Eversource 2003 Annual Report Download - page 52

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At December 31,
(Thousands of Dollars) 2003 2002
Common Shareholders’ Equity $2,264,120 $2,210,521
Preferred Stock:
CL&P Preferred Stock Not Subject
to Mandatory Redemption —
$50 par value — authorized
9,000,000 shares in 2003 and 2002;
2,324,000 shares outstanding
in 2003 and 2002; Dividend rates
of $1.90 to $3.28; Current redemption
prices of $50.50 to $54.00 116,200 116,200
Long-Term Debt: (a)
First Mortgage Bonds:
Final Maturity Interest Rates
2005 5.00% to 6.75% 89,000 116,000
2009-2012 6.20% to 7.19% 80,000 80,000
2019-2024 7.88% to 10.07% 254,045 254,995
2026 8.81% 320,000 320,000
Total First Mortgage Bonds 743,045 770,995
Other Long-Term Debt: (b)
Pollution Control Notes:
2016–2018 5.90% 25,400 25,400
2021–2022 Adjustable Rate and
5.45% to 6.00% 428,285 428,285
2028 5.85% to 5.95% 369,300 369,300
2031 3.35% until 2008 (c) 62,000 62,000
Other: (d)
2003 6.24% —1,400
2004–2007 6.11% to 8.81% 76,249 101,543
2008 3.30% 150,000 —
2010 5.95% to 8.23% 8,955 6,753
2012–2014 5.00% to 9.24% 320,627 263,876
2018–2019 6.00% to 6.23% 38,476 24,297
2021–2022 6.25% to 7.63% 39,461 40,712
2024 6.23% 9,368 —
2026 7.69% 26,164 —
Total Pollution Control Notes and Other 1,554,285 1,323,566
Total First Mortgage Bonds, Pollution Control
Notes and Other 2,297,330 2,094,561
Fees and interest due for spent nuclear fuel
disposal costs (e) 256,438 253,638
Change in Fair Value (f) (3,577) —
Unamortized premium and discount, net (3,924) (4,149)
Total Long-Term Debt 2,546,267 2,344,050
Less: Amounts due within one year 64,936 56,906
Long-Term Debt, Net 2,481,331 2,287,144
Total Capitalization $4,861,651 $4,613,865
The accompanying notes are an integral part of these consolidated financial statements.
(a) Long-term debt maturities and cash sinking fund requirements on debt
outstanding at December 31, 2003, for the years 2004 through 2008 and
thereafter, are as follows:
(Millions of Dollars)
Year
2004 $ 64.9
2005 92.1
2006 27.8
2007 9.6
2008 161.2
Thereafter 1,941.7
Total $2,297.3
Essentially all utility plant of CL&P, PSNH, NGC, and Yankee is subject to the liens of
each company’s respective first mortgage bond indenture.
CL&P has $315.5 million of pollution control notes secured by second mortgage liens
on transmission assets, junior to the liens of its first mortgage bond indentures.
CL&P has $62 million of tax-exempt Pollution Control Revenue Bonds (PCRBs) with
bond insurance and secured by the first mortgage bonds. For financial reporting
purposes, this debt is not considered to be first mortgage bonds unless CL&P failed to
meet its obligations under the PCRBs.
PSNH entered into financing arrangements with the Business Finance Authority
(BFA) of the state of New Hampshire. Pursuant to which, the BFA issued five
series of PCRBs and loaned the proceeds to PSNH. At December 31, 2003 and
2002, $407.3 million of the PCRBs were outstanding. PSNH’s obligation to repay
each series of PCRBs is secured by bond insurance and first mortgage bonds.
Each such series of first mortgage bonds contains similar terms and provisions as
the applicable series of PCRBs. For financial reporting purposes, these first mortgage
bonds would not be considered outstanding unless PSNH failed to meet its
obligations under the PCRBs.
NU’s long-term debt agreements provide that certain of its subsidiaries must comply
with certain financial and non-financial covenants as are customarily included in
such agreements, including but not limited to, debt service coverage ratios and
interest coverage ratios. The parties to these agreements currently are and expect
to remain in compliance with these covenants.
(b) The weighted average effective interest rate on the variable-rate pollution control
notes ranged from 0.99 percent to 1.08 percent for 2003 and 1.39 percent to
1.42 percent for 2002.
(c) The interest rate of 3.35 percent is effective through October 1, 2008 at which
time the bonds will be remarketed, and the interest rate will be adjusted.
(d) Other long-term debt — other at December 31, 2003, includes the issuance of
$150 million, $63.4 million and $55 million of long-term debt related to NU
parent, SESI and WMECO in 2003.
(e) For information regarding fees and interest due for spent nuclear fuel disposal
costs, see Note 7D, “Commitments and Contingencies — Spent Nuclear Fuel
Disposal Costs,” to the consolidated financial statements.
(f) The fair value of the NU parent 7.25 percent amortizing note due 2012 in the
amount of $263 million is hedged with a fixed to floating interest rate swap. The
change in fair value of the debt was recorded as an adjustment to long-term debt
with an equal and offsetting adjustment to derivative assets for the change in fair
value of the fixed to floating interest rate swap.
Consolidated Statements
of Capitalization
Notes to Consolidated Statements
of Capitalization