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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, 2013     

 

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 sites, 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, 2013

Northeast Utilities
Common shares, $5.00 par value

314,751,609 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

Hopkinton

Hopkinton LNG Corp., a wholly owned subsidiary of NSTAR LLC

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); also the term used for NSTAR LLC and its subsidiaries

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 natural gas distribution businesses of Yankee Gas and NSTAR Gas, the generation activities of PSNH and WMECO, 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 Services 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

EPA

U.S. Environmental Protection Agency

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

U.S. Securities and Exchange Commission

SJC

Supreme Judicial Court of Massachusetts

OTHER: 

 

AFUDC 

Allowance For Funds Used During Construction 

AOCI

Accumulated Other Comprehensive Income/(Loss)

ARO

Asset Retirement Obligation

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 

CWIP

Construction work in progress

EPS 

Earnings Per Share 

ERISA

Employee Retirement Income Security Act of 1974

ES 

Default Energy Service 

ESOP

Employee Stock Ownership Plan

ESPP

Employee Share 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 City 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

IPP

Independent Power Producers

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)

LNG

Liquefied natural gas

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 2012 Form 10-K

The Northeast Utilities and Subsidiaries 2012 combined 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 

Settlement Agreements

The comprehensive settlement agreements reached by NU and NSTAR with the Massachusetts Attorney General and the DOER on February 15, 2012 related to the merger of NU and NSTAR (Massachusetts settlement agreements) and the comprehensive settlement agreement reached by NU and NSTAR with both the Connecticut Attorney General and the Connecticut Office of Consumer Counsel on March 13, 2012 related to the merger of NU and NSTAR (Connecticut settlement agreement).

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
NSTAR ELECTRIC COMPANY AND SUBSIDIARY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY
WESTERN MASSACHUSETTS ELECTRIC COMPANY

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, 2013 and December 31, 2012

1

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2013 and 2012

3

 

Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2013 and 2012

3

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2013 and 2012

4

 

The Connecticut Light and Power Company (Unaudited)

 

 

Condensed Balance Sheets – June 30, 2013 and December 31, 2012

5

 

Condensed Statements of Income – Three and Six Months Ended June 30, 2013 and 2012

7

 

Condensed Statements of Comprehensive Income – Three and Six Months Ended June 30, 2013 and 2012

7

 

 

Condensed Statements of Cash Flows – Six Months Ended June 30, 2013 and 2012

8

 

NSTAR Electric Company and Subsidiary (Unaudited)

 

 

 

Condensed Consolidated Balance Sheets – June 30, 2013 and December 31, 2012

9

 

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2013 and 2012

11

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2013 and 2012

12

 

 

Public Service Company of New Hampshire and Subsidiary (Unaudited)

 

 

Condensed Consolidated Balance Sheets – June 30, 2013 and December 31, 2012

13

 

Condensed Consolidated Statements of Income – Three and Six Months Ended June 30, 2013 and 2012

15

 

Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2013 and 2012

15

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2013 and 2012

16

 

Western Massachusetts Electric Company (Unaudited)

 

 

Condensed Balance Sheets – June 30, 2013 and December 31, 2012

17

 

Condensed Statements of Income – Three and Six Months Ended June 30, 2013 and 2012

19

 

Condensed Statements of Comprehensive Income – Three and Six Months Ended June 30, 2013 and 2012

19

 

 

Condensed Statements of Cash Flows – Six Months Ended June 30, 2013 and 2012

20

 

Combined Notes to Condensed Financial Statements

21

 





 

Page

 

 

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

 

 

Northeast Utilities and Subsidiaries

41

 

 

The Connecticut Light and Power Company

56

 

 

NSTAR Electric Company and Subsidiary

58

 

 

Public Service Company of New Hampshire and Subsidiary

60

 

 

Western Massachusetts Electric Company

62

 

 

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk

64

 

 

ITEM 4 – Controls and Procedures

64

 

 

PART II – OTHER INFORMATION

 

 

 

ITEM 1 – Legal Proceedings

65

 

 

ITEM 1A – Risk Factors

65

 

 

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

65

 

 

ITEM 6 – Exhibits

66

 

 

SIGNATURES

68

 

 



iv






This Page Intentionally Left Blank




v







NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

$

 36,055 

 

$

 45,748 

 

Receivables, Net

 

 789,410 

 

 

 792,822 

 

Unbilled Revenues

 

 193,534 

 

 

 216,040 

 

Fuel, Materials and Supplies

 

 280,600 

 

 

 267,713 

 

Regulatory Assets

 

 577,010 

 

 

 705,025 

 

Prepayments and Other Current Assets

 

 174,484 

 

 

 199,947 

Total Current Assets

 

