Annual Informational Filing; Docket No. ER

Transcription

1 800 Boylston Street, PRU-17 Boston, Massachusetts Mary E. Grover, Esq. Direct Dial: (617) Facsimile: (617) Via efiling May 31, 2018 Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C Re: Annual Informational Filing; Docket No. ER /ER Dear Secretary Bose: ( NSTAR or the Company ) files herewith its Annual Informational Filing containing the true-up of billings under Schedule 21-NSTAR 1 to Schedule II of the ISO New England Inc. Transmission, Markets and Services Tariff, FERC Electric Tariff for the time period January 1, 2017 through December 31, This Annual Informational Filing is filed to comply with (i) the requirements of Section 4 and Attachment D of Schedule 21-NSTAR, and (ii) the provisions of a Settlement Agreement approved by the Commission on June 19, 2008 ( Settlement ). 2 Pursuant to the terms of Schedule 21-NSTAR and the Settlement, billings to customers in 2017 were based on the use of estimated costs in the formula rates. The enclosed true-ups reflect those same billings based on actual costs for 2017 in the formula rates, now that those costs are known. NSTAR notes that it has included in its formula rates reflected herein certain costs incurred as a result of the merger of its former parent company, NSTAR, with Northeast Utilities 3 in accordance with the Commission s letter order approving the terms of a settlement agreement on the recovery of such costs effective June 1, NSTAR further notes that given the D.C. Circuit Court s April 2017 order 5 issued in 1 Pursuant to Schedule 21-NSTAR, all references to NSTAR in this filing shall mean NSTAR (East), denoting NSTAR Electric Company s eastern Massachusetts geographic region, and specifically shall exclude NSTAR (West), its western Massachusetts geographic region formerly owned by Western Massachusetts Electric Company. 2, 123 FERC 61,270 (2008). 3 NSTAR, et al., 136 FERC 61,016 (2011). Northeast Utilities subsequently changed its name to Eversource Energy. 4 NSTAR, et al., 158 FERC 61,096 (2017).

2 Ms. Bose, Secretary May 31, 2018 Page 2 Emera Maine v. FERC regarding the lawful return on equity component of the formula rates of the New England Transmission Owners, including NSTAR, the true-up of billings presented herein may be adjusted once the matter is remanded to FERC and the Commission issues further rulings. In addition to a complete PDF file of the Annual Informational Filing, NSTAR is including formula rate templates in their native Microsoft Excel spreadsheets in accordance with Staff s Guidance on Formula Rate Updates issued on July 17, NSTAR will complete the Annual Informational Filing when it files its CWIP Settlement on or before June 30, 2018 in accordance with Sections 4.1(i) and (ix) of Schedule 21-NSTAR and Article 4.2 of the Settlement. Except for the CWIP Supplement, the Annual Informational Filing contained herein fully complies with the requirements of Schedule 21-NSTAR and the Settlement. As such, NSTAR respectfully requests that the Commission accept the Annual Informational Filing for informational purposes. NSTAR thanks the Commission for its consideration of this filing. In the event that additional information is required, please contact the undersigned. Very truly yours, /s/ Mary E. Grover Mary E. Grover Attorney for Enclosure 5 No (D.C. Cir. Apr. 14, 2017), 2017 WL

3 Page 1 of 98 Supplemental Workpapers Attestation... Page 2 2. Calculation of the Annual Local Network Service Revenue Requirement (Schedule 21) for cost year Page 3 3. Calculation of the RNS Revenue Requirement per ISO-NE Schedule 9 for cost year 2017 (flows into LNS Revenue Requirement, Sheet 5, lines 73 to 76)... Page Calculation of the Scheduling & Dispatch Revenue Requirement per ISO-NE Schedule 1 for cost year 2017 (flows into LNS Revenue Requirement, Sheet 5, lines 80 to 83)... Page Supporting Documentation for Construction Work In Progress... Page True-up Schedules with Interest Calculation... Page Summary of PBOP Costs & Actuary Report... Page 43

4 Page 2 of 98

5 Page 3 of LNS Revenue Requirements

6 3 Average 12 CP 4 Sum of Monthly Peaks (kw) 48,374,000 FF1 Page (b) * Average Peak 4,031,167 Line 4 / 12 Page 4 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Summary Sheet 1 Total LNS Revenue Requirement $ 80,413,204 Sheet 1, Line 35, Col (c) 2 Total Retail LNS Revenue Requirement $ 78,600,257 Sheet 1, Line 44, Col (c) 6 Annual Rate per kw $ Line 1 / Line 5 7 Monthly Rate per kw $ Line 6 / 12 8 Weekly Rate per kw $ Line 6 / 52 9 Daily Rate per kw $ Line 6 / Hourly Rate per kw $ Line 6 / 8760

7 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Sheet 1 Page 5 of 98 (a) (b) (c) (d) Line Description Section Amount Reference 1 Investment Base II.A.1 2 Transmission Plant II.A.1.a $ 2,551,740,037 Sheet 3, Line 1, Col (f) 3 Transmission Related Intangible & General Plant II.A.1.b 43,422,601 Sheet 3, Line 4, Col (f) 4 Transmission Plant Held for Future Use II.A.1.c 27,387,565 Sheet 3, Line 5, Col (f) 5 Transmission Related Construction Work in Progress II.A.1.d 79,623,073 Sheet 3, Line 6, Col (f) 6 Total Plant 2,702,173,276 Sum Lines 2 thru 5 7 Trans Related Depreciation and Amortization Reserve II.A.1.e (592,419,435) Sheet 3, Line 12, Col (f) 8 Transmission Related Accumulated Deferred Taxes II.A.1.f (231,185,307) Sheet 3, Line 20, Col (f) 9 AFUDC Regulatory Liability II.A.1.g (9,748,263) Sheet 3, Line 21, Col (f) 10 Total Net Plant 1,868,820,271 Sum Lines 6 thru 9 11 Transmission Related Gain/Loss on Reacquired Debt II.A.1.h 3,520,818 Sheet 3, Line 22, Col (f) 12 Other Trans Related Regulatory Assets/Liabilities II.A.1.i (240,662,523) Sheet 3, Line 28, Col (f) 13 Transmission Prepayments II.A.1.j 51,139,919 Sheet 3, Line 29, Col (f) 14 Transmission Materials & Supplies II.A.1.k 8,146,367 Sheet 3, Line 30, Col (f) 15 Transmission Related Cash Working Capital II.A.1.l 7,152,677 Sheet 3, Line 35, Col (f) 16 Total Investment Base $ 1,698,117,529 Sum Lines 10 thru Revenue Requirement 18 Investment Return and Income Taxes II.A.2 $ 190,223,125 Sheet 2, Line 39, Col (c) 19 Transmission Depreciation and Amortization Expense II.B 57,779,750 Sheet 4, Line 7, Col (f) 20 Amortization of Gain/Loss on Reacquired Debt II.C 193,363 Sheet 4, Line 8, Col (f) 21 Transmission Related Amort. of Investment Tax Credits II.D (391,995) Sheet 4, Line 9, Col (f) 22 Transmission Related Municipal Tax Expense II.E 40,151,879 Sheet 4, Line 10, Col (f) 23 Transmission Related Payroll Tax Expense II.F 1,094,238 Sheet 4, Line 11, Col (f) 24 Transmission Operation & Maintenance Expense II.G 31,699,730 Sheet 4, Line 29, Col (f) 25 Transmission Related Administrative and General Expense II.H 21,433,921 Sheet 4, Line 43, Col (f) 26 Transmission Related Integrated Facilities Charges II.I - Sheet 5, Line 6, Col (d) 27 Transmission Support Revenues II.J (3,796,953) Sheet 5, Line 48, Col (d) 28 Transmission Support Expense II.K 4,087,769 Sheet 5, Line 60, Col (d) 29 Transmission Related Expense from Generators II.L - Sheet 5, Line 63, Col (d) 30 Transmission Rents Received from Electric Property II.M (3,810,561) Sheet 5, Line 69, Col (d) 31 Short-Term and Non-Firm P-T-P Service Revenues II.N - Sheet 5, Line 72, Col (d) 32 Regional Network Services (RNS) Revenues II.O (250,711,336) Sheet 5, Line 76, Col (d) 33 Through or Out Revenues II.P (213,095) Sheet 5, Line 79, Col (d) 34 ISO-NE Scheduling and Dispatch Revenues II.Q (7,326,631) Sheet 5, Line 83, Col (d) 35 Total LNS Revenue Requirement $ 80,413,204 Sum Lines 18 thru Wholesale LNS Revenues Received: 37 MBTA distribution facilities (489,511) Sheet 5, Line 21, Col (c) 38 Concord (103,671) Sheet 5, Line 22, Col (c) 39 Massachusetts Port Authority (MASSPORT) (646,661) Sheet 5, Line 23, Col (c) 40 National Grid - Nantucket Cable (318,399) Sheet 5, Line 24, Col (c) 41 Covanta-SEMass (135,809) Sheet 5, Line 26, Col (c) 42 Dartmouth Power Associates Limited (118,896) Sheet 5, Line 27, Col (c) 43 Total Wholesale LNS Revenue $ (1,812,947) Sum Lines 37 thru Total Retail LNS Revenue Requirement $ 78,600,257 Line 35 - Line Average 12 CP 46 Sum of Monthly Peaks (kw) 48,374,000 FF1 Page (b) * Average Peak 4,031,167 Line 46 / Annual Rate per kw $ Line 35 / Line Monthly Rate per kw $ Line 48 / Weekly Rate per kw $ Line 48 / Daily Rate per kw $ Line 48 / Hourly Rate per kw $ Line 48 / 8760

