Eversource 2004 Annual Report Download - page 83

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The Utility Group segment, including both the regulated electric
distribution and transmission businesses, as well as the gas distribution
business comprised of Yankee Gas, represents approximately 69 percent,
72 percent, and 78 percent of NU’s total revenues for the years ended
December 31, 2004, 2003 and 2002, respectively, and includes the
operations of the regulated electric utilities, CL&P, PSNH and WMECO,
whose complete financial statements are included in NU’s report on Form
10-K. PSNH’s distribution segment includes generation activities. Also
included in NU’s combined report on Form 10-K is detailed information
regarding CL&P’s, PSNH’s, and WMECO’s transmission businesses. Utility
Group revenues from the sale of electricity and natural gas primarily are
derived from residential, commercial and industrial customers and are
not dependent on any single customer.
The NU Enterprises merchant energy business segment includes Select
Energy, NGC, the generation operations of HWP, and their respective
subsidiaries, while the NU Enterprises services and other business
segment includes SESI, NGS, Woods Network, and their respective
subsidiaries and intercompany eliminations. The results of NU
Enterprises parent are also included within services and other.
Select Energy has served a portion of CL&P’s transitional standard offer
(TSO) or standard offer load for 2004, 2003 and 2002. Total Select Energy
revenues from CL&P for CL&P’s standard offer load, TSO load and for
other transactions with CL&P, represented $611.3 million or 21 percent
for the year ended December 31, 2004, approximately $688 million or
27 percent for the year ended December 31, 2003, and approximately
$631 million or 35 percent for the year ended December 31, 2002, of
total NU Enterprises’ revenues. Total CL&P purchases from Select
Energy are eliminated in consolidation.
WMECO’s purchases from Select Energy for standard offer and default
service and for other transactions with Select Energy represented
approximately $108.5 million, $143 million and $14 million of total NU
Enterprises’ revenues for the years ended December 31, 2004, 2003 and
2002, respectively. Total WMECO purchases from Select Energy are
eliminated in consolidation.
Select Energy revenues related to contracts with NSTAR companies
represented $300.2 million or 11 percent of total NU Enterprises’ revenues
for the year ended December 31, 2004. Select Energy also provides basic
generation service in the New Jersey and Maryland market. Select
Energy revenues related to these contracts represented $334.2 million
or 12 percent of total NU Enterprises’ revenues for the year ended
December 31, 2004, $380.4 million or 15 percent for the year ended
December 31, 2003 and approximately $207.4 million or 12 percent for the
year ended December 31, 2002. No other individual customer represented
in excess of 10 percent of NU Enterprises’ revenues for the years ended
December 31, 2004, 2003, or 2002.
Other in the NU consolidated tables includes the results for Mode 1
Communications, Inc., an investor in NEON, the results of the non-energy-
related subsidiaries of Yankee (Yankee Energy Services Company, RMS,
Yankee Energy Financial Services, and NorConn Properties, Inc.), the
non-energy operations of HWP, the results of NU’s parent and service
companies, and write-downs of certain of the company’s investments.
Interest expense included in other primarily relates to the debt of NU
parent. Other includes after-tax investment write-downs totaling
$8.8 million in 2004 and $11 million in 2002 related to Acumentrics and
NEON. No investment write-downs related to Acumentrics or NEON
were recorded in 2003. Virtually all of the assets and liabilities of RMS
were sold on June 30, 2004.