Eversource 2009 Annual Report Download - page 59

50
RESULTS OF OPERATIONS - NU
The components of significant income statement variances, higher/(lower) in comparison to the previous year, are provided in the table
below.
Income Statement Variances 2009 versus 2008 2008 versus 2007
(Millions of Dollars) Amount Percent Amount Percent
Operating Revenues $ (361) (6) % $ (22) - %
Operating Expenses:
Fuel, purchased and net interchange power (367) (12) (354) (11)
Other operation (20) (2) 60 6
Maintenance (20) (8) 43 20
Depreciation 31 11 13 5
Amortization of regulatory assets, net (173) (93) 146 (a)
Amortization of rate reduction bonds 13 6 4 2
Taxes other than income taxes 15 5 15 6
Total operating expenses (521) (10) (73) (1)
Operating income 160 27 51 10
Interest expense, net 4 2 29 12
Other income, net (13) (25) (11) (18)
Income from continuing operations before
income tax expense 143 39 11 3
Income tax expense/(benefit) 74 70 (4) (3)
Income from continuing operations 69 26 15 6
Income from discontinued operations - - (1) (100)
Net income 69 26 14 6
Preferred dividends of subsidiary - - - -
Net income attributable to controlling interest $ 69 27 % $ 14 6 %
(a) Percent greater than 100 not shown since not meaningful.
Net income was $69 million higher for 2009 as compared to 2008 due primarily to the absence of a $29.8 million after-tax litigation
settlement charge in 2008 and higher transmission and distribution earnings. Net income was $14 million higher in 2008 as compared
to 2007 due primarily to the growth in the Company's transmission segment, partially offset by the $29.8 million after-tax litigation
settlement charge.
Comparison of 2009 to 2008
Operating Revenues
For the Twelve Months Ended December 31,
(Millions of Dollars) 2009 2008 Variance
Electric distribution $ 4,359 $ 4,716 $ (357)
Gas distribution 449 577 (128)
Total distribution 4,808 5,293 (485)
Transmission 578 425 153
Regulated companies 5,386 5,718 (332)
Competitive businesses 81 114 (33)
Other & Eliminations (28) (32) 4
NU $ 5,439 $ 5,800 $ (361)
Operating revenues decreased $361 million in 2009 due primarily to lower distribution revenues from the regulated companies ($485
million) as a result of the recovery of a lower level of electric and gas distribution fuel and other expenses passed through to customers
through regulatory tracking mechanisms.
Electric distribution revenues decreased $357 million due primarily to a decrease in the portion of electric distribution revenues that
does not impact earnings ($395 million), partially offset by an increase in the component of revenues that impacts earnings ($37
million). The portion of electric distribution segment revenues that impacts earnings increased $37 million due primarily to higher CL&P
and PSNH retail rates, partially offset by lower retail electric sales. Retail electric sales for the regulated companies decreased 3.5
percent. Gas distribution revenues decreased $128 million due primarily to decreased recovery of fuel costs primarily as a result of
lower prices, partially offset by higher sales volumes. Firm natural gas sales increased 6.9 percent in 2009 compared with 2008.
The $395 million decrease in electric distribution revenues that does not impact earnings consists of the portions of distribution
revenues that are included in regulatory commission approved tracking mechanisms that recover certain incurred costs ($356 million)
and revenues that are eliminated in consolidation of the regulated companies ($39 million). The distribution revenue tracking