 2,051,093 

 

 

 2,227,295 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 16,931,448 

 

 

 16,605,010 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 4,817,305 

 

 

 5,132,411 

 

Goodwill

 

 3,519,401 

 

 

 3,519,401 

 

Marketable Securities

 

 501,876 

 

 

 400,329 

 

Derivative Assets

 

 89,309 

 

 

 90,612 

 

Other Long-Term Assets

 

 286,460 

 

 

 327,766 

Total Deferred Debits and Other Assets

 

 9,214,351 

 

 

 9,470,519 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 28,196,892 

 

$

 28,302,824 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

2013 

 

2012 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable

$

 794,500 

 

$

 1,120,196 

 

Long-Term Debt - Current Portion

 

 888,346 

 

 

 763,338 

 

Accounts Payable

 

 532,036 

 

 

 764,350 

 

Regulatory Liabilities

 

 216,422 

 

 

 134,115 

 

Other Current Liabilities

 

 650,206 

 

 

 861,691 

Total Current Liabilities

 

 3,081,510 

 

 

 3,643,690 

 

 

 

 

 

 

 

 

Rate Reduction Bonds

 

 -   

 

 

 82,139 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

  

Accumulated Deferred Income Taxes

 

 3,745,144 

 

 

 3,463,347 

 

Regulatory Liabilities

 

 511,737 

 

 

 540,162 

 

Derivative Liabilities

 

 788,929 

 

 

 882,654 

 

Accrued Pension, SERP and PBOP

 

 1,956,726 

 

 

 2,130,497 

 

Other Long-Term Liabilities

 

 899,270 

 

 

 967,561 

Total Deferred Credits and Other Liabilities

 

 7,901,806 

 

 

 7,984,221 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 7,651,396 

 

 

 7,200,156 

 

 

 

 

 

 

 

 

 

Noncontrolling Interest - Preferred Stock of Subsidiaries

 

 155,568 

 

 

 155,568 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

  Common Shareholders' Equity:

 

 

 

 

 

 

 

Common Shares

 

 1,664,833 

 

 

 1,662,547 

 

  

Capital Surplus, Paid In

 

 6,176,366 

 

 

 6,183,267 

 

 

Retained Earnings

 

 1,969,755 

 

 

 1,802,714 

 

 

Accumulated Other Comprehensive Loss

 

 (69,469)

 

 

 (72,854)

 

 

Treasury Stock

 

 (334,873)

 

 

 (338,624)

 

Common Shareholders' Equity

 

 9,406,612 

 

 

 9,237,050 

Total Capitalization

 

 17,213,576 

 

 

 16,592,774 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 28,196,892 

 

$

 28,302,824 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

(Thousands of Dollars, Except Share Information)

2013 

 

2012 

 

2013 

 

2012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 1,635,862 

 

$

 1,628,684 

 

$

 3,630,885 

 

$

 2,728,307 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

 

 488,302 

 

 

 542,014 

 

 

 1,236,111 

 

 

 937,358 

 

Operations and Maintenance

 

 357,169 

 

 

 529,977 

 

 

 703,261 

 

 

 791,940 

 

Depreciation

 

 159,553 

 

 

 144,485 

 

 

 314,530 

 

 

 225,324 

 

Amortization of Regulatory Assets, Net

 

 54,574 

 

 

 25,590 

 

 

 108,623 

 

 

 31,016 

 

Amortization of Rate Reduction Bonds

 

 8,082 

 

 

 40,752 

 

 

 42,581 

 

 

 59,100 

 

Energy Efficiency Programs

 

 94,142 

 

 

 73,489 

 

 

 199,913 

 

 

 110,762 

 

Taxes Other Than Income Taxes

 

 123,464 

 

 

 112,862 

 

 

 256,345 

 

 

 198,899 

 

 

 

Total Operating Expenses

 

 1,285,286 

 

 

 1,469,169 

 

 

 2,861,364 

 

 

 2,354,399 

Operating Income

 

 350,576 

 

 

 159,515 

 

 

 769,521 

 

 

 373,908 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 85,999 

 

 

 86,925 

 

 

 171,294 

 

 

 146,892 

 

Interest on Rate Reduction Bonds

 

 (189)

 

 

 2,056 

 

 

 422 

 

 

 3,487 

 

Other Interest

 

 1,040 

 

 

 66 

 

 

 (8,610)

 

 

 5,116 

 

 

Interest Expense

 

 86,850 

 

 

 89,047 

 

 

 163,106 

 

 

 155,495 

Other Income, Net

 

 4,944 

 

 

 1,806 

 

 

 12,710 

 

 

 10,580 

Income Before Income Tax Expense

 

 268,670 

 

