Edgar Filing: EVERSOURCE ENERGY

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q


x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the Quarterly Period Ended June 30, 2015
	or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from ____________ to ____________


Commission File Number	Registrant; State of Incorporation; Address; and Telephone Number	I.R.S. Employer Identification No.

1-5324	EVERSOURCE ENERGY (a Massachusetts voluntary association) 300 Cadwell Drive Springfield, Massachusetts 01104 Telephone: (413) 785-5871	04-2147929


0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY (a Connecticut corporation) 107 Selden Street Berlin, Connecticut 06037-1616 Telephone: (860) 665-5000	06-0303850


1-02301	NSTAR ELECTRIC COMPANY (a Massachusetts corporation) 800 Boylston Street Boston, Massachusetts 02199 Telephone: (617) 424-2000	04-1278810


1-6392	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE (a New Hampshire corporation) Energy Park 780 North Commercial Street Manchester, New Hampshire 03101-1134 Telephone: (603) 669-4000	02-0181050


0-7624	WESTERN MASSACHUSETTS ELECTRIC COMPANY (a Massachusetts corporation) 300 Cadwell Drive Springfield, Massachusetts 01104 Telephone: (413) 785-5871	04-1961130

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.


	Yes	No

	x	¨

Indicate by check mark whether the registrants have submitted electronically and posted on its corporate Web sites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).


	Yes	No

	x	¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer" and "large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):


	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer

Eversource Energy	x	¨	¨
The Connecticut Light and Power Company	¨	¨	x
NSTAR Electric Company	¨	¨	x
Public Service Company of New Hampshire	¨	¨	x
Western Massachusetts Electric Company	¨	¨	x

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):


	Yes	No

Eversource Energy	¨	x
The Connecticut Light and Power Company	¨	x
NSTAR Electric Company	¨	x
Public Service Company of New Hampshire	¨	x
Western Massachusetts Electric Company	¨	x

Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date:


Company - Class of Stock	Outstanding as of July 31, 2015
Eversource Energy Common shares, $5.00 par value	317,173,164 shares

The Connecticut Light and Power Company Common stock, $10.00 par value	6,035,205 shares

NSTAR Electric Company Common stock, $1.00 par value	100 shares

Public Service Company of New Hampshire Common stock, $1.00 par value	301 shares

Western Massachusetts Electric Company Common stock, $25.00 par value	434,653 shares

Eversource Energy holds all of the 6,035,205 shares, 100 shares, 301 shares, and 434,653 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company, respectively.

NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company each meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.

Eversource Energy, The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire, and Western Massachusetts Electric Company each separately file this combined Form 10-Q. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants.

GLOSSARY OF TERMS


The following is a glossary of abbreviations or acronyms that are found in this report:


Current or former Eversource Energy companies, segments or investments:
ES, Eversource or the Company	Eversource Energy and subsidiaries
ES parent or Eversource parent	Eversource Energy, a public utility holding company
ES parent and other companies	ES parent and other companies is comprised of ES parent, Eversource Service and other subsidiaries, which primarily includes our unregulated businesses, HWP Company, The Rocky River Realty Company (a real estate subsidiary), and the consolidated operations of CYAPC and YAEC
CL&P	The Connecticut Light and Power Company
NSTAR Electric	NSTAR Electric Company
PSNH	Public Service Company of New Hampshire
WMECO	Western Massachusetts Electric Company
NSTAR Gas	NSTAR Gas Company
Yankee Gas	Yankee Gas Services Company
ESTV	Eversource Energy Transmission Ventures, Inc., the parent company of NPT and Renewable Properties, Inc.
NPT	Northern Pass Transmission LLC
Eversource Service	Eversource Energy Service Company (effective January 1, 2014 includes the operations of NSTAR Electric & Gas)
NSTAR Electric & Gas	NSTAR Electric & Gas Corporation, a former Eversource Energy service company (effective January 1, 2014 merged into Eversource Energy Service Company)
CYAPC	Connecticut Yankee Atomic Power Company
MYAPC	Maine Yankee Atomic Power Company
YAEC	Yankee Atomic Electric Company
Yankee Companies	CYAPC, YAEC and MYAPC
Regulated companies	The ES Regulated companies, comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric, PSNH, and WMECO, the natural gas distribution businesses of Yankee Gas and NSTAR Gas, the generation activities of PSNH and WMECO, and NPT
Regulators:
DEEP	Connecticut Department of Energy and Environmental Protection
DOE	U.S. Department of Energy
DOER	Massachusetts Department of Energy Resources
DPU	Massachusetts Department of Public Utilities
EPA	U.S. Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
ISO-NE	ISO New England, Inc., the New England Independent System Operator
MA DEP	Massachusetts Department of Environmental Protection
NHPUC	New Hampshire Public Utilities Commission
PURA	Connecticut Public Utilities Regulatory Authority
SEC	U.S. Securities and Exchange Commission
SJC	Supreme Judicial Court of Massachusetts
Other Terms and Abbreviations:
AFUDC	Allowance For Funds Used During Construction
AOCI	Accumulated Other Comprehensive Income/(Loss)
ARO	Asset Retirement Obligation
C&LM	Conservation and Load Management
CfD	Contract for Differences
Clean Air Project	The construction of a wet flue gas desulphurization system, known as "scrubber technology," to reduce mercury emissions of the Merrimack coal-fired generation station in Bow, New Hampshire
CO₂	Carbon dioxide
CPSL	Capital Projects Scheduling List
CTA	Competitive Transition Assessment
CWIP	Construction Work in Progress
EPS	Earnings Per Share
ERISA	Employee Retirement Income Security Act of 1974
ES 2014 Form 10-K	The Eversource Energy and Subsidiaries 2014 combined Annual Report on Form 10-K as filed with the SEC
ESOP	Employee Stock Ownership Plan
ESPP	Employee Share Purchase Plan
FERC ALJ	FERC Administrative Law Judge
Fitch	Fitch Ratings
FMCC	Federally Mandated Congestion Charge
FTR	Financial Transmission Rights
GAAP	Accounting principles generally accepted in the United States of America
GSC	Generation Service Charge
GSRP	Greater Springfield Reliability Project
GWh	Gigawatt-Hours


