Eversource 2009 Annual Report Download - page 132

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NU, including CL&P, PSNH, and WMECO, records special deposits and counterparty deposits posted under master netting agreements
as an offset to a Derivative asset or liability if the related derivatives are recorded in a net position. As of December 31, 2009, CL&P
and Select Energy had $0.5 million and $2.1 million, respectively, of collateral posted under master netting agreements and netted
against the fair value of the derivatives. As of December 31, 2008, NU, including CL&P, PSNH and WMECO, had no special deposits
and no counterparty collateral posted under master netting agreements netted against the fair value of derivatives.
Special deposits paid by Select Energy to unaffiliated counterparties and brokerage firms not subject to master netting agreements
totaled $28.1 million and $26.3 million as of December 31, 2009 and 2008, respectively. These amounts are included in Prepayments
and other on the accompanying consolidated balance sheets. There were no counterparty deposits for Select Energy as of
December 31, 2009 and 2008.
NU, CL&P, PSNH and WMECO have established credit policies regarding counterparties to minimize overall credit risk. These policies
require an evaluation of potential counterparties, financial condition, collateral requirements and the use of standardized agreements
that allow for the netting of positive and negative exposures associated with a single counterparty. These evaluations result in
established credit limits prior to entering into a contract. As of December 31, 2009 and 2008, there were no counterparty deposits for
these companies.
CL&P, PSNH and WMECO had amounts on deposit related to subsidiaries used to facilitate the issuance of RRBs. In addition, CL&P,
PSNH and WMECO had other cash deposits held with unaffiliated parties as of December 31, 2009 and 2008. These amounts were as
follows:
As of December 31,
2009 2008
(Millions of Dollars) NU NU
Rate reduction bond deposits $ 40.2 $ 41.3
Other deposits 8.1 7.0
As of December 31,
2009 2008
(Millions of Dollars) CL&P PSNH WMECO CL&P PSNH WMECO
Rate reduction bond deposits $ 16.8 $ 19.7 $3.7 $18.0 $ 19.3 $ 4.0
Other deposits 5.0 2.2 - 5.2 0.9 -
These amounts are included in Deferred debits and other assets - other on the accompanying consolidated balance sheets.
Q. Other Taxes
Certain excise taxes levied by state or local governments are collected by CL&P and Yankee Gas from their respective customers.
These excise taxes are shown on a gross basis with collections in revenues and payments in expenses. Gross receipts taxes,
franchise taxes and other excise taxes were included in Operating revenues and Taxes other than income taxes on the accompanying
consolidated statements of income as follows:
For the Years Ended December 31,
(Millions of Dollars) 2009 2008 2007
NU $ 135.6 $ 126.6 $ 112.2
CL&P 119.0 107.2 95.0
Certain sales taxes are also collected by CL&P, WMECO, and Yankee Gas from their respective customers as agents for state and
local governments and are recorded on a net basis with no impact on the accompanying consolidated statements of income.
R. Other Income, Net
The pre-tax components of other income/(loss) items are as follows:
NU For the Years Ended December 31,
(Millions of Dollars) 2009 2008 2007
Other Income:
Investment income $ 10.1 $ 6.6 $ 22.3
Interest income 5.6 10.1 -
AFUDC - equity funds 9.4 29.0 17.4
Equity in earnings of regional nuclear generating and
transmission companies 1.8 1.6 4.0
Other 11.3 18.0 18.6
Total Other Income 38.2 65.3 62.3
Other Loss:
Investment losses - (14.6) (0.5)
Rental expense (0.4) (0.3) (0.2)
Total Other Loss (0.4) (14.9) (0.7)