Eversource Energy : Quarterly Financials September 30, 2022

YANKEE GAS SERVICES COMPANY BALANCE SHEETS

(Unaudited)

	As of September 30,		As of December 31,
(Thousands of Dollars)		2022			2021
ASSETS
Current Assets:
Cash	$	-	$	1,912
Receivables, Net (net of allowance for uncollectible accounts of $52,117 and $45,696 as of
September 30, 2022 and December 31, 2021, respectively)		40,171			75,841
Accounts Receivable from Affiliated Companies		6,809			5,333
Unbilled Revenues		5,338			13,440
Fuel, Materials and Supplies		54,470			29,317
Regulatory Assets		96,312			69,884
Prepayments		21,547			10,434
Other Current Assets		9,458			4,973
Total Current Assets		234,105			211,134
Property, Plant and Equipment, Net		2,170,918			2,077,383
Deferred Debits and Other Assets:
Regulatory Assets		222,848			163,569
Goodwill		287,591			287,591
Other Long-Term Assets		9,291			10,193
Total Deferred Debits and Other Assets		519,730			461,353
Total Assets	$	2,924,753	$	2,749,870
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Eversource Parent	$	78,400	$	128,300
Long-Term Debt - Current Portion		-			20,000
Accounts Payable		65,392			62,196
Accounts Payable to Affiliated Companies		14,977			21,037
Regulatory Liabilities		3,318			13,137
Other Current Liabilities		15,378			26,221
Total Current Liabilities		177,465			270,891
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes		297,186			271,553
Regulatory Liabilities		198,453			181,613
Other Long-Term Liabilities		75,302			80,928
Total Deferred Credits and Other Liabilities		570,941			534,094
Long-Term Debt		842,289			742,458
Common Stockholder's Equity:
Common Stock		5			5
Capital Surplus, Paid In		1,159,462			1,041,462
Retained Earnings		175,085			161,574
Accumulated Other Comprehensive Loss		(494)			(614)
Common Stockholder's Equity		1,334,058			1,202,427
Total Liabilities and Capitalization	$	2,924,753	$	2,749,870

Note: In the opinion of the Company, all adjustments for a fair presentation of these financial statements for the periods shown have been made.

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YANKEE GAS SERVICES COMPANY STATEMENTS OF INCOME (Unaudited)

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Thousands of Dollars)		2022			2021			2022			2021
Operating Revenues	$	90,997	$	77,885	$	493,997	$	436,345
Operating Expenses:
Cost of Natural Gas		32,657			23,195			207,851			168,150
Operations and Maintenance		32,444			28,368			101,947			86,236
Depreciation		13,390			12,539			39,590			37,262
Amortization of Regulatory Liabilities, Net		(3,165)			(3,249)			(772)			(3,986)
Energy Efficiency Programs		1,918			2,026			14,382			14,149
Taxes Other Than Income Taxes		15,374			12,730			54,344			46,826
Total Operating Expenses		92,618			75,609			417,342			348,637
Operating (Loss)/Income		(1,621)			2,276			76,655			87,708
Interest Expense		7,144			6,256			20,735			18,802
Other Income, Net		2,530			340			7,659			868
(Loss)/Income Before Income Tax (Benefit)/Expense		(6,235)			(3,640)			63,579			69,774
Income Tax (Benefit)/Expense		(2,747)			(199)			11,668			16,523
Net (Loss)/Income	$	(3,488)	$	(3,441)	$	51,911	$	53,251

Note: In the opinion of the Company, all adjustments for a fair presentation of these financial statements for the periods shown have been made.

STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Thousands of Dollars)		2022			2021			2022			2021
Net (Loss)/Income	$	(3,488)	$	(3,441)	$	51,911	$	53,251
Other Comprehensive Income, Net of Tax:
Qualified Cash Flow Hedging Instruments		7			7			20			20
Changes in Funded Status of SERP Benefit Plan		46			43			100			129
Other Comprehensive Income, Net of Tax		53			50			120			149
Comprehensive (Loss)/Income	$	(3,435)	$	(3,391)	$	52,031	$	53,400

Note: In the opinion of the Company, all adjustments for a fair presentation of these financial statements for the periods shown have been made.

