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A.    Basis of Presentation

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 Eversource Gas Company of Massachusetts (natural gas utilities) and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 4.3 million electric, natural gas and water customers through nine regulated utilities in Connecticut, Massachusetts and New Hampshire.

On October 9, 2020, Eversource completed the acquisition of certain assets that comprised NiSource’s local natural gas distribution business in Massachusetts, which was previously doing business as Columbia Gas of Massachusetts (CMA). The natural gas distribution assets acquired from CMA were assigned to Eversource Gas Company of Massachusetts, an indirect wholly-owned subsidiary of Eversource formed in 2020. The LNG assets acquired from CMA were assigned to Hopkinton LNG Corp. The cash purchase price was $1.1 billion plus a target working capital amount, which is subject to adjustment to reflect actual working capital as of the closing date. See Note 17, "Acquisition of Assets of Columbia Gas of Massachusetts," for further information.

The unaudited condensed 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 unaudited condensed consolidated financial statements of Eversource, NSTAR Electric and PSNH and the unaudited condensed financial statements of CL&P are herein collectively referred to as the "financial statements."

The combined notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations.  The accompanying financial statements should be read in conjunction with the Combined Notes to Financial Statements included in Item 8, "Financial Statements and Supplementary Data," of the Eversource 2019 Form 10-K, which was filed with the SEC on February 27, 2020. 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.

The financial statements contain, in the opinion of management, all adjustments (including normal, recurring adjustments) necessary to present fairly Eversource's, CL&P's, NSTAR Electric's and PSNH's financial position as of September 30, 2020 and December 31, 2019, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, 2020 and 2019, and the cash flows for the nine months ended September 30, 2020 and 2019. The results of operations and comprehensive income for the three and nine months ended September 30, 2020 and 2019 and the cash flows for the nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results expected for a full year.  

Eversource consolidates the operations of CYAPC and YAEC, both of which are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. Eversource consolidates 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 several equity ownership interests that are not consolidated and are accounted for under the equity method.

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.

COVID-19 has adversely affected workers and the economy and caused volatility in the financial markets. Due to the inherent uncertainty of the unprecedented and evolving situation, we continue to closely monitor how COVID-19 related developments affect Eversource. As of the date of our filing and based on available information, we have not experienced significant impacts directly related to the pandemic that have adversely affected our current operations, financial position, results of operations, and cash flows. The extent of the impact to us in the future will vary and depend in large part on the duration, scope and severity of the pandemic and the timing and extent of COVID-19 relief legislation, and the resulting impact on economic, health care and capital market conditions. The future impact will also depend on the outcome of planned proceedings before our state regulatory commissions to recover our incremental costs associated with COVID-19.

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We believe that we have in place, or are developing, successful mechanisms with our state regulatory commissions that allow, or will allow, us to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses, while balancing the impact on our customers’ bills and our operating cash flows. See Note 1C, "Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts," for discussion of our evaluation of the allowance for doubtful accounts as of September 30, 2020 in light of the COVID-19 pandemic.

An extended economic slowdown has resulted in lower demand for electricity, natural gas and/or water by our commercial and industrial customers. However, fluctuations in retail sales volumes for CL&P, NSTAR Electric, Yankee Gas, NSTAR Gas, Eversource Gas Company of Massachusetts, and our Connecticut water distribution business do not materially impact earnings due to their respective state regulatory commission-approved distribution revenue decoupling mechanisms.

As of September 30, 2020, we did not identify indicators or triggering events for impairments to our goodwill, long-lived assets, available-for-sale debt securities, or equity method investment carrying values.

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

B.    Accounting Standards

Accounting Standards Issued but Not Yet Effective: In December 2019, the FASB issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the general principles of current income tax guidance in ASC 740 and simplifies and improves consistency in application of that income tax guidance through clarifications of and amendments to ASC 740. The guidance is effective in the first quarter of 2021. The ASU is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric and PSNH.

Accounting Standards Recently Adopted: On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides a model for recognizing credit losses on financial instruments based on an estimate of current expected losses, requiring immediate recognition of credit losses expected over the life of a financial instrument. The Company determined the impacts of this standard on the allowance for credit losses on its financial instruments, primarily accounts receivable.  As of January 1, 2020, the Company recorded increases to the allowance for uncollectible accounts for late fees and other receivable amounts of $1.6 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively. The impact to retained earnings, net of tax, was $1.5 million, $0.9 million, $0.2 million and $0.3 million at Eversource, CL&P, NSTAR Electric and PSNH, respectively.

The Company also adjusted the allowance for uncollectible amounts of hardship receivables and other low-income assistance programs, which are ultimately collectible in rates at specified points in time under approved regulatory mechanisms. The impact on the allowance, which was offset in other long-term assets on the balance sheets, was an increase of $22.2 million and $21.3 million at Eversource and CL&P, respectively, and a decrease of $1.5 million at NSTAR Electric. See Note 1C, “Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts,” for further information.

The Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment as of January 1, 2020. The ASU simplified the accounting for goodwill impairment by removing a complex step in the goodwill impairment test. Under the guidance, goodwill impairment is measured as the amount by which its carrying value exceeds its fair value. The ASU is not expected to have an impact on the financial statements of Eversource.

On January 1, 2020, the Company adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligned the requirements for capitalizing costs incurred to implement a cloud computing arrangement with existing internal-use software guidance. The prospective implementation of this standard did not have any impact on the financial statements of Eversource, CL&P, NSTAR Electric or PSNH for the period ending September 30, 2020.

On January 1, 2020, the Company prospectively adopted ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modified fair value disclosure requirements. The standard includes new disclosure requirements for Level 3 unobservable inputs and eliminated the requirement to disclose certain information relating to transfers between levels. The modified disclosures are included in Note 1D, “Summary of Significant Accounting Policies - Fair Value Measurements,” and Note 4, “Derivative Instruments.”

C.    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).

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Receivables are presented net of expected credit losses at estimated net realizable value by maintaining an allowance for uncollectible accounts. Effective January 1, 2020, the current expected credit loss (CECL) model was 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 a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category.  Factors in determining credit loss include historical collection, write-off experience, and management's assessment of collectibility from customers, including current conditions, reasonable forecasts, and expectations of future collectibility and collection efforts. Management continuously assesses the collectibility of receivables and adjusts estimates based on actual experience and future expectations based on economic indicators, 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.

As of September 30, 2020, management evaluated the adequacy of the allowance for uncollectible accounts in light of the COVID-19 pandemic and the related economic downturn. This evaluation included an analysis of collection and customer payment trends in 2020, economic conditions, flexible payment plans and financial hardship arrearage management programs being offered to customers, and the impacts of federal governmental pandemic relief programs for our customers and the expansion of unemployment benefit initiatives, which help to mitigate the potential for increasing customer account delinquencies. Additionally, management considered past economic declines and corresponding uncollectible reserves as part of the current assessment. This evaluation has shown that our operating companies have experienced an increase in aged receivables and some lower cash collections from customers because of the moratorium on disconnections and the economic slowdown resulting from the COVID-19 pandemic. Based upon the evaluation performed, for the three and nine months ended September 30, 2020, management increased the allowance for uncollectible costs incurred as a result of COVID-19 by $11.3 million and $16.5 million for Eversource, respectively ($2.8 million for CL&P for both periods, $5.1 million for NSTAR Electric for both periods, and $1.5 million for PSNH for both periods). These COVID-19 related uncollectible amounts were deferred either as incremental regulatory costs or deferred through existing regulatory tracking mechanisms that recover uncollectible energy supply costs as management believes it is probable that these costs will ultimately be recovered from customers in rates.

Management concluded that the reserve balance as of September 30, 2020 adequately reflected the collection risk and net realizable value for Eversource’s receivables. Management will continue to evaluate the adequacy of the uncollectible allowance in future reporting periods based on an ongoing assessment of accounts receivable collections, delinquency statistics, and analysis of aging-based quantitative assessments.

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 and NSTAR Gas 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. As a result of the adoption of ASU 2016-13, management aligned the allowance for uncollectible hardship accounts across all regulatory jurisdictions, using a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. Implementation impacts of the accounting standard on the allowance for uncollectible hardship accounts are reflected in the rollforward of the uncollectible allowance in the table below. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance.

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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 Receivables				Total Allowance				Hardship Accounts				Retail (Non-Hardship), Wholesale and Other Receivables				Total Allowance				Hardship Accounts				Retail (Non-Hardship), Wholesale, and Other Receivables				Total Allowance				Total Allowance
Three Months Ended
Beginning Balance	$	175.5			$	94.5			$	270.0			$	116.3			$	20.4			$	136.7			$	34.6			$	34.1			$	68.7			$	11.8
Uncollectible Expense (1)	—				10.5				10.5				—				3.8				3.8				—				4.5				4.5				0.8
Uncollectible Costs Deferred (2)	10.1				20.4				30.5				11.2				4.9				16.1				(1.3		)		10.4				9.1				3.2
Write-Offs	(7.3		)		(11.8		)		(19.1		)		(2.6		)		(4.6		)		(7.2		)		(0.2		)		(6.3		)		(6.5		)		(2.0		)
Recoveries Collected	0.4				2.7				3.1				0.3				1.1				1.4				—				1.0				1.0				0.2
Ending Balance	$	178.7			$	116.3			$	295.0			$	125.2			$	25.6			$	150.8			$	33.1			$	43.7			$	76.8			$	14.0
Nine Months Ended
Beginning Balance	$	143.3			$	81.5			$	224.8			$	80.1			$	17.2			$	97.3			$	43.9			$	31.5			$	75.4			$	10.5
ASU 2016-13 Implementation Impact on January 1, 2020	21.6				2.2				23.8				21.3				0.9				22.2				(1.6		)		0.3				(1.3		)		0.3
Uncollectible Expense (1)	—				31.1				31.1				—				10.0				10.0				—				11.3				11.3				2.1
Uncollectible Costs Deferred (2)	24.9				41.5				66.4				32.7				8.3				41.0				(8.4		)		17.3				8.9				5.6
Write-Offs	(12.3		)		(49.3		)		(61.6		)		(10.0		)		(14.0		)		(24.0		)		(0.8		)		(20.5		)		(21.3		)		(5.0		)
Recoveries Collected	1.2				9.3				10.5				1.1				3.2				4.3				—				3.8				3.8				0.5
Ending Balance	$	178.7			$	116.3			$	295.0			$	125.2			$	25.6			$	150.8			$	33.1			$	43.7			$	76.8			$	14.0

⁽¹⁾ Uncollectible expense associated with customer and other accounts receivable is included in Operations and Maintenance expense on the statements of income. For the three and nine months ended September 30, 2019, uncollectible expense included in Operations and Maintenance Expense was $14.9 million and $46.4 million for Eversource, $4.5 million and $12.1 million for CL&P, $7.0 million and $18.6 million for NSTAR Electric and $1.8 million and $5.0 million for PSNH, respectively.

⁽²⁾ The current period provision for expected credit losses is deferred as a regulatory cost on the balance sheets, as this amount is ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to COVID-19.

D.    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 the 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 and AROs, and the estimated 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.

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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," and Note 10, "Fair Value of Financial Instruments," to the financial statements.

