Eversource 2004 Annual Report Download - page 43

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41
(Millions of Dollars) 2005 2006 2007 2008 2009 Thereafter
Notes payable to banks (a) $ 180.0 $ — $ — $ — $ — $ —
Long-term debt (a) 90.8 27.0 8.2 159.8 61.5 2,277.7
Estimated interest payments on existing debt 153.0 149.8 147.9 144.8 140.0 1,614.3
Capital leases (b)(c) 3.1 2.9 2.6 2.3 2.0 18.1
Operating leases (c)(d) 30.9 28.5 24.5 21.0 12.5 41.3
Required funding of other post-retirement benefit obligations 50.3 46.8 39.4 29.6 21.4 N/A
Long-term contractual arrangements (c)(d) 729.5 682.9 461.0 366.0 336.0 1,544.6
Select Energy purchase agreements (c)(d)(e) 4,940.1 650.8 156.4 99.0 85.6 261.1
Totals $6,177.7 $1,588.7 $840.0 $822.5 $659.0 $5,757.1
(a) Included in NU’s debt agreements are usual and customary positive, negative and financial covenants. Non-compliance with certain covenants, for example the timely
payment of principal and interest, may constitute an event of default, which could cause an acceleration of principal in the absence of receipt by the company of a waiver
or amendment. Such acceleration would change the obligations outlined in the table of contractual obligations and commercial commitments.
(b) The capital lease obligations include imputed interest of $16.2 million.
(c) NU has no provisions in its capital or operating lease agreements or agreements related to its long-term contractual arrangements or Select Energy purchase commitments
that could trigger a change in terms and conditions, such as acceleration of payment obligations.
(d) Amounts are not included on NU’s consolidated balance sheets.
(e) Select Energy’s purchase agreement amounts can exceed the amount expected to be reported in fuel, purchased and net interchange power because energy trading
purchases are classified in revenues.
Rate reduction bond amounts are non-recourse to NU, have no required
payments over the next five years and are not included in this table.
The Utility Group’s standard offer service contracts and default service
contracts also are not included in this table. The estimated payments
under interest rate swap agreements are not included in this table as
the estimated payment amounts are not determinable. For further
information regarding NU’s contractual obligations and commercial
commitments, see the Consolidated Statements of Capitalization and
related footnotes, and Note 2, “Short-Term Debt,” Note 6D, “Commitments
and Contingencies — Long-Term Contractual Arrangements,” and
Note 9, “Leases,” to the consolidated financial statements.
Forward Looking Statements: This discussion and analysis includes
statements concerning NU’s expectations, plans, objectives, future
financial performance and other statements that are not historical
facts. These statements are “forward looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. In
some cases the reader can identify these forward looking statements
by words such as “estimate,” “expect,” “anticipate,” “intend,” “plan,”
“believe,” “forecast,” “should,” “could,” and similar expressions.
Forward looking statements involve risks and uncertainties that may
cause actual results or outcomes to differ materially from those
included in the forward looking statements. Factors that may cause
actual results to differ materially from those included in the forward
looking statements include, but are not limited to, actions by state
and federal regulatory bodies, competition and industry restructuring,
changes in economic conditions, changes in weather patterns, changes
in laws, regulations or regulatory policy, expiration or initiation of
significant energy supply contracts, changes in levels of capital
expenditures, developments in legal or public policy doctrines,
technological developments, volatility in electric and natural gas
commodity markets, effectiveness of our risk management policies and
procedures, changes in accounting standards and financial reporting
regulations, fluctuations in the value of electricity positions, changes in
the ability to sell electricity positions and close out natural gas positions
at anticipated margins, obtaining new contracts at anticipated volumes
and margins, terrorist attacks on domestic energy facilities and other
presently unknown or unforeseen factors. Other risk factors are detailed
from time to time in our reports to the SEC. Management undertakes no
obligation to update the information contained in any forward looking
statements to reflect developments or circumstances occurring after
the statement is made.
Web Site: Additional financial information is available through NU’s web
site at www.nu.com.