PSNH Funding 3 Reports Compliance, Omits Core Financials in 10-K

TL;DR

**PSNH Funding LLC 3's 10-K is a non-event for equity traders, confirming operational compliance for its asset-backed bonds but offering no new financial insights.**

AI Summary

PSNH Funding LLC 3, a bankruptcy-remote subsidiary of Public Service Company of New Hampshire (PSNH) and ultimately Eversource, filed its 10-K for the fiscal year ended December 31, 2025. The filing indicates that key financial items such as revenue, net income, and detailed business changes are omitted pursuant to General Instruction J of Form 10-K, as the entity is an issuing entity for asset-backed securities. The company's strategic outlook is focused on compliance with servicing criteria for its asset-backed securities, with both PSNH and The Bank of New York Mellon reporting no material instances of noncompliance in their servicing reports and attestation reports. Key personnel include John M. Moreira as President, CFO, and Treasurer, and Jay S. Buth as Vice President, Controller, and Chief Accounting Officer. The Issuing Entity pays an annual independent manager fee of $2,500 to Corporation Service Company, but no other compensation to its managers or executive officers. The company's primary function revolves around its role in securitizing Rate Reduction Bonds, Series 2018-1, as detailed in its 2018 prospectus.

Why It Matters

This 10-K filing from PSNH Funding LLC 3 is crucial for investors in its Rate Reduction Bonds, Series 2018-1, as it confirms ongoing compliance with servicing criteria by PSNH and The Bank of New York Mellon, indicating stability in the underlying asset management. The omission of traditional financial statements, while standard for this type of entity, means investors must look to the parent company, Eversource, for broader financial health. For employees, the filing highlights the roles of key financial officers like John M. Moreira and Jay S. Buth, who also hold positions at Eversource, underscoring the integrated operational structure. The broader market impact is limited given the specialized nature of this securitization vehicle, but it reflects the continued regulatory adherence within the utility finance sector.

Risk Assessment

Risk Level: low — The risk level is low because PSNH Funding LLC 3 is a bankruptcy-remote entity whose primary function is to hold and service asset-backed securities. The filing explicitly states that both PSNH and The Bank of New York Mellon, as servicing parties, reported no material instances of noncompliance with servicing criteria, as evidenced by Exhibits 33.1, 33.2, 34.1, and 34.2. This indicates robust operational controls for its specific purpose.

Analyst Insight

Investors in PSNH Funding LLC 3's Rate Reduction Bonds should view this filing as a positive confirmation of continued operational compliance by the servicing parties. No immediate action is required, but bondholders should continue to monitor the financial health of the ultimate parent, Eversource, for any indirect impacts on the securitization structure.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

Not Disclosed

Executive Compensation

Key Numbers

• $2,500 — Annual Independent Manager Fee (Paid to Corporation Service Company, representing the only compensation paid by the Issuing Entity to its managers or executive officers.)
• 2025-12-31 — Fiscal Year End (The period covered by this 10-K filing.)
• 2018-05-08 — Indenture Date (Date of the Indenture between PSNH Funding LLC 3 and The Bank of New York Mellon, establishing the securitization structure.)
• 2018-05-01 — Prospectus Date (Date of the Prospectus relating to the Rate Reduction Bonds, Series 2018-1.)

Key Players & Entities

• PSNH FUNDING LLC 3 (company) — Issuing Entity
• Public Service Company of New Hampshire (company) — Depositor, Sponsor, and Servicer
• Eversource (company) — Parent company of PSNH
• Jay S. Buth (person) — Vice President, Controller and Chief Accounting Officer
• John M. Moreira (person) — President, Chief Financial Officer and Treasurer
• Matthew Fallon (person) — Assistant Treasurer and Manager
• Michelle A. Dreyer (person) — Independent Manager
• The Bank of New York Mellon (company) — Indenture Trustee and Securities Intermediary
• Corporation Service Company (company) — Provider of Independent Manager Services
• $2,500 (dollar_amount) — Annual independent manager fee

FAQ

Risk Factors

• Servicing Criteria Compliance [low — regulatory]: The primary operational focus is on compliance with servicing criteria for asset-backed securities. Both PSNH and The Bank of New York Mellon reported no material instances of noncompliance in their servicing reports and attestation reports for the fiscal year ended December 31, 2025.