E.    Other Income, Net

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

	For the Three Months Ended
	September 30, 2020																September 30, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Pension, SERP and PBOP Non-Service    Income Components	$	11.0			$	0.9			$	7.2			$	1.8			$	10.1			$	1.7			$	5.6			$	1.4
AFUDC Equity	10.3				3.5				5.5				0.9				10.5				3.6				5.6				1.0
Equity in Earnings of Unconsolidated Affiliates (1)	3.9				—				0.1				—				6.1				—				0.2				—
Investment Income/(Loss)	1.0				1.3				(0.2		)		0.2				(2.8		)		(0.8		)		(0.9		)		(0.3		)
Interest Income	1.5				0.2				0.1				1.2				2.9				0.3				0.1				2.5
Gain on Sale of Property	1.5				—				—				—				—				—				—				—
Other	—				—				0.1				—				0.2				—				0.1				—
Total Other Income, Net	$	29.2			$	5.9			$	12.8			$	4.1			$	27.0			$	4.8			$	10.7			$	4.6
	For the Nine Months Ended
	September 30, 2020																September 30, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Pension, SERP and PBOP Non-Service    Income Components	$	34.3			$	3.0			$	22.2			$	5.2			$	23.2			$	0.1			$	18.0			$	3.5
AFUDC Equity	31.8				11.4				15.8				3.5				34.5				9.4				14.7				2.1
Equity in Earnings of Unconsolidated Affiliates (1)	13.8				—				0.4				—				37.0				0.2				0.6				—
Investment (Loss)/Income	(1.5		)		—				(1.5		)		0.1				(2.3		)		0.9				(1.5		)		—
Interest Income	3.3				1.8				0.7				2.0				10.8				1.1				0.5				9.0
Gain on Sale of Property	1.8				—				0.3				—				0.2				—				—				—
Other	0.1				0.1				0.3				0.1				0.4				(0.1		)		0.2				—
Total Other Income, Net	$	83.6			$	16.3			$	38.2			$	10.9			$	103.8			$	11.6			$	32.5			$	14.6

(1)	Equity in Earnings of Unconsolidated Affiliates includes $2.4 million of primarily realized gains associated with an investment in a renewable energy fund for the nine months ended September 30, 2020. For the nine months ended September 30, 2019, unrealized gains on this investment totaled $20.4 million.

F.    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 Three Months Ended								For the Nine Months Ended
(Millions of Dollars)	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Eversource	$	48.4			$	42.6			$	129.1			$	124.0
CL&P	45.6				39.8				114.2				107.8

Separate from above was an amount recorded as Taxes Other Than Income Taxes at CL&P related to the remittance to the State of Connecticut of energy efficiency funds collected from customers of $21.4 million for the nine months ended September 30, 2019. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. This amount was recorded separately, with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the Eversource and CL&P statements of income. 

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. 

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G.    Supplemental Cash Flow Information

Non-cash investing activities include plant additions included in Accounts Payable as follows:

(Millions of Dollars)	As of September 30, 2020				As of September 30, 2019
Eversource	$	357.4			$	317.8
CL&P	97.8				107.6
NSTAR Electric	92.6				79.0
PSNH	50.0				35.8

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

	As of September 30, 2020																As of December 31, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Cash and Cash Equivalents as reported on the Balance Sheets	$	730.0			$	8.2			$	0.1			$	0.8			$	15.4			$	—			$	0.1			$	0.4
Restricted cash included in:
Special Deposits	51.3				8.6				12.2				19.1				52.5				4.6				6.2				32.5
Marketable Securities	45.6				0.4				0.1				0.6				46.0				0.4				—				0.6
Other Long-Term Assets	2.1				—				—				2.1				3.2				—				—				3.2
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows	$	829.0			$	17.2			$	12.4			$	22.6			$	117.1			$	5.0			$	6.3			$	36.7

Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, 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 trusts to fund certain non-qualified executive benefits and restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations.

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, plus 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 regulatory assets.  If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to any of the regulated companies' operations, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the 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 September 30, 2020																As of December 31, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Benefit Costs	$	2,256.1			$	483.3			$	601.4			$	205.7			$	2,382.9			$	539.0			$	629.8			$	218.2
Income Taxes, Net	731.2				459.8				110.0				13.7				725.8				458.8				108.0				12.8
Securitized Stranded Costs	532.9				—				—				532.9				565.3				—				—				565.3
Storm Restoration Costs, Net	739.6				510.7				171.4				57.5				540.6				274.6				200.6				65.4
Regulatory Tracker Mechanisms	531.8				174.4				203.0				82.3				411.5				78.3				207.1				65.8
Derivative Liabilities	311.8				311.8				—				—				334.5				329.2				—				—
Goodwill-related	318.9				—				273.8				—				331.5				—				284.6				—
Asset Retirement Obligations	105.8				32.3				56.2				3.8				97.2				30.8				50.3				3.6
Other Regulatory Assets	118.0				34.2				56.9				16.5				125.4				25.2				55.2				14.7
Total Regulatory Assets	5,646.1				2,006.5				1,472.7				912.4				5,514.7				1,735.9				1,535.6				945.8
Less:  Current Portion	762.9				273.8				278.6				103.6				651.1				178.6				285.6				84.1
Total Long-Term Regulatory Assets	$	4,883.2			$	1,732.7			$	1,194.1			$	808.8			$	4,863.6			$	1,557.3			$	1,250.0			$	861.7

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Storm Event: On August 4, 2020, Tropical Storm Isaias caused catastrophic damage to our electric distribution system, which resulted in significant amounts and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. PURA has opened an investigation into CL&P's response to Tropical Storm Isaias.  PURA will also investigate the prudence of costs incurred by CL&P to restore service as part of its response.  CL&P is fully participating in PURA’s investigations and believes that these storm restoration costs were prudently incurred and meet the criteria for cost recovery.  As a result, management does not expect the storm costs to have a material impact on the results of operations of Eversource or CL&P.

Based on current estimates, the storm resulted in deferred storm restoration costs of approximately $257 million at CL&P and $276 million at Eversource as of September 30, 2020. The estimated cost of restoration will change as additional cost information becomes available and final storm costs are deferred or capitalized. The majority of incremental storm costs relate to third-party vendors that are external field crews needed to restore power and address municipal priorities. CL&P’s current estimate of total storm costs includes its projection of the cost of such vendors, but that estimate will change as CL&P receives and examines all storm related invoices. On October 12, 2020, CL&P filed a motion requesting an extension of time to submit a final and complete report on storm costs to PURA by July 1, 2021. On October 23, 2020, PURA denied this request, and on November 2, 2020, CL&P filed a request for reconsideration of PURA’s ruling.

CL&P Rate Suspension: On July 31, 2020, PURA temporarily suspended its June 26, 2020 approval of certain delivery rate components effective July 1, 2020, and ordered CL&P to restore rates to those in effect as of June 30, 2020 in order to allow PURA time to reexamine the rates to ensure that CL&P is not over-collecting revenues in the short-term. Rates were adjusted effective August 1, 2020. PURA indicated that this was due to the convergence of a number of recent events, including the COVID-19 crisis and its corresponding effect on customer energy usage, as well as the warmer than normal weather in July. The impact of the temporary suspension of rates is deferred on our balance sheet and results in an increase to our regulatory assets, with no impact on the statement of income, and an expected delay in the collection of our costs. This deferral is reflected within Regulatory Tracker Mechanisms in the table above.

Regulatory Costs in Long-Term Assets:  Eversource's regulated companies had $183.9 million (including $84.2 million for CL&P, $55.0 million for NSTAR Electric and $15.3 million for PSNH) and $146.0 million (including $51.8 million for CL&P, $55.7 million for NSTAR Electric and $18.0 million for PSNH) of additional regulatory costs as of September 30, 2020 and December 31, 2019, respectively, that were included in long-term assets on the balance sheets.  These amounts represent incurred costs for which recovery has not yet been specifically approved by the applicable regulatory agency.  However, 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 September 30, 2020, net incremental COVID-19 related costs deferred by Eversource totaled $15.1 million, of which $11.4 million was related to uncollectible expense.

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

	As of September 30, 2020																As of December 31, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
EDIT due to Tax Cuts and Jobs Act	$	2,805.3			$	1,013.9			$	1,050.1			$	388.7			$	2,844.6			$	1,022.8			$	1,071.2			$	392.8
Cost of Removal	610.4				93.0				354.8				12.9				559.8				64.6				330.6				16.3
Benefit Costs	79.5				—				68.7				—				84.5				—				72.2				—
Regulatory Tracker Mechanisms	445.7				171.1				181.9				56.2				325.1				94.8				165.6				57.0
AFUDC - Transmission	77.1				45.0				32.1				—				73.2				46.0				27.2				—
Other Regulatory Liabilities	158.2				38.2				57.9				9.9				132.0				19.6				59.0				13.1
Total Regulatory Liabilities	4,176.2				1,361.2				1,745.5				467.7				4,019.2				1,247.8				1,725.8				479.2
Less:  Current Portion	464.7				164.9				210.7				61.5				361.2				82.8				209.2				65.8
Total Long-Term Regulatory Liabilities	$	3,711.5			$	1,196.3			$	1,534.8			$	406.2			$	3,658.0			$	1,165.0			$	1,516.6			$	413.4

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

Eversource	As of September 30, 2020				As of December 31, 2019
(Millions of Dollars)
Distribution - Electric	$	16,435.4			$	15,880.0
Distribution - Natural Gas	4,073.0				3,931.1
Transmission - Electric	11,601.7				10,958.4
Distribution - Water	1,683.8				1,726.5
Solar	201.2				200.2
Utility	33,995.1				32,696.2
Other (1)	1,193.0				1,025.6
Property, Plant and Equipment, Gross	35,188.1				33,721.8
Less:  Accumulated Depreciation
Utility	(7,731.0		)		(7,483.5		)
Other	(455.2		)		(387.4		)
Total Accumulated Depreciation	(8,186.2		)		(7,870.9		)
Property, Plant and Equipment, Net	27,001.9				25,850.9
Construction Work in Progress	2,091.1				1,734.6
Total Property, Plant and Equipment, Net	$	29,093.0			$	27,585.5

	As of September 30, 2020												As of December 31, 2019
(Millions of Dollars)	CL&P				NSTAR Electric				PSNH				CL&P				NSTAR Electric				PSNH
Distribution - Electric	$	6,728.7			$	7,414.0			$	2,332.9			$	6,485.5			$	7,163.7			$	2,271.1
Transmission - Electric	5,299.0				4,608.9				1,689.0				5,043.0				4,411.9				1,498.7
Solar	—				201.2				—				—				200.2				—
Property, Plant and Equipment, Gross	12,027.7				12,224.1				4,021.9				11,528.5				11,775.8				3,769.8
Less:  Accumulated Depreciation	(2,453.1		)		(3,022.7		)		(832.8		)		(2,385.7		)		(2,895.3		)		(799.9		)
Property, Plant and Equipment, Net	9,574.6				9,201.4				3,189.1				9,142.8				8,880.5				2,969.9
Construction Work in Progress	490.7				742.0				130.4				483.0				592.3				159.6
Total Property, Plant and Equipment, Net	$	10,065.3			$	9,943.4			$	3,319.5			$	9,625.8			$	9,472.8			$	3,129.5

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

Sale of Water System: On July 31, 2020, Eversource sold its water system and treatment plant that supplies water to the towns of Hingham, Hull and North Cohasset to the town of Hingham, Massachusetts.  Net property, plant and equipment of $63.9 million and goodwill of $23.6 million were included in determining the gain on sale.  Proceeds from the sale were $110.5 million, with a pre-tax gain of $16.0 million (after-tax gain of $3.5 million) recognized within Operations and Maintenance Expense on the statement of income in the third quarter of 2020.  The assets and liabilities associated with the sale of the business were previously reflected in the Water Distribution segment and reporting unit.