8 Page 6 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Investment Return and Income Taxes Sheet 2 (a) (b) (c) (d) (e) (f) (g) (h) Tariff Capitalization Weighted Equity Line Description Section Balance Ratio Cost Cost Cost Reference 1 Weighted Cost of Capital II.A.2.a 2 Long Term Debt II.A.2.a.i $ 2,394,905, % 3.74% 1.71% FF1 Page (c) 3 Preferred Stock II.A.2.a.ii 43,000, % 4.56% 0.04% 0.04% FF1 Page 112.3(c) 4 Common Equity II.A.2.a.iii 2,794,008, % 10.57% 5.64% 5.64% FF1 Page (c) - Line 3(c) 5 Total $ 5,231,913, % 5.68% Sum Lines 2 thru 4 ROE per ISO New England Inc. Transmission, Markets and Services Tariff, Schedule 21-NSTAR Attachment D II.A.2.(a)(iii), page Investment Return II.A.2 7 Total Investment Base $ 1,698,117,529 Sheet 1, Line 16, Col (c) 8 Weighted Cost of Capital 7.39% Line 5, Col (f) 9 Total Return on Investment $ 125,490,885 Line 7 * Line 8 10 Federal Income Tax II.A.2.b 11 A = Equity Cost 5.68% Line 5, Col (g) 12 B = Transmission Amortization of ITC $ (391,995) Sheet 1, Line 21, Col (c) 13 C = Equity AFUDC 232,673 FF1 Page 336.7(b) Footnote + FF1 Page (b) Footnote 14 Total B + C (159,322) Line 12 + Line D = Investment Base 1,698,117,529 Line 7 16 (B + C) / D % Line 14 / Line (A + [(C + B) / D] % Line 11 + Line FT = Federal Income Tax Rate 35.00% Federal corporate tax rate FT 65.00% 1 - Line Federal Tax Factor % Line 17 * Line 18 / Line Total Federal Income Taxes $ 51,850,321 Line 15 * Line State Income Tax II.A.2.c 23 A = Equity Cost 5.68% Line 5, Col (g) 24 B = Transmission Amortization of ITC $ (391,995) Sheet 1, Line 21, Col (c) 25 C = Equity AFUDC 232,673 FF1 Page 336.7(b) Footnote + FF1 Page (b) Footnote 26 Total B + C (159,322) Line 24 + Line D = Investment Base 1,698,117,529 Line 7 28 (B + C) / D % Line 26 / Line (A + [(C + B) / D] % Line 23 + Line ST = State Income Tax Rate 8.00% Massachusetts corporate tax rate ST 92.00% 1 - Line Federal Tax Factor % Line State Tax Factor % (Line 29 + Line 32) * Line 30 / Line Total State Income Taxes $ 12,881,920 Line 27 * Line Investment Return and Income Taxes II.A.2 36 Return on Investment $ 125,490,885 Line 9 37 Federal Income Taxes 51,850,321 Line State Income Taxes 12,881,920 Line Total Return and Income Taxes $ 190,223,125 Sum Lines 36 thru 38

9 Page 7 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Investment Base Sheet 3 (a) (b) (c) (d) (e) (f) (g) Tariff Allocations Line Description Section Total Allocator Factor LNS Amount Reference 1 Transmission Plant II.A.1.a $ 2,551,740,037 Direct % $ 2,551,740,037 FF1 Page (g) 2 General Plant 309,383,566 W&S % 38,373,153 FF1 Page (g) 3 Intangible Plant 40,711,178 W&S % 5,049,448 FF1 Page 205.5(g) 4 Total Intangible & General Plant II.A.1.b 43,422,601 Sum Lines 2 thru 3 5 Transmission Plant Held for Future Use II.A.1.c 27,387,565 Direct % 27,387,565 6 Transmission Related CWIP II.A.1.d 159,246,146 CWIP % 79,623,073 FF1 Page (d) + FF1 Page (d) + FF1 Page (d) + FF1 Page (d) + FF1 Page (d) + FF1 Page (d) + FF1 Page (d) + FF1 Page (d) FF1 Page 216 lines 29(b) thru 41(b), lines 1(b) thru 16(b) 7 Transmission Related Dep & Amort Reserve II.A.1.e 8 Transmission Accumulated Depreciation (577,718,633) Direct % (577,718,633) FF1 Page (b) 9 General Plant Accumulated Depreciation (85,933,001) W&S % (10,658,356) FF1 Page (b) 10 General Plant Accumulated Amortization (7,053,933) W&S % (874,906) FF1 Page (c) Footnote 11 Intangible Plant Accumulated Amortization (25,538,296) W&S % (3,167,540) FF1 Page (c) Footnote 12 Total Transmission Related Depreciation Reserve (696,243,863) (592,419,435) Sum Lines 8 thru Transmission Accumulated Deferred Taxes II.A.1.f 14 Accumulated Deferred Taxes (190) 305,411, % 74,672,415 Sheet 8, Line 13, col (d) 15 Accumulated Deferred Income Taxes (281) - - FF1 Page (c) 16 Accumulated Deferred Taxes - Property (282) (889,610,050) FF1 Page 275.9(k) 17 Less Transition Property - FF1 Page 275.4(k) 18 Net Acc. Def. Income Taxes - Other Property (282) (889,610,050) Plant % (283,554,307) Sum Lines 16 thru Accumulated Deferred Income Taxes - Other (283) (421,399,236) % (22,303,415) Sheet 8, Line 34, col (d) 20 Total (231,185,307) Line 14 + Line 15 + Line 18 + Line AFUDC Regulatory Liability II.A.1.g (9,748,263) Direct % (9,748,263) FF1 Page 278.3(f) 22 Gain/Loss on Reacquired Debt II.A.1.h 11,046,050 Plant % 3,520,818 FF1 Page (c) + FF1 Page (c) 23 Other Regulatory Assets II.A.1.i 24 FAS 106 (182.3 & 254) - W&S % - FF1 Page ASC 740 ( FAS 109) 83,491,608 FF1 Page (f) 26 Less ASC 740 Liability (254 - FAS 109) (838,534,976) FF1 Page 278.1(f) 27 Net ASC 740 (182.3 & FAS 109) (755,043,368) Plant % (240,662,523) Sum Lines 25 thru Total Other Regulatory Assets (755,043,368) (240,662,523) Line 24 + line Prepayments II.A.1.j 412,315,625 W&S % 51,139,919 FF1 Page (c) + FF1 Page (f) 30 Transmission Materials & Supplies II.A.1.k 8,146,367 Direct % 8,146,367 FF1 Page 227.8(c) + FF1 Page 227.5(c) Footnote 31 Cash Working Capital II.A.1.l 32 Operation & Maintenance Expense 31,699,730 WC % 3,962,466 Sheet 1, Line 24, col (c) 33 Administrative & General Expense 21,433,921 WC % 2,679,240 Sheet 1, Line 25, col (c) 34 Transmission Support Expenses 4,087,769 WC % 510,971 Sheet 1, Line 28, col (c) 35 Total Cash Working Capital 57,221,420 7,152,677 Sum Lines 32 thru 34 Allocation 36 Description Factor Reference 37 Direct Allocation (Direct) % 38 Wages & Salary (W&S) % Sheet 6 (WP A6), Line 6(c) 39 Plant Allocation (Plant) % Sheet 6 (WP A6), Line 14(c)! 40 Construction Work in Progress Allocation (CWIP) % 41 Cash Working Capital (WC) 12.50% Sheet 6 (WP A6), Line 615(c) Tariff Section II.A.1.l

