Accrued interest payable

  
Interest and Penalties:  Interest on uncertain tax positions is recorded and generally classified as a component of Other Interest Expense on the statements of income.  However, when resolution of uncertainties results in the Company receiving interest income, any related interest benefit is recorded in Other Income, Net on the statements of income.  No penalties have been recorded. There has been no interest expense or income recognized on uncertain tax positions for the years ended December 31, 2021, 2020 or 2019. The accrued interest payable was $0.1 million as of both December 31, 2021 and 2020.   
Tax Positions:  During 2021 and 2020, Eversource did not resolve any of its uncertain tax positions.   
Open Tax Years:  The following table summarizes Eversource, CL&P, NSTAR Electric, and PSNH's tax years that remain subject to examination by major tax jurisdictions as of December 31, 2021:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Description | Tax Years |
| Federal | 2021 |
| Connecticut | 2018 - 2021 |
| Massachusetts | 2018 - 2021 |
| New Hampshire | 2018 - 2021 |

  
Eversource does not estimate to have an earnings impact related to unrecognized tax benefits during the next twelve months.  
13.     COMMITMENTS AND CONTINGENCIES  
A.     Environmental MattersEversource, CL&P, NSTAR Electric and PSNH are subject to environmental laws and regulations intended to mitigate or remove the effect of past operations and improve or maintain the quality of the environment.  These laws and regulations require the removal or the remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current and former operating sites. Eversource, CL&P, NSTAR Electric and PSNH have an active environmental auditing and training program and each believes it is substantially in compliance with all enacted laws and regulations.  
Environmental reserves are accrued when assessments indicate it is probable that a liability has been incurred and an amount can be reasonably estimated.  The approach used estimates the liability based on the most likely action plan from a variety of available remediation options, including no action required or several different remedies ranging from establishing institutional controls to full site remediation and monitoring.  These liabilities are estimated on an undiscounted basis and do not assume that the amounts are recoverable from insurance companies or other third parties.  The environmental reserves include sites at different stages of discovery and remediation and do not include any unasserted claims.  
These reserve estimates are subjective in nature as they take into consideration several different remediation options at each specific site.  The reliability and precision of these estimates can be affected by several factors, including new information concerning either the level of contamination at the site, the extent of Eversource's, CL&P's, NSTAR Electric's and PSNH's responsibility for remediation or the extent of remediation required, recently enacted laws and regulations or changes in cost estimates due to certain economic factors. It is possible that new information or future developments could require a reassessment of the potential exposure to required environmental remediation.  As this information becomes available, management will continue to assess the potential exposure and adjust the reserves accordingly.    
The amounts recorded as environmental reserves are included in Other Current Liabilities and Other Long-Term Liabilities on the balance sheets and represent management's best estimate of the liability for environmental costs, and take into consideration site assessment, remediation and long-term monitoring costs.  The environmental reserves also take into account recurring costs of managing hazardous substances and pollutants, mandated expenditures to remediate contaminated sites and any other infrequent and non-recurring clean-up costs.  A reconciliation of the activity in the environmental reserves is as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |
| Balance as of January 1, 2020 | $ | 81.0  |  |  | $ | 11.4  |  |  | $ | 8.0  |  |  | $ | 7.5  |  |
| Increase Due to CMA Asset Acquisition | 22.9  |  |  | —  |  |  | —  |  |  | —  |  |
| Additions | 8.4  |  |  | 4.2  |  |  | 0.7  |  |  | —  |  |
| Payments/Reductions | (9.9) |  |  | (3.3) |  |  | (4.0) |  |  | (0.4) |  |
| Balance as of December 31, 2020 | 102.4  |  |  | 12.3  |  |  | 4.7  |  |  | 7.1  |  |
| Additions | 23.4  |  |  | 4.4  |  |  | —  |  |  | —  |  |
| Payments/Reductions | (10.4) |  |  | (2.8) |  |  | (1.4) |  |  | (0.8) |  |
| Balance as of December 31, 2021 | $ | 115.4  |  |  | $ | 13.9  |  |  | $ | 3.3  |  |  | $ | 6.3  |  |

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |
| 2021 | 61 |  | 14 |  | 11 |  | 9 |
| 2020 | 63 |  | 15 |  | 12 |  | 9 |

  
119
