Charitable contributions

  
As of both December 31, 2021 and 2020, CL&P, NSTAR Electric and PSNH had long-term receivables from Eversource Service in the amounts of $25.0 million, $5.5 million and $3.8 million, respectively, which were included in Other Long-Term Assets on the balance sheets. These amounts related to the funding of investments held in trust by Eversource Service in connection with certain postretirement benefits for CL&P, NSTAR Electric and PSNH employees and have been eliminated in consolidation on the Eversource financial statements.    
Included in the CL&P, NSTAR Electric and PSNH balance sheets as of December 31, 2021 and 2020 were Accounts Receivable from Affiliated Companies and Accounts Payable to Affiliated Companies relating to transactions between CL&P, NSTAR Electric and PSNH and other subsidiaries that are wholly-owned by Eversource.  These amounts have been eliminated in consolidation on the Eversource financial statements.  
The Eversource Energy Foundation is an independent not-for-profit charitable entity and is not included in the consolidated financial statements of Eversource as the Company does not have title to, and cannot receive contributions back from, the Eversource Energy Foundation's assets. Eversource did not make any contributions to the Eversource Energy Foundation in 2021 and 2019, and made contributions of $6.4 million in 2020.  
2.     REGULATORY ACCOUNTING  
Eversource's utility companies are subject to rate regulation that is based on cost recovery and meets the criteria for application of accounting guidance for rate-regulated operations, which considers the effect of regulation on the timing of the recognition of certain revenues and expenses. The regulated companies' financial statements reflect the effects of the rate-making process.  The rates charged to the customers of Eversource's regulated companies are designed to collect each company's costs to provide service, 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 the regulatory assets that have been recorded.  If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises, or if management could not conclude it is probable that costs would be recovered from customers in future rates, the applicable costs would be charged to net income in the period in which the determination is made.  
Regulatory Assets:  The components of regulatory assets were as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|   | As of December 31, |
|   | 2021 |  | 2020 |
| (Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |
| Benefit Costs | $ | 1,481.0  |  |  | $ | 272.4  |  |  | $ | 395.5  |  |  | $ | 118.9  |  |  | $ | 2,794.2  |  |  | $ | 632.3  |  |  | $ | 690.0  |  |  | $ | 267.6  |  |
| Income Taxes, Net | 790.7  |  |  | 470.5  |  |  | 112.6  |  |  | 17.5  |  |  | 747.1  |  |  | 458.9  |  |  | 110.4  |  |  | 15.2  |  |
| Securitized Stranded Costs | 478.9  |  |  | —  |  |  | —  |  |  | 478.9  |  |  | 522.1  |  |  | —  |  |  | —  |  |  | 522.1  |  |
| Storm Costs, Net | 1,102.7  |  |  | 695.6  |  |  | 341.3  |  |  | 65.8  |  |  | 765.6  |  |  | 515.1  |  |  | 186.4  |  |  | 64.1  |  |
| Regulatory Tracker Mechanisms | 1,050.5  |  |  | 333.6  |  |  | 376.6  |  |  | 85.4  |  |  | 850.5  |  |  | 246.6  |  |  | 332.2  |  |  | 95.3  |  |
| Derivative Liabilities | 249.2  |  |  | 249.2  |  |  | —  |  |  | —  |  |  | 296.3  |  |  | 293.1  |  |  | —  |  |  | —  |  |
| Goodwill-related | 297.8  |  |  | —  |  |  | 255.7  |  |  | —  |  |  | 314.7  |  |  | —  |  |  | 270.2  |  |  | —  |  |
| Asset Retirement Obligations | 115.0  |  |  | 33.6  |  |  | 59.8  |  |  | 4.1  |  |  | 118.4  |  |  | 32.1  |  |  | 58.6  |  |  | 3.9  |  |
| Other Regulatory Assets | 150.0  |  |  | 29.9  |  |  | 37.7  |  |  | 15.8  |  |  | 161.0  |  |  | 33.7  |  |  | 56.1  |  |  | 20.9  |  |
| Total Regulatory Assets | 5,715.8  |  |  | 2,084.8  |  |  | 1,579.2  |  |  | 786.4  |  |  | 6,569.9  |  |  | 2,211.8  |  |  | 1,703.9  |  |  | 989.1  |  |
| Less:  Current Portion | 1,129.1  |  |  | 371.6  |  |  | 444.0  |  |  | 107.2  |  |  | 1,076.6  |  |  | 345.6  |  |  | 399.9  |  |  | 115.9  |  |
| Total Long-Term Regulatory Assets | $ | 4,586.7  |  |  | $ | 1,713.2  |  |  | $ | 1,135.2  |  |  | $ | 679.2  |  |  | $ | 5,493.3  |  |  | $ | 1,866.2  |  |  | $ | 1,304.0  |  |  | $ | 873.2  |  |

  
Benefit Costs:  Eversource's Pension, SERP and PBOP Plans are accounted for in accordance with accounting guidance on defined benefit pension and other PBOP plans.  The liability (or asset) recorded by the regulated companies to recognize the funded status of their retiree benefit plans is offset by a regulatory asset (or offset by a regulatory liability in the case of a benefit plan asset) in lieu of a charge to Accumulated Other Comprehensive Income/(Loss), reflecting ultimate recovery from customers through rates.  The regulatory asset (or regulatory liability) is amortized as the actuarial gains and losses and prior service cost are amortized to net periodic benefit cost for the pension and PBOP plans.  All amounts are remeasured annually.  Regulatory accounting is also applied to the portions of Eversource's service company costs that support the regulated companies, as these amounts are also recoverable.  As these regulatory assets or regulatory liabilities do not represent a cash outlay for the regulated companies, no carrying charge is recovered from customers. See Note 11A, "Employee Benefits - Pension Benefits and Postretirement Benefits Other Than Pension," for further information on regulatory benefit plan amounts recognized and amortized during the year.   
CL&P, NSTAR Electric, and PSNH recover benefit costs related to their distribution and transmission operations from customers in rates as allowed by their applicable regulatory commissions.  NSTAR Electric recovers qualified pension and PBOP expenses related to its distribution operations through a rate reconciling mechanism that fully tracks the change in net pension and PBOP expenses each year.    
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