PINX:CNLHO The Connecticut Light & Power Co Pref Share Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q


[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the Quarterly Period Ended June 30, 2012 

 

OR     

[  ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the transition period from ____________ to ____________


Commission
File Number

Registrant; State of Incorporation;
Address; and Telephone Number

I.R.S. Employer
Identification No.

 

 

 

1-5324

NORTHEAST UTILITIES
(a Massachusetts voluntary association)
One Federal Street
Building 111-4
Springfield, Massachusetts 01105
Telephone:  (413) 785-5871

04-2147929


0-00404

THE CONNECTICUT LIGHT AND POWER COMPANY
(a Connecticut corporation)
107 Selden Street
Berlin, Connecticut 06037-1616
Telephone:  (860) 665-5000

06-0303850


1-02301

NSTAR ELECTRIC COMPANY
(a Massachusetts corporation)
800 Boylston Street
Boston, Massachusetts 02199
Telephone:  (617) 424-2000

04-1278810


1-6392

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(a New Hampshire corporation)
Energy Park
780 North Commercial Street
Manchester, New Hampshire 03101-1134
Telephone:  (603) 669-4000

02-0181050


0-7624

WESTERN MASSACHUSETTS ELECTRIC COMPANY
(a Massachusetts corporation)
One Federal Street
Building 111-4
Springfield, Massachusetts 01105
Telephone:  (413) 785-5871

04-1961130


 































Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.


 

Yes

No

 

 

 

 

ü

 


Indicate by check mark whether the registrants have submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).


 

Yes

No

 

 

 

 

ü

 


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.  (Check one):


 

Large
Accelerated Filer

 

Accelerated
Filer

 

Non-accelerated
Filer

 

 

 

 

 

 

Northeast Utilities

ü

 

 

 

 

The Connecticut Light and Power Company

 

 

 

 

ü

NSTAR Electric Company

 

 

 

 

ü

Public Service Company of New Hampshire

 

 

 

 

ü

Western Massachusetts Electric Company

 

 

 

 

ü


Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):


 

Yes

No

 

 

 

Northeast Utilities

 

ü

The Connecticut Light and Power Company

 

ü

NSTAR Electric Company

 

ü

Public Service Company of New Hampshire

 

ü

Western Massachusetts Electric Company

 

ü


Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date:


Company - Class of Stock

Outstanding as of July 31, 2012

Northeast Utilities
Common shares, $5.00 par value

313,804,466 shares

 

 

The Connecticut Light and Power Company
Common stock, $10.00 par value

6,035,205 shares

 

 

NSTAR Electric Company

Common Stock, $1.00 par value

100 shares

 

 

Public Service Company of New Hampshire
Common stock, $1.00 par value

301 shares

 

 

Western Massachusetts Electric Company
Common stock, $25.00 par value

434,653 shares

 

 


Northeast Utilities, directly or indirectly, holds all of the 6,035,205 shares, 100 shares, 301 shares, and 434,653 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company, respectively.  


NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company each meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.






GLOSSARY OF TERMS


 

The following is a glossary of abbreviations or acronyms that are found in this report.  

 

 

CURRENT OR FORMER NU COMPANIES, SEGMENTS OR INVESTMENTS:

 

 

CL&P

The Connecticut Light and Power Company

CYAPC

Connecticut Yankee Atomic Power Company

HWP

HWP Company, formerly the Holyoke Water Power Company

MYAPC

Maine Yankee Atomic Power Company

NGS

Northeast Generation Services Company and subsidiaries

NPT

Northern Pass Transmission LLC

NSTAR

Parent Company of NSTAR Electric, NSTAR Gas and other subsidiaries (prior to the merger with NU)

NSTAR Electric

NSTAR Electric Company

NSTAR Electric & Gas

NSTAR Electric & Gas Corporation, a Northeast Utilities service company

NSTAR Gas

NSTAR Gas Company

NSTAR LLC

Post-merger parent company of NSTAR Electric, NSTAR Gas and other subsidiaries, and successor to NSTAR

NU Enterprises

NU Enterprises, Inc., the parent company of Select Energy, NGS, NGS Mechanical, Select Energy Contracting, Inc. and E.S. Boulos Company

NU or the Company

Northeast Utilities and subsidiaries

NU parent and other companies

NU parent and other companies is comprised of NU parent, NSTAR LLC, NSTAR Electric & Gas, NUSCO and other subsidiaries, including NU Enterprises, NSTAR Communications, Inc., HWP, RRR (a real estate subsidiary), the non-energy-related subsidiaries of Yankee (Yankee Energy Services Company and Yankee Energy Financial Services Company), and the consolidated operations of CYAPC and YAEC

NUSCO

Northeast Utilities Service Company

NUTV

NU Transmission Ventures, Inc., the parent company of NPT and Renewable Properties, Inc.

PSNH

Public Service Company of New Hampshire

Regulated companies

NU's Regulated companies, comprised of the electric distribution and transmission businesses of CL&P, NSTAR Electric, PSNH, and WMECO, the generation activities of PSNH and WMECO, NSTAR Gas, Yankee Gas, and NPT

RRR

The Rocky River Realty Company

Select Energy

Select Energy, Inc.

WMECO

Western Massachusetts Electric Company

YAEC

Yankee Atomic Electric Company

Yankee

Yankee Energy System, Inc.

