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

FORM 10-Q


T

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

 

 

 

For the Quarterly Period Ended September 30, 2014     

 

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)
300 Cadwell Drive
Springfield, Massachusetts 01104
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)
300 Cadwell Drive
Springfield, Massachusetts 01104
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

 

 

 

 

T

£


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 registrants were required to submit and post such files).


 

Yes

No

 

 

 

 

T

£


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

T

 

£

 

£

The Connecticut Light and Power Company

£

 

£

 

T

NSTAR Electric Company

£

 

£

 

T

Public Service Company of New Hampshire

£

 

£

 

T

Western Massachusetts Electric Company

£

 

£

 

T


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


 

Yes

No

 

 

 

Northeast Utilities

£

T

The Connecticut Light and Power Company

£

T

NSTAR Electric Company

£

T

Public Service Company of New Hampshire

£

T

Western Massachusetts Electric Company

£

T


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 October 31, 2014

Northeast Utilities
Common shares, $5.00 par value

316,799,371 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 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 Yankee Energy System, Inc.

HWP

HWP Company, formerly the Holyoke Water Power Company

MYAPC

Maine Yankee Atomic Power Company

NGS

Northeast Generation Services Company

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 former Northeast Utilities service company (effective January 1, 2014 merged into NUSCO)

NSTAR Gas

NSTAR Gas Company

NU Enterprises

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

NU or the Company

Northeast Utilities and subsidiaries

NU parent and other companies

NU parent and other companies is comprised of NU parent, NUSCO and other subsidiaries, which primarily include NU Enterprises, 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 (effective January 1, 2014 includes the operations of NSTAR Electric & Gas)

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

CO2

Carbon dioxide

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



i






ESOP

Employee Stock Ownership Plan

ESPP

Employee Share Purchase Plan

FERC ALJ

FERC Administrative Law Judge

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

LRS

Supplier of last resort service

MGP

Manufactured Gas Plant

Millstone

Millstone Nuclear Generating station, made up of Millstone 1, Millstone 2, and Millstone 3. All three units were sold in March 2001.

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

NOx

Nitrogen oxides

NU 2013 Form 10-K

The Northeast Utilities and Subsidiaries 2013 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 Plans and non-qualified defined benefit retirement plans

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

SO2

Sulfur dioxide

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

1

Condensed Consolidated Statements of Income

3

Condensed Consolidated Statements of Comprehensive Income

3

Condensed Consolidated Statements of Cash Flows

4

 

The Connecticut Light and Power Company (Unaudited)

 

Condensed Balance Sheets

5

Condensed Statements of Income

7

Condensed Statements of Comprehensive Income

7

Condensed Statements of Cash Flows

8

 

NSTAR Electric Company and Subsidiary (Unaudited)

 

Condensed Consolidated Balance Sheets

9

Condensed Consolidated Statements of Income

11

Condensed Consolidated Statements of Cash Flows

12

 

 

Public Service Company of New Hampshire and Subsidiary (Unaudited)

 

Condensed Consolidated Balance Sheets

13

Condensed Consolidated Statements of Income

15

Condensed Consolidated Statements of Comprehensive Income

15

Condensed Consolidated Statements of Cash Flows

16

 

Western Massachusetts Electric Company (Unaudited)

 

Condensed Balance Sheets

17

Condensed Statements of Income

19

Condensed Statements of Comprehensive Income

19

Condensed Statements of Cash Flows

20

 

 

Combined Notes to Condensed Consolidated Financial Statements (Unaudited)

21


ITEM 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations for the Following Companies:


Northeast Utilities and Subsidiaries


40

The Connecticut Light and Power Company

54

NSTAR Electric Company and Subsidiary

57

Public Service Company of New Hampshire and Subsidiary

59

Western Massachusetts Electric Company

61

 

 

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk

63

 

 

ITEM 4 – Controls and Procedures

63

 

 

PART II – OTHER INFORMATION

 

 

 

ITEM 1 – Legal Proceedings

64

 

 

ITEM 1A – Risk Factors

64

 

 

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

64

 

 

ITEM 6 – Exhibits

65

 

 

SIGNATURES

67



iii






NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

$

 41,706 

 

$

 43,364 

 

Receivables, Net

 

 848,510 

 

 

 765,391 

 

Unbilled Revenues

 

 181,284 

 

 

 224,982 

 

Fuel, Materials and Supplies

 

 333,869 

 

 

 303,233 

 

Regulatory Assets

 

 445,962 

 

 

 535,791 

 

Marketable Securities

 

 114,722 

 

 

 92,427 

 

Prepayments and Other Current Assets

 

 135,497 

 

 

 121,861 

Total Current Assets

 

 2,101,550 

 

 

 2,087,049 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 18,254,610 

 

 

 17,576,186 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 3,241,122 

 

 

 3,758,694 

 

Goodwill

 

 3,519,401 

 

 

 3,519,401 

 

Marketable Securities

 

 518,032 

 

 

 488,515 

 

Other Long-Term Assets

 

 347,596 

 

 

 365,692 

Total Deferred Debits and Other Assets

 

 7,626,151 

 

 

 8,132,302 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 27,982,311 

 

$

 27,795,537 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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



1




NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable

$

 1,046,961 

 

$

 1,093,000 

 

Long-Term Debt - Current Portion

 

 245,583 

 

 

 533,346 

 

Accounts Payable

 

 608,639 

 

 

 742,251 

 

Regulatory Liabilities

 

 398,985 

 

 

 204,278 

 

Other Current Liabilities

 

 629,508 

 

 

 702,776 

Total Current Liabilities

 

 2,929,676 

 

 

 3,275,651 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

  

