Eversource 2009 Annual Report Download - page 128

FS-43
The following table summarizes average depreciable lives as of December 31, 2009:
Average Depreciable Life
(Years) NU CL&P PSNH WMECO
Distribution 33.3 30.3 40.4 32.7
Transmission 43.7 42.6 46.7 55.8
Generation 31.7 - 31.7 -
Other 19.7 - - -
The provision for depreciation on utility assets is calculated using the straight-line method based on the estimated remaining useful lives
of depreciable plant in-service, adjusted for salvage value and removal costs, as approved by the appropriate regulatory agency (the
DPUC, NHPUC, and the DPU for CL&P, PSNH, and WMECO, respectively). Depreciation rates are applied to plant-in-service from the
time it is placed in service. When a plant is retired from service, the original cost of the plant is charged to the accumulated provision for
depreciation, which includes cost of removal less salvage. Cost of removal is classified as a Regulatory liability. The depreciation rates
for the several classes of utility plant-in-service are equivalent to composite rates as follows:
(Percent) 2009 2008 2007
NU 2.9 3.0 3.2
CL&P 3.0 3.1 3.3
PSNH 2.7 2.7 2.8
WMECO 2.9 2.8 2.9
K. Equity Method Investments
Regional Nuclear Companies: As of December 31, 2009, CL&P, PSNH and WMECO owned common stock in three regional nuclear
companies (Yankee Companies). Each of the Yankee Companies owned a single nuclear generating plant that has been
decommissioned. Ownership interests in the Yankee Companies as of December 31, 2009, which are accounted for on the equity
method, are as follows:
(Percent) CYAPC YAEC MYAPC
CL&P 34.5 24.5 12.0
PSNH 5.0 7.0 5.0
WMECO 9.5 7.0 3.0
Total NU 49.0 % 38.5 % 20.0 %
The total carrying values of ownership interests in CYAPC, YAEC and MYAPC, which are included in Deferred debits and other assets -
other on the accompanying consolidated balance sheets and the Regulated companies - Electric distribution reportable segment, are as
follows:
(Millions of Dollars) 2009 2008
CL&P $ 1.6 $ 5.0
PSNH 0.4 0.8
WMECO 0.5 1.4
Total NU $ 2.5 $ 7.2
Regional Transmission Companies: NU parent has a 22.7 percent equity ownership interest in two companies that transmit electricity
imported from the Hydro-Québec system in Canada. NU parent's investment, which is included in Deferred debits and other assets -
other on the accompanying consolidated balance sheets, totaled $6.2 million and $7.2 million as of December 31, 2009 and 2008,
respectively.
Dividends received from the Yankee Companies and the regional transmission companies investments were recorded as a reduction to
NU's, including CL&P, PSNH and WMECO, investment and were $3.8 million, $1 million, and $4.5 million for the years ended
December 31, 2009, 2008 and 2007, respectively ($1.5 million, zero, and $2.6 million for CL&P, $0.2 million, zero, and $0.5 million for
PSNH and $0.4 million, zero, and $0.7 million for WMECO, respectively).
Net earnings related to these equity investments are included in Other income, net on the accompanying consolidated statements of
income. For further information, see Note 1R, "Summary of Significant Accounting Policies - Other Income, Net," to the consolidated
financial statements.
For further information on the Yankee Companies, see Note 7D, "Commitments and Contingencies - Deferred Contractual Obligations,"
to the consolidated financial statements.
The application of the equity method is considered the appropriate method to account for the Yankee Companies and the regional
transmission companies investments because NU has the ability to exercise significant influence over the investees' operating and
financial policies.