10 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Transmission Expenses Sheet 4 Page 8 of 98 (a) (b) (c) (d) (e) (f) (g) Tariff Allocations Line Description Section Total Allocator Factor LNS Amount Reference 1 Transmission Depreciation and Amortization Expense II.B 2 Transmission Depreciation II.B.i $ 56,278,784 Direct % $ 56,278,784 FF1 Page 336.7(f) 3 General Plant Depreciation and Amortization II.B.ii 10,056,399 W&S % 1,247,305 FF1 Page (f) 4 Amortization of Transmission Related Intangible Plant 5,552,817 W&S % 688,721 FF1 Page 336.1(f) 5 Amortization of AFUDC Regulatory Credit (435,060) (435,060) FF1 Page (c) 6 Net Amortization of Transmission Related Intangible Plant $ 5,117,757 $ 253,661 Sum Lines 4 and 5 7 Total Transmission Depreciation and Amortization Expense $ 71,452,940 $ 57,779,750 Sum Lines 2, 3 and 6 8 Amortization of Gain/Loss on Reacquired Debt II.C $ 606,648 Plant % $ 193,363 FF1 Page (c) + FF1 Page (c) 9 Transmission Related Amortization of ITC II.D $ (1,229,827) Plant % $ (391,995) FF1 Page (c) 10 Transmission Related Municipal Tax Expense II.E $ 125,970,630 Plant % $ 40,151,879 FF1 Page (i) 11 Transmission Related Payroll Tax Expense II.F $ 8,822,291 W&S % $ 1,094,238 FF1 Page 262.2(i), 4(i), 7(i), 13(i), 18(i), 22(i), 33(i), 37(i), (i), 1.5(i) 12 Transmission Operation and Maintenance Expense II.G 13 Operation Supervision & Engineering (560) $ 3,963,330 Direct % 3,963,330 FF1 Page (b) 14 Load Dispatch - Reliability (561.1) 1,166,130 Internal Costs 1,166,130 FF1 Page (b) 15 Load Dispatch-Monitor and Operate Transmission System (561.2) 1,020,365 Internal Costs 1,020,365 FF1 Page (b) 16 Load Dispatch-Transmission Service and Scheduling (561.3) 505,558 Internal Costs 505,558 FF1 Page (b) 17 Scheduling, System Control and Dispatch Services (561.4) 13,834,851 External Costs - FF1 Page (b) 18 Reliability, Planning and Standards Development (561.5) 1,302,216 Internal Costs 1,048,426 FF1 Page (b) 19 Transmission Service Studies (561.6) 510,973 Internal Costs 510,973 FF1 Page (b) 20 Generation Interconnection Studies (561.7) - Internal Costs - FF1 Page (b) 21 Reliability, Planning and Standards Development Services (561.8) 17,254 External Costs - FF1 Page (b) 22 Station Expenses (562) 2,057,264 Direct % 2,057,264 FF1 Page (b) 23 Overhead Lines Expenses (563) 363,025 Direct % 363,025 FF1 Page (b) 24 Underground Lines Expenses (564) 4,740,651 Direct % 4,740,651 FF1 Page (b) 25 Miscellaneous Transmission Expenses (566) 235,653 Direct % 235,653 FF1 Page (b) 26 Rents (567) 68,105 Direct % 68,105 Sheet 5, Line 3, col (d) 27 Transmission Maintenance ( ) 16,020,250 Direct % 16,020,250 FF1 Page (b) 28 Regional Market Expense ( ) 388,066 External Costs - FF1 Page (b) 29 Total Transmission O&M Expense $ 46,193,691 $ 31,699,730 Sum Lines 13 thru Transmission Related A&G Expenses II.H 31 Administrative and General Expenses I.B $ 142,166,850 FF1 Page (b) 32 Merger Costs (923) - Note 3 $ (3,250,000) FF1 Page (b) Footnote 33 Property Insurance (924) (930,834) FF1 Page (b) 34 Employee Pensions and Benefits (926) (19,640,559) FF1 Page (b) 35 Regulatory Commission Expenses (928) (10,011,774) FF1 Page (b) 36 General Advertising Expenses (930.1) (158,361) FF1 Page (b) 37 Miscellaneous General Expenses (930.2) - Note 2 (52,118) FF1 Page (e) 38 Sub-Total II.H.1 108,123,204 W&S % 13,410,629 Sum Lines 31 thru Merger Costs (923) - Note 3 3,250,000 Direct % 3,250,000 FF1 Page (b) Footnote 40 Property Insurance (924) II.H.2 930,834 Plant % 296,694 Line Employee Pensions and Benefits (926) - Note 1 II.H.1 19,640,559 W&S % 2,436,038 Line Regulatory Commission Expenses (928) II.H.3 10,011,774 Footnote % 2,040,560 Line Total Transmission Related A&G Expenses $ 141,956,371 $ 21,433,921 Sum Lines 38 thru Regulatory Commission Expenses (928) II.H.3 45 Assessment Charged by the MA DPU $ 7,929, % $ - FF1 Page 350.2(d) 46 Proportionate share of expenses of FERC Assessment Order No ,039,855 Direct % 2,039,855 FF1 Page 350.6(d) 47 Legal Fees - Distribution 15, % - FF1 Page 350.8(d) 48 Legal Fees - Transmission % 705 FF1 Page (d) 49 Minor items - Distribution 26, % - FF1 Page (d) 50 Total Regulatory Commission Expenses II.H.3 $ 10,011, % $ 2,040,560 Sum Lines 45 thru 49 Allocation 51 Description Factor Reference 52 Direct Allocation (Direct) % 53 Wages & Salaries Allocation (W&S) % Sheet 6 (WP A6), Line 6(c)) 54 Plant Allocation (Plant) % Sheet 6 (WP A6), Line 14(c)) 55 Note Included in the Employee Pension and Benefits Expenses are costs related to Post Retirement Benefits other than Pension (PBOP). PBOP costs are determined by an independent actuary as required by ASC 715. The Net PBOP expense included in Account 926 for 2017 was ($13,497,000) compared to ($6,986,000) in 2016 as shown on the FF1, page 323, footnote. 58 Applying the labor allocator to the Net PBOP expense results in ($1,674,046) of PBOP expense being recovered through the LNS Tariff in 2017 as compared to ($785,003) in the prior year PBOP $ (32,217,000) $ (14,647,000) Page 323 line 187 footnote 60 Capitalized PBOP & Other impact adjustment 18,720,000 7,661,000 Page 323 line 187 footnote 61 Net PBOP in account 926 $ (13,497,000) $ (6,986,000) Line 59 + Line Wages & Salaries Allocation (W&S) % % Sheet 6 63 LNS portion of PBOP $ (1,674,046) $ (785,003) Line 61 x Line Note 2 - NSTAR Green Program costs are excludable for Transmission billing purposes. 65 Note 3 - Merger Cost recovery as authorized in Docket No. ER

