Eversource 2005 Annual Report Download - page 7

Our liquefied natural gas (LNG) facility in Waterbury,
Connecticut, for example, will allow Yankee Gas to store
more gas for use by customers during peak demand periods.
The biggest construction project in Yankee Gas history,
this LNG facility will be operational for the 2007–08
heating season.
Our Northern Wood Power Project in New Hampshire
will allow us to burn 400,000 tons a year of regionally
harvested, low-grade wood, displacing fuels that would
otherwise need to be imported into New England. One
of the largest renewable energy projects in the country,
this facility will be operational in the second half of 2006.
It will enable us to economically produce cleaner electric
energy from this renewable resource, and it will provide a
$20 million boost to New Hampshire’s regional economy.
For customers who want to control their energy use and
costs, we offer nationally recognized Conservation and
Load Management programs. Strong partnerships among
NU, regulators and state legislatures produce effective
programs that provide long-term benefits — energy and
cost savings, environmental protection and economic
development. The conservation measures installed across
our three states in 2005 will save customers $41.2 million
dollars a year in energy costs, or more than seven times
their original investment over the lifetime of the measures.
These programs will further produce 4.6 billion kilowatt-hour
lifetime savings and reduce lifetime air pollution by 4,821
tons of sulfur oxides, 1,778 tons of nitrogen oxides and
2.8 million tons of carbon dioxide.
Competitive businesses:
Divestiture process well under way
During 2005, we announced a major change — the decision
to divest our competitive retail and wholesale marketing,
merchant generation and energy services businesses
known as NU Enterprises, Inc. (NUEI). This decision
contributed to a loss of $398.2 million in 2005 due to
exit charges and related accounting adjustments.
NUEI has made significant progress in exiting its
competitive businesses. At year-end 2005, we exited all
New England wholesale obligations, sold almost half of
the energy service companies, and initiated the process
to sell the competitive generation and retail marketing
businesses. Encouraged by the progress and the
feedback we have received from the market, we plan to
complete the divestiture of these operations in 2006 —
retail marketing by mid-year and competitive generation
by year-end.
Driven by our values
For more than a century, through our predecessor
companies, Northeast Utilities has served customers
with safe, reliable energy. Forty years ago this July,
the Northeast Utilities system of companies was
formed and became the largest utility in New England.
As today’s energy issues present new and complex
challenges, one thing remains unchanged: our commitment
to conducting business founded on the firm core values
of safety, respect and appreciation, honesty and integrity,
and customer and community care. These values guide
our Board of Trustees, leadership team and the actions
of every employee.
Looking ahead as we transform, streamline and grow the
company, we are guided by a clear strategy, disciplined
decision making and accountable performance.
To everyone on the NU team, our dedicated employees,
the retirees who devoted their careers to NU companies,
shareholders who have trusted their investment to us,
and customers whose energy we deliver every day, we
thank you. We are proud to be, and determined to
remain, a leader in the energy industry.
Charles W. Shivery
Chairman, President and Chief Executive Officer
NORTHEAST UTILITIES ANNUAL REPORT 2005
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