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YANKEE GAS SERVICES COMPANY

STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (Unaudited)

		For the Nine Months Ended September 30, 2022
	Common Stock							Accumulated		Total
			Capital				Other		Common
(Thousands of Dollars, Except Stock Information)	Stock	Amount			Surplus,		Retained		Comprehensive	Stockholder's
		Paid In		Earnings		Loss		Equity
Balance as of January 1, 2022	1,000	$	5	$	1,041,462	$	161,574	$	(614)	$	1,202,427
Net Income							53,309				53,309
Dividends on Common Stock							(12,800)				(12,800)
Other Comprehensive Income									40		40
Balance as of March 31, 2022	1,000		5		1,041,462		202,083		(574)		1,242,976
Net Income							2,090				2,090
Dividends on Common Stock							(12,800)				(12,800)
Other Comprehensive Income									27		27
Balance as of June 30, 2022	1,000		5		1,041,462		191,373		(547)		1,232,293
Net Loss							(3,488)				(3,488)
Dividends on Common Stock							(12,800)				(12,800)
Capital Contributions from Parent					118,000						118,000
Other Comprehensive Income									53		53
Balance as of September 30, 2022	1,000	$	5	$	1,159,462	$	175,085	$	(494)	$	1,334,058
		For the Nine Months Ended September 30, 2021
	Common Stock							Accumulated		Total
			Capital				Other		Common
(Thousands of Dollars, Except Stock Information)	Stock	Amount			Surplus,		Retained		Comprehensive	Stockholder's
		Paid In		Earnings		Loss		Equity
Balance as of January 1, 2021	1,000	$	5	$	918,062	$	125,576	$	(815)	$	1,042,828
Net Income							51,831				51,831
Dividends on Common Stock							(10,300)				(10,300)
Capital Contributions from Parent					34,600						34,600
Other Comprehensive Income									50		50
Balance as of March 31, 2021	1,000		5		952,662		167,107		(765)		1,119,009
Net Income							4,861				4,861
Dividends on Common Stock							(10,300)				(10,300)
Capital Contributions from Parent					18,600						18,600
Other Comprehensive Income									49		49
Balance as of June 30, 2021	1,000		5		971,262		161,668		(716)		1,132,219
Net Loss							(3,441)				(3,441)
Dividends on Common Stock							(10,300)				(10,300)
Capital Contributions from Parent					47,600						47,600
Other Comprehensive Income									50		50
Balance as of September 30, 2021	1,000	$	5	$	1,018,862	$	147,927	$	(666)	$	1,166,128

Note: In the opinion of the Company, all adjustments for a fair presentation of these financial statements for the periods shown have been made.

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YANKEE GAS SERVICES COMPANY STATEMENTS OF CASH FLOWS (Unaudited)

		For the Nine Months Ended September 30,
(Thousands of Dollars)		2022			2021
Operating Activities:
Net Income	$	51,911	$	53,251
Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:
Depreciation		39,590			37,262
Deferred Income Taxes		17,885			3,560
Pension, SERP and PBOP (Income)/Expense		(2,040)			1,472
Pension Contributions		-			(17,249)
Amortization of Regulatory Liabilities, Net		(772)			(3,986)
Regulatory (Under)/Over Recoveries, Net		(11,910)			4,688
Uncollectible Expense		4,566			5,016
Cost of Removal Expenditures		(53,448)			(18,936)
Other		(2,998)			12,593
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net		30,279			14,676
Fuel, Materials and Supplies		(25,153)			(6,433)
Taxes Receivable/Accrued, Net		(8,637)			(8,259)
Accounts Payable		(4,010)			(8,441)
Other Current Assets and Liabilities, Net		(17,526)			(16,080)
Net Cash Flows Provided by Operating Activities		17,737			53,134
Investing Activities:
Investments in Property, Plant and Equipment		(129,000)			(147,733)
Net Cash Flows Used in Investing Activities		(129,000)			(147,733)
Financing Activities:
Cash Dividends on Common Stock		(38,400)			(30,900)
Capital Contributions from Parent		118,000			100,800
Issuance of Long-Term Debt		100,000			125,000
Retirement of Long-Term Debt		(20,000)			-
Decrease in Notes Payable to Eversource Parent		(49,900)			(98,600)
Other Financing Expenses		(349)			(356)
Net Cash Flows Provided By Financing Activities		109,351			95,944
Net (Decrease)/Increase in Cash		(1,912)			1,345
Cash - Beginning of Period		1,912			-
Cash - End of Period	$	-	$	1,345

Note: In the opinion of the Company, all adjustments for a fair representation of these financial statements for the periods shown have been made.

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