11 Page 9 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Support Expense & Revenue Detail Sheet 5 (a) (b) (c) (d) (e) Line Description Tariff Section Amount Includable Amount Reference 1 Transmission Rents (Account 567) II.G 2 Transmission Rents $ 68,105 68,105 FF1 Page (b) 3 Total Transmission Rent Expenses $ 68,105 $ 68,105 Line 2 4 Transmission Related Integrated Facilities Charges II.I $ - $ none Total Trans Related Integrated Facilities Charges $ - $ - Sum Lines 4 thru 5 7 Transmission Support Revenues 456 & II.J 8 Energy Efficiency revenue $ (73,702,563) $ - FF1 Page (b) Footnote 9 MBTA distribution facilities (2,433,476) - FF1 Page (b) Footnote 10 MATEP distribution (1,598,602) - FF1 Page (b) Footnote 11 Massport distribution facilities (2,934,114) - FF1 Page (b) Footnote 12 PAM carrying charge (3,384,000) - FF1 Page (b) Footnote 13 Enhanced Billing & Metering Services (270,975) - FF1 Page (b) Footnote 14 CIAC adder (3,235,341) - FF1 Page (b) Footnote 15 Net metering revenue 11,898,491 - FF1 Page (b) Footnote 16 Belmont support revenue (313,447) - FF1 Page (b) Footnote 17 Return check fee (382,962) - FF1 Page (b) Footnote 18 Account reactivation fee (395,630) - FF1 Page (b) Footnote 19 Other revenue (258,171) - FF1 Page (b) Footnote Other Electric Revenues $ (77,010,790) $ - Sum Lines 8 thru MBTA distribution facilities $ (489,511) $ - FF1 Page (b) Footnote 22 Concord (103,671) - FF1 Page (b) Footnote 23 Massachusetts Port Authority (MASSPORT) (646,661) - FF1 Page (b) Footnote 24 National Grid - Nantucket Cable (318,399) - FF1 Page (b) Footnote 25 Belmont (269,352) (269,352) FF1 Page (b) Footnote 26 Covanta-SEMass (135,809) - FF1 Page (b) Footnote 27 Dartmouth Power Associates Limited (118,896) FF1 Page (b) Footnote 28 HQUS (2,514,322) - FF1 Page (b) Footnote 29 Hydro Quebec Phase II Support (319,407) (319,407) FF1 Page (b) Footnote 30 NEP Lines /2338 (2,326) (2,326) FF1 Page (b) Footnote 31 Concord/Wellesley Subtrans Facilities (56,104) (56,104) FF1 Page (b) Footnote FF1 Page (b) Footnote 33 National Grid-Dewar Street (615,692) (615,692) FF1 Page (b) Footnote 34 ANP Blackstone Energy Co. (600,286) (600,286) FF1 Page (b) Footnote 35 Granite Ridge Energy, LLC (12,109) (12,109) FF1 Page (b) Footnote 36 New England Power - Merchants Way (55,071) (55,071) FF1 Page (b) Footnote 37 Millenium Power Partners (18,446) (18,446) FF1 Page (b) Footnote 38 Consetllation Mystic Power, LLC (1,100,004) (1,100,004) FF1 Page (b) Footnote 39 Calpine Fore River Energy Center, LLC (239,766) (239,766) FF1 Page (b) Footnote 40 Constellation Fore River - - FF1 Page (b) Footnote 41 GenOn Kendall Facilities (385,143) (385,143) FF1 Page (b) Footnote 42 Entergy Capacitor Bank (23,363) (23,363) FF1 Page (b) Footnote 43 National Grid - Edgar Station (99,884) (99,884) FF1 Page (b) Footnote 44 OATT - RNS Transmission Revenue (256,912,291) - FF1 Page (b) Footnote 45 OATT - Scheduling & Dispatch Service (7,326,631) - FF1 Page (b) Footnote 46 OATT - Through or Out Service (213,095) - FF1 Page (b) Footnote Transmission of Electricity by Others $ (272,576,239) $ (3,796,953) Sum Lines 21 thru Total Transmission Support Revenues $ (349,587,029) $ (3,796,953) Sum Lines 20 and Transmission Support Expense (565) II.K 50 New England Power Co. $ (125,962) $ (125,962) FF1 Page 332.1(h) 51 Wellesley Municipal Lgt 16,337 16,337 FF1 Page 332.2(h) 52 Norwood Municipal Light 2,980,751 2,980,751 FF1 Page 332.3(h) 53 Bell Rock 60,036 60,036 FF1 Page 332.4(h) 54 ISO-NE 384,949,925 - FF1 Page 332.7(h) 55 Western Massachusetts 428,282 - FF1 Page 332.8(h) 56 Hydro Quebec DC Phase I Support 398,323 - FF1 Page 332.5(g) Footnote (g) Footnote 57 Hydro Quebec DC Phase II Support 4,560,715 - FF1 Page 332.6(g) Footnote 58 Hydro Quebec AC Phase II Support 837, ,888 FF1 Page 332.6(g) Footnote 59 Hydro Quebec Phase II Support Chester SVC 318, ,719 FF1 Page 332.6(g) Footnote 60 Total Transmission Support Expenses $ 394,425,014 $ 4,087,769 Sum Lines 50 thru Transmission Related Expense from Generators II.L N/A 62 - none Total Trans Related Expense from Generators $ - $ - Sum Lines 61 thru 62

12 Page 10 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Support Expense & Revenue Detail Sheet 5 (a) (b) (c) (d) (e) Line Description Tariff Section Amount Includable Amount Reference 64 Rents Received from Electric Property (454) II.M 65 Associated company rents $ (833,171) $ - FF1 Page (b) Footnote 66 Pole attachments rent (5,234,718) - FF1 Page (b) Footnote 67 Wireless and Substation rents (1,789,528) - FF1 Page (b) Footnote 68 Wireless and ROW rents - transmission (3,810,561) (3,810,561) FF1 Page (b) Footnote 69 Total Transmission Rents Received from Electric Property $ (11,667,978) $ (3,810,561) Sum Lines 65 thru Short-Term and Non-Firm Point-to-Point Rev II.N $ - $ - N/A 71 - none Total ST and Non-Firm Point-to-Point Service Revenues $ - $ - Sum Lines 70 thru Regional Network Service Revenues (456): II.O 74 RNS Transmission Revenue $ (257,658,002) $ (257,658,002) Sheet 9 75 RNS PTF Incentive Adders (RTO Participation 0.5% and Post 2003 investment 1%) 6,946,666 Sheet Regional Network Services Revenues $ (257,658,002) (250,711,336) Sum Lines 73 thru Through or Out Revenues II.P $ (213,095) $ (213,095) Line none Total Through or Out Revenues $ (213,095) $ (213,095) Sum Lines 77 thru ISO-NE Scheduling & Dispatch Revenue II.Q 81 NEPOOL Scheduling & Dispatch Revenue $ (7,326,631) $ (7,326,631) Line RTO Participation 0.5% Adder - - RNS Schedule 1 Revenue Requirement 83 Total ISO-NE Scheduling & Dispatch Revenue $ (7,326,631) $ (7,326,631) Sum Lines 81 thru 82

13 Page 11 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Allocation Factors Sheet 6 (a) (b) (c) (d) Tariff Line Description Section Amount Reference 1 Transmission Wages & Salaries Allocation Factor I.A.1 2 Transmission Related Direct Wages & Salaries $ 12,955,381 FF1 Page (b) 3 Total Direct Wages & Salaries $ 142,247,384 FF1 Page (b) 4 Administrative & General Wages & Salaries 37,794,572 FF1 Page (b) 5 Net Total Direct Wages & Salaries $ 104,452,812 Line 3 less Line 4 6 Transmission Wages & Salaries Allocation Factor % Line 2 / Line 5 7 Plant Allocation Factor I.A.2 8 Transmission Plant Investment $ 2,551,740,037 FF1 Page (g) 9 HQ Leases - 10 Transmission Related General Plant 38,373,153 Sheet 3, Line 2, Col (f) 11 Transmission Related Intangible Plant 5,049,448 Sheet 3, Line 3, Col (f) 12 Total Transmission Plant Investment $ 2,595,162,638 Sum Lines 8 thru Total Plant in Service $ 8,141,948,692 FF1 Page (g) 14 Plant Allocation Factor % Line 12 / Line Construction Work in Progress Allocation Factor II.A.1.d %

14 Page 12 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Cost of Long Term Debt Sheet 7 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) FF1:256(a) FF1:257(d) FF1:256(a) FF1:256(b) FF1:257(h) FF1:256(c) Long Term Debt Principal Debt Call Term Coupon Original Amount Percent Disc & Premium on Net Cost to Weighted Line Series Dated (Years) Rate Issue Outstanding of Total Exp Debt Proceeds Maturity Cost Reference Col f / Col f Total Col e - Col h - Col i Col d + ((Col h + Col i) / Col e / Col c)) Col g * Col k % Debentures 03/13/ % 200,000, ,000, % 4,294, ,705, % % FF1 Page 256 & % Debentures 03/16/ % 300,000, ,000, % 7,929, ,070, % % FF1 Page 256 & % Debentures 10/15/ % 400,000, ,000, % 4,274, ,725, % % FF1 Page 256 & % E Debentures 03/07/ % 300,000, ,000, % 5,137, ,862, % % FF1 Page 256 & % E Debentures 11/18/ % 250,000, ,000, % 3,332, ,667, % % FF1 Page 256 & % Debentures 05/26/ % 250,000, ,000, % 3,010, ,989, % % FF1 Page 256 & % Debentures 05/15/ % 700,000, ,000, % 2,308, ,691, % % FF1 Page 256 & Total $ 2,400,000,000 $ 2,400,000, % $ 30,287,438 $ - $ 2,369,712, % Sum Lines 1 Thru 7 FF1: 250(a) FF1: 250(a) FF1: 251(f) Cost of Preferred Stock Preferred Stock Principal Coupon Original Amount Percent Weighted Series Dated Term Rate Issue Outstanding of Total Cost Reference % 06/13/1956 N/A 4.250% $ 18,000,000 $ 18,000, % % FF1 Page 250 & 251(f) % 07/10/1958 N/A 4.780% 25,000,000 25,000, % % FF1 Page 250 & 251(f) 11 Total $ 43,000,000 $ 43,000, % % Sum Lines 9 Thru 10

15 ISO New England Inc Transmission, Markets and Services Tariff, Section II Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR For the period of January 1 - December 31, 2017 Sheet 8 Transmission Related ADIT - Tariff Section II.A.1.f Page 13 of 98 (a) (b) (c) (d) (e) Line Description Amount Allocator Rate Base Notes 1 Account Post employment benefits accrued $ 31,646, % $ 3,925,207 FF1 Page 234.2(c) Footnote 3 Workers Compensation 2,785, % 345,490 FF1 Page 234.2(c) Footnote 4 Workers Compensation gross up payable 4,446, % 551,518 FF1 Page 234.2(c) Footnote 5 Self insurance reserves 3,280, % 1,045,475 FF1 Page 234.2(c) Footnote 6 Allowance for uncollectible accounts 13,400, % - FF1 Page 234.2(c) Footnote 7 Pension expense 17,054, % 2,115,323 FF1 Page 234.2(c) Footnote 8 Pension adjustment mechanism 16,080, % - FF1 Page 234.2(c) Footnote 9 Deferred transition revenues 2,908, % - FF1 Page 234.2(c) Footnote 10 Deferred transmission revenues 4,579, % - FF1 Page 234.2(c) Footnote 11 ASC 740 deferred income taxes (FAS 109) 207,076, % 66,003,484 FF1 Page 234.2(c) Footnote 12 Other items 2,151, % 685,918 FF1 Page 234.2(c) Footnote 13 Total 190 $ 305,411, % $ 74,672,415 Sum Lines 2 thru Account Merger Cost regulatory asset (distribution) $ (7,135,539) % FF1 Page 276.3(k) Footnote 16 Bond redemption call premiums (3,017,781) % (961,888) FF1 Page 276.3(k) Footnote 17 Pension expense (107,068,945) % (13,279,868) FF1 Page 276.3(k) Footnote 18 Post employment benefits accrued (35,820,781) % (4,442,887) FF1 Page 276.3(k) Footnote 19 Mitigation incentive & Montaup billing receivable (1,536,206) % - FF1 Page 276.3(k) Footnote 20 Property tax lien date accrual (17,277,538) % (5,507,042) FF1 Page 276.3(k) Footnote 21 Workers Compensation gross up payable (4,446,613) % (551,518) FF1 Page 276.3(k) Footnote 22 Retail adjuster clause deferrals (49,759,501) % - FF1 Page 276.3(k) Footnote 23 Deferred net metering costs (3,184,275) % - FF1 Page 276.3(k) Footnote 24 Keep cost receivable (9,720,893) % - FF1 Page 276.3(k) Footnote 25 Storm contingency fund (36,944,717) % - FF1 Page 276.3(k) Footnote 26 Pension adjustment mechanism (5,116,226) % - FF1 Page 276.3(k) Footnote 27 Rate Change to 21% in account 283 (labor) (43,091,632) % (5,344,698) FF1 Page 276.3(k) Footnote 28 Rate Change to 21% in account 283 (plant) (11,849,329) % (3,776,855) FF1 Page 276.3(k) Footnote 29 Rate Change to 21% in account 283 (distribution) (20,548,094) % - FF1 Page 276.3(k) Footnote 30 Rate Change to 21% in account 283 (retail adjuster clause) (15,483,770) % - FF1 Page 276.3(k) Footnote 31 ASC 740 deferred income taxes (FAS 109) 38,862, % 12,386,936 FF1 Page 276.3(k) Footnote 32 Goodwill (85,669,407) % - FF1 Page 276.3(k) Footnote 33 Other items (2,590,183) % (825,595) FF1 Page 276.3(k) Footnote 34 Total 283 $ (421,399,236) % $ (22,303,415) Sum Lines 15 thru Wages & Salary Allocator % Sheet 6, Line 6, Col (c) 36 Plant Allocator % Sheet 6, Line 14, Col (c)