The electric and natural gas companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers.  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 applicable, as electricity or natural gas is delivered.

Derivative contracts that are not designated as normal are recorded at fair value as current or long-term Derivative Assets or Derivative Liabilities on the balance sheets.  For the electric and natural gas companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as contract settlement amounts are recovered from, or refunded to, customers in their respective energy supply rates.  

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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 September 30, 2020												As of December 31, 2019
(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 3		$	13.5			$	(0.4	)		$	13.1			$	12.2			$	(0.4	)		$	11.8
Other	Level 2		3.4				(0.7		)		2.7				—				—				—
Long-Term Derivative Assets:
CL&P	Level 3		59.1				(1.9		)		57.2				67.5				(2.1		)		65.4
Current Derivative Liabilities:
CL&P	Level 3		(69.2		)		—				(69.2		)		(67.8		)		—				(67.8		)
Other	Level 2		—				—				—				(5.2		)		—				(5.2		)
Long-Term Derivative Liabilities:
CL&P	Level 3		(312.9		)		—				(312.9		)		(338.6		)		—				(338.6		)
Other	Level 2		—				—				—				(0.1		)		—				(0.1		)

(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.

For further information on the fair value of derivative contracts, see Note 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," to the financial statements.

Derivative Contracts at Fair Value with Offsetting Regulatory Amounts

Commodity Supply and Price Risk Management:  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 both September 30, 2020 and December 31, 2019 were 676 MW. 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. In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.   

As of September 30, 2020 and December 31, 2019, Eversource had New York Mercantile Exchange (NYMEX) financial contracts for natural gas futures in order to reduce variability associated with the price of 11.4 million and 9.6 million MMBtu of natural gas, respectively.

For the three months ended September 30, 2020 and 2019, there were losses of $2.6 million and $9.2 million, respectively, deferred as regulatory costs, which reflect the change in fair value associated with Eversource's derivative contracts. For the nine months ended September 30, 2020 and 2019, there were losses of $20.6 million and $19.5 million, respectively.

Fair Value Measurements of Derivative Instruments

Derivative contracts classified as Level 2 in the fair value hierarchy relate to the financial contracts for natural gas futures.  Prices are obtained from broker quotes and are based on actual market activity.  The contracts are valued using NYMEX natural gas prices.  Valuations of these contracts also incorporate discount rates using the yield curve approach.

 

The fair value of derivative contracts classified as Level 3 utilizes significant unobservable inputs.  The fair value is modeled using income techniques, such as discounted cash flow valuations adjusted for assumptions related to exit price.  Significant observable inputs for valuations of these contracts include energy and energy-related product prices in future years for which quoted prices in an active market exist.  Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy and energy-related products, and accounting requirements.  The future capacity prices for periods that are not quoted in an active market or established at auction are based on available market data and are escalated based on estimates of inflation in order to address the full term of the contract.  

Valuations of derivative contracts using a discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled payments and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty's credit rating for assets and the Company's credit rating for liabilities.  Valuations incorporate estimates of premiums or discounts that would be required by a market participant to arrive at an exit price, using historical market transactions adjusted for the terms of the contract.  

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The following is a summary of Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts:

	As of September 30, 2020																As of December 31, 2019
CL&P	Range								Weighted Average (1)						Period Covered		Range										Period Covered
Capacity Prices	$	4.30			—		$5.12		$	4.57			per kW-Month		2024 - 2026		$	3.01			—		$7.34		per kW-Month		2023 - 2026
Forward Reserve Prices	0.54				—		0.90		0.72				per kW-Month		2021 - 2024		0.80				—		1.90		per kW-Month		2020 - 2024

(1)	Unobservable inputs were weighted by the relative future capacity and forward reserve prices and contractual MWs over the periods covered.

Exit price premiums of 1 percent through 12 percent, or a weighted average of 10.9 percent, are also applied to these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts. The risk premium was weighted by the relative fair value of the net derivative instruments.

Significant increases or decreases in future capacity or forward reserve prices in isolation would decrease or increase, respectively, the fair value of the derivative liability.  Any increases in risk premiums would increase the fair value of the derivative liability.  Changes in these fair values are recorded as a regulatory asset or liability and do not impact net income.  

Valuations using significant unobservable inputs:  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.

CL&P	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
(Millions of Dollars)	2020				2019				2020				2019
Derivatives, Net:
Fair Value as of Beginning of Period	$	(322.0	)		$	(345.4	)		$	(329.2	)		$	(356.5	)
Net Realized/Unrealized Losses Included   in Regulatory Assets	(4.7		)		(8.5		)		(22.3		)		(16.4		)
Settlements	14.9				11.6				39.7				30.6
Fair Value as of End of Period	$	(311.8	)		$	(342.3	)		$	(311.8	)		$	(342.3	)

Eversource holds marketable securities that are primarily used to fund certain non-qualified executive benefits.  The trusts that hold marketable securities are not subject to regulatory oversight by state or federal agencies.  CYAPC and YAEC maintain legally restricted trusts, each of which holds marketable securities, to fund the spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Equity Securities: Unrealized gains and losses on equity securities held in Eversource's non-qualified executive benefit trust are recorded in Other Income, Net on the statements of income. The fair value of these equity securities as of September 30, 2020 and December 31, 2019 was $36.8 million and $45.7 million, respectively.  For the three months ended September 30, 2020 and 2019, there were unrealized gains of $1.6 million and $2.4 million, respectively, recorded in Other Income, Net related to these equity securities. For the nine months ended September 30, 2020 and 2019, there were unrealized losses of $1.0 million and unrealized gains of $5.7 million, respectively.

Eversource's equity securities also include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts, which had fair values of $189.5 million and $182.8 million as of September 30, 2020 and December 31, 2019, 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 Other 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 the available-for-sale debt securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.

	As of September 30, 2020																As of December 31, 2019
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	$	216.1			$	11.1			$	(0.2	)		$	227.0			$	228.4			$	5.8			$	(0.1	)		$	234.1

Eversource's debt securities include CYAPC's and YAEC's marketable securities held in spent nuclear fuel trusts in the amounts of $194.0 million and $198.1 million as of September 30, 2020 and December 31, 2019, respectively.

Unrealized gains and losses on available-for-sale debt securities held in Eversource's non-qualified benefit trust are recorded in Accumulated Other Comprehensive Income, excluding amounts related to credit losses or losses on securities intended to be sold, which are recorded in Other Income, Net. There have been no significant unrealized losses and no credit losses for the three and nine months ended September 30, 2020 and 2019, and no allowance for credit losses as of September 30, 2020. Factors considered in determining whether a credit loss exists include adverse conditions specifically affecting the issuer, the payment history, ratings and rating changes of the security, and the severity of the impairment.  For asset-

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backed debt securities, underlying collateral and expected future cash flows are also evaluated. Debt securities included in Eversource's non-qualified benefit trust portfolio are investment-grade bonds with a lower default risk based on their credit quality.

As of September 30, 2020, the contractual maturities of available-for-sale debt securities were as follows:  

Eversource (Millions of Dollars)	Amortized Cost				Fair Value
Less than one year (1)	$	51.1			$	51.1
One to five years	45.2				47.4
Six to ten years	43.9				47.0
Greater than ten years	75.9				81.5
Total Debt Securities	$	216.1			$	227.0

(1)	Amounts in the Less than one year category include securities in the CYAPC and YAEC spent nuclear fuel trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.

Realized Gains and Losses:  Realized gains and losses are recorded in Other Income, Net for Eversource's benefit trust and are offset in Other Long-Term Liabilities for CYAPC and YAEC.  Eversource utilizes the specific identification basis method for the Eversource non-qualified benefit trust, and the average cost basis method for the CYAPC and YAEC spent nuclear fuel trusts to compute the realized gains and losses on the sale of marketable securities.

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 September 30, 2020				As of December 31, 2019
Level 1:
Mutual Funds and Equities	$	226.3			$	228.5
Money Market Funds	45.6				46.0
Total Level 1	$	271.9			$	274.5
Level 2:
U.S. Government Issued Debt Securities (Agency and Treasury)	$	64.7			$	96.8
Corporate Debt Securities	64.9				44.0
Asset-Backed Debt Securities	12.0				12.9
Municipal Bonds	30.4				26.7
Other Fixed Income Securities	9.4				7.7
Total Level 2	$	181.4			$	188.1
Total Marketable Securities	$	453.3			$	462.6

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.

Short-Term Debt - Commercial Paper Programs and Credit Agreements: As of September 30, 2020, Eversource parent had a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt.  On November 2, 2020, Eversource parent’s commercial paper program was increased to $2.00 billion. Eversource parent, CL&P, PSNH, NSTAR Gas, Yankee Gas and Aquarion Water Company of Connecticut are parties to a five-year $1.45 billion revolving credit facility, which terminates on December 6, 2024. On October 21, 2020, Eversource parent and Eversource Gas Company of Massachusetts entered into a short-term $550 million revolving credit facility, which terminates on October 20, 2021. These revolving credit facilities serve to backstop Eversource parent's $2.00 billion commercial paper program.  

NSTAR Electric has a $650 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. NSTAR Electric is also a party to a five-year $650 million revolving credit facility, which terminates on December 6, 2024. The revolving credit facility serves to backstop NSTAR Electric's $650 million commercial paper program.  

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

	Borrowings Outstanding as of								Available Borrowing Capacity as of								Weighted-Average Interest Rate as of
	September 30, 2020				December 31, 2019				September 30, 2020				December 31, 2019				September 30, 2020			December 31, 2019
(Millions of Dollars)
Eversource Parent Commercial Paper Program	$	—			$	1,224.9			$	1,450.0			$	225.1			—	%		1.98	%
NSTAR Electric Commercial Paper Program	60.5				10.5				589.5				639.5				0.10	%		1.63	%

There were no borrowings outstanding on the revolving credit facilities as of September 30, 2020 or December 31, 2019.

On May 15, 2020, CL&P and PSNH entered into uncommitted line of credit agreements, which will expire by May 14, 2021. The CL&P agreements total $450 million and the PSNH agreements total $300 million. There are no borrowings outstanding on either the CL&P or PSNH uncommitted line of credit agreements as of September 30, 2020.

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.

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.

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 September 30, 2020, there were intercompany loans from Eversource parent to CL&P of $235.9 million, to PSNH of $29.1 million, and to a subsidiary of NSTAR Electric of $36.6 million. As of December 31, 2019, there were intercompany loans from Eversource parent to CL&P of $63.8 million, to PSNH of $27.0 million, and to a subsidiary of NSTAR Electric of $30.3 million. 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.

Long-Term Debt Issuance Authorization: On January 27, 2020, the DPU approved NSTAR Gas' request for authorization to issue up to $270 million in long-term debt through December 31, 2021. On July 31, 2020, the NHPUC approved PSNH's request for authorization to issue up to $200 million in long-term debt through December 31, 2020.