Accumulated Deferred Income Taxes

 

 4,257,996 

 

 

 4,029,026 

 

Regulatory Liabilities

 

 509,889 

 

 

 502,984 

 

Derivative Liabilities

 

 420,931 

 

 

 624,050 

 

Accrued Pension, SERP and PBOP

 

 787,550 

 

 

 896,844 

 

Other Long-Term Liabilities

 

 863,164 

 

 

 923,053 

Total Deferred Credits and Other Liabilities

 

 6,839,530 

 

 

 6,975,957 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 8,166,985 

 

 

 7,776,833 

 

 

 

 

 

 

 

 

 

Noncontrolling Interest - Preferred Stock of Subsidiaries

 

 155,568 

 

 

 155,568 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

  Common Shareholders' Equity:

 

 

 

 

 

 

 

Common Shares

 

 1,666,767 

 

 

 1,665,351 

 

  

Capital Surplus, Paid In

 

 6,219,516 

 

 

 6,192,765 

 

 

Retained Earnings

 

 2,351,421 

 

 

 2,125,980 

 

 

Accumulated Other Comprehensive Loss

 

 (40,172)

 

 

 (46,031)

 

 

Treasury Stock

 

 (306,980)

 

 

 (326,537)

 

Common Shareholders' Equity

 

 9,890,552 

 

 

 9,611,528 

Total Capitalization

 

 18,213,105 

 

 

 17,543,929 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 27,982,311 

 

$

 27,795,537 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30,

 

For the Nine Months Ended September 30,

(Thousands of Dollars, Except Share Information)

2014 

 

2013 

 

2014 

 

2013 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 1,892,532 

 

$

 1,892,590 

 

$

 5,860,736 

 

$

 5,523,475 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

 

 716,631 

 

 

 645,881 

 

 

 2,318,993 

 

 

 1,881,992 

 

Operations and Maintenance

 

 344,092 

 

 

 386,700 

 

 

 1,069,015 

 

 

 1,089,960 

 

Depreciation

 

 153,210 

 

 

 149,105 

 

 

 456,224 

 

 

 463,635 

 

Amortization of Regulatory Assets/(Liabilities), Net

 

 (22,531)

 

 

 70,046 

 

 

 31,826 

 

 

 178,668 

 

Amortization of Rate Reduction Bonds

 

 - 

 

 

 - 

 

 

 - 

 

 

 42,581 

 

Energy Efficiency Programs

 

 118,693 

 

 

 106,097 

 

 

 360,228 

 

 

 306,010 

 

Taxes Other Than Income Taxes

 

 141,527 

 

 

 135,499 

 

 

 421,862 

 

 

 391,846 

 

 

 

Total Operating Expenses

 

 1,451,622 

 

 

 1,493,328 

 

 

 4,658,148 

 

 

 4,354,692 

Operating Income

 

 440,910 

 

 

 399,262 

 

 

 1,202,588 

 

 

 1,168,783 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 85,208 

 

 

 84,911 

 

 

 260,076 

 

 

 256,205 

 

Other Interest

 

 4,530 

 

 

 2,565 

 

 

 12,132 

 

 

 (5,622)

 

 

Interest Expense

 

 89,738 

 

 

 87,476 

 

 

 272,208 

 

 

 250,583 

Other Income, Net

 

 11,860 

 

 

 8,945 

 

 

 19,054 

 

 

 21,655 

Income Before Income Tax Expense

 

 363,032 

 

 

 320,731 

 

 

 949,434 

 

 

 939,855 

Income Tax Expense

 

 126,539 

 

 

 109,351 

 

 

 345,858 

 

 

 325,442 

Net Income

 

 236,493 

 

 

 211,380 

 

 

 603,576 

 

 

 614,413 

Net Income Attributable to Noncontrolling Interests

 

 1,879 

 

 

 1,879 

 

 

 5,639 

 

 

 5,803 

Net Income Attributable to Controlling Interest

$

 234,614 

 

$

 209,501 

 

$

 597,937 

 

$

 608,610 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Earnings Per Common Share

$

 0.74 

 

$

 0.66 

 

$

 1.89 

 

$

 1.93 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared Per Common Share

$

 0.39 

 

$

 0.37 

 

$

 1.18 

 

$

 1.10 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 316,340,691 

 

 

 315,291,346 

 

 

 315,941,904 

 

 

 315,191,752 

 

Diluted

 

 317,554,925 

 

 

 316,218,239 

 

 

 317,186,490 

 

 

 316,061,131 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 236,493 

 

$

 211,380 

 

$

 603,576 

 

$

 614,413 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 509 

 

 

 509 

 

 

 1,528 

 

 

 1,539 

 

Changes in Unrealized Gains/(Losses) on Other
   Securities

 

 (216)

 

 

 (38)

 

 

 242 

 

 

 (810)

 

Changes in Funded Status of Pension, SERP and
   PBOP Benefit Plans

 

 1,042 

 

 

 1,611 

 

 

 4,089 

 

 

 4,738 

Other Comprehensive Income, Net of Tax

 

 1,335 

 

 

 2,082 

 

 

 5,859 

 

 

 5,467 

Comprehensive Income Attributable to
   Noncontrolling Interests

 

 (1,879)

 

 

 (1,879)

 

 

 (5,639)

 

 

 (5,803)

Comprehensive Income Attributable to Controlling
   Interest

$

 235,949 

 

$

 211,583 

 

$

 603,796 

 

$

 614,077 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 603,576 

 

$

 614,413 

 

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 456,224 

 

 

 463,635 

 

 

 Deferred Income Taxes

 

 64,755 

 

 

 334,225 

 

 

