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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
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,
2023 |  | 2022 |  | 2021
Current Income Taxes: |  |  |  |  |
Federal | $ | 75.8 |  |  | $ | 95.8 |  |  | $ | 21.5 |
State | 0.6 |  |  | 13.6 |  |  | (21.6) |
Total Current | 76.4 |  |  | 109.4 |  |  | (0.1) |
Deferred Income Taxes, Net: |  |  |  |  |
Federal | (0.9) |  |  | 198.8 |  |  | 199.7 |
State | 86.3 |  |  | 148.0 |  |  | 147.4 |
Total Deferred | 85.4 |  |  | 346.8 |  |  | 347.1 |
Investment Tax Credits, Net | (2.1) |  |  | (2.6) |  |  | (2.8) |
Income Tax Expense | $ | 159.7 |  |  | $ | 453.6 |  |  | $ | 344.2 |
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
(Millions of Dollars) | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH
Current Income Taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | $ | (10.8) |  |  | $ | 50.7 |  |  | $ | (40.0) |  |  | $ | 106.2 |  |  | $ | 55.0 |  |  | $ | 29.6 |  |  | $ | 15.0 |  |  | $ | 52.3 |  |  | $ | 43.1 |
State | (2.3) |  |  | 7.8 |  |  | (20.0) |  |  | 20.1 |  |  | 8.7 |  |  | 5.9 |  |  | (7.0) |  |  | 6.2 |  |  | 10.8 |
Total Current | (13.1) |  |  | 58.5 |  |  | (60.0) |  |  | 126.3 |  |  | 63.7 |  |  | 35.5 |  |  | 8.0 |  |  | 58.5 |  |  | 53.9 |
Deferred Income Taxes, Net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | 130.3 |  |  | 50.1 |  |  | 81.2 |  |  | 17.2 |  |  | 35.6 |  |  | 5.9 |  |  | 76.3 |  |  | 16.3 |  |  | (14.9) |
State | 53.7 |  |  | 46.1 |  |  | 37.8 |  |  | 28.2 |  |  | 42.4 |  |  | 9.9 |  |  | 47.6 |  |  | 41.2 |  |  | 0.4 |
Total Deferred | 184.0 |  |  | 96.2 |  |  | 119.0 |  |  | 45.4 |  |  | 78.0 |  |  | 15.8 |  |  | 123.9 |  |  | 57.5 |  |  | (14.5) |
Investment Tax Credits, Net | — |  |  | (1.7) |  |  | — |  |  | (0.5) |  |  | (1.7) |  |  | — |  |  | (0.6) |  |  | (1.7) |  |  | — |
Income Tax Expense | $ | 170.9 |  |  | $ | 153.0 |  |  | $ | 59.0 |  |  | $ | 171.2 |  |  | $ | 140.0 |  |  | $ | 51.3 |  |  | $ | 131.3 |  |  | $ | 114.3 |  |  | $ | 39.4 |
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,
2023 |  | 2022 |  | 2021
(Loss)/Income Before Income Tax Expense | $ | (275.0) |  |  | $ | 1,866.0 |  |  | $ | 1,572.3 |
Statutory Federal Income Tax Expense at 21% | (57.7) |  |  | 391.9 |  |  | 330.2 |
Tax Effect of Differences: |  |  |  |  |
Depreciation | (25.8) |  |  | (17.1) |  |  | (18.1) |
Investment Tax Credit Amortization | (2.1) |  |  | (2.6) |  |  | (2.8) |
State Income Taxes, Net of Federal Impact | (11.4) |  |  | 75.9 |  |  | 54.4 |
Dividends on ESOP | (5.3) |  |  | (5.1) |  |  | (5.1) |
Tax Asset Valuation Allowance/Reserve Adjustments | 295.8 |  |  | 51.6 |  |  | 44.6 |
Tax Deficiency/(Excess Stock Benefit) | 0.5 |  |  | (2.1) |  |  | (4.0) |
EDIT Amortization | (51.5) |  |  | (49.1) |  |  | (69.1) |
Other, Net | 17.2 |  |  | 10.2 |  |  | 14.1 |
Income Tax Expense | $ | 159.7 |  |  | $ | 453.6 |  |  | $ | 344.2 |
Effective Tax Rate | (58.1) | % |  | 24.3 | % |  | 21.9 | %
.
