Eversource 2009 Annual Report Download - page 37

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 After rate reduction bond (RRB) payments included in financing activities, we had cash flows provided by operating activities in
2009 of $745 million, which represented an increase of approximately $321 million from 2008. The improved cash flows were due
primarily to higher transmission revenues at CL&P; approximately $225 million more in cash collected in 2009 compared to 2008
for costs that are tracked and passed on to customers; approximately $100 million less in cash expenditures on fuel, materials and
supplies in 2009 (largely due to lower amounts spent for Yankee Gas storage due to lower natural gas prices); and the absence in
2009 of the litigation settlement payment of $49.5 million made in March 2008.
 We project consolidated cash flows provided by operating activities, net of RRB payments, of approximately $4 billion from 2010
through 2014, ranging from approximately $700 million in 2010 to approximately $1.1 billion in 2014. This projection reflects a cash
contribution of approximately $45 million into the Company’s pension plan in the third quarter of 2010, as well as a potential
contribution in 2011 of approximately $200 million.
 Our cash and cash equivalents totaled $27 million as of December 31, 2009, compared with $89.8 million as of December 31,
2008. As of December 31, 2009, we also had $702.8 million of aggregate borrowing availability on our revolving credit lines, as
compared to $157.8 million of availability as of December 31, 2008. This increase in availability was primarily a result of the 2009
equity and debt issuances, higher cash flows provided by operating activities and lower capital expenditures. Our credit facilities in
a total nominal amount of $900 million will expire on November 6, 2010. While we expect to renew these facilities before the
expiration date, costs associated with the new facilities will likely be higher than those associated with the existing credit facilities
due to changes in credit market conditions.
Overview
Consolidated: We earned $330 million, or $1.91 per share, in 2009, compared with $260.8 million, or $1.67 per share, in 2008 and
$246.5 million, or $1.59 per share, in 2007. Excluding the after-tax charge of $29.8 million, or $0.19 per share, for the settlement of
litigation, we earned $290.6 million, or $1.86 per share, in 2008. The increase in 2009 results was due primarily to a $34.4 million
increase in earnings from our regulated distribution and transmission segments, which includes their shares of the resolution of several
routine income tax audits that increased NU earnings in 2009 and 2008 by $13.8 million and $8.9 million, respectively. The EPS for
2009 reflected the issuance of approximately 19 million common shares on March 20, 2009. A summary of our earnings by business,
which also reconciles the non-GAAP financial measures of consolidated non-GAAP earnings and EPS, as well as EPS by business, to
the most directly comparable GAAP measures of consolidated net income attributable to controlling interest and fully diluted EPS, for
2009, 2008 and 2007 is as follows:
For the Years Ended December 31,
2009 2008 2007
(Millions of Dollars, except
per share amounts) Amount Per Share Amount Per Share Amount Per Share
Net income attributable to
controlling interest (GAAP) $ 330.0 $ 1.91 $ 260.8 $ 1.67 $ 246.5 $ 1.59
Regulated companies $ 323.5 $ 1.87 $ 289.1 $ 1.85 $ 228.7 $ 1.47
Competitive businesses 15.8 0.09 13.1 0.08 11.7 0.08
NU parent and other companies (9.3) (0.05) (11.6) (0.07) 6.1 0.04
Non-GAAP earnings 330.0 1.91 290.6 1.86 246.5 1.59
Litigation charge (after-tax) - - (29.8) (0.19) - -
Net income attributable to
controlling interest (GAAP) $ 330.0 $ 1.91 $ 260.8 $ 1.67 $ 246.5 $ 1.59
Regulated Companies: Our regulated companies operate in two segments: electric transmission and electric and gas distribution, with
PSNH generation included in its distribution segment. A summary of regulated company earnings by segment for 2009, 2008 and 2007
is as follows:
For the Years Ended December 31,
(Millions of Dollars) 2009 2008 2007
CL&P Transmission $ 136.8 $ 115.6 $ 66.7
PSNH Transmission 18.0 16.7 10.7
WMECO Transmission 9.5 6.0 5.1
Total Transmission $ 164.3 $ 138.3 $ 82.5
CL&P Distribution $ 74.0 $ 70.0 $ 61.4
PSNH Distribution 47.5 41.4 43.7
WMECO Distribution 16.7 12.3 18.5
Yankee Gas 21.0 27.1 22.6
Total Distribution $ 159.2 $ 150.8 $ 146.2
Net Income - Regulated Companies $ 323.5 $ 289.1 $ 228.7
The higher 2009 and 2008 transmission segment earnings reflect an increased investment in this segment as we continued to build out
our transmission infrastructure to meet our customers' and the region's reliability needs. The results primarily reflect the effect of
CL&P's investment of approximately $1.6 billion since the beginning of 2005 in the southwest Connecticut transmission projects that