 Pension, SERP and PBOP Expense

 

 74,296 

 

 

 146,803 

 

 

 Pension and PBOP Contributions

 

 (74,681)

 

 

 (338,301)

 

 

 Regulatory Overrecoveries, Net

 

 290,111 

 

 

 66,239 

 

 

 Amortization of Regulatory Assets, Net

 

 31,826 

 

 

 178,668 

 

 

 Amortization of Rate Reduction Bonds

 

 - 

 

 

 42,581 

 

 

 Proceeds from DOE Damages Claim, Net

 

 132,138 

 

 

 - 

 

 

 Other

 

 (17,096)

 

 

 3,158 

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (66,463)

 

 

 (98,432)

 

 

 Fuel, Materials and Supplies

 

 (27,147)

 

 

 (13,134)

 

 

 Taxes Receivable/Accrued, Net

 

 26,533 

 

 

 (28,609)

 

 

 Accounts Payable

 

 (69,448)

 

 

 (112,512)

 

 

 Other Current Assets and Liabilities, Net

 

 (20,607)

 

 

 (81,766)

Net Cash Flows Provided by Operating Activities

 

 1,404,017 

 

 

 1,176,968 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (1,117,493)

 

 

 (1,073,759)

 

Proceeds from Sales of Marketable Securities

 

 388,352 

 

 

 487,729 

 

Purchases of Marketable Securities

 

 (389,406)

 

 

 (541,070)

 

Decrease in Special Deposits

 

 - 

 

 

 69,259 

 

Other Investing Activities

 

 (4,669)

 

 

 (1,137)

Net Cash Flows Used in Investing Activities

 

 (1,123,216)

 

 

 (1,058,978)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Shares

 

 (356,080)

 

 

 (341,720)

 

Cash Dividends on Preferred Stock

 

 (5,639)

 

 

 (5,802)

 

Increase/(Decrease) in Notes Payable

 

 6,000 

 

 

 (172,000)

 

Issuance of Long-Term Debt

 

 650,000 

 

 

 1,350,000 

 

Retirements of Long-Term Debt

 

 (576,650)

 

 

 (840,600)

 

Retirements of Rate Reduction Bonds

 

 - 

 

 

 (82,139)

 

Other Financing Activities

 

 (90)

 

 

 (13,536)

Net Cash Flows Used in Financing Activities

 

 (282,459)

 

 

 (105,797)

Net (Decrease)/Increase in Cash and Cash Equivalents

 

 (1,658)

 

 

 12,193 

Cash and Cash Equivalents - Beginning of Period

 

 43,364 

 

 

 45,748 

Cash and Cash Equivalents - End of Period

$

 41,706 

 

$

 57,941 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 16,294 

 

$

 7,237 

 

Receivables, Net

 

 369,492 

 

 

 319,670 

 

Accounts Receivable from Affiliated Companies

 

 35,276 

 

 

 13,777 

 

Unbilled Revenues

 

 87,806 

 

 

 92,401 

 

Regulatory Assets

 

 116,531 

 

 

 150,943 

 

Materials and Supplies

 

 47,086 

 

 

 54,606 

 

Accumulated Deferred Income Taxes

 

 52,839 

 

 

 - 

 

Prepaid Property Taxes

 

 47,429 

 

 

 13,962 

 

Prepayments and Other Current Assets

 

 17,608 

 

 

 39,120 

Total Current Assets

 

 790,361 

 

 

 691,716 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 6,700,798 

 

 

 6,451,259 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 1,369,025 

 

 

 1,663,147 

 

Other Long-Term Assets

 

 178,313 

 

 

 174,380 

Total Deferred Debits and Other Assets

 

 1,547,338 

 

 

 1,837,527 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 9,038,497 

 

$

 8,980,502 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 




5




THE CONNECTICUT LIGHT AND POWER COMPANY

 

 

CONDENSED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to NU Parent

$

 105,400 

 

$

 287,300 

 

Long-Term Debt - Current Portion

 

 162,000 

 

 

 150,000 

 

Accounts Payable

 

 228,379 

 

 

 201,047 

 

Accounts Payable to Affiliated Companies

 

 46,977 

 

 

 56,531 

 

Obligations to Third Party Suppliers

 

 67,630 

 

 

 73,914 

 

Accrued Taxes

 

 54,652 

 

 

 37,186 

 

Regulatory Liabilities

 

 195,663 

 

 

 93,961 

 

Derivative Liabilities

 

 86,759 

 

 

 92,233 

 

Other Current Liabilities

 

 107,284 

 

 

 97,530 

Total Current Liabilities

 

 1,054,744 

 

 

 1,089,702 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 1,581,344 

 

 

 1,510,586 

 

Regulatory Liabilities

 

 87,696 

 

 

 93,757 

 

Derivative Liabilities

 

 418,137 

 

 

 617,072 

 

Accrued Pension, SERP and PBOP

 

 63,756 

 

 

 95,895 

 

Other Long-Term Liabilities

 

 143,838 

 

 

 163,588 

Total Deferred Credits and Other Liabilities

 

 2,294,771 

 

 

 2,480,898 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 2,679,775 

 

 

 2,591,208 

 

 

 

 

 

 

 

 

 

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

 

 1,804,228 

 

 

 1,682,047 

 

 

Retained Earnings

 

 1,029,473 

 

 

 961,482 

 

 

Accumulated Other Comprehensive Loss

 

 (1,046)

 

 

 (1,387)

 

Common Stockholder's Equity

 

 2,893,007 

 

 

 2,702,494 

Total Capitalization

 

 5,688,982 

 

 

 5,409,902 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 9,038,497 

 

$

 8,980,502 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30,

 

