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10
CL&P 2013 Storm Filing: In March 2013, CL&P filed a request with PURA for approval to recover storm restoration costs associated
with five major storms, all of which occurred in 2011 and 2012. CL&P's deferred storm restoration costs associated with these major
storms totaled $462 million. Of that amount, approximately $414 million is subject to recovery in rates after giving effect to CL&P’s
agreement to forego the recovery of $40 million of previously deferred storm restoration costs as well as an existing storm reserve fund
balance of approximately $8 million. During the second half of 2013, the PURA proceeded with the storm recovery review issuing
discovery, holding hearings and ultimately on February 3, 2014, issuing a draft decision on the level of storm costs recovery.
In its draft decision, the PURA approved recovery of $365 million of deferred storm restoration costs and ordered CL&P to capitalize
approximately $18 million of the deferred storm restoration costs as utility plant, which will be included in depreciation expense in future
rate proceedings. PURA will allow recovery of the $365 million with carrying charges in CL&P’s distribution rates over a six year period
beginning December 1, 2014. The remaining costs were either disallowed or are probable of recovery in future rates and did not have
a material impact on CL&P’s financial position, results of operations or cash flows. The final decision is expected from PURA in the first
quarter of 2014.
NSTAR Electric 2013 Storm Filing: On December 30, 2013, the DPU approved NSTAR Electric’s request to recover storm restoration
costs, plus carrying costs, related to Tropical Storm Irene and the October 2011 snowstorm. The DPU approved recovery of $34.2
million of the $38 million requested costs. NSTAR Electric will recover these costs, plus carrying costs, in its distribution rates over a
five-year period that commenced on January 1, 2014.
PSNH Major Storm Cost Reserve: On June 27, 2013, the NHPUC approved an increase to PSNH’s distribution rates effective July 1,
2013 that included a $5 million increase to the current level of funding for the major storm cost reserve.
WMECO SRRCA Mechanism: WMECO has an established Storm Reserve Recovery Cost Adjustment (SRRCA) mechanism to
recover the restoration costs associated with its major storms. Effective January 1, 2012, WMECO began recovering the restoration
costs of Tropical Storm Irene and other storms that took place prior to August 2011. On August 30, 2013, WMECO submitted its 2013
Annual SRRCA filing to begin recovering the restoration costs associated with the October 2011 snowstorm and Storm Sandy. On
December 20, 2013, the DPU approved the 2013 Annual SRRCA filing for effect on January 1, 2014, subject to further review and
reconciliation.
2013, 2012 and 2011 Major Storm Deferrals: As of December 31, 2013, the storm restoration costs deferred for recovery from
customers for major storms that occurred during 2013, 2012 and 2011 at CL&P, NSTAR Electric, PSNH, and WMECO were as follows:
(Millions of Dollars)
2012
and 2011
2013
Total
CL&P
$ 365.0
$ 28.8
$ 393.8
NSTAR Electric
61.3
63.6
124.9
PSNH
33.7
5.3
39.0
WMECO
35.3
-
35.3
Total
$ 495.3
$ 97.7
$ 593.0
ELECTRIC TRANSMISSION SEGMENT
General
Each of CL&P, NSTAR Electric, PSNH and WMECO owns and maintains transmission facilities that are part of an interstate power
transmission grid over which electricity is transmitted throughout New England. Each of CL&P, NSTAR Electric, PSNH and WMECO,
and most other New England utilities, are parties to a series of agreements that provide for coordinated planning and operation of the
region's transmission facilities and the rules by which they acquire transmission services. Under these arrangements, ISO-NE, a non-
profit corporation whose board of directors and staff are independent of all market participants, serves as the regional transmission
organization of the New England transmission system.
Wholesale Transmission Revenues
A summary of NU’s wholesale transmission revenues is as follows:
(Millions of Dollars)
2013
CL&P
$
506.1
NSTAR Electric
253.6
PSNH
102.5
WMECO
116.5
Total Wholesale Transmission Revenues
$
978.7
Wholesale Transmission Rates
Wholesale transmission revenues are recovered through FERC approved formula rates. Transmission revenues are collected from
New England customers, the majority of which are distribution customers of CL&P, NSTAR Electric, PSNH and WMECO. The