Eversource 2005 Annual Report Download - page 66

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Q. Materials and Supplies
Materials and supplies include materials purchased primarily for
construction, operation and maintenance (O&M) purposes. Materials
and supplies are valued at the lower of average cost or market.
R. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and short-term cash
investments that are highly liquid in nature and have original maturities
of three months or less. At the end of each reporting period, overdraft
amounts are reclassified from cash and cash equivalents to accounts
payable.
S. Special Deposits
Special deposits represent amounts Select Energy has on deposit
with unaffiliated counterparties and brokerage firms in the amounts
of $103.8 million and $46.3 million at December 31, 2005 and 2004,
respectively. SESI special deposits totaling $10.2 million are included
in assets held for sale on the accompanying consolidated balance
sheet at December 31, 2005. Special deposits at December 31, 2004
also included $20 million in escrow for SESI that had not been spent
on construction projects and $16.3 million in escrow for Yankee Gas,
which represented payment for Yankee Gas’ first mortgage bonds that
werepaid on June 1, 2005.
T. Restricted Cash – LMP Costs
Restricted cash – LMP costs represents incremental LMP cost
amounts that were collected by CL&P and deposited into an escrow
account.
U. Excise Taxes
Certain excise taxes levied by state or local governments are collected
by NU from its customers. These excise taxes are accounted for on a
gross basis with collections in revenues and payments in expenses.
For the years ended December 31, 2005, 2004 and 2003, gross receipts
taxes, franchise taxes and other excise taxes of $112.7 million, $97
million, and $96.8 million, respectively, are included in operating revenues
and taxes other than income taxes on the accompanying consolidated
statements of (loss)/ income.
V.Other Income, Net
The pre-tax components of other income/(loss) items are as follows:
For the Years Ended December 31,
(Millions of Dollars) 2005 2004 2003
Other Income:
Investment income $20.1 $12.5 $ 5.6
CL&P procurement fee 17.8 11.7 —
AFUDC – equity funds 12.3 3.8 6.5
Gain on disposition of property 2.7 3.8 2.6
Return on regulatory deferrals 1.4 1.8 5.8
Conservation and load management
incentive 7.7 6.7 2.3
Equity in earnings of regional
nuclear generating and
transmission companies 3.3 2.6 4.5
Gain on sale of RMS —0.8 —
Other 5.9 5.1 3.8
Total Other Income 71.2 48.8 31.1
Other Loss:
Environmental reserves (5.1) (0.3) —
Charitable contributions (4.7) (4.6) (9.2)
Investment write-downs (6.9) (13.8) (1.4)
Rate reduction bond
administrative fees (3.3) (3.4) (3.5)
Other (14.0) (12.1) (12.9)
Total Other Loss (34.0) (34.2) (27.0)
Total Other Income, Net $37.2 $14.6 $ 4.1
None of the amounts in either other income – other or other loss –
other are individually significant as defined by the SEC.
W.Supplemental Cash Flow Information
For the Years Ended December 31,
(Millions of Dollars) 2005 2004 2003
Cash (received)/paid during the year for:
Interest, net of amounts capitalized $276.7 $244.6 $241.3
Income taxes $ (56.1) $ 74.3 $248.3
In 2005, NU Enterprises sold certain assets of SECI-NH. The sales
price included a note receivable of $0.3 million with interest only
payments due on the note for the first two years and the principle
amount due at the end of two years.
X. Marketable Securities
SERP and Prior Spent Nuclear Fuel Trusts: NU’smarketable securities are
classified as available-for-sale, as defined by SFAS No. 115, “Accounting
for Certain Investments and Debt and Equity Securities.” Unrealized
gains and losses are reported as a component of accumulated other
comprehensive income on the consolidated statements of shareholders’
equity.NU currently maintains two trusts that hold marketable securities.
The trusts areused to fund NU’sSupplemental Executive Retirement
Plan (SERP) and WMECO’s prior spent nuclear fuel liability. Realized
gains and losses related to the SERP assets areincluded in other income,
net, on the consolidated statements of (loss)/income. Realized gains/
(losses) associated with the WMECO spent nuclear fuel trust are included
in fuel, purchased and net interchange power on the consolidated
statements of (loss)/income.
Globix: On July 19, 2004, NEON Communications, Inc. (NEON) and
Globix Corporation (Globix) announced a definitive merger agreement
in which Globix, an unaffiliated publicly owned entity, would acquire