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
(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 | $ | 689.6 |  |  | $ | 697.5 |  |  | $ | 254.7 |  |  | $ | 704.1 |  |  | $ | 632.4 |  |  | $ | 222.9 |  |  | $ | 533.0 |  |  | $ | 590.9 |  |  | $ | 189.8 |
Statutory Federal Income Tax Expense at 21% | 144.9 |  |  | 146.5 |  |  | 53.5 |  |  | 147.9 |  |  | 132.8 |  |  | 46.8 |  |  | 111.9 |  |  | 124.1 |  |  | 39.9 |
Tax Effect of Differences: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation | (5.6) |  |  | (8.8) |  |  | (1.0) |  |  | (3.7) |  |  | (4.2) |  |  | 0.9 |  |  | (6.4) |  |  | (3.4) |  |  | (0.2) |
Investment Tax Credit Amortization | — |  |  | (1.7) |  |  | — |  |  | (0.5) |  |  | (1.7) |  |  | — |  |  | (0.6) |  |  | (1.7) |  |  | — |
State Income Taxes, Net of Federal Impact | (10.7) |  |  | 42.5 |  |  | 14.1 |  |  | (6.6) |  |  | 40.3 |  |  | 12.5 |  |  | (4.6) |  |  | 37.5 |  |  | 8.9 |
Tax Asset Valuation Allowance/Reserve Adjustments | 51.3 |  |  | — |  |  | — |  |  | 44.7 |  |  | — |  |  | — |  |  | 36.7 |  |  | — |  |  | — |
Tax Deficiency/(Excess Stock Benefit) | 0.2 |  |  | 0.2 |  |  | 0.1 |  |  | (0.7) |  |  | (0.8) |  |  | (0.3) |  |  | (1.5) |  |  | (1.4) |  |  | (0.5) |
EDIT Amortization | (10.5) |  |  | (28.4) |  |  | (6.8) |  |  | (9.2) |  |  | (29.2) |  |  | (7.7) |  |  | (9.8) |  |  | (43.2) |  |  | (10.5) |
Other, Net | 1.3 |  |  | 2.7 |  |  | (0.9) |  |  | (0.7) |  |  | 2.8 |  |  | (0.9) |  |  | 5.6 |  |  | 2.4 |  |  | 1.8 |
Income Tax Expense | $ | 170.9 |  |  | $ | 153.0 |  |  | $ | 59.0 |  |  | $ | 171.2 |  |  | $ | 140.0 |  |  | $ | 51.3 |  |  | $ | 131.3 |  |  | $ | 114.3 |  |  | $ | 39.4 |
Effective Tax Rate | 24.8 | % |  | 21.9 | % |  | 23.2 | % |  | 24.3 | % |  | 22.1 | % |  | 23.0 | % |  | 24.6 | % |  | 19.3 | % |  | 20.8 | %
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,
| 2023 |  | 2022
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Deferred Tax Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee Benefits | $ | 244.5 |  |  | $ | 29.9 |  |  | $ | 66.8 |  |  | $ | 13.0 |  |  | $ | 228.9 |  |  | $ | 25.3 |  |  | $ | 57.4 |  |  | $ | 11.6 |
Derivative Liabilities | 33.0 |  |  | 33.0 |  |  | — |  |  | — |  |  | 53.8 |  |  | 53.8 |  |  | — |  |  | — |
Regulatory Deferrals - Liabilities | 452.0 |  |  | 94.4 |  |  | 291.5 |  |  | 23.8 |  |  | 529.5 |  |  | 146.6 |  |  | 285.7 |  |  | 42.1 |
Allowance for Uncollectible Accounts | 143.8 |  |  | 79.6 |  |  | 21.5 |  |  | 3.9 |  |  | 125.5 |  |  | 60.5 |  |  | 20.7 |  |  | 7.9 |
Tax Effect - Tax Regulatory Liabilities | 739.0 |  |  | 320.7 |  |  | 227.1 |  |  | 95.5 |  |  | 762.9 |  |  | 324.6 |  |  | 241.8 |  |  | 97.8 |
Net Operating Loss Carryforwards | 13.8 |  |  | — |  |  | — |  |  | — |  |  | 16.7 |  |  | — |  |  | — |  |  | — |
Purchase Accounting Adjustment | 56.7 |  |  | — |  |  | — |  |  | — |  |  | 62.0 |  |  | — |  |  | — |  |  | — |
Equity Method Wind Investments | 584.9 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | 200.1 |  |  | 125.3 |  |  | 25.0 |  |  | 23.4 |  |  | 176.6 |  |  | 109.5 |  |  | 20.5 |  |  | 21.3 |
Total Deferred Tax Assets | 2,467.8 |  |  | 682.9 |  |  | 631.9 |  |  | 159.6 |  |  | 1,955.9 |  |  | 720.3 |  |  | 626.1 |  |  | 180.7 |
