ES · 10-Q · 2026Q3 · Full report

Operating Expense Trends

EVERSOURCE ENERGY · 2026-11-06 · Importance 18 · Surprise 14

For the nine months ended September 30, 2026, total operating expenses increased $240.7 million to $8,139.6 million, while Operations and Maintenance expense rose $18.8 million. Purchased Power, Purchased Natural Gas and Transmission expense increased $352.9 million, largely reflecting higher energy supply procurement, natural gas supply and transmission costs; these tracked costs are recovered from customers. Amortization expense declined $433.9 million year over year, primarily because of deferral adjustments for tracked costs at CL&P, NSTAR Electric and PSNH.

Key facts

• Eversource's rate base offset associated with the EGMA acquisition was reduced by $40.0 million as of September 30, 2026, reducing Q3 2026 depreciation expense.
• Eversource’s third-quarter 2026 O&M expense included a $40.8 million increase from PURA’s disallowance of CL&P storm costs.
• Lower CL&P non-bypassable FMCC collections versus actual costs reduced amortization expense by $206.3 million in the third quarter and $334.1 million in the first nine months of 2026.
• Lower CL&P SBC retail collections versus actual costs reduced amortization expense by $94.0 million in the third quarter and $180.8 million in the first nine months of 2026.
• Eversource’s Operations and Maintenance expense increased $18.8 million in the first nine months of 2026; the third-quarter expense decreased $13.6 million.
• Eversource’s depreciation expense decreased $40.0 million in the third quarter of 2026 due to a benefit from reducing the rate-base offset established in 2020 as part of the EGMA acquisition rate settlement, partly offset by higher net plant balances.