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33
Legislative, Regulatory, Policy and Other Items:
• In 2013, CL&P and NSTAR Electric filed a request with the PURA and DPU, respectively, seeking approval to recover storm
restoration costs. On December 30, 2013, the DPU approved recovery of NSTAR Electric’s $34.2 million in storm restoration
costs. On February 3, 2014, the PURA issued a draft decision, approving recovery of CL&P’s $365 million in storm restoration
costs.
• In 2013, Connecticut enacted into law two significant energy bills. The first law implemented a number of the
recommendations proposed in the Connecticut comprehensive energy strategy (CES), including the expansion of natural gas
service, and required PURA to implement decoupling for each of Connecticut’s electric and natural gas utilities in their next
respective rate cases. The second law allows DEEP to conduct a process that will ultimately help Connecticut meet its
Renewable Portfolio Standard by authorizing the state’s electric distribution companies to enter into long-term power purchase
agreements.
• On November 22, 2013, the PURA issued a final decision approving a comprehensive joint natural gas infrastructure
expansion plan (expansion plan), consistent with the goals of the CES, that was filed in June 2013 by Yankee Gas and other
Connecticut natural gas distribution companies. The expansion plan described how Yankee Gas expects to add
approximately 82,000 new natural gas heating customers over the next 10 years.
• On July 1, 2013, NPT filed an amendment to the Department of Energy (DOE) Presidential Permit Application for a proposed
improved route in the northernmost section of the project area. The DOE completed its public scoping meeting process and
the majority of its seasonal field work and environmental data collection. On December 11, 2013, NPT filed an amendment to
the Transmission Services Agreement (TSA) with FERC, which was accepted on January 13, 2014. On December 31, 2013,
NPT received ISO-NE approval under Section I.3.9 of the ISO tariff.
• On August 6, 2013, the FERC ALJ issued an initial decision regarding the September 2011 joint complaint filed with the FERC
by various New England parties concerning the base ROE earned by New England transmission owners (NETOs). The initial
decision found that the current base ROE is not reasonable, but leaves policy considerations and additional adjustments to the
FERC, and determined that a separate base ROE of 10.6 percent and 9.7 percent should be set for the refund period
(October 1, 2011 through December 31, 2012) and the prospective period (beginning when FERC issues its final decision),
respectively. The FERC may adjust the prospective period base ROE in its final decision, expected in 2014, to reflect
movement in the capital markets from when the case was filed in April 2013. As a result, in 2013, we recorded a reserve and
recognized an after-tax charge of $14.3 million for the potential financial impact from the FERC ALJ's initial decision.
• On November 20, 2013, GSRP, the first, largest and most complicated project within the NEEWS family of projects was fully
energized. The project was fully energized ahead of schedule with a final cost of $676 million, $42 million under the $718
million estimated cost.
Liquidity:
• Cash and cash equivalents totaled $43.4 million as of December 31, 2013, compared with $45.7 million as of December 31,
2012, while investments in property, plant and equipment totaled $1.5 billion in both 2013 and 2012.
• Cash flows provided by operating activities in 2013 totaled $1.58 billion, compared with operating cash flows of $1.05 billion in
2012 (amounts are net of RRB payments). The improved cash flows were due primarily to the addition of NSTAR, a decrease
in storm restoration costs, and the absence in 2013 of customer bill credits and merger-related costs paid in 2012, partially
offset by an increase in Pension Plan cash contributions.
• In 2013, we issued $1.68 billion of new long-term debt consisting of $750 million by NU parent, $400 million by CL&P, $200
million by NSTAR Electric, $250 million by PSNH, and $80 million by WMECO. These new issuances were used primarily to
repay approximately $928 million of existing long-term debt and PCRBs. On January 2, 2014, Yankee Gas issued $100
million of new long-term debt. As of December 31, 2013, approximately $502 million of NU's current liabilities relate to long-
term debt that will be paid in the next 12 months.
• On February 4, 2014, our Board of Trustees approved a common dividend payment of $0.3925 per share, payable on
March 31, 2014 to shareholders of record as of March 3, 2014. The dividend represented an increase of 6.8 percent over the
quarterly dividend paid in December 2013.