16 ISO New England Inc Transmission, Markets and Services Tariff, Section II Page 14 of 98 Annual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NSTAR Regional Network Service "RNS" Revenues for 2017 For the period of January 1 - December 31, 2017 Sheet 9 Month 2017 RNS Revenues 1 January $ (19,843,424) 2 February $ (18,248,768) 3 March $ (18,331,008) 4 April $ (16,301,965) 5 May $ (20,913,965) 6 June $ (26,892,002) 7 July $ (26,252,498) 8 August $ (25,359,968) 9 September $ (23,379,583) 10 October $ (19,360,560) 11 November $ (18,917,480) 12 December $ (23,111,071) 13 TOTAL RNS Revenues (sum lines 1 thru 12) $ (256,912,291) FF1 Page (n) Wages & Salaries Allocation Adjustment $ (745,711) Note 1 15 TOTAL RNS Revenues (Line 13 + Line 14) $ (257,658,002) Note 1 - This adjustment is related to the 2014 FERC Form 1 Wages and Salaries allocation adjustment as filed in the May 31, 2017 Annual Informational Filing

17 ISO New England Inc Transmission, Markets and Services Tariff, Section II nual Local Network Service Revenue Requirement per Attachment D of Schedule 21-NST Regional Network Service ("RNS") Incentives Revenues for 2017 For the period of January 1 - December 31, 2017 Sheet 10 (A) (B) (C) 6/1/16-5/31/17 NSTAR 1 True-up Incentives (Note 1) $ (548,103) 2 Test Year Incentives (Note 1) $ 6,318,742 3 Forecasted Incentives (Note 1) $ 727,236 4 Total Incentives (Lines ) $ 6,497,875 5 NE Avg 12CP (in kw Actual) = 19,871,253 6 RNS Rate - Incentives (6/1/16-5/31/17) = $ (line 4 / line 5) 6/1/17-5/31/18 NSTAR 7 True-up Incentives (Note 1) $ 24,632 8 Test Year Incentives (Post 96) (Note 1) $ 4,616,450 9 Test Year Incentives (Pre 97) (Note 1) $ 1,138, Test Year Incentives (Post 03) (Note 1) $ 1,314, Forecasted Incentives (Note 1) $ 286, Total Incentives (Lines ) $ 7,380, NE Avg 12CP (in kw Actual) = 19,605, RNS Rate - Incentives (6/1/17-5/31/18) = $ (line 12 / line 13) Page 15 of 98 Actual 2017 kw NSTAR 15 January 19,278,319 $ 525,334 Line 6 (C) x Line 15 (B) 16 February 17,949,219 $ 489,116 Line 6 (C) x Line 16 (B) 17 March 17,314,183 $ 471,811 Line 6 (C) x Line 17 (B) 18 April 15,582,195 $ 424,615 Line 6 (C) x Line 18 (B) 19 May 19,759,438 $ 538,445 Line 6 (C) x Line 19 (B) 20 June 23,434,179 $ 735,189 Line 14 (C) x Line 20 (B) 21 July 23,131,939 $ 725,707 Line 14 (C) x Line 21 (B) 22 August 22,254,414 $ 698,177 Line 14 (C) x Line 22 (B) 23 September 20,720,477 $ 650,053 Line 14 (C) x Line 23 (B) 24 October 16,937,917 $ 531,385 Line 14 (C) x Line 24 (B) 25 November 16,727,345 $ 524,779 Line 14 (C) x Line 25 (B) 26 December 20,146,798 $ 632,055 Line 14 (C) x Line 26 (B) 27 TOTAL Incentives in Revenues (sum lines 15 thru 26) $ 6,946,666 Note 1 - Pertains to ROE incentive adders embedded in the PTF revenue requirements used in the calculation of the RNS rate (Incentive adders = RTO Participation 0.5% and Post 2003 investment 1%)

18 Page 16 of RNS Revenue Requirements

19 Pre-97 Revenue Post-96 Revenue Requirements Requirements Page 17 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Actual PTF Revenue Requirements per Attachment F of the ISO-NE OATT For Costs in 2017 Sheet 1 Submitted on: May 31, 2018 Revenue Requirements for (year): Calendar Year 2017 Customer: Customer's NABs Number: # 3 Name of Participant responsible for customer's billing: DUNs number of Participant responsible for customer's billing: # Total of Attachment F - Sections A through I Total of Attachment F - Section J - Support Revenue Total of Attachment F - Section K - Support Expense Total of Attachment F - Sections L through O Sub Total - Sum (A through I) - J + K+ (L through O) = $ 46,157,394 (a) $ 202,501,941 (f) = $ 989,725 (b) $ - (g) = $ 1,090,681 (c) $ - (h) = $ (3,847,840) (d) $ (162,828) (i) = $ 42,410,510 (e)=(a)-(b)+(c)+(d) $ 202,339,113 (j)=(f)-(g)+(h)+(i) Annual Revenue Requirement Total = Sum of Pre-97 Revenue Requirements and Post-96 Revenue Requirements Subtotals for rate calculations under the Tariff: $ 244,749,623 (k) = (e) + (j)