Yankee Companies

CYAPC, YAEC and MYAPC

Yankee Gas

Yankee Gas Service Company

REGULATORS:

 

DEEP

Connecticut Department of Energy and Environmental Protection

DOE

U.S. Department of Energy

DOER

Massachusetts Department of Energy Resources

DPU

Massachusetts Department of Public Utilities

FERC

Federal Energy Regulatory Commission

ISO-NE

ISO New England, Inc., the New England Independent System Operator

MA DEP 

Massachusetts Department of Environmental Protection 

NHPUC

New Hampshire Public Utilities Commission

PURA

Connecticut Public Utilities Regulatory Authority

SEC

Securities and Exchange Commission

SJC

Supreme Judicial Court of Massachusetts

OTHER: 

 

AFUDC 

Allowance For Funds Used During Construction 

AOCI

Accumulated Other Comprehensive Income/(Loss)

C&LM 

Conservation and Load Management 

CfD

Contract for Differences

Clean Air Project

The construction of a wet flue gas desulphurization system, known as “scrubber technology,” to reduce mercury emissions of the Merrimack coal-fired generation station in Bow, New Hampshire

CPSL

Capital Projects Scheduling List

CTA 

Competitive Transition Assessment 



i






CWIP

Construction work in progress

EPS 

Earnings Per Share 

ERISA

Employee Retirement Income Security Act of 1974

ES 

Default Energy Service 

ESPP

Employee Stock Purchase Plan

Fitch

Fitch Ratings

FMCC 

Federally Mandated Congestion Charge 

FTR 

Financial Transmission Rights 

GAAP 

Accounting principles generally accepted in the United States of America 

GSC 

Generation Service Charge 

GSRP

Greater Springfield Reliability Project

GWh 

Gigawatt-Hours 

HG&E 

Holyoke Gas and Electric, a municipal department of the town of Holyoke, MA

HQ

Hydro-Québec, a corporation wholly owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada

HVDC

High voltage direct current

Hydro Renewable Energy

Hydro Renewable Energy, Inc., a wholly owned subsidiary of Hydro-Québec

ISO-NE Tariff

ISO-NE FERC Transmission, Markets and Services Tariff

kV 

Kilovolt 

kW

Kilowatt (equal to one thousand watts)

kWh

Kilowatt-Hours (the basic unit of electricity energy equal to one kilowatt of power supplied for one hour)

LOC 

Letter of Credit 

LRS

Supplier of last resort service

MGP 

Manufactured Gas Plant 

MMBtu

One million British thermal units

Moody's

Moody's Investors Services, Inc.

MW 

Megawatt 

MWh 

Megawatt-Hours 

NEEWS 

New England East-West Solution

Northern Pass

The high voltage direct current transmission line project from Canada into New Hampshire

NU Money Pool

Northeast Utilities Money Pool

NU supplemental benefit trust 

The NU Trust Under Supplemental Executive Retirement Plan 

NU 2011 Form 10-K

The Northeast Utilities and Subsidiaries 2011 combined Annual Report on Form 10-K as filed with the SEC

NSTAR 2011 Form 10-K

NSTAR 2011 Annual Report on Form 10-K as filed with the SEC

NSTAR Electric 2011 Form 10-K

NSTAR Electric 2011 Annual Report on Form 10-K as filed with the SEC

PAM

Pension and PBOP Rate Adjustment Mechanism

PBOP 

Postretirement Benefits Other Than Pension 

PBOP Plan

Postretirement Benefits Other Than Pension Plan that provides certain retiree health care benefits, primarily medical and dental, and life insurance benefits

PCRBs 

Pollution Control Revenue Bonds 

Pension Plan

Single uniform noncontributory defined benefit retirement plan

PPA

Pension Protection Act

RECs

Renewable Energy Certificates

Regulatory ROE 

The average cost of capital method for calculating the return on equity related to the distribution and generation business segment excluding the wholesale transmission segment

ROE 

Return on Equity 

RRB 

Rate Reduction Bond or Rate Reduction Certificate

RSUs 

Restricted share units 

S&P

Standard & Poor's Financial Services LLC

SBC 

Systems Benefits Charge 

SCRC

Stranded Cost Recovery Charge

SERP 

Supplemental Executive Retirement Plan 

SIP

Simplified Incentive Plan

SS

Standard service

TCAM 

Transmission Cost Adjustment Mechanism 

TSA

Transmission Service Agreement

UI 

The United Illuminating Company 



ii



NORTHEAST UTILITIES AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY
NSTAR ELECTRIC COMPANY AND SUBSIDIARIES
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY

TABLE OF CONTENTS



 

Page

 

 

PART I - FINANCIAL INFORMATION

 

 

ITEM 1 - Unaudited Condensed Consolidated Financial Statements for the Following Companies:

 

 

 

Northeast Utilities and Subsidiaries (Unaudited)

 

 

Condensed Consolidated Balance Sheets – June 30, 2012 and December 31, 2011

1

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2012 and 2011

3

 

Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2012 and 2011

3

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2012 and 2011

4

 

The Connecticut Light and Power Company and Subsidiary (Unaudited)

 

 

Condensed Consolidated Balance Sheets – June 30, 2012 and December 31, 2011

5

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2012 and 2011

7

 

Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2012 and 2011

7

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2012 and 2011

8

 

NSTAR Electric Company and Subsidiaries (Unaudited)

 

 

 

Condensed Consolidated Balance Sheets – June 30, 2012 and December 31, 2011

9

 

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2012 and 2011

11

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2012 and 2011

12

 

 

Public Service Company of New Hampshire and Subsidiaries (Unaudited)

 

 

Condensed Consolidated Balance Sheets – June 30, 2012 and December 31, 2011

13

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2012 and 2011

15

 

Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2012 and 2011

15

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2012 and 2011

16

 

Western Massachusetts Electric Company and Subsidiary (Unaudited)

 

 

Condensed Consolidated Balance Sheets – June 30, 2012 and December 31, 2011

17

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2012 and 2011

19

 

Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2012 and 2011

19

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2012 and 2011

20

 

Combined Notes to Condensed Consolidated Financial Statements

21

 




iii




 

Page

 

 

ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations for the following companies:

 

 

Northeast Utilities and Subsidiaries

49

 

 

The Connecticut Light and Power Company and Subsidiary

67

 

 

NSTAR Electric Company and Subsidiaries

69

 

