Eversource 2009 Annual Report Download - page 56

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We review and update our fair value hierarchy classifications on a quarterly basis. As of December 31, 2009, we held $64.3 million of
investment securities in our supplemental benefit trust and $56.8 million of investment securities in our WMECO spent nuclear fuel trust.
The fair values of these investments were determined using quoted market prices or other observable inputs.
For further information on derivative contracts and marketable securities, see Note 1F, "Summary of Significant Accounting Policies -
Derivative Accounting," Note 3, "Derivative Instruments," and Note 9, "Marketable Securities," to the consolidated financial statements.
Other Matters
Accounting Standards Issued But Not Yet Adopted and Accounting Standards Recently Adopted: For information regarding new
accounting standards, see Note 1C, "Summary of Significant Accounting Policies - Accounting Standards Issued But Not Yet Adopted,"
and Note 1D, "Summary of Significant Accounting Policies - Accounting Standards Recently Adopted," to the consolidated financial
statements.
Contractual Obligations and Commercial Commitments:
Information regarding our contractual obligations and commercial commitments as of December 31, 2009 is summarized annually
through 2014 and thereafter as follows:
NU
(Millions of Dollars) 2010 2011 2012 2013 2014 Thereafter Totals
Long-term debt maturities (a) (b) $66.3 $4.3 $267.3 $305.0 $ 275.0 $ 3,332.8 $4,250.7
Estimated interest payments on existing debt (c) 223.5 223.2 222.8 215.6 204.0 2,065.0 3,154.1
Capital leases (d) 2.5 2.5 2.6 2.4 2.0 13.4 25.4
Operating leases (e) 16.5 8.0 7.3 7.0 5.1 22.7 66.6
Funding of pension obligations (e) 45.0 200.0 N/A N/A N/A N/A 245.0
Funding of other postretirement benefit obligations (e) 41.2 41.4 41.4 26.0 24.3 N/A 174.3
Estimated future annual regulated companies costs (f) 758.6 726.6 814.3 696.1 596.4 3,955.5 7,547.5
Estimated future annual NU Enterprises costs (f) 42.8 42.9 40.6 46.6 - - 172.9
Other purchase commitments (e) (h) 1,576.9 - - - - - 1,576.9
Totals (g) (i) $2,773.3 $1,248.9 $1,396.3 $1,298.7 $1,106.8 $ 9,389.4 $17,213.4
CL&P
(Millions of Dollars) 2010 2011 2012 2013 2014 Thereafter Totals
Long-term debt maturities (a) (b) $62.0 $- $ - $ - $ 150.0 $ 2,131.7 $ 2,343.7
Estimated interest payments on existing debt (c) 136.2 136.2 136.2 136.2 136.2 1,545.1 2,226.1
Capital leases (d) 1.9 1.9 2.0 2.0 1.8 13.2 22.8
Operating leases (e) 11.8 4.9 4.6 4.5 4.3 25.0 55.1
Funding of other postretirement benefit obligations (e) 16.9 16.9 16.8 9.3 8.7 N/A 68.6
Estimated future annual long-term contractual costs (f) 295.4 418.0 562.6 599.9 502.9 3,629.9 6,008.7
Other purchase commitments (e) (h) 729.2 - - - - - 729.2
Totals (g) (i) $1,253.4 $577.9 $722.2 $751.9 $ 803.9 $ 7,344.9 $ 11,454.2
(a) Included in our debt agreements are usual and customary positive, negative and financial covenants. Non-compliance with certain
covenants, for example timely payment of principal and interest, may constitute an event of default, which could cause an
acceleration of principal payments in the absence of receipt by us of a waiver or amendment. Such acceleration would change the
obligations outlined in the table of contractual obligations and commercial commitments.
(b) Long-term debt maturities exclude $300.6 million and $243.5 million for NU and CL&P, respectively, of fees and interest due for
spent nuclear fuel disposal costs, a positive $13.2 million for NU of net changes in fair value of hedged debt and a negative $5.4
million and $4.8 million for NU and CL&P, respectively, of net unamortized premium and discount as of December 31, 2009.
(c) Estimated interest payments on fixed-rate debt are calculated by multiplying the coupon rate on the debt by its scheduled notional
amount outstanding for the period of measurement. Estimated interest payments on floating-rate debt are calculated by multiplying
the average of the 2009 floating-rate resets on the debt by its scheduled notional amount outstanding for the period of
measurement. This same rate is then assumed for the remaining life of the debt. Interest payments on debt that have an interest
rate swap in place are estimated using the effective cost of debt resulting from the swap rather than the underlying interest cost on
the debt, subject to the fixed and floating methodologies.
(d) The capital lease obligations include imputed interest of $12.5 million and $11.8 million for NU and CL&P, respectively, as of
December 31, 2009.
(e) Amounts are not included on our consolidated balance sheets. Funding of pension obligations includes a $200 million potential
contribution for 2011 that is subject to change. This amount and contributions in future plan years will depend on many factors,
including the performance of existing plan assets, valuation of the plan's liabilities, and long-term discount rates.
(f) Other than the net mark-to-market changes on respective derivative contracts held by both the regulated companies and NU
Enterprises, these obligations are not included on our consolidated balance sheets. On February 7, 2010, an explosion occurred at
the construction site of Kleen Energy Systems, LLC’s 620 MW generation project with which CL&P has a Contract for Differences