HQ	Hydro-Québec, a corporation wholly owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada
HVDC	High voltage direct current
Hydro Renewable Energy	Hydro Renewable Energy, Inc., a wholly owned subsidiary of Hydro-Québec
IPP	Independent Power Producers
ISO-NE Tariff	ISO-NE FERC Transmission, Markets and Services Tariff
kV	Kilovolt
kW	Kilowatt (equal to one thousand watts)
kWh	Kilowatt-Hours (the basic unit of electricity energy equal to one kilowatt of power supplied for one hour)
LBR	Lost Base Revenue
LNG	Liquefied natural gas
LRS	Supplier of last resort service
MGP	Manufactured Gas Plant
MMBtu	One million British thermal units
Moody's	Moody's Investors Services, Inc.
MW	Megawatt
MWh	Megawatt-Hours
NEEWS	New England East-West Solution
Northern Pass	The high voltage direct current transmission line project from Canada into New Hampshire
NO_x	Nitrogen oxides
PAM	Pension and PBOP Rate Adjustment Mechanism
PBOP	Postretirement Benefits Other Than Pension
PBOP Plan	Postretirement Benefits Other Than Pension Plan that provides certain retiree health care benefits, primarily medical and dental, and life insurance benefits
PCRBs	Pollution Control Revenue Bonds
Pension Plan	Single uniform noncontributory defined benefit retirement plan
PPA	Pension Protection Act
RECs	Renewable Energy Certificates
Regulatory ROE	The average cost of capital method for calculating the return on equity related to the distribution and generation business segment excluding the wholesale transmission segment
ROE	Return on Equity
RRB	Rate Reduction Bond or Rate Reduction Certificate
RSUs	Restricted share units
S&P	Standard & Poor's Financial Services LLC
SBC	Systems Benefits Charge
SCRC	Stranded Cost Recovery Charge
SERP	Supplemental Executive Retirement Plans and non-qualified defined benefit retirement plans
SIP	Simplified Incentive Plan
SO₂	Sulfur dioxide
SS	Standard service
TCAM	Transmission Cost Adjustment Mechanism
TSA	Transmission Service Agreement
UI	The United Illuminating Company

EVERSOURCE ENERGY AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY
WESTERN MASSACHUSETTS ELECTRIC COMPANY

TABLE OF CONTENTS


	Page
PART I - FINANCIAL INFORMATION

ITEM 1 - Unaudited Condensed Consolidated Financial Statements for the Following Companies:
Eversource Energy and Subsidiaries (Unaudited)
Condensed Consolidated Balance Sheets	1
Condensed Consolidated Statements of Income	2
Condensed Consolidated Statements of Comprehensive Income	2
Condensed Consolidated Statements of Cash Flows	3

The Connecticut Light and Power Company (Unaudited)
Condensed Balance Sheets	4
Condensed Statements of Income	5
Condensed Statements of Comprehensive Income	5
Condensed Statements of Cash Flows	6

NSTAR Electric Company and Subsidiary (Unaudited)
Condensed Consolidated Balance Sheets	7
Condensed Consolidated Statements of Income	8
Condensed Consolidated Statements of Comprehensive Income	8
Condensed Consolidated Statements of Cash Flows	9

Public Service Company of New Hampshire and Subsidiary (Unaudited)
Condensed Consolidated Balance Sheets	10
Condensed Consolidated Statements of Income	11
Condensed Consolidated Statements of Comprehensive Income	11
Condensed Consolidated Statements of Cash Flows	12

Western Massachusetts Electric Company (Unaudited)
Condensed Balance Sheets	13
Condensed Statements of Income	14
Condensed Statements of Comprehensive Income	14
Condensed Statements of Cash Flows	15

Combined Notes to Condensed Consolidated Financial Statements (Unaudited)	16


ITEM 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations for the Following Companies:
Eversource Energy and Subsidiaries	31
The Connecticut Light and Power Company	45
NSTAR Electric Company and Subsidiary	48
Public Service Company of New Hampshire and Subsidiary	50
Western Massachusetts Electric Company	52

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk	54

ITEM 4 – Controls and Procedures	54

PART II – OTHER INFORMATION

ITEM 1 – Legal Proceedings	55

ITEM 1A – Risk Factors	55

ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds	55

ITEM 6 – Exhibits	56

SIGNATURES	58

iii


EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


			June 30,		December 31,
(Thousands of Dollars)			2015		2014

ASSETS

Current Assets:
		Cash and Cash Equivalents	$	36,469	$	38,703
		Receivables, Net		903,578		856,346
		Unbilled Revenues		205,155		211,758
		Taxes Receivable		117,792		337,307
		Fuel, Materials and Supplies		289,561		349,664
		Regulatory Assets		709,660		672,493
		Marketable Securities		124,830		124,173
		Prepayments and Other Current Assets		62,884		102,021
Total Current Assets				2,449,929		2,692,465

Property, Plant and Equipment, Net				19,079,189		18,647,041

Deferred Debits and Other Assets:
		Regulatory Assets		4,016,684		4,054,086
		Goodwill		3,519,401		3,519,401
		Marketable Securities		497,919		515,025
		Other Long-Term Assets		316,817		349,957
Total Deferred Debits and Other Assets				8,350,821		8,438,469

Total Assets			$	29,879,939	$	29,777,975

LIABILITIES AND CAPITALIZATION

Current Liabilities:
	Notes Payable		$	953,700	$	956,825
	Long-Term Debt - Current Portion			278,883		245,583
	Accounts Payable			598,716		868,231
	Regulatory Liabilities			208,510		235,022
	Accumulated Deferred Income Taxes			203,375		160,288
	Other Current Liabilities			595,801		668,432
Total Current Liabilities				2,838,985		3,134,381

