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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2022
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,
2022 |  | 2021 |  | 2020
Current Income Taxes: |  |  |  |  |
Federal | $ | 95.8 |  |  | $ | 21.5 |  |  | $ | 73.6 |
State | 13.6 |  |  | (21.6) |  |  | 19.1 |
Total Current | 109.4 |  |  | (0.1) |  |  | 92.7 |
Deferred Income Taxes, Net: |  |  |  |  |
Federal | 198.8 |  |  | 199.7 |  |  | 173.5 |
State | 148.0 |  |  | 147.4 |  |  | 83.7 |
Total Deferred | 346.8 |  |  | 347.1 |  |  | 257.2 |
Investment Tax Credits, Net | (2.6) |  |  | (2.8) |  |  | (3.7) |
Income Tax Expense | $ | 453.6 |  |  | $ | 344.2 |  |  | $ | 346.2 |
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
(Millions of Dollars) | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH
Current Income Taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | $ | 106.2 |  |  | $ | 55.0 |  |  | $ | 29.6 |  |  | $ | 15.0 |  |  | $ | 52.3 |  |  | $ | 43.1 |  |  | $ | 12.0 |  |  | $ | 53.9 |  |  | $ | 20.6 |
State | 20.1 |  |  | 8.7 |  |  | 5.9 |  |  | (7.0) |  |  | 6.2 |  |  | 10.8 |  |  | (6.1) |  |  | 6.9 |  |  | 3.8 |
Total Current | 126.3 |  |  | 63.7 |  |  | 35.5 |  |  | 8.0 |  |  | 58.5 |  |  | 53.9 |  |  | 5.9 |  |  | 60.8 |  |  | 24.4 |
Deferred Income Taxes, Net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | 17.2 |  |  | 35.6 |  |  | 5.9 |  |  | 76.3 |  |  | 16.3 |  |  | (14.9) |  |  | 101.1 |  |  | 33.8 |  |  | (1.3) |
State | 28.2 |  |  | 42.4 |  |  | 9.9 |  |  | 47.6 |  |  | 41.2 |  |  | 0.4 |  |  | 43.4 |  |  | 38.8 |  |  | 8.6 |
Total Deferred | 45.4 |  |  | 78.0 |  |  | 15.8 |  |  | 123.9 |  |  | 57.5 |  |  | (14.5) |  |  | 144.5 |  |  | 72.6 |  |  | 7.3 |
Investment Tax Credits, Net | (0.5) |  |  | (1.7) |  |  | — |  |  | (0.6) |  |  | (1.7) |  |  | — |  |  | (0.7) |  |  | (2.6) |  |  | — |
Income Tax Expense | $ | 171.2 |  |  | $ | 140.0 |  |  | $ | 51.3 |  |  | $ | 131.3 |  |  | $ | 114.3 |  |  | $ | 39.4 |  |  | $ | 149.7 |  |  | $ | 130.8 |  |  | $ | 31.7 |
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,
2022 |  | 2021 |  | 2020
Income Before Income Tax Expense | $ | 1,866.0 |  |  | $ | 1,572.3 |  |  | $ | 1,558.9 |
Statutory Federal Income Tax Expense at 21% | 391.9 |  |  | 330.2 |  |  | 327.4 |
Tax Effect of Differences: |  |  |  |  |
Depreciation | (17.1) |  |  | (18.1) |  |  | (11.1) |
Investment Tax Credit Amortization | (2.6) |  |  | (2.8) |  |  | (3.7) |
State Income Taxes, Net of Federal Impact | 75.9 |  |  | 54.4 |  |  | 44.9 |
Dividends on ESOP | (5.1) |  |  | (5.1) |  |  | (5.1) |
Tax Asset Valuation Allowance/Reserve Adjustments | 51.6 |  |  | 44.6 |  |  | 33.4 |
Excess Stock Benefit | (2.1) |  |  | (4.0) |  |  | (6.6) |
EDIT Amortization | (49.1) |  |  | (69.1) |  |  | (48.7) |
Other, Net | 10.2 |  |  | 14.1 |  |  | 15.7 |
Income Tax Expense | $ | 453.6 |  |  | $ | 344.2 |  |  | $ | 346.2 |
Effective Tax Rate | 24.3 | % |  | 21.9 | % |  | 22.2 | %
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
(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 | $ | 704.1 |  |  | $ | 632.4 |  |  | $ | 222.9 |  |  | $ | 533.0 |  |  | $ | 590.9 |  |  | $ | 189.8 |  |  | $ | 607.6 |  |  | $ | 575.8 |  |  | $ | 179.0 |
Statutory Federal Income Tax Expense at 21% | 147.9 |  |  | 132.8 |  |  | 46.8 |  |  | 111.9 |  |  | 124.1 |  |  | 39.9 |  |  | 127.6 |  |  | 120.9 |  |  | 37.6 |
Tax Effect of Differences: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation | (3.7) |  |  | (4.2) |  |  | 0.9 |  |  | (6.4) |  |  | (3.4) |  |  | (0.2) |  |  | 0.4 |  |  | (3.7) |  |  | (1.4) |
Investment Tax Credit Amortization | (0.5) |  |  | (1.7) |  |  | — |  |  | (0.6) |  |  | (1.7) |  |  | — |  |  | (0.7) |  |  | (2.6) |  |  | — |
State Income Taxes, Net of Federal Impact | (6.6) |  |  | 40.3 |  |  | 12.5 |  |  | (4.6) |  |  | 37.5 |  |  | 8.9 |  |  | (1.2) |  |  | 36.0 |  |  | 9.8 |
Tax Asset Valuation Allowance/Reserve Adjustments | 44.7 |  |  | — |  |  | — |  |  | 36.7 |  |  | — |  |  | — |  |  | 30.7 |  |  | — |  |  | — |
Excess Stock Benefit | (0.7) |  |  | (0.8) |  |  | (0.3) |  |  | (1.5) |  |  | (1.4) |  |  | (0.5) |  |  | (2.3) |  |  | (2.3) |  |  | (0.8) |
EDIT Amortization | (9.2) |  |  | (29.2) |  |  | (7.7) |  |  | (9.8) |  |  | (43.2) |  |  | (10.5) |  |  | (9.0) |  |  | (20.4) |  |  | (15.4) |
Other, Net | (0.7) |  |  | 2.8 |  |  | (0.9) |  |  | 5.6 |  |  | 2.4 |  |  | 1.8 |  |  | 4.2 |  |  | 2.9 |  |  | 1.9 |
Income Tax Expense | $ | 171.2 |  |  | $ | 140.0 |  |  | $ | 51.3 |  |  | $ | 131.3 |  |  | $ | 114.3 |  |  | $ | 39.4 |  |  | $ | 149.7 |  |  | $ | 130.8 |  |  | $ | 31.7 |
Effective Tax Rate | 24.3 | % |  | 22.1 | % |  | 23.0 | % |  | 24.6 | % |  | 19.3 | % |  | 20.8 | % |  | 24.6 | % |  | 22.7 | % |  | 17.7 | %
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,
| 2022 |  | 2021
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Deferred Tax Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee Benefits | $ | 228.9 |  |  | $ | 25.3 |  |  | $ | 57.4 |  |  | $ | 11.6 |  |  | $ | 270.8 |  |  | $ | 23.9 |  |  | $ | 40.3 |  |  | $ | 14.1 |
Derivative Liabilities | 53.8 |  |  | 53.8 |  |  | — |  |  | — |  |  | 76.8 |  |  | 76.8 |  |  | — |  |  | — |
Regulatory Deferrals - Liabilities | 529.5 |  |  | 146.6 |  |  | 285.7 |  |  | 42.1 |  |  | 390.7 |  |  | 90.9 |  |  | 215.4 |  |  | 24.3 |
Allowance for Uncollectible Accounts | 125.5 |  |  | 60.5 |  |  | 20.7 |  |  | 7.9 |  |  | 104.1 |  |  | 48.8 |  |  | 21.5 |  |  | 6.2 |
Tax Effect - Tax Regulatory Liabilities | 762.9 |  |  | 324.6 |  |  | 241.8 |  |  | 97.8 |  |  | 783.4 |  |  | 328.2 |  |  | 254.3 |  |  | 100.9 |
Net Operating Loss Carryforwards | 16.7 |  |  | — |  |  | — |  |  | — |  |  | 7.5 |  |  | — |  |  | — |  |  | — |
Purchase Accounting Adjustment | 62.0 |  |  | — |  |  | — |  |  | — |  |  | 67.2 |  |  | — |  |  | — |  |  | — |
Other | 176.6 |  |  | 109.5 |  |  | 20.5 |  |  | 21.3 |  |  | 196.6 |  |  | 103.9 |  |  | 21.7 |  |  | 22.9 |
Total Deferred Tax Assets | 1,955.9 |  |  | 720.3 |  |  | 626.1 |  |  | 180.7 |  |  | 1,897.1 |  |  | 672.5 |  |  | 553.2 |  |  | 168.4 |
