Eversource 2009 Annual Report Download - page 160

FS-75
As of December 31, 2009
CL&P PSNH WMECO
(Millions of Dollars)
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Preferred stock not subject
to mandatory redemption $ 116.2 $ 86.8 $ - $ - $ - $ -
Long-term debt -
First mortgage bonds 1,919.8 1,960.6 430.0 425.4 - -
Other long-term debt 667.4 673.4 407.3 408.6 305.9 304.9
Rate reduction bonds 195.6 220.1 188.1 203.5 58.7 63.7
As of December 31, 2008
CL&P PSNH WMECO
(Millions of Dollars)
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Preferred stock not subject
to mandatory redemption $ 116.2 $ 86.3 $ - $ - $ - $ -
Long-term debt -
First mortgage bonds 1,669.8 1,737.2 280.0 286.3 - -
Other long-term debt 604.9 555.8 407.3 359.7 304.4 270.3
Rate reduction bonds 378.2 373.7 235.1 240.7 73.2 75.0
The NU other long-term debt includes $300.6 million and $298.6 million of fees and interest due for spent nuclear fuel disposal costs as
of December 31, 2009 and 2008, respectively. CL&P's portion of this obligation is $243.5 million and $243 million as of December 31,
2009 and 2008, respectively. WMECO's portion of this obligation is $57.1 million and $55.6 million as of December 31, 2009 and 2008,
respectively.
Derivative Instruments: NU, including CL&P and PSNH, holds various derivative instruments that are carried at fair value. For further
information, see Note 3, "Derivative Instruments," to the consolidated financial statements.
Other Financial Instruments: Investments in marketable securities are carried at fair value on the accompanying consolidated balance
sheets. For further information, see Note 1G, "Summary of Significant Accounting Policies - Fair Value Measurements," Note 4, "Fair
Value Measurements," and Note 9, "Marketable Securities," to the consolidated financial statements.
NU parent holds a long-term government receivable related to SESI. The carrying value of the receivable was $8.8 million as of
December 31, 2009 and is included in Deferred debits and other assets - other on the accompanying consolidated balance sheet. The
fair value of this receivable was $10.6 million as of December 31, 2009 and was determined based on discounted cash flows using a
seven-year Treasury rate to match the weighted average life of the anticipated cash flow stream.
The carrying value of other financial instruments included in current assets and current liabilities, including cash and cash equivalents
and special deposits, approximates their fair value due to the short-term nature of these instruments.
9. Marketable Securities (NU, WMECO)
The Company elected to record exchange traded mutual funds purchased during 2009 in the NU supplemental benefit trust at fair value
in order to reflect the economic effect of changes in fair value of all newly purchased equity securities in Net income. These equity
securities, classified as Level 1 in the fair value hierarchy, totaled $35.3 million as of December 31, 2009. Gains on these securities of
$6.6 million for the year ended December 31, 2009 were recorded in Other income, net on the accompanying consolidated statement of
income. Dividend income is recorded when dividends are declared and are recorded in Other income, net on the accompanying
consolidated statements of income. All other marketable securities are accounted for as available-for-sale.