Eversource Energy : NSTAR Gas 2025 Annual Report

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NSTAR Gas Company Consolidated Financial Statements as of and for the Years Ended December 31, 2025 and 2024, Together With Independent Auditor's Report NSTAR Gas Company Table of Contents Independent Auditor's Report 1 Consolidated Financial Statements as of and for the Years Ended December 31, 2025 and 2024: Balance Sheets 3 Statements of Income 4 Statements of Comprehensive Income 4 Statements of Common Stockholder's Equity 5 Statements of Cash Flows 6 Notes to Consolidated Financial Statements 7 Deloitte & Touche LLP City Place I, 33rd Floor 185 Asylum Street Hartford, CT 06103-3402 USA Tel: +1 860 725 3000 Fax: +1 860 725 3500 https://www.deloitte.com INDEPENDENT AUDITOR'S REPORT NSTAR Gas Company and subsidiary The Board of Directors and Stockholder of NSTAR Gas Company Berlin, CT Opinion We have audited the consolidated financial statements of NSTAR Gas Company and subsidiary (the "Company"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of income, comprehensive income, common stockholder's equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively referred to as the "financial statements"). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. March 26, 2026 NSTAR GAS COMPANY CONSOLIDATED BALANCE SHEETS As of December 31, (Thousands of Dollars) 2025 2024 ASSETS Current Assets: Cash $ 1,329 $ 1,534 Receivables, Net (net of allowance for uncollectible accounts of $48,463 and $35,932 as of December 31, 2025 and 2024, respectively) 142,587 66,951 Accounts Receivable from Affiliated Companies 61,402 26,548 Unbilled Revenues 22,221 22,306 Natural Gas, Materials and Supplies Inventory 18,928 20,317 Regulatory Assets 262,821 265,645 Taxes Receivable 32,325 5,810 Prepayments 883 826 Total Current Assets 542,496 409,937 Property, Plant and Equipment, Net 2,971,430 2,734,988 Deferred Debits and Other Assets: Regulatory Assets 247,921 207,962 Prepaid Pension and PBOP 107,458 92,669 Other Long-Term Assets 44,154 36,653 Total Deferred Debits and Other Assets 399,533 337,284 Total Assets $ 3,913,459 $ 3,482,209 LIABILITIES AND CAPITALIZATION Current Liabilities: Notes Payable to Eversource Parent $ 68,600 $ 150,100 Long-Term Debt - Current Portion - 75,000 Accounts Payable 86,744 94,359 Accounts Payable to Affiliated Companies 263,249 63,096 Regulatory Liabilities 28,402 4,569 Other Current Liabilities 18,444 17,594 Total Current Liabilities 465,439 404,718 Deferred Credits and Other Liabilities: Accumulated Deferred Income Taxes 388,575 356,360 Regulatory Liabilities 147,919 147,146 Other Long-Term Liabilities 101,958 80,171 Total Deferred Credits and Other Liabilities 638,452 583,677 Long-Term Debt 1,052,116 827,418 Common Stockholder's Equity: Common Stock 71,425 71,425 Capital Surplus, Paid In 1,410,455 1,340,455 Retained Earnings 275,539 254,409 Accumulated Other Comprehensive Income 33 107 Common Stockholder's Equity 1,757,452 1,666,396 Total Liabilities and Capitalization $ 3,913,459 $ 3,482,209 The accompanying notes are an integral part of these consolidated financial statements.

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