Item 8. Financial Statements and Supplementary Data

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Item 8. Financial Statements and Supplementary Data


Eversource
			Management’s Report on Internal Controls Over Financial Reporting
			Reports of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
			Consolidated Financial Statements

CL&P
			Management’s Report on Internal Controls Over Financial Reporting
			Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
			Financial Statements

NSTAR Electric
			Management’s Report on Internal Controls Over Financial Reporting
			Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
			Consolidated Financial Statements

PSNH
			Management’s Report on Internal Controls Over Financial Reporting
			Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
			Consolidated Financial Statements

Management’s Report on Internal Controls Over Financial Reporting

Eversource Energy

Management is responsible for the preparation, integrity, and fair presentation of the accompanying consolidated financial statements of Eversource Energy and subsidiaries (Eversource or the Company) and of other sections of this annual report. Eversource's internal controls over financial reporting were audited by Deloitte & Touche LLP.

Management is responsible for establishing and maintaining adequate internal controls over financial reporting. The Company's internal control framework and processes have been designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. There are inherent limitations of internal controls over financial reporting that could allow material misstatements due to error or fraud to occur and not be prevented or detected on a timely basis by employees during the normal course of business. Additionally, internal controls over financial reporting may become inadequate in the future due to changes in the business environment.

Under the supervision and with the participation of the principal executive officer and principal financial officer, Eversource conducted an evaluation of the effectiveness of internal controls over financial reporting based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation under the framework in COSO, management concluded that internal controls over financial reporting were effective as of December 31, 2025.

February 17, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of Eversource Energy:

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Eversource Energy and subsidiaries (the “Company”) 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 (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated February 17, 2026, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Controls Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Hartford, Connecticut

February 17, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of Eversource Energy:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Eversource Energy and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, common shareholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 of Part IV (collectively referred to as the “financial statements”). 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 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

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Regulatory Accounting - Impact of Rate Regulation on the Financial Statements - Refer to Note 2 to the Financial Statements

Critical Audit Matter Description

The Company is subject to regulation by federal, Connecticut, Massachusetts, and New Hampshire utility regulatory agencies (the “Commissions”), which have jurisdiction with respect to the rates of the Company’s electric, natural gas, and water distribution companies. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 2, regulatory proceedings in recent years have focused on the recoverability of costs, including storm costs, regulatory tracking mechanisms and benefit costs, amongst others. In some cases, the Company records regulatory assets before approval for recovery has been received from the applicable regulatory commission. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates of costs deferred as regulatory assets.
We evaluated the Company’s disclosures related to the applicability and impacts of rate regulation, including the balances recorded and regulatory developments disclosed in the financial statements.
We read relevant regulatory orders issued by the Commissions for the Company and other public utilities, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We also evaluated the external information and compared it to management’s recorded regulatory asset and liability balances for completeness.
For regulatory matters in process, we inspected the Company’s filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions*.*
We performed audit procedures on deferred storm restoration costs for completeness and accuracy.
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.

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 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.

How the Critical Audit Matter Was Addressed in the Audit

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

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 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 the project forecast, the timing of the loss, and the assumptions made in the recording of the contingent liability.

/s/ Deloitte & Touche LLP

Hartford, Connecticut

February 17, 2026

We have served as the Company’s auditor since 2002.

EVERSOURCE ENERGY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	As of December 31,
(Thousands of Dollars)	2025		2024

ASSETS
Current Assets:
Cash	$	135,351	$	26,656

Receivables, Net (net of allowance for uncollectible accounts of $580,539 and $556,164 as of December 31, 2025 and 2024, respectively)	1,847,094		1,651,325
Unbilled Revenues	275,108		242,169
Materials, Supplies, Natural Gas and REC Inventory	491,592		594,568

Regulatory Assets	1,975,083		2,189,660
Current Assets Held for Sale	—		56,327
Prepayments and Other Current Assets	352,958		315,368
Total Current Assets	5,077,186		5,076,073
Property, Plant and Equipment, Net	45,930,959		40,986,578
Deferred Debits and Other Assets:
Regulatory Assets	5,718,646		4,880,974
Goodwill	4,233,767		3,571,333

Prepaid Pension and PBOP	1,511,169		1,336,633
Marketable Securities	317,101		320,272
Long-Term Assets Held for Sale	—		2,611,145
Other Long-Term Assets	997,883		811,521
Total Deferred Debits and Other Assets	12,778,566		13,531,878
Total Assets	$	63,786,711	$	59,594,529

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	1,525,445	$	2,042,793
Long-Term Debt – Current Portion	1,392,948		1,003,150
Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	1,859,692		1,736,880
Accrued Interest	380,231		341,558
Regulatory Liabilities	1,264,609		632,282
Current Liabilities Held for Sale	—		52,593
Offshore Wind Contingent Liability - Current Portion	448,158		15,000
Other Current Liabilities	894,219		853,491
Total Current Liabilities	7,808,512		6,720,957
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	5,647,218		5,411,206
Regulatory Liabilities	4,273,465		4,032,564
Derivative Liabilities	753,149		—
Asset Retirement Obligations	595,442		590,890
Accrued SERP and PBOP	100,859		95,400
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
Total Deferred Credits and Other Liabilities	12,472,065		11,652,918
Long-Term Debt	26,872,433		25,701,627
Rate Reduction Bonds	280,862		324,072
Noncontrolling Interest - Preferred Stock of Subsidiaries	155,568		155,568
Common Shareholders' Equity:
Common Shares	1,914,273		1,878,622
Capital Surplus, Paid In	9,937,878		9,428,905
Retained Earnings	4,504,983		3,929,141
Accumulated Other Comprehensive Loss	(20,507)		(26,472)
Treasury Stock	(139,356)		(170,809)
Common Shareholders' Equity	16,197,271		15,039,387
Commitments and Contingencies (Note 13)
Total Liabilities and Capitalization	$	63,786,711	$	59,594,529

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME/(LOSS)


	For the Years Ended December 31,
(Thousands of Dollars, Except Share Information)	2025		2024		2023

Operating Revenues	$	13,547,244	$	11,900,809	$	11,910,705

Operating Expenses:
Purchased Power, Purchased Natural Gas and Transmission	4,209,172		3,736,078		5,168,241
Operations and Maintenance	2,073,778		2,012,926		1,895,703
Depreciation	1,568,578		1,433,503		1,305,840
Amortization	835,909		342,864		(490,117)
Energy Efficiency Programs	778,348		671,828		691,344
Taxes Other Than Income Taxes	1,092,870		997,901		940,359
Loss on Pending Sale of Aquarion	—		297,000		—
Total Operating Expenses	10,558,655		9,492,100		9,511,370
Operating Income	2,988,589		2,408,709		2,399,335
Interest Expense	1,243,266		1,111,336		855,441
Losses on Offshore Wind	284,000		464,019		2,167,000
Other Income, Net	378,854		410,482		348,069
Income/(Loss) Before Income Tax Expense	1,840,177		1,243,836		(275,037)
Income Tax Expense	140,286		424,664		159,684
Net Income/(Loss)	1,699,891		819,172		(434,721)
Net Income Attributable to Noncontrolling Interests	7,519		7,519		7,519
Net Income/(Loss) Attributable to Common Shareholders	$	1,692,372	$	811,653	$	(442,240)

Basic Earnings/(Loss) Per Common Share	$	4.56	$	2.27	$	(1.27)

Diluted Earnings/(Loss) Per Common Share	$	4.56	$	2.27	$	(1.26)

Weighted Average Common Shares Outstanding:
Basic	370,852,601		357,482,965		349,580,638
Diluted	371,259,264		357,779,408		349,840,481

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Net Income/(Loss)	$	1,699,891	$	819,172	$	(434,721)
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	20		20		20
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
Other Comprehensive Income, Net of Tax	5,965		7,265		5,684
Comprehensive Income Attributable to Noncontrolling Interests	(7,519)		(7,519)		(7,519)
Comprehensive Income/(Loss) Attributable to Common Shareholders	$	1,698,337	$	818,918	$	(436,556)

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY


	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, 2023	348,443,855	$	1,799,920	$	8,401,731	$	5,527,153	$	(39,421)	$	(216,225)	$	15,473,158
Net Loss						(434,721)						(434,721)
Dividends on Common Shares - $2.70 Per Share						(942,398)						(942,398)
Dividends on Preferred Stock						(7,519)						(7,519)


Long-Term Incentive Plan Activity				1,375								1,375
Issuance of Treasury Shares	1,096,411			57,770						20,543		78,313



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 Income						819,172						819,172
Dividends on Common Shares - $2.86 Per Share						(1,025,027)						(1,025,027)
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)

Issuance of Treasury Shares	1,327,492			63,841						24,873		88,714
Other Comprehensive Income								7,265				7,265
Balance as of December 31, 2024	366,608,052	1,878,622		9,428,905		3,929,141		(26,472)		(170,809)		15,039,387
Net Income						1,699,891						1,699,891
Dividends on Common Shares - $3.01 Per Share						(1,116,530)						(1,116,530)
Dividends on Preferred Stock						(7,519)						(7,519)
Issuance of Common Shares - $5 par value	7,130,134	35,651		435,298								470,949
Capital Stock Expense				(5,560)								(5,560)
Long-Term Incentive Plan Activity				(5,900)								(5,900)
Issuance of Treasury Shares	1,678,694			85,135						31,453		116,588
Other Comprehensive Income								5,965				5,965
Balance as of December 31, 2025	375,416,880	$	1,914,273	$	9,937,878	$	4,504,983	$	(20,507)	$	(139,356)	$	16,197,271

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

EVERSOURCE ENERGY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Activities:
Net Income/(Loss)	$	1,699,891	$	819,172	$	(434,721)
Adjustments to Reconcile Net Income/(Loss) to Net Cash Flows Provided by Operating Activities:
Depreciation	1,568,578		1,433,503		1,305,840
Deferred Income Taxes	27,313		435,889		85,405
Uncollectible Expense	101,141		74,069		72,468
Pension, SERP and PBOP Income, Net	(80,628)		(73,564)		(90,706)

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)

Losses on Offshore Wind	284,000		464,019		2,167,000
Loss on Pending Sale of Aquarion	—		297,000		—
Other	(4,826)		(108,365)		(59,886)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(364,156)		(432,620)		(124,393)

Taxes Receivable/Accrued, Net	143,331		55,502		36,357
Accounts Payable	84,192		47,082		(287,637)
Other Current Assets and Liabilities, Net	81,671		19,529		(66,202)
Net Cash Flows Provided by Operating Activities	4,113,572		2,159,737		1,646,161

Investing Activities:
Investments in Property, Plant and Equipment	(4,158,669)		(4,480,529)		(4,336,849)
Proceeds from Sales of Marketable Securities	439,311		268,164		395,604

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 Sales of Offshore Wind Investments	—		862,713		1,090,662
Other Investing Activities	30,820		(13,365)		(2,897)
Net Cash Flows Used in Investing Activities	(4,306,163)		(4,535,664)		(4,870,732)

Financing Activities:
Issuance of Common Shares, Net of Issuance Costs	465,389		989,447		—
Cash Dividends on Common Shares	(1,093,074)		(1,001,488)		(918,995)
Cash Dividends on Preferred Stock	(7,519)		(7,519)		(7,519)
(Decrease)/Increase in Notes Payable	(517,348)		(94,959)		695,552
Repayment of Rate Reduction Bonds	(43,210)		(43,210)		(43,210)
Issuance of Long-Term Debt	2,942,353		4,501,623		5,198,345
Retirement of Long-Term Debt	(1,400,331)		(1,949,995)		(2,008,470)
Other Financing Activities	(34,732)		(57,082)		(46,466)
Net Cash Flows Provided by Financing Activities	311,528		2,336,817		2,869,237
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.

Management’s Report on Internal Controls Over Financial Reporting

The Connecticut Light and Power Company

Management is responsible for the preparation, integrity, and fair presentation of the accompanying financial statements of The Connecticut Light and Power Company (CL&P or the Company) and of other sections of this annual report.

Under the supervision and with the participation of the principal executive officer and principal financial officer, CL&P conducted an evaluation of the effectiveness of internal controls over financial reporting based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation under the framework in COSO, management concluded that internal controls over financial reporting were effective as of December 31, 2025.

February 17, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of The Connecticut Light and Power Company:

Opinion on the Financial Statements

We have audited the accompanying balance sheets of The Connecticut Light and Power Company (the “Company”) as of December 31, 2025 and 2024, the related statements of income, comprehensive income, common stockholder’s equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedule listed in the Index at Item 15 of Part IV (collectively referred to as the “financial statements”). 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.

Basis for Opinion

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Accounting - Impact of Rate Regulation on the Financial Statements - Refer to Note 2 to the Financial Statements

Critical Audit Matter Description

The Company is subject to regulation by federal and Connecticut utility regulatory agencies (the “Commissions”), which have jurisdiction with respect to the rates of the Company’s electric distribution business. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 2, regulatory proceedings in recent years have focused on the recoverability of costs, including storm costs, regulatory tracking mechanisms and benefit costs, amongst others. In some cases, the Company records regulatory assets before approval for recovery has been received from the applicable regulatory commission. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates of costs deferred as regulatory assets.
We evaluated the Company’s disclosures related to the applicability and impacts of rate regulation, including the balances recorded and regulatory developments disclosed in the financial statements.
We read relevant regulatory orders issued by the Commissions for the Company and other public utilities, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We also evaluated the external information and compared it to management’s recorded regulatory asset and liability balances for completeness.
For regulatory matters in process, we inspected the Company’s filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions*.*
We performed audit procedures on deferred storm restoration costs for completeness and accuracy.
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.

/s/ Deloitte & Touche LLP

Hartford, Connecticut

February 17, 2026

We have served as the Company’s auditor since 2002.

THE CONNECTICUT LIGHT AND POWER COMPANY

BALANCE SHEETS


	As of December 31,
(Thousands of Dollars)	2025		2024

ASSETS
Current Assets:
Cash	$	87,615	$	1,093
Receivables, Net (net of allowance for uncollectible accounts of $258,514 and $279,108 as of December 31, 2025 and 2024, respectively)	652,150		663,171
Accounts Receivable from Affiliated Companies	60,995		68,723
Unbilled Revenues	63,508		59,759
Materials and Supplies	133,908		217,316

Regulatory Assets	265,175		638,529

Prepayments and Other Current Assets	50,579		51,688
Total Current Assets	1,313,930		1,700,279
Property, Plant and Equipment, Net	13,623,296		13,002,193
Deferred Debits and Other Assets:
Regulatory Assets	1,716,212		1,687,029
Prepaid Pension and PBOP	204,067		182,483
Other Long-Term Assets	321,234		267,861
Total Deferred Debits and Other Assets	2,241,513		2,137,373
Total Assets	$	17,178,739	$	16,839,845

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	—	$	280,000
Long-Term Debt – Current Portion	—		2,944
Accounts Payable	637,467		548,100
Accounts Payable to Affiliated Companies	141,610		137,150

Accrued Taxes	165,362		41,654

Regulatory Liabilities	417,498		124,122
Derivative Liabilities	128		71,090
Other Current Liabilities	220,464		193,040
Total Current Liabilities	1,582,529		1,398,100
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	2,005,888		2,052,806
Regulatory Liabilities	1,445,140		1,395,883


Other Long-Term Liabilities	239,289		204,801
Total Deferred Credits and Other Liabilities	3,690,317		3,653,490
Long-Term Debt	5,110,067		5,108,173
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	3,684,265		3,684,265
Retained Earnings	2,934,877		2,819,107
Accumulated Other Comprehensive Income	132		158
Common Stockholder's Equity	6,679,626		6,563,882
Commitments and Contingencies (Note 13)
Total Liabilities and Capitalization	$	17,178,739	$	16,839,845

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

THE CONNECTICUT LIGHT AND POWER COMPANY

STATEMENTS OF INCOME


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Revenues	$	5,240,994	$	4,614,977	$	4,578,804

Operating Expenses:
Purchased Power and Transmission	1,815,820		1,836,911		2,612,949
Operations and Maintenance	848,979		815,345		733,287
Depreciation	432,763		406,540		376,904
Amortization of Regulatory Assets/(Liabilities), Net	649,691		104,446		(500,367)
Energy Efficiency Programs	170,209		171,690		133,453
Taxes Other Than Income Taxes	452,880		419,575		401,135
Total Operating Expenses	4,370,342		3,754,507		3,757,361
Operating Income	870,652		860,470		821,443
Interest Expense	211,856		231,004		193,361
Other Income, Net	59,736		77,591		61,560
Income Before Income Tax Expense	718,532		707,057		689,642
Income Tax Expense	167,203		194,459		170,909
Net Income	$	551,329	$	512,598	$	518,733

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

STATEMENTS OF COMPREHENSIVE INCOME


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Net Income	$	551,329	$	512,598	$	518,733
Other Comprehensive (Loss)/Income, Net of Tax:
Qualified Cash Flow Hedging Instruments	(26)		(27)		(26)
Changes in Unrealized Gains on Marketable Securities	—		—		42
Other Comprehensive (Loss)/Income, Net of Tax	(26)		(27)		16
Comprehensive Income	$	551,303	$	512,571	$	518,749

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

THE CONNECTICUT LIGHT AND POWER COMPANY

STATEMENTS OF COMMON STOCKHOLDER'S EQUITY


	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, 2023	6,035,205	$	60,352	$	3,260,765	$	2,463,094	$	169	$	5,784,380
Net Income						518,733				518,733
Dividends on Preferred Stock						(5,559)				(5,559)
Dividends on Common Stock						(330,400)				(330,400)
Capital Contributions from Eversource Parent				123,500						123,500
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
Net Income						512,598				512,598
Dividends on Preferred Stock						(5,559)				(5,559)
Dividends on Common Stock						(333,800)				(333,800)
Capital Contributions from Eversource Parent				300,000						300,000

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
Net Income						551,329				551,329
Dividends on Preferred Stock						(5,559)				(5,559)
Dividends on Common Stock						(430,000)				(430,000)

Other Comprehensive Loss								(26)		(26)
Balance as of December 31, 2025	6,035,205	$	60,352	$	3,684,265	$	2,934,877	$	132	$	6,679,626

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

THE CONNECTICUT LIGHT AND POWER COMPANY

STATEMENTS OF CASH FLOWS


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Activities:
Net Income	$	551,329	$	512,598	$	518,733
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	432,763		406,540		376,904
Deferred Income Taxes	(94,819)		175,424		184,037
Uncollectible Expense	17,949		17,190		11,675
Pension, SERP and PBOP Income, Net	(14,023)		(12,019)		(18,316)

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

Amortization of Regulatory Assets/(Liabilities), Net	649,691		104,446		(500,367)
Cost of Removal Expenditures	(59,928)		(60,536)		(80,479)
Other	46,379		(47,680)		(16,194)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(33,660)		(175,162)		(100,684)

Taxes Receivable/Accrued, Net	123,240		64,914		25,633
Accounts Payable	37,800		4,232		(88,040)
Other Current Assets and Liabilities, Net	31,590		(48,973)		(20,535)
Net Cash Flows Provided by Operating Activities	1,675,166		683,413		449,567

Investing Activities:
Investments in Property, Plant and Equipment	(867,772)		(978,532)		(1,093,121)
Other Investing Activities	—		—		173
Net Cash Flows Used in Investing Activities	(867,772)		(978,532)		(1,092,948)

Financing Activities:
Cash Dividends on Common Stock	(430,000)		(333,800)		(330,400)
Cash Dividends on Preferred Stock	(5,559)		(5,559)		(5,559)
(Decrease)/Increase in Notes Payable to Eversource Parent	(280,000)		(177,000)		457,000
Issuance of Long-Term Debt	400,000		650,000		800,000
Retirement of Long-Term Debt	(400,000)		(139,800)		(400,000)
Capital Contributions from Eversource Parent	—		300,000		123,500
Other Financing Activities	(5,268)		(8,856)		(9,244)
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
Cash and Restricted Cash - End of Year	$	88,676	$	2,109	$	12,243

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

Management’s Report on Internal Controls Over Financial Reporting

NSTAR Electric Company

Management is responsible for the preparation, integrity, and fair presentation of the accompanying consolidated financial statements of NSTAR Electric Company and subsidiary (NSTAR Electric or the Company) and of other sections of this annual report.

Under the supervision and with the participation of the principal executive officer and principal financial officer, NSTAR Electric conducted an evaluation of the effectiveness of internal controls over financial reporting based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation under the framework in COSO, management concluded that internal controls over financial reporting were effective as of December 31, 2025.

February 17, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of NSTAR Electric Company:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of NSTAR Electric Company and subsidiary (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, common stockholder’s equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedule listed in the Index at Item 15 of Part IV (collectively referred to as the “financial statements”). 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.

Basis for Opinion

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Critical Audit Matter

Regulatory Accounting - Impact of Rate Regulation on the Financial Statements - Refer to Note 2 to the Financial Statements

Critical Audit Matter Description

The Company is subject to regulation by federal and Massachusetts utility regulatory agencies (the “Commissions”), which have jurisdiction with respect to the rates of the Company’s electric distribution business. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 2, regulatory proceedings in recent years have focused on the recoverability of costs. In some cases, the Company records regulatory assets before approval for recovery has been received from the applicable regulatory commission. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates of costs deferred as regulatory assets.
We evaluated the Company’s disclosures related to the applicability and impacts of rate regulation, including the balances recorded and regulatory developments disclosed in the financial statements.
We read relevant regulatory orders issued by the Commissions for the Company and other public utilities, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We also evaluated the external information and compared it to management’s recorded regulatory asset and liability balances for completeness.
For regulatory matters in process, we inspected the Company’s filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions*.*
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.

/s/ Deloitte & Touche LLP

Hartford, Connecticut

February 17, 2026

We have served as the Company’s auditor since 2012.