Industry Context

PSNH Funding LLC 3 operates within the regulated utility sector, specifically focused on securitization of rate-related assets. The industry is characterized by significant regulatory oversight and capital-intensive operations. Companies like PSNH often utilize securitization to manage costs and financing, particularly for items approved by regulators, such as rate reduction initiatives.

Regulatory Implications

The primary regulatory implication for PSNH Funding LLC 3 is its adherence to the servicing criteria for asset-backed securities. Failure to comply could lead to reputational damage and potential legal challenges from investors, impacting the perceived stability of the securitized assets.

What Investors Should Do

1. Monitor compliance reports: Investors should continue to review the annual servicing reports and attestation reports to ensure ongoing adherence to servicing criteria, as this is the entity's core function.
2. Understand the limited scope: Recognize that this 10-K provides minimal financial detail due to its nature as an issuing entity for ABS. Focus should be on the structure and compliance rather than operational performance.
3. Review parent company filings: For a comprehensive view of financial health and strategic direction, investors should consult the filings of the ultimate parent, Eversource, and the servicer, PSNH.

Key Dates

• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2018-05-08: Indenture Date — Establishes the legal framework for the securitization of Rate Reduction Bonds, Series 2018-1, between PSNH Funding LLC 3 and The Bank of New York Mellon.
• 2018-05-01: Prospectus Date — Date of the prospectus detailing the Rate Reduction Bonds, Series 2018-1, which are the primary assets of the Issuing Entity.
• 2018-02-20: Certificate of Formation Filing — Date of the initial filing for the Certificate of Formation of PSNH Funding LLC 3, establishing the legal entity.
• 2018-05-11: Form 8-K Filing — Filing date for the Current Report on Form 8-K that incorporated by reference key documents like the Amended and Restated Limited Liability Company Agreement and the Indenture.

Glossary

Issuing Entity

Refers to PSNH Funding LLC 3, the bankruptcy-remote subsidiary created for the purpose of securitizing assets. (Central to understanding the structure and purpose of the filing, as it is the legal entity issuing the asset-backed securities.)

Asset-Backed Securities (ABS)

Securities whose value and income payments are derived from and collateralized by a specified pool of underlying assets. (The Rate Reduction Bonds, Series 2018-1, are a type of ABS, and the entity's operations are dictated by the requirements of these securities.)

Bankruptcy-Remote Subsidiary

A legal entity structured to be isolated from the bankruptcy risk of its parent company. (PSNH Funding LLC 3 is designed to protect the investors in the asset-backed securities from the financial distress of its parent, PSNH.)

Servicing Criteria

A set of standards and requirements that the servicer and indenture trustee must adhere to in managing the underlying assets of an asset-backed securitization. (Compliance with these criteria is a key focus for PSNH Funding LLC 3, as evidenced by the attestation reports.)

Indenture

A legal document that outlines the terms and conditions between a bond issuer and a trustee, representing the bondholders. (The Indenture dated May 8, 2018, governs the relationship between PSNH Funding LLC 3 and The Bank of New York Mellon for the Rate Reduction Bonds.)

Rate Reduction Bonds

Bonds issued by a utility company to finance costs associated with rate reductions or other regulatory-approved programs, often securitized. (These are the specific assets securitized by PSNH Funding LLC 3, forming the basis of the asset-backed securities.)

Year-Over-Year Comparison

As PSNH Funding LLC 3 is an issuing entity for asset-backed securities and omits detailed financial performance metrics in its 10-K filings, a direct year-over-year comparison of revenue, net income, or margins is not possible. The focus remains on compliance with servicing criteria, with no material changes in noncompliance reported, indicating stability in its operational framework. The key personnel and the annual independent manager fee of $2,500 remain consistent.

Key Financial Figures

• $2,500 — n the annual independent manager fee of $2,500 paid to Corporation Service Company, th

Filing Documents

• tm261115d1_10k.htm (10-K) — 65KB
• tm261115d1_ex31-1.htm (EX-31.1) — 7KB
• tm261115d1_ex33-1.htm (EX-33.1) — 41KB
• tm261115d1_ex33-2.htm (EX-33.2) — 71KB
• tm261115d1_ex34-1.htm (EX-34.1) — 8KB
• tm261115d1_ex34-2.htm (EX-34.2) — 11KB
• tm261115d1_ex35-1.htm (EX-35.1) — 7KB
• tm261115d1_ex34-2img001.jpg (GRAPHIC) — 5KB
• tm261115d1_ex34-2img01.jpg (GRAPHIC) — 2KB
• tm261115d1_ex34-2img003.jpg (GRAPHIC) — 3KB
• tm261115d1_ex34-2img004.jpg (GRAPHIC) — 2KB
• tm261115d1_ex34-2img002.jpg (GRAPHIC) — 1KB
• tm261115d1_ex34-1img02.jpg (GRAPHIC) — 4KB
• tm261115d1_ex34-1img01.jpg (GRAPHIC) — 2KB
• 0001104659-26-036446.txt ( ) — 240KB

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. None.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. None. PART II The following Items have been omitted pursuant to General Instruction J of Form 10-K: · Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. · Item 6. [Reserved]. · Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. · Item 7A. Quantitative and Qualitative Disclosures About Market Risk. · Item 8. Financial Statements and Supplementary Data. · Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. · Item 9A. Controls and Procedures.

Other Information

Item 9B. Other Information. None.

Disclosure Regarding Foreign Jurisdictions

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. Information about our Executive Officers Following are the managers and executive officers of PSNH Funding LLC 3 (the “Issuing Entity”) as of March 30, 2026: Name Age Background Jay S. Buth 56 Vice President, Controller and Chief Accounting Officer of the Issuing Entity since its inception in January 2018, and of Eversource and PSNH since April 2012. As the Controller of Eversource, Mr. Buth has executive financial oversight over the internal controls, accounting, tax and financial reporting of Eversource and PSNH. Mr. Buth is a Certified Public Accountant. John M. Moreira 65 President, Chief Financial Officer and Treasurer and a Manager of the Issuing Entity since May 2022. Prior to this, Mr. Moreira served as Senior Vice President-Finance and Regulatory and Treasurer and a Manager of the Issuing Entity from September 2018 until May 2022. Mr. Moreira has also served as Executive Vice President, Chief Financial Officer and Treasurer of Eversource and PSNH since May 2022. Prior to this, Mr. Moreira served as Executive Vice President, Finance and Regulatory and Treasurer of Eversource and PSNH from September 2018 until May 2022. As the Treasurer of Eversource, Mr. Moreira has executive oversight of Eversource and PSNH's capital structure, liquidity, and financing activities. Mr. Moreira also has executive oversight for ensuring the compliance with regulatory requirements in the states in which Eversource operates, as well as responsibility for filing rate and regulatory activities in those states. Mr. Moreira is a Certified Public Accountant. Based on his experience described above, Mr. Moreira has the skills and qualifications necessary to serve as a Manager of the Issuing Entity. Matthew Fallon 51 Assistant Treasurer and a Manager of the Issuing Entity since October 2025; Assistant Treasurer of Eversource since October 2025, and Assistant Treasurer-Corporate Finan

Executive Compensation

Item 11. Executive Compensation. Other than the annual independent manager fee of $2,500 paid to Corporation Service Company, the Issuing Entity does not pay any compensation to its managers or executive officers.

Security Ownership of Certain Beneficial Owners and

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. None.