Long-Term Debt: The following table summarizes long-term debt issuances and repayments:

(Millions of Dollars)	Issuance/(Repayment)				Issue Date or Repayment Date		Maturity Date		Use of Proceeds for Issuance/ Repayment Information
NSTAR Electric:
3.95% 2020 Debentures	$	400.0			March 2020		April 2030		Refinanced investments in eligible green expenditures, which were previously financed in 2018 and 2019
5.10% Series E Senior Notes	(95.0		)		March 2020		March 2020		Paid at maturity
PSNH:
2.40% Series U First Mortgage Bonds	150.0				August 2020		September 2050		Refinanced short-term borrowings, funded capital expenditures and working capital
Other:
Eversource Parent 3.45% Series P Senior Notes	350.0				January 2020		January 2050		Paid short-term borrowings
Eversource Parent 3.45% Series P Senior Notes (1)	300.0				August 2020		January 2050		(2)
Eversource Parent 0.80% Series Q Senior Notes	300.0				August 2020		August 2025		(2)
Eversource Parent 1.65% Series R Senior Notes	600.0				August 2020		August 2030		(2)
NSTAR Gas 4.46% Series N First Mortgage Bonds	(125.0		)		January 2020		January 2020		Paid at maturity
NSTAR Gas 2.33% Series R First Mortgage Bonds	75.0				May 2020		May 2025		Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
NSTAR Gas 3.15% Series S First Mortgage Bonds	115.0				May 2020		May 2050		Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
Yankee Gas 4.87% Series K First Mortgage Bonds	(50.0		)		April 2020		April 2020		Paid at maturity
Yankee Gas 2.90% Series R First Mortgage Bonds	70.0				September 2020		September 2050		Refinanced existing indebtedness, funded capital expenditures and for general corporate purposes
Aquarion Water Company of Massachusetts, Inc. and Aquarion Water Capital of Massachusetts, Inc. various term loans and general mortgage bonds	(32.2		)		July 2020		Various		Redeemed long-term debt in conjunction with the sale of assets to the Town of Hingham, Massachusetts

(1)	These senior notes are part of the same series issued by Eversource parent in January 2020. The aggregate outstanding principal amount of these senior notes is now $650 million.

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(2)	The proceeds from these Eversource parent issuances funded a portion of the purchase price for the CMA asset acquisition and refinanced short-term borrowings.

Rate Reduction Bonds: On May 8, 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 on January 30, 2018 to recover remaining costs resulting from the divestiture of PSNH’s generation assets.

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)
Balance Sheet:	As of September 30, 2020				As of December 31, 2019
Restricted Cash - Current Portion (included in Current Assets)	$	18.8			$	32.5
Restricted Cash - Long-Term Portion (included in Other Long-Term Assets)	2.1				3.2
Securitized Stranded Cost (included in Regulatory Assets)	532.9				565.3
Other Regulatory Liabilities (included in Regulatory Liabilities)	7.2				5.6
Accrued Interest (included in Other Current Liabilities)	3.2				8.6
Rate Reduction Bonds - Current Portion	43.2				43.2
Rate Reduction Bonds - Long-Term Portion	496.9				540.1

(Millions of Dollars) Income Statement:	For the Three Months Ended								For the Nine Months Ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Amortization of RRB Principal (included in Amortization of Regulatory Assets, Net)	$	10.8			$	10.8			$	32.4			$	32.2
Interest Expense on RRB Principal (included in Interest Expense)	4.9				5.2				14.9				15.9

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

	Pension and SERP																PBOP
	For the Three Months Ended September 30, 2020																For the Three Months Ended September 30, 2020
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Service Cost	$	18.7			$	5.4			$	3.8			$	2.0			$	2.4			$	0.4			$	0.5			$	0.2
Interest Cost	44.4				9.3				9.7				4.8				6.1				1.1				1.7				0.7
Expected Return on Plan Assets	(99.2		)		(19.8		)		(25.7		)		(11.1		)		(18.3		)		(2.5		)		(8.5		)		(1.4		)
Actuarial Loss	50.7				9.7				14.0				3.8				2.2				0.3				0.6				0.2
Prior Service Cost/(Credit)	0.2				—				—				—				(5.3		)		0.3				(4.2		)		0.1
Total Net Periodic Benefit Expense/(Income)	$	14.8			$	4.6			$	1.8			$	(0.5	)		$	(12.9	)		$	(0.4	)		$	(9.9	)		$	(0.2	)
Intercompany Allocations	N/A				$	2.4			$	2.3			$	0.8			N/A				$	(0.3	)		$	(0.4	)		$	(0.1	)

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	Pension and SERP																PBOP
	For the Nine Months Ended September 30, 2020																For the Nine Months Ended September 30, 2020
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Service Cost	$	57.0			$	16.5			$	11.4			$	6.2			$	7.3			$	1.3			$	1.6			$	0.6
Interest Cost	133.0				28.1				29.0				14.5				18.3				3.3				5.0				2.1
Expected Return on Plan Assets	(298.8		)		(59.6		)		(77.2		)		(33.5		)		(55.1		)		(7.4		)		(25.5		)		(4.2		)
Actuarial Loss	150.7				29.4				41.3				11.8				6.3				0.9				1.8				0.6
Prior Service Cost/(Credit)	0.8				—				0.2				—				(15.9		)		0.8				(12.7		)		0.3
Total Net Periodic Benefit Expense/(Income)	$	42.7			$	14.4			$	4.7			$	(1.0	)		$	(39.1	)		$	(1.1	)		$	(29.8	)		$	(0.6	)
Intercompany Allocations	N/A				$	6.7			$	6.5			$	2.2			N/A				$	(0.9	)		$	(1.0	)		$	(0.4	)

	Pension and SERP																PBOP
	For the Three Months Ended September 30, 2019																For the Three Months Ended September 30, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Service Cost	$	16.2			$	4.4			$	3.6			$	1.5			$	2.0			$	0.3			$	0.4			$	0.2
Interest Cost	54.8				11.4				12.3				6.0				8.1				1.6				2.4				0.8
Expected Return on Plan Assets	(91.6		)		(18.1		)		(24.2		)		(10.1		)		(16.7		)		(2.2		)		(7.5		)		(1.3		)
Actuarial Loss	35.6				6.3				11.8				2.3				2.1				0.3				0.8				0.1
Prior Service Cost/(Credit)	0.3				—				—				—				(5.8		)		0.2				(4.2		)		0.1
Total Net Periodic Benefit Expense/(Income)	$	15.3			$	4.0			$	3.5			$	(0.3	)		$	(10.3	)		$	0.2			$	(8.1	)		$	(0.1	)
Intercompany Allocations	N/A				$	2.0			$	1.9			$	0.5			N/A				$	(0.2	)		$	(0.3	)		$	(0.1	)

	Pension and SERP																PBOP
	For the Nine Months Ended September 30, 2019																For the Nine Months Ended September 30, 2019
(Millions of Dollars)	Eversource				CL&P				NSTAR Electric				PSNH				Eversource				CL&P				NSTAR Electric				PSNH
Service Cost	$	51.6			$	13.6			$	11.0			$	5.6			$	5.9			$	1.1			$	1.3			$	0.5
Interest Cost	163.8				34.4				36.6				18.2				24.5				4.7				7.1				2.5
Expected Return on Plan Assets	(275.4		)		(55.1		)		(72.9		)		(30.6		)		(50.1		)		(6.9		)		(22.6		)		(4.0		)
Actuarial Loss	107.9				20.6				33.1				8.2				6.2				1.0				2.5				0.3
Prior Service Cost/(Credit)	0.9				—				0.2				—				(17.6		)		0.8				(12.7		)		0.3
Total Net Periodic Benefit Expense/(Income)	$	48.8			$	13.5			$	8.0			$	1.4			$	(31.1	)		$	0.7			$	(24.4	)		$	(0.4	)
Intercompany Allocations	N/A				$	6.5			$	6.1			$	1.8			N/A				$	(0.6	)		$	(0.9	)		$	(0.3	)

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.

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

	As of September 30, 2020							As of December 31, 2019
	Number of Sites			Reserve (in millions)				Number of Sites			Reserve (in millions)
Eversource	55			$	78.8			57			$	81.0
CL&P	15			11.6				15			11.4
NSTAR Electric	13			4.6				15			8.0
PSNH	9			7.2				9			7.5

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Included in the number of sites and reserve amounts above are former MGP sites that were operated several decades ago and manufactured 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 $69.5 million and $67.9 million as of September 30, 2020 and December 31, 2019, respectively, and related primarily to the natural gas business segment.

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.

B.    Long-Term Contractual Arrangements

The following is an update to the current status of long-term contractual arrangements set forth in Note 13B of the Eversource 2019 Form 10-K.

Renewable Energy: Renewable energy contracts include non-cancelable commitments under contracts of NSTAR Electric for the purchase of energy and RECs from renewable energy facilities.

NSTAR Electric	October - December 2020
(Millions of Dollars)					2021				2022				2023				2024				Thereafter				Total
Renewable Energy	$	24.3			$	98.5			$	100.0			$	75.4			$	72.9			$	594.5			$	965.6

C.    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.  The following table summarizes Eversource parent's exposure to guarantees and indemnifications of its subsidiaries and affiliates to external parties as of September 30, 2020:  

Company		Description		Maximum Exposure (in millions)				Expiration Dates
Various		Surety Bonds (1)		$	30.9			2020 - 2023
Rocky River Realty Company and Eversource Service		Lease Payments for Real Estate		5.6				2024
Bay State Wind LLC		Real Estate Purchase		2.5				2021
Sunrise Wind LLC		OREC Capacity Production (2)		2.2				-

(1)	Surety bond 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.

(2)

On October 25, 2019, Eversource parent issued a guaranty on behalf of its 50 percent-owned affiliate, Sunrise Wind LLC, whereby Eversource parent will guaranty Sunrise Wind LLC’s performance of certain obligations, in an amount not to exceed $15.4 million, under the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement (the Agreement). The Agreement was executed on October 23, 2019, by and between the New York State Energy Research and Development Authority (NYSERDA) and Sunrise Wind LLC. The Company regularly reviews performance risk under this arrangement, and 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. As of September 30, 2020, the fair value of the guarantee was immaterial.

On September 16, 2020, Eversource parent entered into a guaranty on behalf of Eversource Investment LLC, which holds Eversource's investments in wind-related equity method investments, under which Eversource parent would guarantee Eversource Investment LLC's obligations under a letter of credit facility with a financial institution that Eversource Investment LLC may request in an aggregate amount of up to approximately $25 million.

D.     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.

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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 and III of litigation resulting from the DOE's failure to meet its contractual obligations. These Phases covered damages incurred in the years 1998 through 2012, and the awarded damages have been received by the Yankee Companies with certain amounts of the damages refunded to their customers.

DOE Phase IV Damages - On May 22, 2017, each of the Yankee Companies filed a fourth set of lawsuits against the DOE in the Court of Federal Claims. The Yankee Companies sought monetary damages totaling $104.4 million for CYAPC, YAEC and MYAPC, resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal covering the years from 2013 to 2016 (DOE Phase IV). On February 21, 2019, the Yankee Companies received a partial summary judgment and partial final judgment in their favor for the undisputed amount of monetary damages of $103.2 million. The court awarded CYAPC, YAEC and MYAPC damages of $40.7 million, $28.1 million and $34.4 million, respectively. The DOE did not appeal the court's judgment and the decision became final on April 23, 2019. On June 12, 2019, each of the Yankee Companies received the damages proceeds. On June 12, 2019, the court accepted an offer of judgment in the amount of $0.5 million to settle the disputed amount of approximately $1 million in Phase IV contested damages. The Yankee Companies received the $0.5 million payment in July 2019.

