Eversource 2009 Annual Report Download - page 127

FS-42
Tax Years: The following table summarizes NU, CL&P, PSNH and WMECO's tax years that remain subject to examination by major tax
jurisdictions as of December 31, 2009:
Description Tax Years
Federal 2009
Connecticut 2001 – 2009
New Hampshire 2006 – 2009
Massachusetts 2006 – 2009
While discussions are currently ongoing with tax authorities, it is reasonably possible that one or more of these open tax years could be
resolved within the next twelve months. Management estimates that potential resolutions, which relate to timing and other differences,
could result in a zero to $22 million decrease in unrecognized tax benefits on an NU consolidated basis and a zero to $14 million
decrease in unrecognized tax benefits by CL&P. These estimated changes are related to timing and other tax impacts, which could
have an impact on NU and CL&P 2010 earnings of zero to $14 million and zero to $9 million, respectively. Other companies' impacts
are not expected to be material.
J. Property, Plant and Equipment and Accumulated Depreciation
The following tables summarize the NU, CL&P, PSNH, and WMECO investments in utility plant as of December 31, 2009 and 2008:
As of December 31,
2009 2008
(Millions of Dollars) NU NU
Distribution - electric $ 5,893.9 $ 5,600.7
Distribution - gas 1,071.1 1,043.7
Transmission 3,219.2 2,981.2
Generation 660.1 637.5
Electric and gas utility 10,844.3 10,263.1
Other (1) 265.6 290.1
Total property, plant and equipment 11,109.9 10,553.2
Less: accumulated depreciation
Electric and gas utility 2,721.3 2,610.5
Other 120.3 159.6
Total accumulated depreciation 2,841.6 2,770.1
Net property, plant and equipment 8,268.3 7,783.1
Construction work in progress 571.7 424.8
Total property, plant and equipment, net $ 8,840.0 $ 8,207.9
(1) These assets primarily relate to the Rocky River Realty Company (RRR) ($143.8 million and $119.7 million) and NUSCO ($109
million and $135 million) as of December 31, 2009 and 2008, respectively.
As of December 31,
2009 2008
(Millions of Dollars) CL&P PSNH WMECO CL&P PSNH WMECO
Distribution $ 3,960.1 $ 1,309.2 $ 654.9 $ 3,780.3 $ 1,228.6 $ 625.0
Transmission 2,573.2 450.2 195.7 2,464.4 372.4 156.5
Generation - 660.1 - - 637.5 -
Total property, plant and equipment 6,533.3 2,419.5 850.6 6,244.7 2,238.5 781.5
Less: accumulated depreciation 1,426.6 805.5 218.2 1,346.1 771.3 214.7
Net property, plant and equipment 5,106.7 1,614.0 632.4 4,898.6 1,467.2 566.8
Construction work in progress 233.9 200.7 73.4 190.5 113.8 57.4
Total property, plant and equipment, net $ 5,340.6 $ 1,814.7 $ 705.8 $ 5,089.1 $ 1,581.0 $ 624.2
PSNH charges planned major maintenance activities to Operating expense unless the cost represents the acquisition of additional
components. PSNH capitalizes the cost of plant additions.
In 2008, CL&P, PSNH and WMECO entered into certain equipment purchase contracts that required the Company to make advance
payments during the design, manufacturing, shipment and installation of equipment. As of December 31, 2009 and 2008, these
advance payments totaled $27 million and $13.8 million, respectively ($5.4 million and $3.6 million for CL&P, $16.6 million and $8.9
million for PSNH and $5 million and $1.3 million for WMECO), respectively, and are included in Property, plant and equipment, net on
the accompanying consolidated balance sheets.