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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense | The components of income tax expense are as follows:
Eversource (Millions of Dollars) | For the Years Ended December 31,
2021 |  | 2020 |  | 2019
Current Income Taxes: |  |  |  |  |
Federal | $ | 21.5 |  |  | $ | 73.6 |  |  | $ | 56.9 |
State | (21.6) |  |  | 19.1 |  |  | 10.5 |
Total Current | (0.1) |  |  | 92.7 |  |  | 67.4 |
Deferred Income Taxes, Net: |  |  |  |  |
Federal | 199.7 |  |  | 173.5 |  |  | 138.4 |
State | 147.4 |  |  | 83.7 |  |  | 71.4 |
Total Deferred | 347.1 |  |  | 257.2 |  |  | 209.8 |
Investment Tax Credits, Net | (2.8) |  |  | (3.7) |  |  | (3.7) |
Income Tax Expense | $ | 344.2 |  |  | $ | 346.2 |  |  | $ | 273.5 |
| For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
(Millions of Dollars) | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH
Current Income Taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | $ | 15.0 |  |  | $ | 52.3 |  |  | $ | 43.1 |  |  | $ | 12.0 |  |  | $ | 53.9 |  |  | $ | 20.6 |  |  | $ | 68.4 |  |  | $ | 82.6 |  |  | $ | 22.9 |
State | (7.0) |  |  | 6.2 |  |  | 10.8 |  |  | (6.1) |  |  | 6.9 |  |  | 3.8 |  |  | 15.4 |  |  | 18.2 |  |  | 2.2 |
Total Current | 8.0 |  |  | 58.5 |  |  | 53.9 |  |  | 5.9 |  |  | 60.8 |  |  | 24.4 |  |  | 83.8 |  |  | 100.8 |  |  | 25.1 |
Deferred Income Taxes, Net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | 76.3 |  |  | 16.3 |  |  | (14.9) |  |  | 101.1 |  |  | 33.8 |  |  | (1.3) |  |  | 35.2 |  |  | 0.1 |  |  | 5.8 |
State | 47.6 |  |  | 41.2 |  |  | 0.4 |  |  | 43.4 |  |  | 38.8 |  |  | 8.6 |  |  | 18.8 |  |  | 27.0 |  |  | 10.1 |
Total Deferred | 123.9 |  |  | 57.5 |  |  | (14.5) |  |  | 144.5 |  |  | 72.6 |  |  | 7.3 |  |  | 54.0 |  |  | 27.1 |  |  | 15.9 |
Investment Tax Credits, Net | (0.6) |  |  | (1.7) |  |  | — |  |  | (0.7) |  |  | (2.6) |  |  | — |  |  | (0.8) |  |  | (2.6) |  |  | — |
Income Tax Expense | $ | 131.3 |  |  | $ | 114.3 |  |  | $ | 39.4 |  |  | $ | 149.7 |  |  | $ | 130.8 |  |  | $ | 31.7 |  |  | $ | 137.0 |  |  | $ | 125.3 |  |  | $ | 41.0 |
Summary of Reconciliation Between Income Tax Expense and Expected Tax | A reconciliation between income tax expense and the expected tax expense at the statutory rate is as follows:
Eversource (Millions of Dollars, except percentages) | For the Years Ended December 31,
2021 |  | 2020 |  | 2019
Income Before Income Tax Expense | $ | 1,572.3 |  |  | $ | 1,558.9 |  |  | $ | 1,190.1 |
Statutory Federal Income Tax Expense at 21% | 330.2 |  |  | 327.4 |  |  | 249.9 |
Tax Effect of Differences: |  |  |  |  |
Depreciation | (18.1) |  |  | (11.1) |  |  | 1.9 |
Investment Tax Credit Amortization | (2.8) |  |  | (3.7) |  |  | (3.7) |
State Income Taxes, Net of Federal Impact | 54.4 |  |  | 44.9 |  |  | 24.6 |
Dividends on ESOP | (5.1) |  |  | (5.1) |  |  | (5.1) |
Tax Asset Valuation Allowance/Reserve Adjustments | 44.6 |  |  | 33.4 |  |  | 40.1 |
Excess Stock Benefit | (4.0) |  |  | (6.6) |  |  | (1.5) |
EDIT Amortization | (69.1) |  |  | (48.7) |  |  | (37.4) |
Other, Net | 14.1 |  |  | 15.7 |  |  | 4.7 |
Income Tax Expense | $ | 344.2 |  |  | $ | 346.2 |  |  | $ | 273.5 |
Effective Tax Rate | 21.9 | % |  | 22.2 | % |  | 23.0 | %
| For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
(Millions of Dollars, except percentages) | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH
Income Before Income Tax Expense | $ | 533.0 |  |  | $ | 590.9 |  |  | $ | 189.8 |  |  | $ | 607.6 |  |  | $ | 575.8 |  |  | $ | 179.0 |  |  | $ | 547.8 |  |  | $ | 557.3 |  |  | $ | 175.0 |
Statutory Federal Income Tax Expense at 21% | 111.9 |  |  | 124.1 |  |  | 39.9 |  |  | 127.6 |  |  | 120.9 |  |  | 37.6 |  |  | 115.0 |  |  | 117.0 |  |  | 36.8 |
Tax Effect of Differences: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation | (6.4) |  |  | (3.4) |  |  | (0.2) |  |  | 0.4 |  |  | (3.7) |  |  | (1.4) |  |  | (0.2) |  |  | (3.0) |  |  | (0.8) |
Investment Tax Credit Amortization | (0.6) |  |  | (1.7) |  |  | — |  |  | (0.7) |  |  | (2.6) |  |  | — |  |  | (0.8) |  |  | (2.6) |  |  | — |
State Income Taxes, Net of Federal Impact | (4.6) |  |  | 37.5 |  |  | 8.9 |  |  | (1.2) |  |  | 36.0 |  |  | 9.8 |  |  | 2.5 |  |  | 35.7 |  |  | 9.8 |
Tax Asset Valuation Allowance/Reserve Adjustments | 36.7 |  |  | — |  |  | — |  |  | 30.7 |  |  | — |  |  | — |  |  | 24.5 |  |  | — |  |  | — |
Excess Stock Benefit | (1.5) |  |  | (1.4) |  |  | (0.5) |  |  | (2.3) |  |  | (2.3) |  |  | (0.8) |  |  | (0.5) |  |  | (0.5) |  |  | (0.2) |
EDIT Amortization | (9.8) |  |  | (43.2) |  |  | (10.5) |  |  | (9.0) |  |  | (20.4) |  |  | (15.4) |  |  | (5.8) |  |  | (22.9) |  |  | (4.0) |
Other, Net | 5.6 |  |  | 2.4 |  |  | 1.8 |  |  | 4.2 |  |  | 2.9 |  |  | 1.9 |  |  | 2.3 |  |  | 1.6 |  |  | (0.6) |
Income Tax Expense | $ | 131.3 |  |  | $ | 114.3 |  |  | $ | 39.4 |  |  | $ | 149.7 |  |  | $ | 130.8 |  |  | $ | 31.7 |  |  | $ | 137.0 |  |  | $ | 125.3 |  |  | $ | 41.0 |
Effective Tax Rate | 24.6 | % |  | 19.3 | % |  | 20.8 | % |  | 24.6 | % |  | 22.7 | % |  | 17.7 | % |  | 25.0 | % |  | 22.5 | % |  | 23.4 | %
Schedule of Accumulated Deferred Income Tax Obligations | The tax effects of temporary differences that give rise to the net accumulated deferred income tax obligations are as follows:
| As of December 31,
| 2021 |  | 2020
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Deferred Tax Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee Benefits | $ | 270.8 |  |  | $ | 23.9 |  |  | $ | 40.3 |  |  | $ | 14.1 |  |  | $ | 602.4 |  |  | $ | 144.5 |  |  | $ | 79.8 |  |  | $ | 56.6 |
Derivative Liabilities | 76.8 |  |  | 76.8 |  |  | — |  |  | — |  |  | 92.6 |  |  | 91.8 |  |  | — |  |  | — |
Regulatory Deferrals - Liabilities | 390.7 |  |  | 90.9 |  |  | 215.4 |  |  | 24.3 |  |  | 259.8 |  |  | 30.2 |  |  | 161.8 |  |  | 13.4 |
Allowance for Uncollectible Accounts | 104.1 |  |  | 48.8 |  |  | 21.5 |  |  | 6.2 |  |  | 87.5 |  |  | 42.3 |  |  | 20.9 |  |  | 4.6 |
Tax Effect - Tax Regulatory Liabilities | 783.4 |  |  | 328.2 |  |  | 254.3 |  |  | 100.9 |  |  | 810.9 |  |  | 331.4 |  |  | 271.8 |  |  | 105.2 |
Net Operating Loss Carryforwards | 7.5 |  |  | — |  |  | — |  |  | — |  |  | 12.7 |  |  | — |  |  | — |  |  | — |
Purchase Accounting Adjustment | 67.2 |  |  | — |  |  | — |  |  | — |  |  | 54.5 |  |  | — |  |  | — |  |  | — |
Other | 196.6 |  |  | 103.9 |  |  | 21.7 |  |  | 22.9 |  |  | 200.3 |  |  | 100.9 |  |  | 14.3 |  |  | 19.8 |
Total Deferred Tax Assets | 1,897.1 |  |  | 672.5 |  |  | 553.2 |  |  | 168.4 |  |  | 2,120.7 |  |  | 741.1 |  |  | 548.6 |  |  | 199.6 |
Less: Valuation Allowance | 61.5 |  |  | 44.5 |  |  | — |  |  | — |  |  | 48.3 |  |  | 33.7 |  |  | — |  |  | — |