 

Public Service Company of New Hampshire and Subsidiaries

72

 

 

Western Massachusetts Electric Company and Subsidiary

74

 

 

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk

76

 

 

ITEM 4 – Controls and Procedures

77

 

 

PART II – OTHER INFORMATION

 

 

 

ITEM 1 – Legal Proceedings

78

 

 

ITEM 1A – Risk Factors

78

 

 

ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds

78

 

 

ITEM 6 – Exhibits

79

 

 

SIGNATURES

81

 

 



iv



This Page Intentionally Left Blank



v




NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

$

 28,483 

 

$

 6,559 

 

Receivables, Net

 

 661,910 

 

 

 488,002 

 

Unbilled Revenues

 

 202,262 

 

 

 175,207 

 

Fuel, Materials and Supplies

 

 262,562 

 

 

 248,958 

 

Regulatory Assets

 

 624,397 

 

 

 255,144 

 

Marketable Securities

 

 79,231 

 

 

 70,970 

 

Prepayments and Other Current Assets

 

 95,160 

 

 

 112,632 

Total Current Assets

 

 1,954,005 

 

 

 1,357,472 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 16,054,913 

 

 

 10,403,065 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 5,201,154 

 

 

 3,267,710 

 

Goodwill

 

 3,518,454 

 

 

 287,591 

 

Marketable Securities

 

 372,302 

 

 

 60,311 

 

Derivative Assets

 

 93,616 

 

 

 98,357 

 

Other Long-Term Assets

 

 311,856 

 

 

 172,560 

Total Deferred Debits and Other Assets

 

 9,497,382 

 

 

 3,886,529 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 27,506,300 

 

$

 15,647,066 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 



























1



NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

  Notes Payable to Banks

$

 1,248,500 

 

$

 317,000 

  Long-Term Debt - Current Portion

 

 683,208 

 

 

 331,582 

  Accounts Payable

 

 600,995 

 

 

 633,282 

  Regulatory Liabilities

 

 203,767 

 

 

 167,844 

  Derivative Liabilities

 

 113,188 

 

 

 107,558 

  Other Current Liabilities

 

 640,809 

 

 

 390,416 

Total Current Liabilities

 

 3,490,467 

 

 

 1,947,682 

 

 

 

 

 

 

 

 

Rate Reduction Bonds

 

 160,133 

 

 

 112,260 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

  Accumulated Deferred Income Taxes

 

 3,249,323 

 

 

 1,868,316 

  Regulatory Liabilities

 

 551,690 

 

 

 266,145 

  Derivative Liabilities

 

 946,621 

 

 

 959,876 

  Accrued Pension, SERP and PBOP

 

 2,064,069 

 

 

 1,326,037 

  Other Long-Term Liabilities

 

 884,317 

 

 

 420,011 

Total Deferred Credits and Other Liabilities

 

 7,696,020 

 

 

 4,840,385 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

  Long-Term Debt

 

 6,936,473 

 

 

 4,614,913 

 

 

 

 

 

 

 

 

   Noncontrolling Interest - Preferred Stock of Subsidiaries

 

 155,568 

 

 

 116,200 

 

 

 

 

 

 

 

 

   Equity:

 

 

 

 

 

 

Common Shareholders' Equity:

 

 

 

 

 

 

  Common Shares

 

 1,662,251 

 

 

 980,264 

 

  Capital Surplus, Paid In

 

 6,178,698 

 

 

 1,797,884 

 

  Retained Earnings

 

 1,635,709 

 

 

 1,651,875 

 

  Accumulated Other Comprehensive Loss

 

 (66,387)

 

 

 (70,686)

 

  Treasury Stock

 

 (342,632)

 

 

 (346,667)

   Common Shareholders' Equity

 

 9,067,639 

 

 

 4,012,670 

   Noncontrolling Interests

 

 - 

 

 

 2,956 

  Total Equity

 

 9,067,639 

 

 

 4,015,626 

Total Capitalization

 

 16,159,680 

 

 

 8,746,739 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 27,506,300 

 

$

 15,647,066 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



























2



NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars, Except Share Information)

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 1,628,684 

 

$

 1,047,481 

 

$

 2,728,307 

 

$

 2,282,732 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

 

 542,014 

 

 

 382,542 

 

 

 937,358 

 

 

 879,246 

 

Operations and Maintenance

 

 529,977 

 

 

 269,701 

 

 

 791,940 

 

 

 533,323 

 

Depreciation

 

 144,485 

 

 

 73,637 

 

 

 225,324 

 

 

 147,588 

 

Amortization of Regulatory Assets, Net

 

 25,590 

 

 

 16,992 

 

 

 31,016 

 

 

 50,491 

 

Amortization of Rate Reduction Bonds

 

 40,752 

 

 

 17,086 

 

 

 59,100 

 

 

 34,367 

 

Energy Efficiency Programs

 

 73,489 

 

 

 29,970 

 

 

 110,762 

 

 

 64,403 

 

Taxes Other Than Income Taxes

 

 112,862 

 

 

 79,419 

 

 

 198,899 

 

 

 167,823 

 

 

Total Operating Expenses

 

 1,469,169 

 

 

 869,347 

 

 

 2,354,399 

 

 

 1,877,241 

Operating Income

 

 159,515 

 

 

 178,134 

 

 

 373,908 

 

 

 405,491 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 86,925 

 

 

 57,044 

 

 

 146,892 

 

 

 114,444 

 

Interest on Rate Reduction Bonds

 

 2,056 

 

 

 2,293 

 

 

 3,487 

 

 

 4,871 

 

Other Interest

 

 66 

 

 

 2,897 

 

 

 5,116 

 

 

 1,468 

 

 

Interest Expense

 

 89,047 

 

 

 62,234 

 

 

 155,495 

 

 

 120,783 

Other Income, Net

 

 1,806 

 