In September 2019, the Yankee Companies made a required informational filing with FERC as to the use of proceeds, for which approval was received in the fourth quarter of 2019. In December 2019, YAEC and MYAPC returned proceeds of $5.4 million and $21.0 million, respectively, to its member companies, of which the Eversource utilities (CL&P, NSTAR Electric and PSNH) received a total of $2.8 million from YAEC and $5.0 million from MYAPC. The Eversource utilities refund these amounts received to their utility customers. Also, in December 2019, CYAPC paid $29.0 million to the DOE to partially settle its pre-1983 spent nuclear fuel obligation.

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, the FERC 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 September 30, 2020 and December 31, 2019. 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 September 30, 2020 and December 31, 2019.

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, for the NETOs, which FERC concludes are of average financial risk, the preliminary just and reasonable base ROE is 10.41 percent and the preliminary incentive cap on total ROE is 13.08 percent.

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.

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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. Various parties have appealed the MISO transmission owners' opinion. This new methodology differs significantly from the methodology proposed by FERC in its October 16, 2018 order to determine the NETOs' base ROEs in its four pending cases.

Given the significant uncertainty regarding the applicability of the FERC opinions in the MISO transmission owners' two complaint cases to the NETOs' pending four complaint cases, Eversource concluded that there is no reasonable basis for a change to the reserve or recognized ROEs for any of the complaint periods at this time. As well, Eversource cannot reasonably estimate a range of any gain or loss for any of the four complaint proceedings at this time.

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.    Eversource and NSTAR Electric Boston Harbor Civil Action

In 2016, the United States Attorney on behalf of the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts against NSTAR Electric, HEEC, and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the "Defendants").  The action alleged that the Defendants failed to comply with certain permitting requirements related to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor.

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 September 30, 2020:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6			$	166.6			$	116.2			$	122.0			$	43.0			$	44.6			$	—			$	—
Long-Term Debt	15,814.5				17,943.7				3,518.1				4,336.7				3,642.8				4,285.4				1,099.0				1,192.1
Rate Reduction Bonds	540.1				603.0				—				—				—				—				540.1				603.0
As of December 31, 2019:
Preferred Stock Not Subject to Mandatory Redemption	$	155.6			$	162.0			$	116.2			$	117.8			$	43.0			$	44.2			$	—			$	—
Long-Term Debt	14,098.2				15,170.2				3,518.1				4,058.0				3,342.1				3,659.9				951.6				1,005.7
Rate Reduction Bonds	583.3				625.9				—				—				—				—				583.3				625.9

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 1D, "Summary of Significant Accounting Policies - Fair Value Measurements," for the fair value measurement policy and the fair value hierarchy.

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

	For the Nine Months Ended September 30, 2020																For the Nine Months Ended September 30, 2019
Eversource  (Millions of Dollars)	Qualified Cash Flow Hedging Instruments				Unrealized Gains on Marketable Securities				Defined Benefit Plans				Total				Qualified Cash Flow Hedging Instruments				Unrealized Gains/(Losses) on Marketable Securities				Defined Benefit Plans				Total
Balance as of January 1st	$	(3.0	)		$	0.7			$	(62.8	)		$	(65.1	)		$	(4.4	)		$	(0.5	)		$	(55.1	)		$	(60.0	)
OCI Before Reclassifications	—				0.3				(1.6		)		(1.3		)		—				1.3				2.6				3.9
Amounts Reclassified from AOCI	1.2				—				4.8				6.0				0.9				—				3.2				4.1
Net OCI	1.2				0.3				3.2				4.7				0.9				1.3				5.8				8.0
Balance as of September 30th	$	(1.8	)		$	1.0			$	(59.6	)		$	(60.4	)		$	(3.5	)		$	0.8			$	(49.3	)		$	(52.0	)

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 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
					Authorized as of September 30, 2020 and December 31, 2019			Issued as of
	Par Value							September 30, 2020			December 31, 2019
Eversource	$	5			380,000,000			357,818,402			345,858,402
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 and 2019 Forward Sale Agreement: On June 15, 2020, Eversource completed an equity offering of 6,000,000 common shares at a price per share of $86.26. Eversource used the net proceeds of this offering to fund a portion of the purchase of the assets of CMA that closed on October 9, 2020. The issuance of these common shares resulted in proceeds of $509.2 million, net of issuance costs.

In June 2019, Eversource completed an equity offering consisting of 5,980,000 common shares issued directly by the Company and 11,960,000 common shares issuable pursuant to a forward sale agreement with an investment bank. Under the forward sale agreement, 11,960,000 common shares were borrowed from third parties and sold by the underwriters. The forward sale agreement allowed Eversource, at its election and prior to May 29, 2020, to physically settle the forward sale agreement by issuing common shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreement (initially, $71.48 per share) or, alternatively, to settle the forward sale agreement in whole or in part through the delivery or receipt of shares or cash. The forward sale price was subject to adjustment daily based on a floating interest rate factor and would decrease in respect of certain fixed amounts specified in the agreement, such as dividends.

Eversource issued 6,000,000 common shares under the forward sale agreement in December 2019. On March 23, 2020, Eversource physically settled a portion of the forward sale agreement by delivering 1,500,000 common shares in exchange for net proceeds of $105.7 million. Subsequently, on March 26, 2020, Eversource physically settled the remaining portion of the forward sale agreement by delivering 4,460,000 common shares in exchange for net proceeds of $314.1 million. The forward sale price used to determine the cash proceeds received by Eversource was calculated based on the initial forward sale price, as adjusted in accordance with the forward sale agreement.

The March and June 2020 common share issuances of 5,960,000 and 6,000,000, respectively, resulted in total proceeds of $929.0 million, net of issuance costs, and were reflected in shareholders' equity and as financing activities on the statement of cash flows.

Issuances of shares under the forward sale agreement are classified as equity transactions. Accordingly, no amounts relating to the forward sale agreement were recorded in the financial statements until settlements took place. Prior to any settlements, the only impact to the financial statements was the inclusion of incremental shares within the calculation of diluted EPS using the treasury stock method. See Note 14, "Earnings Per Share," to the financial statements for information on the forward sale agreement’s impact on the calculation of diluted EPS.

Eversource used the net proceeds received from the direct issuance of common shares and the net proceeds received from settlement of the forward sale agreement to repay short-term debt under the commercial paper program, to partially fund the purchase of the assets of CMA, to fund capital spending and clean energy initiatives, and for general corporate purposes.

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Treasury Shares: As of September 30, 2020 and December 31, 2019, there were 15,020,929 and 15,977,757 Eversource common shares held as treasury shares, respectively. As of September 30, 2020 and December 31, 2019, Eversource common shares outstanding were 342,797,473 and 329,880,645, respectively.

Dividends on the preferred stock of CL&P and NSTAR Electric totaled $1.9 million for each of the three months ended September 30, 2020 and 2019 and $5.6 million for each of the nine months ended September 30, 2020 and 2019. 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 September 30, 2020 and December 31, 2019. 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.

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period.  Diluted EPS 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 and the equity forward sale agreement, as if they were converted into outstanding common shares.  The dilutive effect of unvested RSU and performance share awards, as well as the equity forward sale agreement, 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.

 

As described in Note 12, "Common Shares," earnings per share dilution, if any, related to the forward sale agreement is determined under the treasury stock method until settlement of the forward sale agreement. Under this method, the number of Eversource common shares used in calculating diluted EPS is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreement less the number of shares that would be purchased by Eversource in the market (based on the average market price during the same reporting period) using the proceeds receivable upon settlement (based on the adjusted forward sale price at the end of that reporting period). Share dilution occurs when the average market price of Eversource's common shares is higher than the adjusted forward sale price.

For the nine months ended September 30, 2020, there were 52,747 antidilutive share awards excluded from the EPS computation, as their impact would have been antidilutive. Antidilutive shares pertained to a purchase option extended to underwriters in connection with Eversource's common share issuance on June 15, 2020. See Note 12, "Common Shares," for further information. There were no antidilutive share awards excluded from the computation for the three months ended September 30, 2020 and 2019 or the nine months ended September 30, 2019.

The following table sets forth the components of basic and diluted EPS:

Eversource (Millions of Dollars, except share information)	For the Three Months Ended								For the Nine Months Ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Net Income Attributable to Common Shareholders	$	346.3			$	318.9			$	933.2			$	659.0
Weighted Average Common Shares Outstanding:
Basic	343,076,614				324,037,169				337,375,172				320,442,253
Dilutive Effect of:
Share-Based Compensation Awards and Other	696,988				737,972				686,403				691,636
Equity Forward Sale Agreement	—				1,233,201				362,525				437,037
Total Dilutive Effect	696,988				1,971,173				1,048,928				1,128,673
Diluted	343,773,602				326,008,342				338,424,100				321,570,926
Basic EPS	$	1.01			$	0.98			$	2.77			$	2.06
Diluted EPS	$	1.01			$	0.98			$	2.76			$	2.05

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The following tables present operating revenues disaggregated by revenue source:

	For the Three Months Ended September 30, 2020
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	$	1,183.9			$	45.5			$	—			$	45.8			$	—			$	—			$	1,275.2
Commercial	682.7				41.1				—				17.1				—				(1.4		)		739.5
Industrial	91.0				17.5				—				1.3				—				(3.6		)		106.2
Total Retail Tariff Sales Revenues	1,957.6				104.1				—				64.2				—				(5.0		)		2,120.9
Wholesale Transmission Revenues	—				—				458.2				—				19.0				(365.6		)		111.6
Wholesale Market Sales Revenues	79.6				8.7				—				1.1				—				—				89.4
Other Revenues from Contracts with Customers	18.4				0.8				3.2				1.8				303.3				(299.0		)		28.5
Amortization of/(Reserve for) Revenues   Subject to Refund	2.3				0.5				—				(1.1		)		—				—				1.7
Total Revenues from Contracts with Customers	2,057.9				114.1				461.4				66.0				322.3				(669.6		)		2,352.1
Alternative Revenue Programs	1.7				(4.0		)		(72.3		)		(2.0		)		—				67.0				(9.6		)
Other Revenues (1)	0.7				0.1				0.2				0.1				—				—				1.1
Total Operating Revenues	$	2,060.3			$	110.2			$	389.3			$	64.1			$	322.3			$	(602.6	)		$	2,343.6
	For the Nine Months Ended September 30, 2020
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	$	3,063.7			$	399.6			$	—			$	113.2			$	—			$	—			$	3,576.5
Commercial	1,815.7				243.5				—				47.7				—				(3.7		)		2,103.2
Industrial	248.4				67.0				—				3.6				—				(10.1		)		308.9
Total Retail Tariff Sales Revenues	5,127.8				710.1				—				164.5				—				(13.8		)		5,988.6
Wholesale Transmission Revenues	—				—				1,177.9				—				55.6				(981.4		)		252.1
Wholesale Market Sales Revenues	231.1				31.9				—				2.9				—				—				265.9
Other Revenues from Contracts with Customers	56.4				2.5				9.9				5.6				845.1				(838.0		)		81.5
Amortization of/(Reserve for) Revenues   Subject to Refund	6.9				1.6				—				(2.8		)		—				—				5.7
Total Revenues from Contracts with Customers	5,422.2				746.1				1,187.8				170.2				900.7				(1,833.2		)		6,593.8
Alternative Revenue Programs	54.8				22.9				(52.7		)		(4.1		)		—				48.9				69.8
Other Revenues (1)	4.9				1.0				0.5				0.5				—				—				6.9
Total Operating Revenues	$	5,481.9			$	770.0			$	1,135.6			$	166.6			$	900.7			$	(1,784.3	)		$	6,670.5