20 Page 18 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Actual PTF Revenue Requirements per Attachment F of the ISO-NE OATT For Costs in 2017 Sheet 2 Attachment F Reference Line Investment Base Section: Pre-1997 Post-1996 Reference Col.A Col.B Col.C Col.D Col.E 1 Transmission Plant II (A)(1)(a) $ 390,947,840 $ 1,706,711,397 Sheet 4, line 1 2 General Plant II (A)(1)(b) 4,435,245 19,362,327 Sheet 4, line 2 3 Intangible Plant II (A)(1)(b) 583,625 2,547,851 Sheet 4, line 3 4 Plant Held For Future Use II (A)(1)(c) 4,215,795 18,404,307 Sheet 4, line 5 5 Total Plant (Line ) 400,182,505 1,747,025,882 6 Accumulated Depreciation II (A)(1)(d) (90,566,656) (395,374,162) Sheet 4, line 10 7 Accumulated Deferred Income Taxes II (A)(1)(e) (34,696,798) (151,470,954) Sheet 4, line 14 8 Loss On Reacquired Debt II (A)(1)(f) 537,858 2,348,053 Sheet 4, line 15 9 Other Regulatory Assets II (A)(1)(g) (36,764,857) (160,499,185) Sheet 4, line Net Investment (Line ) 238,692,052 1,042,029, Prepayments II (A)(1)(h) 150, ,739 Sheet 4, line Materials & Supplies II (A)(1)(II) 1,253,978 5,474,318 Sheet 4, line Cash Working Capital II (A)(1)(j) 912,381 3,927,961 Sheet 4, line Total Investment Base (Line ) $ 241,009,077 $ 1,052,089,652 Revenue Requirement 15 Investment Return and Income Taxes II (A) $ 23,842,546 $ 105,085,136 Sheet 3, Line Depreciation Expense II (B) 8,886,819 38,795,941 Sheet 5, Line 4 17 Amortization of Loss on Reacquired Debt II (C) 29, ,955 Sheet 5, Line 5 18 Investment Tax Credit II (D) (59,883) (261,424) Sheet 5, Line 6 19 Property Taxes II (E) 6,133,810 26,777,513 Sheet 5, Line 7 20 Payroll tax Expense II (F) 126, ,131 Sheet 5, Line Operation & Maintenance Expense II (G) 4,506,902 19,675,154 Sheet 5, Line Administrative & General Expense II (H) 2,691,187 11,748,535 Sheet 5, Line Transmission Related Integrated Facilities Charge II (I) Transmission Support Revenue II (J) (989,725) - Sheet 7, Line 8 25 Transmission Support Expense II (K) 1,090,681 - Sheet 7, Line 8 26 Transmission Related Expense from Generators II (L) Transmission Related Taxes and Fees Charge II (M) 2,421 10,567 Sheet 5, Line Revenue for ST Trans Service Under NEPOOL Tariff II (N) (39,700) (173,395) PTO AC Informational Filing 29 Transmission Rents Received for Electric Property II (O) (3,810,561) - PTO AC Informational Filing 30 Total Revenue Requirements (Sum of Lines 15 through 29) $ 42,410,510 $ 202,339, Total Pre-1997 and Post 1996 (Line 30 [Pre Post-1996]) $ 244,749,623

21 Page 19 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Actual PTF Revenue Requirements per Attachment F of the ISO-NE OATT For Costs in 2017 Sheet 3 Weighted Weighted Capitalization Weighted Cost of Cost of Equity Line Description 12/31/17 Capitalization Capital Capital Portion Reference Col.A Col.B Col.C Col.D Col.E Col.F 1 Long-Term Debt $ 2,394,905, % 3.74% 1.71% FF (c) 2 Preferred Stock 43,000, % 4.56% 0.04% 0.04% FF (c) 3 Common Equity 2,794,008, % 11.07% 5.91% 5.91% FF (c) less 112.3(c) 4 Total Investment Return $ 5,231,913, % 7.66% 5.95% Sum of Lines 1 to 3 ROE per ISO New England Inc. Transmission, Markets and Services Tariff, Section II Attachment F II.A.2.(iii), page Federal Income Tax (FIT) Pre-97 Post-96 6 A= Preferred & Equity Return 5.95% 5.95% Line 4, Col F 7 B= Transmission Related Amortization of ITC $ (59,883) $ (261,424) Sheet 2, Line 18 8 C= Equity AFUDC Component of Depreciation Expense $ 35,816 $ 156,355 PTO AC Informational Filing 9 D= Transmission Investment Base $ 241,009,077 $ 1,052,089,652 Sheet 2, Line FT = Federal Income Tax Rate Note % 21.00% Federal Income Tax Rate 11 FIT = (A+[C+B)/D])(FT)/(1-FT) % % Federal Income Tax 12 ST = State Income Tax Rate 8.00% 8.00% State Tax Rate 13 State Income Tax (SIT) 14 SIT = (A+[(C+B)/D]+Federal Income Tax)(ST)/(1-ST) % % State Income Tax 15 Allowed Return % % Line 4, Col.E + Line 11 + Line D= Transmission Investment Base $ 241,009,077 $ 1,052,089,652 Sheet 2, Line Return $ 23,842,546 $ 104,081,125 Line 15 * Line Incremental return for Post 2003 PTF Investment 19 A= Incremental Return % Per Opinion No. 489 and Opinion No. 531-B 20 Effective Incremental (a') % Line 19 * Line 3, Col C 21 Additional FIT (a'/a') % Incremental FIT = (A' x FT)/(1-FT) 22 Additional SIT (a'/a') % Incremental SIT = (A' + FIT)(ST)/(1-ST) 23 Additional Return % Sum lines 20 thru Post 2003 PTF net Investment $ 202,707,751 Sheet 8, line Additional 100 bp Return Post 2003 PTF Investment $ 1,004,011 Line 23 * Line Total Return $ 23,842,546 $ 105,085,136 Line 17 + Line 25 Weighted Weighted Capitalization Weighted Cost of Cost of Equity 27 Incremental return for PTF 50 Basis Point Adder 12/31/17 Capitalization Capital Capital Portion 28 Long-Term Debt $ 2,394,905, % 29 Preferred Stock 43,000, % 30 Common Equity 2,794,008, % 0.50% 0.27% 0.27% 31 Total Investment Return $ 5,231,913, % 0.27% 0.27% 32 Federal Income Tax (FIT) Pre-97 Post A= Incremental Return 0.27% 0.27% Line 31, Col F 34 B= Transmission Related Amortization of ITC $ - $ - N/A 35 C= Equity AFUDC Component of Depreciation Expense $ - $ - N/A 36 D= Transmission Investment Base $ 241,009,077 $ 1,052,089,652 Sheet 2, Line FT = Federal Income Tax Rate Note % 21.00% Federal Income Tax Rate 38 FIT = (A+[C+B)/D])(FT)/(1-FT) % % Federal Income Tax 39 ST = State Income Tax Rate 8.00% 8.00% State Tax Rate 40 State Income Tax (SIT) 41 SIT = (A+[(C+B)/D]+Federal Income Tax)(ST)/(1-ST) % % State Income Tax 42 Allowed Return % % line 33 + Line 38 + Line D= Transmission Investment Base $ 241,009,077 $ 1,052,089,652 Sheet 2, Line Return 50 bp Adder $ 895,349 $ 3,908,513 Line 42 * Line Total Return 50 bp Adder $ 4,803,862 Line 44 Pre-97 + Line 44 Post Total Incremental Return $ 5,807,873 Line 25 + Line 45 Note 1-21% Federal Income Tax Rate used consistent with the tariff waiver request filed on May 31, 2018.