 

 7,334 

 

 

 10,580 

 

 

 17,647 

Income Before Income Tax Expense

 

 72,274 

 

 

 123,234 

 

 

 228,993 

 

 

 302,355 

Income Tax Expense

 

 26,055 

 

 

 44,515 

 

 

 82,019 

 

 

 108,052 

Net Income

 

 46,219 

 

 

 78,719 

 

 

 146,974 

 

 

 194,303 

Net Income Attributable to Noncontrolling Interests

 

 1,880 

 

 

 1,441 

 

 

 3,373 

 

 

 2,870 

Net Income Attributable to Controlling Interest

$

 44,339 

 

$

 77,278 

 

$

 143,601 

 

$

 191,433 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Earnings Per Common Share

$

 0.15 

 

$

 0.44 

 

$

 0.60 

 

$

 1.08 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared Per Common Share

$

 0.34 

 

$

 0.28 

 

$

 0.63 

 

$

 0.55 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 301,047,753 

 

 

 177,347,374 

 

 

 239,551,735 

 

 

 177,267,791 

 

Diluted

 

 301,816,884 

 

 

 177,626,992 

 

 

 240,127,169 

 

 

 177,553,995 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 46,219 

 

$

 78,719 

 

$

 146,974 

 

$

 194,303 

Other Comprehensive Income/(Loss), Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 516 

 

 

 (5,095)

 

 

 939 

 

 

 (3,922)

 

Changes in Unrealized Gains on Other Securities

 

 160 

 

 

 149 

 

 

 194 

 

 

 144 

 

Change in Funded Status of Pension, SERP and PBOP

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit Plans

 

 1,759 

 

 

 422 

 

 

 3,166 

 

 

 1,357 

Other Comprehensive Income/(Loss), Net of Tax

 

 2,435 

 

 

 (4,524)

 

 

 4,299 

 

 

 (2,421)

Comprehensive Income Attributable to Noncontrolling

 

 

 

 

 

 

 

 

 

 

 

 

Interests

 

 (1,880)

 

 

 (1,441)

 

 

 (3,373)

 

 

 (2,870)

Comprehensive Income Attributable to Controlling Interest

$

 46,774 

 

$

 72,754 

 

$

 147,900 

 

$

 189,012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 



























3



NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 146,974 

 

$

 194,303 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Bad Debt Expense

 

 13,384 

 

 

 9,374 

 

 

 Depreciation

 

 225,324 

 

 

 147,588 

 

 

 Deferred Income Taxes

 

 59,509 

 

 

 95,293 

 

 

 Pension, SERP and PBOP Expense

 

 97,378 

 

 

 69,654 

 

 

 Pension and PBOP Contributions

 

 (164,294)

 

 

 (37,530)

 

 

 Regulatory (Under)/Over Recoveries, Net

 

 (54,491)

 

 

 41,612 

 

 

 Amortization of Regulatory Assets, Net

 

 31,016 

 

 

 50,491 

 

 

 Amortization of Rate Reduction Bonds

 

 59,100 

 

 

 34,367 

 

 

 Derivative Assets and Liabilities

 

 (5,090)

 

 

 (9,272)

 

 

 Other

 

 11,226 

 

 

 (7,192)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 83,395 

 

 

 80,696 

 

 

 Fuel, Materials and Supplies

 

 40,695 

 

 

 12,992 

 

 

 Taxes Receivable/Accrued, Net

 

 17,709 

 

 

 48,933 

 

 

 Accounts Payable

 

 (176,533)

 

 

 (23,981)

 

 

 Other Current Assets and Liabilities, Net

 

 (64,899)

 

 

 (20,633)

Net Cash Flows Provided by Operating Activities

 

 320,403 

 

 

 686,695 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (690,376)

 

 

 (468,526)

 

Proceeds from Sales of Marketable Securities

 

 132,580 

 

 

 72,369 

 

Purchases of Marketable Securities

 

 (143,225)

 

 

 (73,564)

 

Proceeds from Sale of Assets

 

 - 

 

 

 46,841 

 

Other Investing Activities

 

 11,274 

 

 

 (4,828)

Net Cash Flows Used in Investing Activities

 

 (689,747)

 

 

 (427,708)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Shares

 

 (159,708)

 

 

 (97,207)

 

Cash Dividends on Preferred Stock

 

 (3,269)

 

 

 (2,779)

 

Increase/(Decrease) in Short-Term Debt

 

 558,500 

 

 

 (130,000)

 

Issuance of Long-Term Debt

 

 300,000 

 

 

 122,000 

 

Retirements of Long-Term Debt

 

 (267,699)

 

 

 (124,086)

 

Retirements of Rate Reduction Bonds

 

 (36,439)

 

 

 (34,320)

 

Other Financing Activities

 

 (117)

 

 

 (883)

Net Cash Flows Provided by/(Used in) Financing Activities

 

 391,268 

 

 

 (267,275)

Net Increase/(Decrease) in Cash and Cash Equivalents

 

 21,924 

 

 

 (8,288)

Cash and Cash Equivalents - Beginning of Period

 

 6,559 

 

 

 23,395 

Cash and Cash Equivalents - End of Period

$

 28,483 

 

$

 15,107 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



4



THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 4,523 

 

$

 1 

 

Receivables, Net

 

 259,940 

 

 

 295,028 

 

Accounts Receivable from Affiliated Companies

 

 973 

 

 

 1,548 

 

Unbilled Revenues

 

 82,355 

 

 

 94,995 

 

Regulatory Assets

 

 196,145 

 

 

 170,197 

 

Materials and Supplies

 

 63,449 

 

 

 61,102 

 

Prepayments and Other Current Assets

 

 21,535 

 

 

 53,920 

Total Current Assets

 

 628,920 

 

 

 676,791 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 6,000,783 

 

 

 5,827,384 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 2,025,569 

 

