Eversource Energy : Yankee Gas 2025 Annual Report

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Yankee Gas Services Company Financial Statements as of and for the Years Ended December 31, 2025 and 2024, Together With Independent Auditor's Report Yankee Gas Services Company Table of Contents Independent Auditor's Report 1 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 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 Yankee Gas Services Company The Board of Directors of Yankee Gas Services Company Berlin, CT Opinion We have audited the financial statements of Yankee Gas Services Company (the "Company"), which comprise the balance sheets as of December 31, 2025 and 2024, and the related statements of income, comprehensive income, common stockholder's equity, and cash flows for the years then ended, and the related notes to the 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 YANKEE GAS SERVICES COMPANY BALANCE SHEETS As of December 31, (Thousands of Dollars) 2025 2024 ASSETS Current Assets: Cash $ 75 $ - Receivables, Net (net of allowance for uncollectible accounts of $57,542 and $57,723 as of December 31, 2025 and 2024, respectively) 96,996 63,691 Accounts Receivable from Affiliated Companies 7,148 5,557 Unbilled Revenues 19,918 15,891 Natural Gas, Materials and Supplies Inventory 36,877 34,767 Regulatory Assets 113,597 64,725 Prepayments and Other Current Assets 11,924 10,957 Total Current Assets 286,535 195,588 Property, Plant and Equipment, Net 2,925,374 2,724,201 Deferred Debits and Other Assets: Regulatory Assets 343,249 308,723 Goodwill 287,591 287,591 Prepaid Pension and PBOP 25,785 22,273 Other Long-Term Assets 5,557 10,483 Total Deferred Debits and Other Assets 662,182 629,070 Total Assets $ 3,874,091 $ 3,548,859 LIABILITIES AND CAPITALIZATION Current Liabilities: Notes Payable to Eversource Parent $ 126,900 $ 76,400 Long-Term Debt - Current Portion 90,000 75,000 Accounts Payable 93,044 74,640 Accounts Payable to Affiliated Companies 25,383 19,330 Accrued Interest 21,127 17,583 Regulatory Liabilities 19,930 17,574 Other Current Liabilities 21,470 24,279 Total Current Liabilities 397,854 304,806 Deferred Credits and Other Liabilities: Accumulated Deferred Income Taxes 392,201 346,819 Regulatory Liabilities 217,824 239,504 Other Long-Term Liabilities 73,977 79,581 Total Deferred Credits and Other Liabilities 684,002 665,904 Long-Term Debt 1,111,382 1,016,607 Common Stockholder's Equity: Common Stock 5 5 Capital Surplus, Paid In 1,458,862 1,368,862 Retained Earnings 222,135 192,753 Accumulated Other Comprehensive Loss (149) (78) Common Stockholder's Equity 1,680,853 1,561,542 Total Liabilities and Capitalization $ 3,874,091 $ 3,548,859 The accompanying notes are an integral part of these financial statements.

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