Eversource 2005 Annual Report Download - page 42

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40
(Millions of Dollars) 2006 2007 2008 2009 2010 Thereafter
Notes payable to banks (a) $32.0 $ — $ — $ — $ — $ —
Long-term debt (a)(b) 22.7 4.1 155.3 56.5 8.0 2,544.5
Estimated interest payments on existing debt 162.7 160.7 157.9 153.4 151.2 1,759.3
Capital leases (c)(d) 2.7 2.6 2.3 2.0 1.5 16.6
Operating leases (d)(e) 33.4 29.9 26.8 18.8 15.5 42.3
Required funding of other postretirement benefit obligations (e) 49.5 41.7 39.6 37.5 35.9 N/A
Estimated future annual Utility Group costs (d)(e) 947.2 508.9 392.7 361.0 330.0 1,273.4
Estimated future annual NU Enterprises costs (d)(e) 2,255.0 698.2 323.1 22.6 18.2 5.0
Totals $3,505.2 $1,446.1 $1,097.7 $651.8 $560.3 $5,641.1
(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) Long-term debt excludes $268 million of fees and interest due for spent nuclear fuel disposal costs, $5.2 million of net changes in fair value and $3.9 million of net
unamortized discounts.
(c) The capital lease obligations include imputed interest of $13.7 million.
(d) NU has no provisions in its capital or operating lease agreements or agreements related to the estimated future annual Utility Group or NUEnterprises costs that
could trigger a change in terms and conditions, such as acceleration of payment obligations.
(e) Amounts are not included on NU’s consolidated balance sheets.
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’sstandardoffer 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 arenot determinable. For further
information regarding NU’s contractual obligations and commercial
commitments, see the consolidated statements of capitalization and
Note 5, “Short-TermDebt,” Note 9D, “Commitments and Contingencies –
Long-Term Contractual Arrangements,” Note 12, “Leases,” and
Note 13, “Long-Term Debt,” to the consolidated financial statements.
Forward Looking Statements: This discussion and analysis includes
statements concerning NU’sexpectations, 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 arenot 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 regulatorypolicy,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, the methods,
timing and results of disposition of competitive businesses, actions of
rating agencies, 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.