Eversource 2009 Annual Report Download - page 166

FS-81
WMECO As of December 31,
(Millions of Dollars) 2009 2008
Pollution Control Notes:
Tax Exempt 1993 Series A, 5.85% due 2028 $ 53.8 $ 53.8
Other:
Taxable Senior Series A, 5.00% due 2013 55.0 55.0
Taxable Senior Series B, 5.90% due 2034 50.0 50.0
Taxable Senior Series C, 5.24% due 2015 50.0 50.0
Taxable Senior Series D, 6.70% due 2037 40.0 40.0
Total Pollution Control Notes and Other 248.8 248.8
Fees and interest due for spent nuclear fuel
disposal costs 57.1 55.6
Total pollution control notes and fees and interest
for spent nuclear fuel disposal costs 305.9 304.4
Unamortized premiums and discounts, net (0.4) (0.5)
Long-term debt $ 305.5 $ 303.9
Included in the NU amounts above are $263 million of NU parent Senior Series A notes maturing in 2012 with a coupon rate of 7.25
percent and $250 million of NU parent Senior Series C notes maturing in 2013 with a coupon rate of 5.65 percent.
There are no cash sinking fund requirements or debt maturities for the years 2010 through 2013 for CL&P and PSNH; however, CL&P
has $62 million of PCRBs subject to mandatory tender for purchase in 2010. There is a $263 million maturity in 2012 related to the NU
parent Senior Series A notes. There are $55 million and $250 million of maturities in 2013 related to the WMECO Senior Series A
Notes and the NU parent Senior Series C Notes, respectively. There are $150 million and $50 million of maturities in 2014 related to
the CL&P 2004 Series A first mortgage bonds and the PSNH 2004 Series L first mortgage bonds, respectively. CL&P, PSNH and
WMECO have $2.1 billion, $787.3 million and $193.8 million, respectively, of long-term debt maturities in the period from 2015 through
2037.
There are annual renewal and replacement fund requirements equal to 2.25 percent of the average of net depreciable utility property
owned by PSNH in 1992, plus cumulative gross property additions thereafter. PSNH expects to meet these future fund requirements by
certifying property additions. Any deficiency would need to be satisfied by the deposit of cash or bonds.
Essentially all utility plant of CL&P, PSNH and Yankee Gas is subject to the liens of each company's respective first mortgage bond
indenture.
The CL&P, PSNH and WMECO tax-exempt bonds contain call provisions providing call prices ranging between 100 percent and 102
percent of par. All other securities are subject to make-whole provisions.
CL&P has $423.9 million of tax-exempt PCRBs, $315.5 million of which is secured by second mortgage liens on transmission assets,
junior to the liens of its first mortgage bond indenture, and the remaining $108.4 million of which is secured by its first mortgage bonds.
As of December 31, 2009 PSNH had $407.3 million in outstanding PCRBs. PSNH's obligation to repay each series of PCRBs is
secured by first mortgage bonds and three series, the 2001 Series A, B and C, also carry bond insurance. Each such series of first
mortgage bonds contains similar terms and provisions as the applicable series of PCRBs. For financial reporting purposes, these first
mortgage bonds would not be considered outstanding unless PSNH failed to meet its obligations under the PCRBs. The 2001 Series B
PCRBs, in the aggregate principal amount of $89.3 million, bears interest at a rate that is periodically set pursuant to auctions. Since
March 2008, a significant majority of this series of PCRBs has been held by remarketing agents as a result of failed auctions due to
general market concerns. The interest rate on these PCRBs has been reset by formula under the applicable documents every 35 days.
The formula is based on a combination of the ratings on the PCRBs and an index rate. The interest rate has been between 0.16
percent and 4.03 percent since March 2008 and was 0.24 percent as of December 31, 2009. The Company is not obligated to
purchase these PCRBs, which mature in 2021, from the remarketing agents. The weighted average effective interest rate on PSNH's
Series A variable-rate PCRBs was 0.25 percent for 2009 and 3.07 percent for 2008.
NU's, including CL&P, PSNH and WMECO, long-term debt agreements provide that certain of its subsidiaries must comply with certain
financial and non-financial covenants as are customarily included in such agreements, including a consolidated debt to total
capitalization ratio. These subsidiaries are in compliance with these covenants as of December 31, 2009.
Yankee Gas has certain long-term debt agreements that contain cross-default provisions that would be triggered if Yankee Gas or any
subsidiary were to default in a payment due on indebtedness in excess of a predetermined amount. These cross-default provisions
apply to Yankee Gas' Series B and Series E and Series G through J debt issuances. PSNH would also be in default under its long-term
debt agreements if it defaulted on any prior lien obligation exceeding $25 million. PSNH has no prior lien obligations as of December
31, 2009. There are no other debt issuances for CL&P, WMECO or NU parent with cross-default provisions as of December 31, 2009.
Long-term debt - First Mortgage Bonds on the accompanying consolidated statements of capitalization as of December 31, 2009
reflects the issuance in 2009 of bonds in the amount of $250 million and $150 million at CL&P and PSNH, respectively, and the
retirement of $50 million at Yankee Gas.