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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended
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Sep. 30, 2023
Accounting Policies [Abstract] |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 EGMA (natural gas utilities), and Aquarion (water utilities). Eversource provides energy delivery and/or water service to approximately 4.4 million electric, natural gas and water customers through twelve regulated utilities in Connecticut, Massachusetts and New Hampshire. 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 2022 Form 10-K, which was filed with the SEC on February 15, 2023. 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, 2023 and December 31, 2022, and the results of operations, comprehensive income and common shareholders' equity for the three and nine months ended September 30, 2023 and 2022, and the cash flows for the nine months ended September 30, 2023 and 2022. The results of operations and comprehensive income for the three and nine months ended September 30, 2023 and 2022 and the cash flows for the nine months ended September 30, 2023 and 2022 are not necessarily indicative of the results expected for a full year. CYAPC and YAEC are inactive regional nuclear power companies engaged in the long-term storage of their spent nuclear fuel. Eversource consolidates the operations of 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. Certain reclassifications of prior period data were made in the accompanying financial statements to conform to the current period presentation. B. 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). The current expected credit loss (CECL) model is 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 an aging-based quantitative assessment that applies an estimated uncollectible percentage to each receivable aging category. Factors in determining credit loss include historical collection, write-off experience, analysis of delinquency statistics, and management's assessment of collectability from customers, including current economic conditions, customer payment trends, the impact on customer bills because of energy usage trends and changes in rates, flexible payment plans and financial hardship arrearage management programs being offered to customers, reasonable forecasts, and expectations of future collectability and collection efforts. Management continuously assesses the collectability of receivables and adjusts estimates based on actual experience and future expectations based on economic conditions, 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. Management concluded that the reserve balance as of September 30, 2023 adequately reflected the collection risk and net realizable value for its receivables. As of both September 30, 2023 and December 31, 2022, the total amount incurred as a result of COVID-19 included in the allowance for uncollectible accounts was $50.9 million at Eversource, $16.0 million at CL&P, and $4.1 million at NSTAR Electric. At our Connecticut and Massachusetts utilities, the 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 future rates. No COVID-19 related uncollectible amounts were deferred at PSNH as a result of a July 2021 NHPUC order. Based on the status of our COVID-19 regulatory dockets, policies and practices in the jurisdictions in which we operate, we believe the state regulatory commissions in Connecticut and Massachusetts will allow us to recover our incremental uncollectible customer receivable costs associated with COVID-19. 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, NSTAR Gas and EGMA 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. Management uses a higher credit risk profile for this pool of trade receivables as compared to non-hardship receivables. The allowance for uncollectible hardship accounts is included in the total uncollectible allowance balance. 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 as of September 30 th is as follows:
| Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
(Millions of Dollars) | Hardship Accounts |  | Retail (Non-Hardship), Wholesale, and Other |  | Total Allowance |  | Hardship Accounts |  | Retail (Non-Hardship), Wholesale, and Other |  | Total Allowance |  | Hardship Accounts |  | Retail (Non-Hardship), Wholesale, and Other |  | Total Allowance |  | Total Allowance (2)