For the Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

2014 

 

 

2013 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 695,642 

 

$

 648,420 

 

$

 2,017,580 

 

$

 1,841,846 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 255,787 

 

 

 253,152 

 

 

 736,952 

 

 

 667,266 

 

Operations and Maintenance

 

 127,285 

 

 

 127,104 

 

 

 368,562 

 

 

 359,759 

 

Depreciation

 

 46,886 

 

 

 44,786 

 

 

 139,598 

 

 

 132,356 

 

Amortization of Regulatory Assets/(Liabilities), Net

 

 13,098 

 

 

 (27)

 

 

 62,644 

 

 

 11,223 

 

Energy Efficiency Programs

 

 41,399 

 

 

 24,544 

 

 

 119,389 

 

 

 68,211 

 

Taxes Other Than Income Taxes

 

 64,994 

 

 

 64,979 

 

 

 194,105 

 

 

 182,676 

 

 

Total Operating Expenses

 

 549,449 

 

 

 514,538 

 

 

 1,621,250 

 

 

 1,421,491 

Operating Income

 

 146,193 

 

 

 133,882 

 

 

 396,330 

 

 

 420,355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 34,743 

 

 

 32,845 

 

 

 102,290 

 

 

 98,163 

 

Other Interest

 

 3,992 

 

 

 2,439 

 

 

 8,158 

 

 

 801 

 

 

Interest Expense

 

 38,735 

 

 

 35,284 

 

 

 110,448 

 

 

 98,964 

Other Income, Net

 

 6,456 

 

 

 3,861 

 

 

 10,658 

 

 

 10,946 

Income Before Income Tax Expense

 

 113,914 

 

 

 102,459 

 

 

 296,540 

 

 

 332,337 

Income Tax Expense

 

 30,038 

 

 

 36,136 

 

 

 95,980 

 

 

 113,149 

Net Income

$

 83,876 

 

$

 66,323 

 

$

 200,560 

 

$

 219,188 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 83,876 

 

$

 66,323 

 

$

 200,560 

 

$

 219,188 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 111 

 

 

 111 

 

 

 333 

 

 

 333 

 

Changes in Unrealized Gains/(Losses) on Other
   Securities

 

 (7)

 

 

 (1)

 

 

 8 

 

 

 (27)

Other Comprehensive Income, Net of Tax

 

 104 

 

 

 110 

 

 

 341 

 

 

 306 

Comprehensive Income

$

 83,980 

 

$

 66,433 

 

$

 200,901 

 

$

 219,494 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 200,560 

 

$

 219,188 

 

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 139,598 

 

 

 132,356 

 

 

 Deferred Income Taxes

 

 (14,400)

 

 

 89,084 

 

 

 Pension, SERP and PBOP Expense, Net of PBOP Contributions

 

 8,050 

 

 

 16,182 

 

 

 Regulatory Overrecoveries, Net

 

 62,929 

 

 

 24,061 

 

 

 Amortization of Regulatory Assets, Net

 

 62,644 

 

 

 11,223 

 

 

 Proceeds from DOE Damages Claim

 

 68,610 

 

 

 - 

 

 

 Other

 

 (11,290)

 

 

 (8,759)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (87,922)

 

 

 (44,523)

 

 

 Taxes Receivable/Accrued, Net

 

 39,805 

 

 

 841 

 

 

 Accounts Payable

 

 16,984 

 

 

 (101,949)

 

 

 Other Current Assets and Liabilities, Net

 

 (2,575)

 

 

 (29,106)

Net Cash Flows Provided by Operating Activities

 

 482,993 

 

 

 308,598 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (371,660)

 

 

 (294,638)

 

Other Investing Activities

 

 (4,539)

 

 

 2,013 

Net Cash Flows Used in Investing Activities

 

 (376,199)

 

 

 (292,625)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (128,400)

 

 

 (114,000)

 

Cash Dividends on Preferred Stock

 

 (4,169)

 

 

 (4,169)

 

Issuance of Long-Term Debt

 

 250,000 

 

 

 400,000 

 

Retirements of Long-Term Debt

 

 (150,000)

 

 

 (125,000)

 

Decrease in Notes Payable to NU Parent

 

 (181,900)

 

 

 (62,200)

 

Capital Contribution from NU Parent

 

 120,000 

 

 

 - 

 

Decrease in Short-Term Debt

 

 - 

 

 

 (89,000)

 

Other Financing Activities

 

 (3,268)

 

 

 (6,352)

Net Cash Flows Used in Financing Activities

 

 (97,737)

 

 

 (721)

Net Increase in Cash

 

 9,057 

 

 

 15,252 

Cash - Beginning of Period

 

 7,237 

 

 

 1 

Cash - End of Period

$

 16,294 

 

$

 15,253 

 

 

 

 

 

 

 

 

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




8




NSTAR ELECTRIC COMPANY AND SUBSIDIARY

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

$

 11,040 

 

$

 8,021 

 

Receivables, Net

 

 275,902 

 

 

 209,711 

 

Accounts Receivable from Affiliated Companies

 

 47,215 

 

 

 27,264 

 

Unbilled Revenues

 

 39,372 

 

 

 41,368 

 

Materials and Supplies

 

 65,073 

 

 

 44,236 

 

Regulatory Assets

 

 128,205 

 

 

 204,144 

 

Prepayments and Other Current Assets

 

 11,267 

 

 

 36,710 

Total Current Assets

 

 578,074 

 

 

 571,454 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 5,211,681 

 

 

 5,043,887 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 998,030 

 

 

 1,235,156 

 

Other Long-Term Assets

 

 62,644 

 

 

 60,624 

Total Deferred Debits and Other Assets

 