 

 72,274 

 

 

 619,125 

 

 

 228,993 

Income Tax Expense

 

 95,606 

 

 

 26,055 

 

 

 216,093 

 

 

 82,019 

Net Income

 

 173,064 

 

 

 46,219 

 

 

 403,032 

 

 

 146,974 

Net Income Attributable to Noncontrolling Interests

 

 2,043 

 

 

 1,880 

 

 

 3,922 

 

 

 3,373 

Net Income Attributable to Controlling Interest

$

 171,021 

 

$

 44,339 

 

$

 399,110 

 

$

 143,601 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

$

 0.54 

 

$

 0.15 

 

$

 1.27 

 

$

 0.60 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Common Share

$

 0.54 

 

$

 0.15 

 

$

 1.26 

 

$

 0.60 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared Per Common Share

$

 0.37 

 

$

 0.34 

 

$

 0.74 

 

$

 0.63 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 315,154,130 

 

 

 301,047,753 

 

 

 315,141,956 

 

 

 239,551,735 

 

Diluted

 

 315,962,619 

 

 

 301,816,884 

 

 

 315,982,578 

 

 

 240,127,169 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 173,064 

 

$

 46,219 

 

$

 403,032 

 

$

 146,974 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 514 

 

 

 516 

 

 

 1,030 

 

 

 939 

 

Changes in Unrealized Gains/(Losses) on Other Securities

 

 (591)

 

 

 160 

 

 

 (772)

 

 

 194 

 

Changes in Funded Status of Pension, SERP and PBOP

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit Plans

 

 1,506 

 

 

 1,759 

 

 

 3,127 

 

 

 3,166 

Other Comprehensive Income, Net of Tax

 

 1,429 

 

 

 2,435 

 

 

 3,385 

 

 

 4,299 

Comprehensive Income Attributable to Noncontrolling Interests

 

 (2,043)

 

 

 (1,880)

 

 

 (3,922)

 

 

 (3,373)

Comprehensive Income Attributable to Controlling Interest

$

 172,450 

 

$

 46,774 

 

$

 402,495 

 

$

 147,900 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 403,032 

 

$

 146,974 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 314,530 

 

 

 225,324 

 

 

 Deferred Income Taxes

 

 256,294 

 

 

 59,509 

 

 

 Pension, SERP and PBOP Expense

 

 97,671 

 

 

 97,378 

 

 

 Pension and PBOP Contributions

 

 (122,826)

 

 

 (164,294)

 

 

 Regulatory Underrecoveries, Net

 

 (4,793)

 

 

 (54,491)

 

 

 Amortization of Regulatory Assets, Net

 

 108,623 

 

 

 31,016 

 

 

 Amortization of Rate Reduction Bonds

 

 42,581 

 

 

 59,100 

 

 

 Other

 

 19,932 

 

 

 19,520 

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (101,229)

 

 

 83,395 

 

 

 Fuel, Materials and Supplies

 

 10,964 

 

 

 40,695 

 

 

 Taxes Receivable/Accrued, Net

 

 (58,350)

 

 

 17,709 

 

 

 Accounts Payable

 

 (127,379)

 

 

 (176,533)

 

 

 Other Current Assets and Liabilities, Net

 

 (70,026)

 

 

 (64,899)

Net Cash Flows Provided by Operating Activities

 

 769,024 

 

 

 320,403 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (700,252)

 

 

 (690,376)

 

Proceeds from Sales of Marketable Securities

 

 342,251 

 

 

 132,580 

 

Purchases of Marketable Securities

 

 (424,096)

 

 

 (143,225)

 

Decrease/(Increase) in Special Deposits

 

 65,121 

 

 

 (11,852)

 

Other Investing Activities

 

 (843)

 

 

 23,126 

Net Cash Flows Used in Investing Activities

 

 (717,819)

 

 

 (689,747)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Shares

 

 (232,068)

 

 

 (159,708)

 

Cash Dividends on Preferred Stock

 

 (3,922)

 

 

 (3,269)

 

(Decrease)/Increase in Short-Term Debt

 

 (720,500)

 

 

 558,500 

 

Issuance of Long-Term Debt

 

 1,350,000 

 

 

 300,000 

 

Retirements of Long-Term Debt

 

 (360,635)

 

 

 (267,699)

 

Retirements of Rate Reduction Bonds

 

 (82,139)

 

 

 (36,439)

 

Other Financing Activities

 

 (11,634)

 

 

 (117)

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

 

 (60,898)

 

 

 391,268 

Net (Decrease)/Increase in Cash and Cash Equivalents

 

 (9,693)

 

 

 21,924 

Cash and Cash Equivalents - Beginning of Period

 

