Eversource 2009 Annual Report Download - page 167

FS-82
For information regarding fees and interest due for spent nuclear fuel disposal costs, see Note 7B, "Commitments and Contingencies -
Spent Nuclear Fuel Disposal Costs," to the consolidated financial statements.
The change in fair value totaling a positive $13.2 million and $20.8 million as of December 31, 2009 and 2008, respectively, on the
accompanying consolidated statements of capitalization reflects the NU parent 7.25 percent amortizing note, due 2012 in the amount of
$263 million, that is hedged with a fixed to floating interest rate swap. The change in fair value of the interest component of the debt
was recorded as an adjustment to Long-term debt with an equal and offsetting adjustment to Derivative assets and liabilities for the
change in fair value of the fixed to floating interest rate swap.
12. CL&P Preferred Stock Not Subject to Mandatory Redemption (CL&P)
CL&P's charter authorizes it to issue up to 9 million shares of preferred stock ($50 par value per share) of which 2,324,000 shares were
outstanding as of December 31, 2009 and 2008. In addition, CL&P's charter authorizes it to issue up to 8 million shares of Class A
preferred stock ($25 par value per share). There were no Class A preferred shares outstanding as of December 31, 2009 and 2008.
The issuance of additional preferred shares would be subject to approval by the DPUC.
Preferred stockholders have liquidation rights equal to the par value for each class, which they would receive in preference to any
distributions to any junior stock. Were there to be a shortfall, all preferred stockholders would share ratably in available liquidation
assets. Details of preferred stock not subject to mandatory redemption are as follows (in millions except in redemption price and
shares):
December 31,
Description
December 31, 2009
Redemption Price
Shares Outstanding as of
December 31, 2009 and 2008 2009 2008
$1.90 Series of 1947 $52.50 163,912 $ 8.2 $ 8.2
$2.00 Series of 1947 $54.00 336,088 16.8 16.8
$2.04 Series of 1949 $52.00 100,000 5.0 5.0
$2.20 Series of 1949 $52.50 200,000 10.0 10.0
3.90% Series of 1949 $50.50 160,000 8.0 8.0
$2.06 Series E of 1954 $51.00 200,000 10.0 10.0
$2.09 Series F of 1955 $51.00 100,000 5.0 5.0
4.50% Series of 1956 $50.75 104,000 5.2 5.2
4.96% Series of 1958 $50.50 100,000 5.0 5.0
4.50% Series of 1963 $50.50 160,000 8.0 8.0
5.28% Series of 1967 $51.43 200,000 10.0 10.0
$3.24 Series G of 1968 $51.84 300,000 15.0 15.0
6.56% Series of 1968 $51.44 200,000 10.0 10.0
Totals 2,324,000 $ 116.2 $ 116.2
Dividends of $5.6 million were paid to the preferred stockholders in both 2009 and 2008.
13. Dividend Restrictions (NU, CL&P, PSNH, WMECO, Yankee Gas)
NU parent's ability to pay dividends may be affected by certain state statutes, the ability of its subsidiaries to pay common dividends and
the leverage restriction tied to its consolidated total debt to total capitalization ratio requirement in its revolving credit agreement.
CL&P, PSNH, and WMECO are subject to Section 305 of the Federal Power Act that makes it unlawful for a public utility to make or pay
a dividend from any funds "properly included in its capital account." Management believes that this Federal Power Act restriction, as
applied to CL&P, PSNH and WMECO, would not be construed or applied by the FERC to prohibit the payment of dividends for lawful
and legitimate business purposes from retained earnings. In addition, certain state statutes may impose additional limitations on such
companies and on Yankee Gas. Such state law restrictions do not restrict payment of dividends from retained earnings or net income.
CL&P, PSNH, WMECO and Yankee Gas also have a revolving credit agreement that imposes leverage restrictions including
consolidated total debt to total capitalization ratio requirements. The Retained earnings balances subject to these leverage restrictions
are $1.247 billion for NU, $714.2 million for CL&P, $308 million for PSNH and $90.5 million for WMECO as of December 31, 2009.
PSNH is further required to reserve an additional amount under its FERC hydroelectric license conditions. As of December 31, 2009,
approximately $11.4 million of PSNH's Retained earnings is subject to restriction under its FERC hydroelectric license conditions. As of
December 31, 2009, NU, CL&P, PSNH, WMECO and Yankee Gas were in compliance with all such provisions of its credit agreement
that may restrict the payment of dividends.