 1,060,674 

 

 

 1,295,780 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 6,850,429 

 

$

 6,911,121 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable

$

 159,500 

 

$

103,500 

 

Long-Term Debt - Current Portion

 

 4,700 

 

 

301,650 

 

Accounts Payable

 

 128,056 

 

 

202,100 

 

Accounts Payable to Affiliated Companies

 

 62,625 

 

 

75,707 

 

Obligations to Third Party Suppliers

 

 37,298 

 

 

5,459 

 

Power Contract Obligations

 

 35,783 

 

 

30,842 

 

Renewable Portfolio Standards Compliance Obligations

 

 34,905 

 

 

 39,686 

 

Accrued Taxes

 

 42,338 

 

 

7,946 

 

Accumulated Deferred Income Taxes

 

 9,622 

 

 

 50,128 

 

Regulatory Liabilities

 

 97,215 

 

 

 53,958 

 

Other Current Liabilities

 

 62,436 

 

 

 39,936 

Total Current Liabilities

 

 674,478 

 

 

 910,912 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 1,425,306 

 

 

 1,466,835 

 

Regulatory Liabilities

 

 266,524 

 

 

 253,108 

 

Accrued Pension, SERP and PBOP

 

 142,249 

 

 

 118,010 

 

Payable to Affiliated Companies

 

 - 

 

 

 64,172 

 

Other Long-Term Liabilities

 

 112,853 

 

 

 142,214 

Total Deferred Credits and Other Liabilities

 

 1,946,932 

 

 

 2,044,339 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 1,792,707 

 

 

 1,499,417 

 

 

 

 

 

 

 

 

 

Preferred Stock Not Subject to Mandatory Redemption

 

 43,000 

 

 

 43,000 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

 - 

 

 

 - 

 

 

Capital Surplus, Paid In

 

 993,163 

 

 

 992,625 

 

 

Retained Earnings

 

 1,400,149 

 

 

 1,420,828 

 

Common Stockholder's Equity

 

 2,393,312 

 

 

 2,413,453 

Total Capitalization

 

 4,229,019 

 

 

 3,955,870 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 6,850,429 

 

$

 6,911,121 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30,

 

For the Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

2014 

 

 

2013 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 727,909 

 

$

 753,879 

 

$

 1,955,609 

 

$

 1,916,557 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 317,784 

 

 

 255,244 

 

 

 879,773 

 

 

659,140 

 

Operations and Maintenance

 

 79,705 

 

 

 97,069 

 

 

 244,610 

 

 

277,261 

 

Depreciation

 

 47,455 

 

 

 45,441 

 

 

 140,996 

 

 

136,323 

 

Amortization of Regulatory Assets/(Liabilities), Net

 

 (15,063)

 

 

 72,740 

 

 

 (916)

 

 

173,289 

 

Amortization of Rate Reduction Bonds

 

 - 

 

 

 - 

 

 

 - 

 

 

15,054 

 

Energy Efficiency Programs

 

 56,915 

 

 

 58,798 

 

 

 145,499 

 

 

161,180 

 

Taxes Other Than Income Taxes

 

 34,513 

 

 

 32,610 

 

 

 99,121 

 

 

95,275 

 

 

Total Operating Expenses

 

 521,309 

 

 

 561,902 

 

 

 1,509,083 

 

 

1,517,522 

Operating Income

 

 206,600 

 

 

 191,977 

 

 

 446,526 

 

 

399,035 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 17,996 

 

 

 19,860 

 

 

 58,485 

 

 

59,261 

 

Other Interest

 

 (658)

 

 

 (1,324)

 

 

 606 

 

 

(7,612)

 

 

Interest Expense

 

 17,338 

 

 

 18,536 

 

 

 59,091 

 

 

51,649 

Other Income, Net

 

 3,287 

 

 

 2,126 

 

 

 3,011 

 

 

3,275 

Income Before Income Tax Expense

 

 192,549 

 

 

 175,567 

 

 

 390,446 

 

 

 350,661 

Income Tax Expense

 

 76,975 

 

 

 68,558 

 

 

 156,655 

 

 

137,499 

Net Income

$

 115,574 

 

$

 107,009 

 

$

 233,791 

 

$

 213,162 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 233,791 

 

$

 213,162 

 

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 140,996 

 

 

 136,323 

 

 

 Deferred Income Taxes

 

 (39,399)

 

 

 26,358 

 

 

 Pension and PBOP Expense, Net of Contributions

 

 (11,046)

 

 

 (55,195)

 

 

 Regulatory Over/(Under) Recoveries, Net

 

 155,357 

 

 

 (11,299)

 

 

 Amortization of Regulatory Assets, Net

 

 (916)

 

 

 173,289 

 

 

 Amortization of Rate Reduction Bonds

 

 - 

 

 

 15,054 

 

 

 Proceeds from DOE Damages Claim

 

 30,193 

 

 

 - 

 

 

 Bad Debt Expense

 

 15,250 

 

 

 19,012 

 

 

 Other

 

 (56,851)

 

 

 (48,291)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (47,770)

 

 

 (80,575)

 

 

 Materials and Supplies

 

 (20,837)

 

 

 7,961 

 

 

 Taxes Receivable/Accrued, Net

 

 60,252 

 

 

 (6,345)

 

 

 Accounts Payable

 

 (40,594)

 

 

 6,856 

 

 

 Accounts Receivable from/Payable to Affiliates, Net

 

 66,758 

 

 

 (59,173)

 

 

 Other Current Assets and Liabilities, Net

 

 32,340 

 

 

 (19,547)

Net Cash Flows Provided by Operating Activities

 

 517,524 

 

 

 317,590 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (309,248)

 

 

 (330,635)

 

Decrease in Special Deposits

 

 - 

 

 

 37,899 

 

Other Investing Activities

 

 - 

 

 

 575 

Net Cash Flows Used in Investing Activities

 

 (309,248)

 

 

 (292,161)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (253,000)

 

 

 (56,000)

 

Cash Dividends on Preferred Stock

 

 (1,470)

 

 

 (1,633)

 

Increase/(Decrease) in Notes Payable

 

 56,000 

 

 

 (120,000)

 

Issuance of Long-Term Debt

 

 300,000 

 

 

 200,000 

 

Retirements of Long-Term Debt

 

 (301,650)

 

 

 (1,650)

 

Retirements of Rate Reduction Bonds

 

 - 

 

 

 (43,493)

 

Other Financing Activities

 

 (5,137)

 

 

 (878)

Net Cash Flows Used in Financing Activities

 

 (205,257)

 

 

 (23,654)

Net Increase in Cash and Cash Equivalents

 

 3,019 

 

 

 1,775 

Cash and Cash Equivalents - Beginning of Period

 

 8,021 

 

 

 13,695 

Cash and Cash Equivalents - End of Period

$

 11,040 

 

$

 15,470 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 2,750 

 

$

 130 

 

Receivables, Net

 

 77,602 

 

 

 76,331 

 

Accounts Receivable from Affiliated Companies

 

 6,271 

 

 

 90 

 

Unbilled Revenues

 

 33,088 

 

 

 38,344 

 

Fuel, Materials and Supplies

 

 141,381 

 

 

 128,736 

 

Regulatory Assets

 

 102,473 

 

 

 92,194 

 

Prepayments and Other Current Assets

 

 22,270 

 

 

 24,100 

Total Current Assets

 

 385,835 

 

 

 359,925 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 2,560,635 

 

 

 2,467,556 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 178,204 

 

 

 219,346 

 

Other Long-Term Assets

 

 54,748 

 

 

 39,891 

Total Deferred Debits and Other Assets

 

 232,952 

 

 

 259,237 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 $

 3,179,422 

 

 $

 3,086,718 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to NU Parent

$

 153,300 

 

$

 86,500 

 

Long-Term Debt - Current Portion

 

 - 

 

 

 50,000 

 

Accounts Payable

 

 58,801 

 

 

 82,920 

 

Accounts Payable to Affiliated Companies

 

 22,932 

 

 

 22,040 

 

Regulatory Liabilities

 

 29,165 

 

 

 20,643 

 

Accumulated Deferred Income Taxes

 

 29,936 

 

 

 28,596 

 

Other Current Liabilities

 

 38,725 

 

 

 51,729 

Total Current Liabilities

 

 332,859 

 

 

 342,428 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 566,298 

 

 

 500,166 

 

Regulatory Liabilities

 

 50,614 

 

 

 51,723 

 

Accrued SERP and PBOP

 

 14,320 

 

 

 15,272 

 

Other Long-Term Liabilities

 

 46,874 

 

 

 46,247 

Total Deferred Credits and Other Liabilities

 

 678,106 

 

 

 613,408 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 999,230 

 

 

 999,006 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

 - 

 

 

 - 

 

 

Capital Surplus, Paid In

 

 702,923 

 

 

 701,911 

 

 

Retained Earnings

 

 473,969 

 

 

 438,515 

 

 

Accumulated Other Comprehensive Loss

 

 (7,665)

 

 

 (8,550)

 

Common Stockholder's Equity

 

 1,169,227 

 

 

 1,131,876 

Total Capitalization

 

 2,168,457 

 

 

 2,130,882 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 3,179,422 

 

$

 3,086,718 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30,

 

For the Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

2014 

 

 

2013 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 223,664 

 

$

 218,608 

 

$

 735,123 

 

$

 708,550 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

 

 64,397 

 

 

 46,668 

 

 

 247,992 

 

 

 197,765 

 

Operations and Maintenance

 

 65,563 

 

 

 69,477 

 

 

 198,025 

 

 

 191,606 

 

Depreciation

 

 24,568 

 

 

 22,919 

 

 

 73,247 

 

 

 68,433 

 

Amortization of Regulatory Assets/(Liabilities), Net

 

 (9,734)

 

 

 225 

 

 

 (17,565)

 

 

 (1,745)

 

Amortization of Rate Reduction Bonds

 

 - 

 

 

 - 

 

 

 - 

 

 

 19,748 

 

Energy Efficiency Programs

 

 3,766 

 

 

 3,990 

 

 

 10,897 

 

 

 11,036 

 

Taxes Other Than Income Taxes

 

 18,702 

 

 

 18,706 

 

 

 53,051 

 

 

 52,640 

 

 

Total Operating Expenses

 

 167,262 

 

 

 161,985 

 

 

 565,647 

 

 

 539,483 

Operating Income

 

 56,402 

 

 

 56,623 

 

 

 169,476 

 

 

 169,067 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 10,896 

 

 

 10,345 

 

 

 33,812 

 

 

 32,951 

 

Other Interest

 

 128 

 

 

 521 

 

 

 183 

 

 

 1,230 

 

 

Interest Expense

 

 11,024 

 

 

 10,866 

 

 

 33,995 

 

 

 34,181 

Other Income, Net

 

 461 

 

 

 792 

 

 

 1,673 

 

 

 2,454 

Income Before Income Tax Expense

 

 45,839 

 

 

 46,549 

 

 

 137,154 

 

 

 137,340 

Income Tax Expense

 

 17,603 

 

 

 18,196 

 

 

 52,199 

 

 

 52,797 

Net Income

$

 28,236 

 

$

 28,353 

 

$

 84,955 

 

$

 84,543 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 28,236 

 

$

 28,353 

 

$

 84,955 

 

$

 84,543 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 290 

 

 

290 

 

 

 871 

 

 

872 

 

Changes in Unrealized Gains/(Losses) on Other
   Securities

 

 (13)

 

 

 (2)

 

 

 14 

 

 

 (47)

 

Changes in Funded Status of Pension, SERP and
   PBOP Benefit Plans

 

 - 

 

 

 - 

 

 

 - 

 

 

 (3)

Other Comprehensive Income, Net of Tax

 

 277 

 

 

288 

 

 

 885 

 

 

822 

Comprehensive Income

$

 28,513 

 

$

 28,641 

 

$

 85,840 

 

$

 85,365 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 84,955 

 

$

 84,543 

 

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 73,247 

 

 

 68,433 

 

 

 Deferred Income Taxes

 

 67,827 

 

 

 57,066 

 

 

 Pension, SERP and PBOP Expense

 

 4,541 

 

 

 20,427 

 

 

 Pension and PBOP Contributions

 

 (1,637)

 

 

 (112,964)

 

 

 Regulatory Over/(Under) Recoveries, Net

 

 16,813 

 

 

 (1,346)

 

 

 Amortization of Regulatory Liabilities, Net

 

 (17,565)

 

 

 (1,745)

 

 

 Amortization of Rate Reduction Bonds

 

 - 

 

 

 19,748 

 

 

 Proceeds from DOE Damages Claim

 

 14,453 

 

 

 - 

 

 

 Other

 

 7,930 

 

 

 7,165 

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 (7,467)

 

 

 8,047 

 

 

 Fuel, Materials and Supplies

 

 (17,350)

 

 

 (30,456)

 

 

 Taxes Receivable/Accrued, Net

 

 (24,108)

 

 

 5,103 

 

 

 Accounts Payable

 

 (9,297)

 

 

 29,148 

 

 

 Other Current Assets and Liabilities, Net

 

 13,470 

 

 

 7,220 

Net Cash Flows Provided by Operating Activities

 

 205,812 

 

 

 160,389 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (170,127)

 

 

 (155,676)

 

(Increase)/Decrease in Special Deposits

 

 (45)

 

 

 22,039 

 

Other Investing Activities

 

 (103)

 

 

 (53)

Net Cash Flows Used in Investing Activities

 

 (170,275)

 

 

 (133,690)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (49,500)

 

 

 (51,000)

 

Increase in Notes Payable to NU Parent

 

 66,800 

 

 

 165,200 

 

Retirements of Long-Term Debt

 

 (50,000)

 

 

 (108,950)

 

Retirements of Rate Reduction Bonds

 

 - 

 

 

 (29,294)

 

Other Financing Activities

 

 (217)

 

 

 456 

Net Cash Flows Used in Financing Activities

 

 (32,917)

 

 

 (23,588)

Net Increase in Cash

 

 2,620 

 

 

 3,111 

Cash - Beginning of Period

 

 130 

 

 

 2,493 

Cash - End of Period

$

 2,750 

 

$

 5,604 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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




16




WESTERN MASSACHUSETTS ELECTRIC COMPANY

 

 

 

 

 

CONDENSED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

$

 1,737 

 

$

 - 

 

Receivables, Net

 

 50,835 

 

 

 49,018 

 

Accounts Receivable from Affiliated Companies

 

 14,522 

 

 

 47,607 

 

Unbilled Revenues

 

 12,664 

 

 

 16,562 

 

Taxes Receivable

 

 11,504 

 

 

 432 

 

Regulatory Assets

 

 38,907 

 

 

 43,024 

 

Marketable Securities

 

 22,107 

 

 

 26,628 

 

Prepayments and Other Current Assets

 

 6,688 

 

 

 10,479 

Total Current Assets

 

 158,964 

 

 

 193,750 

 

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

 1,432,368 

 

 

 1,381,060 

 

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

 

Regulatory Assets

 

 109,690 

 

 

 146,088 

 

Marketable Securities

 

 35,963 

 

 

 31,243 

 

Other Long-Term Assets

 

 50,902 

 

 

 40,679 

Total Deferred Debits and Other Assets

 

 196,555 

 

 

 218,010 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

 1,787,887 

 

$

 1,792,820 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



17




WESTERN MASSACHUSETTS ELECTRIC COMPANY

CONDENSED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes Payable to NU Parent

$

 13,200 

 

$

 - 

 

Long-Term Debt - Current Portion

 

 50,000 

 

 

 - 

 

Accounts Payable

 

 36,558 

 

 

 62,961 

 

Accounts Payable to Affiliated Companies

 

 13,312 

 

 

 9,230 

 

Accrued Interest

 

 2,839 

 

 

 7,525 

 

Regulatory Liabilities

 

 43,462 

 

 

 19,858 

 

Accumulated Deferred Income Taxes

 

 1,920 

 

 

 13,098 

 

Counterparty Deposits

 

 626 

 

 

 7,688 

 

Other Current Liabilities

 

 11,758 

 

 

 20,629 

Total Current Liabilities

 

 173,675 

 

 

 140,989 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

Accumulated Deferred Income Taxes

 

 413,701 

 

 

 396,933 

 

Regulatory Liabilities

 

 10,289 

 

 

 13,873 

 

Accrued SERP and PBOP

 

 2,623 

 

 

 3,911 

 

Other Long-Term Liabilities

 

 38,372 

 

 

 28,619 

Total Deferred Credits and Other Liabilities

 

 464,985 

 

 

 443,336 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

Long-Term Debt

 