 45,748 

 

 

 6,559 

Cash and Cash Equivalents - End of Period

$

 36,055 

 

$

 28,483 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 



4









THE CONNECTICUT LIGHT AND POWER COMPANY

 

 

 

 

 

CONDENSED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 4,267 

 

$

 1 

 

Receivables, Net

 

 329,090 

 

 

 284,787 

 

Accounts Receivable from Affiliated Companies

 

 1,152 

 

 

 6,641 

 

Unbilled Revenues

 

 82,807 

 

 

 85,353 

 

Regulatory Assets

 

 173,484 

 

 

 185,858 

 

Materials and Supplies

 

 60,382 

 

 

 64,603 

 

Prepayments and Other Current Assets

 

 16,578 

 

 

 26,413 

Total Current Assets

 

 667,760 

 

 

 653,656 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 6,251,908 

 

 

 6,152,959 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 2,055,333 

 

 

 2,158,363 

 

Derivative Assets

 

 89,309 

 

 

 90,612 

 

Other Long-Term Assets

 

 92,777 

 

 

 86,498 

Total Deferred Debits and Other Assets

 

 2,237,419 

 

 

 2,335,473 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 9,157,087 

 

$

 9,142,088 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































5







THE CONNECTICUT LIGHT AND POWER COMPANY

 

 

CONDENSED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to Affiliated Companies

$

 189,300 

 

$

 99,296 

 

Long-Term Debt - Current Portion

 

 125,000 

 

 

 125,000 

 

Accounts Payable

 

 169,254 

 

 

 262,857 

 

Accounts Payable to Affiliated Companies

 

 46,042 

 

 

 52,326 

 

Obligations to Third Party Suppliers

 

 65,206 

 

 

 67,344 

 

Accrued Taxes

 

 44,658 

 

 

 60,109 

 

Regulatory Liabilities

 

 64,007 

 

 

 32,119 

 

Derivative Liabilities

 

 95,183 

 

 

 96,931 

 

Other Current Liabilities

 

 100,044 

 

 

 125,662 

Total Current Liabilities

 

 898,694 

 

 

 921,644 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 1,451,287 

 

 

 1,336,105 

 

Regulatory Liabilities

 

 99,863 

 

 

 124,319 

 

Derivative Liabilities

 

 777,144 

 

 

 865,571 

 

Accrued Pension, SERP and PBOP

 

 297,059 

 

 

 304,696 

 

Other Long-Term Liabilities

 

 162,495 

 

 

 197,434 

Total Deferred Credits and Other Liabilities

 

 2,787,848 

 

 

 2,828,125 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 2,740,819 

 

 

 2,737,790 

 

 

 

 

 

 

 

 

 

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

 

 1,641,065 

 

 

 1,640,149 

 

 

Retained Earnings

 

 913,713 

 

 

 839,628 

 

 

Accumulated Other Comprehensive Loss

 

 (1,604)

 

 

 (1,800)

 

Common Stockholder's Equity

 

 2,613,526 

 

 

 2,538,329 

Total Capitalization

 

 5,470,545 

 

 

 5,392,319 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 9,157,087 

 

$

 9,142,088 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 



























































































6







THE CONNECTICUT LIGHT AND POWER COMPANY

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

2013 

 

2012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 569,329 

 

$

 562,141 

 

$

 1,193,425 

 

$

 1,154,106 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 184,854 

 

 

 196,806 

 

 

 414,113 

 

 

 417,697 

 

Operations and Maintenance

 

 123,760 

 

 

 205,471 

 

 

 232,655 

 

 

 338,373 

 

Depreciation

 

 45,122 

 

 

 41,519 

 

 

 87,570 

 

 

 82,588 

 

Amortization of Regulatory Assets, Net

 

 463 

 

 

 3,263 

 

 

 11,249 

 

 

 11,257 

 

Energy Efficiency Programs

 

 20,854 

 

 

 20,995 

 

 

 43,668 

 

 

 42,968 

 

Taxes Other Than Income Taxes

 

 57,506 

 

 

 53,706 

 

 

 117,697 

 

 

 108,978 

 

 

Total Operating Expenses

 

 432,559 

 

 

 521,760 

 

 

 906,952 

 

 

 1,001,861 

Operating Income

 

 136,770 

 

 

 40,381 

 

 

 286,473 

 

 

 152,245 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 32,683 

 

 

 31,696 

 

 

 65,318 

 

 

 63,218 

 

Other Interest

 

 1,301 

 

 

 2,075 

 

 

 (1,640)

 

 

 4,060 

 

 

Interest Expense

 

 33,984 

 

 

 33,771 

 

 

 63,678 

 

 

 67,278 

Other Income, Net

 