Deferred Credits and Other Liabilities:
	Accumulated Deferred Income Taxes			4,606,159		4,467,473
	Regulatory Liabilities			510,807		515,144
	Derivative Liabilities			380,966		409,632
	Accrued Pension, SERP and PBOP			1,636,769		1,638,558
	Other Long-Term Liabilities			875,985		874,387
Total Deferred Credits and Other Liabilities				8,010,686		7,905,194

Capitalization:
	Long-Term Debt			8,689,647		8,606,017

	Noncontrolling Interest - Preferred Stock of Subsidiaries			155,568		155,568

	Equity:
	Common Shareholders' Equity:
		Common Shares		1,669,167		1,666,796
		Capital Surplus, Paid In		6,253,411		6,235,834
		Retained Earnings		2,644,485		2,448,661
		Accumulated Other Comprehensive Loss		(72,033)		(74,009)
		Treasury Stock		(309,977)		(300,467)
	Common Shareholders' Equity			10,185,053		9,976,815
Total Capitalization				19,030,268		18,738,400

Total Liabilities and Capitalization			$	29,879,939	$	29,777,975

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


				For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars, Except Share Information)				2015		2014		2015		2014

Operating Revenues				$	1,817,061	$	1,677,614	$	4,330,491	$	3,968,204

Operating Expenses:
	Purchased Power, Fuel and Transmission				685,118		624,211		1,847,167		1,602,362
	Operations and Maintenance				316,641		373,234		650,024		724,922
	Depreciation				163,668		152,207		327,505		303,014
	Amortization of Regulatory (Liabilities)/Assets, Net				(1,166)		(3,542)		59,438		54,356
	Energy Efficiency Programs				101,850		102,711		248,452		241,536
	Taxes Other Than Income Taxes				138,935		134,803		288,415		280,335
			Total Operating Expenses		1,405,046		1,383,624		3,421,001		3,206,525
Operating Income					412,015		293,990		909,490		761,679

Interest Expense:
	Interest on Long-Term Debt				88,021		87,491		175,735		174,868
	Other Interest				4,238		5,004		11,367		7,603
		Interest Expense			92,259		92,495		187,102		182,471
Other Income, Net					12,899		5,526		18,626		7,194
Income Before Income Tax Expense					332,655		207,021		741,014		586,402
Income Tax Expense					123,268		77,774		276,494		219,319
Net Income					209,387		129,247		464,520		367,083
Net Income Attributable to Noncontrolling Interests					1,880		1,880		3,759		3,759
Net Income Attributable to Controlling Interest				$	207,507	$	127,367	$	460,761	$	363,324

Basic and Diluted Earnings Per Common Share				$	0.65	$	0.40	$	1.45	$	1.15

Dividends Declared Per Common Share				$	0.42	$	0.39	$	0.84	$	0.79

Weighted Average Common Shares Outstanding:
	Basic				317,613,166		315,950,510		317,352,004		315,742,511
	Diluted				318,559,568		317,112,801		318,525,378		317,002,461


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.




CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Net Income				$	209,387	$	129,247	$	464,520	$	367,083
Other Comprehensive Income, Net of Tax:
	Qualified Cash Flow Hedging Instruments				509		510		1,018		1,019
	Changes in Unrealized (Losses)/Gains on Other Securities				(1,248)		218		(1,116)		458
	Changes in Funded Status of Pension, SERP and PBOP Benefit Plans				1,120		2,086		2,074		3,047
Other Comprehensive Income, Net of Tax					381		2,814		1,976		4,524
Comprehensive Income Attributable to Noncontrolling Interests					(1,880)		(1,880)		(3,759)		(3,759)
Comprehensive Income Attributable to Controlling Interest				$	207,888	$	130,181	$	462,737	$	367,848


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)



			For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014

Operating Activities:
	Net Income		$	464,520	$	367,083
	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
		Depreciation		327,505		303,014
		Deferred Income Taxes		176,800		133,149
		Pension, SERP and PBOP Expense		48,432		47,558
		Pension and PBOP Contributions		(31,032)		(40,640)
		Regulatory (Under)/Over Recoveries, Net		(73,547)		164,388
		Amortization of Regulatory Assets, Net		59,438		54,356
		Proceeds from DOE Damages Claim, Net		-		125,658
		Other		(48,247)		(9,359)
	Changes in Current Assets and Liabilities:
		Receivables and Unbilled Revenues, Net		(123,984)		(57,570)
		Fuel, Materials and Supplies		60,044		26,633
		Taxes Receivable/Accrued, Net		214,577		(62,900)
		Accounts Payable		(228,176)		(112,954)
		Other Current Assets and Liabilities, Net		9,226		(41,753)
Net Cash Flows Provided by Operating Activities				855,556		896,663

Investing Activities:
	Investments in Property, Plant and Equipment			(740,379)		(724,043)
	Proceeds from Sales of Marketable Securities			427,990		256,309
	Purchases of Marketable Securities			(408,242)		(257,168)
	Other Investing Activities			4,821		3,473
Net Cash Flows Used in Investing Activities				(715,810)		(721,429)

Financing Activities:
	Cash Dividends on Common Shares			(264,936)		(237,161)
	Cash Dividends on Preferred Stock			(3,759)		(3,759)
	Decrease in Notes Payable			(449,375)		(213,000)
	Issuance of Long-Term Debt			750,000		650,000
	Retirements of Long-Term Debt			(166,577)		(376,650)
	Other Financing Activities			(7,333)		(3,932)
Net Cash Flows Used in Financing Activities				(141,980)		(184,502)
Net Decrease in Cash and Cash Equivalents				(2,234)		(9,268)
Cash and Cash Equivalents - Beginning of Period				38,703		43,364
Cash and Cash Equivalents - End of Period			$	36,469	$	34,096

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)


			June 30,		December 31,
(Thousands of Dollars)			2015		2014

ASSETS

Current Assets:
		Cash	$	9,227	$	2,356
		Receivables, Net		395,863		355,140
		Accounts Receivable from Affiliated Companies		22,981		16,757
		Unbilled Revenues		103,767		102,137
		Taxes Receivable		-		116,148
		Regulatory Assets		263,713		220,344
		Materials and Supplies		50,357		46,664
		Prepayments and Other Current Assets		15,043		37,822
Total Current Assets				860,951		897,368

