Eversource 2013 Annual Report Download - page 24

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The Greater Hartford Central Connecticut Study (GHCC), which includes the reassessment of the Central Connecticut Reliability
Project, continues to make progress. The final need results, which were presented to the ISO-NE Planning Advisory Committee in
November 2013, showed existing and worsening severe regional and local thermal overloads and voltage violations within and across
each of the four study areas. ISO-NE is expected to confirm the preferred transmission solutions in the first half of 2014, which are
likely to include many 115 kV upgrades. We continue to expect that the specific future projects being identified to address these
reliability concerns will cost approximately $300 million and that the project will be placed in service in 2017.
Included as part of NEEWS are associated reliability related projects, $90.8 million of which have been placed in service. As of
December 31, 2013, the remaining construction on the associated reliability related projects totaled $2.8 million, which is scheduled to
be completed by mid-2014.
Through December 31, 2013, CL&P and WMECO capitalized $252.8 million and $567 million, respectively, in costs associated with
NEEWS, of which $40.8 million and $48.9 million, respectively, were capitalized in 2013.
Cape Cod Reliability Projects: Transmission projects serving Cape Cod in the Southeastern Massachusetts (SEMA) reliability region
consist of an expansion and upgrade of NSTAR Electric's existing transmission infrastructure including construction of a new 345 kV
transmission line that crosses the Cape Cod Canal and associated 115 kV upgrades in the center of Cape Cod (Lower SEMA Project)
and related 115 kV projects (Mid-Cape Project). The Lower SEMA Project line work was completed and placed into service in 2013.
The Mid-Cape Project is scheduled to be completed in 2017. The aggregate estimated construction cost for the Cape Cod projects is
expected to be approximately $150 million. Through December 31, 2013, NSTAR Electric has invested $96 million in costs associated
with the Cape Cod Reliability Projects, of which $61 million was capitalized in 2013.
Northern Pass: Northern Pass is NPT's planned HVDC transmission line from the Québec-New Hampshire border to Franklin, New
Hampshire and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire. Northern
Pass will interconnect at the Québec-New Hampshire border with a planned HQ HVDC transmission line. The $1.4 billion project is
subject to comprehensive federal and state public permitting processes and is expected to be operational by mid-2017. On July 1,
2013, NPT filed an amendment to the DOE Presidential Permit Application for a proposed improved route in the northernmost section
of the project area. As of December 31, 2013, the DOE had completed its public scoping meeting process and the majority of its
seasonal field work and environmental data collection. NPT expects to file its state permit application in the fourth quarter of 2014 after
the DOE’s draft Environmental Impact Statement (EIS) is received.
NPT filed an amendment to the Transmission Services Agreement (TSA) with FERC on December 11, 2013, which was accepted by
the FERC on January 13, 2014. The TSA amendment that went into effect on February 14, 2014 extended certain deadlines to provide
project flexibility and eliminated a penalty payment for termination of the project in the future.
On December 31, 2013, NPT received ISO-NE approval under Section I.3.9 of the ISO tariff. By approving the project’s Section I.3.9
application, ISO-NE determined that Northern Pass can reliably interconnect with the New England grid with no significant, adverse
effect on the reliability or operating characteristics of the regional energy grid and its participants.
Greater Boston Reliability and Boston Network Improvements: As a result of continued analysis of the transmission needs to enhance
system reliability and improve capacity in eastern Massachusetts, NSTAR Electric expects to implement a series of new transmission
initiatives over the next five years. We expect projected costs to be approximately $440 million on these new initiatives.
Transmission Rate Base
Under our FERC-approved tariff, transmission projects generally enter rate base after they are placed in commercial operation. At the
end of 2013, our estimated transmission rate base was approximately $4.4 billion, including approximately $2.2 billion at CL&P, $1.1
billion at NSTAR Electric, $468 million at PSNH, and $597 million at WMECO.
NATURAL GAS DISTRIBUTION SEGMENT
The following table shows the sources of the 2013 natural gas franchise retail revenues of NSTAR Gas and Yankee Gas based on
categories of customers:
NSTAR Gas
Yankee Gas
(Thousands of Dollars, except percentages)
2013
% of Total
2013
% of Total
Residential
$
250,270
63
$
217,843
54
Commercial
132,730
33
129,788
32
Industrial
17,625
4
57,951
14
Total Retail Natural Gas Revenues
$
400,625
100%
$
405,582
100%