22 15 Transmission loss on Reacquired Debt $ 11,046, % Note 3 $ 3,494, % $ 537, % $ 2,348,053 FF (c) 20 Transmission Prepayments $ 10,509, % Note 2 $ 978, % $ 150, % $ 657,739 FF (c) 21 Transmission Materials and Supplies $ 8,146, % $ 8,146, % $ 1,253, % $ 5,474,318 FF (c) (c) Footnote Page 20 of 98 ISO New England Inc Transmission, Markets and Services Tariff, Section II Actual PTF Revenue Requirements per Attachment F of the ISO-NE OATT For Costs in 2017 Sheet 4 Wage/Plant Pre-97 PTF Post-96 PTF Allocation Transmission Allocation Pre-97 PTF Allocation Post-96 PTF Line Description Total Factors Allocated Factor Note 1 Allocated Factor Note 1 Allocated Reference Col.A Col.B Col.C Col.D Col.E Col.F Col.G Col.H Col.I (Col.B x Col.C) (Col.D x Col.E) (Col.D x Col.G) Transmission Plant 1 Transmission Plant (exc SCADA) $ 2,539,768,005 $ 2,539,768,005 $ 390,947,840 $ 1,706,711,397 Sheet 6, Line 1 (B) & (C) 2 General Plant $ 309,383, % Note 2 $ 28,813, % $ 4,435, % $ 19,362,327 FF (g) 3 Intangible Plant $ 40,711, % Note 2 $ 3,791, % $ 583, % $ 2,547,851 FF (g) 4 Total Transmission Plant (line ) $ 2,572,372,679 $ 395,966,710 $ 1,728,621,575 5 Transmission Plant Held for Future Use $ 27,387, % $ 27,387, % $ 4,215, % $ 18,404,307 FF (d), (d), (d), (d), (d), (d), (d), (d) Transmission Accumulated Depreciation 6 Transmission Accum. Depreciation $ (577,320,413) % $ (577,320,413) % $ (88,867,508) % $ (387,956,431) Note 5 7 General Plant Accum. Depreciation $ (85,933,001) % Note 2 $ (8,003,026) % $ (1,231,914) % $ (5,377,993) FF (b) 8 General Plant Amortization Reserve $ (7,053,933) % Note 2 $ (656,940) % $ (101,123) % $ (441,460) FF (c) Footnote 9 Intangible Plant Amortization Reserve $ (25,538,296) % Note 2 $ (2,378,407) % $ (366,111) % $ (1,598,278) FF (c) Footnote 10 Total Transmission Acc Dep (line ) $ (588,358,786) $ (90,566,656) $ (395,374,162) Transmission Accumulated Deferred Taxes 11 Accumulated Deferred Taxes (282) Note 4 $ (889,610,050) % Note 3 $ (281,406,789) % $ (43,317,228) % $ (189,103,955) FF (k) (k) Footnote 12 Accumulated Deferred Taxes (283) $ (16,429,156) % $ (2,528,956) % $ (11,040,311) Sheet 9, Line 32, Col D 13 Accumulated Deferred Taxes (190) $ 72,431, % $ 11,149, % $ 48,673,312 Sheet 9, Line 15, Col D 14 Total ADIT (line ) $ (225,404,882) $ (34,696,798) $ (151,470,954) Other Regulatory Assets 16 FAS 106 $ % Note 2 $ % $ % $ - FF ASC 740 Regulatory Asset (FAS 109) $ 83,491, % Note 3 $ 26,410, % $ 4,065, % $ 17,747,768 FF (f) 18 ASC 740 Regulatory Liability (FAS 109) $ (838,534,976) % Note 3 $ (265,250,415) % $ (40,830,262) % $ (178,246,953) FF (f) 19 Total (line ) $ (755,043,368) $ (238,839,849) $ (36,764,857) $ (160,499,185) Cash Working Capital 22 Operation & Maintenance Expense $ 4,506,902 $ 19,675,154 Sheet 5, line Administrative & General Expense $ 2,691,187 $ 11,748,535 Sheet 5, line Net Transmission Support Expense $ 100,956 $ - Sheet 7, line 9 25 Total (line ) $ 7,299,045 $ 31,423, day allowance per tariff 12.50% 12.50% = 45 days / 360 days 27 Cash Working Capital (line 25 * 26) $ 912,381 $ 3,927,961 Note 1 - PTF Allocator (Sheet 6, Line 3) Note 2 - Wages & Salaries Allocator (Sheet 6, Line 13) Note 3 - Plant Allocator (Sheet 6, Line 19) Note 4 - ADIT in FERC Account 282 excludes ADIT associated with transition property from FF (k) Note 5 Account 108, Accumulated Depreciation (A/D) $ (577,718,633) FF (b) Less: A/D related to Asset Retirement Obligations $ 398,220 Note 6 Total Accumulated Depreciation $ (577,320,413) Note 6 - Reflects actual information per the Company's accounting records.

23 5 Amortization of Loss on Reacquired Debt $ 606, % Note 3 $ 191, % $ 29, % $ 128,955 FF (c) 6 Amortization of Investment Tax Credits $ 1,229, % Note 3 $ 389, % $ 59, % $ 261,424 FF (c) Property Taxes 7 Transmission Property Taxes $ 125,970, % Note 3 $ 39,847, % $ 6,133, % $ 26,777,513 FF (i) 23 Transmission Related Taxes and Fees $ 166,906 $ 15, % $ 2, % $ 10,567 PTO AC Informational Filing 24 Payroll Tax Expense $ 8,822, % Note 2 $ 821, % $ 126, % $ 552,131 FF (i), 262.4(i), 262.7(i), (i), (i), (i), (i), (i), (i), (i) ISO New England Inc Transmission, Markets and Services Tariff, Section II Actual PTF Revenue Requirements per Attachment F of the ISO-NE OATT For Costs in 2017 Sheet 5 Wage/Plant Pre-97 PTF Post-96 PTF Allocation Transmission Allocation Pre-97 PTF Allocation Post-96 PTF Line Description Total Factors Allocated Factor Note 1 Allocated Factor Note 1 Allocated Reference Col.A Col.B Col.C Col.D Col.E Col.F Col.G Col.H Col.I (Col.B x Col.C) (Col.D x Col.E) (Col.D x Col.G) Depreciation Expense 1 Transmission Depreciation $ 56,278,784 $ 56,278, % $ 8,663, % $ 37,819,061 FF (f) 2 General Depreciation and Amortization $ 10,056, % Note 2 $ 936, % $ 144, % $ 629,365 FF (f) 3 Intangible Plant Amortization $ 5,552, % Note 2 $ 517, % $ 79, % $ 347,515 FF (f) 4 Total (line ) $ 71,888,000 $ 57,732,485 $ 8,886,819 $ 38,795,941 Transmission Operation and Maintenance 8 Operation and Maintenance $ 440,230,639 $ 440,230, % $ 67,765, % $ 295,832,788 FF (b) 9 less: Transmission of Electricity by Others (565) $ 394,425,014 $ 394,425, % $ 60,714, % $ 265,051,637 FF (b) 10 less: Load Dispatching (561 to 561.4) $ 16,526,904 $ 16,526, % $ 2,544, % $ 11,105,997 FF (b) through (b) 11 O&M for RNS Tariff (line ) $ 29,278,721 $ 29,278,721 $ 4,506,902 $ 19,675,154 Transmission Administrative and General 12 Administrative and General $ 142,166,850 FF (b) 13 less: Merger Costs (923) Note 5 $ 3,250,000 FF (b) Footnote 14 less: Property Insurance (924) $ 930,834 FF (b) 15 less: Regulatory Commission Expenses (928) $ 10,011,774 FF (b) 16 less: Miscellaneous General Expenses (930.2) Note 4 $ 52,118 FF (e) 17 less: General Advertising Expense (930.1) $ 158,361 FF (b) 18 Subtotal (line 12 - sum of lines 13 through 17) $ 127,763, % Note 2 $ 11,898, % $ 1,831, % $ 7,995, plus: Property Insurance (line 14) $ 930, % Note 3 $ 294, % $ 45, % $ 197,867 FF (b) 20 plus: Regulatory Comm. Exp (T FERC Assessments) $ 2,039, % $ 2,039, % $ 313, % $ 1,370,772 FF (d) 21 plus: Merger Costs (line 13) Note 5 $ 3,250, % $ 3,250, % $ 500, % $ 2,183,984 FF (b) Footnote 22 Total A&G for RNS Tariff (Line ) $ 133,984,452 $ 17,483,069 $ 2,691,187 $ 11,748,535 Note 1 - PTF Allocator (Sheet 6, Line 3) Note 2 - Wages & Salaries Allocator (Sheet 6, Line 13) Note 3 - Plant Allocator (Sheet 6, Line 19) Note 4 - NSTAR Green Program costs are excludable for Transmission billing purposes. Note 5 - Merger Cost recovery as authorized in Docket No. ER Page 21 of 98