Property, Plant and Equipment, Net				6,934,618		6,809,664

Deferred Debits and Other Assets:
		Regulatory Assets		1,461,483		1,475,508
		Other Long-Term Assets		146,299		177,568
Total Deferred Debits and Other Assets				1,607,782		1,653,076

Total Assets			$	9,403,351	$	9,360,108

LIABILITIES AND CAPITALIZATION

Current Liabilities:
	Notes Payable to Eversource Parent		$	85,600	$	133,400
	Long-Term Debt - Current Portion			-		162,000
	Accounts Payable			208,860		272,971
	Accounts Payable to Affiliated Companies			58,227		65,594
	Obligations to Third Party Suppliers			67,844		73,624
	Regulatory Liabilities			122,617		124,722
	Derivative Liabilities			90,933		88,459
	Accumulated Deferred Income Taxes			46,811		34,073
	Other Current Liabilities			97,062		119,347
Total Current Liabilities				777,954		1,074,190

Deferred Credits and Other Liabilities:
	Accumulated Deferred Income Taxes			1,666,607		1,642,805
	Regulatory Liabilities			71,245		81,298
	Derivative Liabilities			380,196		406,199
	Accrued Pension, SERP and PBOP			286,131		273,854
	Other Long-Term Liabilities			144,983		148,844
Total Deferred Credits and Other Liabilities				2,549,162		2,553,000

Capitalization:
	Long-Term Debt			2,975,091		2,679,951

	Preferred Stock Not Subject to Mandatory Redemption			116,200		116,200

	Common Stockholder's Equity:
		Common Stock		60,352		60,352
		Capital Surplus, Paid In		1,805,638		1,804,869
		Retained Earnings		1,119,702		1,072,477
		Accumulated Other Comprehensive Loss		(748)		(931)
	Common Stockholder's Equity			2,984,944		2,936,767
Total Capitalization				6,076,235		5,732,918

Total Liabilities and Capitalization			$	9,403,351	$	9,360,108

The accompanying notes are an integral part of these unaudited condensed financial statements.


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)


			For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014		2015		2014

Operating Revenues			$	666,554	$	587,324	$	1,471,471	$	1,321,938

Operating Expenses:
	Purchased Power and Transmission			253,180		199,785		586,799		481,165
	Operations and Maintenance			118,687		131,762		236,044		241,276
	Depreciation			52,191		46,581		105,094		92,712
	Amortization of Regulatory (Liabilities)/Assets, Net			(7,530)		19,615		40,776		49,546
	Energy Efficiency Programs			33,963		35,296		76,770		77,991
	Taxes Other Than Income Taxes			62,102		62,159		130,181		129,111
		Total Operating Expenses		512,593		495,198		1,175,664		1,071,801
Operating Income				153,961		92,126		295,807		250,137

Interest Expense:
	Interest on Long-Term Debt			33,423		34,639		66,904		67,548
	Other Interest			2,701		2,831		5,844		4,165
		Interest Expense		36,124		37,470		72,748		71,713
Other Income, Net				4,062		3,130		6,221		4,202
Income Before Income Tax Expense				121,899		57,786		229,280		182,626
Income Tax Expense				43,129		20,401		81,276		65,942
Net Income			$	78,770	$	37,385	$	148,004	$	116,684



The accompanying notes are an integral part of these unaudited condensed financial statements.





CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Net Income			$	78,770	$	37,385	$	148,004	$	116,684
Other Comprehensive Income, Net of Tax:
	Qualified Cash Flow Hedging Instruments			111		111		222		222
	Changes in Unrealized (Losses)/Gains on Other Securities			(43)		7		(39)		15
Other Comprehensive Income, Net of Tax				68		118		183		237
Comprehensive Income			$	78,838	$	37,503	$	148,187	$	116,921



The accompanying notes are an integral part of these unaudited condensed financial statements.


THE CONNECTICUT LIGHT AND POWER COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)


			For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014

Operating Activities:
	Net Income		$	148,004	$	116,684
	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
	Depreciation			105,094		92,712
		Deferred Income Taxes		30,145		43,253
		Pension, SERP and PBOP Expense, Net of PBOP Contributions		7,079		5,973
		Regulatory (Under)/Over Recoveries, Net		(55,302)		18,156
		Amortization of Regulatory Assets, Net		40,776		49,546
		Proceeds from DOE Damages Claim		-		65,370
		Other		(2,432)		(3,428)
	Changes in Current Assets and Liabilities:
		Receivables and Unbilled Revenues, Net		(73,279)		(129,209)
		Taxes Receivable/Accrued, Net		123,051		27,679
		Accounts Payable		(55,192)		(26,995)
		Other Current Assets and Liabilities, Net		2,085		15,705
Net Cash Flows Provided by Operating Activities				270,029		275,446

Investing Activities:
	Investments in Property, Plant and Equipment			(242,346)		(221,365)
	Other Investing Activities			(1,362)		1,575
Net Cash Flows Used in Investing Activities				(243,708)		(219,790)

Financing Activities:
	Cash Dividends on Common Stock			(98,000)		(85,600)
	Cash Dividends on Preferred Stock			(2,779)		(2,779)
	Issuance of Long-Term Debt			300,000		250,000
	Retirements of Long-Term Debt			(162,000)		-
	Decrease in Notes Payable to Eversource Parent			(47,800)		(280,900)
	Capital Contribution from Eversource Parent			-		70,000
	Other Financing Activities			(8,871)		(3,128)
Net Cash Flows Used in Financing Activities				(19,450)		(52,407)
Net Increase in Cash				6,871		3,249
Cash - Beginning of Period				2,356		7,237
Cash - End of Period			$	9,227	$	10,486

The accompanying notes are an integral part of these unaudited condensed financial statements.


