EVERSOURCE ENERGYES

EVERSOURCE ENERGY PP&E Disclosure

10-KFiled Feb 14, 20253 min read
PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION
Utility property, plant and equipment is recorded at original cost.  Original cost includes materials, labor, construction overheads and AFUDC for regulated property.  The cost of repairs and maintenance is charged to Operations and Maintenance expense as incurred.  

The following tables summarize property, plant and equipment by asset category:
EversourceAs of December 31,
(Millions of Dollars)20242023
Distribution - Electric$21,144.1 $19,656.5 
Distribution - Natural Gas8,922.2 8,155.3 
Transmission - Electric16,130.9 14,666.8 
Distribution - Water (1)
— 2,280.1 
Solar201.0 201.1 
Utility46,398.2 44,959.8 
Other (2)
2,254.1 2,006.8 
Property, Plant and Equipment, Gross48,652.3 46,966.6 
Less:  Accumulated Depreciation  
Utility    (9,636.5)(9,670.1)
Other(1,044.1)(869.6)
Total Accumulated Depreciation(10,680.6)(10,539.7)
Property, Plant and Equipment, Net37,971.7 36,426.9 
Construction Work in Progress3,014.9 3,071.7 
Total Property, Plant and Equipment, Net$40,986.6 $39,498.6 
 As of December 31,
 20242023
(Millions of Dollars)CL&PNSTAR
Electric		PSNHCL&PNSTAR
Electric		PSNH
Distribution - Electric$8,437.9 $9,782.3 $2,964.2 $7,897.1 $9,000.5 $2,799.2 
Transmission - Electric6,937.7 6,375.2 2,819.6 6,548.2 5,630.8 2,489.5 
Solar— 201.0 — — 201.1 — 
Property, Plant and Equipment, Gross15,375.6 16,358.5 5,783.8 14,445.3 14,832.4 5,288.7 
Less:  Accumulated Depreciation(2,928.0)(3,782.0)(1,032.3)(2,670.5)(3,585.9)(984.0)
Property, Plant and Equipment, Net12,447.6 12,576.5 4,751.5 11,774.8 11,246.5 4,304.7 
Construction Work in Progress554.6 1,461.3 338.4 565.4 1,507.3 270.0 
Total Property, Plant and Equipment, Net$13,002.2 $14,037.8 $5,089.9 $12,340.2 $12,753.8 $4,574.7 

(1)As of December 31, 2024, the property, plant and equipment balance, net of accumulated depreciation, attributable to the Aquarion water distribution business has been reclassified to Assets Held for Sale on the Eversource balance sheet. As of December 31, 2023, this balance was recorded within Property, Plant and Equipment, Net on the Eversource balance sheet. For further information, see Note 24, “Assets Held for Sale.”

(2)These assets are primarily comprised of computer software, hardware and equipment at Eversource Service and buildings at The Rocky River Realty Company.

Depreciation: Depreciation of utility assets is calculated on a straight-line basis using composite rates based on the estimated remaining useful lives of the various classes of property (estimated useful life for PSNH distribution and the water utilities).  The composite rates, which are subject to approval by the appropriate state regulatory agency, include a cost of removal component, which is collected from customers over the lives of the plant assets and is recognized as a regulatory liability.  Depreciation rates are applied to property from the time it is placed in service.

Upon retirement from service, the cost of the utility asset is charged to the accumulated provision for depreciation.  The actual incurred removal costs are applied against the related regulatory liability.  
The depreciation rates for the various classes of utility property, plant and equipment aggregate to composite rates as follows:
(Percent)202420232022
Eversource3.2 %3.1 %3.0 %
CL&P2.9 %2.8 %2.8 %
NSTAR Electric2.8 %2.7 %2.7 %
PSNH3.0 %3.0 %3.0 %

The following table summarizes average remaining useful lives of depreciable assets:
 As of December 31, 2024
(Years)EversourceCL&PNSTAR ElectricPSNH
Distribution - Electric33.434.733.429.9
Distribution - Natural Gas34.7— — — 
Transmission - Electric39.735.845.139.8
Distribution - Water45.2— — — 
Solar22.8— 22.8— 
Other (1)
9.9— — — 

(1)The estimated useful life of computer software, hardware and equipment primarily ranges from 5 to 15 years and of buildings is 40 years.
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Historical Timeline

Fiscal YearFiled
2024Feb 14, 2025Showing above
2023Feb 14, 2024
2022Feb 15, 2023
2021Feb 17, 2022
2020Feb 17, 2021
2019Feb 27, 2020
2015Feb 26, 2016

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.

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