Eversource 2009 Annual Report Download - page 45

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standards. We believe that a collaborative approach among project developers and transmission owners is necessary to be able to
construct needed projects and bring their electrical output into the market. To date, most discussions have been conceptual in nature
and therefore we have not yet included any capital expenditures associated with potential projects in our five-year capital program.
On December 1, 2009, CL&P filed with the DPUC the results of a three-month dynamic pricing smart meter pilot program that involved
nearly 3,000 customers (1,500 residential and 1,500 commercial and industrial (C&I) customers). CL&P plans to file a smart metering
and dynamic pricing plan with the DPUC by March 31, 2010. The total cost of the pilot program was approximately $13 million and is
being recovered through CL&P FMCC rates.
On October 16, 2009, WMECO filed its proposal for a dynamic pricing smart meter pilot program with the DPU. The program proposes
to involve 1,750 customers in WMECO's service region for a term of six months beginning in April 2011. The total cost of the project is
estimated to be $7 million, which would be recovered through rates WMECO would charge to customers. A decision is expected from
the DPU in the first half of 2010.
On August 12, 2009, the DPU approved a stipulation agreement between WMECO and the AG concerning WMECO's proposal, under
the Massachusetts Green Communities Act (GCA), to install 6 MW of solar energy generation in its service territory at an estimated cost
of $41 million. Under the agreement, no more than 3 MW will be commissioned in any one year between 2010 and 2012, the ROE on
these assets will be a fully tracking 9 percent, and the benefits of renewable energy and tax credits will be used to reduce the impact on
customer bills. WMECO will need to file an additional application with the DPU if it seeks to develop more than the initial 6 MW under
the GCA, which allows for electric utility ownership of up to 50 MW of solar energy generating facilities.
The estimated capital expenditures discussed below include expenditures for the WMECO solar program.
Projected Capital Expenditures and Rate Base Estimates: A summary of the projected capital expenditures for the regulated
companies' transmission and the distribution and generation businesses, by company, for 2010 through 2014, including our corporate
service companies' capital expenditures on behalf of the regulated companies, is as follows:
Year
(Millions of Dollars) 2010 2011 2012 2013 2014
2010-2014
Totals
CL&P transmission $ 136 $ 203 $ 281 $ 286 $ 155 $ 1,061
PSNH transmission 55 118 107 74 22 376
WMECO transmission 66 256 328 156 6 812
HQ tie line project 16 49 90 236 282 673
Subtotal transmission $ 273 $ 626 $ 806 $ 752 $ 465 $ 2,922
CL&P distribution 305 313 306 305 317 1,546
PSNH distribution 113 111 115 121 134 594
WMECO distribution 33 39 36 35 36 179
Subtotal electric distribution $ 451 $ 463 $ 457 $ 461 $ 487 $ 2,319
PSNH generation 187 117 82 68 26 480
WMECO generation 20 14 7 - - 41
Subtotal generation $ 207 $ 131 $ 89 $ 68 $ 26 $ 521
Yankee Gas distribution 112 104 80 82 83 461
Corporate service companies 48 25 22 25 14 134
Totals $ 1,091 $ 1,349 $ 1,454 $ 1,388 $ 1,075 $ 6,357
Actual capital expenditures could vary from the projected amounts for the companies and periods above. The continuation of weak
economic conditions in the Northeast could impact the timing of our major transmission projects. Most of these capital investment
projections, including those for the HQ tie line project, assume timely regulatory approval, which in some cases requires extensive
review. Delays in or denials of those approvals could reduce the levels of expenditures, associated rate base, and anticipated EPS
growth.