Eversource 2013 Annual Report Download - page 55

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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
DPU Storm Penalties: Under Massachusetts law and regulation, the DPU has established standards of performance for emergency
preparation and restoration of service for electric companies, including required annual ERP filings with the DPU for review and
approval. As a remedy to violations of those standards, the DPU is authorized to levy a penalty not to exceed $250,000 for each
violation for each day that the violation persists up to a maximum penalty of $20 million for any related series of violations. In
December 2012, in separate orders issued by the DPU, NSTAR Electric and WMECO each received penalties related to the electric
utilities’ responses to Tropical Storm Irene and the October 2011 snowstorm. The DPU ordered penalties of $4.1 million and $2 million
for NSTAR Electric and WMECO, respectively, which were refunded to their customers. In December 2012, NSTAR Electric and
WMECO each filed appeals with the SJC arguing the DPU penalties should be vacated. NSTAR Electric and WMECO filed initial briefs
on November 5, 2013. Oral arguments are scheduled for March 2014.
Emergency Response Plans: Under Connecticut law and regulation, the PURA has established performance standards that electric
and natural gas companies incorporated into their ERPs and operations in 2013. CL&P and Yankee Gas will be subject to penalties
levied by PURA of up to 2.5 percent of annual distribution revenues for failure to meet performance standards. In 2013, CL&P and
Yankee Gas met the established performance standards.
Connecticut:
CL&P Standard Service and Last Resort Service Rates: CL&P's residential and small commercial customers who do not choose
competitive suppliers are served under SS rates, and large commercial and industrial customers who do not choose competitive
suppliers are served under LRS rates. Effective January 1, 2014, the PURA approved an increase to CL&P’s energy supply portion of
the total average SS rate from 7.638 cents per kWh to 9.152 cents per kWh and the energy supply portion of the total average LRS rate
from 6.698 cents per kWh to 10.762 cents per kWh. These changes were due primarily to the market conditions for the procurement of
energy. The SS and LRS rates reflect CL&P’s costs to procure energy for its customers. Adjustments to these rates do not impact
earnings as CL&P is fully recovering the costs of its SS and LRS services from customers.
CL&P CTA and SBC Reconciliation: On January 22, 2014, PURA approved CL&P’s 2012 CTA and SBC reconciliation as filed on
April 1, 2013, which compared CTA and SBC billed revenues to revenue requirements, as required by PURA. The 2012 CTA was over
recovered by $21.3 million, resulting in a cumulative net under recovered balance of $8.9 million as of December 31, 2012. The 2012
SBC was over recovered by $19.4 million, resulting in a cumulative net under recovery of $19.7 million as of December 31, 2012.
CL&P FMCC Filing: Semi-annually, CL&P files with PURA its FMCC filing, which reconciles actual FMCC revenues and charges and
GSC revenues and expenses, for the six-month period under consideration. The filing identifies a total net over or under recovery,
which includes the remaining uncollected or non-refunded portions from previous filings. On August 1, 2013, CL&P filed with PURA its
semi-annual FMCC filing for the period January 1, 2013 through June 30, 2013. This filing also included the June 30, 2013 through
December 31, 2013 projected amounts for informational purposes only. The filing identified a total net under recovery of $2.7 million for
the period. On February 19, 2014, PURA approved CL&P’s FMCC filing.
CL&P Conservation Adjustment Mechanism: In 2012, CL&P filed an application with PURA for the establishment of a CAM. The CAM
would collect the costs associated with expanded energy efficiency programs beyond those already collected through the statutory
charge and the revenues lost because of the expanded energy efficiency programs. On September 11, 2013, DEEP approved CL&P’s
expanded 2014 conservation spending budget of $144.6 million. The PURA approved a CAM effective January 1, 2014 subject to a
future review of its revenue and expense reconciliation filing to be submitted by CL&P.
CL&P Long-Term Wind Contracts: On September 19, 2013, CL&P, along with another Connecticut utility, signed long-term
commitments, as required by regulation, to purchase approximately 250 MW of wind power from a Maine wind farm and 20 MW of solar
power from sites in Connecticut, at a combined average price of less than 8 cents per kWh. On October 23, 2013, PURA issued a final
decision accepting the contracts. The projects are expected to be operational by the end of 2016. For further information, see
"Legislative and Policy Matters - Connecticut" in this Management’s Discussion and Analysis.
CL&P System Resiliency Plan: On January 16, 2013, PURA approved the $300 million plan CL&P filed to improve the resiliency of its
electric distribution system. For further information, see "Business Development and Capital Expenditures - Distribution Business -
CL&P System Resiliency Plan" in this Management’s Discussion and Analysis.