Eversource 2013 Annual Report Download - page 30

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PSNH customers. Current legislation provides a portion of the RGGI auction proceeds in excess of $1 per allowance will be refunded
to customers.
Because none of NU’s other subsidiaries, CL&P, NSTAR Electric or WMECO, currently owns any generating assets (other than two
solar photovoltaic facilities owned by WMECO that do not emit CO2), none of them is required to acquire CO2 allowances. However,
the CO2 allowance costs borne by the generating facilities that are utilized by wholesale suppliers to satisfy energy supply requirements
to CL&P, NSTAR Electric and WMECO will likely be included in the overall wholesale rates charged, which costs are then recoverable
from customers.
FERC Hydroelectric Project Licensing
Federal Power Act licenses may be issued for hydroelectric projects for terms of 30 to 50 years as determined by the FERC. Upon the
expiration of an existing license, (i) the FERC may issue a new license to the existing licensee, (ii) the United States may take over the
project, or (iii) the FERC may issue a new license to a new licensee, upon payment to the existing licensee of the lesser of the fair value
or the net investment in the project, plus severance damages, less certain amounts earned by the licensee in excess of a reasonable
rate of return.
PSNH owns nine hydroelectric generating stations with a current claimed capability representing winter rates of approximately 71 MW,
eight of which are licensed by the FERC under long-term licenses that expire on varying dates from 2017 through 2047. PSNH and its
hydroelectric projects are subject to conditions set forth in such licenses, the Federal Power Act and related FERC regulations,
including provisions related to the condemnation of a project upon payment of just compensation, amortization of project investment
from excess project earnings, possible takeover of a project after expiration of its license upon payment of net investment and
severance damages and other matters. PSNH is currently involved with the early stages of relicensing at its Eastman Falls Hydro
Station, which is comprised of two units, totaling 6.5 MW.
EMPLOYEES
As of December 31, 2013, NU employed a total of 8,697 employees, excluding temporary employees, of which 1,566 were employed
by CL&P, 1,025 were employed by PSNH, 308 were employed by WMECO, and 2,194 were employed by NSTAR Electric.
Approximately 48 percent of our employees are members of the International Brotherhood of Electrical Workers, the Utility Workers
Union of America or The United Steelworkers, and are covered by 13 collective bargaining agreements.
INTERNET INFORMATION
Our website address is www.nu.com. We make available through our website a link to the SEC's EDGAR website
(http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site NU's, CL&P's, NSTAR Electric’s, PSNH's and WMECO's
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports
may be reviewed. Printed copies of these reports may be obtained free of charge by writing to our Investor Relations Department at
Northeast Utilities, 107 Selden Street, Berlin, CT 06037.
Item 1A. Risk Factors
In addition to the matters set forth under "Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995" included
immediately prior to Item 1, Business, above, we are subject to a variety of significant risks. Our susceptibility to certain risks, including
those discussed in detail below, could exacerbate other risks. These risk factors should be considered carefully in evaluating our risk
profile.
Cyber breaches, acts of war or terrorism, or grid disturbances could negatively impact our business.
Cyber intrusions targeting our information systems could impair our ability to properly manage our data, networks, systems and
programs, adversely affect our business operations or lead to release of confidential customer information or critical operating
information. While we have implemented measures designed to prevent cyber-attacks and mitigate their effects should they occur, our
systems are vulnerable to unauthorized access and cyber intrusions. We cannot discount the possibility that a security breach may
occur or quantify the potential impact of such an event.
Acts of war or terrorism could target our generation, transmission and distribution facilities or our data management systems. Such
actions could impair our ability to manage these facilities or operate our system effectively, resulting in loss of service to customers.
Because our generation and transmission facilities are part of an interconnected regional grid, we face the risk of blackout due to a
disruption on a neighboring interconnected system.
Any such cyber breaches, acts of war or terrorism, or grid disturbances could result in a significant decrease in revenues, significant
expense to repair system damage or security breaches, and liability claims, which could have a material adverse impact on our financial
position, results of operations or cash flows.