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS


	As of December 31,
(Thousands of Dollars)	2025		2024

ASSETS
Current Assets:
Cash	$	8,302	$	911

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
Accounts Receivable from Affiliated Companies	280,099		82,921
Unbilled Revenues	56,948		59,079
Materials, Supplies and REC Inventory	210,865		220,621

Regulatory Assets	978,754		902,770
Derivative Assets	91,011		—
Prepayments and Other Current Assets	90,040		72,986
Total Current Assets	2,332,299		1,953,851
Property, Plant and Equipment, Net	15,308,896		14,037,828
Deferred Debits and Other Assets:
Regulatory Assets	1,823,522		1,204,337
Prepaid Pension and PBOP	804,109		724,661
Other Long-Term Assets	264,073		154,571
Total Deferred Debits and Other Assets	2,891,704		2,083,569
Total Assets	$	20,532,899	$	18,075,248

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable	$	245,445	$	504,782

Long-Term Debt – Current Portion	300,000		250,000
Accounts Payable	558,227		534,868
Accounts Payable to Affiliated Companies	198,085		153,672
Obligations to Third-Party Suppliers	179,757		163,711

Regulatory Liabilities	650,813		436,312
Other Current Liabilities	208,979		202,197
Total Current Liabilities	2,341,306		2,245,542
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	2,087,287		2,005,439
Regulatory Liabilities	1,702,059		1,643,079
Derivative Liabilities	753,149		—
Other Long-Term Liabilities	401,625		377,462
Total Deferred Credits and Other Liabilities	4,944,120		4,025,980
Long-Term Debt	5,645,638		4,844,920
Preferred Stock Not Subject to Mandatory Redemption	43,000		43,000
Common Stockholder's Equity:
Common Stock	—		—
Capital Surplus, Paid In	4,238,842		3,788,842
Retained Earnings	3,319,768		3,127,105
Accumulated Other Comprehensive Income/(Loss)	225		(141)
Common Stockholder's Equity	7,558,835		6,915,806
Commitments and Contingencies (Note 13)
Total Liabilities and Capitalization	$	20,532,899	$	18,075,248

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Revenues	$	3,986,599	$	3,720,877	$	3,515,539

Operating Expenses:
Purchased Power and Transmission	1,141,748		1,045,306		1,154,013
Operations and Maintenance	792,319		735,019		668,466
Depreciation	446,045		407,699		372,578
Amortization of Regulatory Assets, Net	107,553		130,869		16,150
Energy Efficiency Programs	294,343		263,405		325,593
Taxes Other Than Income Taxes	320,523		280,261		256,090
Total Operating Expenses	3,102,531		2,862,559		2,792,890
Operating Income	884,068		858,318		722,649
Interest Expense	256,061		222,794		189,254
Other Income, Net	192,646		191,405		164,129
Income Before Income Tax Expense	820,653		826,929		697,524
Income Tax Expense	190,030		190,576		152,996
Net Income	$	630,623	$	636,353	$	544,528

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Net Income	$	630,623	$	636,353	$	544,528
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 on Marketable Securities	—		—		12
Other Comprehensive Income/(Loss), Net of Tax	366		(185)		(240)
Comprehensive Income	$	630,989	$	636,168	$	544,288

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY


	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2023	200	$	—	$	2,778,942	$	2,921,444	$	284	$	5,700,670
Net Income						544,528				544,528
Dividends on Preferred Stock						(1,960)				(1,960)
Dividends on Common Stock						(327,400)				(327,400)
Capital Contributions from Eversource Parent				234,900						234,900

Other Comprehensive Loss								(240)		(240)
Balance as of December 31, 2023	200	—		3,013,842		3,136,612		44		6,150,498
Net Income						636,353				636,353
Dividends on Preferred Stock						(1,960)				(1,960)
Dividends on Common Stock						(643,900)				(643,900)
Capital Contributions from Eversource Parent				775,000						775,000

Other Comprehensive Loss								(185)		(185)
Balance as of December 31, 2024	200	—		3,788,842		3,127,105		(141)		6,915,806
Net Income						630,623				630,623
Dividends on Preferred Stock						(1,960)				(1,960)
Dividends on Common Stock						(436,000)				(436,000)
Capital Contributions from Eversource Parent				450,000						450,000
Other Comprehensive Income								366		366
Balance as of December 31, 2025	200	$	—	$	4,238,842	$	3,319,768	$	225	$	7,558,835

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

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Activities:
Net Income	$	630,623	$	636,353	$	544,528
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	446,045		407,699		372,578
Deferred Income Taxes	35,596		111,177		96,224
Uncollectible Expense	41,430		33,607		22,791
Pension, SERP and PBOP Income, Net	(39,526)		(36,104)		(41,554)

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)

Other	(116,923)		(25,876)		(2,123)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(256,463)		(179,783)		(82,659)

Taxes Receivable/Accrued, Net	(8,468)		(37,779)		27,394
Accounts Payable	64,915		1,412		11,357
Other Current Assets and Liabilities, Net	25,993		(23,137)		(40,974)
Net Cash Flows Provided by Operating Activities	980,452		687,562		713,557

Investing Activities:
Investments in Property, Plant and Equipment	(1,561,071)		(1,563,326)		(1,376,135)


Other Investing Activities	—		—		48
Net Cash Flows Used in Investing Activities	(1,561,071)		(1,563,326)		(1,376,087)

Financing Activities:
Cash Dividends on Common Stock	(436,000)		(643,900)		(327,400)
Cash Dividends on Preferred Stock	(1,960)		(1,960)		(1,960)
(Decrease)/Increase in Notes Payable	(259,337)		138,935		365,847

Capital Contributions from Eversource Parent	450,000		775,000		234,900
Issuance of Long-Term Debt	1,100,000		600,000		150,000
Retirement of Long-Term Debt	(250,000)		—		(80,000)
Other Financing Activities	(5,163)		(6,073)		(1,365)
Net Cash Flows Provided by Financing Activities	597,540		862,002		340,022
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.

Management’s Report on Internal Controls Over Financial Reporting

Public Service Company of New Hampshire

Management is responsible for the preparation, integrity, and fair presentation of the accompanying consolidated financial statements of Public Service Company of New Hampshire and subsidiaries (PSNH or the Company) and of other sections of this annual report.

Under the supervision and with the participation of the principal executive officer and principal financial officer, PSNH conducted an evaluation of the effectiveness of internal controls over financial reporting based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation under the framework in COSO, management concluded that internal controls over financial reporting were effective as of December 31, 2025.

February 17, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of Public Service Company of New Hampshire:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Public Service Company of New Hampshire and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, common stockholder’s equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedule listed in the Index at Item 15 of Part IV (collectively referred to as the “financial statements”). 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.

Basis for Opinion

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Critical Audit Matter

Regulatory Accounting - Impact of Rate Regulation on the Financial Statements - Refer to Note 2 to the Financial Statements

Critical Audit Matter Description

The Company is subject to regulation by federal and New Hampshire utility regulatory agencies (the “Commissions”), which have jurisdiction with respect to the rates of the Company’s electric distribution business. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 2, regulatory proceedings in recent years have focused on the recoverability of costs. In some cases, the Company records regulatory assets before approval for recovery has been received from the applicable regulatory commission. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates of costs deferred as regulatory assets.
We evaluated the Company’s disclosures related to the applicability and impacts of rate regulation, including the balances recorded and regulatory developments disclosed in the financial statements.
We read relevant regulatory orders issued by the Commissions for the Company and other public utilities, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We also evaluated the external information and compared it to management’s recorded regulatory asset and liability balances for completeness.
For regulatory matters in process, we inspected the Company’s filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions*.*
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.

/s/ Deloitte & Touche LLP

Hartford, Connecticut

February 17, 2026

We have served as the Company’s auditor since 2002.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	As of December 31,
(Thousands of Dollars)	2025		2024

ASSETS
Current Assets:
Cash	$	13,665	$	1,431
Receivables, Net (net of allowance for uncollectible accounts of $23,547 and $14,090 as of December 31, 2025 and 2024, respectively)	214,117		163,063
Accounts Receivable from Affiliated Companies	24,338		27,285
Unbilled Revenues	62,446		57,226

Materials, Supplies and REC Inventory	58,879		75,778
Regulatory Assets	119,871		173,267
Special Deposits	38,343		32,668

Prepayments and Other Current Assets	19,212		15,916
Total Current Assets	550,871		546,634
Property, Plant and Equipment, Net	5,507,663		5,089,943
Deferred Debits and Other Assets:
Regulatory Assets	841,203		892,411
Prepaid Pension and PBOP	111,833		91,005
Other Long-Term Assets	17,661		21,948
Total Deferred Debits and Other Assets	970,697		1,005,364
Total Assets	$	7,029,231	$	6,641,941

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	49,300	$	131,100

Rate Reduction Bonds – Current Portion	43,210		43,210
Accounts Payable	179,137		226,074
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
Other Current Liabilities	62,334		61,642
Total Current Liabilities	570,509		658,601
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes	806,270		781,559
Regulatory Liabilities	417,442		394,982

Other Long-Term Liabilities	46,669		43,859
Total Deferred Credits and Other Liabilities	1,270,381		1,220,400
Long-Term Debt	2,031,323		1,732,066
Rate Reduction Bonds	280,862		324,072
Common Stockholder's Equity:
Common Stock	—		—
Capital Surplus, Paid In	1,973,134		1,898,134
Retained Earnings	903,022		808,668

Common Stockholder's Equity	2,876,156		2,706,802
Commitments and Contingencies (Note 13)
Total Liabilities and Capitalization	$	7,029,231	$	6,641,941

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Revenues	$	1,376,351	$	1,294,493	$	1,447,873

Operating Expenses:
Purchased Power and Transmission	280,210		244,351		604,983
Operations and Maintenance	299,170		288,342		284,442
Depreciation	168,015		154,072		140,417
Amortization of Regulatory Assets/(Liabilities), Net	68,168		136,113		(16,343)
Energy Efficiency Programs	46,214		42,871		39,618
Taxes Other Than Income Taxes	106,102		96,969		93,894
Total Operating Expenses	967,879		962,718		1,147,011
Operating Income	408,472		331,775		300,862
Interest Expense	89,960		77,770		72,786
Other Income, Net	42,988		31,123		26,597
Income Before Income Tax Expense	361,500		285,128		254,673
Income Tax Expense	92,146		70,245		59,014
Net Income	$	269,354	$	214,883	$	195,659

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

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

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY


	Common Stock			Capital Surplus, Paid In		Retained Earnings		Accumulated Other Comprehensive (Loss)/Income		Total Common Stockholder's Equity
(Thousands of Dollars, Except Stock Information)	Stock	Amount
Balance as of January 1, 2023	301	$	—	$	1,298,134	$	572,126	$	(73)	$	1,870,187
Net Income						195,659				195,659
Dividends on Common Stock						(112,000)				(112,000)
Capital Contributions from Eversource Parent				400,000						400,000

Other Comprehensive Income								73		73
Balance as of December 31, 2023	301	—		1,698,134		655,785		—		2,353,919
Net Income						214,883				214,883
Dividends on Common Stock						(62,000)				(62,000)
Capital Contributions from Eversource Parent				200,000						200,000


Balance as of December 31, 2024	301	—		1,898,134		808,668		—		2,706,802
Net Income						269,354				269,354
Dividends on Common Stock						(175,000)				(175,000)
Capital Contributions from Eversource Parent				75,000						75,000


Balance as of December 31, 2025	301	$	—	$	1,973,134	$	903,022	$	—	$	2,876,156

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

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	For the Years Ended December 31,
(Thousands of Dollars)	2025		2024		2023

Operating Activities:
Net Income	$	269,354	$	214,883	$	195,659
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation	168,015		154,072		140,417
Deferred Income Taxes	11,291		77,082		118,970
Uncollectible Expense	11,973		4,688		3,989
Pension, SERP and PBOP Income, Net	(8,915)		(8,759)		(10,484)

Regulatory Over/(Under) Recoveries, Net	10,952		(227,943)		(273,472)
Amortization of Regulatory Assets/(Liabilities), Net	68,168		136,113		(16,343)
Cost of Removal Expenditures	(27,030)		(42,507)		(39,976)
Other	(1,383)		53		10,391
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net	(42,787)		(29,875)		(5,434)

Taxes Receivable/Accrued, Net	(1,000)		30,443		916
Accounts Payable	(2,043)		(7,204)		(55,957)
Other Current Assets and Liabilities, Net	26,703		20,255		(36,637)
Net Cash Flows Provided by Operating Activities	483,298		321,301		32,039

Investing Activities:
Investments in Property, Plant and Equipment	(537,771)		(608,812)		(605,109)


Other Investing Activities	—		—		296
Net Cash Flows Used in Investing Activities	(537,771)		(608,812)		(604,813)

Financing Activities:
Cash Dividends on Common Stock	(175,000)		(62,000)		(112,000)
(Decrease)/Increase in Notes Payable to Eversource Parent	(81,800)		(101,900)		59,700
Issuance of Long-Term Debt	300,000		300,000		600,000
Retirement of Long-Term Debt	—		—		(325,000)
Repayment of Rate Reduction Bonds	(43,210)		(43,210)		(43,210)

Capital Contributions from Eversource Parent	75,000		200,000		400,000
Other Financing Activities	(2,574)		(3,140)		(8,524)
Net Cash Flows Provided by Financing Activities	72,416		289,750		570,966
Net Increase/(Decrease) in Cash and Restricted Cash	17,943		2,239		(1,808)
Cash and Restricted Cash - Beginning of Year	37,243		35,004		36,812
Cash and Restricted Cash - End of Year	$	55,186	$	37,243	$	35,004

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

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

COMBINED NOTES TO FINANCIAL STATEMENTS

Refer to the Glossary of Terms included in this combined Annual Report on Form 10-K for abbreviations and acronyms used throughout the combined notes to the financial statements.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. About Eversource, CL&P, NSTAR Electric and PSNH

Eversource Energy is a public utility holding company primarily engaged, through its wholly-owned regulated utility subsidiaries, in the energy delivery business. Eversource Energy's wholly-owned regulated utility subsidiaries consist of CL&P, NSTAR Electric and PSNH (electric utilities), Yankee Gas, NSTAR Gas and EGMA (natural gas utilities), and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 4.6 million electric, natural gas and water customers through twelve regulated utilities in Connecticut, Massachusetts and New Hampshire.

Eversource, CL&P, NSTAR Electric and PSNH are reporting companies under the Securities Exchange Act of 1934. Eversource Energy is a public utility holding company under the Public Utility Holding Company Act of 2005. Arrangements among the regulated electric companies and other Eversource companies, outside agencies and other utilities covering interconnections, interchange of electric power and sales of utility property are subject to regulation by the FERC. Eversource's regulated companies are subject to regulation of rates, accounting and other matters by the FERC and/or applicable state regulatory commissions (the PURA for CL&P, Yankee Gas and Aquarion, the DPU for NSTAR Electric, NSTAR Gas, EGMA and Aquarion, and the NHPUC for PSNH and Aquarion).

CL&P, NSTAR Electric and PSNH furnish franchised retail electric service in Connecticut, Massachusetts and New Hampshire, respectively. NSTAR Gas and EGMA are engaged in the distribution and sale of natural gas to customers within Massachusetts and Yankee Gas is engaged in the distribution and sale of natural gas to customers within Connecticut. Aquarion is engaged in the collection, treatment and distribution of water in Connecticut, Massachusetts and New Hampshire. CL&P, NSTAR Electric and PSNH's results include the operations of their respective distribution and transmission businesses. The distribution business also includes the results of NSTAR Electric's solar power facilities.

Eversource Service, Eversource's service company, and several wholly-owned real estate subsidiaries of Eversource, provide support services to Eversource, including its regulated companies.

B. Basis of Presentation

The consolidated financial statements of Eversource, NSTAR Electric and PSNH include the accounts of each of their respective subsidiaries. Intercompany transactions have been eliminated in consolidation. The accompanying consolidated financial statements of Eversource, NSTAR Electric and PSNH and the financial statements of CL&P are herein collectively referred to as the "financial statements."

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

CYAPC and YAEC are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. Eversource consolidates the operations of CYAPC and YAEC because CL&P's, NSTAR Electric's and PSNH's combined ownership and voting interests in each of these entities is greater than 50 percent. Intercompany transactions between CL&P, NSTAR Electric, PSNH and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource holds equity ownership interests that are not consolidated and are 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.

In accordance with accounting guidance on noncontrolling interests in consolidated financial statements, the Preferred Stock of CL&P and the Preferred Stock of NSTAR Electric, which are not owned by Eversource or its consolidated subsidiaries and are not subject to mandatory redemption, have been presented as noncontrolling interests in the financial statements of Eversource. The Preferred Stock of CL&P and the Preferred Stock of NSTAR Electric are considered to be temporary equity and have been classified between liabilities and permanent shareholders' equity on the balance sheets of Eversource, CL&P and NSTAR Electric due to a provision in the preferred stock agreements of both CL&P and NSTAR Electric that grant preferred stockholders the right to elect a majority of the CL&P and NSTAR Electric Boards of Directors, respectively, should certain conditions exist, such as if preferred dividends are in arrears for a specified amount of time. The Net Income reported in the statements of income and cash flows represents net income prior to apportionment to noncontrolling interests, which is represented by dividends on preferred stock of CL&P and NSTAR Electric.

Eversource's utility subsidiaries' electric, natural gas and water distribution and transmission businesses are subject to rate-regulation that is based on cost recovery and meets the criteria for application of accounting guidance for entities with rate-regulated operations, which considers the effect of regulation on the differences in the timing of the recognition of certain revenues and expenses from those of other businesses and industries. See Note 2, "Regulatory Accounting," for further information.

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 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.

C. Accounting Standards

Accounting Standards Recently Adopted: On January 1, 2025, the Company retrospectively adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires entities to disclose significant segment expenses, other segment items, and the title and position of the chief operating decision maker (CODM). Additionally, the ASU requires entities to disclose how the CODM assesses segment performance and allocates resources, among certain other required disclosures. 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.

D. Cash

Cash includes cash on hand. At the end of each reporting period, any overdraft amounts are reclassified from Cash to Accounts Payable on the balance sheets.

E. Allowance for Uncollectible Accounts

Receivables, Net on the balance sheets primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs, and property rentals. Receivables, Net also includes customer receivables for the purchase of electricity from a competitive third-party supplier, the current portion of customer energy efficiency loans, property damage receivables and other miscellaneous receivables. There is no material concentration of receivables.

Receivables are recorded at amortized cost, net of a credit loss provision (or allowance for uncollectible accounts). The current expected credit loss (CECL) model is applied to receivables for purposes of calculating the allowance for uncollectible accounts. 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 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. Management continuously assesses the collectability of receivables and adjusts estimates based on actual experience and future expectations based on economic conditions, collection efforts and other factors. Management also monitors the aging analysis of receivables to determine if there are changes in the collections of accounts receivable. Receivable balances are written off against the allowance for uncollectible accounts when the customer accounts are no longer in service and these balances are deemed to be uncollectible. Management concluded that the reserve balance as of December 31, 2025 adequately reflected the collection risk and net realizable value for its receivables.

The PURA allows CL&P and Yankee Gas to accelerate the recovery of accounts receivable balances attributable to qualified customers under financial or medical duress (uncollectible hardship accounts receivable) outstanding for greater than 180 days and 90 days, respectively. The DPU allows NSTAR Electric, NSTAR Gas and EGMA to recover in rates amounts associated with certain uncollectible hardship accounts receivable.

These uncollectible hardship customer account balances are included in Regulatory Assets or Other Long-Term Assets on the balance sheets. Hardship customers are protected from shut off in certain circumstances, and historical collection experience has reflected a higher default risk as compared to the rest of the receivable population. Management uses a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.

The total allowance for uncollectible accounts is included in Receivables, Net on the balance sheets. The activity in the allowance for uncollectible accounts by portfolio segment is as follows:


	Eversource						CL&P						NSTAR Electric						PSNH
(Millions of Dollars)	Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Hardship Accounts		Retail (Non-Hardship), Wholesale, and Other		Total Allowance		Total Allowance (3)
Balance as of January 1, 2023	$	284.4	$	201.9	$	486.3	$	188.9	$	36.4	$	225.3	$	43.7	$	51.3	$	95.0	$	29.2
Uncollectible Expense	—		72.5		72.5		—		11.7		11.7		—		22.8		22.8		4.0
Uncollectible Costs Deferred (1)	137.0		21.2		158.2		114.4		12.0		126.4		1.5		16.0		17.5		(8.7)
Write-Offs	(55.9)		(122.2)		(178.1)		(44.7)		(28.5)		(73.2)		(1.6)		(41.7)		(43.3)		(10.9)
Recoveries Collected	1.3		14.3		15.6		1.1		4.7		5.8		—		5.0		5.0		0.7
Balance as of December 31, 2023	$	366.8	$	187.7	$	554.5	$	259.7	$	36.3	$	296.0	$	43.6	$	53.4	$	97.0	$	14.3
Uncollectible Expense	—		74.1		74.1		—		17.2		17.2		—		33.6		33.6		4.7
Uncollectible Costs Deferred (1)	71.4		48.3		119.7		35.5		11.3		46.8		16.2		21.5		37.7		5.1
Write-Offs	(74.3)		(129.5)		(203.8)		(55.1)		(30.9)		(86.0)		(4.6)		(52.4)		(57.0)		(10.9)
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
Uncollectible Expense	—		101.1		101.1		—		17.9		17.9		—		41.4		41.4		12.0
Uncollectible Costs Deferred (1)	62.4		57.6		120.0		32.0		11.1		43.1		8.3		28.8		37.1		7.2
Write-Offs	(61.9)		(154.2)		(216.1)		(48.5)		(39.1)		(87.6)		(2.9)		(63.7)		(66.6)		(10.5)
Recoveries Collected	2.1		14.9		17.0		1.5		4.5		6.0		0.1		5.7		5.8		0.7
Reclassified from Held for Sale (2)	—		2.3		2.3		—		—		—		—		—		—		—
Balance as of December 31, 2025	$	367.2	$	213.3	$	580.5	$	225.7	$	32.8	$	258.5	$	60.7	$	71.9	$	132.6	$	23.5

(1) These expected credit losses are deferred as regulatory costs on the balance sheets, as these amounts are ultimately recovered in rates. 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, 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.”

(3) In connection with PSNH’s pole purchase agreement on May 1, 2023, the purchase price included the forgiveness of previously reserved receivables for reimbursement of operation and maintenance and vegetation management costs.

F. Transfer of Energy Efficiency Loans

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 $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. The current and long-term portions totaled $8.9 million and $21.8 million, respectively, as of December 31, 2025, and $9.4 million and $17.3 million, respectively, as of December 31, 2024.

G. Materials, Supplies, Natural Gas and REC Inventory

Materials, Supplies, Natural Gas and REC Inventory include materials and supplies purchased primarily for construction or operation and maintenance purposes, natural gas purchased for delivery to customers, and RECs. Inventory is valued at the lower of cost or net realizable value. RECs are purchased from suppliers of renewable sources of generation and are used to meet state mandated Renewable Portfolio Standards requirements. The carrying amounts of materials and supplies, natural gas inventory, and RECs, which are included in Current Assets on the balance sheets, were as follows:


	As of December 31,
	2025									2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric			PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Materials and Supplies	$	400.7	$	133.9	$	172.8		$	55.8	$	498.6	$	217.3	$	177.8	$	72.1
Natural Gas	49.7		—		—			—		49.5		—		—		—
RECs	41.2		—		38.1		`	3.1		46.5		—		42.8		3.7
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 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.”

H. Fair Value Measurements

Fair value measurement guidance is applied to derivative contracts that are not elected or designated as "normal purchases" or "normal sales" (normal) and to marketable securities held in trusts. Fair value measurement guidance is also applied to valuations of the investments used to calculate the funded status of pension and PBOP plans, the nonrecurring fair value measurements of nonfinancial assets such as goodwill, long-lived assets, equity method investments, AROs, and in the valuation of business combinations and asset acquisitions. The fair value measurement guidance was also applied in estimating the fair value of preferred stock, long-term debt and RRBs.

Fair Value Hierarchy: In measuring fair value, Eversource uses observable market data when available in order to minimize the use of unobservable inputs. Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes. The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement. Eversource evaluates the classification of assets and liabilities measured at fair value on a quarterly basis.

The levels of the fair value hierarchy are described below:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 - Inputs are quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable.

Level 3 - Quoted market prices are not available. Fair value is derived from valuation techniques in which one or more significant inputs or assumptions are unobservable. Where possible, valuation techniques incorporate observable market inputs that can be validated to external sources such as industry exchanges, including prices of energy and energy-related products.

Uncategorized - Investments that are measured at net asset value are not categorized within the fair value hierarchy.

Determination of Fair Value: The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 4, "Derivative Instruments," Note 5, "Marketable Securities," Note 6, "Investments in Unconsolidated Affiliates," Note 7, "Asset Retirement Obligations," Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," Note 15, "Fair Value of Financial Instruments," and Note 25, “Goodwill,” to the financial statements.

I. Derivative Accounting

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: identification of derivatives and embedded derivatives, election and designation of a contract as normal, and determination of the fair value of derivative contracts. All of these judgments can have a significant impact on the financial statements. 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.

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 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.

J. Operating Expenses

The cost of natural gas included in Purchased Power, Purchased Natural Gas and Transmission on the statements of income was as follows:


	For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2023
Eversource - Cost of Natural Gas	$	857.0	$	689.6	$	792.2

K. Allowance for Funds Used During Construction

AFUDC represents the cost of borrowed and equity funds used to finance construction and is included in the cost of the electric, natural gas and water companies' utility plant on the balance sheet. The portion of AFUDC attributable to borrowed funds is recorded as a reduction of Interest Expense, and the AFUDC related to equity funds is recorded as Other Income, Net on the statements of income. AFUDC costs are recovered from customers over the service life of the related plant in the form of increased revenue collected as a result of higher depreciation expense.

The average AFUDC rate is based on a FERC-prescribed formula using the cost of a company's short-term financings and capitalization (preferred stock, long-term debt and common equity), as appropriate. 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:


Eversource	For the Years Ended December 31,
(Millions of Dollars, except percentages)	2025			2024			2023
Borrowed Funds	$	64.1		$	64.4		$	44.6
Equity Funds	99.0			97.8			78.1
Total AFUDC	$	163.1		$	162.2		$	122.7
Average AFUDC Rate	6.4		%	6.5		%	5.8		%


	For the Years Ended December 31,
	2025									2024									2023
(Millions of Dollars, except percentages)	CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH			CL&P			NSTAR Electric			PSNH
Borrowed Funds	$	14.5		$	28.9		$	5.7		$	8.1		$	27.2		$	8.9		$	7.7		$	17.2		$	6.1
Equity Funds	12.2			58.4			13.0			22.4			58.8			7.0			20.0			45.7			5.4
Total AFUDC	$	26.7		$	87.3		$	18.7		$	30.5		$	86.0		$	15.9		$	27.7		$	62.9		$	11.5
Average AFUDC Rate	6.0		%	6.7		%	7.3		%	6.7		%	7.0		%	5.5		%	6.7		%	5.9		%	5.1		%

L. Other Income, Net

The components of Other Income, Net on the statements of income were as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2023
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion (1)	$	139.3	$	115.4	$	132.9
AFUDC Equity	99.0		97.8		78.1
Equity in Earnings of Unconsolidated Affiliates (2)	19.9		51.9		15.5
Investment (Loss)/Income	(5.4)		0.6		(4.9)
Interest Income	125.5		138.2		94.2

Other (2)	0.6		6.6		32.3
Total Other Income, Net	$	378.9	$	410.5	$	348.1


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion (1)	$	36.2	$	61.4	$	17.6	$	28.2	$	52.8	$	14.9	$	34.9	$	57.4	$	16.2
AFUDC Equity	12.2		58.4		13.0		22.4		58.8		7.0		20.0		45.7		5.4

Investment (Loss)/Income	(1.7)		(1.6)		(0.7)		(1.4)		1.9		(0.5)		(2.4)		(0.2)		(0.7)
Interest Income	12.9		72.7		13.0		28.3		77.0		9.6		9.0		60.6		5.3
Other	0.1		1.7		0.1		0.1		0.9		0.1		0.1		0.6		0.4
Total Other Income, Net	$	59.7	$	192.6	$	43.0	$	77.6	$	191.4	$	31.1	$	61.6	$	164.1	$	26.6

(1) See Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for the components of net periodic benefit income/expense for the Pension, SERP and PBOP Plans. 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 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. In March 2023, Eversource’s equity method investment in a renewable energy fund was liquidated. Liquidation proceeds in excess of the carrying value were recorded in 2023 within Other 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.

M. Other Taxes

Eversource's companies that serve customers in Connecticut collect gross receipts taxes levied by the state of Connecticut from their customers. These gross receipts taxes are recorded separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of income as follows:


	For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2023
Eversource	$	232.4	$	209.4	$	202.9
CL&P	203.8		185.1		174.9

As agents for state and local governments, Eversource's companies that serve customers in Connecticut and Massachusetts collect certain sales taxes that are recorded on a net basis with no impact on the statements of income.

N. Supplemental Cash Flow Information


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
2025			2024			2023
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized	$	1,182.6		$	1,014.4		$	783.2
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	508.2			472.5			564.1


	As of and For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
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
Non-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of)	143.2		160.5		59.2		95.8		155.4		77.7		139.8		178.9		65.9

The following table reconciles cash as reported on the balance sheets to the cash and restricted cash balance as reported on the statements of cash flows:


	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Cash as reported on the Balance Sheets	$	135.4	$	87.6	$	8.3	$	13.7	$	26.7	$	1.1	$	0.9	$	1.4
Restricted cash included in:
Special Deposits	93.6		1.1		17.6		38.3		75.8		1.0		8.1		32.7
Assets Held for Sale, Current	—		—		—		—		5.8		—		—		—
Marketable Securities	14.0		—		—		—		10.0		—		—		—
Other Long-Term Assets	3.2		—		—		3.2		9.0		—		—		3.1
Cash and Restricted Cash as reported on the Statements of Cash Flows	$	246.2	$	88.7	$	25.9	$	55.2	$	127.3	$	2.1	$	9.0	$	37.2

Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, cash held in escrow accounts, and CYAPC and YAEC cash balances. Special Deposits are included in Current Assets on the balance sheets. 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 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.

O. Related Parties

Eversource Service, Eversource's service company, provides centralized accounting, administrative, engineering, financial, information technology, legal, operational, planning, purchasing, tax, and other services to Eversource's companies. The Rocky River Realty Company and Properties, Inc., two other Eversource subsidiaries, construct, acquire or lease some of the property and facilities used by Eversource's companies.

Included in the CL&P, NSTAR Electric and PSNH balance sheets as of December 31, 2025 and 2024 were Accounts Receivable from Affiliated Companies and Accounts Payable to Affiliated Companies relating to transactions between CL&P, NSTAR Electric and PSNH and other subsidiaries that are wholly-owned by Eversource. These amounts have been eliminated in consolidation on the Eversource financial statements.

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. See Note 8, “Short-Term Debt” for intercompany borrowing amounts.

The Eversource Energy Foundation is an independent not-for-profit charitable entity and is not included in the consolidated financial statements of Eversource as the Company does not have title to, and cannot receive contributions back from, the Eversource Energy Foundation's assets. Eversource made contributions to the Eversource Energy Foundation of $7.0 million in 2025, and $20.0 million in 2023. Eversource did not make any contributions in 2024.

2. REGULATORY ACCOUNTING

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.

Regulatory Assets: The components of regulatory assets were as follows:


	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Storm Costs, Net	$	1,959.3	$	991.3	$	499.6	$	468.4	$	2,039.4	$	971.1	$	609.8	$	458.5
Regulatory Tracking Mechanisms	1,573.8		206.5		705.6		93.2		1,781.6		507.7		650.0		162.8
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
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
Total Regulatory Assets	7,693.7		1,981.4		2,802.3		961.1		7,070.7		2,325.5		2,107.1		1,065.7
Less: Current Portion	1,975.1		265.2		978.8		119.9		2,189.7		638.5		902.8		173.3
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 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.”

Storm Costs, Net: The storm cost deferrals relate to costs incurred for storm events at CL&P, NSTAR Electric and PSNH that each company expects to recover from customers. A storm must meet certain criteria to qualify for deferral and recovery with the criteria specific to each state jurisdiction and utility company. Once a storm qualifies for recovery, all qualifying expenses incurred during storm restoration efforts are deferred and recovered from customers. Costs for storms that do not meet the specific criteria are expensed as incurred. In addition to storm restoration costs, CL&P and PSNH are each allowed to recover pre-staging storm costs. 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. Storms in 2025 that qualified for future recovery resulted in deferred storm restoration costs and pre-staging costs totaling $129 million at Eversource, including $82 million at CL&P, $25 million at NSTAR Electric, and $22 million at PSNH. Management believes that all of these storm costs were prudently incurred and meet the criteria for specific cost recovery. Of Eversource’s total deferred storm costs, $2.06 billion either have yet to be filed with the applicable regulatory commission, are pending regulatory approval, or are subject to prudency review (including $1.19 billion at CL&P, $409 million at NSTAR Electric and $456 million at PSNH) as of December 31, 2025. These storm cost totals exclude storm funding amounts that are collected in rates, which are recorded as a reduction to the deferred storm cost regulatory asset balance. CL&P, NSTAR Electric and PSNH are seeking approval of their deferred storm restoration costs through the applicable regulatory recovery process.

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. 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. Although in 2021 PURA found that CL&P’s performance in its preparation for, and response to, Tropical Storm Isaias fell below applicable performance standards in certain instances, CL&P believes it presented in its 2023 storm filing credible evidence demonstrating there is no reasonably close causal connection between the alleged sub-standard performance and the storm costs incurred. While it is possible that some amount of storm costs may be disallowed by PURA, any such amount cannot be estimated at this time. CL&P continues to believe that these storm restoration costs associated with Tropical Storm Isaias were prudently incurred and meet the criteria for cost recovery.

Regulatory Tracking Mechanisms: The regulated companies' approved rates are designed to recover costs incurred to provide service to customers. The regulated companies recover certain of their costs on a fully-reconciling basis through regulatory commission-approved tracking mechanisms. The differences between the costs incurred (or the rate recovery allowed) and the actual revenues are recorded as regulatory assets (for undercollections) or as regulatory liabilities (for overcollections) to be included in future customer rates each year. Carrying charges are recovered in rates on all material regulatory tracking mechanisms.

The electric and natural gas distribution companies recover, on a fully reconciling basis, the costs associated with the procurement of energy and natural gas supply, state mandated energy purchase agreements and other energy-related costs, electric transmission related costs from FERC-approved transmission tariffs, energy efficiency programs, low income assistance programs, certain uncollectible accounts receivable for hardship customers, restructuring and stranded costs as a result of deregulation (including securitized RRB charges), certain capital tracking mechanisms for infrastructure improvements, and additionally for the Massachusetts utilities, pension and PBOP benefits, net metering for distributed generation, and solar-related programs.

CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas, EGMA and the Aquarion Water Company of Connecticut each have a regulatory commission approved revenue decoupling mechanism. Distribution revenues are decoupled from customer sales volumes, where applicable, which breaks the relationship between sales volumes and revenues. Each company reconciles its annual base distribution rate recovery amount to the pre-established levels of baseline distribution delivery service revenues. 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: Deferred benefit costs represent unrecognized actuarial losses and gains and unrecognized prior service costs and credits attributable to Eversource's Pension, SERP and PBOP Plans. The regulated companies record actuarial losses and gains and prior service costs and credits arising at the December 31st remeasurement date of the funded status of the benefit plans as a regulatory asset or regulatory liability in lieu of a charge to Accumulated Other Comprehensive Income/(Loss), reflecting ultimate recovery from customers through rates. The regulatory asset or regulatory liability is amortized with the recognition of actuarial losses and gains and prior service costs and credits to net periodic benefit expense/income over the estimated average future employee service period using the corridor approach. Regulatory accounting is also applied to the portions of Eversource's service company costs that support the regulated companies, as these amounts are also recoverable. As these regulatory assets or regulatory liabilities do not represent a cash outlay for the regulated companies, no carrying charge is recovered from customers. See Note 11A, "Employee Benefits - Pension Benefits and Postretirement Benefits Other Than Pension," for further information on regulatory benefit plan amounts arising and amortized during the year.

Eversource, CL&P, NSTAR Electric, and PSNH recover benefit costs related to their distribution and transmission operations from customers in rates as allowed by their applicable regulatory commissions. NSTAR Electric, NSTAR Gas and EGMA recover qualified pension and PBOP expenses related to their distribution operations through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year. 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.

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: In 2018, a subsidiary of PSNH issued $635.7 million of securitized RRBs to finance PSNH's unrecovered remaining costs associated with the divestiture of its generation assets. Securitized regulatory assets, which are not earning an equity return, are being recovered over the amortization period of the associated RRBs. The PSNH RRBs are expected to be repaid by February 1, 2033. 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: The goodwill regulatory asset originated from a 1999 transaction, and the DPU allowed its recovery in NSTAR Electric and NSTAR Gas rates. This regulatory asset is currently being amortized and recovered from customers in rates without a carrying charge over a 40-year period, and as of December 31, 2025, there were 14 years of amortization remaining.

Asset Retirement Obligations: The costs associated with the depreciation of the regulated companies' ARO assets and accretion of the ARO liabilities are recorded as regulatory assets in accordance with regulatory accounting guidance. The regulated companies' ARO assets, regulatory assets, and ARO liabilities offset and are excluded from rate base. These costs are being recovered over the life of the underlying property, plant and equipment.

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 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: Eversource's regulated companies had $244.2 million (including $127.1 million for CL&P, $51.0 million for NSTAR Electric and $5.4 million for PSNH) and $221.0 million (including $116.3 million for CL&P, $41.1 million for NSTAR Electric and $4.5 million for PSNH) of additional regulatory costs not yet specifically approved as of December 31, 2025 and 2024, 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 December 31, 2025 and 2024, these regulatory costs included $123.2 million (including $57.0 million for CL&P and $34.0 million for NSTAR Electric) and $92.5 million (including $47.2 million for CL&P and $24.4 million for NSTAR Electric), respectively, of deferred uncollectible hardship costs.

Equity Return on Regulatory Assets: For rate-making purposes, the regulated companies recover the carrying costs related to their regulatory assets. For certain regulatory assets, the carrying cost recovered includes an equity return component. This equity return is not recorded on the balance sheets.

Regulatory Liabilities: The components of regulatory liabilities were as follows:


	As of December 31,
	2025								2024
(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	$	2,423.4	$	933.3	$	847.9	$	319.8	$	2,442.7	$	956.6	$	877.6	$	330.6
Regulatory Tracking Mechanisms	1,186.6		457.3		535.2		111.2		702.4		180.3		413.6		114.4
Cost of Removal	867.1		275.1		479.4		45.5		684.1		212.8		451.3		20.1
Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP	509.4		72.8		252.5		48.5		427.1		61.6		211.6		42.6
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
Other Regulatory Liabilities	200.8		43.3		15.0		4.0		184.5		39.1		14.2		4.5
Total Regulatory Liabilities	5,538.1		1,862.6		2,352.9		535.8		4,664.9		1,520.0		2,079.4		516.1
Less: Current Portion	1,264.6		417.5		650.8		118.4		632.3		124.1		436.3		121.1
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 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.”

EDIT due to Tax Cuts and Jobs Act of 2017: Pursuant to the Tax Cuts and Jobs Act of 2017, Eversource had remeasured its existing deferred federal income tax balances to reflect the decrease in the U.S. federal corporate income tax rate from 35 percent to 21 percent. The remeasurement resulted in provisional regulated excess accumulated deferred income tax (excess ADIT or EDIT) liabilities that will benefit customers in future periods and were recognized as regulatory liabilities on the balance sheet. EDIT liabilities related to property, plant, and equipment are subject to IRS normalization rules and will be returned to customers using the same timing as the remaining useful lives of the underlying assets that gave rise to the ADIT liabilities. 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.

Deferred Portion of Non-Service Income Components of Pension, SERP and PBOP: Regulatory liabilities were recorded for the deferred portion of the non-service related components of net periodic benefit expense/(income) for the Pension, SERP and PBOP Plans. These regulatory liabilities will be amortized over the remaining useful lives of the various classes of utility property, plant and equipment.

AFUDC - Transmission: Regulatory liabilities were recorded by CL&P and NSTAR Electric for AFUDC accrued on certain reliability-related transmission projects to reflect local rate base recovery. These regulatory liabilities will be amortized over the depreciable life of the related transmission assets.

Other Regulatory Liabilities: Other Regulatory Liabilities primarily include EGMA’s acquired regulatory liability as a result of the 2020 DPU-approved rate settlement agreement and the CMA asset acquisition on October 9, 2020, and various other items.

FERC ROE Complaints: As of December 31, 2025 and 2024, Eversource has a reserve established for the second ROE complaint period in the pending FERC ROE complaint proceedings, which was recorded as a regulatory liability and is reflected within Regulatory Tracking Mechanisms in the table above. The cumulative pre-tax reserve (excluding interest) as of December 31, 2025 and 2024 totaled $39.1 million for Eversource (including $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH). See Note 13E, "Commitments and Contingencies – FERC ROE Complaints," for further information on developments in the pending ROE complaint proceedings.

Regulatory Developments:

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 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. The requested base distribution rate increase is comprised of a $35.3 million inflation-based adjustment and a $20.5 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. On December 23, 2024, the DPU approved this filing.

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 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 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 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.

PSNH Distribution Rate Case: On June 11, 2024, PSNH filed an application with the NHPUC for approval of a temporary annual base distribution rate increase. On July 31, 2024, the NHPUC approved a settlement agreement that was reached by PSNH, New Hampshire Department of Energy, and the Office of the Consumer Advocate to implement a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024. Temporary rates were in effect until permanent rates were approved and took effect August 1, 2025.

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.

3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

Utility property, plant and equipment is recorded at original cost. Original cost includes materials, labor, construction overheads and AFUDC for regulated property. The cost of repairs and maintenance is charged to Operations and Maintenance expense as incurred.

The following tables summarize property, plant and equipment by asset category:


Eversource	As of December 31,
(Millions of Dollars)	2025		2024
Distribution - Electric	$	22,695.3	$	21,144.1
Distribution - Natural Gas	9,888.0		8,922.2
Transmission - Electric	17,082.4		16,130.9
Distribution - Water (1)	2,577.3		—
Solar	206.8		201.0
Utility	52,449.8		46,398.2
Other (2)	2,476.3		2,254.1
Property, Plant and Equipment, Gross	54,926.1		48,652.3
Less: Accumulated Depreciation
Utility	(10,911.7)		(9,636.5)
Other	(1,246.1)		(1,044.1)
Total Accumulated Depreciation	(12,157.8)		(10,680.6)
Property, Plant and Equipment, Net	42,768.3		37,971.7
Construction Work in Progress	3,162.7		3,014.9
Total Property, Plant and Equipment, Net	$	45,931.0	$	40,986.6


	As of December 31,
	2025						2024
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Distribution - Electric	$	8,906.0	$	10,635.7	$	3,193.8	$	8,437.9	$	9,782.3	$	2,964.2
Transmission - Electric	7,222.5		6,722.9		3,138.7		6,937.7		6,375.2		2,819.6
Solar	—		206.8		—		—		201.0		—
Property, Plant and Equipment, Gross	16,128.5		17,565.4		6,332.5		15,375.6		16,358.5		5,783.8
Less: Accumulated Depreciation	(3,081.3)		(4,014.2)		(1,085.4)		(2,928.0)		(3,782.0)		(1,032.3)
Property, Plant and Equipment, Net	13,047.2		13,551.2		5,247.1		12,447.6		12,576.5		4,751.5
Construction Work in Progress	576.1		1,757.7		260.6		554.6		1,461.3		338.4
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 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.

(2)These assets are primarily comprised of computer software, hardware and equipment at Eversource Service and buildings at The Rocky River Realty Company.

Depreciation: Depreciation of utility assets is calculated on a straight-line basis using composite rates based on the estimated remaining useful lives of the various classes of property (estimated useful life for PSNH distribution and the water utilities). The composite rates, which are subject to approval by the appropriate state regulatory agency, include a cost of removal component, which is collected from customers over the lives of the plant assets and is recognized as a regulatory liability. Depreciation rates are applied to property from the time it is placed in service.

Upon retirement from service, the cost of the utility asset is charged to the accumulated provision for depreciation. The actual incurred removal costs are applied against the related regulatory liability.

The depreciation rates for the various classes of utility property, plant and equipment aggregate to composite rates as follows:


(Percent)	2025		2024		2023
Eversource	3.3	%	3.2	%	3.1	%
CL&P	2.9	%	2.9	%	2.8	%
NSTAR Electric	2.8	%	2.8	%	2.7	%
PSNH	3.0	%	3.0	%	3.0	%

The following table summarizes average remaining useful lives of depreciable assets:


	As of December 31, 2025
(Years)	Eversource	CL&P	NSTAR Electric	PSNH
Distribution - Electric	33.0	34.7	32.5	30.4
Distribution - Natural Gas	32.8	—	—	—
Transmission - Electric	39.2	35.4	44.1	39.6
Distribution - Water	43.9	—	—	—
Solar	21.8	—	21.8	—
Other (1)	9.9	—	—	—

(1)The estimated useful life of computer software, hardware and equipment primarily ranges from 5 to 15 years and of buildings is 40 years.

4. DERIVATIVE INSTRUMENTS

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. These regulated companies manage the risks associated with the price volatility of energy and energy-related products through the use of derivative and non-derivative contracts. Many of the derivative contracts meet the definition of, and are designated as, normal and qualify for accrual accounting under the applicable accounting guidance. The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses on the statements of income as electricity or natural gas is delivered.

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 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. The following table presents the gross fair values of contracts, categorized by risk type, and the net amounts recorded as current or long-term derivative assets or liabilities:


		As of December 31,
		2025						2024
(Millions of Dollars)	Fair Value Hierarchy	Commodity Supply and Price Risk Management		Netting (1)		Net Amount Recorded as a Derivative		Commodity Supply and Price Risk Management		Netting (1)		Net Amount Recorded as a Derivative
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.

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. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined capacities of these contracts as of December 31, 2025 and 2024 were 3 MW and 610 MW, respectively. 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, 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

The fair value of derivative contracts utilizes both observable and unobservable inputs. 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 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)	For the Year Ended
December 31, 2025
Derivatives, Net:
Fair Value as of Beginning of Year	$	—
Net Realized/Unrealized Losses Included in Regulatory Assets or Regulatory Liabilities	(662.1)
Settlements	—
Fair Value as of End of Year	$	(662.1)

5. 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. 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: Eversource's equity securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of $161.8 million and $163.1 million as of December 31, 2025 and 2024, respectively. 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.

Available-for-Sale Debt Securities: The following is a summary of available-for-sale debt securities, which are held in CYAPC’s and YAEC’s spent nuclear fuel trusts:


	As of December 31,
	2025								2024
Eversource (Millions of Dollars)	Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value		Amortized Cost		Pre-Tax Unrealized Gains		Pre-Tax Unrealized Losses		Fair Value
Debt Securities	$	156.5	$	0.7	$	(1.8)	$	155.4	$	163.2	$	0.1	$	(6.1)	$	157.2

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.

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


Eversource (Millions of Dollars)	Amortized Cost		Fair Value

Less than one year	$	15.7	$	15.8
One to five years	39.9		40.6
Six to ten years	26.0		26.1
Greater than ten years	74.9		72.9
Total Debt Securities	$	156.5	$	155.4

Realized Gains and Losses: 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.

Fair Value Measurements: The following table presents the marketable securities recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:


Eversource (Millions of Dollars)	As of December 31,
2025			2024
Level 1:
Mutual Funds and Equities	$	165.3		$	163.1
Money Market Funds	14.0			10.0
Total Level 1	$	179.3		$	173.1
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	82.0		$	92.0
Corporate Debt Securities	37.9			32.5
Asset-Backed Debt Securities	6.4			7.8
Municipal Bonds	7.2			6.8
Other Fixed Income Securities	7.9			8.1
Total Level 2	$	141.4		$	147.2
Total Marketable Securities	$	320.7		$	320.3

U.S. government issued debt securities are valued using market approaches that incorporate transactions for the same or similar bonds and adjustments for yields and maturity dates. Corporate debt securities are valued using a market approach, utilizing recent trades of the same or similar instruments and also incorporating yield curves, credit spreads and specific bond terms and conditions. Asset-backed debt securities include collateralized mortgage obligations, commercial mortgage backed securities, and securities collateralized by auto loans, credit card loans or receivables. Asset-backed debt securities are valued using recent trades of similar instruments, prepayment assumptions, yield curves, issuance and maturity dates, and tranche information. Municipal bonds are valued using a market approach that incorporates reported trades and benchmark yields. Other fixed income securities are valued using pricing models, quoted prices of securities with similar characteristics, and discounted cash flows.

6. INVESTMENTS IN UNCONSOLIDATED AFFILIATES

Investments in entities that are not consolidated are included in long-term assets on the balance sheets. Investments in affiliates where Eversource has the ability to exercise significant influence, but not control, over an investee are initially recognized as an equity method investment at cost. Earnings impacts from these equity investments are included in Other Income, Net on the statements of income. Eversource's investments accounted for under the equity method include the following:


		Investment Balance as of December 31,
(Millions of Dollars)	Ownership Interest	2025		2024
Tax Equity Investment in South Fork Wind	100%	$	19.1	$	22.2
Natural Gas Pipeline - Algonquin Gas Transmission, LLC	15%	110.8		112.6
Other	various	36.3		33.9
Total Investments in Unconsolidated Affiliates		$	166.2	$	168.7

For the years ended December 31, 2025, 2024 and 2023, Eversource had equity in earnings of unconsolidated affiliates of $19.9 million, $51.9 million, and $15.5 million, respectively. 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.

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. 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.

Impairments: 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. Eversource continually monitors and evaluates its equity method investments to determine if there are indicators of an other-than-temporary impairment. If the decline in value is considered to be other-than-temporary, the investment is written down to its estimated fair value, which establishes a new cost basis in the investment. Impairment evaluations are based on best information available at the impairment assessment date. Subsequent declines or recoveries after the reporting date are not considered in the impairment recognized. Investments that are other-than-temporarily impaired and written down to their estimated fair value cannot subsequently be written back up for increases in estimated fair value. 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.

NSTAR Electric: As of December 31, 2025 and 2024, NSTAR Electric's investments included a 14.5 percent ownership interest in two companies that transmit hydro-electricity imported from the Hydro-Quebec system in Canada of $12.2 million and $11.5 million, respectively.

7. ASSET RETIREMENT OBLIGATIONS

Eversource, including CL&P, NSTAR Electric and PSNH, recognizes a liability for the fair value of an ARO on the obligation date if the liability's fair value can be reasonably estimated, even if it is conditional on a future event. Settlement dates and future costs are reasonably estimated when sufficient information becomes available. Management has identified various categories of AROs, primarily CYAPC's and YAEC's obligation to dispose of spent nuclear fuel and high level waste, and also certain assets containing asbestos and hazardous contamination. Management has performed fair value calculations reflecting expected probabilities for settlement scenarios.

The fair value of an ARO is recorded as a long-term liability with a corresponding amount included in Property, Plant and Equipment, Net on the balance sheets. The ARO assets are depreciated, and the ARO liabilities are accreted over the estimated life of the obligation and the corresponding credits are recorded as accumulated depreciation and ARO liabilities, respectively. As the electric and natural gas companies are rate-regulated on a cost-of-service basis, these companies apply regulatory accounting guidance and both the depreciation and accretion costs associated with these companies' AROs are recorded as increases to Regulatory Assets on the balance sheets.

A reconciliation of the beginning and ending carrying amounts of ARO liabilities is as follows:


	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Balance as of Beginning of Year	$	590.9	$	42.5	$	109.3	$	5.6	$	505.8	$	39.9	$	104.8	$	5.2

Liabilities Settled During the Year	(24.2)		—		—		—		(24.6)		—		—		—
Accretion	34.0		2.9		4.7		0.3		29.5		2.6		4.5		0.4
Revisions in Estimated Cash Flows	(5.3)		—		—		—		80.2		—		—		—
Balance as of End of Year	$	595.4	$	45.4	$	114.0	$	5.9	$	590.9	$	42.5	$	109.3	$	5.6

Eversource's amounts include CYAPC and YAEC's AROs of $386.6 million and $391.7 million as of December 31, 2025 and 2024, respectively. The fair value of the ARO for CYAPC and YAEC includes uncertainties of the fuel off-load dates related to the DOE's timing of performance regarding its obligation to dispose of the spent nuclear fuel and high level waste and other assumptions, including discount rates. The incremental asset recorded as an offset to the ARO liability was fully depreciated since the plants have no remaining useful life. Any changes in the ARO liability are recorded with a corresponding offset to the related regulatory asset. The assets held in the CYAPC and YAEC spent nuclear fuel trusts are restricted for settling the ARO and all other nuclear fuel storage obligations. For further information on the assets held in the spent nuclear fuel trusts, see Note 5, "Marketable Securities," to the financial statements.

The increase in the ARO balance at Eversource for the year ended December 31, 2024 was due primarily to updated cost estimates that extended the end of life date from 2039 to 2044 for CYAPC and YAEC. These updated cost estimates were approved by FERC in November 2024.

8. SHORT-TERM DEBT

Short-Term Debt - Borrowing Limits: The amount of short-term borrowings that may be incurred by CL&P and NSTAR Electric is subject to periodic approval by the FERC. 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 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.

PSNH is authorized by regulation of the NHPUC to incur short-term borrowings up to 10 percent of net fixed plant plus an additional $60 million until further ordered by the NHPUC. As of December 31, 2025, PSNH's short-term debt authorization under the 10 percent of net fixed plant test plus $60 million totaled $572.9 million.

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, 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.

Short-Term Debt - Commercial Paper Programs and Credit Agreements: 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. 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 revolving 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. 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 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:


	Borrowings Outstanding as of December 31,				Available Borrowing Capacity as of December 31,				Weighted-Average Interest Rate as of December 31,
(Millions of Dollars)	2025		2024		2025		2024		2025		2024
Eversource Parent Commercial Paper Program	$	1,280.0	$	1,538.0	$	720.0	$	462.0	3.98	%	4.76	%
NSTAR Electric Commercial Paper Program	245.4		504.8		404.6		145.2		3.87	%	4.55	%

There were no borrowings outstanding on the revolving credit facilities as of December 31, 2025 or 2024.

CL&P and PSNH have uncommitted line of credit agreements totaling $375 million and $250 million, respectively, all of which will expire in either May 2026, September 2026 or October 2026. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of December 31, 2025.

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.

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. As of December 31, 2025 and 2024, Eversource and its subsidiaries were in compliance with these covenants. If Eversource or its subsidiaries were not in compliance with these covenants, an event of default would occur requiring all outstanding borrowings by such borrower to be repaid, and additional borrowings by such borrower would not be permitted under its respective credit facility.

Intercompany Borrowings: Eversource parent uses its available capital resources to provide loans to its subsidiaries to assist in meeting their short-term borrowing needs. Eversource parent records intercompany interest income from its loans to subsidiaries, which is eliminated in consolidation. Intercompany loans from Eversource parent to its subsidiaries are eliminated in consolidation on Eversource's balance sheets. 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.

Sources and Uses of Cash: The Company expects the future operating cash flows of Eversource, CL&P, NSTAR Electric and PSNH, along with existing borrowing availability and access to both debt and equity markets, will be sufficient to meet any working capital and future operating requirements, and capital investment forecasted opportunities.

9. LONG-TERM DEBT

Details of long-term debt outstanding are as follows:


CL&P(Millions of Dollars)				As of December 31,
Interest Rate			2025			2024
First Mortgage Bonds:
2004 Series B due 2034	5.750	%		130.0			130.0
2005 Series B due 2035	5.625	%		100.0			100.0
2006 Series A due 2036	6.350	%		250.0			250.0
2007 Series B due 2037	5.750	%		150.0			150.0
2007 Series D due 2037	6.375	%		100.0			100.0
2014 Series A due 2044	4.300	%		475.0			475.0
2015 Series A due 2045	4.150	%		350.0			350.0
2017 Series A due 2027	3.200	%		500.0			500.0
2018 Series A due 2048	4.000	%		800.0			800.0
2020 Series A due 2025	0.750	%		—			400.0
2021 Series A due 2031	2.050	%		425.0			425.0
2023 Series A due 2053	5.250	%		500.0			500.0
2023 Series B due 2033	4.900	%		300.0			300.0
2024 Series A due 2029	4.650	%		350.0			350.0
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
Less Amounts due Within One Year				—			(400.0)
Current Portion Classified as Long-Term Debt (1)				—			397.1

Unamortized Premiums and Discounts, Net				12.4			14.3
Unamortized Debt Issuance Costs				(32.3)			(33.2)
CL&P Long-Term Debt				$	5,110.1		$	5,108.2


NSTAR Electric(Millions of Dollars)				As of December 31,
Interest Rate			2025			2024
Debentures:
2006 Debentures due 2036	5.750	%		$	200.0		$	200.0
2010 Debentures due 2040	5.500	%		300.0			300.0
2014 Debentures due 2044	4.400	%		300.0			300.0
2015 Debentures due 2025	3.250	%		—			250.0
2016 Debentures due 2026	2.700	%		250.0			250.0
2017 Debentures due 2027	3.200	%		700.0			700.0
2019 Debentures due 2029	3.250	%		400.0			400.0
2020 Debentures due 2030	3.950	%		400.0			400.0
2021 Debentures due 2051	3.100	%		300.0			300.0
2021 Debentures due 2031	1.950	%		300.0			300.0
2022 Debentures due 2052	4.550	%		450.0			450.0
2022 Debentures due 2052	4.950	%		400.0			400.0
2023 Debentures due 2028	5.600	%		150.0			150.0
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
Notes:
2004 Senior Notes Series B due 2034	5.900	%		50.0			50.0
2007 Senior Notes Series D due 2037	6.700	%		40.0			40.0
2016 Senior Notes Series H due 2026	2.750	%		50.0			50.0
Total Notes				140.0			140.0
Less Amounts due Within One Year				(300.0)			(250.0)
Unamortized Premiums and Discounts, Net				(8.1)			(14.0)
Unamortized Debt Issuance Costs				(36.3)			(31.1)
NSTAR Electric Long-Term Debt				$	5,645.6		$	4,844.9


PSNH(Millions of Dollars)				As of December 31,
Interest Rate			2025			2024
First Mortgage Bonds:
2005 Series M due 2035	5.600	%		$	50.0		$	50.0
2019 Series T due 2049	3.600	%		300.0			300.0
2020 Series U due 2050	2.400	%		150.0			150.0
2021 Series V due 2031	2.200	%		350.0			350.0
2023 Series W due 2053	5.150	%		300.0			300.0
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


Unamortized Premiums and Discounts, Net				(2.8)			(2.6)
Unamortized Debt Issuance Costs				(15.9)			(15.3)
PSNH Long-Term Debt				$	2,031.3		$	1,732.1


OTHER(Millions of Dollars)						As of December 31,
Interest Rate					2025			2024
Eversource Parent - Senior Notes due 2026 - 2050	1.400	%	-	5.950%		$	11,350.0		$	11,350.0
Yankee Gas - First Mortgage Bonds due 2026 - 2051	1.380	%	-	5.740%		1,205.0			1,095.0
NSTAR Gas - First Mortgage Bonds due 2029 - 2051	2.250	%	-	7.110%		1,055.0			905.0
EGMA - First Mortgage Bonds due 2028 - 2052	2.110	%	-	5.730%		933.0			808.0
Aquarion - Unsecured Notes due 2028 - 2052	3.000	%	-	6.430%		596.6			596.8
Aquarion - Secured Debt due 2027 - 2045	1.296	%	-	9.290%		47.9			40.7
Pre-1983 Spent Nuclear Fuel Obligation (CYAPC)						5.9			5.6
Fair Value Adjustment (2)						11.6			—
Less Fair Value Adjustment - Current Portion (2)						(2.4)			—
Less Amounts due in One Year						(1,090.5)			(750.3)

Unamortized Premiums and Discounts, Net						37.8			41.7
Unamortized Debt Issuance Costs						(64.5)			(76.1)
Total Other Long-Term Debt						$	14,085.4		$	14,016.4

Total Eversource Long-Term Debt						$	26,872.4		$	25,701.6

(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.

(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 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 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: The following table summarizes long-term debt issuances and repayments:


(Millions of Dollars)	Interest Rate		Issuance/ (Repayment)	Issue Date or Repayment Date	Maturity Date	Use of Proceeds for Issuance/ Repayment Information
CL&P 2025 Series A First Mortgage Bonds	4.95	%	400.0	January 2025	January 2030	Repaid short-term debt, paid capital expenditures and working capital
CL&P 2020 Series A First Mortgage Bonds	0.75	%	(400.0)	December 2025	December 2025	Paid at maturity
NSTAR Electric Debentures	4.85	%	400.0	February 2025	March 2030	Repaid 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures	5.20	%	400.0	February 2025	March 2035	Repaid 3.25% Debentures at maturity, repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures	5.20	%	300.0	October 2025	March 2035	Repaid short-term debt, paid capital expenditures and working capital
NSTAR Electric Debentures	3.25	%	(250.0)	November 2025	November 2025	Paid at maturity
PSNH Series Y First Mortgage Bonds	4.40	%	300.0	June 2025	July 2028	Repaid short-term debt, paid capital expenditures and working capital
Eversource Parent Series HH Senior Notes	4.45	%	600.0	October 2025	December 2030	Repay Series J bonds at maturity and repaid short-term debt
Eversource Parent Series H Senior Notes	3.15	%	(300.0)	January 2025	January 2025	Paid at maturity
Eversource Parent Series Q Senior Notes	0.80	%	(300.0)	August 2025	August 2025	Paid at maturity
NSTAR Gas Series Y First Mortgage Bonds	4.86	%	205.0	June 2025	June 2030	Repaid short-term debt, paid capital expenditures and working capital
NSTAR Gas Series Z First Mortgage Bonds	5.30	%	20.0	June 2025	June 2035	Repaid short-term debt, paid capital expenditures and working capital
NSTAR Gas Series R First Mortgage Bonds	2.33	%	(75.0)	May 2025	May 2025	Paid at maturity
Yankee Gas Series Y First Mortgage Bonds	5.02	%	148.0	July 2025	January 2031	Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital
Yankee Gas Series Z First Mortgage Bonds	5.55	%	37.0	July 2025	July 2035	Repaid Series M bonds at maturity, repaid short-term debt, paid capital expenditures and working capital
Yankee Gas Series M First Mortgage Bonds	3.35	%	(75.0)	September 2025	September 2025	Paid at maturity
EGMA Series F First Mortgage Bonds	4.77	%	125.0	September 2025	October 2030	Repaid short-term debt, paid capital expenditures and working capital

Long-Term Debt Provisions: The utility plant of CL&P, PSNH, Yankee Gas, NSTAR Gas, EGMA and a portion of Aquarion is subject to the lien of each company's respective first mortgage bond indenture. The Eversource parent, NSTAR Electric and a portion of Aquarion debt is unsecured. Additionally, the long-term debt agreements provide that Eversource and certain of its subsidiaries must comply with certain covenants as are customarily included in such agreements, including equity requirements for NSTAR Electric, NSTAR Gas and Aquarion. Under the equity requirements, NSTAR Electric's and Aquarion's senior notes must maintain a certain consolidated indebtedness to capitalization ratio as of the end of any fiscal quarter and NSTAR Gas' outstanding long-term debt must not exceed equity.

Certain secured and unsecured long-term debt securities are callable at redemption price or are subject to make-whole provisions.

No long-term debt defaults have occurred as of December 31, 2025.

CYAPC's Pre-1983 Spent Nuclear Fuel Obligation: Under the Nuclear Waste Policy Act of 1982, the DOE is responsible for the selection and development of repositories for, and the disposal of, spent nuclear fuel and high-level radioactive waste. CYAPC is obligated to pay the DOE for the costs to dispose of spent nuclear fuel and high-level radioactive waste generated prior to April 7, 1983 (pre-1983 Spent Nuclear Fuel). CYAPC has partially paid this obligation and recorded an accrual for its remaining liability to the DOE. This liability accrues interest costs at the 3-month Treasury bill yield rate. For nuclear fuel used to generate electricity prior to April 7, 1983, payment may be made any time prior to the first delivery of spent fuel to the DOE. As of December 31, 2025 and 2024, as a result of consolidating CYAPC, Eversource has consolidated $5.9 million and $5.6 million, respectively, in pre-1983 spent nuclear fuel obligations to the DOE. The obligation includes accumulated interest costs of $4.6 million and $4.3 million as of December 31, 2025 and 2024, respectively. CYAPC maintains a trust to fund amounts due to the DOE for the disposal of pre-1983 spent nuclear fuel. For further information, see Note 5, "Marketable Securities," to the financial statements. Fees for disposal of nuclear fuel burned on or after April 7, 1983 were billed to member companies and paid to the DOE.

Long-Term Debt Maturities: Long-term debt maturities on debt outstanding for the years 2026 through 2030 and thereafter are shown below. These amounts exclude PSNH rate reduction bonds, CYAPC pre-1983 spent nuclear fuel obligation, and unamortized premiums, discounts, and debt issuance costs as of December 31, 2025:


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2026	$	1,390.5	$	—	$	300.0	$	—
2027	2,889.5		500.0		700.0		—
2028	2,278.8		—		150.0		300.0
2029	2,300.5		350.0		400.0		—
2030	2,904.0		400.0		800.0		—
Thereafter	16,594.2		3,880.0		3,640.0		1,750.0
Total	$	28,357.5	$	5,130.0	$	5,990.0	$	2,050.0

10. RATE REDUCTION BONDS AND VARIABLE INTEREST ENTITIES

Rate Reduction Bonds: In May 2018, PSNH Funding, a wholly-owned subsidiary of PSNH, issued $635.7 million of securitized RRBs in multiple tranches with a weighted average interest rate of 3.66 percent, and final maturity dates ranging from 2026 to 2035. The RRBs are expected to be repaid by February 1, 2033. RRB payments consist of principal and interest and are paid semi-annually, beginning on February 1, 2019. The RRBs were issued pursuant to a finance order issued by the NHPUC in January 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.

The proceeds were used by PSNH Funding to purchase PSNH’s stranded cost asset-recovery property, including its vested property right to bill, collect and adjust a non-bypassable stranded cost recovery charge from PSNH’s retail customers. The collections are used to pay principal, interest and other costs in connection with the RRBs. The RRBs are secured by the stranded cost asset-recovery property. Cash collections from the stranded cost recovery charges and funds on deposit in trust accounts are the sole source of funds to satisfy the debt obligation. PSNH is not the owner of the RRBs, and PSNH Funding’s assets and revenues are not available to pay PSNH’s creditors. The RRBs are non-recourse senior secured obligations of PSNH Funding and are not insured or guaranteed by PSNH or Eversource Energy.

PSNH Funding was formed solely to issue RRBs to finance PSNH's unrecovered remaining costs associated with the divestiture of its generation assets. PSNH Funding is considered a VIE primarily because the equity capitalization is insufficient to support its operations. PSNH has the power to direct the significant activities of the VIE and is most closely associated with the VIE as compared to other interest holders. Therefore, PSNH is considered the primary beneficiary and consolidates PSNH Funding in its consolidated financial statements.

The following tables summarize the impact of PSNH Funding on PSNH's balance sheets and income statements:


(Millions of Dollars)	As of December 31,
PSNH Balance Sheets:	2025		2024
Restricted Cash - Current Portion (included in Special Deposits)	$	30.6	$	31.0
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	3.2		3.1
Securitized Stranded Cost (included in Regulatory Assets)	306.1		349.3
Other Regulatory Liabilities (included in Regulatory Liabilities)	7.3		6.9
Accrued Interest (included in Other Current Liabilities)	5.1		5.7
Rate Reduction Bonds - Current Portion	43.2		43.2
Rate Reduction Bonds - Long-Term Portion	280.9		324.1


(Millions of Dollars) PSNH Income Statements:	For the Years Ended December 31,
2025			2024			2023
Amortization of RRB Principal (included in Amortization of Regulatory Assets/(Liabilities), Net)	$	43.2		$	43.2		$	43.2
Interest Expense on RRB Principal (included in Interest Expense)	12.8			14.3			15.7

Estimated principal payments on RRBs as of December 31, 2025, is summarized annually through 2030 and thereafter as follows:


(Millions of Dollars)			2026						2027						2028						2029						2030						Thereafter						Total
PSNH			$	43.2					$	43.2					$	43.2					$	43.2					$	43.2					$	108.1					$	324.1

Variable Interest Entities - Other: The Company's variable interests outside of the consolidated group include contracts that are required by regulation and provide for regulatory recovery of contract costs and benefits through customer rates. Eversource, CL&P and NSTAR Electric hold variable interests in VIEs through agreements with certain entities that own single renewable energy or peaking generation power plants, with other independent power producers and with transmission businesses. Eversource, CL&P and NSTAR Electric do not control the activities that are economically significant to these VIEs or provide financial or other support to these VIEs. Therefore, Eversource, CL&P and NSTAR Electric do not consolidate these VIEs.

11. EMPLOYEE BENEFITS

A. Pension Benefits and Postretirement Benefits Other Than Pension

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, 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.

Eversource also provides defined benefit postretirement plans (PBOP Plans) that provide life insurance and a health reimbursement arrangement created for the purpose of reimbursing retirees and dependents for health insurance premiums and certain medical expenses to eligible employees that meet certain age and service eligibility requirements. 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, 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: The Pension, SERP and PBOP Plans are accounted for under the multiple-employer approach, with each operating company's balance sheet reflecting its share of the funded status of the plans. The SERP Plans do not contain any assets. The following tables provide information on the plan benefit obligations, fair values of plan assets, and funded status:


	Pension and SERP
	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Change in Benefit Obligation:
Benefit Obligation as of Beginning of Year	$	(4,745.7)	$	(982.9)	$	(1,003.5)	$	(521.5)	$	(5,238.4)	$	(1,048.5)	$	(1,107.0)	$	(562.3)
Service Cost	(67.9)		(15.3)		(9.7)		(6.5)		(44.3)		(12.7)		(7.7)		(4.3)
Interest Cost	(255.6)		(51.5)		(53.0)		(27.1)		(250.0)		(50.3)		(51.6)		(26.8)
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
Benefits Paid - Lump Sum	28.5		0.1		12.9		1.3		24.0		—		7.6		0.1
Benefits Paid - SERP	18.8		0.4		0.1		0.4		19.4		0.3		0.2		0.4
Employee Transfers	(0.3)		1.2		2.8		0.1		—		4.0		13.8		2.7
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)
Change in Pension Plan Assets:
Fair Value of Pension Plan Assets as of Beginning of Year	$	5,514.0	$	1,144.4	$	1,378.2	$	597.5	$	5,775.0	$	1,170.0	$	1,411.6	$	614.0
Employer Contributions	2.5		—		—		—		5.0		—		—		—
Actual Return on Pension Plan Assets	588.4		119.3		144.7		61.3		227.0		46.5		55.1		24.3
Benefits Paid - Pension	(334.5)		(69.1)		(67.2)		(38.8)		(320.9)		(68.1)		(67.1)		(38.0)
Benefits Paid - Lump Sum	(28.5)		(0.1)		(12.9)		(1.3)		(24.0)		—		(7.6)		(0.1)
Employee Transfers	—		(1.2)		(2.8)		(0.1)		—		(4.0)		(13.8)		(2.7)
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
Funded Status as of December 31st	$	869.8	$	176.6	$	402.3	$	92.4	$	768.3	$	161.5	$	374.7	$	76.0

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.

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


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2025	$	4,856.5	$	981.5	$	992.2	$	513.1
2024	4,617.1		953.9		969.5		507.4


	PBOP
	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Change in Benefit Obligation:
Benefit Obligation as of Beginning of Year	$	(587.4)	$	(109.1)	$	(171.4)	$	(65.9)	$	(676.0)	$	(120.6)	$	(188.3)	$	(72.0)
Service Cost	(6.4)		(1.1)		(1.1)		(0.5)		(7.0)		(1.2)		(1.2)		(0.6)
Interest Cost	(32.0)		(5.6)		(8.7)		(3.4)		(31.9)		(5.6)		(8.8)		(3.4)
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		—

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)
Change in Plan Assets:
Fair Value of Plan Assets as of Beginning of Year	$	1,036.3	$	124.4	$	519.2	$	76.4	$	1,024.4	$	123.0	$	490.4	$	74.7
Actual Return on Plan Assets	131.9		14.9		65.0		9.3		92.3		11.2		45.8		7.6
Employer Contributions	0.7		—		—		—		0.9		—		—		—
Benefits Paid	(51.3)		(9.3)		(16.0)		(5.9)		(51.8)		(9.4)		(15.9)		(6.1)
Employee Transfers	—		(0.3)		0.6		(0.2)		—		(0.4)		(1.1)		0.2
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
Funded Status as of December 31st	$	527.2	$	21.7	$	400.1	$	14.8	$	448.9	$	15.3	$	347.8	$	10.5

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.

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:


	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Prepaid Pension (1)	$	982.0	$	182.4	$	404.0	$	97.0	$	887.7	$	167.2	$	376.9	$	80.5
Prepaid PBOP	529.2		21.7		400.1		14.8		448.9		15.3		347.8		10.5
Prepaid Pension and PBOP	$	1,511.2	$	204.1	$	804.1	$	111.8	$	1,336.6	$	182.5	$	724.7	$	91.0


Accrued SERP (1)	$	(112.2)	$	(5.8)	$	(1.7)	$	(4.6)	$	(119.4)	$	(5.7)	$	(2.2)	$	(4.5)
Accrued PBOP (1)	(2.0)		—		—		—		—		—		—		—
Less: Accrued SERP - current portion	13.3		0.3		—		0.4		24.0		0.4		0.2		0.4
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 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.”

The following actuarial assumptions were used in calculating the Pension, SERP and PBOP Plans' year end funded status:


	Pension and SERP							PBOP
	As of December 31,							As of December 31,
		2025			2024			2025			2024
Discount Rate		4.9%	—	5.5%	5.6%	—	5.7%	5.4%	—	5.5%	5.7%
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. For the Aquarion PBOP Plan, the health care cost trend rate for pre-65 retirees is 7.25 percent, with an ultimate rate of 5 percent in 2035, and for post-65 retirees, the health care trend rate and ultimate rate is 3.5 percent.

Expense: Eversource charges net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans to its subsidiaries based on the actual participant demographic data for each subsidiary's participants. The actual investment return in the trust is allocated to each of the subsidiaries annually in proportion to the investment return expected to be earned during the year. The Company utilizes the spot rate methodology to estimate the discount rate for the service and interest cost components of benefit plan expense, which provides a relatively precise measurement by matching projected cash flows to the corresponding spot rates on the yield curve.

The components of net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets/(liabilities) for future recovery or refund, are shown below. The service cost component of net periodic benefit plan expense/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit plan expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP plan expense/(income) reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.


	Pension and SERP								PBOP
	For the Year Ended December 31, 2025								For the Year Ended December 31, 2025
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	67.9	$	15.3	$	9.7	$	6.5	$	6.4	$	1.1	$	1.1	$	0.5
Interest Cost	255.6		51.5		53.0		27.1		32.0		5.6		8.7		3.4
Expected Return on Plan Assets	(454.3)		(91.8)		(110.7)		(47.8)		(84.6)		(9.6)		(42.0)		(5.7)
Actuarial Loss/(Gain)	42.9		5.1		14.3		2.1		(0.9)		—		—		—
Prior Service Cost/(Credit)	1.1		—		0.3		—		(21.6)		1.1		(17.0)		0.4
Settlement Loss	3.3		—		—		—		—		—		—		—
Total Net Periodic Benefit Plan Income	$	(83.5)	$	(19.9)	$	(33.4)	$	(12.1)	$	(68.7)	$	(1.8)	$	(49.2)	$	(1.4)
Intercompany Income Allocations	N/A		$	(1.4)	$	(0.5)	$	(0.1)	N/A		$	(2.1)	$	(2.7)	$	(0.9)


	Pension and SERP								PBOP
	For the Year Ended December 31, 2024								For the Year Ended December 31, 2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	44.3	$	12.7	$	7.7	$	4.3	$	7.0	$	1.2	$	1.2	$	0.6
Interest Cost	250.0		50.3		51.6		26.8		31.9		5.6		8.8		3.4
Expected Return on Plan Assets	(462.6)		(93.5)		(112.4)		(48.9)		(81.2)		(9.5)		(39.5)		(5.6)
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
Settlement Loss	4.3		—		—		—		—		—		—		—
Total Net Periodic Benefit Plan Income	$	(76.8)	$	(18.4)	$	(27.2)	$	(12.8)	$	(64.3)	$	(1.6)	$	(46.5)	$	(1.2)
Intercompany Income Allocations	N/A		$	(1.6)	$	(1.3)	$	(0.4)	N/A		$	(2.2)	$	(2.6)	$	(0.9)


	Pension and SERP								PBOP
	For the Year Ended December 31, 2023								For the Year Ended December 31, 2023
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Service Cost	$	43.1	$	12.3	$	7.8	$	4.3	$	7.6	$	1.3	$	1.2	$	0.7
Interest Cost	254.0		50.5		53.9		27.3		33.8		6.2		9.2		3.7
Expected Return on Plan Assets	(465.0)		(94.2)		(113.8)		(49.5)		(77.1)		(9.4)		(36.9)		(5.5)
Actuarial Loss	45.8		2.5		17.1		1.5		—		—		—		—
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)
Intercompany Income Allocations	N/A		$	(4.0)	$	(3.0)	$	(0.8)	N/A		$	(1.9)	$	(2.1)	$	(0.7)

The following actuarial assumptions were used to calculate Pension, SERP and PBOP expense amounts:


	Pension and SERP									PBOP
	For the Years Ended December 31,									For the Years Ended December 31,
	2025			2024			2023			2025			2024			2023
Discount Rate	5.2%	—	5.8%	4.7%	—	5.1%	4.9%	—	5.3%	5.4%	—	5.9%	4.9%	—	5.2%	5.1%	—	5.4%
Expected Long-Term Rate of Return	8.25%			8.25%			8.25%			8.25%			8.25%			8.25%
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 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: The Pension, SERP and PBOP Plans cover eligible employees, including, among others, employees of the regulated companies. The regulated companies record actuarial losses and gains and prior service costs and credits arising at the December 31st remeasurement date of the funded status of the benefit plans as a regulatory asset or regulatory liability in lieu of a charge to Accumulated Other Comprehensive Income/(Loss), reflecting ultimate recovery from customers through rates. Regulatory accounting is also applied to the portions of the Eversource Service retiree benefit costs that support the regulated companies, as these costs are also recovered from customers. Adjustments to the Pension, SERP and PBOP Plans' funded status for the unregulated companies are recorded on an after-tax basis to Accumulated Other Comprehensive Income/(Loss). For further information, see Note 2, "Regulatory Accounting," and Note 16, "Accumulated Other Comprehensive Income/(Loss)," to the financial statements.

The difference between the actual return and calculated expected return on plan assets for the Pension and PBOP Plans, as well as changes in actuarial assumptions impacting the projected benefit obligation, are recorded as unamortized actuarial gains or losses arising during the year in Regulatory Assets or Accumulated Other Comprehensive Income/(Loss). Unamortized actuarial gains or losses are amortized as a component of pension and PBOP expense over the estimated average future employee service period using the corridor approach.

The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and Other Comprehensive Income (OCI) as well as amounts in Regulatory Assets and OCI that were reclassified as net periodic benefit expense during the years presented:


	Pension and SERP								PBOP
	Regulatory Assets				OCI				Regulatory Assets				OCI
	For the Years Ended December 31,								For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2025		2024		2025		2024		2025		2024
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 Arising During the Year	0.1		1.3		—		—		—		—		—		—
Prior Service (Cost)/Credit Reclassified as Net Periodic Benefit (Expense)/Income	(1.3)		(1.2)		0.2		(0.1)		21.8		21.8		(0.2)		(0.2)
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:


	Regulatory Assets as of December 31,				AOCI as of December 31,
(Millions of Dollars)	2025		2024		2025		2024
Pension and SERP
Actuarial Loss	$	991.0	$	956.1	$	40.2	$	47.7
Prior Service Cost	1.8		1.8		0.4		0.2
PBOP
Actuarial (Gain)/Loss	$	(36.6)	$	6.4	$	1.8	$	1.8
Prior Service (Credit)/Cost	(43.8)		(66.2)		0.3		0.5

Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, are expected to be paid by the Pension, SERP and PBOP Plans:


(Millions of Dollars)	2026		2027		2028		2029		2030		2031 - 2035
Pension and SERP	$	375.4	$	383.3	$	387.3	$	390.9	$	394.0	$	1,969.3
PBOP	53.0		52.3		51.5		50.6		49.6		232.1

Eversource Contributions: 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: Pension and PBOP funds are held in external trusts. Trust assets, including accumulated earnings, must be used exclusively for Pension and PBOP payments. Eversource's investment strategy for its Pension and PBOP Plans is to maximize the long-term rates of return on these plans' assets within an acceptable level of risk. The investment guidelines for each asset category includes a diversification of asset types, fund strategies and fund managers and it establishes target asset allocations that are routinely reviewed and periodically rebalanced. PBOP assets are comprised of assets held in the PBOP Plan trust, as well as specific assets within the Pension Plan trust (401(h) assets). 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. 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 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:


	As of December 31,
	2025						2024
	Target Asset Allocation				Assumed Rate of Return		Target Asset Allocation				Assumed Rate of Return
	Eversource Pension Plan		Eversource PBOP Plan		Eversource Pension Plan and PBOP Plan		Eversource Pension Plan		Eversource PBOP Plan		Eversource Pension Plan and PBOP Plan
Equity Securities:
United States	—	%	20.0	%	8.5	%	—	%	20.0	%	8.5	%
Global	20.0	%	—	%	8.8	%	20.0	%	—	%	8.8	%
Non-United States	—	%	11.0	%	8.5	%	—	%	11.0	%	8.5	%
Emerging Markets	—	%	6.0	%	10.0	%	—	%	6.0	%	10.0	%
Debt Securities:
Fixed Income	16.0	%	17.0	%	5.5	%	16.0	%	17.0	%	5.5	%
High Yield Fixed Income	5.0	%	—	%	7.5	%	5.0	%	—	%	7.5	%
United States Treasuries	11.0	%	—	%	4.5	%	11.0	%	—	%	4.5	%
Private Debt	10.0	%	13.0	%	10.0	%	10.0	%	13.0	%	10.0	%
Private Equity	23.0	%	18.0	%	12.0	%	23.0	%	18.0	%	12.0	%
Real Assets	15.0	%	15.0	%	7.5	%	15.0	%	15.0	%	7.5	%

The following tables present, by asset category, the Pension and PBOP Plan assets recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:


	Pension Plan
	Fair Value Measurements as of December 31,
(Millions of Dollars)	2025 (1)								2024 (3)
Asset Category:	Level 1		Level 2		Uncategorized		Total		Level 1		Level 2		Uncategorized		Total

Equity Securities	302.8		110.9		816.2		1,229.9		323.6		—		826.0		1,149.6
Fixed Income	340.4		502.1		1,325.6		2,168.1		314.3		344.7		1,329.6		1,988.6
Private Equity	—		—		1,799.1		1,799.1		—		—		1,710.9		1,710.9
Real Assets	158.3		127.5		638.9		924.7		243.8		—		652.2		896.0
Total	$	801.5	$	740.5	$	4,579.8	$	6,121.8	$	881.7	$	344.7	$	4,518.7	$	5,745.1
Less: 401(h) PBOP Assets (3)							(231.8)								(231.1)
Total Pension Assets							$	5,890.0							$	5,514.0


	PBOP Plan
	Fair Value Measurements as of December 31,
(Millions of Dollars)	2025 (2)								2024 (3)
Asset Category:	Level 1		Level 2		Uncategorized		Total		Level 1		Level 2		Uncategorized		Total

Equity Securities	132.7		48.3		214.4		395.4		184.8		—		166.3		351.1
Fixed Income	45.5		41.5		185.9		272.9		61.8		44.6		127.5		233.9
Private Equity	—		—		120.1		120.1		—		—		99.0		99.0
Real Assets	79.0		6.3		41.6		126.9		83.7		—		37.5		121.2
Total	$	257.2	$	96.1	$	562.0	$	915.3	$	330.3	$	44.6	$	430.3	$	805.2
Add: 401(h) PBOP Assets (4)							231.8								231.1
Total PBOP Assets							$	1,147.1							$	1,036.3

(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.

The Company values assets based on observable inputs when available. Equity securities, fixed income exchange traded funds and real asset futures contracts classified as Level 1 in the fair value hierarchy are priced based on the closing price on the primary exchange as of the balance sheet date.

Fixed income securities, such as government issued securities and corporate bonds, are included in Level 2 and are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The pricing models utilize observable inputs such as recent trades for the same or similar instruments, yield curves, discount margins and bond structures. Swaps are valued using pricing models that incorporate interest rates and equity and fixed income index closing prices to determine a net present value of the cash flows.

Certain investments, such as commingled funds, private equity investments, fixed income funds, real asset funds and hedge funds are valued using the net asset value (NAV) as a practical expedient. Assets valued at NAV are uncategorized in the fair value hierarchy. These investments are structured as investment companies offering shares or units to multiple investors for the purpose of providing a return. Commingled funds are recorded at NAV provided by the asset manager, which is based on the market prices of the underlying equity securities. Private Equity investments, Fixed Income partnership funds and Real Assets are valued using the NAV provided by the partnerships, which are based on discounted cash flows of the underlying investments, real estate appraisals or public market comparables of the underlying investments, or the NAV of underlying assets held in hedge funds. 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 swaps and futures contracts.

B. Defined Contribution Plans

Eversource maintains defined contribution plans on behalf of eligible participants. 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.

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:


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2025	$	68.6	$	9.3	$	15.7	$	5.1
2024	76.2		10.6		15.4		6.0
2023	67.3		9.0		13.7		5.4

C. Share-Based Payments

Share-based compensation awards are recorded using a fair-value based method at the date of grant. Eversource, CL&P, NSTAR Electric and PSNH record compensation expense related to these awards, as applicable, for shares issued to their respective employees and officers, as well as for the allocation of costs associated with shares issued to Eversource's service company employees and officers that support CL&P, NSTAR Electric and PSNH.

Eversource Incentive Plans: Eversource maintains long-term equity-based incentive plans in which Eversource, CL&P, NSTAR Electric and PSNH employees, officers and board members are eligible to participate. The incentive plans authorize Eversource to grant up to 7,400,000 new shares for various types of awards, including RSUs and performance shares, to eligible employees, officers, and board members. As of December 31, 2025 and 2024, Eversource had 3,051,466 and 3,790,353 common shares, respectively, available for issuance under these plans.

Eversource accounts for its various share-based plans as follows:

RSUs - Eversource records compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period based upon the fair value of Eversource's common shares at the date of grant. The par value of RSUs is reclassified to Common Stock from Capital Surplus, Paid In as RSUs become issued as common shares.
Performance Shares - Eversource records compensation expense, net of estimated forfeitures, over the requisite service period. Performance shares vest based upon the extent to which Company goals are achieved. Vesting of outstanding performance shares is based upon the Company's EPS growth over the requisite service period and level of payout is determined based on the total shareholder return as compared to the Edison Electric Institute (EEI) Index during the requisite service period. The fair value of performance shares is determined at the date of grant using a lattice model. Compensation expense is subject to volatility until payout is established.

RSUs: Eversource granted RSUs under the annual long-term incentive programs that are subject to three-year graded vesting schedules for employees, and one-year graded vesting schedules, or immediate vesting, for board members. RSUs are paid in shares, reduced by amounts sufficient to satisfy withholdings for income taxes, subsequent to vesting. A summary of RSU transactions is as follows:


	RSUs (Units)	Weighted Average Grant-Date Fair Value
Outstanding as of December 31, 2024	715,442	$	61.95
Granted	345,870	$	57.63
Shares Issued	(306,679)	$	65.99
Forfeited	(23,452)	$	63.23
Outstanding as of December 31, 2025	731,181	$	58.17

The weighted average grant-date fair value of RSUs granted for the years ended December 31, 2025, 2024 and 2023 was $57.63, $57.93 and $76.42, respectively. As of December 31, 2025 and 2024, the number and weighted average grant-date fair value of unvested RSUs was 534,754 and $59.50 per share, and 455,620 and $65.29 per share, respectively. During 2025, there were 239,469 RSUs at a weighted average grant-date fair value of $68.77 per share that vested during the year and were either paid or deferred. As of December 31, 2025, 196,427 RSUs were fully vested and deferred and an additional 508,017 are expected to vest.

Performance Shares: Eversource granted performance shares under the annual long-term incentive programs that vest based upon the extent to which Company goals are achieved at the end of three-year performance measurement periods. Performance shares are paid in shares, after the performance measurement period. A summary of performance share transactions is as follows:


	Performance Shares (Units)	Weighted Average Grant-Date Fair Value
Outstanding as of December 31, 2024	864,192	$	71.48
Granted	409,471	$	57.82
Shares Issued	(163,335)	$	88.50
Forfeited	(91,885)	$	83.96
Outstanding as of December 31, 2025	1,018,443	$	62.13

The weighted average grant-date fair value of performance shares granted for the years ended December 31, 2025, 2024 and 2023 was $57.82, $55.87 and $83.39, respectively. As of December 31, 2025 and 2024, the number and weighted average grant-date fair value of unvested performance shares was 941,243 and $61.77 per share, and 737,738 and $69.12 per share, respectively. During 2025, there were 113,252 performance shares at a weighted average grant-date fair value of $77.29 per share that vested during the year and were either paid or deferred. As of December 31, 2025, 77,200 performance shares were fully vested and deferred.

Compensation Expense: The total compensation expense and associated future income tax benefits recognized by Eversource, CL&P, NSTAR Electric and PSNH for share-based compensation awards were as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2023
Compensation Expense	$	33.6	$	30.0	$	27.8
Future Income Tax Benefit	8.8		7.8		7.3


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Compensation Expense	$	10.5	$	11.6	$	4.3	$	9.3	$	9.6	$	3.6	$	8.7	$	8.7	$	3.0
Future Income Tax Benefit	2.7		3.0		1.1		2.4		2.5		0.9		2.3		2.3		0.8

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 1.75 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, 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.

D. Other Retirement Benefits

Eversource provides retirement and other benefits for certain current and past company officers. These benefits are accounted for on an accrual basis and expensed over a period equal to the service lives of the employees. The actuarially-determined liability for these benefits is included in Other Current and Long-Term Liabilities on the balance sheets. The related expense, which includes the allocation of expense associated with Eversource's service company officers that support CL&P, NSTAR Electric and PSNH, is included in Operations and Maintenance Expense on the income statements. The liability and expense amounts are as follows:


Eversource (Millions of Dollars)	As of and For the Years Ended December 31,
2025			2024			2023
Actuarially-Determined Liability	$	29.9		$	30.2		$	32.6
Other Retirement Benefits Expense	2.3			2.4			2.6


	As of and For the Years Ended December 31,
	2025						2024					2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P	NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Actuarially-Determined Liability	$	0.1	$	—	$	1.0	0.1	$	—	$	1.0	$	0.2	$	—	$	1.1
Other Retirement Benefits Expense	0.8		0.8		0.3		0.8	0.8		0.3		0.8		0.8		0.4

12. INCOME TAXES

The components of income tax expense are as follows:


Eversource (Millions of Dollars)	For the Years Ended December 31,
2025			2024			2023
Current Income Taxes:
Federal	$	77.5		$	(23.4)		$	75.8
State	37.5			14.3			0.6
Total Current	115.0			(9.1)			76.4
Deferred Income Taxes, Net:
Federal	63.7			266.3			(0.9)
State	(36.4)			169.6			86.3
Total Deferred	27.3			435.9			85.4
Investment Tax Credits, Net	(2.0)			(2.1)			(2.1)
Income Tax Expense	$	140.3		$	424.7		$	159.7


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Current Income Taxes:
Federal	$	191.1	$	118.9	$	57.3	$	25.9	$	65.9	$	(1.7)	$	(10.8)	$	50.7	$	(40.0)
State	70.9		37.2		23.5		(6.8)		15.2		(5.2)		(2.3)		7.8		(20.0)
Total Current	262.0		156.1		80.8		19.1		81.1		(6.9)		(13.1)		58.5		(60.0)
Deferred Income Taxes, Net:
Federal	(66.5)		10.0		3.7		107.9		63.9		50.8		130.3		50.1		81.2
State	(28.3)		25.6		7.6		67.5		47.3		26.3		53.7		46.1		37.8
Total Deferred	(94.8)		35.6		11.3		175.4		111.2		77.1		184.0		96.2		119.0
Investment Tax Credits, Net	—		(1.7)		—		—		(1.7)		—		—		(1.7)		—
Income Tax Expense	$	167.2	$	190.0	$	92.1	$	194.5	$	190.6	$	70.2	$	170.9	$	153.0	$	59.0

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


	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

U.S. 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)

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


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
(Millions of Dollars, except percentages)	Eversource			CL&P			NSTAR Electric			PSNH			Eversource			CL&P			NSTAR Electric			PSNH
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
Tax Effect of Differences:
Depreciation	(22.6)			0.4			(10.9)			(1.0)			(25.8)			(5.6)			(8.8)			(1.0)
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			—			—
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)
Other, Net	(26.4)			6.0			(0.7)			0.8			59.7			1.3			2.7			(0.9)
Income Tax Expense	$	424.7		$	194.5		$	190.6		$	70.2		$	159.7		$	170.9		$	153.0		$	59.0
Effective Tax Rate	34.1		%	27.5		%	23.0		%	24.6		%	(58.1)		%	24.8		%	21.9		%	23.2		%

Eversource, CL&P, NSTAR Electric and PSNH file a consolidated federal income tax return and unitary, combined and separate state income tax returns. These entities are also parties to a tax allocation agreement under which taxable subsidiaries do not pay any more taxes than they would have otherwise paid had they filed a separate company tax return, and subsidiaries generating tax losses, if any, are paid for their losses when utilized.

Deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The tax effect of temporary differences is accounted for in accordance with the rate-making treatment of the applicable regulatory commissions and relevant accounting authoritative literature. The tax effects of temporary differences that give rise to the net accumulated deferred income tax obligations are as follows:


	As of December 31,
	2025								2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Deferred Tax Assets:
Employee Benefits	$	273.0	$	37.3	$	92.5	$	16.1	$	266.9	$	33.7	$	83.5	$	14.5
Derivative Liabilities	205.8		—		205.8		—		19.6		19.6		—		—
Regulatory Deferrals - Liabilities	716.7		212.7		402.5		48.3		508.7		128.0		316.7		19.6
Allowance for Uncollectible Accounts	151.9		70.2		30.7		6.2		145.3		75.4		26.5		3.8
Tax Effect - Tax Regulatory Liabilities	696.0		310.7		201.1		90.5		720.8		317.6		214.3		93.2
Net Operating Loss Carryforwards	314.0		—		—		—		198.2		—		—		1.5
Purchase Accounting Adjustment	48.2		—		—		—		52.1		—		—		—
Equity Method Wind Investments	760.3		—		—		—		1,098.6		—		—		—
Other	229.6		133.3		30.9		19.7		267.1		134.7		31.5		24.1
Total Deferred Tax Assets	3,395.5		764.2		963.5		180.8		3,277.3		709.0		672.5		156.7
Less: Valuation Allowance (1)	293.4		104.2		—		—		558.2		104.1		—		—
Net Deferred Tax Assets	$	3,102.1	$	660.0	$	963.5	$	180.8	$	2,719.1	$	604.9	$	672.5	$	156.7
Deferred Tax Liabilities:
Accelerated Depreciation and Other Plant-Related Differences	$	5,880.4	$	1,925.0	$	1,963.2	$	673.3	$	5,493.3	$	1,820.3	$	1,845.2	$	618.4
Property Tax Accruals	118.3		56.8		47.5		7.0		107.4		49.8		44.5		6.5
Regulatory Amounts:
Regulatory Deferrals - Assets	1,837.0		405.1		725.3		263.4		1,709.1		522.9		519.9		277.8
Tax Effect - Tax Regulatory Assets	308.5		199.6		9.6		10.3		294.5		194.7		10.0		9.4
Goodwill-related Regulatory Asset - 1999 Merger	62.9		—		54.0		—		67.5		—		58.0		—
Employee Benefits	404.1		60.5		194.7		31.0		353.0		51.0		175.4		23.5
Derivative Assets	24.9		—		24.9		—		3.8		3.8		—		—
Other	113.2		18.9		31.6		2.1		101.7		15.2		24.9		2.7
Total Deferred Tax Liabilities	$	8,749.3	$	2,665.9	$	3,050.8	$	987.1	$	8,130.3	$	2,657.7	$	2,677.9	$	938.3

(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.


Eversource (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)

Other	2.9
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		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: The following table provides the amounts and expiration dates of state tax credit and loss carryforwards and federal tax credit and net operating loss carryforwards:


	As of December 31,
	2025									2024
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Expiration Range	Eversource		CL&P		NSTAR Electric		PSNH		Expiration Range
Federal Net Operating Loss	$	1,079.4	$	—	$	—	$	—	—	$	877.7	$	—	$	—	$	7.1	—
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
State Net Operating Loss	1,447.8		—		—		—		2040 - 2044	214.1		—		—		—		2024 - 2044
State Tax Credit	236.7		153.9		—		—		2025 - 2030	238.3		157.7		—		—		2024 - 2029
State Capital Loss	1,044.6		—		—		—		2025 - 2029	2,700.0		—		—		—		2024 - 2029
State Charitable Contribution	13.2		—		—		—		2026 - 2029	15.2		—		—		—		2024 - 2028

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: A reconciliation of the activity in unrecognized tax benefits, all of which would impact the effective tax rate if recognized, is as follows:


(Millions of Dollars)	Eversource		CL&P
Balance as of January 1, 2023	$	67.1	$	25.5
Gross Increases - Current Year	23.4		4.0
Gross Increases - Prior Year	0.1		0.1
Gross Decreases - Prior Year	(0.1)		—
Lapse of Statute of Limitations	(9.2)		(3.8)
Balance as of December 31, 2023	81.3		25.8
Gross Increases - Current Year	14.2		2.9
Gross Increases - Prior Year	11.0		—
Gross Decreases - Prior Year	(0.2)		(0.2)
Lapse of Statute of Limitations	(12.6)		(6.6)
Balance as of December 31, 2024	93.7		21.9
Gross Increases - Current Year	11.9		3.2
Gross Increases - Prior Year	5.9		1.1

Lapse of Statute of Limitations	(13.3)		(4.6)
Balance as of December 31, 2025	$	98.2	$	21.6

Interest and Penalties: Interest on uncertain tax positions is recorded and generally classified as a component of Other Interest Expense on the statements of income. However, when resolution of uncertainties results in the Company receiving interest income, any related interest benefit is recorded in Other Income, Net on the statements of income. No penalties have been recorded. 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.

Tax Positions: During 2025 and 2024, Eversource did not resolve any of its uncertain tax positions.

Open Tax Years: The following table summarizes Eversource, CL&P, NSTAR Electric, and PSNH's tax years that remain subject to examination by major tax jurisdictions as of December 31, 2025:


Description			Tax Years
Federal			2022 - 2025(1)
Connecticut			2022 - 2025
Massachusetts			2022 - 2025
New Hampshire			2022 - 2025

(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.

13. COMMITMENTS AND CONTINGENCIES

A. Environmental Matters

Eversource, CL&P, NSTAR Electric and PSNH are subject to environmental laws and regulations intended to mitigate or remove the effect of past operations and improve or maintain the quality of the environment. These laws and regulations require the removal or the remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current and former operating sites. Eversource, CL&P, NSTAR Electric and PSNH have an active environmental auditing and training program and each believes it is substantially in compliance with all enacted laws and regulations.

Environmental reserves are accrued when assessments indicate it is probable that a liability has been incurred and an amount can be reasonably estimated. The approach used estimates the liability based on the most likely action plan from a variety of available remediation options, including no action required or several different remedies ranging from establishing institutional controls to full site remediation and monitoring. These liabilities are estimated on an undiscounted basis and do not assume that the amounts are recoverable from insurance companies or other third parties. The environmental reserves include sites at different stages of discovery and remediation and do not include any unasserted claims.

These reserve estimates are subjective in nature as they take into consideration several different remediation options at each specific site. The reliability and precision of these estimates can be affected by several factors, including new information concerning either the level of contamination at the site, the extent of Eversource's, CL&P's, NSTAR Electric's and PSNH's responsibility for remediation or the extent of remediation required, recently enacted laws and regulations or changes in cost estimates due to certain economic factors. It is possible that new information or future developments could require a reassessment of the potential exposure to required environmental remediation. As this information becomes available, management will continue to assess the potential exposure and adjust the reserves accordingly.

The amounts recorded as environmental reserves are included in Other Current Liabilities and Other Long-Term Liabilities on the balance sheets and represent management's best estimate of the liability for environmental costs, and take into consideration site assessment, remediation and long-term monitoring costs. The environmental reserves also take into account recurring costs of managing hazardous substances and pollutants, mandated expenditures to remediate contaminated sites and any other infrequent and non-recurring clean-up costs. A reconciliation of the activity in the environmental reserves is as follows:


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
Balance as of January 1, 2024	$	128.2	$	13.8	$	5.4	$	7.6
Additions	11.0		0.8		1.9		0.2
Payments/Reductions	(11.2)		(1.2)		(0.7)		(1.5)
Balance as of December 31, 2024	128.0		13.4		6.6		6.3
Additions	40.5		3.6		1.8		3.3
Payments/Reductions	(14.2)		(2.1)		(1.4)		(0.4)
Balance as of December 31, 2025	$	154.3	$	14.9	$	7.0	$	9.2

The number of environmental sites for which remediation or long-term monitoring, preliminary site work or site assessment is being performed are as follows:


	Eversource	CL&P	NSTAR Electric	PSNH
2025	66	15	14	8
2024	65	15	14	8

Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured natural gas from coal and other processes, which resulted in certain by-products remaining in the environment that may pose a potential risk to human health and the environment, for which Eversource may have potential liability. 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, 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.

As of December 31, 2025, for the remaining 44 environmental sites (including 6 for CL&P, 13 for NSTAR Electric and 8 for PSNH) that are included in the Company's reserve for environmental costs, the $89.8 million accrual (including $7.2 million for CL&P, $7.0 million for NSTAR Electric and $9.2 million for PSNH) represents management's best estimate of the probable liability and no additional loss is estimable at this time.

PSNH, NSTAR Gas, EGMA and Yankee Gas have rate recovery mechanisms for MGP related environmental costs, therefore, changes in their respective environmental reserves do not impact Net Income. CL&P is allowed to defer certain environmental costs for future recovery. NSTAR Electric does not have a separate environmental cost recovery regulatory mechanism.

B. Long-Term Contractual Arrangements

Estimated Future Annual Costs: The estimated future annual costs of significant executed, non-cancelable, long-term contractual arrangements in effect as of December 31, 2025 are as follows:


Eversource
(Millions of Dollars)	2026		2027		2028		2029		2030		Thereafter		Total
Renewable Energy Purchase Contracts	$	1,113.9	$	1,235.1	$	1,246.2	$	1,115.5	$	784.1	$	11,643.4	$	17,138.2
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
Peaker CfDs	30.2		25.9		25.8		26.2		18.9		55.1		182.1
Transmission Support Commitments	20.1		21.6		22.6		24.1		24.1		24.1		136.6
Total	$	1,785.0	$	1,869.7	$	1,755.1	$	1,588.6	$	1,204.9	$	14,311.4	$	22,514.7


CL&P
(Millions of Dollars)	2026		2027		2028		2029		2030		Thereafter		Total
Renewable Energy Purchase Contracts	$	681.8	$	774.6	$	780.4	$	640.0	$	300.4	$	3,603.2	$	6,780.4
Capacity	0.1		—		—		—		—		—		0.1
Peaker CfDs	30.2		25.9		25.8		26.2		18.9		55.1		182.1
Transmission Support Commitments	7.9		8.5		8.9		9.5		9.5		9.5		53.8
Total	$	720.0	$	809.0	$	815.1	$	675.7	$	328.8	$	3,667.8	$	7,016.4


NSTAR Electric
(Millions of Dollars)	2026		2027		2028		2029		2030		Thereafter		Total
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
Transmission Support Commitments	7.9		8.5		8.9		9.5		9.5		9.5		53.8
Total	$	537.4	$	568.2	$	575.8	$	587.7	$	597.4	$	9,856.6	$	12,723.1


PSNH
(Millions of Dollars)	2026		2027		2028		2029		2030		Thereafter		Total


Transmission Support Commitments	$	4.3	$	4.6	$	4.8	$	5.1	$	5.1	$	5.1	$	29.0

The contractual obligations table above does not include CL&P's, NSTAR Electric's or PSNH's standard/basic service contracts for the purchase of energy supply, the amounts of which vary with customers' energy needs.

Renewable Energy Purchase Contracts: 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 NSTAR Electric. There are no long-term renewable energy purchase contracts at PSNH.

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. 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. NSTAR Electric, along with other Massachusetts distribution companies, entered into 20-year contracts to purchase electricity generated by this 800 megawatt offshore wind project. Construction on the Vineyard Wind project commenced in 2022. Estimated energy costs under this contract are expected to begin when the facilities are in service in 2026 and range between $100 million and $200 million per year under NSTAR Electric’s 20-year contract, totaling approximately $3.2 billion.

As required by 2018 regulation, CL&P and UI each entered into PURA-approved ten-year contracts in 2019 to purchase a combined total of approximately 9 million MWh annually from the Millstone Nuclear Power Station generation facility, which represents a combined amount of approximately 50 percent of the facility's output (approximately 40 percent by CL&P). Also as required by 2018 regulation, CL&P and UI each entered into PURA-approved eight-year contracts in 2019 to purchase a combined amount of approximately 18 percent of the Seabrook Nuclear Power Plant’s output (approximately 15 percent by CL&P) beginning January 1, 2022. The total estimated remaining future cost of the Millstone Nuclear Power Station and Seabrook Nuclear Power Plant energy purchase contracts are $1.6 billion and are reflected in the table above. As required by law, CL&P cannot use this power to satisfy its customers’ supply obligations. CL&P sells the energy purchased under these contracts into the market and uses the proceeds from these energy sales to offset the contract costs. As the net costs under these contracts are recovered from customers in future rates, the contracts do not have an impact on the net income of CL&P. 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.

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: Eversource's natural gas distribution businesses have long-term contracts for the purchase, transportation and storage of natural gas as part of its portfolio of supplies, which extend through 2045.

Capacity and Purchased Power: 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.

Peaker CfDs: CL&P, along with UI, has three peaker CfDs for a total of approximately 500 MW of peaking capacity through 2042. 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, 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. CL&P's portion of the amounts paid or received under the Peaker CfDs are recovered from, or refunded to, CL&P's customers.

Transmission Support Commitments: Along with other New England utilities, CL&P, NSTAR Electric and PSNH have entered into agreements to support the costs of, and receive rights to use, transmission and terminal facilities that import electricity from the Hydro-Québec system in Canada. CL&P, NSTAR Electric and PSNH are obligated to pay, over a 20-year period ending in 2040, their proportionate shares of the annual operation and maintenance expenses and capital costs of those facilities.

The total costs incurred under these agreements were as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2023
Renewable Energy Purchase Contracts	$	631.3	$	591.4	$	581.4
Natural Gas Procurement	888.0		695.0		695.8
Capacity and Purchased Power	67.2		70.5		69.0
Peaker CfDs	19.6		23.1		20.1
Transmission Support Commitments	17.4		16.7		14.2


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Renewable Energy Purchase Contracts	$	567.4	$	63.9	$	—	$	529.0	$	62.4	$	—	$	474.1	$	60.0	$	47.3
Capacity and Purchased Power	64.4		2.8		—		67.6		2.9		—		65.5		2.9		0.6
Peaker CfDs	19.6		—		—		23.1		—		—		20.1		—		—
Transmission Support Commitments	6.9		6.8		3.7		6.6		6.6		3.5		5.6		5.6		3.0

C. Spent Nuclear Fuel Obligations - Yankee Companies

CL&P, NSTAR Electric and PSNH have plant closure and fuel storage cost obligations to the Yankee Companies, which have each completed the physical decommissioning of their respective nuclear power facilities and are now engaged in the long-term storage of their spent fuel. The Yankee Companies fund these costs through litigation proceeds received from the DOE and, to the extent necessary, through wholesale, FERC-approved rates charged under power purchase agreements with several New England utilities, including CL&P, NSTAR Electric and PSNH. CL&P, NSTAR Electric and PSNH, in turn recover these costs from their customers through state regulatory commission-approved retail rates. The Yankee Companies collect amounts that management believes are adequate to recover the remaining plant closure and fuel storage cost estimates for the respective plants. Management believes CL&P and NSTAR Electric will recover their shares of these obligations from their customers. PSNH has recovered its total share of these costs from its customers.

Spent Nuclear Fuel Litigation:

The Yankee Companies have filed complaints against the DOE in the Court of Federal Claims seeking monetary damages resulting from the DOE's failure to accept delivery of, and provide for a permanent facility to store, spent nuclear fuel pursuant to the terms of the 1983 spent fuel and high-level waste disposal contracts between the Yankee Companies and the DOE. The court previously awarded the Yankee Companies damages for Phases I, II, III and IV of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2016, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase V Damages - On March 25, 2021, each of the Yankee Companies filed a fifth set of lawsuits against the DOE in the Court of Federal Claims resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2017 to 2020. The Yankee Companies filed claims seeking monetary damages totaling $120.4 million for CYAPC, YAEC and MYAPC. Pursuant to a June 2, 2022 court order, the Yankee Companies were subsequently permitted to include monetary damages relating to the year 2021 in the DOE Phase V complaint. The Yankee Companies submitted a supplemental filing to include these costs of $33.1 million on June 8, 2022. In September 2024, the parties reached an agreement in principle to settle the Phase V complaint totaling $145 million for CYAPC, YAEC, and MYAPC. 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 2026.

D. Guarantees and Indemnifications

In the normal course of business, Eversource parent provides credit assurances on behalf of its subsidiaries, including CL&P, NSTAR Electric and PSNH, in the form of guarantees. Management does not anticipate a material impact to net income or cash flows as a result of these various guarantees and indemnifications.

Guarantees issued on behalf of unconsolidated entities, including equity method ownership interests, for which Eversource parent is the guarantor, are recorded at fair value as a liability on the balance sheet at the inception of the guarantee. The fair value of guarantees issued on behalf of unconsolidated entities are recorded within Other Long-Term Liabilities on the balance sheet, and were $1.3 million and $1.2 million as of December 31, 2025 and 2024, respectively. Eversource regularly reviews performance risk under these guarantee arrangements, and believes the likelihood of payments being required under the guarantees is remote. 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 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. On July 9, 2024, Eversource completed the sale of its 50 percent ownership share of Sunrise Wind to Ørsted. 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.

The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties, and primarily relates to its previously-owned offshore wind investments:


As of December 31, 2025
Company (Obligor)	Description	Maximum Exposure (in millions)
Revolution Wind, LLC and TurbineCo, LLC	Offshore wind construction-related purchase agreements with third-party contractors (1)	$	127.0
Eversource Investment LLC, Eversource Investment Service Company LLC and South Fork Class B Member, LLC	Offshore wind funding and indemnification obligations (2)	176.7
Eversource TEI LLC	South Fork Wind Tax Equity (3)	50.0
South Fork Wind, LLC	Power Purchase Agreement Security (4)	7.1
Various Eversource subsidiaries	Surety bonds (5)	34.1

(1) Eversource parent issued guarantees on behalf of its previously 50 percent-owned affiliate, Revolution Wind, LLC, and on behalf of TurbineCo, LLC (successor in interest to North East Offshore, LLC (NEO)), under which Eversource parent agreed to guarantee each entity’s performance of obligations under certain construction-related purchase agreements with third-party contractors, in an aggregate amount not to exceed $693.0 million. Eversource parent’s obligations under the guarantees expire upon the earlier of (i) dates ranging between December 2026 and November 2027 and (ii) full performance of the guaranteed obligations.

(2) Eversource parent issued guarantees on behalf of its wholly-owned subsidiary Eversource Investment LLC (EI), which held Eversource's previous investments in offshore wind-related equity method investments until sale, and on behalf of its previously 50 percent-owned affiliate, South Fork Class B Member, LLC, whereby Eversource parent will guarantee each entity’s performance of certain funding obligations of the South Fork and Revolution Wind projects. Eversource parent also guaranteed certain indemnification obligations of EI associated with third-party credit support for EI’s investment in NEO. On September 30, 2024, Eversource parent issued a guaranty on behalf of its wholly-owned subsidiary, Eversource Investment Service Company LLC, whereby Eversource parent will guarantee Eversource Investment Service Company LLC’s performance of certain indemnification obligations during the onshore construction phase of the Revolution Wind project, in an amount not to exceed $100.0 million. These guarantees will not exceed $1.62 billion and expire upon the full performance of the guaranteed obligations.

(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. Eversource parent’s obligations expire upon the full performance of the guaranteed obligations.

(4) Eversource parent issued a guarantee on behalf of its previously 50 percent-owned affiliate, South Fork Wind, LLC, whereby Eversource parent will guarantee South Fork Wind, LLC's performance of certain obligations, in an amount not to exceed $7.1 million, under a Power Purchase Agreement between the Long Island Power Authority and South Fork Wind, LLC (the Agreement). The guarantee expires upon the later of (i) the end of the Agreement term, January 2044, with the option to extend to January 2049 and (ii) full performance of the guaranteed obligations.

(5) Surety bonds expire in 2026. Expiration dates reflect termination dates, the majority of which will be renewed or extended. 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.

E. FERC ROE Complaints

Four separate complaints were filed at the FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively, the Complainants). In each of the first three complaints, filed on October 1, 2011, December 27, 2012, and July 31, 2014, respectively, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2005 and sought an order to reduce it prospectively from the date of the final FERC order and for the separate 15-month complaint periods. In the fourth complaint, filed April 29, 2016, the Complainants challenged the NETOs' base ROE billed of 10.57 percent and the maximum ROE for transmission incentive (incentive cap) of 11.74 percent, asserting that these ROEs were unjust and unreasonable.

The ROE originally billed during the period October 1, 2011 (beginning of the first complaint period) through October 15, 2014 consisted of a base ROE of 11.14 percent and incentives up to 13.1 percent. On October 16, 2014, FERC issued Opinion No. 531-A and set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period. This was also effective for all prospective billings to customers beginning October 16, 2014. This FERC order was vacated on April 14, 2017 by the U.S. Court of Appeals for the D.C. Circuit (the Court).

All amounts associated with the first complaint period have been refunded, which totaled $38.9 million (pre-tax and excluding interest) at Eversource and reflected both the base ROE and incentive cap prescribed by the FERC order. The refund consisted of $22.4 million for CL&P, $13.7 million for NSTAR Electric and $2.8 million for PSNH.

Eversource has recorded a reserve of $39.1 million (pre-tax and excluding interest) for the second complaint period as of both December 31, 2025 and 2024. This reserve represents the difference between the billed rates during the second complaint period and a 10.57 percent base ROE and 11.74 percent incentive cap. The reserve consisted of $21.4 million for CL&P, $14.6 million for NSTAR Electric and $3.1 million for PSNH as of both December 31, 2025 and 2024.

