Eversource 2013 Annual Report Download - page 65

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• A $28.8 million increase in firm natural gas distribution revenues. This increase was driven by the colder winter weather in
early and late 2013, residential customer growth, an increase in natural gas conversions, the migration of interruptible
customers switching to firm service rates and the addition of gas-fired distributed generation.
• The remaining increase was due primarily to higher revenues from our tracker mechanisms related to the recovery of energy
supply, retail transmission and company-sponsored energy efficiency programs. Revenues related to cost recovery
mechanisms vary from period to period based on the timing of collections of the costs incurred. These revenues had no
material impact on earnings.
Purchased Power, Fuel and Transmission increased in 2013, as compared to 2012, due primarily to the following:
2013 Increase/(Decrease)
(Millions of Dollars)
Compared to 2012
The addition of NSTAR's operations
$
321.4
Transmission segment costs
70.8
Firm natural gas sales related costs
42.0
Partially offset by:
Electric distribution segment fuel and energy supply costs
(13.9)
CfDs and capacity contracts
(12.0)
All other items
(9.7)
$
398.6
Operations and Maintenance decreased in 2013, as compared to 2012, due primarily to the following:
(Millions of Dollars)
Increase/(Decrease)
The addition of NSTAR’s operations
$
123.6
Partially offset by:
Integration, merger and settlement agreement costs
(150.3)
NU’s unregulated contracting business costs
(17.4)
General and administrative costs
(12.9)
Transmission segment costs
(5.2)
Natural gas segment costs
10.5
Electric distribution segment costs
1.3
All other items
(17.7)
$
(68.1)
Depreciation increased in 2013, as compared to 2012, due primarily to the addition of NSTAR ($54.2 million) and the consolidation of
CYAPC and YAEC ($13.7 million). Excluding the impact of NSTAR and the consolidation of CYAPC and YAEC, depreciation increased
due primarily to higher utility plant balances resulting from completed construction projects placed into service.
Amortization of Regulatory Assets, Net increased in 2013, as compared to 2012, due primarily to the following:
(Millions of Dollars)
Increase/(Decrease)
The addition of NSTAR’s operations
$
45.8
Recovery of transition costs at NSTAR Electric
91.9
Amortization related to CL&P’s SBC and CTA
(6.8)
Other
(4.4)
$
126.5
Amortization of Rate Reduction Bonds decreased in 2013, as compared to 2012, due primarily to the maturity of NSTAR Electric's,
PSNH's, and WMECO's RRBs in 2013, partially offset by the addition of NSTAR Electric’s amortization ($15.1 million).
Energy Efficiency Programs increased in 2013, as compared to 2012, due primarily to the addition of NSTAR's operations ($68.6
million), as well as an increase in energy efficiency costs in accordance with the three-year program guidelines established by the DPU
at NSTAR Electric and WMECO. All costs are fully recovered through DPU-approved tracking mechanisms and therefore do not
impact earnings.
Taxes Other Than Income Taxes increased in 2013, as compared to 2012, due primarily to the addition of NSTAR's operations ($37.8
million). In addition, there was an increase in property taxes ($36.6 million) as a result of an increase in Property, Plant and Equipment
and an increase in the property tax rates, and an increase in the Connecticut gross earnings tax ($9.1 million) attributable to an
increase in gross earnings.
Interest Expense increased $8.8 million in 2013, as compared to 2012, due primarily to the addition of NSTAR’s operations ($22
million) and lower interest income on deferred transition costs ($10.6 million), partially offset by a decrease in Other Interest due
primarily to the favorable impact from the resolution of a state income tax audit in the first quarter of 2013, lower interest on short-term
debt ($8.8 million) and lower interest on RRBs ($6.1 million).