Eversource 2002 Annual Report Download - page 7

Rising Dividend and Successful Share Repurchase
Management expects to continue to grow the dividend in order to achieve one of
the highest dividend growth rates in our industry. The NU Board of Trustees will continue
to evaluate the company’s dividend based on our earnings target and other factors.
On May 14, 2002, the Board approved a 10 percent increase in the quarterly dividend
to $0.1375 per share, effective with the third quarter of 2002. Similar dividends were
declared for the fourth quarter of 2002 and the first quarter of 2003.
One of the best investments we can make is in our company, which is why we continue
our share repurchase program. We have been pleased with its effect on our earnings per
share in both 2002 and 2001. By repurchasing NU shares in the open market, we can
spread our earnings and dividends across fewer shares. We spent more than $57 million
in 2002 to repurchase some 3.7 million NU shares at an average price of about $15.78
per share. Our Board has authorized the repurchase of up to an additional 7 million
shares in the first half of 2003. We will evaluate the program in light of industry liquidity
standards and our capital program, which have both changed dramatically over the past
two years.
Utilities are among the highest yielding stocks in the U.S., with dividends especially
important to our investors. Consequently, we support President Bush’s proposal to
end the double taxation on dividends and again ask that you join us in that support.
Balanced Growth, With Reinvestment in Transmission and Distribution
Our vision of a region enjoying growth and vitality is intrinsically linked to ensuring
the reliability and capacity of its energy infrastructure. With regular infusions of financial
capital we are substantially reinvesting in our regulated businesses to provide customers
a wider choice of energy supply and reliability improvements, as well as to deliver steady
growth and profitability to our shareholders.
CL&P, exclusively a transmission and distribution business following the 2002 sales of
its interests in the Seabrook and Vermont Yankee nuclear plants, continues to improve
infrastructure, reliability and efficiency. Last year CL&P invested approximately $140 million
in distribution lines, $35 million in the transmission system, $20 million in new meters
and other customer services, and $17 million in substations. We expect to increase
spending in these projects to ensure the reliability of bulk power supplies in Connecticut.
At Yankee Gas, our investments are bringing increased fuel choice and energy options,
the underpinnings of successful local economic development initiatives and satisfied
energy customers. Yankee Gas invested $70 million in new projects in 2002, about triple
the amount before Yankee rejoined NU. We built the first natural gas distribution line
into East Lyme, Connecticut, and continue to refine plans and secure approvals for a
liquefied natural gas storage and production facility at our Waterbury work center. Our
goal is to provide a secure, reliable natural gas supply that will help keep prices stable
for our customers.
With New Hampshire experiencing the fastest growing economy in New England,
PSNH invested some $110 million in new projects in 2002 and will continue to invest
heavily in 2003 to expand the distribution and transmission system and upgrade the
operations of its fossil-fueled plants.
At WMECO, completion of a new $4.4 million substation – the first substation built
in 30 years in this service area – connects a gas-fired electric generation facility to the
New England grid, offering customers yet another source of electricity.
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