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	For the Three Months Ended September 30, 2019
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	$	1,041.4			$	43.0			$	—			$	40.0			$	—			$	—			$	1,124.4
Commercial	736.6				41.6				—				17.8				—				(1.4		)		794.6
Industrial	90.6				18.1				—				1.3				—				(3.2		)		106.8
Total Retail Tariff Sales Revenues	1,868.6				102.7				—				59.1				—				(4.6		)		2,025.8
Wholesale Transmission Revenues	—				—				365.5				—				15.4				(300.7		)		80.2
Wholesale Market Sales Revenues	33.1				5.5				—				1.3				—				—				39.9
Other Revenues from Contracts with Customers	12.3				0.5				3.1				1.7				242.7				(243.0		)		17.3
Amortization of/(Reserve for) Revenues Subject to Refund	4.5				1.5				—				(0.8		)		—				—				5.2
Total Revenues from Contracts with Customers	1,918.5				110.2				368.6				61.3				258.1				(548.3		)		2,168.4
Alternative Revenue Programs	6.7				(7.6		)		(20.9		)		2.6				—				19.0				(0.2		)
Other Revenues (1)	6.4				0.8				0.1				0.3				—				—				7.6
Total Operating Revenues	$	1,931.6			$	103.4			$	347.8			$	64.2			$	258.1			$	(529.3	)		$	2,175.8
	For the Nine Months Ended September 30, 2019
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	$	2,879.8			$	402.0			$	—			$	100.5			$	—			$	—			$	3,382.3
Commercial	2,002.0				254.9				—				48.1				—				(3.4		)		2,301.6
Industrial	254.0				72.5				—				3.5				—				(8.7		)		321.3
Total Retail Tariff Sales Revenues	5,135.8				729.4				—				152.1				—				(12.1		)		6,005.2
Wholesale Transmission Revenues	—				—				971.6				—				43.7				(811.4		)		203.9
Wholesale Market Sales Revenues	123.9				41.6				—				3.2				—				—				168.7
Other Revenues from Contracts with Customers	40.0				1.9				9.9				5.2				723.4				(725.2		)		55.2
(Reserve for)/Amortization of Revenues Subject to Refund	(1.7		)		4.7				—				(1.9		)		—				—				1.1
Total Revenues from Contracts with Customers	5,298.0				777.6				981.5				158.6				767.1				(1,548.7		)		6,434.1
Alternative Revenue Programs	15.0				—				56.1				4.2				—				(50.8		)		24.5
Other Revenues (1)	14.2				2.3				0.3				0.7				—				—				17.5
Total Operating Revenues	$	5,327.2			$	779.9			$	1,037.9			$	163.5			$	767.1			$	(1,599.5	)		$	6,476.1

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	For the Three Months Ended September 30, 2020												For the Three Months Ended September 30, 2019
(Millions of Dollars)	CL&P				NSTAR Electric				PSNH				CL&P				NSTAR Electric				PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	608.7			$	415.4			$	159.8			$	513.6			$	374.4			$	153.4
Commercial	244.7				358.3				80.1				247.0				406.1				84.1
Industrial	38.0				30.6				22.4				37.4				32.4				20.8
Total Retail Tariff Sales Revenues	891.4				804.3				262.3				798.0				812.9				258.3
Wholesale Transmission Revenues	233.3				153.1				71.8				175.2				132.9				57.4
Wholesale Market Sales Revenues	60.0				12.1				7.5				13.8				14.4				4.9
Other Revenues from Contracts with Customers	8.1				10.5				3.7				9.0				3.1				4.0
Amortization of Revenues Subject to Refund	—				—				2.3				—				—				4.5
Total Revenues from Contracts with Customers	1,192.8				980.0				347.6				996.0				963.3				329.1
Alternative Revenue Programs	(65.0		)		8.2				(13.8		)		(15.2		)		9.8				(8.8		)
Other Revenues (1)	0.2				0.7				—				4.1				1.8				0.6
Eliminations	(133.7		)		(113.5		)		(50.1		)		(131.0		)		(96.2		)		(40.5		)
Total Operating Revenues	$	994.3			$	875.4			$	283.7			$	853.9			$	878.7			$	280.4
	For the Nine Months Ended September 30, 2020												For the Nine Months Ended September 30, 2019
(Millions of Dollars)	CL&P				NSTAR Electric				PSNH				CL&P				NSTAR Electric				PSNH
Revenues from Contracts with Customers
Retail Tariff Sales
Residential	$	1,567.9			$	1,057.9			$	437.9			$	1,426.9			$	1,027.8			$	425.1
Commercial	670.4				921.3				225.3				708.4				1,058.3				236.8
Industrial	105.3				82.1				61.0				105.8				90.1				58.1
Total Retail Tariff Sales Revenues	2,343.6				2,061.3				724.2				2,241.1				2,176.2				720.0
Wholesale Transmission Revenues	576.5				430.3				171.1				445.9				383.1				142.6
Wholesale Market Sales Revenues	163.9				39.8				27.4				39.6				55.9				28.4
Other Revenues from Contracts with Customers	25.1				32.4				10.9				27.0				13.2				11.8
Amortization of/(Reserve for) Revenues Subject to Refund	—				—				6.9				—				—				(1.7		)
Total Revenues from Contracts with Customers	3,109.1				2,563.8				940.5				2,753.6				2,628.4				901.1
Alternative Revenue Programs	(27.8		)		31.1				(1.2		)		45.6				19.1				6.4
Other Revenues (1)	2.0				2.8				0.6				7.9				5.2				1.4
Eliminations	(371.9		)		(327.5		)		(124.6		)		(363.1		)		(294.5		)		(111.1		)
Total Operating Revenues	$	2,711.4			$	2,270.2			$	815.3			$	2,444.0			$	2,358.2			$	797.8

(1)

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 $1.1 million (including $0.2 million at CL&P and $0.7 million at NSTAR Electric) and $1.2 million (including $0.3 million at CL&P and $0.7 million at NSTAR Electric) for the three months ended September 30, 2020 and 2019, respectively, and $3.2 million (including $0.6 million at CL&P and $2.1 million at NSTAR Electric) and $3.4 million (including $0.7 million at CL&P and $2.0 million at NSTAR Electric) for the nine months ended September 30, 2020 and 2019, respectively.

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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.  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.  The Electric Distribution reportable segment includes the results of NSTAR Electric's solar power facilities. 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 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) Eversource Water Ventures, Inc., parent company of Aquarion, 5) the results of other unregulated subsidiaries, which are not part of its core business, and 6) Eversource parent's equity ownership interests that are not consolidated, which primarily include the offshore wind business, a natural gas pipeline owned by Enbridge, Inc., and a renewable energy investment fund.

In the ordinary course of business, Yankee Gas and NSTAR Gas purchase natural gas transmission services from the Enbridge, Inc. natural gas pipeline project described above. These affiliate transaction costs total $62.5 million annually and are classified as Purchased Power, Fuel 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 but not paid, cost of removal, AFUDC related to equity funds, and the capitalized portions of pension and PBOP expense.   

Eversource's segment information is as follows:

	For the Three Months Ended September 30, 2020
Eversource (Millions of Dollars)	Electric Distribution				Natural Gas Distribution				Electric Transmission				Water Distribution				Other				Eliminations				Total
Operating Revenues	$	2,060.3			$	110.2			$	389.3			$	64.1			$	322.3			$	(602.6	)		$	2,343.6
Depreciation and Amortization	(182.0		)		(14.8		)		(70.6		)		(10.8		)		(24.1		)		0.3				(302.0		)
Other Operating Expenses	(1,577.0		)		(104.2		)		(120.6		)		(10.2		)		(271.5		)		603.1				(1,480.4		)
Operating Income/(Loss)	$	301.3			$	(8.8	)		$	198.1			$	43.1			$	26.7			$	0.8			$	561.2
Interest Expense	$	(53.3	)		$	(10.1	)		$	(31.1	)		$	(8.0	)		$	(38.7	)		$	7.1			$	(134.1	)
Other Income, Net	16.0				0.7				6.9				1.6				387.0				(383.0		)		29.2
Net Income/(Loss) Attributable to Common   Shareholders	205.5				(14.0		)		125.6				23.1				381.2				(375.1		)		346.3
	For the Nine Months Ended September 30, 2020
Eversource (Millions of Dollars)	Electric Distribution				Natural Gas Distribution				Electric Transmission				Water Distribution				Other				Eliminations				Total
Operating Revenues	$	5,481.9			$	770.0			$	1,135.6			$	166.6			$	900.7			$	(1,784.3	)		$	6,670.5
Depreciation and Amortization	(490.0		)		(55.1		)		(206.8		)		(33.1		)		(68.1		)		1.2				(851.9		)
Other Operating Expenses	(4,309.9		)		(592.0		)		(338.5		)		(60.7		)		(771.4		)		1,787.9				(4,284.6		)
Operating Income	$	682.0			$	122.9			$	590.3			$	72.8			$	61.2			$	4.8			$	1,534.0
Interest Expense	$	(160.7	)		$	(32.1	)		$	(93.8	)		$	(25.1	)		$	(119.0	)		$	27.6			$	(403.1	)
Other Income, Net	44.9				2.5				22.7				1.7				1,161.7				(1,149.9		)		83.6
Net Income Attributable to Common Shareholders	450.6				73.8				381.8				35.6				1,108.9				(1,117.5		)		933.2
Cash Flows Used for Investments in Plant	781.2				322.8				732.4				84.0				181.2				—				2,101.6

