,044.5		546.1		161.5		23.3
Derivative Contracts	390.3		—		390.3		—		753.2		0.1		753.1		—
Securitized Stranded Costs	284.5		—		—		284.5		306.1		—		—		306.1
Cost of Removal	268.5		—		8.0		—		262.5		—		8.1		—
Goodwill-related	222.0		—		190.6		—		230.4		—		197.8		—
Asset Retirement Obligations	169.2		45.7		87.6		5.6		162.8		44.2		84.6		5.4
Environmental Remediation Costs	134.1		—		—		—		136.1		—		—		—
EGMA Acquisition and Integration Costs	82.3		—		—		—		82.3		—		—		—
Other Regulatory Assets	142.7		19.2		74.9		2.5		189.9		19.5		92.0		3.0
Total Regulatory Assets	7,146.2		1,991.0		2,599.4		963.6		7,693.7		1,981.4		2,802.3		961.1
Less: Current Portion	1,905.2		254.5		1,056.1		142.2		1,975.1		265.2		978.8		119.9
Total Long-Term Regulatory Assets	$	5,241.0	$	1,736.5	$	1,543.3	$	821.4	$	5,718.6	$	1,716.2	$	1,823.5	$	841.2

On June 30, 2026, Eversource completed the sale of Aquarion. Regulatory Assets as of December 31, 2025 included in the table above related to the Water Distribution Business were $234.7 million. For further information, see Note 17, "Sale of Aquarion Water Distribution Business."

CL&P Storm Proceeding: On March 28, 2024, PURA established a prudency review proceeding to evaluate costs reported by CL&P for catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023. Storm costs requested by CL&P for this six-year period totaled $974.2 million. CL&P additionally requested approval to recover carrying costs calculated at the weighted average cost of capital on the deferred storm costs totaling $397 million. These carrying costs reflect CL&P’s actual financing costs on the unrecovered storm costs from the date the deferred storm costs were incurred through June 1, 2027, the expected date of securitization. These carrying costs have not been deferred on the balance sheet.

On July 29, 2026, PURA issued a final decision approving $869.4 million of prudently incurred catastrophic storms and pre‑staging events occurring between January 1, 2018 and December 31, 2023 and postponing review of $63.3 million of storm costs to a future proceeding. PURA did not approve the recovery of carrying costs from the date the deferred storm costs were incurred through the date of the final decision. PURA approved the accrual of carrying costs on the unrecovered, approved storm costs beginning on the date of the final decision through the date of securitization or other recovery authorized in the CL&P distribution rate case proceeding. Total approved storm costs to be considered by PURA for future securitization are $667.9 million, which excludes $101.5 million of costs that were previously collected from customers through base distribution rates and $100 million approved in the April 2026 RAM proceeding to be collected through the CTA rate from May 1, 2026 through April 30, 2027. CL&P is currently evaluating the impact of costs not allowed for recovery in the decision and potential legal courses of action. The impact of the decision will be recorded in the third quarter of 2026.

On May 4, 2026, PURA issued a notice of proceeding to consider whether the issuance of rate reduction bonds for the securitization of approved storm costs is in the best interest of rate payers. A timeline in this proceeding has not yet been established.

Regulatory Costs in Other Long-Term Assets: Eversource's regulated companies had $276.1 million (including $139.6 million for CL&P, $56.9 million for NSTAR Electric and $5.1 million for PSNH) and $244.2 million (including $127.1 million for CL&P, $51.0 million for NSTAR Electric and $5.4 million for PSNH) of additional regulatory costs not yet specifically approved as of June 30, 2026 and December 31, 2025, respectively, that were included in Other Long-Term Assets on the balance sheets. These amounts will be reclassified to Regulatory Assets upon approval by the applicable regulatory agency. Based on regulatory policies or past precedent on similar costs, management believes it is probable that these costs will ultimately be approved and recovered from customers in rates. As of June 30, 2026 and December 31, 2025, these regulatory costs included $151.6 million (including $70.6 million for CL&P and $39.8 million for NSTAR Electric) and $123.2 million (including $57.0 million for CL&P and $34.0 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs.


	As of June 30, 2026								As of December 31, 2025
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
EDIT due to Tax Cuts and Jobs Act of 2017	$	2,343.9	$	924.0	$	834.6	$	314.8	$	2,423.4	$	933.3	$	847.9	$	319.8
Regulatory Tracking Mechanisms	1,560.0		673.0		615.7		141.3		1,186.6		457.3		535.2		111.2
Cost of Removal	877.8		310.3		504.9		62.6		867.1		275.1		479.4		45.5
Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP	557.8		79.4		276.4		53.2		509.4		72.8		252.5		48.5
AFUDC - Transmission	196.2		78.0		118.2		—		179.4		72.0		107.4		—
Derivative Contract	115.1		—		115.1		—		91.0		—		91.0		—
Benefit Costs	74.6		10.4		14.4		7.2		80.4		8.8		24.5		6.8
Other Regulatory Liabilities	202.1		58.3		24.3		4.0		200.8		43.3		15.0		4.0
Total Regulatory Liabilities	5,927.5		2,133.4		2,503.6		583.1		5,538.1		1,862.6		2,352.9		535.8
Less: Current Portion	1,696.4		653.7		775.3		150.7		1,264.6		417.5		650.8		118.4
Total Long-Term Regulatory Liabilities	$	4,231.1	$	1,479.7	$	1,728.3	$	432.4	$	4,273.5	$	1,445.1	$	1,702.1	$	417.4

On June 30, 2026, Eversource completed the sale of Aquarion. Regulatory Liabilities as of December 31, 2025 included in the table above related to the Water Distribution Business were $150.8 million. For further information, see Note 17, "Sale of Aquarion Water Distribution Business."

FERC ROE Complaints: As of June 30, 2026, Eversource has a regulatory liability for revenues subject to refund of $62.0 million (pre-tax) as a result of the March 19, 2026 FERC decision in the FERC ROE complaint proceedings, which is reflected within Regulatory Tracking Mechanisms in the table above. The regulatory liability totaled $29.8 million for CL&P, $24.6 million for NSTAR Electric, and $7.6 million for PSNH. The liability recorded reflects the difference between the billed ROE and the replacement ROE for the first complaint period, including interest. Eversource does not have any other reserves recorded for the other complaint periods, as these remaining complaints were dismissed in the decision. See Note 9C, "Commitments and Contingencies – FERC ROE Complaints," for further information on the FERC ROE decision.