 2,897 

 

 

 447 

 

 

 7,084 

 

 

 5,747 

Income Before Income Tax Expense

 

 105,683 

 

 

 7,057 

 

 

 229,879 

 

 

 90,714 

Income Tax Expense

 

 37,826 

 

 

 124 

 

 

 77,014 

 

 

 29,796 

Net Income

$

 67,857 

 

$

 6,933 

 

$

 152,865 

 

$

 60,918 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 67,857 

 

$

 6,933 

 

$

 152,865 

 

$

 60,918 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 111 

 

 

 111 

 

 

 222 

 

 

 222 

 

Changes in Unrealized Gains/(Losses) on Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities

 

 (20)

 

 

 5 

 

 

 (26)

 

 

 6 

Other Comprehensive Income, Net of Tax

 

 91 

 

 

 116 

 

 

 196 

 

 

 228 

Comprehensive Income

$

 67,948 

 

$

 7,049 

 

$

 153,061 

 

$

 61,146 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































7







THE CONNECTICUT LIGHT AND POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 152,865 

 

$

 60,918 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 87,570 

 

 

 82,588 

 

 

 Deferred Income Taxes

 

 99,045 

 

 

 30,874 

 

 

 Pension, SERP and PBOP Expense, Net of PBOP Contributions

 

 13,826 

 

 

 12,030 

 

 

 Regulatory Underrecoveries, Net

 

 (36,902)

 

 

 (19,596)

 

 

 Amortization of Regulatory Assets, Net

 

 11,249 

 

 

 11,257 

 

 

 Other

 

 (13,476)

 

 

 (12,078)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (33,976)

 

 

 38,253 

 

 

 Taxes Receivable/Accrued, Net

 

 (14,081)

 

 

 39,985 

 

 

 Accounts Payable

 

 (95,487)

 

 

 (170,151)

 

 

 Other Current Assets and Liabilities, Net

 

 7,548 

 

 

 (26,579)

Net Cash Flows Provided by Operating Activities

 

 178,181 

 

 

 47,501 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (184,875)

 

 

 (220,712)

 

Other Investing Activities

 

 884 

 

 

 3,460 

Net Cash Flows Used in Investing Activities

 

 (183,991)

 

 

 (217,252)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (76,000)

 

 

 (66,991)

 

Cash Dividends on Preferred Stock

 

 (2,779)

 

 

 (2,779)

 

Issuance of Long Term Debt

 

 400,000 

 

 

 -   

 

Decrease in Notes Payable to Affiliates

 

 (215,800)

 

 

 (53,525)

 

(Decrease)/Increase in Short-Term Debt

 

 (89,000)

 

 

 299,000 

 

Other Financing Activities

 

 (6,345)

 

 

 (1,432)

Net Cash Flows Provided by Financing Activities

 

 10,076 

 

 

 174,273 

Net Increase in Cash

 

 4,266 

 

 

 4,522 

Cash - Beginning of Period

 

 1 

 

 

 1 

Cash - End of Period

$

 4,267 

 

$

 4,523 

 

 

 

 

 

 

 

 

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



8









NSTAR ELECTRIC COMPANY AND SUBSIDIARY

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

$

 11,165 

 

$

 13,695 

 

Receivables, Net

 

 246,292 

 

 

 202,025 

 

Accounts Receivable from Affiliated Companies

 

 394,242 

 

 

 160,176 

 

Unbilled Revenues

 

 52,637 

 

 

 41,377 

 

Regulatory Assets

 

 270,813 

 

 

 347,081 

 

Prepayments and Other Current Assets

 

 71,624 

 

 

 28,086 

Total Current Assets

 

 1,046,773 

 

 

 792,440 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 4,839,707 

 

 

 4,735,297 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 1,461,875 

 

 

 1,444,870 

 

Other Long-Term Assets

 

 59,998 

 

 

 87,382 

Total Deferred Debits and Other Assets

 

 1,521,873 

 

 

 1,532,252 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 7,408,353 

 

$

 7,059,989 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































9







NSTAR ELECTRIC COMPANY AND SUBSIDIARY

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable

$

 253,000 

 

$

276,000 

 

Long-Term Debt - Current Portion

 

 301,650 

 

 

1,650 

 

Accounts Payable

 

 148,210 

 

 

168,611 

 

Accounts Payable to Affiliated Companies

 

 423,758 

 

 

247,061 

 

Accumulated Deferred Income Taxes - Current Portion

 

 67,567 

 

 

 104,668 

 

Regulatory Liabilities

 

 74,435 

 

 

 47,539 

 

Other Current Liabilities

 

 116,473 

 

 

 144,433 

Total Current Liabilities

 

