ES · 10-Q · 2026Q3 · Full report

Storm Cost Recovery

EVERSOURCE ENERGY · 2026-11-06 · Importance 43 · Surprise 42 · In source text

CL&P sought approval for $974.2 million of storm and pre-staging costs incurred from 2018 through 2023, plus $397 million of carrying costs through the expected June 1, 2027 securitization date. On July 29, 2026, PURA approved $869.4 million, postponed review of $63.3 million, and disallowed $40.8 million, which CL&P recorded as Operations and Maintenance expense in the third quarter of 2026. PURA did not approve carrying costs from when the deferred costs were incurred through its decision, and CL&P appealed that determination and certain disallowed costs on October 15, 2026. A PURA decision on whether securitization is in ratepayers’ best interest is expected January 20, 2027.

Key facts

• PURA’s July 2026 final decision in CL&P’s storm prudency proceeding disallowed certain storm costs from recovery.
• PURA storm costs approved for future CL&P securitization totaled $667.9 million, excluding $101.5 million previously collected through base rates and $100 million approved in April 2026 for collection through the CTA rate from May 1, 2026 through April 30, 2027.
• On July 29, 2026, PURA approved $869.4 million of CL&P storm and pre-staging costs from 2018–2023 and postponed review of $63.3 million to a future proceeding.
• PURA denied recovery of CL&P storm carrying costs incurred before its final decision but approved accrual of carrying costs on approved unrecovered storm costs from the decision date until securitization or other authorized recovery.
• CL&P requested approval of $974.2 million in storm costs for catastrophic storms and pre-staging events from January 1, 2018 through December 31, 2023, plus $397 million in carrying costs calculated at weighted average cost of capital through the expected June 1, 2027 securitization date.
• PURA's July 2026 final decision on CL&P's storm prudency proceeding disallowed certain storm costs from recovery, affecting electric distribution earnings in Q3 and the first nine months of 2026.
• PURA’s July 29, 2026 decision disallowed $40.8 million of previously deferred CL&P storm costs, which Eversource recorded as an increase to Operations and Maintenance expense in the third quarter of 2026.
• On October 15, 2026, CL&P appealed PURA’s storm decision, challenging denial of carrying costs on storm costs incurred before the decision and certain disallowed restoration costs; the appeal remains pending.

Impact estimates