Eversource 2013 Annual Report Download - page 64

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RESULTS OF OPERATIONS – NORTHEAST UTILITIES AND SUBSIDIARIES
The following provides the amounts and variances in operating revenues and expense line items for the consolidated statements of
income for NU included in this Annual Report on Form 10-K for the years ended December 31, 2013, 2012, and 2011. The year ended
December 31, 2012 amounts include the operations of NSTAR beginning April 10, 2012:
Comparison of 2013 to 2012:
Operating Revenues and Expenses
For the Years Ended December 31,
(Millions of Dollars)
2013
2012
(a)
Increase/
Percent
(Decrease)
Operating Revenues
$
7,301.2
$
6,273.8
$
1,027.4
16.4
%
Operating Expenses:
Purchased Power, Fuel and Transmission
2,483.0
2,084.4
398.6
19.1
Operations and Maintenance
1,515.0
1,583.1
(68.1)
(4.3)
Depreciation
610.8
519.0
91.8
17.7
Amortization of Regulatory Assets, Net
206.3
79.8
126.5
(b)
Amortization of Rate Reduction Bonds
42.6
142.0
(99.4)
(70.0)
Energy Efficiency Programs
401.9
313.1
88.8
28.4
Taxes Other Than Income Taxes
512.2
434.2
78.0
18.0
Total Operating Expenses
5,771.8
5,155.6
616.2
12.0
Operating Income
$
1,529.4
$
1,118.2
$
411.2
36.8
%
(a)
The 2012 results include the operations of NSTAR beginning April 10, 2012.
(b)
Percent greater than 100 percent not shown as it is not meaningful.
Operating Revenues
For the Years Ended December 31,
(Millions of Dollars)
2013
2012
(a)
Increase/
(Decrease)
Percent
Electric Distribution
$
5,362.3
$
4,716.5
$
645.8
13.7
%
Natural Gas Distribution
855.8
572.9
282.9
49.4
Total Distribution
6,218.1
5,289.4
928.7
17.6
Transmission
978.7
861.5
117.2
13.6
Total Regulated Companies
7,196.8
6,150.9
1,045.9
17.0
Other and Eliminations
104.4
122.9
(18.5)
(15.1)
Total Operating Revenues
$
7,301.2
$
6,273.8
$
1,027.4
16.4
%
(a) The 2012 results include the operations of NSTAR beginning April 10, 2012.
A summary of our retail electric sales and firm natural gas sales were as follows:
For the Years Ended December 31,
2013
2012 (a)
Increase
Percent
Retail Electric Sales in GWh
55,331
54,808
523
1.0
%
Firm Natural Gas Sales in Million Cubic Feet
98,258
87,527
10,731
12.3
%
(a) Results include retail electric sales of NSTAR Electric and the firm natural gas sales of NSTAR Gas from January 1, 2012 through
December 31, 2012 for comparative purposes only.
Our Operating Revenues increased in 2013, as compared to 2012, due primarily to the addition of NSTAR's operations. During the first
quarter of 2013, the former operating subsidiaries of NSTAR contributed approximately $800 million of operating revenues. Absent the
first quarter 2013 NSTAR operating revenues, our Operating Revenues increased approximately $227 million due primarily to:
• A $62.5 million increase in transmission revenues, net of applicable eliminations, as a result of the recovery of higher
transmission expenses and continuing investments in our transmission infrastructure. The increase was partially offset by the
establishment of a reserve related to the FERC ALJ initial decision in the third quarter of 2013.
• A $34.3 million increase in base electric distribution revenues, net of applicable eliminations, reflecting an increase of
approximately 1 percent in retail electric sales. The increase in sales volumes was driven primarily by the colder winter
weather experienced throughout our service territories in early and late 2013. In addition, the increase in revenues resulted
from the NHPUC-approved distribution rate increases at PSNH effective July 1, 2012 and July 1, 2013 as a result of the 2010
distribution rate case settlement. These positive impacts on revenue were partially offset by the impact of our company-
sponsored energy efficiency programs.