Less: Valuation Allowance | 82.8 |  |  | 63.3 |  |  | — |  |  | — |  |  | 61.5 |  |  | 44.5 |  |  | — |  |  | — |
Net Deferred Tax Assets | $ | 1,873.1 |  |  | $ | 657.0 |  |  | $ | 626.1 |  |  | $ | 180.7 |  |  | $ | 1,835.6 |  |  | $ | 628.0 |  |  | $ | 553.2 |  |  | $ | 168.4 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accelerated Depreciation and Other Plant-Related Differences | $ | 4,793.7 |  |  | $ | 1,602.0 |  |  | $ | 1,643.7 |  |  | $ | 523.8 |  |  | $ | 4,426.0 |  |  | $ | 1,509.5 |  |  | $ | 1,553.7 |  |  | $ | 482.9 |
Property Tax Accruals | 95.3 |  |  | 40.7 |  |  | 41.3 |  |  | 6.7 |  |  | 88.1 |  |  | 40.5 |  |  | 33.7 |  |  | 6.3 |
Regulatory Amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory Deferrals - Assets | 1,251.9 |  |  | 406.4 |  |  | 407.9 |  |  | 165.2 |  |  | 1,260.3 |  |  | 438.3 |  |  | 337.6 |  |  | 198.4 |
Tax Effect - Tax Regulatory Assets | 271.7 |  |  | 185.6 |  |  | 10.7 |  |  | 7.9 |  |  | 257.8 |  |  | 181.4 |  |  | 10.9 |  |  | 8.3 |
Goodwill-related Regulatory Asset - 1999 Merger | 76.8 |  |  | — |  |  | 65.9 |  |  | — |  |  | 81.4 |  |  | — |  |  | 69.9 |  |  | — |
Employee Benefits | 305.5 |  |  | 45.0 |  |  | 140.8 |  |  | 18.7 |  |  | 174.7 |  |  | 3.5 |  |  | 107.1 |  |  | 0.7 |
Derivative Assets | 10.5 |  |  | 10.5 |  |  | — |  |  | — |  |  | 14.9 |  |  | 14.9 |  |  | — |  |  | — |
Other | 135.6 |  |  | 6.8 |  |  | 16.7 |  |  | 21.2 |  |  | 129.5 |  |  | 2.0 |  |  | 19.8 |  |  | 9.8 |
Total Deferred Tax Liabilities | $ | 6,941.0 |  |  | $ | 2,297.0 |  |  | $ | 2,327.0 |  |  | $ | 743.5 |  |  | $ | 6,432.7 |  |  | $ | 2,190.1 |  |  | $ | 2,132.7 |  |  | $ | 706.4 |
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,
| 2022 |  | 2021
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Expiration Range |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Expiration Range
State Net Operating Loss | $ | 288.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 2022 - 2041 |  | $ | 138.3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 2021 - 2040
State Tax Credit | 204.5 |  |  | 137.7 |  |  | — |  |  | — |  |  | 2022 - 2027 |  | 197.7 |  |  | 137.0 |  |  | — |  |  | — |  |  | 2021 - 2026
State Charitable Contribution | 20.1 |  |  | — |  |  | — |  |  | — |  |  | 2022 - 2026 |  | 23.7 |  |  | — |  |  | — |  |  | — |  |  | 2021 - 2025
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, 2020 | $ | 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 |
Gross Increases - Current Year | 11.5 |  |  | 3.5 |
Gross Decreases - Prior Year | (2.4) |  |  | (0.9) |
Lapse of Statute of Limitations | (7.8) |  |  | (3.3) |
Balance as of December 31, 2022 | $ | 67.1 |  |  | $ | 25.5 |
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, 2022:
Description | Tax Years
Federal | 2022
Connecticut | 2019 - 2022
Massachusetts | 2019 - 2022
New Hampshire | 2019 - 2022

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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