Overview Key strengths Key risks Monopolistic electric transmission and distribution utility operations. Lack of operating diversity makes the company largely dependent on Connecticut regulators to sustain its credit quality. Constructive regulatory mechanisms present, such as capital trackers and revenue decoupling. A negative discretionary cash flow forecast indicates future external funding needs. Our view of Connecticut Light&Power Co. (CL&P) as an insulated subsidiary of its parent Eversource Energy allows us to rate CL&P one notch above Eversource. Service territory is prone to storms and weather events. Large customer base supports cash flow. However, given that most of its operations are its electric distribution in Connecticut, the company is somewhat dependent on Connecticut's regulatory framework to sustain its credit quality.