 

 2,103,830 

 

Derivative Assets

 

 91,146 

 

 

 93,755 

 

Other Long-Term Assets

 

 88,953 

 

 

 89,636 

Total Deferred Debits and Other Assets

 

 2,205,668 

 

 

 2,287,221 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 8,835,371 

 

$

 8,791,396 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



























5



THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to Banks

$

 330,000 

 

$

 31,000 

 

Notes Payable to Affiliated Companies

 

 5,000 

 

 

 58,525 

 

Long-Term Debt - Current Portion

 

-   

 

 

 62,000 

 

Accounts Payable

 

 193,582 

 

 

 340,321 

 

Accounts Payable to Affiliated Companies

 

 44,666 

 

 

 53,439 

 

Obligations to Third Party Suppliers

 

 62,459 

 

 

 67,967 

 

Accrued Taxes

 

 91,297 

 

 

 59,046 

 

Regulatory Liabilities

 

 88,373 

 

 

 108,291 

 

Derivative Liabilities

 

 97,704 

 

 

 95,881 

 

Other Current Liabilities

 

 87,763 

 

 

 102,065 

Total Current Liabilities

 

 1,000,844 

 

 

 978,535 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 1,241,020 

 

 

 1,215,989 

 

Regulatory Liabilities

 

 130,573 

 

 

 139,307 

 

Derivative Liabilities

 

 910,115 

 

 

 935,849 

 

Accrued Pension, SERP and PBOP

 

 248,624 

 

 

 260,571 

 

Other Long-Term Liabilities

 

 204,227 

 

 

 215,640 

Total Deferred Credits and Other Liabilities

 

 2,734,559 

 

 

 2,767,356 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 2,584,036 

 

 

 2,521,753 

 

 

 

 

 

 

 

 

   Preferred Stock Not Subject to Mandatory Redemption

 

 116,200 

 

 

 116,200 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

 60,352 

 

 

 60,352 

 

 

Capital Surplus, Paid In

 

 1,614,307 

 

 

 1,613,503 

 

 

Retained Earnings

 

 727,096 

 

 

 735,948 

 

 

Accumulated Other Comprehensive Loss

 

 (2,023)

 

 

 (2,251)

 

Common Stockholder's Equity

 

 2,399,732 

 

 

 2,407,552 

Total Capitalization

 

 5,099,968 

 

 

 5,045,505 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 8,835,371 

 

$

 8,791,396 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



























6



THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 562,141 

 

$

 608,013 

 

$

 1,154,106 

 

$

 1,281,695 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 196,806 

 

 

 230,380 

 

 

 417,697 

 

 

 502,338 

 

Operations and Maintenance

 

 205,471 

 

 

 136,669 

 

 

 338,373 

 

 

 272,411 

 

Depreciation

 

 41,519 

 

 

 38,442 

 

 

 82,588 

 

 

 77,917 

 

Amortization of Regulatory Assets, Net

 

 3,263 

 

 

 13,705 

 

 

 11,257 

 

 

 32,339 

 

Energy Efficiency Programs

 

 20,995 

 

 

 21,291 

 

 

 42,968 

 

 

 44,715 

 

Taxes Other Than Income Taxes

 

 53,706 

 

 

 52,727 

 

 

 108,978 

 

 

 111,193 

 

 

Total Operating Expenses

 

 521,760 

 

 

 493,214 

 

 

 1,001,861 

 

 

 1,040,913 

Operating Income

 

 40,381 

 

 

 114,799 

 

 

 152,245 

 

 

 240,782 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 31,696 

 

 

 33,430 

 

 

 63,218 

 

 

 66,758 

 

Other Interest

 

 2,075 

 

 

 868 

 

 

 4,060 

 

 

 (2,708)

 

 

Interest Expense

 

 33,771 

 

 

 34,298 

 

 

 67,278 

 

 

 64,050 

Other Income, Net

 

 447 

 

 

 2,058 

 

 

 5,747 

 

 

 6,663 

Income Before Income Tax Expense

 

 7,057 

 

 

 82,559 

 

 

 90,714 

 

 

 183,395 

Income Tax Expense

 

 124 

 

 

 29,924 

 

 

 29,796 

 

 

 66,423 

Net Income

$

 6,933 

 

$

 52,635 

 

$

 60,918 

 

$

 116,972 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 6,933 

 

$

 52,635 

 

$

 60,918 

 

$

 116,972 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 111 

 

 

 111 

 

 

 222 

 

 

 222 

 

Changes in Unrealized Gains on Other Securities

 

 5 

 

 

 5 

 

 

 6 

 

 

 5 

Other Comprehensive Income, Net of Tax

 

 116 

 

 

 116 

 

 

 228 

 

 

 227 

Comprehensive Income

$

 7,049 

 

$

 52,751 

 

$

 61,146 

 

$

 117,199 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 



























7



THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 60,918 

 

$

 116,972 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Bad Debt Expense

 

 743 

 

 

 2,252 

 

 

 Depreciation

 

 82,588 

 

 

 77,917 

 

 

 Deferred Income Taxes

 

 30,874 

 

 

 60,425 

 

 

 Pension, SERP and PBOP Expense, Net of PBOP Contributions

 

 12,030 

 

 

 9,868 

 

 

 Regulatory (Under)/Over Recoveries, Net

 

 (19,596)

 

 

 24,852 

 

 

 Amortization of Regulatory Assets, Net

 

 11,257 

 

 

 32,339 

 

 

 Other

 

 (12,821)

 

 

 (17,752)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 38,253 

 

 

 34,192 

 

 

 Materials and Supplies

 

 (2,457)

 

 

 (11,761)

 

 

 Taxes Receivable/Accrued, Net

 

 39,985 

 

 

 31,797 

 

 

 Accounts Payable

 

 (170,151)

 

 

 (12,078)

 

 