Net Deferred Tax Assets | $ | 1,835.6 |  |  | $ | 628.0 |  |  | $ | 553.2 |  |  | $ | 168.4 |  |  | $ | 2,072.4 |  |  | $ | 707.4 |  |  | $ | 548.6 |  |  | $ | 199.6 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accelerated Depreciation and Other Plant-Related Differences | $ | 4,426.0 |  |  | $ | 1,509.5 |  |  | $ | 1,553.7 |  |  | $ | 482.9 |  |  | $ | 4,153.6 |  |  | $ | 1,438.1 |  |  | $ | 1,489.4 |  |  | $ | 453.8 |
Property Tax Accruals | 88.1 |  |  | 40.5 |  |  | 33.7 |  |  | 6.3 |  |  | 88.7 |  |  | 39.0 |  |  | 37.0 |  |  | 5.8 |
Regulatory Amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory Deferrals - Assets | 1,260.3 |  |  | 438.3 |  |  | 337.6 |  |  | 198.4 |  |  | 1,376.7 |  |  | 444.8 |  |  | 324.4 |  |  | 263.4 |
Tax Effect - Tax Regulatory Assets | 257.8 |  |  | 181.4 |  |  | 10.9 |  |  | 8.3 |  |  | 244.6 |  |  | 174.4 |  |  | 11.3 |  |  | 8.6 |
Goodwill Regulatory Asset - 1999 Merger | 81.4 |  |  | — |  |  | 69.9 |  |  | — |  |  | 86.0 |  |  | — |  |  | 73.8 |  |  | — |
Derivative Assets | 14.9 |  |  | 14.9 |  |  | — |  |  | — |  |  | 17.8 |  |  | 17.8 |  |  | — |  |  | — |
Other | 304.2 |  |  | 5.5 |  |  | 126.9 |  |  | 10.5 |  |  | 200.3 |  |  | 1.6 |  |  | 72.6 |  |  | 5.6 |
Total Deferred Tax Liabilities | $ | 6,432.7 |  |  | $ | 2,190.1 |  |  | $ | 2,132.7 |  |  | $ | 706.4 |  |  | $ | 6,167.7 |  |  | $ | 2,115.7 |  |  | $ | 2,008.5 |  |  | $ | 737.2 |
Summary of Tax Credits and Loss Carryforwards | The following table provides the amounts and expiration dates of state tax credit and loss carryforwards and federal tax credit and net operating loss carryforwards:
| As of December 31,
| 2021 |  | 2020
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Expiration Range |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Expiration Range
State Net Operating Loss | $ | 138.3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 2021 - 2040 |  | $ | 183.4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 2021 - 2040
State Tax Credit | 197.7 |  |  | 137.0 |  |  | — |  |  | — |  |  | 2021 - 2026 |  | 186.6 |  |  | 133.4 |  |  | — |  |  | — |  |  | 2020 - 2025
State Charitable Contribution | 23.7 |  |  | — |  |  | — |  |  | — |  |  | 2021 - 2025 |  | 10.2 |  |  | — |  |  | — |  |  | — |  |  | 2020 - 2024
Summary of Income Tax Contingencies | A reconciliation of the activity in unrecognized tax benefits, all of which would impact the effective tax rate if recognized, is as follows:
(Millions of Dollars) | Eversource |  | CL&P
Balance as of January 1, 2019 | $ | 45.9 |  |  | $ | 18.2 |
Gross Increases - Current Year | 12.1 |  |  | 4.0 |
Gross Increases - Prior Year | 3.4 |  |  | 3.3 |
Lapse of Statute of Limitations | (6.4) |  |  | (2.4) |
Balance as of December 31, 2019 | 55.0 |  |  | 23.1 |
Gross Increases - Current Year | 11.9 |  |  | 4.6 |
Gross Increases - Prior Year | 1.4 |  |  | 0.7 |
Lapse of Statute of Limitations | (6.5) |  |  | (2.6) |
Balance as of December 31, 2020 | 61.8 |  |  | 25.8 |
Gross Increases - Current Year | 11.3 |  |  | 3.8 |
Gross Decreases - Prior Year | (0.3) |  |  | (0.6) |
Lapse of Statute of Limitations | (7.0) |  |  | (2.8) |
Balance as of December 31, 2021 | $ | 65.8 |  |  | $ | 26.2 |
Summary of Income Tax Examinations | 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

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