Three Months Ended 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance | $ | 338.2 |  |  | $ | 194.2 |  |  | $ | 532.4 |  |  | $ | 226.5 |  |  | $ | 36.3 |  |  | $ | 262.8 |  |  | $ | 45.6 |  |  | $ | 52.2 |  |  | $ | 97.8 |  |  | $ | 12.7 |
Uncollectible Expense | — |  |  | 16.8 |  |  | 16.8 |  |  | — |  |  | 2.4 |  |  | 2.4 |  |  | — |  |  | 5.2 |  |  | 5.2 |  |  | 2.0 |
Uncollectible Costs Deferred (1) | 33.9 |  |  | 14.0 |  |  | 47.9 |  |  | 29.4 |  |  | 3.1 |  |  | 32.5 |  |  | 3.4 |  |  | 4.5 |  |  | 7.9 |  |  | 1.1 |
Write-Offs | (17.5) |  |  | (40.4) |  |  | (57.9) |  |  | (14.9) |  |  | (7.6) |  |  | (22.5) |  |  | 0.1 |  |  | (11.5) |  |  | (11.4) |  |  | (3.6) |
Recoveries Collected | 0.2 |  |  | 3.3 |  |  | 3.5 |  |  | 0.2 |  |  | 0.9 |  |  | 1.1 |  |  | — |  |  | 1.3 |  |  | 1.3 |  |  | 0.2 |
Ending Balance | $ | 354.8 |  |  | $ | 187.9 |  |  | $ | 542.7 |  |  | $ | 241.2 |  |  | $ | 35.1 |  |  | $ | 276.3 |  |  | $ | 49.1 |  |  | $ | 51.7 |  |  | $ | 100.8 |  |  | $ | 12.4 |
Nine Months Ended 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance | $ | 284.4 |  |  | $ | 201.9 |  |  | $ | 486.3 |  |  | $ | 188.9 |  |  | $ | 36.4 |  |  | $ | 225.3 |  |  | $ | 43.7 |  |  | $ | 51.3 |  |  | $ | 95.0 |  |  | $ | 29.2 |
Uncollectible Expense | — |  |  | 40.9 |  |  | 40.9 |  |  | — |  |  | 7.1 |  |  | 7.1 |  |  | — |  |  | 13.0 |  |  | 13.0 |  |  | 1.5 |
Uncollectible Costs Deferred (1) | 104.7 |  |  | 22.8 |  |  | 127.5 |  |  | 80.3 |  |  | 9.3 |  |  | 89.6 |  |  | 5.8 |  |  | 13.8 |  |  | 19.6 |  |  | (11.1) |
Write-Offs | (35.3) |  |  | (88.5) |  |  | (123.8) |  |  | (29.0) |  |  | (21.3) |  |  | (50.3) |  |  | (0.4) |  |  | (30.4) |  |  | (30.8) |  |  | (7.8) |
Recoveries Collected | 1.0 |  |  | 10.8 |  |  | 11.8 |  |  | 1.0 |  |  | 3.6 |  |  | 4.6 |  |  | — |  |  | 4.0 |  |  | 4.0 |  |  | 0.6 |
Ending Balance | $ | 354.8 |  |  | $ | 187.9 |  |  | $ | 542.7 |  |  | $ | 241.2 |  |  | $ | 35.1 |  |  | $ | 276.3 |  |  | $ | 49.1 |  |  | $ | 51.7 |  |  | $ | 100.8 |  |  | $ | 12.4 |
| Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
(Millions of Dollars) | Hardship Accounts |  | Retail (Non-Hardship), Wholesale, and Other |  | Total Allowance |  | Hardship Accounts |  | Retail (Non-Hardship), Wholesale, and Other |  | Total Allowance |  | Hardship Accounts |  | Retail (Non-Hardship), Wholesale, and Other |  | Total Allowance |  | Total Allowance
Three Months Ended 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance | $ | 242.7 |  |  | $ | 215.1 |  |  | $ | 457.8 |  |  | $ | 152.1 |  |  | $ | 40.6 |  |  | $ | 192.7 |  |  | $ | 45.0 |  |  | $ | 55.5 |  |  | $ | 100.5 |  |  | $ | 27.3 |
Uncollectible Expense | — |  |  | 10.7 |  |  | 10.7 |  |  | — |  |  | 4.1 |  |  | 4.1 |  |  | — |  |  | 3.5 |  |  | 3.5 |  |  | 3.5 |
Uncollectible Costs Deferred (1) | 15.6 |  |  | 9.4 |  |  | 25.0 |  |  | 11.3 |  |  | 2.0 |  |  | 13.3 |  |  | 2.8 |  |  | 4.0 |  |  | 6.8 |  |  | 0.1 |
Write-Offs | (6.5) |  |  | (33.2) |  |  | (39.7) |  |  | (5.0) |  |  | (7.7) |  |  | (12.7) |  |  | (0.3) |  |  | (12.3) |  |  | (12.6) |  |  | (2.3) |
Recoveries Collected | 0.3 |  |  | 3.5 |  |  | 3.8 |  |  | 0.2 |  |  | 1.0 |  |  | 1.2 |  |  | — |  |  | 1.3 |  |  | 1.3 |  |  | 0.2 |
Ending Balance | $ | 252.1 |  |  | $ | 205.5 |  |  | $ | 457.6 |  |  | $ | 158.6 |  |  | $ | 40.0 |  |  | $ | 198.6 |  |  | $ | 47.5 |  |  | $ | 52.0 |  |  | $ | 99.5 |  |  | $ | 28.8 |
Nine Months Ended 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance | $ | 226.1 |  |  | $ | 191.3 |  |  | $ | 417.4 |  |  | $ | 144.6 |  |  | $ | 36.7 |  |  | $ | 181.3 |  |  | $ | 43.3 |  |  | $ | 53.7 |  |  | $ | 97.0 |  |  | $ | 24.3 |
Uncollectible Expense | — |  |  | 40.8 |  |  | 40.8 |  |  | — |  |  | 10.8 |  |  | 10.8 |  |  | — |  |  | 12.2 |  |  | 12.2 |  |  | 8.1 |
Uncollectible Costs Deferred (1) | 38.0 |  |  | 36.7 |  |  | 74.7 |  |  | 22.3 |  |  | 2.0 |  |  | 24.3 |  |  | 4.9 |  |  | 11.8 |  |  | 16.7 |  |  | 1.2 |
Write-Offs | (13.5) |  |  | (76.3) |  |  | (89.8) |  |  | (9.4) |  |  | (14.4) |  |  | (23.8) |  |  | (0.7) |  |  | (30.6) |  |  | (31.3) |  |  | (5.4) |
Recoveries Collected | 1.5 |  |  | 13.0 |  |  | 14.5 |  |  | 1.1 |  |  | 4.9 |  |  | 6.0 |  |  | — |  |  | 4.9 |  |  | 4.9 |  |  | 0.6 |
Ending Balance | $ | 252.1 |  |  | $ | 205.5 |  |  | $ | 457.6 |  |  | $ | 158.6 |  |  | $ | 40.0 |  |  | $ | 198.6 |  |  | $ | 47.5 |  |  | $ | 52.0 |  |  | $ | 99.5 |  |  | $ | 28.8 |