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


			June 30,		December 31,
(Thousands of Dollars)			2015		2014

ASSETS

Current Assets:
		Cash and Cash Equivalents	$	2,848	$	12,773
		Receivables, Net		288,581		234,481
		Accounts Receivable from Affiliated Companies		50,582		40,353
		Unbilled Revenues		41,294		29,741
		Taxes Receivable		43,940		144,601
		Materials and Supplies		56,584		74,179
		Regulatory Assets		258,489		198,710
		Prepayments and Other Current Assets		3,870		10,815
Total Current Assets				746,188		745,653

Property, Plant and Equipment, Net				5,451,668		5,335,436

Deferred Debits and Other Assets:
		Regulatory Assets		1,198,167		1,179,100
		Other Long-Term Assets		58,936		73,051
Total Deferred Debits and Other Assets				1,257,103		1,252,151

Total Assets			$	7,454,959	$	7,333,240

LIABILITIES AND CAPITALIZATION

Current Liabilities:
	Notes Payable		$	377,200	$	302,000
	Long-Term Debt - Current Portion			200,000		4,700
	Accounts Payable			173,863		217,311
	Accounts Payable to Affiliated Companies			71,066		63,517
	Obligations to Third Party Suppliers			57,069		34,824
	Renewable Portfolio Standards Compliance Obligations			61,200		35,698
	Accumulated Deferred Income Taxes			107,995		55,136
	Regulatory Liabilities			5,007		49,611
	Other Current Liabilities			86,718		115,991
Total Current Liabilities				1,140,118		878,788

Deferred Credits and Other Liabilities:
	Accumulated Deferred Income Taxes			1,538,988		1,527,667
	Regulatory Liabilities			266,572		262,738
	Accrued Pension, SERP and PBOP			220,000		235,529
	Other Long-Term Liabilities			123,421		129,279
Total Deferred Credits and Other Liabilities				2,148,981		2,155,213

Capitalization:
	Long-Term Debt			1,592,722		1,792,712

	Preferred Stock Not Subject to Mandatory Redemption			43,000		43,000

	Common Stockholder's Equity:
		Common Stock		-		-
		Capital Surplus, Paid In		995,378		994,130
		Retained Earnings		1,534,500		1,468,955
		Accumulated Other Comprehensive Income		260		442
	Common Stockholder's Equity			2,530,138		2,463,527
Total Capitalization				4,165,860		4,299,239

Total Liabilities and Capitalization			$	7,454,959	$	7,333,240

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


			For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014		2015		2014

Operating Revenues			$	617,196	$	561,513	$	1,384,004	$	1,227,701

Operating Expenses:
	Purchased Power and Transmission			283,129		242,907		684,995		561,989
	Operations and Maintenance			69,430		78,981		145,254		164,905
	Depreciation			48,949		46,915		97,716		93,540
	Amortization of Regulatory (Liabilities)/Assets, Net			(7,336)		(1,517)		(12,901)		14,147
	Energy Efficiency Programs			41,733		40,255		97,150		88,584
	Taxes Other Than Income Taxes			29,876		32,458		60,841		64,610
		Total Operating Expenses		465,781		439,999		1,073,055		987,775
Operating Income				151,415		121,514		310,949		239,926

Interest Expense:
	Interest on Long-Term Debt			18,579		19,732		37,225		40,489
	Other Interest			(798)		960		1,002		1,263
		Interest Expense		17,781		20,692		38,227		41,752
Other Income/(Loss), Net				2,533		(246)		3,136		(277)
Income Before Income Tax Expense				136,167		100,576		275,858		197,897
Income Tax Expense				54,204		40,447		110,335		79,681
Net Income			$	81,963	$	60,129	$	165,523	$	118,216



The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.





CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Net Income			$	81,963	$	60,129	$	165,523	$	118,216
Other Comprehensive Loss, Net of Tax:
	Changes in Funded Status of SERP Benefit Plan			(2)		-		(182)		-
Other Comprehensive Loss, Net of Tax				(2)		-		(182)		-
Comprehensive Income			$	81,961	$	60,129	$	165,341	$	118,216



The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NSTAR ELECTRIC COMPANY AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


			For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014

Operating Activities:
	Net Income		$	165,523	$	118,216
	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
		Depreciation		97,716		93,540
		Deferred Income Taxes		61,734		(21,724)
		PBOP Contributions, Net of Pension, SERP and PBOP Expense		(264)		(8,281)
		Regulatory (Under)/Over Recoveries, Net		(96,290)		63,955
		Amortization of Regulatory (Liabilities)/Assets, Net		(12,901)		14,147
		Proceeds from DOE Damages Claim		-		29,113
		Other		(28,653)		(16,870)
	Changes in Current Assets and Liabilities:
		Receivables and Unbilled Revenues, Net		(81,524)		(31,746)
		Materials and Supplies		17,595		(7,399)
		Taxes Receivable/Accrued, Net		100,661		65,692
		Accounts Payable		(38,388)		(21,511)
		Accounts Receivable from/Payable to Affiliates, Net		(2,680)		107,363
		Other Current Assets and Liabilities, Net		25,076		3,158
Net Cash Flows Provided by Operating Activities				207,605		387,653

Investing Activities:
	Investments in Property, Plant and Equipment			(188,103)		(213,508)
	Other Investing Activities			53		576
Net Cash Flows Used in Investing Activities				(188,050)		(212,932)

Financing Activities:
	Cash Dividends on Common Stock			(99,000)		(253,000)
	Cash Dividends on Preferred Stock			(980)		(980)
	Increase in Notes Payable			75,200		91,000
	Issuance of Long-Term Debt			-		300,000
	Retirements of Long-Term Debt			(4,700)		(301,650)
	Other Financing Activities			-		(5,137)
Net Cash Flows Used in Financing Activities				(29,480)		(169,767)
Net (Decrease)/Increase in Cash and Cash Equivalents				(9,925)		4,954
Cash and Cash Equivalents - Beginning of Period				12,773		8,021
Cash and Cash Equivalents - End of Period			$	2,848	$	12,975