 578,686 

 

 

 629,389 

 

 

 

 

 

 

 

 

 

Common Stockholder's Equity:

 

 

 

 

 

 

 

Common Stock

 

 10,866 

 

 

 10,866 

 

 

Capital Surplus, Paid In

 

 391,136 

 

 

 390,743 

 

 

Retained Earnings

 

 171,800 

 

 

 181,014 

 

 

Accumulated Other Comprehensive Loss

 

 (3,261)

 

 

 (3,517)

 

Common Stockholder's Equity

 

 570,541 

 

 

 579,106 

Total Capitalization

 

 1,149,227 

 

 

 1,208,495 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

 1,787,887 

 

$

 1,792,820 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 



18




WESTERN MASSACHUSETTS ELECTRIC COMPANY

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

2014 

 

2013 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

$

 118,145 

 

$

 121,795 

 

$

 363,843 

 

$

 361,763 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Power and Transmission

 

 43,926 

 

 

 38,797 

 

 

 130,977 

 

 

 111,095 

 

Operations and Maintenance

 

 20,820 

 

 

 26,148 

 

 

 67,085 

 

 

 70,213 

 

Depreciation

 

 10,506 

 

 

 9,426 

 

 

 31,144 

 

 

 27,707 

 

Amortization of Regulatory Liabilities, Net

 

 (8,519)

 

 

 (1,412)

 

 

 (7,778)

 

 

 (598)

 

Amortization of Rate Reduction Bonds

 

 - 

 

 

 - 

 

 

 - 

 

 

 7,780 

 

Energy Efficiency Programs

 

 10,983 

 

 

 12,222 

 

 

 33,096 

 

 

 28,462 

 

Taxes Other Than Income Taxes

 

 9,200 

 

 

 7,696 

 

 

 25,679 

 

 

 20,188 

 

 

Total Operating Expenses

 

 86,916 

 

 

 92,877 

 

 

 280,203 

 

 

 264,847 

Operating Income

 

 31,229 

 

 

 28,918 

 

 

 83,640 

 

 

 96,916 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on Long-Term Debt

 

 6,029 

 

 

 5,814 

 

 

 18,195 

 

 

 17,846 

 

Other Interest

 

 547 

 

 

 417 

 

 

 734 

 

 

 954 

 

 

Interest Expense

 

 6,576 

 

 

 6,231 

 

 

 18,929 

 

 

 18,800 

Other Income, Net

 

 502 

 

 

 926 

 

 

 1,670 

 

 

 2,349 

Income Before Income Tax Expense

 

 25,155 

 

 

 23,613 

 

 

 66,381 

 

 

 80,465 

Income Tax Expense

 

 10,490 

 

 

 8,588 

 

 

 26,596 

 

 

 30,424 

Net Income

$

 14,665 

 

$

 15,025 

 

$

 39,785 

 

$

 50,041 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

 14,665 

 

$

 15,025 

 

$

 39,785 

 

$

 50,041 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Qualified Cash Flow Hedging Instruments

 

 85 

 

 

85 

 

 

 254 

 

 

254 

 

Changes in Unrealized Gains/(Losses) on Other
   Securities

 

 (2)

 

 

 - 

 

 

 2 

 

 

 (8)

Other Comprehensive Income, Net of Tax

 

 83 

 

 

 85 

 

 

 256 

 

 

 246 

Comprehensive Income

$

 14,748 

 

$

 15,110 

 

$

 40,041 

 

$

 50,287 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 




19




WESTERN MASSACHUSETTS ELECTRIC COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

(Thousands of Dollars)

2014 

 

2013 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net Income

$

 39,785 

 

$

 50,041 

 

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

 

 

 

 

 

 

 

 Depreciation

 

 31,144 

 

 

 27,707 

 

 

 Deferred Income Taxes

 

 13,479 

 

 

 79,401 

 

 

 Regulatory Overrecoveries, Net

 

 33,630 

 

 

 11,685 

 

 

 Amortization of Regulatory Liabilities, Net

 

 (7,778)

 

 

 (598)

 

 

 Amortization of Rate Reduction Bonds

 

 - 

 

 

 7,780 

 

 

 Proceeds from DOE Damages Claim

 

 18,883 

 

 

 - 

 

 

 Other

 

 615 

 

 

 (544)

 

Changes in Current Assets and Liabilities:

 

 

 

 

 

 

 

 Receivables and Unbilled Revenues, Net

 

 36,075 

 

 

 (32,231)

 

 

 Taxes Receivable/Accrued, Net

 

 (15,831)

 

 

 16,412 

 

 

 Accounts Payable

 

 (12,847)

 

 

 20,260 

 

 

 Other Current Assets and Liabilities, Net

 

 (16,551)

 

 

 (9,857)

Net Cash Flows Provided by Operating Activities

 

 120,604 

 

 

 170,056 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Investments in Property, Plant and Equipment

 

 (82,546)

 

 

 (127,352)

 

Proceeds from Sales of Marketable Securities

 

 58,788 

 

 

 53,552 

 

Purchases of Marketable Securities

 

 (59,280)

 

 

 (54,042)

 

Other Investing Activities

 

 - 

 

 

 7,401 

Net Cash Flows Used in Investing Activities

 

 (83,038)

 

 

 (120,441)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Cash Dividends on Common Stock

 

 (49,000)

 

 

 (30,000)

 

Retirement of Long-Term Debt

 

 - 

 

 

 (55,000)

 

Increase in Notes Payable to NU Parent

 

 13,200 

 

 

 47,900 

 

Retirement of Rate Reduction Bonds

 

 - 

 

 

 (9,352)

 

Other Financing Activities

 

 (29)