Less: Valuation Allowance (1) | 328.1 |  |  | 80.6 |  |  | — |  |  | — |  |  | 82.8 |  |  | 63.3 |  |  | — |  |  | — |
Net Deferred Tax Assets | $ | 2,139.7 |  |  | $ | 602.3 |  |  | $ | 631.9 |  |  | $ | 159.6 |  |  | $ | 1,873.1 |  |  | $ | 657.0 |  |  | $ | 626.1 |  |  | $ | 180.7 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accelerated Depreciation and Other Plant-Related Differences | $ | 5,103.3 |  |  | $ | 1,703.4 |  |  | $ | 1,728.6 |  |  | $ | 566.5 |  |  | $ | 4,793.7 |  |  | $ | 1,602.0 |  |  | $ | 1,643.7 |  |  | $ | 523.8 |
Property Tax Accruals | 95.0 |  |  | 42.0 |  |  | 39.8 |  |  | 6.3 |  |  | 95.3 |  |  | 40.7 |  |  | 41.3 |  |  | 6.7 |
Regulatory Amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory Deferrals - Assets | 1,512.3 |  |  | 470.0 |  |  | 474.5 |  |  | 250.3 |  |  | 1,251.9 |  |  | 406.4 |  |  | 407.9 |  |  | 165.2 |
Tax Effect - Tax Regulatory Assets | 284.0 |  |  | 191.9 |  |  | 10.5 |  |  | 8.3 |  |  | 271.7 |  |  | 185.6 |  |  | 10.7 |  |  | 7.9 |
Goodwill-related Regulatory Asset - 1999 Merger | 72.2 |  |  | — |  |  | 61.9 |  |  | — |  |  | 76.8 |  |  | — |  |  | 65.9 |  |  | — |
Employee Benefits | 282.0 |  |  | 38.8 |  |  | 146.7 |  |  | 16.8 |  |  | 305.5 |  |  | 45.0 |  |  | 140.8 |  |  | 18.7 |
Derivative Assets | 6.4 |  |  | 6.4 |  |  | — |  |  | — |  |  | 10.5 |  |  | 10.5 |  |  | — |  |  | — |
Other | 88.2 |  |  | 9.9 |  |  | 19.5 |  |  | 2.9 |  |  | 135.6 |  |  | 6.8 |  |  | 16.7 |  |  | 21.2 |
Total Deferred Tax Liabilities | $ | 7,443.4 |  |  | $ | 2,462.4 |  |  | $ | 2,481.5 |  |  | $ | 851.1 |  |  | $ | 6,941.0 |  |  | $ | 2,297.0 |  |  | $ | 2,327.0 |  |  | $ | 743.5 |
(1) As of December 31, 2023, the Eversource Valuation Allowance of $328.1 million includes $224.0 million related to the impairment of Eversource’s offshore wind investments.
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,
| 2023 |  | 2022
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Expiration Range |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Expiration Range
State Net Operating Loss | $ | 243.4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 2023 - 2041 |  | $ | 288.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 2022 - 2041
State Tax Credit | 228.5 |  |  | 157.5 |  |  | — |  |  | — |  |  | 2023 - 2028 |  | 204.5 |  |  | 137.7 |  |  | — |  |  | — |  |  | 2022 - 2027
State Charitable Contribution | 7.9 |  |  | — |  |  | — |  |  | — |  |  | 2023 - 2027 |  | 20.1 |  |  | — |  |  | — |  |  | — |  |  | 2022 - 2026
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, 2021 | $ | 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 |
Gross Increases - Current Year | 23.4 |  |  | 4.0 |
Gross Increases - Prior Year | 0.1 |  |  | 0.1 |
Gross Decreases - Prior Year | (0.1) |  |  | — |
Lapse of Statute of Limitations | (9.2) |  |  | (3.8) |
Balance as of December 31, 2023 | $ | 81.3 |  |  | $ | 25.8 |
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, 2023:
Description | Tax Years
Federal | 2023
Connecticut | 2020 - 2023
Massachusetts | 2020 - 2023
New Hampshire | 2020 - 2023

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