The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


			June 30,		December 31,
(Thousands of Dollars)			2015		2014

ASSETS

Current Assets:
		Cash	$	818	$	489
		Receivables, Net		84,607		80,151
		Accounts Receivable from Affiliated Companies		4,290		3,194
		Unbilled Revenues		36,472		40,181
		Taxes Receivable		34,985		14,571
		Fuel, Materials and Supplies		137,119		148,139
		Regulatory Assets		88,773		111,705
		Prepayments and Other Current Assets		23,538		27,821
Total Current Assets				410,602		426,251

Property, Plant and Equipment, Net				2,714,915		2,635,844

Deferred Debits and Other Assets:
		Regulatory Assets		282,215		293,115
		Other Long-Term Assets		34,083		39,228
Total Deferred Debits and Other Assets				316,298		332,343

Total Assets			$	3,441,815	$	3,394,438

LIABILITIES AND CAPITALIZATION

Current Liabilities:
	Notes Payable to Eversource Parent		$	133,500	$	90,500
	Accounts Payable			69,884		93,349
	Accounts Payable to Affiliated Companies			22,201		33,734
	Regulatory Liabilities			5,602		16,044
	Accumulated Deferred Income Taxes			35,963		36,164
	Other Current Liabilities			30,605		38,969
Total Current Liabilities				297,755		308,760

Deferred Credits and Other Liabilities:
	Accumulated Deferred Income Taxes			632,890		587,292
	Regulatory Liabilities			50,250		51,372
	Accrued Pension, SERP and PBOP			99,318		93,243
	Other Long-Term Liabilities			50,054		50,155
Total Deferred Credits and Other Liabilities				832,512		782,062

Capitalization:
	Long-Term Debt			1,076,319		1,076,286

	Common Stockholder's Equity:
		Common Stock		-		-
		Capital Surplus, Paid In		748,635		748,240
		Retained Earnings		493,449		486,459
		Accumulated Other Comprehensive Loss		(6,855)		(7,369)
	Common Stockholder's Equity			1,235,229		1,227,330
Total Capitalization				2,311,548		2,303,616

Total Liabilities and Capitalization			$	3,441,815	$	3,394,438

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


			For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014		2015		2014

Operating Revenues			$	241,875	$	211,626	$	526,722	$	511,458

Operating Expenses:
	Purchased Power, Fuel and Transmission			47,938		68,349		147,516		183,595
	Operations and Maintenance			76,468		70,249		134,895		132,462
	Depreciation			25,751		24,464		51,397		48,679
	Amortization of Regulatory Assets/(Liabilities), Net			12,050		(20,393)		27,181		(7,831)
	Energy Efficiency Programs			3,356		3,292		7,128		7,131
	Taxes Other Than Income Taxes			22,249		16,635		41,331		34,348
		Total Operating Expenses		187,812		162,596		409,448		398,384
Operating Income				54,063		49,030		117,274		113,074

Interest Expense:
	Interest on Long-Term Debt			11,359		11,390		22,758		22,916
	Other Interest			303		(391)		177		55
		Interest Expense		11,662		10,999		22,935		22,971
Other Income, Net				1,245		946		1,628		1,212
Income Before Income Tax Expense				43,646		38,977		95,967		91,315
Income Tax Expense				15,701		14,897		35,977		34,597
Net Income			$	27,945	$	24,080	$	59,990	$	56,718



The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.





CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Net Income			$	27,945	$	24,080	$	59,990	$	56,718
Other Comprehensive Income, Net of Tax:
	Qualified Cash Flow Hedging Instruments			290		291		581		581
	Changes in Unrealized (Losses)/Gains on Other Securities			(75)		12		(67)		26
Other Comprehensive Income, Net of Tax				215		303		514		607
Comprehensive Income			$	28,160	$	24,383	$	60,504	$	57,325



The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


			For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014

Operating Activities:
	Net Income		$	59,990	$	56,718
	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
		Depreciation		51,397		48,679
		Deferred Income Taxes		47,454		61,093
		Pension, SERP and PBOP Expense, Net of PBOP Contributions		2,359		2,416
		Regulatory (Under)/Over Recoveries, Net		(3,089)		18,849
		Amortization of Regulatory Assets/(Liabilities), Net		27,181		(7,831)
		Proceeds from DOE Damages Claim		-		13,103
		Other		6,367		4,386
	Changes in Current Assets and Liabilities:
		Receivables and Unbilled Revenues, Net		(6,597)		3,500
		Fuel, Materials and Supplies		11,019		8,013
		Taxes Receivable/Accrued, Net		(20,414)		(55,243)
		Accounts Payable		(21,362)		(7,146)
		Other Current Assets and Liabilities, Net		(3,792)		(4,166)
Net Cash Flows Provided by Operating Activities				150,513		142,371

Investing Activities:
	Investments in Property, Plant and Equipment			(140,171)		(117,387)
	Other Investing Activities			169		(101)
Net Cash Flows Used in Investing Activities				(140,002)		(117,488)

Financing Activities:
	Cash Dividends on Common Stock			(53,000)		(33,000)
	Increase in Notes Payable to Eversource Parent			43,000		8,500
	Other Financing Activities			(182)		(176)
Net Cash Flows Used in Financing Activities				(10,182)		(24,676)
Net Increase in Cash				329		207
Cash - Beginning of Period				489		130
Cash - End of Period			$	818	$	337



The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


WESTERN MASSACHUSETTS ELECTRIC COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)


			June 30,		December 31,
(Thousands of Dollars)			2015		2014

ASSETS

Current Assets:
		Cash	$	1,143	$	-
		Receivables, Net		61,491		51,066
		Accounts Receivable from Affiliated Companies		5,507		7,851
		Unbilled Revenues		15,912		15,146
		Taxes Receivable		1,148		18,126
		Regulatory Assets		54,926		51,923
		Marketable Securities		38,441		28,658
		Prepayments and Other Current Assets		5,496		7,607
Total Current Assets				184,064		180,377

