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44
Interest Expense, Net
Interest expense, net increased $7 million in 2004 primarily due to the
issuance of $75 million of ten-year notes at Yankee Gas in January of
2004, the issuance of $50 million of thirty-year senior notes at WMECO
in September of 2004, and the issuance of $150 million of five-year
notes at NU Parent in June of 2003.
Other Income, Net
Other income, net increased $10 million in 2004 primarily due to the
recognition, beginning in 2004, of a CL&P procurement fee approved
in the TSO docket decision ($12 million).
Income Tax (Benefit)/Expense
Income tax expense increased by $3 million in 2004 due to higher
reversal of prior flow-through depreciation and lower favorable
adjustments to tax expense, partially offset by lower state income
tax expense, due to increased state tax credits and favorable unitary
apportionment.
(Loss)/Income from Discontinued Operations
Beginning with the quarter ended September 30, 2005, the operations of
SESI, SECI-NH, Woods Network and Woods Electrical were presented
as discontinued operations as a result of meeting certain criteria requiring
this presentation. Under this presentation, revenues and expenses of
these businesses are included in the (loss)/income from discontinued
operations on the consolidated statements of income. See Note 4,
“Assets Held for Sale and Discontinued Operations,” to the consolidated
financial statements for a description and explanation of the discontinued
operations.
Cumulative Effects of Accounting Changes,
Net of Tax Benefits
Acumulative effect of accounting change, net of tax benefit($5 million)
was recorded in the third quarter of 2003 in connection with the adoption
of FIN 46, which required NU to consolidate RMS into NU’s financial
statements and adjust its equity interest as a cumulative effect of an
accounting change.