On October 16, 2018, FERC issued an order on all four complaints describing how it intends to address the issues that were remanded by the Court. FERC proposed a new framework to determine (1) whether an existing ROE is unjust and unreasonable and, if so, (2) how to calculate a replacement ROE. Initial briefs were filed by the NETOs, Complainants and FERC Trial Staff on January 11, 2019 and reply briefs were filed on March 8, 2019. The NETOs' brief was supportive of the overall ROE methodology determined in the October 16, 2018 order provided the FERC does not change the proposed methodology or alter its implementation in a manner that has a material impact on the results.

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, 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. These preliminary calculations are not binding and do not represent what we believe to be the most likely outcome of a final FERC order.

On November 21, 2019, FERC issued Opinion No. 569 affecting the two pending transmission ROE complaints against the Midcontinent ISO (MISO) transmission owners, in which FERC adopted a new methodology for determining base ROEs. Various parties sought rehearing. On December 23, 2019, the NETOs filed supplementary materials in the NETOs' four pending cases to respond to this new methodology because of the uncertainty of the applicability to the NETOs' cases. On May 21, 2020, the FERC issued its order in Opinion No. 569-A on the rehearing of the MISO transmission owners' cases, in which FERC again changed its methodology for determining the MISO transmission owners' base ROEs. On November 19, 2020, the FERC issued Opinion No. 569-B denying rehearing of Opinion No. 569-A and reaffirmed the methodology previously adopted in Opinion No. 569-A. The new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order to determine the NETOs' base ROEs in their four pending cases. FERC Opinion Nos. 569-A and 569-B were appealed to the Court. On August 9, 2022, the Court issued its decision vacating MISO ROE FERC Opinion Nos. 569, 569-A and 569-B and remanded to FERC to reopen the proceedings. The Court found that FERC’s development of the new return methodology was arbitrary and capricious due to FERC’s failure to offer a reasonable explanation for its decision to reintroduce the risk-premium financial model in its new methodology for calculating a just and reasonable return.

On October 17, 2024, FERC issued an order on the remand of the MISO ROE proceedings. The order addressed the Court’s decision that the reintroduction of the risk-premium financial model in the ROE methodology was arbitrary and capricious by removing the risk-premium financial model from the ROE methodology. 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 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. Doing so would violate the substance of the Court’s April 14, 2017 order and would violate the legal standard required by the Federal Power Act.

On February 4, 2025, the MISO transmission owners submitted a petition for review with the Court requesting review of the October 17, 2024 MISO ROE order on remand and a December 19, 2024 notice of denial of rehearing. The petition requests review of FERC’s decision to retroactively backdate the MISO transmission owners’ base ROE to the date of an earlier order that FERC abandoned when it issued Order No.

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

Eversource, CL&P, NSTAR Electric and PSNH currently record revenues at the 10.57 percent base ROE and incentive cap at 11.74 percent established in the October 16, 2014 FERC order.

A change of 10 basis points to the base ROE used to establish the reserves would impact Eversource’s after-tax earnings by an average of approximately $3 million for each of the four 15-month complaint periods.

F. Litigation and Legal Proceedings

Eversource, including CL&P, NSTAR Electric and PSNH, are involved in legal, tax and regulatory proceedings regarding matters arising in the ordinary course of business, which involve management's assessment to determine the probability of whether a loss will occur and, if probable, its best estimate of probable loss. The Company records and discloses losses when these losses are probable and reasonably estimable, and discloses matters when losses are probable but not estimable or when losses are reasonably possible. Legal costs related to the defense of loss contingencies are expensed as incurred.

G. 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.

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. 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. 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. 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.

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.

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.

14. LEASES

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. These lease agreements are classified as either finance or operating leases and the liability and right-of-use asset are recognized on the balance sheet at lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term.

Eversource determines whether or not a contract contains a lease based on whether or not it provides Eversource with the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. Eversource has elected the practical expedient to not separate non-lease components from lease components and instead to account for both as a single lease component, with the exception of the information technology asset class where the lease and non-lease components are separated.

The provisions of Eversource, CL&P, NSTAR Electric and PSNH lease agreements contain renewal options. The renewal options range from one year to twenty years. The renewal period is included in the measurement of the lease liability if it is reasonably certain that Eversource will exercise these renewal options.

For leases entered into or modified after the January 1, 2019 implementation date of the leases standard under Topic 842, the discount rate utilized for classification and measurement purposes as of the inception date of the lease is based on each company's collateralized incremental interest rate to borrow over a comparable term for an individual lease because the rate implicit in the lease is not determinable.

CL&P and PSNH entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease payments and therefore are not recognized as a lease liability on the balance sheet and are not reflected in the future minimum lease payments table below. Expense related to these contracts is included as variable lease cost in the table below. The expense and long-term obligation for these contracts are also included in Note 13B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the financial statements. In 2024, these contracts at PSNH were terminated.

The components of lease cost, prior to amounts capitalized, are as follows:


Eversource	For the Years Ended December 31,
(Millions of Dollars)	2025		2024		2023
Finance Lease Cost:
Amortization of Right-of-use-Assets	$	9.5	$	6.4	$	4.8
Interest on Lease Liabilities	2.9		2.7		2.0
Total Finance Lease Cost	12.4		9.1		6.8
Operating Lease Cost	13.0		15.2		11.4
Variable Lease Cost	18.6		18.3		69.2
Total Lease Cost	$	44.0	$	42.6	87.4


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Finance Lease Cost:
Amortization of Right-of-use-Assets	$	2.0	$	0.2	$	0.1	$	1.7	$	0.2	$	—	$	—	$	0.2	$	—
Interest on Lease Liabilities	0.9		0.6		—		0.8		0.6		—		—		0.6		—
Total Finance Lease Cost	2.9		0.8		0.1		2.5		0.8		—		—		0.8		—
Operating Lease Cost	2.8		5.1		1.9		2.6		5.3		1.8		0.7		3.0		0.4
Variable Lease Cost	18.6		—		—		18.9		—		(0.6)		21.9		—		47.3
Total Lease Cost	$	24.3	$	5.9	$	2.0	$	24.0	$	6.1	$	1.2	$	22.6	$	3.8	$	47.7

Operating lease cost, net of the capitalized portion, is included in Operations and Maintenance (or Purchased Power, Purchased Natural Gas and Transmission expense for transmission leases) on the statements of income. Amortization of finance lease assets is included in Depreciation on the statements of income. Interest expense on finance leases is included in Interest Expense on the statements of income.

Supplemental balance sheet information related to leases is as follows:


		As of December 31, 2025								As of December 31, 2024
(Millions of Dollars)	Balance Sheet Classification	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Operating Leases:
Right-of-use-Assets, Net	Other Long-Term Assets	$	47.4	$	6.1	$	27.2	$	1.5	$	56.1	$	7.7	$	29.4	$	3.3
Operating Lease Liabilities
Current Portion	Other Current Liabilities	$	10.0	$	2.3	$	3.9	$	1.5	$	10.4	$	2.2	$	3.7	$	1.7
Long-Term	Other Long-Term Liabilities	37.4		3.8		23.3		—		45.7		5.5		25.7		1.6
Total Operating Lease Liabilities		$	47.4	$	6.1	$	27.2	$	1.5	$	56.1	$	7.7	$	29.4	$	3.3
Finance Leases:
Right-of-use-Assets, Net	Property, Plant and Equipment, Net	$	76.6	$	14.6	$	2.6	$	0.6	$	61.9	$	16.6	$	2.8	$	—
Finance Lease Liabilities
Current Portion	Other Current Liabilities	$	24.5	$	1.6	$	—	$	0.1	$	5.6	$	1.5	$	—	$	—
Long-Term	Other Long-Term Liabilities	57.2		14.0		4.9		0.4		62.1		15.6		4.9		—
Total Finance Lease Liabilities		$	81.7	$	15.6	$	4.9	$	0.5	$	67.7	$	17.1	$	4.9	$	—

The finance lease payments that NSTAR Electric will make over the next twelve months are entirely interest-related, due to escalating payments. 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 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.”

Other information related to leases is as follows:


	As of December 31,
	2025								2024
	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Weighted-Average Remaining Lease Term (Years):
Operating Leases	9		3		12		2		9		4		12		2
Finance Leases	9		7		16		4		12		8		17		—
Weighted-Average Discount Rate (Percentage):
Operating Leases	4.1	%	5.3	%	4.2	%	5.1	%	4.1	%	5.2	%	4.2	%	5.2	%
Finance Leases	3.5	%	5.3	%	2.9	%	4.6	%	3.3	%	5.3	%	2.9	%	—	%


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
For the Year Ended December 31, 2025
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases	$	12.8	$	2.8	$	5.0	$	1.9
Operating Cash Flows from Finance Leases	2.8		0.9		0.7		—
Financing Cash Flows from Finance Leases	5.7		1.5		—		0.2
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities	1.4		0.8		0.1		0.1
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities	19.7		—		—		0.7


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
For the Year Ended December 31, 2024
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases	$	14.5	$	2.5	$	4.9	$	1.8
Operating Cash Flows from Finance Leases	2.6		0.7		0.7		—
Financing Cash Flows from Finance Leases	5.2		1.2		—		—
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities	15.3		7.8		5.7		0.3
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities	0.3		—		—		—


(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
For the Year Ended December 31, 2023
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases	$	10.5	$	0.7	$	2.5	$	0.4
Operating Cash Flows from Finance Leases	2.0		—		0.6		—
Financing Cash Flows from Finance Leases	3.9		—		—		—
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities	12.8		0.6		7.0		5.0
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities	18.5		18.3		—		—

As of December 31, 2025, there are no lease agreements for Eversource, CL&P, NSTAR Electric or PSNH which have been executed but have yet to commence and have not been recorded as right-of-use assets.

Future minimum lease payments, excluding variable costs, under long-term leases, as of December 31, 2025 are as follows:


	Operating Leases								Finance Leases
(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		Eversource		CL&P		NSTAR Electric		PSNH
Year Ending December 31,
2026	$	11.5	$	2.6	$	5.0	$	1.5	$	27.9	$	2.4	$	0.7	0.2
2027	7.1		2.0		2.8		0.1		8.2		2.5		0.7		0.2
2028	6.8		1.9		2.8		—		7.5		2.6		0.7		0.2
2029	4.7		0.1		2.5		—		7.3		2.6		0.7		—
2030	4.3		—		2.5		—		7.3		2.6		0.7		—
Thereafter	22.0		0.1		19.6		0.1		43.1		6.2		9.6		—
Future lease payments	56.4		6.7		35.2		1.7		101.3		18.9		13.1		0.6
Less amount representing interest	9.0		0.6		8.0		0.2		19.6		3.3		8.2		0.1
Present value of future minimum lease payments	$	47.4	$	6.1	$	27.2	$	1.5	$	81.7	$	15.6	$	4.9	$	0.5

15. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following methods and assumptions were used to estimate the fair value of each of the following financial instruments:

Preferred Stock, Long-Term Debt and Rate Reduction Bonds: The fair value of CL&P's and NSTAR Electric's preferred stock is based upon pricing models that incorporate interest rates and other market factors, valuations or trades of similar securities and cash flow projections. The fair value of long-term debt and RRB debt securities is based upon pricing models that incorporate quoted market prices for those issues or similar issues adjusted for market conditions, credit ratings of the respective companies and treasury benchmark yields. The fair values provided in the table below are classified as Level 2 within the fair value hierarchy. Carrying amounts and estimated fair values are as follows:


	Eversource				CL&P				NSTAR Electric				PSNH
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
As of December 31, 2025:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	126.1	$	116.2	$	92.9	$	43.0	$	33.2	$	—	$	—
Long-Term Debt	28,265.4		27,055.5		5,110.1		4,844.7		5,945.6		5,752.6		2,031.3		1,874.8
Rate Reduction Bonds	324.1		320.2		—		—		—		—		324.1		320.2

As of December 31, 2024:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6	$	123.8	$	116.2	$	90.3	$	43.0	$	33.5	$	—	$	—
Long-Term Debt	26,704.8		24,791.4		5,111.1		4,705.8		5,094.9		4,759.4		1,732.1		1,529.7
Rate Reduction Bonds	367.3		352.1		—		—		—		—		367.3		352.1

Derivative Instruments and Marketable Securities: Derivative instruments and investments in marketable securities are carried at fair value. For further information, see Note 4, "Derivative Instruments," and Note 5, "Marketable Securities," to the financial statements.

See Note 1H, "Summary of Significant Accounting Policies – Fair Value Measurements," for the fair value measurement policy and the fair value hierarchy.

16. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in accumulated other comprehensive income/(loss) by component, net of tax, are as follows:


	For the Year Ended December 31, 2025						For the Year Ended December 31, 2024
Eversource (Millions of Dollars)	Qualified Cash Flow Hedging Instruments		Defined Benefit Plans		Total		Qualified Cash Flow Hedging Instruments		Defined Benefit Plans		Total
Balance as of January 1st	$	(0.4)	$	(26.1)	$	(26.5)	$	(0.4)	$	(33.3)	$	(33.7)

OCI Before Reclassifications	—		0.5		0.5		—		(2.5)		(2.5)
Amounts Reclassified from AOCI	—		5.5		5.5		—		9.7		9.7
Net OCI	—		6.0		6.0		—		7.2		7.2
Balance as of December 31st	$	(0.4)	$	(20.1)	$	(20.5)	$	(0.4)	$	(26.1)	$	(26.5)

Defined benefit plan OCI amounts before reclassifications relate to actuarial gains and losses that arose during the year and were recognized in AOCI. 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 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:


	Amounts Reclassified from AOCI
Eversource (Millions of Dollars)	For the Years Ended December 31,								Statements of Income Line Item Impacted
2025			2024			2023




Unrealized Loss on Marketable Securities	—			—			(1.6)		Other Income, Net
Tax Effect	—			—			0.4		Income Tax Expense
Unrealized Loss on Marketable Securities, Net of Tax	—			—			(1.2)

Defined Benefit Plan Costs:
Amortization of Actuarial Losses	(4.2)			(6.8)			(7.0)		Other Income, Net (1)
Amortization of Prior Service Cost	—			(0.3)			(0.3)		Other Income, Net (1)
Settlement Losses	(3.3)			(4.3)			(12.4)		Other Income, Net (1)
Total Defined Benefit Plan Costs	(7.5)			(11.4)			(19.7)
Tax Effect	2.0			1.7			6.4		Income Tax Expense
Defined Benefit Plan Costs, Net of Tax	(5.5)			(9.7)			(13.3)
Total Amounts Reclassified from AOCI, Net of Tax	$	(5.5)		$	(9.7)		$	(14.5)

(1) These amounts are included in the computation of net periodic Pension, SERP and PBOP costs. See Note 1L, "Summary of Significant Accounting Policies – Other Income, Net" and Note 11A, "Employee Benefits – Pension Benefits and Postretirement Benefits Other Than Pension," for further information.

17. DIVIDEND RESTRICTIONS

Eversource parent's ability to pay dividends may be affected by certain state statutes, the ability of its subsidiaries to pay common dividends and the leverage restriction tied to its consolidated total indebtedness to total capitalization ratio requirement in its revolving credit agreements. Pursuant to the joint revolving credit agreement of Eversource, CL&P, PSNH, NSTAR Gas, Yankee Gas, EGMA and Aquarion Water Company of Connecticut, and to the NSTAR Electric revolving credit agreement, Eversource is required to maintain consolidated total indebtedness to total capitalization ratio of no greater than 70 percent at the end of each fiscal quarter and each other company is required to maintain consolidated total indebtedness to total capitalization ratio of no greater than 65 percent at the end of each fiscal quarter. As of December 31, 2025, all companies were in compliance with such covenant and in compliance with all such provisions of the revolving credit agreements that may restrict the payment of dividends as of December 31, 2025.

The Retained Earnings balances subject to dividend restrictions were $4.50 billion for Eversource, $2.93 billion for CL&P, $3.32 billion for NSTAR Electric and $903.0 million for PSNH as of December 31, 2025.

CL&P, NSTAR Electric and PSNH are subject to Section 305 of the Federal Power Act that makes it unlawful for a public utility to make or pay a dividend from any funds "properly included in its capital account." Management believes that this Federal Power Act restriction, as applied to CL&P, NSTAR Electric and PSNH, would not be construed or applied by the FERC to prohibit the payment of dividends from retained earnings for lawful and legitimate business purposes. In addition, certain state statutes may impose additional limitations on such companies and, including but not limited to, on NSTAR Gas, Yankee Gas, EGMA, and Aquarion’s operating companies. Such state law restrictions do not restrict the payment of dividends from retained earnings or net income.

18. COMMON SHARES

The following table sets forth the Eversource parent common shares and the shares of common stock of CL&P, NSTAR Electric and PSNH that were authorized and issued, as well as the respective per share par values:


	Shares
	Par Value		Authorized as of December 31, 2025 and 2024	Issued as of December 31,
	2025		2024
Eversource	$	5	410,000,000	382,854,501	375,724,367
CL&P	$	10	24,500,000	6,035,205	6,035,205
NSTAR Electric	$	1	100,000,000	200	200
PSNH	$	1	100,000,000	301	301

Common Share Issuances: 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 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.

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.

Treasury Shares: As of December 31, 2025 and 2024, there were 7,437,621 and 9,116,315 Eversource common shares held as treasury shares, respectively. As of December 31, 2025 and 2024, there were 375,416,880 and 366,608,052 Eversource common shares outstanding, respectively.

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. 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.

19. PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION

The CL&P and NSTAR Electric preferred stock is not subject to mandatory redemption and is presented as a noncontrolling interest of a subsidiary in Eversource's financial statements.

CL&P is authorized to issue up to 9,000,000 shares of preferred stock, par value $50 per share, and NSTAR Electric is authorized to issue 2,890,000 shares of preferred stock, par value $100 per share. Holders of preferred stock of CL&P and NSTAR Electric are entitled to receive cumulative dividends in preference to any payment of dividends on the common stock. Upon liquidation, holders of preferred stock of CL&P and NSTAR Electric are entitled to receive a liquidation preference before any distribution to holders of common stock in an amount equal to the par value of the preferred stock plus accrued and unpaid dividends. If the net assets were to be insufficient to pay the liquidation preference in full, then the net assets would be distributed ratably to all holders of preferred stock. The preferred stock of CL&P and NSTAR Electric is subject to optional redemption by the CL&P and NSTAR Electric Boards of Directors at any time.

Details of preferred stock not subject to mandatory redemption are as follows (in millions, except in redemption price and shares):


		Redemption Price Per Share		Shares Outstanding as of December 31,		As of December 31,
Series		2025		2024	2025	2024
CL&P
$1.90	Series of 1947	$	52.50	163,912	163,912	$	8.2	$	8.2
$2.00	Series of 1947	$	54.00	336,088	336,088	16.8		16.8
$2.04	Series of 1949	$	52.00	100,000	100,000	5.0		5.0
$2.20	Series of 1949	$	52.50	200,000	200,000	10.0		10.0
3.90%	Series of 1949	$	50.50	160,000	160,000	8.0		8.0
$2.06	Series E of 1954	$	51.00	200,000	200,000	10.0		10.0
$2.09	Series F of 1955	$	51.00	100,000	100,000	5.0		5.0
4.50%	Series of 1956	$	50.75	104,000	104,000	5.2		5.2
4.96%	Series of 1958	$	50.50	100,000	100,000	5.0		5.0
4.50%	Series of 1963	$	50.50	160,000	160,000	8.0		8.0
5.28%	Series of 1967	$	51.43	200,000	200,000	10.0		10.0
$3.24	Series G of 1968	$	51.84	300,000	300,000	15.0		15.0
6.56%	Series of 1968	$	51.44	200,000	200,000	10.0		10.0
Total CL&P				2,324,000	2,324,000	116.2		116.2
NSTAR Electric
4.25%	Series of 1956	$	103.625	180,000	180,000	18.0		18.0
4.78%	Series of 1958	$	102.80	250,000	250,000	25.0		25.0
Total NSTAR Electric				430,000	430,000	43.0		43.0
Fair Value Adjustment due to Merger with NSTAR						(3.6)		(3.6)


Total Eversource - Noncontrolling Interest - Preferred Stock of Subsidiaries						$	155.6	$	155.6

20. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $7.5 million for each of the years ended December 31, 2025, 2024 and 2023. These dividends were presented as Net Income Attributable to Noncontrolling Interests on the Eversource statements of income. Noncontrolling Interest – Preferred Stock of Subsidiaries on the Eversource balance sheets totaled $155.6 million as of December 31, 2025 and 2024. On the Eversource balance sheets, Common Shareholders' Equity was fully attributable to Eversource parent and Noncontrolling Interest – Preferred Stock of Subsidiaries was fully attributable to the noncontrolling interest.

For the years ended December 31, 2025, 2024 and 2023, there was no change in ownership of the common equity of CL&P and NSTAR Electric.

21. EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per share is computed based upon the weighted average number of common shares outstanding during each period. Diluted earnings/(loss) per share is computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect of certain share-based compensation awards as if they were converted into outstanding common shares. The dilutive effect of unvested RSU and performance share awards is calculated using the treasury stock method. 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, 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:


Eversource (Millions of Dollars, except share information)	For the Years Ended December 31,
2025			2024			2023
Net Income/(Loss) Attributable to Common Shareholders	$	1,692.4		$	811.7		$	(442.2)
Weighted Average Common Shares Outstanding:
Basic	370,852,601			357,482,965			349,580,638
Dilutive Effect	406,663			296,443			259,843
Diluted	371,259,264			357,779,408			349,840,481
Basic Earnings/(Loss) Per Common Share	$	4.56		$	2.27		$	(1.27)
Diluted Earnings/(Loss) Per Common Share	$	4.56		$	2.27		$	(1.26)

22. REVENUES

Revenue is recognized when promised goods or services (referred to as performance obligations) are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. A five-step model is used for recognizing and measuring revenue from contracts with customers, which includes identifying the contract with the customer, identifying the performance obligations promised within the contract, determining the transaction price (the amount of consideration to which the company expects to be entitled), allocating the transaction price to the performance obligations and recognizing revenue when (or as) the performance obligation is satisfied.