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	For the Three Months Ended September 30, 2019
Eversource (Millions of Dollars)	Electric Distribution				Natural Gas Distribution				Electric Transmission				Water Distribution				Other				Eliminations				Total
Operating Revenues	$	1,931.6			$	103.4			$	347.8			$	64.2			$	258.1			$	(529.3	)		$	2,175.8
Depreciation and Amortization	(188.4		)		(16.1		)		(64.3		)		(11.1		)		(17.2		)		0.6				(296.5		)
Other Operating Expenses	(1,448.2		)		(99.3		)		(159.6		)		(25.5		)		(275.9		)		638.4				(1,370.1		)
Operating Income/(Loss)	$	295.0			$	(12.0	)		$	123.9			$	27.6			$	(35.0	)		$	109.7			$	509.2
Interest Expense	$	(53.2	)		$	(11.7	)		$	(33.6	)		$	(8.9	)		$	(41.7	)		$	13.9			$	(135.2	)
Other Income/(Loss), Net	13.9				—				61.4				(0.2		)		497.0				(545.1		)		27.0
Net Income/(Loss) Attributable to Common   Shareholders	197.3				(17.1		)		107.5				17.5				435.2				(421.5		)		318.9
	For the Nine Months Ended September 30, 2019
Eversource (Millions of Dollars)	Electric Distribution				Natural Gas Distribution				Electric Transmission				Water Distribution				Other				Eliminations				Total
Operating Revenues	$	5,327.2			$	779.9			$	1,037.9			$	163.5			$	767.1			$	(1,599.5	)		$	6,476.1
Depreciation and Amortization	(517.6		)		(56.0		)		(188.0		)		(35.0		)		(45.6		)		1.7				(840.5		)
Impairment of Northern Pass Transmission	—				—				(239.6		)		—				—				—				(239.6		)
Other Operating Expenses	(4,166.8		)		(620.4		)		(366.9		)		(75.4		)		(719.8		)		1,708.2				(4,241.1		)
Operating Income	$	642.8			$	103.5			$	243.4			$	53.1			$	1.7			$	110.4			$	1,154.9
Interest Expense	$	(153.3	)		$	(35.4	)		$	(94.5	)		$	(26.2	)		$	(130.3	)		$	40.0			$	(399.7	)
Other Income, Net	44.2				1.1				78.2				0.2				813.7				(833.6		)		103.8
Net Income Attributable to Common Shareholders	422.7				57.6				138.4				26.3				697.2				(683.2		)		659.0
Cash Flows Used for Investments in Plant	861.0				327.8				686.7				79.9				173.6				—				2,129.0

The following table summarizes Eversource's segmented total assets:

Eversource (Millions of Dollars)	Electric Distribution				Natural Gas Distribution				Electric Transmission				Water Distribution				Other				Eliminations				Total
As of September 30, 2020	$	23,864.7			$	4,579.9			$	11,469.7			$	2,332.0			$	22,230.1			$	(20,969.1	)		$	43,507.3
As of December 31, 2019	22,541.9				4,345.5				10,904.0				2,351.7				20,469.6				(19,488.8		)		41,123.9

On October 9, 2020, Eversource acquired certain assets that comprised NiSource’s local natural gas distribution business in Massachusetts, which was previously doing business as CMA, pursuant to an asset purchase agreement (the Agreement) entered into on February 26, 2020 between Eversource and NiSource Inc. The cash purchase price was $1.1 billion plus a target working capital amount, which is subject to adjustment to reflect actual working capital as of the closing date. Eversource financed the asset acquisition through a combination of debt and equity issuances in a ratio that was consistent with our consolidated capital structure. The natural gas distribution assets acquired from CMA were assigned to Eversource Gas Company of Massachusetts, an indirect wholly-owned subsidiary of Eversource formed in 2020. The LNG assets acquired from CMA were assigned to Hopkinton LNG Corp. Eversource Gas Company of Massachusetts distributes natural gas to approximately 330,000 residential, commercial and industrial customers with over 5,000 miles of natural gas distribution pipeline across more than 60 communities in Massachusetts, adding to the approximately 300,000 natural gas customers that Eversource already serves in Massachusetts.

The transaction was approved by the DPU, the Maine Public Utilities Commission, the FERC, and the Federal Communications Commission. The relevant review period under the Hart-Scott-Rodino Act expired. On October 7, 2020, the DPU also approved a rate settlement with the Massachusetts Attorney General’s Office, the DOER, and the Low-Income Weatherization and Fuel Assistance Program Network.

The liabilities assumed by Eversource under the Agreement specifically excluded any liabilities (past or future) arising out of, or related to, the fires and explosions that occurred on September 13, 2018 in Lawrence, Andover and North Andover, Massachusetts related to the delivery of natural gas by CMA, including certain subsequent events, all as described and in the DPU's Order on Scope dated December 23, 2019 (D.P.U. 19-141) (the Greater Lawrence Incident or GLI). The liabilities assumed also excluded any further emergency events prior to the closing of the acquisition related to the restoration and reconstruction with respect to the GLI, including any losses arising out of, or related to, any litigation, demand, cause of action, claim, suit, investigation, proceeding, indemnification agreements or rights. Eversource did not assume any of CMA's or NiSource Inc.'s debt obligations or notes payable.

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•	cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers,

•	disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly,

•	the negative impacts of the novel coronavirus (COVID-19) pandemic on our customers, vendors, employees, regulators, and operations,

•	changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability,

•	ability or inability to commence and complete our major strategic development projects and opportunities,

•	acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems,

•	actions or inaction of local, state and federal regulatory, public policy and taxing bodies,

•	substandard performance of third-party suppliers and service providers,

•	fluctuations in weather patterns, including extreme weather due to climate change,

•	changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model,

•	contamination of, or disruption in, our water supplies,

•	changes in levels or timing of capital expenditures,

•	changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations,

•	changes in accounting standards and financial reporting regulations,

•	actions of rating agencies, and

•	other presently unknown or unforeseen factors.

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•

We earned $346.3 million, or $1.01 per share, in the third quarter of 2020, and $933.2 million, or $2.76 per share, in the first nine months of 2020, compared with $318.9 million, or $0.98 per share, in the third quarter of 2019, and $659.0 million, or $2.05 per share, in the first nine months of 2019. Our 2020 results include after-tax acquisition costs related to our purchase of the assets of Columbia Gas of Massachusetts (CMA) of $5.3 million, or $0.01 per share, in the third quarter of 2020, and $12.8 million, or $0.04 per share, in the first nine months of 2020. Results for the first nine months of 2019 include an after-tax impairment charge of $204.4 million, or $0.64 per share, related to our former investment in the NPT project. Excluding those acquisition costs in 2020, we earned $351.6 million, or $1.02 per share, in the third quarter of 2020, and $946.0 million, or $2.80 per share, in the first nine months of 2020. Excluding the NPT impairment charge, we earned $863.4 million, or $2.69 per share, in the first nine months of 2019.

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Our electric distribution segment earned $205.5 million, or $0.60 per share, in the third quarter of 2020, and $450.6 million, or $1.33 per share, in the first nine months of 2020, compared with $197.3 million, or $0.61 per share, in the third quarter of 2019, and $422.7 million, or $1.32 per share, in the first nine months of 2019. Our natural gas distribution segment had a net loss of $14.0 million, or $0.04 per share, in the third quarter of 2020, and earnings of $73.8 million, or $0.22 per share, in the first nine months of 2020, compared with a net loss of $17.1 million, or $0.05 per share, in the third quarter of 2019, and earnings of $57.6 million, or $0.18 per share, in the first nine months of 2019.  Our water distribution segment earned $23.1 million, or $0.07 per share, in the third quarter of 2020, and $35.6 million, or $0.11 per share, in the first nine months of 2020, compared with $17.5 million, or $0.06 per share, in the third quarter of 2019, and $26.3 million, or $0.08 per share, in the first nine months of 2019.

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Our electric transmission segment earned $125.6 million, or $0.36 per share, in the third quarter of 2020, and $381.8 million, or $1.13 per share, in the first nine months of 2020, compared with $107.5 million, or $0.33 per share, in the third quarter of 2019, and $138.4 million, or $0.43 per share in the first nine months of 2019. Excluding the after-tax NPT impairment charge of $204.4 million, or $0.64 per share, our electric transmission segment earned $342.8 million, or $1.07 per share, in the first nine months of 2019.

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Eversource parent and other companies earned $6.1 million, or $0.02 per share, in the third quarter of 2020, and had a net loss of $8.6 million, or $0.03 per share, in the first nine months of 2020, compared with earnings of $13.7 million, or $0.03 per share, in the third quarter of 2019, and $14.0 million, or $0.04 per share, in the first nine months of 2019.  Excluding acquisition costs, Eversource parent and other companies earned $11.4 million, or $0.03 per share, in the third quarter of 2020, and $4.2 million, or $0.01 per share, in the first nine months of 2020.

•	We reaffirm 2020 non-GAAP earnings guidance of between $3.60 per share and $3.70 per share, which excludes the impact of acquisition and integration costs related to our purchase of the assets of CMA, and our long-term EPS growth rate through 2024 from our regulated utility businesses of between 5 to 7 percent.

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As of the date of our filing, the outbreak of COVID-19 has not resulted in significant financial or operational impacts. We believe that we have in place, or are developing, successful mechanisms with our state regulatory commissions that allow, or will allow, us to recover our incremental costs associated with COVID-19, which include uncollectible customer receivable expenses. We are continuing to closely monitor the COVID-19 pandemic, and we continue to operate under our pandemic response plan.

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Cash flows provided by operating activities totaled $1.50 billion in the first nine months of 2020, compared with $1.49 billion in the first nine months of 2019. Investments in property, plant and equipment totaled $2.10 billion in the first nine months of 2020, compared with $2.13 billion in the first nine months of 2019.  Cash and Cash Equivalents totaled $730.0 million as of September 30, 2020, compared with $15.4 million as of December 31, 2019. Our available borrowing capacity under our commercial paper programs totaled $2.04 billion as of September 30, 2020.

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•	In the first nine months of 2020, we issued 11,960,000 common shares, which resulted in proceeds of $929.0 million, net of issuance costs.

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In the first nine months of 2020, we issued $2.36 billion of new long-term debt, consisting of $1.55 billion by Eversource parent, $400 million by NSTAR Electric, $150 million by PSNH, $190 million by NSTAR Gas and $70 million by Yankee Gas. Proceeds from these new issuances were used primarily to fund a portion of the purchase price for the CMA asset acquisition and to pay short-term borrowings at Eversource parent, refinance investments in eligible green expenditures at NSTAR Electric, and to refinance existing indebtedness, fund capital expenditures and for general corporate purposes at PSNH, NSTAR Gas and Yankee Gas.

•	On September 2, 2020, our Board of Trustees approved a common share dividend payment of $0.5675 per share, which was paid on September 30, 2020 to shareholders of record as of September 17, 2020.

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On October 9, 2020, Eversource completed the acquisition of certain assets that comprised NiSource’s local natural gas distribution business in Massachusetts, CMA, for a cash purchase price of $1.1 billion plus a target working capital amount, which is subject to adjustment to reflect actual working capital as of the closing date. On October 7, 2020, the DPU approved the rate plan related to the acquisition.

•

On August 4, 2020, Tropical Storm Isaias caused catastrophic damage to our electric distribution system, which resulted in significant amounts and durations of customer outages, primarily in Connecticut. In terms of customer outages, this storm was one of the worst in CL&P’s history. Management continues to evaluate the storm restoration costs and believes our response to the storm was prudent and expects the costs meet the criteria for specific cost recovery. As a result, management does not expect the storm costs to have a material impact on the results of operations of Eversource or CL&P.  PURA has opened an investigation in Connecticut to review the preparation for and response of utilities to the storm. PURA will also investigate the prudence of costs incurred by CL&P to restore service as part of its response. CL&P expects to request recovery of these deferred storm costs through its regulatory recovery process before PURA in 2021.

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New Connecticut legislation enacted on October 8, 2020 requires, among other things, PURA to open a proceeding by June 1, 2021 to begin to evaluate and eventually implement performance based regulation for electric distribution companies; extends deadlines for PURA to issue final decisions in rate cases, change of control transactions and financing proceedings to be more consistent with timeframes in many other U.S. jurisdictions; increases the maximum potential penalty for noncompliance with storm performance standards from 2.5 percent to 4 percent of annual electric distribution company revenue; and directs PURA to open a proceeding by January 1, 2021 to evaluate and decide when bill credits should be paid to electric customers who lose service in future storms, including when waivers of these criteria will be granted to utilities. This law has no impact on storm response, costs or impacts prior to July 1, 2021.