(1) These expected credit losses are deferred as regulatory costs on the balance sheets, as these amounts are ultimately recovered in rates. Amounts include uncollectible costs for hardship accounts and other customer receivables, including uncollectible amounts related to uncollectible energy supply costs and COVID-19. The increase in the allowance for uncollectible hardship accounts in 2023 at Eversource and CL&P primarily relates to increased customer enrollment in disconnection prevention programs in Connecticut. (2) In connection with PSNH’s pole purchase agreement on May 1, 2023, the purchase price included the forgiveness of previously reserved receivables for reimbursement of operation and maintenance and vegetation management costs. C. 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 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, equity method investments, AROs, and in the valuation of business combinations and asset acquisitions. The fair value measurement guidance was also applied in estimating the 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. Determination of Fair Value: The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 1E, “Summary of Significant Accounting Policies - Investments in Unconsolidated Affiliates,” Note 4, "Derivative Instruments," Note 5, "Marketable Securities," and Note 10, "Fair Value of Financial Instruments," to the financial statements. D. Other Income, Net The components of Other Income, Net on the statements of income were as follows:
| For the Three Months Ended
| September 30, 2023 |  | September 30, 2022
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion | $ | 28.5 |  |  | $ | 7.0 |  |  | $ | 12.9 |  |  | $ | 3.7 |  |  | $ | 55.3 |  |  | $ | 16.2 |  |  | $ | 21.6 |  |  | $ | 6.8 |
AFUDC Equity | 21.0 |  |  | 5.2 |  |  | 12.5 |  |  | 1.6 |  |  | 12.6 |  |  | 3.7 |  |  | 6.5 |  |  | 0.7 |
Equity in Earnings of Unconsolidated Affiliates | 2.7 |  |  | — |  |  | 0.1 |  |  | — |  |  | 3.8 |  |  | — |  |  | 0.1 |  |  | — |
Investment Income | 2.7 |  |  | 1.5 |  |  | 0.7 |  |  | 0.4 |  |  | 1.3 |  |  | 0.2 |  |  | 0.4 |  |  | 0.2 |
Interest Income | 24.1 |  |  | 4.6 |  |  | 13.6 |  |  | 1.5 |  |  | 14.1 |  |  | 1.8 |  |  | 9.2 |  |  | 0.4 |
Other | 0.1 |  |  | — |  |  | 0.1 |  |  | — |  |  | 2.7 |  |  | — |  |  | 0.1 |  |  | — |
Total Other Income, Net | $ | 79.1 |  |  | $ | 18.3 |  |  | $ | 39.9 |  |  | $ | 7.2 |  |  | $ | 89.8 |  |  | $ | 21.9 |  |  | $ | 37.9 |  |  | $ | 8.1 |
| For the Nine Months Ended
| September 30, 2023 |  | September 30, 2022
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Pension, SERP and PBOP Non-Service Income Components, Net of Deferred Portion | $ | 96.6 |  |  | $ | 24.9 |  |  | $ | 41.7 |  |  | $ | 11.8 |  |  | $ | 164.5 |  |  | $ | 48.3 |  |  | $ | 64.0 |  |  | $ | 20.1 |
AFUDC Equity | 55.5 |  |  | 13.9 |  |  | 34.0 |  |  | 3.4 |  |  | 33.7 |  |  | 9.3 |  |  | 17.5 |  |  | 1.7 |
Equity in Earnings of Unconsolidated Affiliates (1) | 11.5 |  |  | — |  |  | 0.3 |  |  | — |  |  | 20.8 |  |  | — |  |  | 0.2 |  |  | — |
Investment (Loss)/Income | (0.4) |  |  | (0.2) |  |  | 0.5 |  |  | — |  |  | 2.4 |  |  | (0.9) |  |  | 0.6 |  |  | 0.5 |
Interest Income | 68.6 |  |  | 8.0 |  |  | 44.0 |  |  | 3.6 |  |  | 30.3 |  |  | 4.6 |  |  | 18.8 |  |  | 1.1 |
Other (1) | 31.2 |  |  | — |  |  | 0.2 |  |  | 0.4 |  |  | 3.6 |  |  | — |  |  | 0.3 |  |  | — |
Total Other Income, Net | $ | 263.0 |  |  | $ | 46.6 |  |  | $ | 120.7 |  |  | $ | 19.2 |  |  | $ | 255.3 |  |  | $ | 61.3 |  |  | $ | 101.4 |  |  | $ | 23.4 |
(1) Eversource’s equity method investment in a renewable energy fund was liquidated in March 2023. Liquidation proceeds in excess of the carrying value were recorded in 2023 within Other in the table above. See Note 1E, "Summary of Significant Accounting Policies - Investments in Unconsolidated Affiliates," for further information. For the nine months ended September 30, 2022, pre-tax income of $12.2 million associated with this investment was included in Equity in Earnings of Unconsolidated Affiliates within Other Income, Net in the table above. E. Investments in Unconsolidated Affiliates Investments in entities that are not consolidated are included in long-term assets on the balance sheets and earnings impacts from these equity investments are included in Other Income, Net on the statements of income. Eversource's investments included the following:
|  |  | Investment Balance
(Millions of Dollars) | Ownership Interest |  | As of September 30, 2023 |  | As of December 31, 2022
Offshore Wind Business | 50 | % |  | $ | 2,578.6 |  |  | $ | 1,947.1 |