 1,385,093 

 

 

 989,962 

 

 

 

 

 

 

 

 

Rate Reduction Bonds

 

 -   

 

 

 43,493 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 1,384,219 

 

 

 1,321,026 

 

Regulatory Liabilities

 

 249,862 

 

 

 244,224 

 

Accrued Pension

 

 379,015 

 

 

 360,932 

 

Payable to Affiliated Companies

 

 64,752 

 

 

 70,221 

 

Other Long-Term Liabilities

 

 151,033 

 

 

 183,190 

Total Deferred Credits and Other Liabilities

 

 2,228,881 

 

 

 2,179,593 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 1,499,339 

 

 

 1,600,911 

 

 

 

 

 

 

 

 

 

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

 

 1,259,415 

 

 

 1,210,405 

 

Common Stockholder's Equity

 

 2,252,040 

 

 

 2,203,030 

Total Capitalization

 

 3,794,379 

 

 

 3,846,941 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 7,408,353 

 

$

 7,059,989 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































10







NSTAR ELECTRIC COMPANY AND SUBSIDIARY

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

2013 

 

2012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 570,420 

 

$

 534,626 

 

$

 1,162,677 

 

$

 1,091,102 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 189,843 

 

 

 180,502 

 

 

 403,896 

 

 

 399,512 

 

Operations and Maintenance

 

 87,891 

 

 

 109,038 

 

 

 180,192 

 

 

 257,218 

 

Depreciation

 

 45,441 

 

 

 42,669 

 

 

 90,882 

 

 

 85,198 

 

Amortization of Regulatory Assets, Net

 

 53,554 

 

 

 22,144 

 

 

 100,548 

 

 

 46,024 

 

Amortization of Rate Reduction Bonds

 

 -   

 

 

 22,581 

 

 

 15,054 

 

 

 45,161 

 

Energy Efficiency Programs

 

 50,679 

 

 

 35,487 

 

 

 102,382 

 

 

 82,391 

 

Taxes Other Than Income Taxes

 

 30,491 

 

 

 28,308 

 

 

 62,665 

 

 

 59,169 

 

 

Total Operating Expenses

 

 457,899 

 

 

 440,729 

 

 

 955,619 

 

 

 974,673 

Operating Income

 

 112,521 

 

 

 93,897 

 

 

 207,058 

 

 

 116,429 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 19,809 

 

 

 22,279 

 

 

 39,401 

 

 

 44,567 

 

Interest on Rate Reduction Bonds

 

 -   

 

 

 927 

 

 

 399 

 

 

 2,253 

 

Other Interest

 

 (2,620)

 

 

 (5,597)

 

 

 (6,687)

 

 

 (11,433)

 

 

Interest Expense

 

 17,189 

 

 

 17,609 

 

 

 33,113 

 

 

 35,387 

Other Income, Net

 

 375 

 

 

 6 

 

 

 1,149 

 

 

 1,227 

Income Before Income Tax Expense

 

 95,707 

 

 

 76,294 

 

 

 175,094 

 

 

 82,269 

Income Tax Expense

 

 37,676 

 

 

 30,812 

 

 

 68,941 

 

 

 32,847 

Net Income

$

 58,031 

 

$

 45,482 

 

$

 106,153 

 

$

 49,422 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































11







NSTAR ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

 

Net Income

$

 106,153 

 

$

 49,422 

 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 

 Bad Debt Expense

 

 11,307 

 

 

 46,726 

 

 

 

 Depreciation

 

 90,882 

 

 

 85,198 

 

 

 

 Deferred Income Taxes

 

 28,750 

 

 

 (16,389)

 

 

 

 Pension and PBOP Expense, Net of Pension Contributions

 

 (5,139)

 

 

 16,822 

 

 

 

 Regulatory (Under)/Over Recoveries, Net

 

 (33,901)

 

 

 16,371 

 

 

 

 Amortization of Regulatory Assets, Net

 

 100,548 

 

 

 46,024 

 

 

 

 Amortization of Rate Reduction Bonds

 

 15,054 

 

 

 45,161 

 

 

 

 Other

 

 (47,574)

 

 

 (25,239)

 

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (60,174)

 

 

 (19,555)

 

 

 

 Materials and Supplies

 

 3,294 

 

 

 10,387 

 

 

 

 Taxes Receivable/Accrued, Net

 

 (39,813)

 

 

 (29,978)

 

 

 

 Accounts Payable

 

 (8,686)

 

 

 (64,317)

 

 

 

 Accounts Receivable from/Payable to Affiliates, Net

 

 (57,369)

 

 

 (26,121)

 

 

 

 Other Current Assets and Liabilities, Net

 

 (11,702)

 

 

 24,899 

 

Net Cash Flows Provided by Operating Activities

 

 91,630 

 

 

 159,411 

 

 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (207,380)

 

 

 (189,229)

 

 

Decrease in Special Deposits

 

 38,429 

 

 

 6,867 

 

 

Other Investing Activities

 

 77 

 

 

 375 

 

Net Cash Flows Used in Investing Activities

 

 (168,874)

 

 

 (181,987)

 

 

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (56,000)

 

 

 (135,400)

 

 

Cash Dividends on Preferred Stock

 

 (1,143)

 

 

 (980)

 

 

(Decrease)/Increase in Notes Payable

 

 (23,000)

 

 

 203,000 

 

 

Issuance of Long-Term Debt

 

 200,000 

 

 

 - 

 

 

Retirements of Long-Term Debt

 

 (1,650)

 

 

 (825)

 

 

Retirements of Rate Reduction Bonds

 

 (43,493)

 

 

 (43,548)

 

Net Cash Flows Provided by Financing Activities

 

 74,714 

 

 

 22,247 

 

Net Decrease in Cash and Cash Equivalents

 

 (2,530)

 

 

 (329)

 

Cash and Cash Equivalents - Beginning of Period

 

 13,695 

 

 

 9,373 

 

Cash and Cash Equivalents - End of Period

$

 11,165 

 

$

 9,044 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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



12









PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 65 

 

$

 2,493 

 

Receivables, Net

 

 83,024 

 

 

 87,164 

 

Accounts Receivable from Affiliated Companies

 

 690 

 

 

 723 

 

Unbilled Revenues

 

 36,443 

 

 

 39,982 

 

Taxes Receivable

 

 2,500 

 

 

 17,177 

 

Fuel, Materials and Supplies

 

 108,634 

 

 

 95,345 

 

Regulatory Assets

 

 55,836 

 

 

 62,882 

 

Prepayments and Other Current Assets

 

 19,035 

 

 

 22,205 

Total Current Assets

 

 306,227 

 

 

 327,971 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 2,383,167 

 

 

 2,352,515 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 311,442 

 

 

 351,059 

 

Other Long-Term Assets

 

 58,992 

 

 

 83,052 

Total Deferred Debits and Other Assets

 

 370,434 

 

 

 434,111 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 $

 3,059,828 

 

 $

 3,114,597 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 




13









PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to Affiliated Companies

$

 182,200 

 

$

 63,300 

 

Accounts Payable

 

 57,657 

 

 

 62,864 

 

Accounts Payable to Affiliated Companies

 

 17,111 

 

 

 21,337 

 

Regulatory Liabilities

 

 21,913 

 

 

 23,002 

 

Renewable Portfolio Standards Compliance Obligations

 

 4,500 

 

 

 17,383 

 

Other Current Liabilities

 

 49,369 

 

 

 50,950 

Total Current Liabilities

 

 332,750 

 

 

 238,836 

 

 

 

 

 

 

 

 

Rate Reduction Bonds

 

 - 

 

 

 29,294 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 461,976 

 

 

 441,577 

 

Regulatory Liabilities

 

 51,039 

 

 

 52,418 

 

Accrued Pension, SERP and PBOP

 

 171,622 

 

 

 220,129 

 

Other Long-Term Liabilities

 

 43,736 

 

 

 47,896 

Total Deferred Credits and Other Liabilities

 

 728,373 

 

 

 762,020 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 889,051 

 

 

 997,932 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

 - 

 

 

 - 

 

 

Capital Surplus, Paid In

 

 701,468 

 

 

 701,052 

 

 

Retained Earnings

 

 417,307 

 

 

 395,118 

 

 

Accumulated Other Comprehensive Loss

 

 (9,121)

 

 

 (9,655)

 

Common Stockholder's Equity

 

 1,109,654 

 

 

 1,086,515 

Total Capitalization

 

 1,998,705 

 

 

 2,084,447 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 3,059,828 

 

$

 3,114,597 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































14







PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

2013 

 

2012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 216,113 

 

$

 255,105 

 

$

 489,942 

 

$

 498,102 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

 

 50,073 

 

 

 82,116 

 

 

 151,097 

 

 

 163,165 

 

Operations and Maintenance

 

 62,400 

 

 

 68,435 

 

 

 122,129 

 

 

 133,413 

 

Depreciation

 

 22,947 

 

 

 21,811 

 

 

 45,515 

 

 

 43,018 

 

Amortization of Regulatory Assets/(Liabilities), Net

 

 1,081 

 

 

 2,798 

 

 

 (1,969)

 

 

 177 

 

Amortization of Rate Reduction Bonds

 

 4,991 

 

 

 13,814 

 

