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89
September 20, 2013. The remaining net proceeds were used to repay commercial paper program borrowings and for working
capital purposes.
(8) Amount relates to the purchase price adjustment required to record the NSTAR long-term debt at fair value on the date of the
merger.
Long-term debt maturities, mandatory tender payments and cash sinking fund requirements on debt outstanding for the years 2014
through 2018 and thereafter are shown below. These amounts exclude fees and interest due for spent nuclear fuel disposal costs, net
unamortized premiums and discounts, and other fair value adjustments as of December 31, 2013:
(Millions of Dollars)
NU
CL&P
NSTAR Electric
PSNH
WMECO
2014
$
576.7
$
150.0
$
301.7
$
50.0
$
-
2015
216.7
162.0
4.7
-
50.0
2016
200.0
-
200.0
-
-
2017
745.0
250.0
400.0
70.0
-
2018
810.0
300.0
-
110.0
-
Thereafter
5,031.6
1,640.3
900.0
821.3
515.0
Total
$
7,580.0
$
2,502.3
$
1,806.4
$
1,051.3
$
565.0
The utility plant of CL&P, PSNH, Yankee Gas and NSTAR Gas is subject to the lien of each company's respective first mortgage bond
indenture. The NSTAR Electric, WMECO and NU parent debt is unsecured.
CL&P’s obligation to repay each series of PCRBs is secured by first mortgage bonds. Each such series of first mortgage bonds
contains similar terms and provisions as the applicable series of PCRBs. If CL&P fails to meet its obligations under the first mortgage
bonds, then the holder of the first mortgage bonds (the issuer of the PCRBs) would have rights under the first mortgage bonds. CL&P’s
$62 million tax-exempt PCRBs, which is subject to mandatory tender for purchase on April 1, 2015, cannot be redeemed prior to its
tender date. CL&P’s $120.5 million tax-exempt PCRBs will be subject to redemption at par on or after September 1, 2021. All other
long-term debt securities are subject to make-whole provisions.
PSNH's obligation to repay the PCRBs is secured by first mortgage bonds and bond insurance. The first mortgage bonds contain
similar terms and provisions as the PCRBs. If PSNH fails to meet its obligations under the first mortgage bonds, then the holder of the
first mortgage bonds (the issuer of the PCRBs) would have rights under the first mortgage bonds. The PSNH Series A tax-exempt
PCRBs are currently callable at 100 percent of par. The PCRBs bear interest at a rate that is periodically set pursuant to auctions.
PSNH is not obligated to purchase these PCRBs, which mature in 2021, from the remarketing agent. The interest rate as of
December 31, 2013 was 0.088 percent.
The long-term debt agreements provide that NU and certain of its subsidiaries must comply with certain covenants as are customarily
included in such agreements, including a minimum equity requirement for NSTAR Gas. Under the minimum equity requirement, the
outstanding long-term debt of NSTAR Gas must not exceed equity.
Yankee Gas has certain long-term debt agreements that contain cross-default provisions applicable to all of Yankee Gas’ outstanding
first mortgage bond series. The cross-default provisions on Yankee Gas’ Series B Bonds would be triggered if Yankee Gas were to
default on a payment due on indebtedness in excess of $2 million. The cross-default provisions on all other series of Yankee Gas’ first
mortgage bonds would be triggered if Yankee Gas were to default in a payment due on indebtedness in excess of $10 million. No other
debt issuances contain cross-default provisions as of December 31, 2013.
Spent Nuclear Fuel Obligation: Under the Nuclear Waste Policy Act of 1982, CL&P and WMECO must pay the DOE for the costs of
disposal of spent nuclear fuel and high-level radioactive waste for the period prior to the sale of their ownership shares in the Millstone
nuclear power stations.
The DOE is responsible for the selection and development of repositories for, and the disposal of, spent nuclear fuel and high-level
radioactive waste. For nuclear fuel used to generate electricity prior to April 7, 1983 (Prior Period Spent Nuclear Fuel) for CL&P and
WMECO, an accrual has been recorded for the full liability, and payment must be made by CL&P and WMECO to the DOE prior to the
first delivery of spent fuel to the DOE. After the sale of Millstone, CL&P and WMECO remained responsible for their share of the
disposal costs associated with the Prior Period Spent Nuclear Fuel. Until such payment to the DOE is made, the outstanding liability
will continue to accrue interest at the 3-month Treasury bill yield rate. In addition, as a result of consolidating CYAPC, NU has
consolidated $179.4 million in additional spent nuclear fuel obligations, including interest, as of December 31, 2013. Fees due to the
DOE for the disposal of CL&P's and WMECO's Prior Period Spent Nuclear Fuel and CYAPC's spent nuclear fuel obligation include
accumulated interest costs of $350.3 million and $350 million ($177.9 million and $177.8 million for CL&P and $41.7 million and $41.7
million for WMECO) as of December 31, 2013 and 2012, respectively.
WMECO and CYAPC maintain trusts to fund amounts due to the DOE for the disposal of spent nuclear fuel. For further information on
these trusts, see Note 6, "Marketable Securities," to the financial statements.