Natural Gas Pipeline - Algonquin Gas Transmission, LLC | 15 | % |  | 116.8 |  |  | 118.8 |
Renewable Energy Investment Fund | 90 | % |  | — |  |  | 84.1 |
Other | various |  | 28.5 |  |  | 26.1 |
Total Investments in Unconsolidated Affiliates |  |  | $ | 2,723.9 |  |  | $ | 2,176.1 |
Equity method investments are assessed for impairment when conditions exist that indicate that the fair value of the investment is less than book value. Eversource continually monitors and evaluates its equity method investments to determine if there are indicators of an other-than-temporary impairment. If the decline in value is considered to be other-than-temporary, the investment is written down to its estimated fair value, which establishes a new cost basis in the investment. Impairment evaluations involve a significant degree of judgment and estimation, including identifying circumstances that indicate an impairment may exist at the equity method investment level, selecting discount rates used to determine fair values, and developing an estimate of discounted future cash flows expected from investment operations or the sale of the investment. Offshore Wind Business: Eversource’s offshore wind business includes 50 percent ownership interests in North East Offshore and South Fork Class B Member, LLC, which collectively hold PPAs for the Revolution Wind and South Fork Wind projects and an Offshore Wind Renewable Energy Certificate (OREC) contract for the Sunrise Wind project. Eversource’s offshore wind business also includes a tax equity investment in South Fork Wind through a 100 percent ownership in South Fork Wind Holdings, LLC Class A shares. The offshore wind projects are being developed and constructed through joint and equal partnerships with Ørsted. On May 25, 2023, Eversource announced that it had completed the strategic review of its offshore wind investment portfolio and determined that it would continue to pursue the sale of its offshore wind investment. The sale process of Eversource’s existing 50 percent interest in its three jointly-owned, contracted offshore wind projects continues to progress, and Eversource anticipates an announcement in the near term. On September 7, 2023, Eversource completed the sale of its 50 percent interest in an uncommitted lease area consisting of approximately 175,000 developable acres located 25 miles off the south coast of Massachusetts to Ørsted for $625 million in an all-cash transaction. Eversource and Ørsted had entered into the purchase and sale agreement of this uncommitted lease area on May 25, 2023. In September of 2023, Eversource and Ørsted executed a Tax Equity Capital Contribution Agreement for South Fork Wind and funded this tax equity investment. Eversource made a contribution of $528 million using the proceeds from the lease area sale to provide tax equity for South Fork Wind through this new tax equity member interest. In exchange for its investment, Eversource expects to receive investment tax credits as turbines are placed in service for South Fork Wind. These credits will be utilized to reduce Eversource’s federal tax liability, including refunds expected over the next twelve to eighteen months. South Fork Wind is expected to be fully in-service in early 2024. In the second quarter of 2023, in connection with the conclusion of the strategic review, Eversource evaluated its aggregate investment in the projects, uncommitted lease area, and other related capitalized costs and determined that the carrying value of the equity method offshore wind investment exceeded the fair value of the investment and that the decline was other-than-temporary. The estimate of fair value was based on future cash flows arising from the expected sale price of Eversource’s 50 percent interest in the three contracted projects based on the most recent bid value, the sale price of the uncommitted lease area included in the purchase and sale agreement, expected investment tax credits and potential investment tax credit adder amounts, and the value of the tax equity ownership interest. As a result, Eversource recognized a pre-tax other-than-temporary impairment charge of $401.0 million ($331.0 million after-tax, which includes the impact of a $40 million valuation allowance for federal and state capital loss carryforwards) in the second quarter of 2023. The impairment evaluation involved judgments in developing the estimate and timing of future cash flows arising from the anticipated sale transactions, including future project spending