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(1)	These senior notes are part of the same series issued by Eversource parent in January 2020. The aggregate outstanding principal amount of these senior notes is now $650 million.

(2)	A portion of the proceeds from these Eversource parent issuances were used to acquire the CMA assets, with the remaining used to refinance short-term borrowings.

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(1)	The pricing for the Revolution Wind contracts in Connecticut has not been publicly disclosed.

(2)	Index Offshore Wind Renewable Energy Certificate (OREC) strike price.

(3)	The Long Island Power Authority (LIPA) agreed to expand the original 20-year PPA from 90 MW to 130 MW through an amendment to the original agreement. The amendment is awaiting final approval from the New York Comptroller's Office.

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(1)	Special contracts are unique to Yankee Gas natural gas distribution customers who take service under such an arrangement and generally specify the amount of distribution revenue to be paid to Yankee Gas regardless of the customers' usage.

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•

Base electric distribution revenues increased $23.3 million and $87.2 million for the three and nine months ended September 30, 2020, as compared to the same periods in 2019, respectively, due primarily to the impact of CL&P's base distribution rate increases effective May 1, 2020 and May 1, 2019, which include recovery of storm costs and certain other items that do not impact earnings, the impact of a PSNH temporary base distribution rate increase effective July 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings, and an NSTAR Electric base distribution rate increase effective January 1, 2020.

•	Base natural gas distribution revenues increased $3.1 million and $15.1 million for the three and nine months ended September 30, 2020, as compared to the same periods in 2019, respectively, due primarily to a base distribution rate increase at Yankee Gas effective January 1, 2020.

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•	CL&P's distribution revenues increased $31.7 million due primarily to the impact of its base distribution rate increases effective May 1, 2020 and May 1, 2019, which include recovery of storm costs and certain other items that do not impact earnings.

•	NSTAR Electric's distribution revenues increased $25.9 million due primarily to the impact of its base distribution rate increase effective January 1, 2020.

•	PSNH's distribution revenues increased $29.6 million due primarily to the impact of its temporary base distribution rate increase effective July 1, 2019, which includes recovery of storm costs and certain other items that do not impact earnings.

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•	The increase at CL&P was due primarily to the new Millstone PPA energy purchases and higher average supply-related sales volumes, partially offset by lower average prices.

•	The decrease at NSTAR Electric was due primarily to lower expense related to the procurement of energy supply resulting from lower average prices and lower average supply-related sales volumes.

•	The decrease at PSNH was due primarily to lower expense related to the procurement of energy supply resulting from lower average prices, partially offset by higher average supply-related sales volumes.

•

The decrease in transmission costs at CL&P and NSTAR Electric was due primarily to a reduction to the retail transmission cost deferral, which reflects the actual costs of transmission service compared to estimated amounts billed to customers. This was partially offset by an increase in Local Network Service charges, which reflects the cost of transmission service provided by Eversource over our local transmission network, and an increase in costs billed by ISO-NE that support regional grid investments.

•	The increase in transmission costs at PSNH was primarily the result of an increase in Local Network Service charges and an increase in costs billed by ISO-NE that support regional grid investments. This was partially offset by a decrease in the retail transmission cost deferral.

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•	The decrease at CL&P was due primarily to the under recovery of energy purchases related to the Millstone PPA and the deferral of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.

•	The decrease at NSTAR Electric was due to the deferral of energy supply and energy-related costs, which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs.

•	The increase at CL&P and PSNH was due to the deferral adjustment, which reflects actual costs of energy efficiency programs compared to the estimated amounts billed to customers and the timing of the recovery of energy efficiency costs.

•	The decrease at NSTAR Electric was due to the timing of spending on certain large energy efficiency projects in 2020, as compared to 2019.

•

The decrease at CL&P was related to a $21.4 million decrease in the remittance of energy efficiency funds to the State of Connecticut. Energy efficiency funds collected from customers after July 1, 2019 are no longer subject to remittance to the State of Connecticut. The decrease was partially offset by higher property taxes as a result of a higher utility plant balance, higher gross earnings taxes, and the absence in 2020 of a use tax refund received in 2019.

•	The increases at NSTAR Electric and PSNH were due to higher property taxes as a result of higher utility plant balances.

•	The increase at CL&P was due to higher interest on long-term debt ($6.2 million), partially offset by a decrease in interest expense on regulatory deferrals ($1.0 million), lower amortization of debt discounts and premiums, net ($1.0 million) and a decrease in interest on short-term notes payable ($0.9 million).

•	The increase at NSTAR Electric was due to higher interest on long-term debt ($8.9 million), an increase in interest expense on regulatory deferrals ($4.6 million), and a decrease in AFUDC related to debt funds ($1.6 million), partially offset by a decrease in interest on short-term notes payable ($3.3 million).

•	The decrease at PSNH was due to a decrease in RRB interest expense ($1.0 million), partially offset by higher interest on long-term debt ($0.6 million).

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•	The increase at CL&P was due primarily to an increase related to pension, SERP and PBOP non-service income components ($2.9 million) and an increase in AFUDC related to equity funds ($2.0 million).

•	The increase at NSTAR Electric was due primarily to an increase related to pension, SERP and PBOP non-service income components ($4.2 million) and an increase in AFUDC related to equity funds ($1.1 million).

•	The decrease at PSNH was due primarily to the absence in 2020 of the recognition of the equity component of the carrying charges related to storm costs recorded in interest income in 2019 ($5.2 million), partially offset by an increase related to pension, SERP and PBOP non-service income components ($1.7 million) and an increase in AFUDC related to equity funds ($1.4 million).

•

The increase at CL&P was due primarily to higher pre-tax earnings ($6.6 million), higher state taxes ($2.4 million), return to provision adjustments ($1.1 million), and by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($3.3 million), partially offset by an increase in share-based payment excess tax benefits ($1.8 million), and the absence in 2020 of an increase in the valuation allowance ($9.3 million).

•

The increase at NSTAR Electric was due primarily to higher pre-tax earnings ($6.6 million), higher state taxes ($2.1 million), and return to provision adjustments ($0.5 million), partially offset by items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.9 million), and an increase in share-based payment excess tax benefits ($1.8 million).

•	The increase at PSNH was due primarily to higher pre-tax earnings ($5.3 million), higher state taxes ($1.2 million), and return to provision adjustments ($1.7 million), partially offset by an increase in share-based payment excess tax benefits ($0.6 million) and in items that impact our tax rate as a result of regulatory treatment (flow-through items) and permanent differences ($0.1 million).

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ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.	CONTROLS AND PROCEDURES

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ITEM 1.	LEGAL PROCEEDINGS

ITEM 1A.	RISK FACTORS

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Cybersecurity attacks: During the COVID-19 timeframe, we had initially seen an increase in the volume of perimeter scanning for vulnerabilities, but have recently seen a return of pre-COVID-19 volume of perimeter scanning. This scanning can be leveraged to compromise a system.  We have also seen increased business email compromises of vendors to gain access to their email systems to be used in more advanced phishing attacks.  We had seen increased phishing attempts targeted at our employees by outside parties to gain control of our systems and network.  We continue to implement strong cybersecurity measures and have increased the education of our employees and contractors to ensure that our systems remain functional in order to both serve our operational needs with a remote workforce and to ensure uninterrupted service to our customers.  Our incident response team works with compromised vendors to assist them in improving their security posture.  We also continuously review and update our response plans to include responding to an event while in a remote work environment.

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Access to, or cost of, capital resources: We utilize the commercial paper market extensively for our short-term borrowing needs. At the onset of the pandemic in the United States, liquidity in the commercial paper credit market began to deteriorate rapidly. However, federal legislative actions, including actions taken by the Federal Reserve, have provided sufficient liquidity and stabilization of the credit markets. We continue to monitor the ability for us to access the global capital and credit markets; however, if we are unable to access these markets, then our financial condition may be adversely affected.

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Actions of regulators: We continue to work closely with our state regulatory commissions and consumer advocates on customer assistance measures, including payment plan options in order to mitigate the impact on customer rates in the future, as well as financial hardship and arrearage management programs for those customers who are unable to pay their utility bills. We developed these long-term solutions for customers in order to help minimize the extent of the impact of COVID-19 on customer receivable balances and customers’ affordability in light of the current financial impact they may experience. We believe that we have in place, or are developing, successful mechanisms with our state regulatory commissions to recover our incremental costs associated with COVID-19, while balancing the impact on our customers’ bills and our operating cash flows, however our financial condition may be adversely affected depending on the outcome of planned proceedings before our state regulatory commissions.

•

Timing of strategic development opportunities: The successful execution of our timeline for developing our offshore wind projects is based on several factors, including state and federal siting and permitting approvals. Between March 2020 and June 2020, COVID-19-related work restrictions prohibited work in New York and within New York jurisdictional waters. Those restrictions delayed offshore site investigations, and onshore environmental and geotechnical surveys, which could adversely impact our project siting and permit filing timelines. On September 25, 2020, the state of New York Administrative Law Judge granted a change to the start of the South Fork Wind evidentiary hearing schedule to December 2, 2020, due to continuing settlement conferences amongst the parties. Although we are unable to predict the impact of those delays on our offshore wind projects at this time, we are currently developing mitigation plans to address permitting delays due to COVID-19 restrictions on our offshore wind projects. Similarly, we are unable to assess the potential impact that a reintroduction of these work restrictions in response to a future increase in COVID-19 infections would have on our projects.

•	Suppliers and Vendors: We have instituted measures to ensure our supply chain remains open to us; however, there could be global shortages that will impact our maintenance, capital programs, and storm response that we currently cannot anticipate.

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Loss of key personnel: We continue to adjust our pandemic plan to address various scenarios including reduced workforce levels and limited mutual aid in the event of a significant storm event. We have implemented remote work arrangements for our workforce by enabling nearly half of our employees to work from home and taking extra precautions for our field-based employees. We have taken significant safety measures to ensure adequate social distancing for our field crews to safely provide essential services to our customers. We have also adopted protocols to ensure the safety and health of those employees who work onsite in critical facilities. We continue to monitor COVID-19 developments affecting our workforce and will take additional precautions that we determine are necessary in order to mitigate the impacts. Although to date our workforce continues to be able to safely and reliably deliver our critical services to customers, we are unable to predict the extent of the impact of COVID-19 on our employees.

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Impact to Benefit Plans: As of September 30, 2020, under the Pension Protection Act, the funded status of our pension plan was approximately 103 percent. The pension and PBOP plans' funded status is highly dependent on benefit plan asset returns, interest rates, and discount rates, all of which could be materially impacted by an extended economic slowdown. Should these financial metrics be negatively impacted by COVID-19 as of December 31, 2020, it could result in the underperformance of our pension and PBOP plan investments, an increase in pension and PBOP obligations and employee benefit plan costs, and in a minimum pension funding requirement due by March 31, 2022 for the 2021 Plan year. We continue to monitor federal legislative pension developments that could provide additional pension funding relief.

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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ITEM 6.	EXHIBITS

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