Certain Relationships and Related Transactions, and

Item 13. Certain Relationships and Related Transactions, and Director Independence. None. The following Item has been omitted pursuant to General Instruction J of Form 10-K: · Item 14. Principal Accountant Fees and Services. PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. (a)(1) and (a)(2) Financial Statements and Financial Statement Schedules are omitted pursuant to General Instruction J of Form 10-K as listed under Item 8 of this report. (a)(3) and (b) Exhibits filed herewith are designated by an asterisk (*). All exhibits not so designated are incorporated by reference to a prior filing, as indicated. Exhibit No. Description of Exhibit 3.1 Certificate of Formation of PSNH Funding LLC 3 (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form SF-1 of Public Service Company of New Hampshire and PSNH Funding LLC 3 (File Nos. 333-223108 and 333-223108-01) filed on February 20, 2018) 3.2 Amended and Restated Limited Liability Company Agreement of PSNH Funding LLC 3, dated and effective as of May 8, 2018 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K of Public Service Company of New Hampshire and PSNH Funding LLC 3 filed on May 11, 2018) 4.1 Indenture, dated as of May 8, 2018, by and between PSNH Funding LLC 3 and The Bank of New York Mellon, as Indenture Trustee and Securities Intermediary (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Public Service Company of New Hampshire and PSNH Funding LLC 3 filed on May 11, 2018) 4.2 Series Supplement, dated as of May 8, 2018, by and between PSNH Funding LLC 3 and The Bank of New York Mellon, as Indenture Trustee and Securities Intermediary (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of the Public Service Company of New Hampshire and PSNH Funding LLC 3 filed on May 11, 2018) 10.1 Servicing Agreement, dated as of May 8, 2018, by and between PSNH Funding LLC 3 and Public Service Company of New Hampshire, as Servicer (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of Public Service Company of New Hampshire and PSNH Funding LLC 3 filed on May 11, 2018) 10.2 Purchase and S

Form 10-K Summary

Item 16. Form 10-K Summary. None. SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J TO FORM 10-K

(b). Significant Obligors of Pool Assets

Item 1112(b). Significant Obligors of Pool Assets. None.

(b)(2). Credit Enhancement and Other Support, Except

Item 1114(b)(2). Credit Enhancement and Other Support, Except For Certain Derivative Instruments. None.

(b). Certain Derivative Instruments

Item 1115(b). Certain Derivative Instruments. None.

Legal Proceedings

Item 1117. Legal Proceedings. None.

Affiliations and Certain Relationships and Related

Item 1119. Affiliations and Certain Relationships and Related Transactions. See “Affiliations and Certain Relationships and Related Transactions” in the Prospectus, dated May 1, 2018, of the Issuing Entity, CIK 0001730300, File Number 333-223108-01, relating to the Rate Reduction Bonds, Series 2018-1, filed with the Securities and Exchange Commission pursuant to Rule 424(b)(1) of the Securities Act of 1933 on May 2, 2018. 5

Compliance With Applicable Servicing Criteria

Item 1122. Compliance With Applicable Servicing Criteria. PSNH (in its role as servicer) and The Bank of New York Mellon (the “Indenture Trustee” and together with PSNH, the “Servicing Parties”) have each been identified by the registrants as a party participating in the servicing function with respect to the assets backing securities issued by the Issuing Entity. Each of the Servicing Parties has completed a report on an assessment of compliance with the servicing criteria applicable to it (each, a “Servicing Report”), which Servicing Reports are attached as Exhibits 33.1 and 33.2 to this Form 10-K. In addition, each of the Servicing Parties has provided an attestation report (each, an “Attestation Report”) by registered public accounting firms, which Attestation Reports are also attached as Exhibits 34.1 and 34.2 to this Form 10-K. Neither of the Servicing Reports prepared by PSNH or the Indenture Trustee, or the Attestation Reports provided by PSNH or the Indenture Trustee, has identified any material instance of noncompliance with the servicing criteria applicable to the respective Servicing Party.

Servicer Compliance Statement

Item 1123. Servicer Compliance Statement. See Exhibit 35.1 of this Form 10-K. 6 SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT No such annual report, proxy statement, form of proxy or other proxy soliciting material has been sent to the registrant’s security holders. The registrant will not be sending an annual report or proxy material to its security holders subsequent to the filing of this form.

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: March 30, 2026 PSNH FUNDING LLC 3 , as Issuing Entity BY: PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE , as Servicer By: /s/ Jay S. Buth Jay S. Buth Vice President, Controller and Chief Accounting Officer

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View this 10-K filing on SEC EDGAR