 

 19,748 

 

 

 27,743 

 

Energy Efficiency Programs

 

 3,376 

 

 

 3,213 

 

 

 7,046 

 

 

 6,794 

 

Taxes Other Than Income Taxes

 

 16,918 

 

 

 15,872 

 

 

 33,932 

 

 

 31,360 

 

 

Total Operating Expenses

 

 161,786 

 

 

 208,059 

 

 

 377,498 

 

 

 405,670 

Operating Income

 

 54,327 

 

 

 47,046 

 

 

 112,444 

 

 

 92,432 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 10,811 

 

 

 11,539 

 

 

 22,606 

 

 

 23,103 

 

Interest on Rate Reduction Bonds

 

 (239)

 

 

 786 

 

 

 (154)

 

 

 1,802 

 

Other Interest

 

 576 

 

 

 460 

 

 

 863 

 

 

 692 

 

 

Interest Expense

 

 11,148 

 

 

 12,785 

 

 

 23,315 

 

 

 25,597 

Other Income, Net

 

 632 

 

 

 549 

 

 

 1,662 

 

 

 2,590 

Income Before Income Tax Expense

 

 43,811 

 

 

 34,810 

 

 

 90,791 

 

 

 69,425 

Income Tax Expense

 

 16,617 

 

 

 13,578 

 

 

 34,602 

 

 

 26,931 

Net Income

$

 27,194 

 

$

 21,232 

 

$

 56,189 

 

$

 42,494 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 27,194 

 

$

21,232 

 

$

 56,189 

 

$

42,494 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 291 

 

 

291 

 

 

 582 

 

 

581 

 

Changes in Unrealized Gains/(Losses) on Other Securities

 

 (34)

 

 

 

 

 (45)

 

 

11 

 

Changes in Funded Status of Pension, SERP and PBOP

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit Plans

 

 - 

 

 

 4 

 

 

 (3)

 

 

 4 

Other Comprehensive Income, Net of Tax

 

 257 

 

 

304 

 

 

 534 

 

 

596 

Comprehensive Income

$

 27,451 

 

$

 21,536 

 

$

 56,723 

 

$

 43,090 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



























































































15







PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 56,189 

 

$

 42,494 

 

Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 45,515 

 

 

 43,018 

 

 

 Deferred Income Taxes

 

 25,450 

 

 

 17,885 

 

 

 Pension, SERP and PBOP Expense

 

 14,228 

 

 

 13,168 

 

 

 Pension and PBOP Contributions

 

 (45,721)

 

 

 (91,990)

 

 

 Regulatory Overrecoveries, Net

 

 4,844 

 

 

 3,625 

 

 

 Amortization of Regulatory (Liabilities)/Assets, Net

 

 (1,969)

 

 

 177 

 

 

 Amortization of Rate Reduction Bonds

 

 19,748 

 

 

 27,743 

 

 

 Other

 

 3,123 

 

 

 16,543 

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 597 

 

 

 3,283 

 

 

 Fuel, Materials and Supplies

 

 (13,289)

 

 

 17,365 

 

 

 Taxes Receivable/Accrued, Net

 

 21,584 

 

 

 (3,776)

 

 

 Accounts Payable

 

 26,159 

 

 

 (14,171)

 

 

 Other Current Assets and Liabilities, Net

 

 (17,743)

 

 

 (5,231)

Net Cash Flows Provided by Operating Activities

 

 138,715 

 

 

 70,133 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (109,565)

 

 

 (120,792)

 

Decrease in Notes Receivable from Affiliates

 

 - 

 

 

 55,900 

 

Decrease in Special Deposits

 

 22,039 

 

 

 3,111 

 

Other Investing Activities

 

 (13)

 

 

 (66)

Net Cash Flows Used in Investing Activities

 

 (87,539)

 

 

 (61,847)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (34,000)

 

 

 (58,783)

 

Retirements of Long-term Debt

 

 (108,985)

 

 

 -  

 

Increase in Notes Payable to Affiliates

 

 118,900 

 

 

 78,500 

 

Retirements of Rate Reduction Bonds

 

 (29,294)

 

 

 (27,626)

 

Other Financing Activities

 

 (225)

 

 

 (230)

Net Cash Flows Used in Financing Activities

 

 (53,604)

 

 

 (8,139)

Net (Decrease)/Increase in Cash

 

 (2,428)

 

 

 147 

Cash - Beginning of Period

 

 2,493 

 

 

 56 

Cash - End of Period

$

 65 

 

$

 203 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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



16









WESTERN MASSACHUSETTS ELECTRIC COMPANY

 

 

 

 

 

CONDENSED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Thousands of Dollars)

2013 

 

2012 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets: