Eversource 2005 Annual Report Download - page 69

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(Millions of Dollars)
Special deposits $10.2
Accounts and notes receivable 8.6
Other current assets 1.3
Other assets 2.2
Long-term contract receivables 79.5
Total assets 101.8
Accounts and notes payable 3.0
Other current liabilities 3.2
Long-term debt 86.3
Other liabilities 9.0
Total liabilities 101.5
Net assets $0.3
Discontinued Operations: NU’s consolidated statements of (loss)/income
for the years ended December 31, 2005, 2004, and 2003 present the
operations for SESI, Woods Electrical, SECI-NH, and Woods Network as
discontinued operations as a result of meeting certain criteria requiring
this presentation. Under this presentation, revenues and expenses of
these businesses are classified net of tax in (loss)/income from discon-
tinued operations on the accompanying consolidated statements of (loss)/
income and all prior periods have been reclassified. These businesses
are included as part of the NU Enterprises reportable segment in Note
17, “Segment Information,” to the consolidated financial statements.
Summarized financial information for the discontinued operations is
as follows:
For the Years Ended December 31,
(Millions of Dollars) 2005 2004 2003
Operating revenue $116.3 $170.9 $130.7
Restructuring and impairment charges $25.1 $ — $ —
(Loss)/income before income tax
(benefit)/expense $ (38.1) $4.6 $ 7.8
Loss from sale $ (1.1) $— $—
Income tax (benefit)/expense $(15.9) $ 1.0 $ 3.1
Net (loss)/income from
discontinued operations $ (23.3) $3.6 $ 4.7
On November 8, 2005, NU Enterprises completed the sale of certain
assets of SECI-NH (including 100 percent of the common stock of
Reeds Ferry) and recognized a pre-tax loss on disposal of $0.3 million.
On November 22, 2005, NU Enterprises completed the sale of Woods
Network and recognized a pre-tax loss on disposal of $0.8 million. The
proceeds from these two sales totaled $6.5 million. The pre-tax losses
on disposal associated with the sales of these businesses are included
as losses from dispositions in discontinued operations on the
accompanying consolidated statement of (loss)/income for the year
ended December 31, 2005.
Included in discontinued operations for the years ended December 31,
2005, 2004, and 2003 is $11.7 million, $26.3 million, and $5 million,
respectively, of intercompany revenues that are not eliminated in
consolidation due to the separate presentation of discontinued operations.
At December 31, 2005, NU does not expect that after the disposal it
will have significant ongoing involvement or continuing cash flows
with the entities presented in discontinued operations.
5. Short-Term Debt
Limits: The amount of short-term borrowings that may be incurred by
NU and its operating companies is subject to periodic approval by
either the SEC, the FERC, or by their respective state regulators. On
October 28, 2005 the SEC amended its June 30, 2004 order, granting
authorization to allow NU, CL&P, WMECO, and Yankee Gas to incur
total short-term borrowings up to a maximum of $700 million, $450
million, $200 million, and $150 million, respectively, through June 30,
2007. The SEC also granted authorization for borrowing through the
NU Money Pool (Pool) until June 30, 2007. Although PUHCA was
repealed on February 8, 2006, under FERC’s transition rules, all of the
existing orders under PUHCA relevant to FERC authority will continue
to be in effect until December 31, 2007, except for those related to
NU and Yankee Gas, which will have no borrowing limitations after
February 8, 2006. CL&P and WMECO will be subject to FERC jurisdiction
as to issuing short-term debt after February 8, 2006 and must renew
any short-term authority after the PUHCA order expires on December
31, 2007.
PSNH is authorized by the NHPUC to incur short-term borrowings up
to a maximum of $100 million. As a result of this NHPUC authorization,
PSNH is not required to obtain SEC or FERC approval for its short-term
debt borrowings.
The charter of CL&P contains preferred stock provisions restricting the
amount of unsecured debt that CL&P may incur. In November of 2003,
CL&P obtained authorization from its stockholders to issue unsecured
indebtedness with a maturity of less than 10 years in excess of the
10 percent of total capitalization limitation in CL&P’s charter, provided
that all unsecured indebtedness would not exceed 20 percent of total
capitalization for a ten-year period expiring in March of 2014. On
March 18, 2004, the SEC approved this change in CL&P’s charter.
As of December 31, 2005, CL&P is permitted to incur $531.9 million
of additional unsecured debt.
Utility Group Credit Agreement: On December 9, 2005, CL&P, PSNH,
WMECO, and Yankee Gas amended their 5-year unsecured revolving
credit facility for $400 million by extending the expiration date by one
year to November 6, 2010. CL&P may draw up to $200 million, with
PSNH, WMECO and Yankee Gas able to draw up to $100 million each,
subject to the $400 million maximum borrowing limit. This total
commitment may be increased to $500 million, subject to approval,
at the request of the borrower. Under this facility, each company may
borrow on a short-term basis or on a long-term basis, subject to
regulatory approval. At December 31, 2005, there were no borrowings
outstanding under this facility.At December 31, 2004, therewere
$80 million in borrowings under this credit facility.
NU Parent Credit Agreement: On December 9, 2005, NU amended and
restated its 5-year unsecured revolving credit and LOC facility of $500
million to a maximum borrowing limit of $700 million and extended the
expiration date by one year to November 6, 2010. The amended facility
provides a total commitment of $700 million which is available for
advances, subject to an LOC sub-limit. Subject to the advances
outstanding, LOCs may be issued in notional amounts up to $550 million
for periods up to 364 days. The agreement provides for LOCs to be
issued in the name of NU or any of its subsidiaries. This total commitment
may be increased to $800 million, subject to approval, at the request
of the borrower. Under this facility, NU can borrow either on a short-term
or a long-termbasis. At December 31, 2005 and 2004, therewere $32
million and $100 million, respectively, in borrowings under this credit
facility. In addition, there were $253 million and $48.9 million in LOCs
outstanding at December 31, 2005 and 2004, respectively.