Property, Plant and Equipment, Net				1,508,207		1,461,321

Deferred Debits and Other Assets:
		Regulatory Assets		138,138		146,307
		Marketable Securities		19,809		29,452
		Other Long-Term Assets		27,147		22,018
Total Deferred Debits and Other Assets				185,094		197,777

Total Assets			$	1,877,365	$	1,839,475

LIABILITIES AND CAPITALIZATION

Current Liabilities:
	Notes Payable to Eversource Parent		$	60,600	$	21,400
	Long-Term Debt - Current Portion			50,000		50,000
	Accounts Payable			36,327		53,732
	Accounts Payable to Affiliated Companies			10,217		14,328
	Regulatory Liabilities			16,847		22,486
	Accumulated Deferred Income Taxes			20,822		18,089
	Other Current Liabilities			24,608		24,080
Total Current Liabilities				219,421		204,115

Deferred Credits and Other Liabilities:
	Accumulated Deferred Income Taxes			422,502		416,822
	Regulatory Liabilities			12,921		10,835
	Accrued Pension, SERP and PBOP			19,530		17,705
	Other Long-Term Liabilities			38,065		33,747
Total Deferred Credits and Other Liabilities				493,018		479,109

Capitalization:
	Long-Term Debt			578,007		578,471

	Common Stockholder's Equity:
		Common Stock		10,866		10,866
		Capital Surplus, Paid In		391,398		391,256
		Retained Earnings		187,673		178,834
		Accumulated Other Comprehensive Loss		(3,018)		(3,176)
	Common Stockholder's Equity			586,919		577,780
Total Capitalization				1,164,926		1,156,251

Total Liabilities and Capitalization			$	1,877,365	$	1,839,475

The accompanying notes are an integral part of these unaudited condensed financial statements.


WESTERN MASSACHUSETTS ELECTRIC COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)


			For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014		2015		2014

Operating Revenues			$	125,194	$	108,289	$	278,058	$	245,698

Operating Expenses:
	Purchased Power and Transmission			43,055		37,619		112,716		87,050
	Operations and Maintenance			20,104		23,686		39,889		46,265
	Depreciation			10,848		10,317		21,223		20,638
	Amortization of Regulatory Assets, Net			3,336		343		7,264		741
	Energy Efficiency Programs			9,519		10,249		20,594		22,114
	Taxes Other Than Income Taxes			9,398		8,396		18,833		16,479
		Total Operating Expenses		96,260		90,610		220,519		193,287
Operating Income				28,934		17,679		57,539		52,411

Interest Expense:
	Interest on Long-Term Debt			6,015		6,104		12,060		12,165
	Other Interest			276		603		1,052		188
		Interest Expense		6,291		6,707		13,112		12,353
Other Income, Net				1,245		594		1,819		1,168
Income Before Income Tax Expense				23,888		11,566		46,246		41,226
Income Tax Expense				9,693		4,548		18,807		16,106
Net Income			$	14,195	$	7,018	$	27,439	$	25,120



The accompanying notes are an integral part of these unaudited condensed financial statements.





CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Net Income			$	14,195	$	7,018	$	27,439	$	25,120
Other Comprehensive Income, Net of Tax:
	Qualified Cash Flow Hedging Instruments			84		84		169		169
	Changes in Unrealized (Losses)/Gains on Other Securities			(12)		2		(11)		4
Other Comprehensive Income, Net of Tax				72		86		158		173
Comprehensive Income			$	14,267	$	7,104	$	27,597	$	25,293



The accompanying notes are an integral part of these unaudited condensed financial statements.


WESTERN MASSACHUSETTS ELECTRIC COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)


			For the Six Months Ended June 30,
(Thousands of Dollars)			2015		2014

Operating Activities:
	Net Income		$	27,439	$	25,120
	Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
		Depreciation		21,223		20,638
		Deferred Income Taxes		12,503		15,234
		Regulatory (Under)/Over Recoveries, Net		(7,911)		28,115
		Amortization of Regulatory Assets, Net		7,264		741
		Proceeds from DOE Damages Claim		-		18,073
		Other		(3,598)		1,462
	Changes in Current Assets and Liabilities:
		Receivables and Unbilled Revenues, Net		(11,593)		44,859
		Taxes Receivable/Accrued, Net		18,774		(19,555)
		Accounts Payable		(21,056)		(26,494)
		Other Current Assets and Liabilities, Net		859		(11,587)
Net Cash Flows Provided by Operating Activities				43,904		96,606

Investing Activities:
	Investments in Property, Plant and Equipment			(62,966)		(61,470)
	Proceeds from Sales of Marketable Securities			49,739		44,449
	Purchases of Marketable Securities			(50,118)		(44,754)
Net Cash Flows Used in Investing Activities				(63,345)		(61,775)

Financing Activities:
	Cash Dividends on Common Stock			(18,600)		(49,000)
	Increase in Notes Payable to Eversource Parent			39,200		15,900
	Other Financing Activities			(16)		(22)
Net Cash Flows Provided by/(Used in) Financing Activities				20,584		(33,122)
Net Increase in Cash				1,143		1,709
Cash - Beginning of Period				-		-
Cash - End of Period			$	1,143	$	1,709


The accompanying notes are an integral part of these unaudited condensed financial statements.

EVERSOURCE ENERGY AND SUBSIDIARIES

THE CONNECTICUT LIGHT AND POWER COMPANY

NSTAR ELECTRIC COMPANY AND SUBSIDIARY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

WESTERN MASSACHUSETTS ELECTRIC COMPANY

COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Refer to the Glossary of Terms included in this combined Quarterly Report on Form 10-Q for abbreviations and acronyms used throughout the combined notes to the unaudited condensed consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, PSNH, WMECO, Yankee Gas and NSTAR Gas. Eversource provides energy delivery service to approximately 3.6 million electric and natural gas customers through these six regulated utilities in Connecticut, Massachusetts and New Hampshire.

On April 30, 2015, the Company's legal name was changed from Northeast Utilities to Eversource Energy. CL&P, NSTAR Electric, PSNH and WMECO are each doing business as Eversource Energy.

