Eversource 2009 Annual Report Download - page 21

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During 2009, the NU companies issued an aggregate of $462 million of debt, as follows:
 CL&P issued $250 million of first mortgage bonds on February 13, 2009 with an interest rate of 5.5 percent and maturity date
of February 1, 2019.
 CL&P remarketed $62 million of Pollution Control Revenue Bonds on April 2, 2009 which it had repurchased and had been
holding since 2008. The bonds carry a coupon of 5.25 percent and are subject to a mandatory tender for purchase on April 1,
2010, at which time they will be remarketed.
 PSNH issued $150 million of first mortgage bonds on December 14, 2009 with an interest rate of 4.5 percent and a maturity
date of December 1, 2019.
As a result of Lehman Brothers Commercial Bank, Inc. (LBCB) refusing to continue to fund its commitment of approximately $56 million
under our credit facilities in 2008 described below, our aggregate borrowing capacity under our credit facilities was reduced from $900
million to $844 million. This borrowing capacity, when combined with our access to other funding sources, provides us with adequate
liquidity.
NU parent has a credit facility in a nominal aggregate amount of $500 million, $482.3 million excluding the commitment of LBCB, which
expires on November 6, 2010. As of December 31, 2009, NU parent had $41 million of letters of credit (LOCs) issued for the benefit of
certain subsidiaries (primarily PSNH) and $100.3 million of borrowings outstanding under this facility. The weighted-average interest
rate on these short-term borrowings as of December 31, 2009 was 0.63 percent, which is based on a variable rate plus an applicable
margin based on NU parent's credit ratings.
The regulated companies maintain a joint credit facility in a nominal aggregate amount of $400 million, $361.8 million excluding the
commitment of LBCB, which also expires on November 6, 2010. There were no borrowings outstanding under this facility as of
December 31, 2009.
Our credit facilities and bond indentures require that NU parent and certain of its subsidiaries, including CL&P, PSNH and WMECO,
comply with certain financial and non-financial covenants as are customarily included in such agreements, including maintaining a ratio
of consolidated debt to total capitalization of no more than 65 percent. All such companies currently are, and expect to remain in
compliance with these covenants.
While we expect to renew our credit facilities in November, 2010, costs associated with the new facilities are likely to be higher than
those associated with the existing credit facilities due to market conditions.
We are planning long-term debt issuances in 2010 aggregating approximately $145 million with $95 million being issued by WMECO
and $50 million being issued by Yankee Gas. The proceeds from these financings will be used primarily to repay short-term borrowings
and fund our capital programs. On January 22, 2010, the DPUC approved WMECO’s application to issue and sell up to $150 million of
senior secured or unsecured long-term debt.
For more information regarding NU and its subsidiaries' financing, see Note 2, "Short-Term Debt," and Note 11, "Long-Term Debt," to
the Consolidated Financial Statements and "Liquidity" under Item 7, Management's Discussion and Analysis of Financial Condition and
Results of Operations in this Annual Report on Form 10-K.
NUCLEAR DECOMMISSIONING
General
CL&P, PSNH, WMECO and other New England electric utilities are stockholders in three inactive regional nuclear generation
companies, Connecticut Yankee Atomic Power Company (CYAPC), Maine Yankee Atomic Power Company (MYAPC) and Yankee
Atomic Electric Company (YAEC) (the Yankee Companies). The Yankee Companies have completed the physical decommissioning of
their respective generation facilities and are now engaged in the long-term storage of their spent nuclear fuel. Each Yankee Company
collects decommissioning and closure costs through wholesale FERC-approved rates charged under power purchase agreements with
CL&P, PSNH and WMECO and several other New England utilities. These companies in turn recover these costs from their customers
through state regulatory commission-approved retail rates. The ownership percentages of CL&P, PSNH and WMECO in the Yankee
Companies are set forth below:
CL&P PSNH WMECO Total
CYAPC 34.5% 5.0% 9.5% 49.0%
MYAPC 12.0% 5.0% 3.0% 20.0%
YAEC 24.5% 7.0% 7.0% 38.5%
Our share of the obligations to support the Yankee Companies under FERC-approved contracts is the same as the ownership
percentages above.
For more information regarding decommissioning and nuclear assets, see "Deferred Contractual Obligations" under Item 7,
Management's Discussion and Analysis of Financial Condition and Results of Operations, in this Annual Report on Form 10-K.