Eversource 2009 Annual Report Download - page 134

FS-49
S. Supplemental Cash Flow Information (NU, CL&P, PSNH, WMECO)
For the Years Ended December 31,
2009 2008 2007
(Millions of Dollars) NU NU NU
Cash paid/(received) during the year for:
Interest, net of amounts capitalized $ 263.8 $261.4 $ 261.6
Income taxes 35.1 (36.1) 496.2
Non-cash investing activities:
Capital expenditures incurred but not paid 125.5 132.8 184.4
For the Years Ended December 31,
2009 2008 2007
CL&P PSNH WMECO CL&P PSNH WMECO CL&P PSNH WMECO
(Millions of Dollars)
Cash paid/(received) during the year for:
Interest, net of amounts capitalized $ 146.7 $ 49.0 $ 19.4 $ 145.5 $ 50.0 $ 20.0 $ 156.4 $ 50.2 $ 20.3
Income taxes 42.4 12.8 (9.1) (20.6) 1.0 (5.9) 241.2 26.2 65.6
Non-cash investing activities:
Capital expenditures incurred but not paid 48.2 46.5 10.3 76.1 31.4 11.5 126.1 37.8 6.6
Cash paid/(received) during the year for income taxes decreased from 2007 to 2008 as a result of the absence in 2008 of a payment of
approximately $400 million in federal and state income taxes in 2007 related to the 2006 sale of the competitive generation business.
Regulatory overrecoveries/(refunds and underrecoveries) on the accompanying consolidated statements of cash flows represents the
year-over-year change in regulatory assets and regulatory liabilities, net of amortization charged during the year and other adjustments
for non-cash items. These deferred amounts are expected to be recovered from or refunded to customers through the rate-making
process and are generally short-term in nature.
The majority of the short-term borrowings of the companies have original maturities of three months or less. Accordingly, borrowings
and repayments are shown net on the statement of cash flows. In December 2008, NU borrowed $127 million from the NU parent
revolving credit agreement that had original maturities in excess of 90 days. These amounts were repaid in March 2009. This activity is
included in the net activity seen in the statement of cash flows. In 2009, 2008 and 2007, NU, CL&P, PSNH and WMECO had no other
such borrowings.
T. Operating Expenses
Fuel, purchased and net interchange power: For the years ended December 31, 2009, 2008, and 2007, fuel, purchased and net
interchange power included costs related to fuel (and gas costs as it related to Yankee Gas) as follows:
For the Years Ended December 31,
(Millions of Dollars) 2009 2008 2007
CL&P $ 0.5 $4.1 $ 14.2
PSNH 174.1 177.4 190.2
WMECO 0.8 0.8 0.8
Yankee Gas 226.1 358.8 317.7
Other 0.2 0.6 1.2
NU $ 401.7 $541.7 $ 524.1
U. Marketable Securities
NU supplemental benefit trust and WMECO spent nuclear fuel trust: NU maintains a supplemental benefit trust and WMECO maintains
a spent nuclear fuel trust, both of which hold marketable securities. The trusts are used to fund NU's SERP/non-SERP obligations and
WMECO's prior period spent nuclear fuel liability. NU and WMECO's debt securities are classified as available-for-sale.
Beginning in the second quarter of 2009, other-than-temporary impairments on debt securities held in the NU supplemental benefit trust
that NU intends to sell or will be required to sell are recorded in Net income. Credit losses identified on debt securities held in the NU
supplemental benefit trust are also recorded in Net income. Unrealized gains and unrealized losses on debt securities that NU does not
intend to sell, will not be required to sell and do not reflect credit losses held in the NU supplemental benefit trust are recorded in
Accumulated other comprehensive income/(loss). Realized gains and losses on debt securities WMECO intends to sell or will be
required to sell, credit losses and unrealized gains and losses associated with the WMECO spent nuclear fuel trust are recorded as an
offset to the spent nuclear fuel trust obligation. See Note 1D, "Summary of Significant Accounting Policies – Accounting Standards
Recently Adopted," to the consolidated financial statements.
Prior to the adoption of the new accounting guidance, changes in the fair value of debt securities in the NU supplemental benefit trust
and the WMECO spent nuclear fuel trust relating to unrealized losses were considered other-than-temporary because NU and WMECO
did not have the ability to hold the debt securities to maturity. Losses on the NU supplemental benefit trust were recorded in Net income
and losses on the WMECO spent nuclear fuel trust were recorded to the WMECO spent nuclear fuel obligation. Prior to the new
accounting guidance, changes related to unrealized gains for debt and equity securities were recorded in Accumulated other
comprehensive income/(loss).