 Other Current Assets and Liabilities, Net

 

 (24,122)

 

 

 9,968 

Net Cash Flows Provided by Operating Activities

 

 47,501 

 

 

 358,991 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (220,712)

 

 

 (201,966)

 

Increase in NU Money Pool Lending

 

 - 

 

 

 (24,125)

 

Proceeds from Sale of Assets

 

 - 

 

 

 46,841 

 

Other Investing Activities

 

 3,460 

 

 

 (6,489)

Net Cash Flows Used in Investing Activities

 

 (217,252)

 

 

 (185,739)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (66,991)

 

 

 (168,744)

 

Cash Dividends on Preferred Stock

 

 (2,779)

 

 

 (2,779)

 

Increase in Short-Term Debt

 

 299,000 

 

 

 - 

 

Decrease in NU Money Pool Borrowings

 

 (53,525)

 

 

 (6,225)

 

Other Financing Activities

 

 (1,432)

 

 

 (188)

Net Cash Flows Provided by/(Used in) Financing Activities

 

 174,273 

 

 

 (177,936)

Net Increase/(Decrease) in Cash

 

 4,522 

 

 

 (4,684)

Cash - Beginning of Period

 

 1 

 

 

 9,762 

Cash - End of Period

$

 4,523 

 

$

 5,078 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



8



NSTAR ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

$

 9,044 

 

$

 9,373 

 

Receivables, Net

 

 211,388 

 

 

 232,828 

 

Accounts Receivable from Affiliated Companies

 

 48,254 

 

 

 389,652 

 

Unbilled Revenues

 

 53,409 

 

 

 40,380 

 

Taxes Receivable

 

 35,642 

 

 

 5,664 

 

Regulatory Assets

 

 326,630 

 

 

 323,871 

 

Prepayments and Other Current Assets

 

21,588 

 

 

31,470 

Total Current Assets

 

 705,955 

 

 

 1,033,238 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 4,555,454 

 

 

 4,447,258 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 1,594,571 

 

 

 1,680,595 

 

Other Long-Term Assets

 

 75,516 

 

 

 78,273 

Total Deferred Debits and Other Assets

 

 1,670,087 

 

 

 1,758,868 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 6,931,496 

 

$

 7,239,364 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



























9



NSTAR ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to Banks

$

 344,500 

 

$

 141,500 

 

Long-Term Debt - Current Portion

 

 401,513 

 

 

 400,688 

 

Accounts Payable

 

 114,308 

 

 

 150,581 

 

Accounts Payable to Affiliated Companies

 

 146,858 

 

 

 514,377 

 

Accumulated Deferred Income Taxes - Current Portion

 

 94,398 

 

 

 101,819 

 

Regulatory Liabilities

 

 52,636 

 

 

 41,579 

 

Other Current Liabilities

 

103,606 

 

 

103,634 

Total Current Liabilities

 

 1,257,819 

 

 

 1,454,178 

 

 

 

 

 

 

 

 

Rate Reduction Bonds

 

 84,312 

 

 

 127,860 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 1,300,332 

 

 

 1,310,180 

 

Regulatory Liabilities

 

 253,766 

 

 

 239,858 

 

Accrued Pension

 

 385,235 

 

 

 357,685 

 

Payable to Affiliated Companies

 

 70,569 

 

 

 75,905 

 

Other Long-Term Liabilities

 

 189,803 

 

 

 195,606 

Total Deferred Credits and Other Liabilities

 

 2,199,705 

 

 

 2,179,234 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 1,201,871 

 

 

 1,203,344 

 

 

 

 

 

 

 

 

   Preferred Stock Not Subject to Mandatory Redemption

 

 43,000 

 

 

 43,000 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

 - 

 

 

 - 

 

 

Capital Surplus, Paid In

 

 992,625 

 

 

 992,625 

 

 

Retained Earnings

 

 1,152,164 

 

 

 1,239,123 

 

Common Stockholder's Equity

 

 2,144,789 

 

 

 2,231,748 

Total Capitalization

 

 3,389,660 

 

 

 3,478,092 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 6,931,496 

 

$

 7,239,364 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.




10





NSTAR ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 534,626 

 

$

 552,346 

 

$

 1,091,102 

 

$

 1,129,821 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 180,502 

 

 

 212,055 

 

 

 399,512 

 

 

 455,062 

 

Operations and Maintenance

 

 109,038 

 

 

 87,823 

 

 

 257,218 

 

 

 185,053 

 

Depreciation

 

 42,669 

 

 

 41,637 

 

 

 85,198 

 

 

 83,157 

 

Amortization of Regulatory Assets, Net

 

 22,144 

 

 

 13,407 

 

 

 46,024 

 

 

 29,669 

 

Amortization of Rate Reduction Bonds

 

 22,581 

 

 

 22,581 

 

 

 45,161 

 

 

 45,161 

 

Energy Efficiency Programs

 

 35,487 

 

 

 32,865 

 

 

 82,391 

 

 

 72,956 

 

Taxes Other Than Income Taxes

 

 28,308 

 

 

 26,423 

 

 

 59,169 

 

 

 55,489 

 

 

Total Operating Expenses

 

 440,729 

 

 

 436,791 

 

 

 974,673 

 

 

 926,547 

Operating Income

 

 93,897 

 

 

 115,555 

 

 

 116,429 

 

 

 203,274 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 22,279 

 

 

 22,583 

 

 

 44,567 

 

 

 45,176 

 

Interest on Rate Reduction Bonds

 

 927 

 

 

 1,839 

 

 

 2,253 

 

 

 4,053 

 

Other Interest

 

 (5,597)

 

 

 (8,082)

 

 

 (11,433)

 

 

 (15,329)

 

 

Interest Expense

 

 17,609 

 

 

 16,340 

 

 

 35,387 

 

 

 33,900 

Other Income, Net

 

 6 

 

