Eversource 2013 Annual Report Download - page 49

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redeemed at par $125 million of 1.25 percent Series B 2011 PCRBs, which were subject to mandatory tender for purchase, using short-
term debt.
NSTAR Electric issued $200 million of three-year floating rate debentures on May 17, 2013, due to mature in 2016. The proceeds, net
of issuance costs, were used to pay short-term borrowings and for general corporate purposes.
PSNH redeemed at par approximately $109 million of the 5.45 percent 2001 Series C PCRBs on May 1, 2013, which were due to
mature in 2021, using short-term debt. On November 14, 2013, PSNH issued $250 million of 3.50 percent Series S First Mortgage
Bonds, due to mature in 2023. On December 23, 2013, PSNH redeemed approximately $89 million of the 4.75 percent Series B
PCRBs, which were due to mature in 2021, using a portion of the proceeds from the Series S First Mortgage Bonds. The remaining
Series S First Mortgage Bond proceeds were used to pay short-term borrowings.
WMECO repaid at maturity $55 million of 5 percent Series A Senior Notes on September 1, 2013, using short-term debt. On
November 15, 2013, WMECO issued $80 million of 3.88 percent Series G Senior Notes, due to mature in 2023. The proceeds, net of
issuance costs, were used to pay short-term borrowings and for other working capital purposes.
NU parent issued $750 million of Senior Notes on May 13, 2013, consisting of $300 million of 1.45 percent Series E Senior Notes, due
to mature in 2018, and $450 million of 2.80 percent Series F Senior Notes, due to mature in 2023. The proceeds, net of issuance
costs, were used to repay the NU parent $250 million 5.65 percent Series C Senior Notes that matured on June 1, 2013 and the NU
parent $300 million floating rate Series D Senior Notes that matured on September 20, 2013. The remaining net proceeds were used
to repay commercial paper program borrowings and for working capital purposes.
Yankee Gas issued $100 million of 4.82 percent Series L First Mortgage Bonds on January 2, 2014, due to mature in 2044. The
proceeds, net of issuance costs, were used to repay the $75 million 4.80 percent Series G First Mortgage Bonds that matured on
January 1, 2014 and to pay $25 million in short-term borrowings.
On July 31, 2013, the FERC granted authorization allowing CL&P and WMECO to incur total short-term borrowings up to a maximum of
$600 million and $300 million, respectively, effective January 1, 2014 through December 31, 2015. On May 16, 2012, the FERC
granted authorization to allow NSTAR Electric to issue total short-term debt securities in an aggregate principal amount not to exceed
$655 million outstanding at any one time, effective October 23, 2012 through October 23, 2014. On December 23, 2013, the DPU
authorized NSTAR Electric to issue up to $800 million in long-term debt for the two-year period ending December 31, 2015. On
September 26, 2013, the NHPUC issued an order, effective October 8, 2013, approving PSNH's request to issue up to $315 million in
long-term debt through December 31, 2014, and to refinance approximately $89 million Series B PCRBs through its existing maturity of
May 2021.
On September 6, 2013, NU parent, CL&P, PSNH, WMECO, NSTAR Gas and Yankee Gas amended their joint five-year $1.15 billion
revolving credit facility, dated July 25, 2012, by increasing the aggregate principal amount available thereunder by $300 million to $1.45
billion, extending the expiration date from July 25, 2017 to September 6, 2018, and increasing CL&P's borrowing sub-limit from $300
million to $600 million. PSNH and WMECO each have borrowing sub-limits of $300 million. Simultaneously, effective September 6,
2013, the CL&P $300 million revolving credit facility was terminated.
On September 6, 2013, NSTAR Electric amended its five-year $450 million revolving credit facility, dated July 25, 2012, by extending
the expiration date from July 25, 2017 to September 6, 2018.
On September 6, 2013, NU parent’s $1.15 billion commercial paper program was increased by $300 million to $1.45 billion.
As of December 31, 2013, NU had approximately $1.01 billion in short-term borrowings outstanding under its commercial paper
program, leaving $435.5 million of available borrowing capacity. The weighted-average interest rate on these borrowings as of
December 31, 2013 was 0.24 percent, which is generally based on money market rates. As of December 31, 2013, NSTAR Electric
had $103.5 million in short-term borrowings outstanding under its commercial paper program, leaving $346.5 million of available
borrowing capacity. The weighted-average interest rate on these borrowings as of December 31, 2013 was 0.13 percent, which is
generally based on money market rates.
Each of NU, CL&P, NSTAR Electric, PSNH and WMECO use its available capital resources to fund its respective construction
expenditures, meet debt requirements, pay operating costs, including storm-related costs, pay dividends and fund other corporate
obligations, such as pension contributions. The current growth in NU’s transmission construction expenditures utilizes a significant
amount of cash for projects that have a long-term return on investment and recovery period. In addition, NU’s Regulated companies
recover its electric and natural gas distribution construction expenditures as the related project costs are depreciated over the life of the
assets. This impacts the timing of the revenue stream designed to fully recover the total investment plus a return on the equity portion
of the cost and related financing costs. These factors have resulted in current liabilities exceeding current assets by approximately $1.2
billion, $398 million and $339 million at NU, CL&P and NSTAR Electric, respectively, as of December 31, 2013.
As of December 31, 2013, $501.7 million of NU's obligations classified as current liabilities relates to long-term debt that will be paid in
the next 12 months, consisting of $150 million for CL&P, $301.7 million for NSTAR Electric and $50 million for PSNH. In addition, $31.7
million relates to the amortization of the purchase accounting fair value adjustment that will be amortized in the next twelve months.
NU, with its strong credit ratings, has several options available in the financial markets to repay or refinance these maturities with the
issuance of new long-term debt. NU, CL&P, NSTAR Electric, PSNH and WMECO will reduce their short-term borrowings with cash