The following tables present operating revenues disaggregated by revenue source:


	For the Year Ended December 31, 2025
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	5,215.5	$	1,474.9	$	—	$	167.8	$	—	$	—	$	6,858.2
Commercial	3,273.4		716.3		—		71.1		—		(8.9)		4,051.9
Industrial	421.6		210.0		—		4.8		—		(26.1)		610.3
Total Retail Tariff Sales Revenues	8,910.5		2,401.2		—		243.7		—		(35.0)		11,520.4
Wholesale Transmission Revenues	—		—		2,452.1		—		—		(1,786.8)		665.3
Wholesale Market Sales Revenues	1,004.7		184.0		—		4.4		—		—		1,193.1
Other Revenues from Contracts with Customers	88.3		5.8		14.4		2.6		1,732.7		(1,729.5)		114.3

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
Alternative Revenue Programs	17.2		40.8		(183.7)		(15.0)		—		171.2		30.5
Other Revenues	18.9		3.0		0.5		1.2		—		—		23.6
Total Operating Revenues	$	10,039.6	$	2,634.8	$	2,283.3	$	236.9	$	1,732.7	$	(3,380.1)	$	13,547.2


	For the Year Ended December 31, 2024
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	4,904.8	$	1,129.1	$	—	$	150.4	$	—	$	—	$	6,184.3
Commercial	2,973.3		588.0		—		70.3		—		(7.7)		3,623.9
Industrial	389.0		172.5		—		4.7		—		(22.4)		543.8
Total Retail Tariff Sales Revenues	8,267.1		1,889.6		—		225.4		—		(30.1)		10,352.0
Wholesale Transmission Revenues	—		—		2,032.4		—		—		(1,529.3)		503.1
Wholesale Market Sales Revenues	658.9		161.9		—		4.2		—		—		825.0
Other Revenues from Contracts with Customers	92.2		5.1		13.9		3.8		1,701.3		(1,694.6)		121.7

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
Alternative Revenue Programs	28.7		44.5		74.2		(5.3)		—		(67.2)		74.9
Other Revenues	19.6		2.8		0.5		1.2		—		—		24.1
Total Operating Revenues	$	9,066.5	$	2,103.9	$	2,121.0	$	229.3	$	1,701.3	$	(3,321.2)	$	11,900.8


	For the Year Ended December 31, 2023
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	5,054.2	$	1,145.4	$	—	$	144.7	$	—	$	—	$	6,344.3
Commercial	2,893.2		637.7		—		69.8		—		(4.8)		3,595.9
Industrial	352.4		186.8		—		4.5		—		(19.7)		524.0
Total Retail Tariff Sales Revenues	8,299.8		1,969.9		—		219.0		—		(24.5)		10,464.2
Wholesale Transmission Revenues	—		—		1,777.5		—		—		(1,310.5)		467.0
Wholesale Market Sales Revenues	625.0		206.7		—		3.9		—		—		835.6
Other Revenues from Contracts with Customers	82.6		5.6		18.9		8.1		1,636.6		(1,628.0)		123.8

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
Alternative Revenue Programs	(54.3)		35.5		118.9		0.4		—		(106.5)		(6.0)
Other Revenues	20.4		4.0		0.6		1.1		—		—		26.1
Total Operating Revenues	$	8,973.5	$	2,221.7	$	1,915.9	$	232.5	$	1,636.6	$	(3,069.5)	$	11,910.7


	For the Years Ended December 31,
	2025						2024						2023
(Millions of Dollars)	CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH		CL&P		NSTAR Electric		PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	2,716.1	$	1,802.6	$	696.8	$	2,493.7	$	1,771.8	$	639.3	$	2,597.8	$	1,691.0	$	765.4
Commercial	1,263.9		1,650.0		361.7		1,164.8		1,466.7		343.6		1,082.1		1,442.3		369.6
Industrial	175.4		143.3		102.9		164.2		118.1		106.7		137.2		123.2		92.0
Total Retail Tariff Sales Revenues	4,155.4		3,595.9		1,161.4		3,822.7		3,356.6		1,089.6		3,817.1		3,256.5		1,227.0
Wholesale Transmission Revenues	1,037.8		901.1		513.2		870.8		794.1		367.5		794.7		692.0		290.8
Wholesale Market Sales Revenues	801.3		169.6		33.8		491.9		131.1		35.9		429.1		131.8		64.1
Other Revenues from Contracts with Customers	36.1		46.5		22.5		36.7		50.2		21.2		36.7		49.1		18.1

Total Revenues from Contracts with Customers	6,030.6		4,713.1		1,730.9		5,222.1		4,332.0		1,514.2		5,077.6		4,129.4		1,600.0
Alternative Revenue Programs	(79.2)		(4.9)		(82.4)		45.4		36.7		20.8		66.8		(52.0)		49.8
Other Revenues	6.8		9.7		2.9		9.0		8.5		2.6		9.6		8.4		3.0
Eliminations	(717.2)		(731.3)		(275.0)		(661.5)		(656.3)		(243.1)		(575.2)		(570.3)		(204.9)
Total Operating Revenues	$	5,241.0	$	3,986.6	$	1,376.4	$	4,615.0	$	3,720.9	$	1,294.5	$	4,578.8	$	3,515.5	$	1,447.9

Retail Tariff Sales: Regulated utilities provide products and services to their regulated customers under rates, pricing, payment terms and conditions of service, regulated by each state regulatory agency. The arrangement whereby a utility provides commodity service to a customer for a price approved by the respective state regulatory commission is referred to as a tariff sale contract, and the tariff governs all aspects of the provision of regulated services by utilities. The majority of revenue for Eversource, CL&P, NSTAR Electric and PSNH is derived from regulated retail tariff sales for the sale and distribution of electricity, natural gas and water to residential, commercial and industrial retail customers.

The utility's performance obligation for the regulated tariff sales is to provide electricity, natural gas or water to the customer as demanded. The promise to provide the commodity represents a single performance obligation, as it is a promise to transfer a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. Revenue is recognized over time as the customer simultaneously receives and consumes the benefits provided by the utility, and the utility satisfies its performance obligation. Revenue is recognized based on the output method as there is a directly observable output to the customer (electricity, natural gas or water units delivered to the customer and immediately consumed). Each Eversource utility is entitled to be compensated for performance completed to date (service taken by the customer) until service is terminated.

In regulated tariff sales, the transaction prices are the rates approved by the respective state regulatory commissions. In general, rates can only be changed through formal proceedings with the state regulatory commissions. These rates are designed to recover the costs to provide service to customers and include a return on investment. Regulatory commission-approved tracking mechanisms are included in these rates and are also used to recover, on a fully-reconciling basis, certain costs, such as the procurement of energy supply, state mandated energy purchase agreements, retail transmission charges, energy efficiency program costs, net metering for distributed generation, and restructuring and stranded costs, among others. These tracking mechanisms result in rates being changed periodically to ensure recovery of actual costs incurred and the refund of any overcollection of costs.

Electric customers may elect to purchase electricity from each Eversource electric utility or may contract separately with a competitive third-party supplier. Certain eligible natural gas customers may elect to purchase natural gas from each Eversource natural gas utility or may contract separately with a gas supply operator. Revenue is not recorded for the sale of the electricity or the natural gas commodity to customers who have contracted separately with these suppliers, only the delivery to a customer, as the utility is acting as an agent on behalf of the supplier.

Wholesale Transmission Revenues: The Eversource electric transmission-owning companies (CL&P, NSTAR Electric and PSNH) each own and maintain transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England. CL&P, NSTAR Electric and PSNH, as well as most other New England utilities, are parties to a series of agreements that provide for coordinated planning and operation of the region's transmission facilities and the rules by which they acquire transmission services. The Eversource electric transmission-owning companies have a combination of FERC-approved regional and local formula rates that are designed to work in tandem to recover all their transmission costs. These rates are part of the ISO-NE Tariff. Regional rates recover the costs of higher voltage transmission facilities that benefit the region and are collected from all New England transmission customers, including the Eversource distribution businesses. Eversource's local rates generally recover the costs of transmission facilities that do not provide a benefit to the region, and are collected from Eversource's distribution businesses and other transmission customers. The distribution businesses of Eversource, in turn, recover the FERC approved charges from retail customers through annual tracking mechanisms, which are retail tariff sales.

The utility's performance obligation for regulated wholesale transmission sales is to provide transmission services to the customer as demanded. The promise to provide transmission service represents a single performance obligation. The transaction prices are the transmission rate formulas as defined by the ISO-NE Tariff and are regulated and established by FERC. Wholesale transmission revenue is recognized over time as the performance obligation is completed, which occurs as transmission services are provided to customers. The revenue is recognized based on the output method. Each Eversource utility is entitled to be compensated for performance completed to date (e.g., use of the transmission system by the customer).

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 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. Pricing is set by the wholesale market. The wholesale transactions in the ISO-NE market occur on a day-ahead basis or a real-time basis (daily) and are, therefore, short-term. Transactions are tracked and reported by ISO-NE net by the hour, which is the net hourly position of energy sales and purchases by each market participant. The performance obligation for ISO-NE energy transactions is defined to be the net by hour transaction. Revenue is recognized when the performance obligation for these energy sales transactions is satisfied, which is when the sale occurs and the energy is transferred to the customer. For sales of natural gas, transportation, and natural gas pipeline capacity to third-party marketers, revenue is recognized when the performance obligation is satisfied at the point in time the sale occurs and the natural gas or related product is transferred to the marketer. RECs are sold to various counterparties, and revenue is recognized when the performance obligation is satisfied upon transfer of title to the customer through the New England Power Pool Generation Information System. Wholesale transactions also include the sale of CL&P’s, NSTAR Electric’s and PSNH’s transmission rights associated with their proportionate equity ownership share in the transmission lines of the Hydro-Québec system in Canada.

Other Revenues from Contracts with Customers: Other revenues from contracts with customers primarily include property rentals that are not deemed leases. These revenues are generally recognized on a straight-line basis over time as the service is provided to the customer. Other revenues also include revenues from Eversource's service company, which is eliminated in consolidation.

Alternative Revenue Programs: In accordance with accounting guidance for rate-regulated operations, certain of Eversource's utilities' rate making mechanisms qualify as alternative revenue programs (ARPs) if they meet specified criteria, in which case revenues may be recognized prior to billing based on allowed levels of collection in rates. Eversource's utility companies recognize revenue and record a regulatory asset or liability once the condition or event allowing for the automatic adjustment of future rates occurs. ARP revenues include both the recognition of the deferral adjustment to ARP revenues, when the regulator-specified condition or event allowing for additional billing or refund has occurred, and an equal and offsetting reversal of the ARP deferral to revenues as those amounts are reflected in the price of service in subsequent periods.

Eversource’s ARPs include the revenue decoupling mechanism, the annual reconciliation adjustment to transmission formula rates, and certain capital tracker mechanisms. Certain Eversource electric, natural gas and water companies, including CL&P and NSTAR Electric, have revenue decoupling mechanisms approved by a regulatory commission (decoupled companies). Decoupled companies’ distribution revenues are not directly based on sales volumes. The decoupled companies reconcile their annual base distribution rate recovery to pre-established levels of baseline distribution delivery service revenues, with any difference between the allowed level of distribution revenue and the actual amount realized adjusted through subsequent rates. The transmission formula rates provide for the annual reconciliation and recovery or refund of estimated costs to actual costs. The financial impacts of differences between actual and estimated costs are deferred for future recovery from, or refund to, transmission customers. This transmission deferral reconciles billed transmission revenues to the revenue requirement for our transmission businesses.

Other Revenues: Other Revenues include certain fees charged to customers that are not considered revenue from contracts with customers. Other revenues also include lease revenues under lessor accounting guidance of $3.1 million ($0.5 million at CL&P and $1.8 million at NSTAR Electric), $2.5 million ($0.5 million at CL&P and $1.2 million at NSTAR Electric), and $4.6 million, ($0.7 million at CL&P and $2.5 million at NSTAR Electric) for the years ended December 31, 2025, 2024 and 2023, respectively.

Intercompany Eliminations: Intercompany eliminations are primarily related to the Eversource electric transmission revenues that are derived from ISO-NE regional transmission charges to the distribution businesses of CL&P, NSTAR Electric and PSNH that recover the costs of the wholesale transmission business, and revenues from Eversource's service company. Intercompany revenues and expenses between the Eversource wholesale transmission businesses and the Eversource distribution businesses and from Eversource's service company are eliminated in consolidation and included in "Eliminations" in the tables above.

Receivables: Receivables, Net on the balance sheet primarily includes trade receivables from retail customers and customers related to wholesale transmission contracts, wholesale market sales, sales of RECs, and property rentals. In general, retail tariff customers and wholesale transmission customers are billed monthly, and the payment terms are generally due and payable upon receipt of the bill.

Unbilled Revenues: Unbilled Revenues on the balance sheet represent estimated amounts due from retail customers for electricity, natural gas or water delivered to customers but not yet billed. The utility company has satisfied its performance obligation and the customer has received and consumed the commodity as of the balance sheet date, and therefore, the utility company records revenue for those services in the period the services were provided. Only the passage of time is required before the company is entitled to payment for the satisfaction of the performance obligation. Payment from customers is due monthly as services are rendered and amounts are billed. Actual amounts billed to customers when meter readings become available may vary from the estimated amount.

Unbilled revenues are recognized by allocating estimated unbilled sales volumes to the respective customer classes, and then applying an estimated rate by customer class to those sales volumes. Unbilled revenue estimates reflect seasonality, weather, customer usage patterns, customer rates in effect for customer classes, and the timing of customer billing. The companies that have a decoupling mechanism record a regulatory deferral to reflect the actual allowed amount of revenue associated with their respective decoupled distribution rate design.

Practical Expedients: Eversource has elected practical expedients in the accounting guidance that allow the company to record revenue in the amount that the company has a right to invoice, if that amount corresponds directly with the value to the customer of the company's performance to date, and not to disclose related unsatisfied performance obligations. Retail and wholesale transmission tariff sales fall into this category, as these sales are recognized as revenue in the period the utility provides the service and completes the performance obligation, which is the same as the monthly amount billed to customers. There are no other material revenue streams for which Eversource has unsatisfied performance obligations.

23. SEGMENT INFORMATION

Eversource is organized into the Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution reportable segments and Other based on a combination of factors, including the characteristics of each segments' services, the sources of operating revenues and expenses and the regulatory environment in which each segment operates. The Electric Distribution segment consists of the rate-regulated distribution businesses of CL&P, NSTAR Electric and PSNH, and includes the results of NSTAR Electric's solar power facilities. The Electric Transmission segment consists of the rate-regulated electric transmission businesses of CL&P, NSTAR Electric and PSNH. The Natural Gas Distribution segment consists of the rate-regulated businesses of Yankee Gas, NSTAR Gas and EGMA. The Water Distribution segment consists of the rate-regulated business of Aquarion. These reportable segments represent substantially all of Eversource's total consolidated revenues. Revenues from the sale of electricity, natural gas and water primarily are derived from residential, commercial and industrial customers and are not dependent on any single customer.

Eversource's reportable segments are determined based upon the level at which Eversource's chief operating decision maker assesses performance and makes decisions about the allocation of company resources. The chief operating decision maker uses the net income of each reportable segment to evaluate return generated from assets and decide how to reinvest profits and allocate resources, to monitor budget-to-actual results, in the planning and forecasting process, in determining compensation achievement, and in benchmarking to Eversource’s peers. Eversource’s chief operating decision maker is its chief executive officer. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The remainder of Eversource's operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of CYAPC and YAEC, 4) the results of other unregulated subsidiaries, which are not part of its core business, and 5) Eversource parent's equity ownership interests that are not consolidated, which primarily included the offshore wind investments until sale of the three offshore wind projects in 2024 and a natural gas pipeline owned by Enbridge, Inc.

In the ordinary course of business, Yankee Gas, NSTAR Gas and EGMA purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $77.7 million annually and are classified as Purchased Power, Purchased Natural Gas and Transmission on the Eversource statements of income.

Each of Eversource's subsidiaries, including CL&P, NSTAR Electric and PSNH, has one reportable segment.

Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the capitalized and deferred portions of pension and PBOP income/expense. Eversource's segment information is as follows:


	For the Year Ended December 31, 2025
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	$	10,039.6	$	2,634.8	$	2,283.3	$	236.9	$	1,732.7	$	(3,380.1)	$	13,547.2
Depreciation and Amortization	(1,435.1)		(279.7)		(437.1)		(46.8)		(220.1)		14.3		(2,404.5)
Operations and Maintenance (1)
Operations, Excluding Storm Costs	(432.8)		(181.5)		(152.0)
Corporate Shared Services	(443.4)		(114.2)		(77.0)
Storm Costs	(89.2)		—		—
Employee Benefits	(266.6)		(89.3)		(58.6)
Uncollectible Expense	(167.2)		(74.3)		—
Other	(170.8)		(46.6)		(79.7)
Total Operations and Maintenance	(1,570.0)		(505.9)		(367.3)		(95.6)		(1,285.2)		1,750.2		(2,073.8)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)	(6,048.0)		(1,314.4)		(302.2)		(27.4)		(3.9)		1,615.6		(6,080.3)

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	—		—		—		—		(284.0)		—		(284.0)
Interest Income	98.2		26.8		0.4		0.1		166.0		(166.0)		125.5
Other Income, Net	155.9		30.5		40.9		6.1		1,943.5		(1,923.5)		253.4
Income Tax (Expense)/Benefit	(182.6)		(112.2)		(266.8)		1.7		419.6		—		(140.3)
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 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
Cash Flows Used for Investments in Plant	$	1,872.6	$	834.6	$	1,094.0	$	165.3	$	192.2	$	—	$	4,158.7


	For the Year Ended December 31, 2024
Eversource (Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	$	9,066.5	$	2,103.9	$	2,121.0	$	229.3	$	1,701.3	$	(3,321.2)	$	11,900.8
Depreciation and Amortization	(934.7)		(216.6)		(405.1)		(32.3)		(198.7)		11.0		(1,776.4)
Operations and Maintenance (1)
Operations, Excluding Storm Costs	(447.3)		(180.9)		(135.1)
Corporate Shared Services	(457.1)		(106.1)		(74.6)
Storm Costs	(76.8)		—		—
Employee Benefits	(202.5)		(76.9)		(52.7)
Uncollectible Expense	(182.8)		(48.4)		—
Other	(135.9)		(29.2)		(71.1)
Total Operations and Maintenance	(1,502.4)		(441.5)		(333.5)		(98.7)		(1,350.5)		1,713.7		(2,012.9)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)	(5,685.3)		(1,007.1)		(276.0)		(26.3)		(7.6)		1,596.5		(5,405.8)
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	—		—		—		—		(464.0)		—		(464.0)
Interest Income	114.6		23.2		0.3		0.1		218.3		(218.3)		138.2
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)
Net Income/(Loss)	636.3		291.0		727.5		(253.7)		777.5		(1,359.4)		819.2
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
Total Assets (as of)	$	32,031.9	$	9,786.7	$	16,070.9	$	2,515.8	$	29,041.1	$	(29,851.9)	$	59,594.5
Cash Flows Used for Investments in Plant	$	1,807.4	$	934.5	$	1,343.3	$	161.8	$	233.5	$	—	$	4,480.5


	For the Year Ended December 31, 2023
Eversource(Millions of Dollars)	Electric Distribution		Natural Gas Distribution		Electric Transmission		Water Distribution		Other		Eliminations		Total
Operating Revenues	$	8,973.5	$	2,221.7	$	1,915.9	$	232.5	$	1,636.6	$	(3,069.5)	$	11,910.7
Depreciation and Amortization	(18.2)		(214.2)		(371.2)		(56.0)		(158.8)		2.7		(815.7)
Operations and Maintenance (1)
Operations, Excluding Storm Costs	(418.2)		(172.8)		(124.7)
Corporate Shared Services	(397.2)		(103.0)		(62.5)
Storm Costs	(71.1)		—		(1.3)
Employee Benefits	(175.6)		(76.6)		(46.1)
Uncollectible Expense	(161.9)		(64.8)		—
Other	(167.9)		(27.5)		(57.4)
Total Operations and Maintenance	(1,391.9)		(444.7)		(292.0)		(93.2)		(1,325.6)		1,651.7		(1,895.7)
Purchased Power, Purchased Natural Gas and Transmission, Other Taxes and Energy Efficiency (2)	(6,712.7)		(1,217.9)		(258.5)		(23.9)		(4.2)		1,417.2		(6,800.0)
Operating Income	850.7		344.9		994.2		59.4		148.0		2.1		2,399.3
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/(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/(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/(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

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Costs of the operations organization include labor and overtime, outside services, vehicles, vegetation management, employee expenses, fees and payments, regulatory assessments, and materials, partially offset by reimbursements. Corporate shared services include corporate centralized functions. Costs within these corporate functions primarily include labor, services by vendors, fees and payments, insurance, and regulatory assessments. Other includes information technology system depreciation at Eversource Service charged to the operating businesses, as well as storm funding, capitalization and various other corporate costs. The segment-level operating expense for information technology system depreciation is eliminated and reflected in depreciation in Eversource’s consolidation.

For the water distribution segment, the chief operating decision maker is provided with total operations and maintenance expense information to manage its operations. Operations and maintenance expenses primarily include employee costs, benefits, and outside services.

(2) Other segment line items for the electric distribution, electric transmission and natural gas distribution segments primarily include purchased power, purchased natural gas and transmission, taxes other than income taxes including property, payroll-related and Connecticut gross earnings taxes, and energy efficiency program expenses. Other segment line items for the water distribution business primarily include taxes other than income taxes.

24. ASSETS 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. Eversource performed an impairment test by comparing the fair value of the business to its carrying value and recorded a goodwill impairment of $297 million, as the estimated fair value of the business based on the anticipated sale was less than the carrying value. The fair value included future cash outflows of approximately $140 million of estimated income taxes as a result of the transaction. The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.

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:


(Millions of Dollars)
Restricted Cash	$	5.8
Receivables, Net	14.4
Unbilled Revenues	11.5


Prepayments and Other Current Assets	24.6
Total Current Assets Held for Sale	$	56.3
Property, Plant and Equipment, Net	$	1,885.2
Regulatory Assets	51.2
Goodwill	662.5

Other Long-Term Assets	12.2
Total Long-Term Assets Held for Sale	$	2,611.1


Accounts Payable	$	24.2

Other Current Liabilities	28.4
Total Current Liabilities Held for Sale	$	52.6
Regulatory Liabilities	$	132.2

Other Long-Term Liabilities	266.7
Total Long-Term Liabilities Held for Sale	$	398.9

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.

25. GOODWILL

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. The following table presents Eversource’s goodwill by reportable segment:


(Millions of Dollars)	Electric Distribution		Electric Transmission		Natural Gas Distribution		Water Distribution		Total
Balance as of January 1, 2024	$	2,543.6	$	576.8	$	451.0	$	960.7	$	4,532.1
Sale of Water Unregulated Business and Water Acquisition, net	—		—		—		(1.2)		(1.2)
Water Goodwill Impairment	—		—		—		(297.0)		(297.0)
Water Goodwill Reclassified as Held for Sale	—		—		—		(662.5)		(662.5)
Balance as of December 31, 2024	$	2,543.6	$	576.8	$	451.0	$	—	$	3,571.4
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.

Goodwill is not amortized but is subject to an assessment for impairment at least annually and more frequently if indicators of impairment arise that would more likely than not reduce the fair value of Eversource’s reporting units below their carrying amounts. Eversource's reporting units for the purpose of testing goodwill are Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution. These reporting units are consistent with the operating segments underlying the reportable segments identified in Note 23, "Segment Information," to the financial statements.

In assessing goodwill for impairment, an entity is permitted to first assess qualitatively whether it is more likely than not that goodwill impairment exists as of the annual impairment test date. If after performing the qualitative assessment it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill), then a quantitative goodwill impairment test is performed. A quantitative impairment test is required only if it is concluded that it is more likely than not that a reporting unit’s carrying value may not be recoverable. The quantitative assessment compares the estimated fair value of a reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit. A resulting write-down, if any, would be charged to Operating Expenses.

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. Eversource compared the estimated fair value of the business from the anticipated transaction to its carrying value. 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 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 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. 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.

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.

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