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56
Energy Efficiency Programs increased in 2012, as compared to 2011, due primarily to the addition of NSTAR's operations ($169.4
million). In addition, there was an increase in expenses at WMECO attributable to an increase in spending in accordance with DPU
approved energy efficiency programs. The increase in energy efficiency spending is recovered in rates and therefore does not impact
earnings.
Taxes Other Than Income Taxes increased in 2012, as compared to 2011, due primarily to the addition of NSTAR's operations ($96.4
million). In addition, there was an increase in property taxes as a result of an increase in Property, Plant and Equipment related to our
regulated capital programs and an increase in the property tax rates.
Interest Expense
For the Years Ended December 31,
Increase/
(Millions of Dollars)
2012 (a)
2011
(Decrease)
Percent
Interest on Long-Term Debt
$
316.9
$
231.6
$
85.3
36.8
%
Interest on RRBs
6.2
8.6
(2.4)
(27.9)
Other Interest
6.8
10.2
(3.4)
(33.3)
$
329.9
$
250.4
$
79.5
31.7
%
(a) The 2012 results include the operations of NSTAR beginning April 10, 2012.
Interest Expense increased in 2012, as compared to 2011, due primarily to the addition of NSTAR's operations ($70.6 million). The
additional increase in Interest on Long-Term Debt was a result of the $260 million in new long-term debt issuances in September 2011
and higher short-term borrowings resulting in higher interest expense.
Other Income, Net decreased in 2012, as compared to 2011, due primarily to lower AFUDC related to equity funds at PSNH as the
Clean Air Project was placed into service in September 2011, partially offset by net gains on the NU supplemental benefit trust in 2012,
compared to net losses in 2011.
Income Tax Expense
For the Years Ended December 31,
(Millions of Dollars)
2012 (a)
2011
Increase
Percent
Income Tax Expense
$
274.9
$
171.0
$
103.9
60.8
%
(a) The 2012 results include the operations of NSTAR beginning April 10, 2012.
Income Tax Expense increased in 2012, as compared to 2011, due primarily to higher pre-tax earnings ($141.4 million), less favorable
adjustments for prior year’s taxes ($21.3 million) and lower items that directly impact our tax return as a result of regulatory actions
(flow-through items) ($3.4 million), partially offset by Connecticut and Massachusetts settlement agreement impacts ($41 million) and
merger impacts ($19.9 million).
Results of Operations for each of CL&P, NSTAR Electric, PSNH and WMECO have been omitted from this report but are set
forth in the Annual Report on Form 10-K for 2013 filed with the SEC on a combined basis with NU on February 25, 2014. Such
report is also available at the Investors section at www.nu.com.