Eversource 2009 Annual Report Download - page 36

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2010. There are uncertainties over the outcomes of these distribution rate cases, both of which are expected to conclude in mid-
2010. WMECO intends to file a distribution rate case in mid-2010 with an expected decision by the end of 2010 and a distribution
rate case filing for Yankee Gas is also under consideration, neither of which are included in the 2010 projections.
 We paid common dividends of $162.4 million in 2009, compared with $129.1 million in 2008. The increase is the result of 6.3
percent and 11.8 percent increases that took effect in the third quarter of 2008 and the first quarter of 2009, respectively, and a
higher number of shares outstanding in the second, third and fourth quarters of 2009.
 We project that we will achieve a compound average annual EPS growth rate for the five-year period from 2010 to 2014 of between
6 percent and 9 percent, using 2009 EPS of $1.91 as the base level.
 Regulated company capital expenditures are expected to total approximately $6.4 billion from 2010 through 2014, which would
enable our total rate base to grow at a compound average annual growth rate of 9.5 percent from approximately $7 billion at the
end of 2009 to $11.1 billion at the end of 2014. This projection assumes the projects we have included in our five-year plan are
built according to our schedule and on budget. Significant projects included in the plan are the CL&P and WMECO New England
East-West Solutions (NEEWS) project, the PSNH Clean Air Project, the Hydro-Québec (HQ) tie line project, and the Yankee Gas
Waterbury to Wallingford Pipeline Project.
Legal, Regulatory and Other Items:
 On May 22, 2009, the Federal Energy Regulatory Commission (FERC) granted approval of the structure of a proposed project
between NU, NSTAR, a Massachusetts utility company that serves the greater Boston area, and HQ, a large Canadian utility,
involving a high voltage direct current (HVDC) transmission line from New Hampshire to Canada (HQ tie line project) to deliver and
sell 1,200 megawatts (MW) of low-carbon energy in New England.
 On June 30, 2009, PSNH filed an application with the New Hampshire Public Utilities Commission (NHPUC) requesting a
permanent increase in distribution rates of approximately $51 million on an annualized basis to be effective August 1, 2009, and
another $17 million to be effective July 1, 2010. On July 31, 2009, the NHPUC approved a temporary increase in distribution rates
of $25.6 million on an annualized basis, effective August 1, 2009. PSNH expects a decision on the permanent distribution rate
request in mid-2010. Any differences between allowed temporary rates and permanent rates will be reconciled back to August 1,
2009.
 On August 12, 2009, the Massachusetts Department of Public Utilities (DPU) approved the installation of 6 MW of solar energy
generation in WMECO's service territory at an estimated cost of $41 million. The return on equity (ROE) on these assets will be a
fully tracking 9 percent.
 On January 8, 2010, CL&P filed an application with the Connecticut Department of Public Utility Control (DPUC) to raise distribution
rates by $133.4 million to be effective July 1, 2010, and by an additional $44.2 million to be effective July 1, 2011. CL&P proposed
that the first year’s increase would be deferred until January 1, 2011 and that approximately $67 million of cash revenue
requirement for the second half of 2010 would be deferred and recovered from CL&P customers between January 1, 2011 and
June 30, 2012. A DPUC decision on this rate application is expected in mid-2010.
Liquidity:
 NU completed a public offering of approximately 19 million common shares on March 20, 2009, resulting in $370.8 million of net
proceeds to the Company after offering expenses of $12.5 million. The proceeds were used to fund capital investment programs
for our regulated companies and to repay short-term borrowings. We anticipate a single public offering of approximately $300
million in NU common shares in the next five years, which is expected no earlier than 2012.
 We issued $462 million of debt in 2009 ($312 million at CL&P and $150 million at PSNH), comprised of $400 million in first
mortgage bonds at rates of 4.5 percent and 5.5 percent, and $62 million in remarketed pollution control revenue bonds (PCRBs) at
a one-year fixed rate of 5.25 percent. We expect to issue an aggregate amount of approximately $145 million of long-term debt in
the first half of 2010 ($95 million at WMECO and $50 million at Yankee Gas).
 We had total outstanding long-term and short-term debt of approximately $4.7 billion as of December 31, 2009, compared with
approximately $4.8 billion as of December 31, 2008. The decline reflects a reduction of approximately $520 million in notes
payable to banks, partially offset by approximately $400 million in increases to long-term debt. The decline in total debt was due
primarily to increased cash flows from operations and the sale by NU of approximately 19 million common shares.
 Our cash capital expenditures totaled $908.1 million in 2009, compared with $1.3 billion in 2008. The decrease in our cash capital
expenditures was primarily the result of lower transmission segment capital expenditures, particularly at CL&P, due to the
completion in 2008 of three major transmission projects in southwest Connecticut. We project total capital expenditures of
approximately $1.1 billion in 2010 (including non-cash factors) due to higher expenditures for NEEWS and other regulated
company projects.