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 and WMECO 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 entirety of this combined Quarterly Report on Form 10-Q, the first quarter 2015 combined Quarterly Report on Form 10-Q and the 2014 combined Annual Report on Form 10-K of Eversource, CL&P, NSTAR Electric, PSNH and WMECO, which were filed with the SEC. 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 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, PSNH's and WMECO's financial position as of June 30, 2015 and December 31, 2014, the results of operations and comprehensive income for the three and six months ended June 30, 2015 and 2014, and the cash flows for the six months ended June 30, 2015 and 2014. The results of operations and comprehensive income for the three and six months ended June 30, 2015 and 2014 and the cash flows for the six months ended June 30, 2015 and 2014 are not necessarily indicative of the results expected for a full year.

Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's, PSNH's and WMECO's combined ownership interest in each of these entities is greater than 50 percent. Intercompany transactions between CL&P, NSTAR Electric, PSNH and WMECO and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements.

Eversource's utility subsidiaries' distribution (including generation) and transmission businesses and NPT 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.

Accounting Standards

Accounting Standards Issued but not Yet Effective: In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, which amends existing revenue recognition guidance and is required to be applied retrospectively (either to each reporting period presented or cumulatively at the date of initial application). On July 9, 2015, the FASB deferred the effective date of the new revenue standard by one year. The Company will implement the standard beginning in the first quarter of 2018. Management is reviewing the requirements of the ASU. The ASU is not expected to have a material impact on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, that changes the balance sheet presentation of debt issuance costs. Under the new standard, issuance costs related to debt will be presented on the balance sheet as a direct deduction from the carrying amount of the debt liability rather than as a deferred cost as required by current guidance. The new accounting guidance is effective for interim and annual periods beginning in the first quarter of 2016 with early adoption permitted. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. Management does not expect the adoption of this standard to have a material effect on the financial statements of Eversource, CL&P, NSTAR Electric, PSNH and WMECO.

Provision for Uncollectible Accounts

Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, presents its receivables at estimated net realizable value by maintaining a provision for uncollectible accounts. This provision is determined based upon a variety of judgments and factors, including the application of an estimated uncollectible percentage to each receivable aging category. The estimate is based upon historical collection and write-off experience and management's assessment of collectability from customers. Management continuously assesses the collectability of receivables and adjusts collectability estimates based on actual experience. Receivable balances are written off against the provision for uncollectible accounts when the accounts are terminated and these balances are deemed to be uncollectible.

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 90 days. The DPU allows WMECO to also recover in rates amounts associated with certain uncollectible hardship accounts receivable. Uncollectible customer account balances, which are expected to be recovered in rates, are included in Regulatory Assets or Other Long-Term Assets.

The total provision for uncollectible accounts and for uncollectible hardship accounts, which is included in the total provision, are included in Receivables, Net on the balance sheets, and were as follows:


	Total Provision for Uncollectible Accounts				Uncollectible Hardship
(Millions of Dollars)	As of June 30, 2015		As of December 31, 2014		As of June 30, 2015		As of December 31, 2014
Eversource	$	209.8	$	175.3	$	106.2	$	91.5
CL&P		100.5		84.3		84.7		74.0
NSTAR Electric		46.3		40.7		-		-
PSNH		9.5		7.7		-		-
WMECO		12.1		9.9		7.2		6.2

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 the 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 and nonrecurring fair value measurements of nonfinancial assets such as goodwill and AROs, and is also used to estimate the fair value of preferred stock and long-term debt.

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, and Eversource's policy is to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. The three 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.

Determination of Fair Value: The valuation techniques and inputs used in Eversource's fair value measurements are described in Note 4, "Derivative Instruments," Note 5, "Marketable Securities," and Note 9, "Fair Value of Financial Instruments," to the financial statements.

Other Income, Net

Items included within Other Income, Net on the statements of income primarily consist of investment income/(loss), interest income, AFUDC related to equity funds, and equity in earnings. Investment income/(loss) primarily relates to debt and equity securities held in trust. For further information, see Note 5, "Marketable Securities," to the financial statements.

Other Taxes

Gross receipts taxes levied by the state of Connecticut are collected by CL&P and Yankee Gas from their respective customers. These gross receipts taxes are shown separately with collections in Operating Revenues and payments in Taxes Other Than Income Taxes on the statements of income as follows:


	For the Three Months Ended				For the Six Months Ended
(Millions of Dollars)	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Eversource	$	33.2	$	35.2	$	75.1	$	79.6
CL&P		29.5		30.9		62.5		66.5

Certain sales taxes are collected by Eversource's companies that serve customers in Connecticut and Massachusetts as agents for state and local governments and 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 June 30, 2015		As of June 30, 2014
Eversource	$	142.3	$	125.5
CL&P		47.2		54.0
NSTAR Electric		29.5		21.6
PSNH		25.6		14.8
WMECO		13.7		9.9

Severance Benefits

Eversource recorded severance benefit expense of $1.2 million and $1.4 million for the three months ended June 30, 2015 and 2014, respectively, and $1.6 million and $5.7 million for the six months ended June 30, 2015 and 2014, respectively, in connection with reorganizational and cost saving initiatives, and, in 2014, the partial outsourcing of information technology functions. As of June 30, 2015 and December 31, 2014, the severance accrual totaled $7.8 million and $10.4 million, respectively, and was included in Other Current Liabilities on the balance sheets.

REGULATORY ACCOUNTING

Eversource's Regulated 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 consider 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, including a return on investment.

Management believes it is probable that each of the Regulated companies will recover their respective investments in long-lived assets, including regulatory assets. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to any of the Regulated companies' operations, or that management could not conclude it is probable that costs would be recovered from customers in future rates, the costs would be charged to net income in the period in which the determination is made.

Regulatory Assets: The components of regulatory assets are as follows:


	As of June 30, 2015		As of December 31, 2014
(Millions of Dollars)	Eversource		Eversource
Benefit Costs	$	1,980.0	$	2,016.0
Derivative Liabilities		423.7		425.5
Income Taxes