amounts that could reduce the ultimate sales value, expected ability to qualify the Revolution Wind and Sunrise Wind projects for investment tax credit adders, the expectation of improved Sunrise Wind OREC contract value, and the selection of the discount rate used to determine fair value, all of which are Level 3 fair value measurements. The assumptions used in the discounted cash flow analysis are subject to inherent uncertainties and subjectivity. The use of different assumptions, estimates, or judgments with respect to the estimation of future cash flows could materially increase the impairment charge. The impairment evaluation was based on best information available at the impairment assessment date. Management evaluated its investment as of September 30, 2023 and concluded that, considering all facts and circumstances as of that date, there were no impairment triggering events in the third quarter of 2023. Accordingly, no additional impairment charge was applicable. The impairment valuation model includes a key judgment of future cash flows from the sale of the Sunrise Wind project of up to $450 million, which was based on the expectation of a successful repricing of the Sunrise Wind OREC contract. In June 2023, Sunrise Wind had filed a petition with the New York State Public Service Commission for an order authorizing NYSERDA to amend the Sunrise Wind OREC contract to incorporate interconnection costs and to provide for inflation adjustments. This value for Sunrise Wind was assessed through September 30, 2023, assuming that the contract repricing would be successful given NYSERDA’s public support for pricing adjustments. On October 12, 2023, the New York State Public Service Commission denied this petition. New York is in the process of establishing an expedited offshore wind renewable energy solicitation, with NYSERDA issuing a request for information to potential bidders on October 26, 2023. Eversource and Ørsted are evaluating the next steps in this re-bidding process. Given the unfavorable development on the OREC pricing denial in the fourth quarter of 2023, Eversource will evaluate the project’s next steps and probability of success in the New York re-bidding process. It is possible that adverse developments could impact the fair value of Sunrise Wind and could result in a significant impairment in a future period. Another key assumption in the impairment model of our offshore wind investment was investment tax credit (“ITC”) adders that were included in the Inflation Reduction Act. An ITC adder is an additional 10 percent of credit value for ITC eligible costs and include two distinct qualifications related to either using domestic sourced materials (domestic content) or construction of an onshore substation in a designated community (energy communities). Similar to the base ITC of 30 percent of the eligible costs, any ITC adders generated would be used to reduce Eversource’s current federal tax liability and could be used to receive tax refunds from prior years as well. Management estimated in the second quarter of 2023 that it would be able to realize a 10 percent ITC adder for both the Sunrise Wind and Revolution Wind projects, which is a total expected value of approximately $400 million. There is uncertainty at this time as to whether or not those ITC adders can be achieved, and management continues to evaluate the project’s qualifications and to monitor guidance issued by the United States Treasury Department. A change in the expected value or qualification of ITC adders could result in a significant impairment in a future period. The three contracted offshore wind projects also are facing construction and scheduling related pressures, which may cause additional required capital contributions from Eversource that are not factored into the expected sales price. It is possible that these future spending amounts could result in a significant impairment charge in a future period. Management will continue to monitor and evaluate all facts and circumstances in the offshore wind sales process and the impact on its investment balance. The fair value of the investment will be updated based on changes in critical assumptions, the final sales price, and final sales terms. It is possible that there will be changes in our expectations of the timing of the sale of our three projects. Adverse changes in facts and circumstances of estimates and timing of future cash flows and the factors described above could result in the recognition of additional, significant impairment charges and could be material to the financial statements. The impairment charge was a non-cash charge and did not impact Eversource’s cash position. Eversource will continue to make future cash expenditures for required cash contributions to its offshore wind investment up to the time of the sale of the offshore wind projects. Proceeds from the transaction will be used to pay off parent company debt. Eversource’s expected sale of its offshore wind investment does not impact the presentation of the September 30, 2023 financial statements. Proceeds received from the sale of the uncommitted lease area and the contribution for the tax equity investment in South Fork Wind, along with continued capital contributions in the offshore wind investment, are included in Investments in Unconsolidated Affiliates within investing activities on the statement of cash flows for the nine months ended September 30, 2023. Liquidation of Renewable Energy Investment Fund: On March 21, 2023, Eversource’s equity method investment in a renewable energy investment fund was liquidated by the fund’s general partner in accordance with the partnership agreement. Proceeds received from the liquidation totaled $147.0 million and are included in Investments in Unconsolidated Affiliates within investing activities on the statement of cash flows. Of this amount, $123.4 million was received in the first quarter of 2023, and $23.6 million was received from escrow in the second quarter of 2023. A portion of the proceeds was used to make a charitable contribution to the Eversource Energy Foundation (a related party) of $20.0 million in the first quarter of 2023. The liquidation benefit received in excess of the investment’s carrying value and the charitable contribution are included in Other Income, Net on the statement of income. 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, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Eversource | $ | 53.7 |  |  | $ | 52.9 |  |  | $ | 153.4 |  |  | $ | 146.0 |
CL&P | 50.2 |  |  | 49.2 |  |  | 132.2 |  |  | 126.0
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. 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, 2023 |  | As of September 30, 2022
Eversource | $ | 462.4 |  |  | $ | 394.1 |
CL&P | 86.3 |  |  | 96.7 |
NSTAR Electric | 135.9 |  |  | 94.5 |
PSNH | 71.9 |  |  | 49.7 |
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, 2023 |  | As of December 31, 2022
(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 | $ | 78.8 |  |  | $ | 9.8 |  |  | $ | 6.0 |  |  | $ | 33.9 |  |  | $ | 374.6 |  |  | $ | 11.3 |  |  | $ | 327.7 |  |  | $ | 0.1 |
Restricted cash included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special Deposits | 68.4 |  |  | 9.1 |  |  | 8.8 |  |  | 18.2 |  |  | 102.2 |  |  | 8.8 |  |  | 17.5 |  |  | 33.1 |
Marketable Securities | 16.2 |  |  | — |  |  | — |  |  | — |  |  | 25.4 |  |  | 0.2 |  |  | 0.1 |  |  | 0.4 |
Other Long-Term Assets | 17.5 |  |  | — |  |  | — |  |  | 3.2 |  |  | 19.6 |  |  | — |  |  | — |  |  | 3.2 |
Cash, Cash Equivalents and Restricted Cash as reported on the Statements of Cash Flows | $ | 180.9 |  |  | $ | 18.9 |  |  | $ | 14.8 |  |  | $ | 55.3 |  |  | $ | 521.8 |  |  | $ | 20.3 |  |  | $ | 345.3 |  |  | $ | 36.8 |
Special Deposits represent cash collections related to the PSNH RRB customer charges that are held in trust, required ISO-NE cash deposits, cash held in escrow accounts, and CYAPC and YAEC cash balances. Special Deposits are included in Current Assets on the balance sheets. As of both September 30, 2023 and December 31, 2022, restricted cash included in Marketable Securities represented restricted trusts to fund CYAPC and YAEC's spent nuclear fuel storage obligations. As of December 31, 2022, restricted cash included in Marketable Securities also included money market funds held in trusts to fund certain non-qualified executive benefits. Restricted cash includes an Energy Relief Fund for energy efficiency and clean energy measures in the Merrimack Valley established under the terms of the EGMA 2020 settlement agreement. This restricted cash included $20.0 million recorded as short-term in Special Deposits as of both September 30, 2023 and December 31, 2022, and $14.3 million and $15.9 million recorded in Other Long-Term Assets on the balance sheets as of September 30, 2023 and December 31, 2022, respectively.

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