 

 910 

 

 

 1,227 

 

 

 1,719 

Income Before Income Tax Expense

 

 76,294 

 

 

 100,125 

 

 

 82,269 

 

 

 171,093 

Income Tax Expense

 

 30,812 

 

 

 39,471 

 

 

 32,847 

 

 

 67,546 

Net Income

$

 45,482 

 

$

 60,654 

 

$

 49,422 

 

$

 103,547 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



























11



NSTAR ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 49,422 

 

$

 103,547 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Bad Debt Expense

 

 46,726 

 

 

 8,284 

 

 

 Depreciation

 

 85,198 

 

 

 83,157 

 

 

 Deferred Income Taxes

 

 (17,069)

 

 

 3,413 

 

 

 Pension, SERP and PBOP Expense, Net of Pension and PBOP Contributions

 

 16,822 

 

 

 (31,298)

 

 

 Regulatory Overrecoveries, Net

 

 16,371 

 

 

 70,319 

 

 

 Amortization of Regulatory Assets, Net

 

 46,024 

 

 

 29,669 

 

 

 Amortization of Rate Reduction Bonds

 

 45,161 

 

 

 45,161 

 

 

 Other

 

 (24,559)

 

 

 8,807 

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (19,555)

 

 

 (33,830)

 

 

 Materials and Supplies

 

 10,387 

 

 

 (4,673)

 

 

 Taxes Receivable/Accrued, Net

 

 (29,978)

 

 

 174,103 

 

 

 Accounts Payable

 

 (64,317)

 

 

 (100,840)

 

 

 Other Current Assets and Liabilities, Net

 

 (1,222)

 

 

 4,125 

Net Cash Flows Provided by Operating Activities

 

 159,411 

 

 

 359,944 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (189,229)

 

 

 (156,842)

 

Other Investing Activities

 

 7,242 

 

 

 20,641 

Net Cash Flows Used in Investing Activities

 

 (181,987)

 

 

 (136,201)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (135,400)

 

 

 (113,300)

 

Cash Dividends on Preferred Stock

 

 (980)

 

 

 (980)

 

Increase/(Decrease) in Short-Term Debt

 

 203,000 

 

 

 (64,500)

 

Retirements of Long-Term Debt

 

 (825)

 

 

 (825)

 

Retirements of Rate Reduction Bonds

 

 (43,548)

 

 

 (43,581)

Net Cash Flows Provided by/(Used in) Financing Activities

 

 22,247 

 

 

 (223,186)

Net (Decrease)/Increase in Cash and Cash Equivalents

 

 (329)

 

 

 557 

Cash and Cash Equivalents - Beginning of Period

 

 9,373 

 

 

 8,964 

Cash and Cash Equivalents - End of Period

$

 9,044 

 

$

 9,521 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



12



PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 203 

 

$

 56 

 

Receivables, Net

 

 83,335 

 

 

 87,545 

 

Accounts Receivable from Affiliated Companies

 

 616 

 

 

 1,294 

 

Notes Receivable from Affiliated Companies

 

 - 

 

 

 55,900 

 

Unbilled Revenues

 

 43,630 

 

 

 45,403 

 

Fuel, Materials and Supplies

 

 102,948 

 

 

 124,744 

 

Regulatory Assets

 

 28,912 

 

 

 34,178 

 

Prepayments and Other Current Assets

 

 37,235 

 

 

 35,261 

Total Current Assets

 

 296,879 

 

 

 384,381 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 2,315,954 

 

 

 2,256,688 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 347,498 

 

 

 393,941 

 

Other Long-Term Assets

 

 76,466 

 

 

 81,531 

Total Deferred Debits and Other Assets

 

 423,964 

 

 

 475,472 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 $

 3,036,797 

 

 $

 3,116,541 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 




13





PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES  

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to Banks

$

 65,000 

 

$

                        -  

 

Notes Payable to Affiliated Companies

 

 13,500 

 

 

                        -  

 

Accounts Payable

 

 69,792 

 

 

 106,377 

 

Accounts Payable to Affiliated Companies

 

 16,532 

 

 

 18,895 

 

Accrued Interest

 

 9,517 

 

 

 9,670 

 

Regulatory Liabilities

 

 23,121 

 

 

 24,500 

 

Other Current Liabilities

 

 29,365 

 

 

 36,497 

Total Current Liabilities

 

 226,827 

 

 

 195,939 

 

 

 

 

 

 

 

 

Rate Reduction Bonds

 

 57,742 

 

 

 85,368 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 410,763 

 

 

 392,712 

 

Regulatory Liabilities

 

 53,272 

 

 

 54,415 

 

Accrued Pension, SERP and PBOP

 

 168,428 

 

 

 258,718 

 

Other Long-Term Liabilities

 

 58,895 

 

 

 53,304 

Total Deferred Credits and Other Liabilities

 

 691,358 

 

 

 759,149 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 997,827 

 

 

 997,722 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

               -   

 

 

                        -   

 

 

Capital Surplus, Paid In

 

 700,658 

 

 

 700,285 

 

 

Retained Earnings

 

 372,621 

 

 

 388,910 

 

 

Accumulated Other Comprehensive Loss

 

 (10,236)

 

 

 (10,832)

 

Common Stockholder's Equity

 

 1,063,043 

 

 

 1,078,363 

Total Capitalization

 

 2,060,870 

 

 

 2,076,085 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 3,036,797 

 

$

 3,116,541 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.





14





PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 255,105 

 

$

 240,191 

 

$

 498,102 

 

$

 509,661 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

 

 82,116 

 

 

 74,372 

 

 

 163,165 

 

 

 169,375 

 

Operations and Maintenance

 

 68,435 

 

 

 76,281 

 

 

 133,413 

 

 

 140,469 

 

Depreciation

 

 21,811 

 

 

 18,122 

 

 

 43,018 

 

 

 36,030 

 

Amortization of Regulatory Assets, Net

 

 2,798 

 

 

 2,465 

 

 

 177 

 

 

 18,032 

 

Amortization of Rate Reduction Bonds

 

 13,814 

 

 

 13,004 

 

 

 27,743 

 

 

 26,139 

 

Energy Efficiency Programs

 

 3,213 

 

 

 2,774 

 

 

 6,794 

 

 

 5,840 

 

Taxes Other Than Income Taxes

 

 15,872 

 

 

 15,234 

 

 

 31,360 

 

 

 28,902 

 

 

Total Operating Expenses

 

 208,059 

 

 

 202,252 

 

 

 405,670 

 

 

 424,787 

Operating Income

 

 47,046 

 

 

 37,939 

 

 

 92,432 

 

 

 84,874 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 11,539 

 

 

 8,317 

 

 

 23,103 

 

 

 16,941 

 

Interest on Rate Reduction Bonds

 

 786 

 

 

 1,676 

 

 

 1,802 

 

 

 3,570 

 

Other Interest

 

 460 

 

 

 408 

 

 

 692 

 

 

 346 

 

 

Interest Expense

 

 12,785 

 

 

 10,401 

 

 

 25,597 

 

 

 20,857 

Other Income, Net

 

 549 

 

 

 4,361 

 

 

 2,590 

 

 

 8,820 

Income Before Income Tax Expense

 

 34,810 

 

 

 31,899 

 

 

 69,425 

 

 

 72,837 

Income Tax Expense

 

 13,578 

 

 

 10,234 

 

 

 26,931 

 

 

 23,708 

Net Income

$

 21,232 

 

$

 21,665 

 

$

 42,494 

 

$

 49,129 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 21,232 

 

$

 21,665 

 

$

 42,494 

 

$

 49,129 

Other Comprehensive Income/(Loss), Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 291 

 

 

 (3,998)

 

 

 581 

 

 

 (3,072)

 

Changes in Unrealized Gains on Other Securities

 

 9 

 

 

 8 

 

 

 11 

 

 

 8 

 

Change in Funded Status of Pension, SERP and PBOP

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit Plans

 

 4 

 

 

 - 

 

 

 4 

 

 

 - 

Other Comprehensive Income/(Loss), Net of Tax

 

 304 

 

 

 (3,990)

 

 

 596 

 

 

 (3,064)

Comprehensive Income

$

 21,536 

 

$

 17,675 

 

$

 43,090 

 

$

 46,065 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 



























15



PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 42,494 

 

$

 49,129 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Bad Debt Expense

 

 3,378 

 

 

 3,303 

 

 

 Depreciation

 

 43,018 

 

 

 36,030 

 

 

 Deferred Income Taxes

 

 17,885 

 

 

 20,773 

 

 

 Pension, SERP and PBOP Expense

 

 13,168 

 

 

 14,406 

 

 

 Pension and PBOP Contributions

 

 (91,990)

 

 

 (18,469)

 

 

 Regulatory Overrecoveries, Net

 

 3,625 

 

 

 726 

 

 

 Amortization of Regulatory Assets, Net

 

 177 

 

 

 18,032 

 

 

 Amortization of Rate Reduction Bonds

 

 27,743 

 

 

 26,139 

 

 

 Other

 

 13,165 

 

 

 (2,545)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 3,283 

 

 

 12,844 

 

 

 Fuel, Materials and Supplies

 

17,365 

 

 

 11,915 

 

 

 Taxes Receivable/Accrued, Net

 

 (3,776)

 

 

 9,767 

 

 

 Accounts Payable

 

 (14,171)

 

 

 (8,611)

 

 

 Other Current Assets and Liabilities, Net

 

 (5,231)

 

 

 (16,885)

Net Cash Flows Provided by Operating Activities

 

 70,133 

 

 

 156,554 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (120,792)

 

 

 (111,459)

 

Decrease in NU Money Pool Lending

 

 55,900 

 

 

 - 

 

Other Investing Activities

 

 3,045 

 

 

 1,928 

Net Cash Flows Used in Investing Activities

 

 (61,847)

 

 

 (109,531)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (58,783)

 

 

 (29,414)

 

Increase/(Decrease) in Short-Term Debt

 

 65,000 

 

 

 (8,000)

 

Issuance of Long-Term Debt

 

 - 

 

 

 122,000 

 

Retirements of Long-Term Debt

 

 - 

 

 

 (119,800)

 

Increase/(Decrease) in NU Money Pool Borrowings

 

 13,500 

 

 

 (4,100)

 

Capital Contributions from NU Parent

 

 - 

 

 

 20,000 

 

Retirements of Rate Reduction Bonds

 

 (27,626)

 

 

 (26,052)

 

Other Financing Activities

 

 (230)

 

 

 (1,803)

Net Cash Flows Used in Financing Activities

 

 (8,139)

 

 

 (47,169)

Net Increase/(Decrease) in Cash

 

 147 

 

 

 (146)

Cash - Beginning of Period

 

 56 

 

 

 2,559 

Cash - End of Period

$

 203 

 

$

 2,413 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



16



WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2012 

 

2011 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 1 

 

$

 1 

 

Receivables, Net

 

 42,580 

 

 

 42,757 

 

Accounts Receivable from Affiliated Companies

 

 82 

 

 

 633 

 

Notes Receivable from Affiliated Companies

 

 - 

 

 

 11,000 

 

Unbilled Revenues

 

 15,440 

 

 

 16,277 

 

Regulatory Assets

 

 40,587 

 

 

 35,520 

 

Marketable Securities

 

 18,461 

 

 

 26,335 

 

Prepayments and Other Current Assets

 

 8,057 

 

 

 8,719 

Total Current Assets

 

 125,208 

 

 

 141,242 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 1,216,370 

 

 

 1,077,833 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets