EVERSOURCE ENERGY Fair Value Disclosure
| Eversource | CL&P | NSTAR Electric | PSNH | ||||||||||||||||||||||||||||||||||||||||||||
| (Millions of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025: | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock Not Subject to Mandatory Redemption | $ | 155.6 | $ | 126.1 | $ | 116.2 | $ | 92.9 | $ | 43.0 | $ | 33.2 | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Long-Term Debt | 28,265.4 | 27,055.5 | 5,110.1 | 4,844.7 | 5,945.6 | 5,752.6 | 2,031.3 | 1,874.8 | |||||||||||||||||||||||||||||||||||||||
| Rate Reduction Bonds | 324.1 | 320.2 | — | — | — | — | 324.1 | 320.2 | |||||||||||||||||||||||||||||||||||||||
| As of December 31, 2024: | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock Not Subject to Mandatory Redemption | $ | 155.6 | $ | 123.8 | $ | 116.2 | $ | 90.3 | $ | 43.0 | $ | 33.5 | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Long-Term Debt | 26,704.8 | 24,791.4 | 5,111.1 | 4,705.8 | 5,094.9 | 4,759.4 | 1,732.1 | 1,529.7 | |||||||||||||||||||||||||||||||||||||||
| Rate Reduction Bonds | 367.3 | 352.1 | — | — | — | — | 367.3 | 352.1 | |||||||||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 23, 2017 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.