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50 NU 2006 ANNUAL REPORT
Management is responsible for the preparation, integrity, and fair
presentation of the accompanying consolidated financial statements
of Northeast Utilities and subsidiaries (NU) and of other sections of
this annual report. These financial statements, which were audited
by Deloitte & Touche LLP, have been prepared in conformity with
accounting principles generally accepted in the United States of
America using estimates and judgments, where required, and giving
consideration to materiality.
Management is responsible for establishing and maintaining adequate
internal controls over financial reporting. The Company’s internal
control framework and processes have been designed to provide
reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. There are
inherent limitations of internal controls over financial reporting that
could allow material misstatements due to error or fraud to occur and
not be prevented or detected on a timely basis by employees during
the normal course of business. Additionally, internal controls over
financial reporting may become inadequate in the future due to changes
in the business environment. Under the supervision and with the
participation of management, including our principal executive officer
and principal financial officer, NU conducted an evaluation of the
effectiveness of internal controls over financial reporting based on
criteria established in Internal Control – Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Based on this evaluation under the framework
in COSO, management concluded that our internal controls over
financial reporting were effective as of December 31, 2006.
Deloitte & Touche LLP has issued an attestation report on
management’s assessment of internal controls over financial
reporting.
February 26, 2007
COMPANY REPORT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING